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

<DIV align="center">
<B><FONT size="2">As filed with the Securities and Exchange
Commission on July&nbsp;3, 2002</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>

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<DIV align="left">
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<P align="center">
<B>SECURITIES AND EXCHANGE COMMISSION</B>

<DIV align="center">
<B><FONT size="2">Washington, D.C. 20549</FONT></B>
</DIV>

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<P align="center">
<B><FONT size="4">Form&nbsp;S-1</FONT></B>

<DIV align="center">
<B><FONT size="2">REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933</FONT></B>
</DIV>

<P align="center">
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<P align="center">
<B><FONT size="5">Monday Ltd</FONT></B>

<DIV align="center">
<B><FONT size="5">Monday SCA</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="5">Monday Finance SA</FONT></B>
</DIV>

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

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<TR>
    <TD width="34%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="33%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <B><FONT size="2">Bermuda</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">98-0374046</FONT></B></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <B><FONT size="2">Luxembourg</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><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <B><FONT size="2">Luxembourg</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><FONT size="2">&nbsp;</FONT></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>
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<P align="center">
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<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="35%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="33%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="26%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <B><FONT size="2">Monday Ltd<BR>
    Clarendon House<BR>
    2 Church Street<BR>
    Hamilton HM 11, Bermuda<BR>
    (441)&nbsp;295-5950</FONT></B></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <B><FONT size="2">Monday SCA<BR>
    398 route d&#146;Esch<BR>
    L-1471 Luxembourg<BR>
    Luxembourg</FONT></B></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <B><FONT size="2">Monday Finance SA<BR>
    398 route d&#146;Esch<BR>
    L-1471 Luxembourg<BR>
    Luxembourg</FONT></B></TD>
</TR>

</TABLE>
</CENTER>

<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">
<HR size="1" width="26%" align="center" noshade>

<P align="center">
<B><FONT size="2">Ronald B. Hauben</FONT></B>

<DIV align="center">
<B><FONT size="2">Monday Ltd</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">11 Madison Avenue</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">New York, NY 10010</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(646) 598-2420</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>

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

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<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">Julie T. Spellman<BR>
    Cravath, Swaine &#38; Moore<BR>
    Worldwide Plaza<BR>
    825 Eighth Avenue<BR>
    New York, New York 10019<BR>
    (212) 474-1000</FONT></B></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <B><FONT size="2">Jeffrey Small<BR>
    Luciana Fato<BR>
    Davis Polk &#38; Wardwell<BR>
    450 Lexington Avenue<BR>
    New York, New York 10017<BR>
    (212) 450-4000</FONT></B></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <B><FONT size="2">Candace K. Beinecke<BR>
    Kenneth A. Lefkowitz<BR>
    Hughes Hubbard &#38; Reed LLP<BR>
    One Battery Park Plaza, 12th Floor<BR>
    New York, New York 10004<BR>
    (212) 837-6000</FONT></B></TD>
</TR>

</TABLE>
</CENTER>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">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;<FONT face="wingdings">&#111;</FONT>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">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;<FONT face="wingdings">&#111;</FONT>&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">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;<FONT face="wingdings">&#111;</FONT>&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">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 registration statement for the same
offering.&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="wingdings">&#111;</FONT>&nbsp;<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If delivery of the prospectus is expected to be
made pursuant to Rule&nbsp;434, please check the following
box.&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="47%"><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="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="25%"><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 align="center" nowrap><B><FONT size="1">Title of each class</FONT></B></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">of securities to be registered</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">aggregate offering price(1)(2)</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">registration 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">Premium Equity Participating Security Units (PEPS
    Units)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$100,000,000
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$9,200
    </FONT></TD>
</TR>

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

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Monday Finance&nbsp;SA Senior Notes due 2008(3)
    </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="5" align="left"><HR size="1" noshade></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Class A common shares, par value $0.0001 per
    share (including preferred shares purchase rights(4))(5)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$100,000,000
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="bottom">
    <FONT size="2">$9,200
    </FONT></TD>
</TR>

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

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Purchase Contracts(6)
    </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="5" align="left"><HR size="1" noshade></TD>

</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Monday&nbsp;SCA Senior Notes Guarantees(7)
    </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="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. The proposed maximum offering price
    includes amounts attributable to PEPS Units that the
    underwriters may purchase to cover over-allotments, if any.
    </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">Exclusive of accrued interest, if any.
    </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">The Monday Finance SA Senior Notes are offered as
    a component of the PEPS Units for no additional consideration.
    </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">Rights initially will trade together with
    Class&nbsp;A common shares. The value attributable to the
    rights, if any, is reflected in the market price of the
    Class&nbsp;A common shares.
    </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">Class A common shares of Monday Ltd to be issued
    to the holders of PEPS Units upon settlement of the Purchase
    Contracts, for a purchase price of $25 per unit. The actual
    number of Class&nbsp;A common shares to be issued will not be
    determined until the date of settlement of the related PEPS
    Units.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD><FONT size="2">(6)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The Purchase Contracts are offered as a component
    of the PEPS Units for no additional consideration.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD><FONT size="2">(7)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The Senior Notes Guarantees are offered as a
    component of the Monday Finance&nbsp;SA Senior Notes for no
    additional consideration.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">The registrant hereby amends this registration
statement on such date 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 Securities and Exchange Commission, acting pursuant to said
Section&nbsp;8(a), may determine.</FONT></B>

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

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

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

<TABLE width="100%" border="1" cellpadding="5"><TR><TD>
<B><FONT size="2" color="#E8112D">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 we are not
soliciting offers to buy these securities in any state where the
offer or sale is not permitted.</FONT></B><FONT size="2"> <BR>
</FONT>
</TD></TR></TABLE>

<P align="left">
<FONT size="2"> <I> <FONT color="#E8112D">PROSPECTUS (Subject to
Completion)</FONT></I>
</FONT>

<DIV align="left">
<I><FONT size="2" color="#E8112D">Issued &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2002</FONT></I>
</DIV>

<DIV align="center">
<I><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;Units</FONT></I>
</DIV>

<P align="center">
<I><FONT size="6">Monday Ltd</FONT></I>

<P align="center">
<I><FONT size="6">Monday SCA</FONT></I>

<P align="center">
<I><FONT size="6">Monday Finance SA</FONT></I>

<P align="center">
<I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% PEPS
<SUP><FONT size="2">SM</FONT></SUP><FONT size="2"> </FONT>
Units</I>

<P align="center">
<I><FONT size="2">(Premium Equity Participating Security Units
&#150; PEPS <SUP>SM</SUP> </FONT> Units)</I>

<P align="center">
<HR size="1" width="30%" align="center" noshade>

<P align="left">
<B><I><FONT size="2"> Each PEPS Unit consists of a purchase
contract issued by Monday Ltd and a $25 principal
amount &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%
senior note due 2008 issued by Monday Finance SA, an indirect
wholly-owned subsidiary of Monday SCA which is a majority-owned
subsidiary of Monday Ltd. Monday SCA has agreed to absolutely,
irrevocably and unconditionally guarantee the payment of
principal, interest, additional amounts, if any, and premium, if
any, on the senior notes.</FONT></I></B>
<P>

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

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &#149;</FONT></I></B></TD>
    <TD align="left">
    <B><I><FONT size="2">The purchase contract will obligate you to
    purchase from Monday Ltd, no later
    than &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2006, for a price of $25 in cash, the following number of Monday
    Ltd&#146;s Class&nbsp;A common shares, subject to antidilution
    adjustments:</FONT></I></B></TD>
</TR>

</TABLE>
<P>

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

<TR>
    <TD width="14%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top">
    <TD><B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#150;</FONT></I></B></TD>
    <TD align="left">
    <B><I><FONT size="2">if the average closing price of Monday
    Ltd&#146;s Class&nbsp;A common shares over the 20-trading day
    period ending on the third trading day prior
    to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2006 equals or exceeds
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares;</FONT></I></B></TD>
</TR>

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

<TR valign="top">
    <TD><B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#150;</FONT></I></B></TD>
    <TD align="left">
    <B><I><FONT size="2">if the average closing price of our
    Class&nbsp;A common shares over the same period is less than
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;but
    greater than
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, a
    number of shares having a value, based on the 20-trading day
    average closing price, equal to
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;;
    and</FONT></I></B></TD>
</TR>

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

<TR valign="top">
    <TD><B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#150;</FONT></I></B></TD>
    <TD align="left">
    <B><I><FONT size="2">if the average closing price of our
    Class&nbsp;A common shares over the same period is less than or
    equal to
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares.</FONT></I></B></TD>
</TR>

</TABLE>
<P>

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

<TR>
    <TD width="9%"></TD>
    <TD width="91%"></TD>
</TR>

<TR valign="top">
    <TD><B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;</FONT></I></B></TD>
    <TD align="left">
    <B><I><FONT size="2">Monday Finance SA will pay interest,
    initially quarterly, on the senior notes, initially at a rate
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% per
    year.</FONT></I></B></TD>
</TR>

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

<TR valign="top">
    <TD><B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;</FONT></I></B></TD>
    <TD align="left">
    <B><I><FONT size="2">The senior notes will be remarketed as
    described in this prospectus. Following a successful
    remarketing, the interest rate will be reset and interest will
    become payable semi-annually.</FONT></I></B></TD>
</TR>

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

<TR valign="top">
    <TD><B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;</FONT></I></B></TD>
    <TD align="left">
    <B><I><FONT size="2">The senior notes and related guarantee will
    be pledged as collateral for your obligation under the purchase
    contract.</FONT></I></B></TD>
</TR>

</TABLE>

<P align="center">
<HR size="1" width="30%" align="center" noshade>

<P align="left">
<B><I><FONT size="2">This offering of PEPS Units is being made
concurrently with, and is contingent upon, the initial public
offering of Monday Ltd&#146;s Class&nbsp;A common shares,
pursuant to a separate prospectus. We have applied to have our
Class&nbsp;A common shares approved for listing on the New York
Stock Exchange under the symbol &#147;MN.&#148;</FONT></I></B>

<P align="left">
<B><I><FONT size="2">We will apply to have the PEPS Units
approved for listing on the New York Stock Exchange under the
symbol
&#147;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.&#148;</FONT></I></B>

<P align="center">
<HR size="1" width="30%" align="center" noshade>

<P align="left">
<B><I><FONT size="2"> Investing in the PEPS Units involves
risks. See &#147;Risk Factors&#148; beginning on page&nbsp;29 of
this prospectus.</FONT></I></B>

<P align="center">
<HR size="1" width="30%" align="center" noshade>

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

<TR>
    <TD width="54%"><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="7%"><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="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>
</TR>

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

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

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

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Price to Public</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Commissions</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Finance&nbsp;SA</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 align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <I><FONT size="2">Per PEPS Unit(1)</FONT></I></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">$25.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</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">
    <I><FONT size="2">Total</FONT></I></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>
</TR>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="15%" align="left" noshade>
</DIV>
<P>

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

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

<TR valign="top">
    <TD><I><FONT size="2">(1)&nbsp;</FONT></I></TD>
    <TD align="left">
    <I><FONT size="2">Plus accrued interest
    from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2002, if settlement occurs after that date.</FONT></I></TD>
</TR>

</TABLE>

<P align="left">
<I><FONT size="2">Monday Ltd, Monday SCA and Monday Finance SA
have granted the underwriters the right to purchase up
to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;additional
PEPS Units to cover over-allotments.</FONT></I>

<P align="left">
<I><FONT size="2">The Securities and Exchange Commission and
state securities regulators have not approved or disapproved
these securities, or determined if this prospectus is truthful
or complete. Any representation to the contrary is a criminal
offense.</FONT></I>

<P align="left">
<I><FONT size="2">Morgan Stanley &#38; Co. Incorporated expects
to deliver the PEPS Units to purchasers
on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2002.</FONT></I>

<P align="center">
<HR size="1" width="30%" align="center" noshade>

<P align="center">
<I><FONT size="5">MORGAN STANLEY</FONT></I>

<P align="center">
<HR size="1" width="30%" align="center" noshade>

<P align="left">
<I><FONT size="5"> </FONT><FONT size="4"> GOLDMAN, SACHS &#38;
CO.</FONT></I>

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

<TR>
    <TD width="23%"></TD>
    <TD width="77%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <I><FONT size="5"> </FONT><FONT size="4"> LEHMAN
    BROTHERS</FONT></I></TD>
</TR>

</TABLE>

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

<TR>
    <TD width="47%"></TD>
    <TD width="53%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <I><FONT size="5"> </FONT><FONT size="4"> MERRILL LYNCH &#38;
    CO.</FONT></I></TD>
</TR>

</TABLE>

<P align="center">
<HR size="1" width="30%" align="center" noshade>

<P align="left">
<FONT size="2"> </FONT><I><FONT size="4"> BANC OF AMERICA
SECURITIES LLC</FONT></I>

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

<TR>
    <TD width="14%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2"> </FONT><I><FONT size="4"> CREDIT SUISSE FIRST
    BOSTON</FONT></I></TD>
</TR>

</TABLE>

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

<TR>
    <TD width="29%"></TD>
    <TD width="71%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2"> </FONT><I><FONT size="4"> SALOMON SMITH
    BARNEY</FONT></I></TD>
</TR>

</TABLE>

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

<TR>
    <TD width="44%"></TD>
    <TD width="56%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2"> </FONT><I><FONT size="4"> SG COWEN</FONT></I></TD>
</TR>

</TABLE>

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

<TR>
    <TD width="59%"></TD>
    <TD width="41%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2"> </FONT><I><FONT size="4"> UBS WARBURG</FONT></I></TD>
</TR>

</TABLE>

<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;,
2002</FONT></I>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<FONT size="2">[Artwork]
</FONT>

<DIV>&nbsp;</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>

<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">SUMMARY</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#001">THE OFFERING</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#002">THE OFFERING--EXPLANATORY DIAGRAMS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003">RISK FACTORS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#004">DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#005">USE OF PROCEEDS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#006">DIVIDEND POLICY</A></TD></TR>
<TR><TD colspan="9"><A HREF="#007">CAPITALIZATION</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#008">ACCOUNTING TREATMENT</A></TD></TR>
<TR><TD colspan="9"><A HREF="#009">DILUTION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#010">AUDITOR INDEPENDENCE RULES, THE ENRON SITUATION AND THE PROPOSED SEC NO-ACTION LETTER</A></TD></TR>
<TR><TD colspan="9"><A HREF="#011">SELECTED FINANCIAL DATA</A></TD></TR>
<TR><TD colspan="9"><A HREF="#012">MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#013">BUSINESS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#014">MANAGEMENT</A></TD></TR>
<TR><TD colspan="9"><A HREF="#015">ARRANGEMENTS WITH THE PRICEWATERHOUSECOOPERS NETWORK OF FIRMS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#016">ARRANGEMENTS WITH OUR PARTNERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#017">PRINCIPAL AND SELLING SHAREHOLDERS IN THE CONCURRENT CLASS A COMMON SHARES OFFERING</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#018">DESCRIPTION OF THE PEPS UNITS</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#019">Creating Treasury PEPS Units</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#020">Recreating PEPS Units</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#021">Current Payments</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#022">Payment of Additional Amounts</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#023">Voting and Certain Other Rights</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#024">Listing of the Securities</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#025">Miscellaneous</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#026">DESCRIPTION OF THE PURCHASE CONTRACTS</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#027">Purchase of Common Shares</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#028">Remarketing</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#029">Early Settlement</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#030">Notice to Settle with Cash</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#031">Early Settlement Upon Cash Merger</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#032">Anti-Dilution Adjustments</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#033">Termination</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#034">Pledged Securities and Pledge Agreement</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#035">Book-Entry System</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#036">CERTAIN PROVISIONS OF THE PURCHASE CONTRACTS, THE PURCHASE CONTRACT AGREEMENT AND THE PLEDGE AGREEMENT</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#037">General</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#038">Modification</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#039">No Consent to Assumption</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#040">Consolidation, Amalgamation, Merger, Sale or Conveyance</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#041">Title</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#042">Replacement of PEPS Unit or Treasury PEPS Unit Certificates</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#043">Governing Law</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#044">Information Concerning the Purchase Contract Agent</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#045">Information Concerning the Collateral Agent</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#046">DESCRIPTION OF THE SENIOR NOTES</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#047">General</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#048">Guarantees</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#049">Interest</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#050">Market Rate Reset</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#051">Optional Remarketing</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#052">Put Option upon a Failed Remarketing</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#053">Payment of Additional Amounts on the Senior Notes</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#054">Optional Redemption--Special Events</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#055">Events of Default</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#056">Consolidation, Merger and Sale of Assets</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#057">Agreement by Purchasers of Certain Tax Treatment</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#058">Book-Entry and Settlement</A></TD></TR>
<TR><TD colspan="9"><A HREF="#059">DESCRIPTION OF SHARE CAPITAL</A></TD></TR>
<TR><TD colspan="9"><A HREF="#060">SHARES ELIGIBLE FOR FUTURE SALE</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#061">UNDERWRITERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#062">LEGAL MATTERS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#063">EXPERTS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#064">WHERE YOU CAN FIND MORE INFORMATION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#065">INDEX TO COMBINED FINANCIAL STATEMENTS</A></TD></TR>
<TR><TD colspan="9"><A HREF="#066">COMBINED BALANCE SHEETS</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#067">NOTES TO THE COMBINED FINANCIAL STATEMENTS</A></TD></TR>
<TR><TD colspan="9"><A HREF="y61876exv12w1.txt">STATEMENT OF COMPUTATION OF RATIO OF EARNINGS</A></TD></TR>
<TR><TD colspan="9"><A HREF="y61876exv23w1.txt">CONSENT OF DELOITTE & TOUCHE LLP</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<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">Summary
    </FONT></DIV>
    </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">Risk Factors
    </FONT></DIV>
    </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">Disclosure Regarding Forward-Looking 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">49</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">Use of Proceeds
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">50</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">Dividend Policy
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">51</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">Capitalization
    </FONT></DIV>
    </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>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accounting Treatment
    </FONT></DIV>
    </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">Dilution
    </FONT></DIV>
    </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 align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Our Organizational Structure
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">56</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">Auditor Independence Rules, the Enron Situation
    and the Proposed SEC No-Action Letter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">61</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">Selected Financial Data
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">64</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">Unaudited Pro Forma Combined 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">66</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">Ratio of Earnings to Fixed Charges
    </FONT></DIV>
    </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</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">Management&#146;s Discussion and Analysis of
    Financial Condition and Results of Operations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">81</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">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">111</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">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">147</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">Arrangements with the PricewaterhouseCoopers
    Network of Firms
    </FONT></DIV>
    </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><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Arrangements with Our Partners
    </FONT></DIV>
    </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</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">Principal and Selling Shareholders in the
    Concurrent Class&nbsp;A Common Shares Offering
    </FONT></DIV>
    </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>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Description of the PEPS Units
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">187</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">Description of the Purchase Contracts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">192</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">Certain Provisions of the Purchase Contracts, the
    Purchase Contract Agreement and the Pledge Agreement
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">202</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">Description of the Senior 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">205</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">Description of Share 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">212</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">Shares Eligible for Future Sale
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">222</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">Material Income Tax Consequences
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">225</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">ERISA Considerations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">231</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">Underwriters
    </FONT></DIV>
    </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><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Legal Matters
    </FONT></DIV>
    </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">Experts
    </FONT></DIV>
    </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">Where You Can Find More Information
    </FONT></DIV>
    </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</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">Index to Combined 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-1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">
<HR size="1" width="30%" align="center" noshade>

<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 authorized anyone to provide you
with information different from that contained in this
prospectus. We are offering to sell, and seeking offers to buy,
our &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% Premium Equity Participating
Security Units, or PEPS Units, only in jurisdictions where
offers and sales are permitted. The information contained in
this prospectus is accurate only as of the date of this
prospectus, regardless of the time of delivery of this
prospectus or of any sale of our PEPS Units.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have not taken any action to permit a public
offering of the PEPS Units outside the United States or to
permit the possession or distribution of this prospectus outside
the United States. Persons outside the United States who come
into possession of this prospectus must inform themselves about
and observe any restrictions relating to the offering of the
PEPS Units and the distribution of this prospectus outside the
United States.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Consent under the Bermuda Exchange Control Act
1972, and its related regulations, has been obtained from the
Bermuda Monetary Authority for the issue and transfer of the
securities issued hereunder by Monday Ltd to and between
non-residents of Bermuda for exchange control purposes provided
our Class&nbsp;A common shares remain listed on an appointed
stock exchange, which includes the New York Stock Exchange.
Prior to this offering, this prospectus will be filed with the
Registrar of Companies in Bermuda in accordance with Bermuda
law. In granting such consent and in accepting this prospectus
for filing, neither the Bermuda Monetary Authority nor the
Registrar of Companies in Bermuda accepts responsibility for our
financial soundness or the correctness of any of the statements
made or opinions expressed in this prospectus.
</FONT>

<P align="center"><FONT size="2">i
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This prospectus is not prepared, and may not be
used, in connection with a public offer or an admission to
listing in Luxembourg within the meaning of the law of
December&nbsp;23, 1998 on the supervision of the markets of
financial assets and has not been submitted to the Commission de
Surveillance du Secteur Financier for approval. This prospectus
may not be distributed to the public, and the PEPS Units may not
be publicly offered for sale, purchase or barter, in Luxembourg
and no steps may be taken which constitute or result in a public
offering of the PEPS Units in Luxembourg.
</FONT>

<P align="center">
<HR size="1" width="30%" align="center" noshade>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">Until &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2002, 25&nbsp;days after the date of this prospectus, all
dealers that buy, sell or trade our PEPS Units, whether or not
participating in this offering, may be required to deliver a
prospectus. This delivery requirement is in addition to the
dealers&#146; obligation to deliver a prospectus when acting as
underwriters and with respect to their unsold allotments or
subscriptions.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This prospectus contains trademarks, service
marks and registered marks of Monday Ltd, its subsidiaries, the
PricewaterhouseCoopers network of firms and other companies, as
indicated. This prospectus also contains the service mark
&#147;PEPS Units,&#148; which is a service mark of Morgan
Stanley &#38; Co. Incorporated. All rights reserved.
</FONT>

<P align="center"><FONT size="2">ii
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "SUMMARY" -->
<DIV align="left"><A NAME="000"></A></DIV>

<P align="center">
<B>SUMMARY</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following is a summary of the most significant aspects of
this offering to potential investors. In addition to this
summary, we urge you to read the entire prospectus carefully,
especially the risks of investing in
our &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%
Premium Equity Participating Security Units, or PEPS Units,
discussed under &#147;Risk Factors,&#148; our unaudited pro
forma combined financial statements and notes to these
statements and the audited and unaudited combined financial
statements and notes to these statements of PwC Consulting, a
business unit of the PricewaterhouseCoopers firms, which we
refer to as our combined financial statements.

<P align="center">
<B>Monday Ltd</B>

<P align="left">
<B>Overview</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are one of the world&#146;s leading providers of management
consulting and technology services. We help our clients pursue
and implement key strategic, process and technology initiatives
designed to enhance their growth, profitability and
competitiveness. We believe that one of our core strengths is
our ability to integrate our strategic advice with our business
and technology skills and services to help our clients achieve
measurable results. As described more fully below, our business
is currently owned by the separately-owned partnerships and
corporations that comprise the global PricewaterhouseCoopers
network of firms. Immediately prior to the closing of this
offering and the concurrent Class&nbsp;A common shares offering,
which we refer to collectively as the concurrent offerings,
substantially all of the PricewaterhouseCoopers firms that have
a management consulting and technology services business will
transfer these businesses to us in exchange for our Class&nbsp;A
common shares or equity in one of our subsidiaries. The firms in
the PricewaterhouseCoopers network intend to fully dispose of
these Class&nbsp;A common shares and any equity in our
subsidiaries as a result of the concurrent Class&nbsp;A common
shares offering.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We operate globally with a consistent approach to serving our
clients, which allows us to execute complex engagements on a
global, regional and local basis. Our clients include many of
the world&#146;s largest and most successful organizations,
including many of the world&#146;s largest governments and
government agencies. Upon the closing of the concurrent
offerings, we expect to have approximately 33,000 employees with
offices in 52&nbsp;countries or territories. We provide our
clients with solutions to their challenges by building teams
that combine industry-specific knowledge in five industry groups
covering 20 industry sectors with expertise in our seven core
service areas, which we refer to as our solution areas. We
principally track and manage our business according to the four
geographic regions listed below, which we refer to as theatres.
Our geographic theatres, industry groups, including industry
sectors, and solution areas are set forth below.

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

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

<P align="center">
<B>Geographic Theatres</B>

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

<TR>
    <TD width="14%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="19%"><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="25%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="10%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

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

<TR>
    <TD align="center" nowrap><B><FONT size="1">Americas</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">EMEA</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Asia Pacific</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">SOACAT</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>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <I><FONT size="2">Canada<BR>
    Mexico<BR>
    United States</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <I><FONT size="2">Austria<BR>
    Belgium<BR>
    Czech Republic<BR>
    Denmark<BR>
    Finland<BR>
    France<BR>
    Germany<BR>
    Hungary<BR>
    Iceland<BR>
    India<BR>
    Republic of Ireland<BR>
    Israel<BR>
    Italy<BR>
    Kenya<BR>
    Latvia<BR>
    Lebanon</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <I><FONT size="2">Lithuania<BR>
    Netherlands<BR>
    Nigeria<BR>
    Norway<BR>
    Pakistan<BR>
    Poland<BR>
    Portugal<BR>
    Russia<BR>
    South Africa<BR>
    Spain<BR>
    Sweden<BR>
    Switzerland<BR>
    Turkey<BR>
    Ukraine<BR>
    United Arab Emirates<BR>
    United Kingdom</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <I><FONT size="2">Australia<BR>
    People&#146;s Republic of China<BR>
    Hong Kong<BR>
    Indonesia<BR>
    Japan<BR>
    Korea<BR>
    Malaysia<BR>
    New Zealand<BR>
    Philippines<BR>
    Singapore<BR>
    Taiwan<BR>
    Thailand</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <I><FONT size="2">Argentina<BR>
    Brazil<BR>
    Chile<BR>
    Colombia<BR>
    Venezuela</FONT></I></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">
<B>Industry Groups</B>

<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="15%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="18%"><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="12%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Information,</FONT></B></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Government</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Financial</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Communications</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Energy</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Products</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">and Services</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Services</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">and Entertainment</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">and Utilities</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>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></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">
    <I><FONT size="2">Pharmaceuticals<BR>
    Consumer Packaged Goods<BR>
    Technology<BR>
    Industrial Products<BR>
    Automotive<BR>
    Retail</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <I><FONT size="2">Government<BR>
    Defense<BR>
    Aviation<BR>
    Posts and&nbsp;Surface<BR>&nbsp;&nbsp;Transport</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <I><FONT size="2">Banking<BR>
    Capital Markets<BR>
    Insurance<BR>
    Investment&nbsp;Management</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <I><FONT size="2">Communications<BR>
    Entertainment and Media<BR>
    Hospitality and Leisure</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <I><FONT size="2">Oil and Gas<BR>
    Utilities<BR>
    Mining</FONT></I></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">
<B>Solution Areas</B>

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

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

<TR>
    <TD align="center" nowrap><B><FONT size="1">Develop</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Deliver</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Operate</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>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <I><FONT size="2">Strategic Change</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <I><FONT size="2">Customer Relationship Management<BR>
    Financial Management<BR>
    Human Capital<BR>
    Supply Chain and Operations<BR>
    Information Technology</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <I><FONT size="2">Application Management and Business Process
    Management</FONT></I></DIV>
    </TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We group our services into the following three broad categories:
<P>

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

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

<TR valign="top">
    <TD> &#149;</TD>
    <TD align="left">
    develop, which is developing business, technology and change
    strategies for our clients,</TD>
</TR>

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

<TR valign="top">
    <TD> &#149;</TD>
    <TD align="left">
    deliver, which is designing and implementing technology-based
    business processes and solutions, and</TD>
</TR>

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

<TR valign="top">
    <TD> &#149;</TD>
    <TD align="left">
    operate, which is our application management and business
    process management services offering which we intend to grow.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our seven solution areas in these three broad categories serve
as the means by which we group the various types of services
that we offer to our clients. For example, our customer
relationship management solution area is comprised of our
partners and employees that have specific skills and

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</FONT>

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<DIV align="left">
experiences in helping clients manage and strengthen their
customer relationships. Our solution areas also encompass the
technologies, such as software applications developed by other
companies, that we help our clients implement or operate. Our
industry groups, on the other hand, represent the way that we
manage and strengthen our client relationships by understanding
the specific needs of clients in particular industries.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Although we currently provide services to our clients in each of
the seven solution areas listed above, which are more fully
described in &#147;Business&#151;Our Services&#151;Solution
Areas,&#148; our application management and business process
management services, in terms of revenues, historically have not
been as large as the revenues from our other solution areas.
Application management and business process management services
are types of outsourcing services. Our application management
services are ongoing maintenance and development services for
software applications used by our clients, such as finance and
accounting applications. We have been providing application
management services since 1991. Our business process management
services are services provided by us to our clients in which
entire processes, such as accounting and financial reporting
processes, are administered by us rather than by our
clients&#146; staff. Historically, our business process
management services, which have been provided since 1995, have
not been operated together with the other management consulting
and technology services businesses being transferred to us as
part of our separation from the PricewaterhouseCoopers network
of firms. We intend to significantly expand the services we
offer in our operate category over time, including by expanding
our application management or business process management
services into new industries or into areas in which we believe
our core expertise in business processes may give us a
competitive advantage, such as customer relationship management
services. In order to expand our outsourcing services, we will
need, among other things, to hire new partners and client
service staff who have skills and capabilities that are
different from the skills and capabilities of most of our
current partners and client service staff.

<P align="left">
<B>Our Growth Strategy</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We are committed to becoming the global service provider of
choice for clients seeking to transform their businesses to
become more profitable and competitive. To transform a business,
we feel that we must help a client realize significant and
lasting change throughout its organization or within an
important functional area. To achieve our goal, we are pursuing
the growth initiatives described below.
<P>

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

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

<TR valign="top">
    <TD> &#149;</TD>
    <TD align="left">
    <B><I>Deliver Comprehensive Solutions to Our Clients. </I></B>We
    continuously look for opportunities to provide our clients with
    comprehensive strategies and solutions, particularly those that
    help to transform businesses and organizations. We believe our
    focus on increasing, developing and penetrating the base of
    clients where we have the greatest opportunity to provide these
    services is important to our growth.</TD>
</TR>

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

<TR valign="top">
    <TD> &#149;</TD>
    <TD align="left">
    <B><I>Pursue the Benefits of Independence. </I></B>Because of
    our affiliation with the auditing practice of the
    PricewaterhouseCoopers network of firms, audit clients of
    PricewaterhouseCoopers firms are increasingly limiting or
    denying us opportunities to provide our services for them.
    Following the closing of the concurrent Class&nbsp;A common
    shares offering, we will no longer be restricted by rules and
    regulations regarding auditor independence. Accordingly, we will
    seek to expand our services to businesses and organizations that
    are audited by PricewaterhouseCoopers firms. We</TD>
</TR>

</TABLE>

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

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

<TR valign="top">
    <TD></TD>
    <TD align="left">
    also plan to implement other business strategies that we have
    been unable to pursue due to auditor independence-related
    constraints, which are described in &#147;Auditor Independence
    Rules, the Enron Situation and the Proposed SEC No-Action
    Letter.&#148;</TD>
</TR>

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

<TR valign="top">
    <TD> &#149;</TD>
    <TD align="left">
    <B><I>Expand Our Application Management and Business Process
    Management Services. </I></B>We plan to grow our existing
    application management and business process management services,
    which is one of our solution areas described under
    &#147;Business&#151;Our Services&#151;Solution Areas.&#148; We
    believe growing these outsourcing services is important to our
    strategy of providing comprehensive services to our clients.</TD>
</TR>

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

<TR valign="top">
    <TD> &#149;</TD>
    <TD align="left">
    <B><I>Expand Our Other Service Offerings. </I></B>In addition to
    growing our outsourcing business, we also intend to grow other
    existing service offerings, including our systems integration
    services. We also plan to continue our investment in our
    solution set development program, which is described under
    &#147;Business&#151;Solution Sets.&#148;</TD>
</TR>

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

<TR valign="top">
    <TD> &#149;</TD>
    <TD align="left">
    <B><I>Improve Operational Efficiency. </I></B>We plan to reduce
    overlapping functions and business processes and to outsource
    functions that are not critical to our operations. We believe
    that we will have significant opportunities over time to improve
    operational efficiency as a result of our transition from a
    series of legally separate firms within the
    PricewaterhouseCoopers network to a single, integrated
    organization.</TD>
</TR>

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

<TR valign="top">
    <TD> &#149;</TD>
    <TD align="left">
    <B><I>Increase Our Alliance and Client Collaboration. </I></B>We
    plan to continue our collaborative efforts with clients and
    expand our alliance relationships to develop cost-effective
    solutions that may be deployed to multiple clients.</TD>
</TR>

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

<TR valign="top">
    <TD> &#149;</TD>
    <TD align="left">
    <B><I>Increase Awareness of New Brand. </I></B>We changed our
    legal name on June&nbsp;10, 2002, and will begin operating under
    our new brand name upon our separation, which we believe will
    help to reinforce the public awareness of our separation from
    the PricewaterhouseCoopers network of firms and lead to
    additional new business opportunities.</TD>
</TR>

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

<TR valign="top">
    <TD> &#149;</TD>
    <TD align="left">
    <B><I>Continue to Develop Our Client Service Staff. </I></B>Our
    most valuable assets are our client service staff and the
    building, renewing and sharing of knowledge, skills and
    experiences among them. We will continue to focus on the
    development of our client service staff and the implementation
    of a recruiting and training strategy designed to allow us to
    realize our growth objectives.</TD>
</TR>

</TABLE>

<P align="left">
<B>Selected Risk Factors</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Some of the most significant risks affecting our business or
relating to ownership of the PEPS Units and their underlying
components are described below. Please see &#147;Risk
Factors&#148; for a more detailed discussion of these risks and
for other risks.
<P>

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

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

<TR valign="top">
    <TD> &#149;</TD>
    <TD align="left">
    <B><I>Our Revenues Are Declining.</I></B> We expect our net
    revenues to decline in the last quarter of fiscal year 2002,
    which ends on June&nbsp;30, 2002, and at least the first quarter
    of fiscal year 2003 as compared to the sequentially prior
    quarter. In addition, we expect our net revenues to be lower, on
    a year over year basis, for at least a few quarters after the
    closing of this offering.</TD>
</TR>

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

<TR valign="top">
    <TD> &#149;</TD>
    <TD align="left">
    <B><I>We Are Affected by Economic Conditions.</I></B> The
    current and any future economic downturn may put competitive
    pressures on our fees and constrain our ability to obtain new
    engagements. This could cause our revenues and profitability to
    decline.</TD>
</TR>

</TABLE>

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

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<P>

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

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

<TR valign="top">
    <TD> &#149;</TD>
    <TD align="left">
    <B><I>We May Not Be Successful at Expanding Our
    Services.</I></B> To successfully expand our application
    management and business process management services, we will
    need, among other things, to hire new partners and client
    service staff who have skills and capabilities that are
    different than the skills and capabilities of most of our
    current partners and client service staff. Accordingly, we may
    not be successful in implementing our strategy to grow these
    services.</TD>
</TR>

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

<TR valign="top">
    <TD> &#149;</TD>
    <TD align="left">
    <B><I>Our Industry is Highly Competitive and is
    Changing.</I></B> Our future success, including our ability to
    grow, depends on our ability to compete effectively and to
    respond appropriately to changing competitive conditions.</TD>
</TR>

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

<TR valign="top">
    <TD> &#149;</TD>
    <TD align="left">
    <B><I>We May Lose Business as a Result of Our
    Separation.</I></B> Our separation from the
    PricewaterhouseCoopers firms may result in a loss of referrals
    from PricewaterhouseCoopers firms that historically have been
    important to our business.</TD>
</TR>

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

<TR valign="top">
    <TD> &#149;</TD>
    <TD align="left">
    <B><I>Expenses Relating to Our Separation and Restructuring Will
    Lower Our Net Income.</I></B> In connection with our separation
    and transition to a corporate structure and restructuring
    activities, we have incurred or will incur charges relating to a
    number of nonrecurring items during fiscal years 2002, 2003 and
    2004. These charges include costs relating to our separation,
    such as transfer taxes, costs associated with changing and
    marketing our new name and costs associated with creating
    separate systems and processes. We expect those costs, in the
    aggregate, to be between $200&nbsp;million and
    $300&nbsp;million. We also will recognize compensation expense
    in the first quarter of fiscal year 2003 of approximately
    $117&nbsp;million from the grant of restricted share units and
    the sale of Class&nbsp;A common shares to our partners. In
    addition, we expect to record a charge of approximately
    $40&nbsp;million in the fourth quarter of fiscal year 2002 and
    $60&nbsp;million to $100&nbsp;million in the first quarter of
    fiscal year 2003 in connection with restructuring activities.</TD>
</TR>

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

<TR valign="top">
    <TD> &#149;</TD>
    <TD align="left">
    <B><I>Our Stock Price May Decline Due to a Large Number of
    Outstanding Shares Eligible for Future Sale, Including Shares
    Held by PricewaterhouseCoopers Firms after the Concurrent
    Offerings, if&nbsp;any.</I></B> The sale of a substantial amount
    of our Class&nbsp;A common shares, or the possibility of these
    sales, may adversely affect the market price of our Class&nbsp;A
    common shares. Although the PricewaterhouseCoopers firms intend
    to dispose of all of their equity in us as a result of the
    concurrent Class&nbsp;A common shares offering, if these firms
    continue to own any of our equity after the closing of the
    concurrent Class&nbsp;A common shares offering, they will be
    required to divest our equity within five years. In addition, we
    will be issuing a significant number of our Class&nbsp;A common
    shares no later
    than &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2006 in connection with the settlement of the purchase
    contracts. These sales, or the possibility of these sales, may
    depress the market price for our Class&nbsp;A common shares.</TD>
</TR>

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

<TR valign="top">
    <TD> &#149;</TD>
    <TD align="left">
    <B><I>Holders of PEPS Units or Treasury PEPS Units Assume the
    Risk that the Market Value of Our Class&nbsp;A Common Shares May
    Decline.</I></B> Holders of PEPS Units or Treasury PEPS Units
    have an obligation pursuant to the purchase contracts to buy our
    Class&nbsp;A common shares. Assuming an offering price in the
    concurrent Class&nbsp;A common shares offering of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    if the applicable market value is less than
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    the aggregate market value of the Class&nbsp;A common shares
    issued to you on the purchase contract settlement date will be
    less than the effective price paid by you for such Class&nbsp;A
    common shares on the date of this prospectus.</TD>
</TR>

</TABLE>

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

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

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

<TR valign="top">
    <TD> &#149;</TD>
    <TD align="left">
    <B><I>The Opportunity for Equity Appreciation Provided by an
    Investment in the PEPS Units or Treasury PEPS Units Will Be
    Directly Affected by the Trading Price of Our Class&nbsp;A
    Common Shares.</I></B> Your opportunity for equity appreciation
    afforded by investing in PEPS Units or Treasury PEPS Units is
    less than your opportunity for equity appreciation if you
    invested directly in our Class&nbsp;A common shares. Assuming an
    offering price in the concurrent Class&nbsp;A common shares
    offering of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, the market value of
    each Class&nbsp;A common share you receive pursuant to a
    purchase contract on the purchase contract settlement date will
    only exceed the effective price per share of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;paid by you for our Class&nbsp;A
    common shares on the date of this prospectus if the applicable
    market value of the Class&nbsp;A common shares exceeds
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.
    In this event you would receive on the contract settlement date
    only
    approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%
    of the Class&nbsp;A common shares you would have received if you
    had made a direct investment in our Class&nbsp;A common shares
    on the date of this prospectus.</TD>
</TR>

</TABLE>

<P align="left">
<B>Our Relationship with the PricewaterhouseCoopers Network of
Firms</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Until our separation from the PricewaterhouseCoopers network of
firms, which will occur immediately prior to the closing of the
concurrent offerings, our business will continue to be part of
the management consulting and technology services businesses of
firms in the PricewaterhouseCoopers network of firms around the
world. This network of firms is a group of separate firms that
provide various services, including accounting, auditing and tax
services as well as management consulting and technology
services, to businesses and other organizations. Although these
firms share a name, a common management oversight team and
common strategies and operational standards, most of the firms
in the PricewaterhouseCoopers network are owned by their local
partners or shareholders. As part of our separation, management
consulting and technology services businesses representing
approximately 95% of our revenues for the fiscal year ended
June&nbsp;30, 2001, will be transferred to us pursuant to a
number of agreements that we have entered into with some of the
PricewaterhouseCoopers firms or the partners or shareholders of
some of these firms, which we refer to as rollup agreements. In
a number of countries, we have entered into rollup agreements
directly with the partners or shareholders of some of the
PricewaterhouseCoopers firms because these partners or
shareholders directly own either the assets of, or equity in, a
management consulting and technology services business that is
being transferred to us. The countries are Australia, Belgium,
France, Iceland, Italy, Pakistan, Portugal, Sweden and
Switzerland.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The aggregate number of Class&nbsp;A common shares we will issue
to firms that are transferring their management consulting and
technology services businesses, or in some cases their partners
and shareholders,
is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million,
which, assuming an estimated initial public offering price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, will have an aggregate value of
approximately
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;billion.
The allocation of these shares among the PricewaterhouseCoopers
firms was based upon an agreed methodology taking into account a
variety of factors, including expenses incurred by firms for the
general benefit of the PricewaterhouseCoopers network of firms
in connection with our separation, the net book value of the
businesses contributed to us and the relative value of the
businesses contributed to us. In connection with their
withdrawal from their respective PricewaterhouseCoopers firms,
our partners will receive
approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
of these Class&nbsp;A common shares, which will have an
estimated aggregate value of approximately
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million.
Approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million shares
issued to one of the PricewaterhouseCoopers firms will be
purchased by Monday Ltd or one of its subsidiaries immediately
after the closing of the concurrent offerings, resulting in
approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million

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<DIV align="left">
shares outstanding. For purposes of calculating the number of
Class&nbsp;A common shares and value of these shares in the
prior sentences, we have treated all shares issued by our
subsidiaries in connection with our separation, other than those
owned by us or our subsidiaries, as if they had been redeemed or
exchanged on a one-for-one basis for our Class&nbsp;A common
shares. We refer in this prospectus to the transfers of these
businesses and the related actions as our separation or the
separation transaction. Firms in the PricewaterhouseCoopers
network and their partners and shareholders intend to fully
dispose of our Class&nbsp;A common shares and equity of our
subsidiaries as a result of the concurrent Class&nbsp;A common
shares offering.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The rollup agreements include noncompetition arrangements,
various conditions to closing and termination rights. The rollup
agreements also include various representations and warranties,
which will not survive the closing of our separation, and
covenants. Under the terms of the noncompetition arrangements,
the PricewaterhouseCoopers firms generally will be restricted
from competing with us for a period of 5&nbsp;years following
our separation. The term of the noncompetition arrangements may
be of shorter duration in some countries due to legal
restrictions on enforceability. These firms will be able,
however, to offer agreed upon types of management consulting and
technology services, such as human resources services, to any
client, including through existing consulting and advisory
services businesses that are not being transferred to us. In
addition, the PricewaterhouseCoopers firms will be permitted to
provide all management consulting and technology services for
clients that have less than a specified amount of annual
revenues in the particular country where services will be
provided. In our three largest countries in terms of revenues,
the country-specific amounts are $400&nbsp;million in the United
States, $1&nbsp;billion in the United Kingdom and
$1&nbsp;billion in Germany. These firms, however, will not be
permitted to provide any of the management consulting and
technology services they are otherwise restricted from providing
pursuant to the noncompetition arrangements if those clients
have $5&nbsp;billion or more in aggregate annual consolidated
worldwide revenues. The rollup agreements also provide that in
the event a PricewaterhouseCoopers firm enters into a rollup
agreement with us but fails to close under the agreement prior
to the closing of the concurrent Class&nbsp;A common shares
offering, we will be required to close under the agreement at
any time up to one year after the closing of the concurrent
Class&nbsp;A common shares offering if, in the good faith
discretion of the board of PricewaterhouseCoopers International
Limited, an extension of no more than one year is granted to the
firm. PricewaterhouseCoopers International Limited is the global
coordinating entity for the PricewaterhouseCoopers network of
firms.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Prior to our separation, we also will enter into related
agreements with various PricewaterhouseCoopers firms, including
agreements that govern various transition services these firms
will provide us for a period of up to three years. These
services will be provided at cost and include finance and
accounting information services, information technology and
software services and the provision of office space.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For a more detailed description of the terms of our separation
and these agreements, including the noncompetition arrangements,
please see &#147;Arrangements with the PricewaterhouseCoopers
Network of Firms.&#148;

<P align="left">
<B>Auditor Independence Rules, the Enron Situation and the
Impact on Our Business</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The primary purpose of the concurrent Class&nbsp;A common shares
offering is to ensure that we will no longer be subject to the
rules and regulations governing the independence of auditors from

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<DIV align="left">
their clients and to eliminate any perceived conflicts of
interest. Because the PricewaterhouseCoopers network of firms
performs audit services for many of our current and prospective
clients and industry vendors, we are currently restricted from
performing services for some clients and implementing some of
our growth strategies. Some audit clients also have policies
against using their audit firm to provide significant non-audit
services, such as management consulting and technology services.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In June&nbsp;2000, the Securities and Exchange Commission
proposed new rules regarding auditor independence and a rule
requiring most public companies to disclose in their annual
proxy statements information such as fees related to the
non-audit services provided by their auditor during the most
recent fiscal year. Final rules based on this proposal became
effective in February&nbsp;2001. Beginning in late 2000, we
began experiencing an increase in the number of clients that
either limit our opportunities to bid for new engagements or
prohibit us entirely from bidding for new engagements because
they are audited by a PricewaterhouseCoopers firm. In addition,
some of our existing engagements with PricewaterhouseCoopers
audit clients have been reduced in scope. These clients have
been primarily United States and foreign companies with
securities listed or traded on United States securities markets,
although we are now experiencing increased independence-related
constraints outside the United States as well.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The recent high profile bankruptcy filing by the Enron
Corporation has increased further the attention boards of
directors and the marketplace pay to auditor independence. In
the Enron situation, governmental authorities and the media are
investigating whether the management consulting fees paid to
Arthur Andersen compromised its role as Enron&#146;s independent
auditor. The independence disclosure rules and the fallout from
the perceived conflicts of interest in the Enron situation are
significantly limiting our ability to compete.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
While we believe we are experiencing the adverse effects of the
independence-related issues and the Enron situation worldwide,
we have been most significantly affected in the United States.
We believe the difficulty we are having obtaining new
engagements in the United States from audit clients of
PricewaterhouseCoopers firms is evidenced by a recent trend in
our new bookings from these clients in our Americas theatre,
which is comprised principally of our United States business.
Bookings is the amount we expect to realize in net revenues over
the life of an engagement for which we have entered into a
contract with our client. We estimate that our average monthly
bookings from clients that we have identified as audit clients
of PricewaterhouseCoopers firms were approximately 57% lower in
the Americas theatre in the fiscal quarter ended March&nbsp;31,
2002, as compared to the six months ended December&nbsp;31,
2001. Please see &#147;Management&#146;s Discussion and Analysis
of Financial Condition and Results of
Operations&#151;Overview&#151;Auditor Independence Rules, the
Enron Situation and the Impact on Our Business&#148; for a more
detailed discussion of the calculation of this estimate.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We expect the level of new business we are awarded from
PricewaterhouseCoopers audit clients worldwide will continue to
decline through at least the remainder of fiscal year 2002, with
a possibility of reversal beginning only after we complete our
separation. Accordingly, we believe that our separation from the
PricewaterhouseCoopers network of firms as a result of the
concurrent Class&nbsp;A common shares offering will provide
significant growth opportunities for our business. Our ability
to capitalize on these opportunities will depend, among other
things, on the successful maintenance or, in some cases,
reestablishment of our relationships with these clients and
obtaining

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

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<DIV align="left">
new engagements from these clients on a timely basis. In
addition, while we believe that independence-related issues are
a significant reason for our declining revenues, with the
greatest impact being in our most recent fiscal quarter ended
March&nbsp;31, 2002, we believe that the effects of the global
economic downturn have been more significant contributing
factors to the overall decline in our revenues through
March&nbsp;31, 2002. Accordingly, our separation alone may not
prevent our revenues from continuing to decline.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Please see &#147;Auditor Independence Rules, the Enron Situation
and the Proposed SEC No-Action Letter&#148; and
&#147;Management&#146;s Discussion and Analysis of Financial
Condition and Results of Operations&#151; Overview&#151; Auditor
Independence Rules, the Enron Situation and the Impact on Our
Business&#148; for a more detailed discussion of the auditor
independence rules, the Enron situation and the impact on our
business.

<P align="left">
<B>Information about Us and Our Partners</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Monday Ltd was incorporated under the laws of Bermuda on
March&nbsp;27, 2002. Monday Ltd changed its name from PwCC
Limited to Monday&nbsp;Ltd on June&nbsp;10, 2002. The principal
executive office of Monday Ltd is in Hamilton, Bermuda, and its
telephone number in Bermuda is (441) 295-5950. Monday SCA was
organized under the laws of Luxembourg on April&nbsp;4, 2002.
Monday Finance SA was organized under the laws of Luxembourg on
July&nbsp;1, 2002. Monday SCA changed its name from PwC
Consulting SCA to Monday SCA on June&nbsp;10, 2002. The
principal executive office of each of Monday SCA and Monday
Finance SA is in Luxembourg, Luxembourg. Their telephone number
in Luxembourg is
(352)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.
In addition, we have major offices in the world&#146;s leading
business centers, including Atlanta, Chicago, Dallas, Frankfurt,
Hong Kong, London, Madrid, New York, Paris, Philadelphia,
San&nbsp;Francisco, S&#227;o&nbsp;Paulo, Sydney, Tokyo and
Toronto. Our Internet address is www.monday.com. Information
contained on this site is not a part of this prospectus.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We use the term &#147;our partners&#148; in this prospectus to
refer to the partners and shareholders of some of the firms in
the PricewaterhouseCoopers network who will become our senior
employees upon the completion of our separation. These employees
generally will retain the title &#147;partner&#148; within our
company following the concurrent Class&nbsp;A common shares
offering. Where the context permits, the term also refers to our
employees and others who in the future are named as
&#147;partner&#148; in this sense. In using the term
&#147;partner&#148; or &#147;partners,&#148; we do not mean to
imply they are partners in the legal sense or any intention of
the parties to create a separate legal entity, such as a
partnership.

<P align="center"><FONT size="2">9
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<P align="left">
<B>Our Organizational Structure and Shareholders</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our organizational structure following our separation is
expected to be as shown in the diagram below. This diagram
includes our principal subsidiary, Monday SCA, which is a
Luxembourg partnership limited by shares. We are the general
partner, or manager, of Monday SCA. This diagram does not
display any of our other subsidiaries or any of Monday
SCA&#146;s subsidiaries, other than Monday Finance SA which is a
Luxembourg corporation and has no material activities, assets,
other than any potential loans it may make to Monday SCA and its
subsidiaries, or liabilities, other than liabilities in respect
of the senior notes issued as part of the PEPS Units.

<P align="center">
<IMG src="y61876y6187601.gif" alt="(PWC FLOWCHART)">

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under the rollup agreements described above, firms in the
PricewaterhouseCoopers network, or their partners or
shareholders, that transfer their management consulting and
technology services businesses to us generally will exchange
their interests in these businesses for our Class&nbsp;A common
shares or Class&nbsp;I common shares of Monday SCA. The type of
equity these firms, or their partners or shareholders, will
receive depends on the particular country in which the firm is
located. Our partners in Canada also will be receiving
exchangeable shares of one of Monday&nbsp;SCA&#146;s
subsidiaries in connection with our separation, which shares
will be exchangeable into our Class&nbsp;A common shares on a
one-for-one basis. Holders of Monday SCA Class&nbsp;I common
shares or exchangeable shares of one of Monday SCA&#146;s
subsidiaries will have the right to purchase for nominal
consideration a number of our Class&nbsp;X common shares, which
have the same voting rights as our Class&nbsp;A common shares
but no economic rights, equal to the number of Monday SCA
Class&nbsp;I common shares or exchangeable shares that they
receive.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Described below is our expected equity ownership following our
separation, in each case calculated assuming all Monday SCA
Class&nbsp;I common shares and all exchangeable shares issued by
one of Monday SCA&#146;s subsidiaries that are not owned by us
or our subsidiaries have been redeemed

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</FONT>
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<DIV align="left">
or exchanged on a one-for-one basis for our Class&nbsp;A common
shares. These percentages reflect both economic interests and
voting interests.
</DIV>
<P>

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

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD> &#149;</TD>
    <TD align="left">
    Our partners will own
    approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of our
    Class&nbsp;A common shares, not including Class&nbsp;A common
    shares to be issued in respect of restricted share units, or
    approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% if the
    underwriters exercise their over-allotment option in full. Our
    partners will enter into the voting agreement described below.</TD>
</TR>

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

<TR valign="top">
    <TD> &#149;</TD>
    <TD align="left">
    Our public shareholders will own
    approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of our
    Class&nbsp;A common shares, or
    approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% if the
    underwriters exercise their over-allotment option in full.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The PricewaterhouseCoopers firms and their partners and
shareholders intend to dispose of all of their equity in us as a
result of the concurrent Class&nbsp;A common shares offering. In
the event, however, these firms and their partners and
shareholders continue to hold any of our Class&nbsp;A common
shares or equity in our subsidiaries, they will be subject to
voting and other restrictions as described under
&#147;Arrangements with the PricewaterhouseCoopers Network of
Firms&#151;Shareholders Agreement.&#148; The percentage of our
Class&nbsp;A common shares that these firms and their partners
and shareholders will be permitted to hold immediately following
the closing of the concurrent Class&nbsp;A common shares
offering will be equal to or less than the percentage set forth
in a no-action letter that we expect the Securities and Exchange
Commission to issue in connection with our separation. The
no-action letter, if granted as currently proposed by us, would
provide that the SEC would take no action to attribute our
business activities following the closing of the concurrent
Class&nbsp;A common shares offering to the
PricewaterhouseCoopers firms so long as these firms hold less
than a specified percentage of our equity and other specified
conditions are met. We have proposed that this percentage be
less than 20% of our Class&nbsp;A common shares outstanding
immediately following the closing of the concurrent Class&nbsp;A
common shares offering, calculated as if all Monday SCA
Class&nbsp;I common shares and all exchangeable shares issued by
one of Monday SCA&#146;s subsidiaries had been redeemed or
exchanged on a one-for-one basis for our Class&nbsp;A common
shares.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Firms in the PricewaterhouseCoopers network that are not
transferring a management consulting and technology services
business to us will fall into one of the following categories.
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD> &#149;</TD>
    <TD align="left">
    <B><I>Firms with no management consulting and technology
    services businesses.</I></B> If these firms enter into
    noncompetition agreements with us, we will give them a cash
    payment.</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD> &#149;</TD>
    <TD align="left">
    <B><I>Firms not invited to transfer their management consulting
    and technology services businesses to us.</I></B> Except as
    described below, if these firms agree to enter into
    noncompetition agreements with us and wind down their management
    consulting and technology services businesses that would not be
    allowed to compete with us pursuant to the terms of the
    noncompetition agreements, we will give them a cash payment.
    Otherwise, they will lose the right to use the
    PricewaterhouseCoopers name in connection with their management
    consulting and technology services businesses, and we will be
    free to compete with them. In the case of firms with business
    process management services businesses that are not being
    transferred to us, these businesses will remain with the
    PricewaterhouseCoopers firms and continue to be operated.
    Excluding business process management services businesses, the
    management consulting and technology services businesses of
    firms not invited to transfer these businesses represented
    approximately 2% of our revenues for fiscal</TD>
</TR>

</TABLE>

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</FONT>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    year 2001. The business process management services businesses
    not being transferred to us represented approximately 3% of our
    revenues for fiscal year 2001.</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD> &#149;</TD>
    <TD align="left">
    <B><I>Firms electing to transfer their management consulting and
    technology services businesses to us but which are unable to
    satisfy participation conditions at the time of the concurrent
    Class&nbsp;A common shares offering.</I></B> The board of the
    global coordinating entity for the PricewaterhouseCoopers
    network of firms, in its good faith discretion, has the right
    under the rollup agreements to allow these firms to complete the
    transfer to us within a period of time, not to exceed one year,
    following the closing of the concurrent Class&nbsp;A common
    shares offering. If this board grants such an extension, we are
    required to close the transfer during the extension period
    pursuant to the terms of the rollup agreement. If this board
    does not grant such an extension or if a PricewaterhouseCoopers
    firm ultimately fails to consummate a transfer within the
    extension period, the firm will be asked to enter into a
    noncompetition agreement with us, to wind down its management
    consulting and technology services business that would not be
    allowed to compete with us pursuant to the terms of the
    noncompetition agreement and to execute a shareholders
    agreement, if applicable. If the firm enters into these
    arrangements with us, we will give them a cash payment or
    Class&nbsp;A common shares, at our discretion, which shares
    would be in an amount less than the firm would have received if
    it had transferred its management consulting and technology
    services business to us. If the firm fails to enter into these
    arrangements with us, the firm may no longer use the
    PricewaterhouseCoopers name in connection with its management
    consulting and technology services business, and we will be free
    to compete with the firm. We currently expect that the
    PricewaterhouseCoopers firm in China will transfer its
    management consulting and technology services business to us
    after the closing of the concurrent Class&nbsp;A common shares
    offering due to regulatory reasons.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The amount of consideration to be paid to the
PricewaterhouseCoopers firms that enter into a noncompetition
agreement with us will depend on a variety of factors, including
the size of the particular PricewaterhouseCoopers firms. The
total compensation paid to these firms is not expected to exceed
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our partners will enter into a voting agreement with each other
and us that, among other things, will provide that a separate,
preliminary vote of our partners will be conducted prior to any
vote of our shareholders. The effect of the voting agreement is
that most of our Class&nbsp;A common shares and our Class&nbsp;X
common shares held by our partners will be voted as a single
block. Because our partners will hold
approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of the aggregate
voting power of our Class&nbsp;A common shares and our
Class&nbsp;X common shares, or &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%
if the underwriters&#146; over-allotment option is exercised in
full, following the closing of this offering, the decision of
our partners holding our Class&nbsp;A common shares and our
Class&nbsp;X common shares subject to the voting agreement
likely would have a significant effect on any shareholder vote,
including a vote with respect to any offer to acquire us. Our
partners have agreed not to approve any acquisition transaction
unless two-thirds of our partners vote to approve the
transaction.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Please see &#147;Our Organizational Structure,&#148;
&#147;Arrangements with the PricewaterhouseCoopers Network of
Firms,&#148; &#147;Arrangements With Our Partners,&#148;
&#147;Principal and Selling Shareholders in the Concurrent
Class&nbsp;A Common Shares Offering,&#148; &#147;Description of
the PEPS Units&#148; and &#147;Description of Share
Capital&#148; for additional information about our
organizational structure and shareholders.

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<!-- link2 "THE OFFERING" -->
<DIV align="left"><A NAME="001"></A></DIV>

<P align="center">
<B>THE OFFERING</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In this section, the words &#147;we&#148;, &#147;us&#148; and
&#147;our&#148; refer only to Monday Ltd and not to any of its
subsidiaries.

<P align="left">
<B>What are the components of a PEPS Unit?</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each PEPS Unit consists of a purchase contract issued by us and,
initially, a $25 principal amount senior note
due &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;,
2008 issued by Monday Finance SA. Monday Finance SA is an
indirect wholly-owned subsidiary of Monday SCA, which is our
majority-owned subsidiary. Monday SCA has agreed to absolutely,
irrevocably and unconditionally guarantee the payment of
principal, interest, additional amounts, if any, and premium, if
any, on the senior notes. We refer to the senior notes due 2008
issued by Monday Finance SA and the related guarantee by Monday
SCA collectively as the senior notes. The senior note that is a
component of each PEPS Unit is owned by you, but it will be
pledged to us to secure your obligations under the purchase
contract. If a special event redemption occurs, as described in
this prospectus, the applicable ownership interest in the
Treasury portfolio will replace the senior note as a component
of each PEPS Unit and will be pledged to us to secure your
obligations under the related purchase contract.

<P align="left">
<B>What is a purchase contract?</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each purchase contract underlying a PEPS Unit obligates the
holder of the purchase contract to purchase, and obligates us to
sell,
on &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;,
2006, which we refer to as the purchase contract settlement
date, for $25 in cash, a number of our newly issued Class&nbsp;A
common shares equal to the settlement rate. The settlement rate
will be calculated, subject to adjustment under the
circumstances set forth under &#147;Description of the Purchase
Contracts&#151;Anti-dilution Adjustments,&#148; as follows:
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD> &#149;</TD>
    <TD align="left">
    if the applicable market value of our Class&nbsp;A common shares
    is equal to or greater than the threshold appreciation price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    the settlement rate will
    be &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD> &#149;</TD>
    <TD align="left">
    if the applicable market value of our Class&nbsp;A common shares
    is less than the threshold appreciation price but greater than
    the reference price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    the settlement rate will be equal to $25 divided by the
    applicable market value; and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD> &#149;</TD>
    <TD align="left">
    if the applicable market value is less than or equal to the
    reference price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    the settlement rate will
    be &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Applicable market value&#148; means the average of the
closing price per share of our Class&nbsp;A common shares on
each of the twenty consecutive trading days ending on the third
trading day immediately preceding the purchase contract
settlement date. The &#147;reference price&#148; is the initial
public offering price of our Class&nbsp;A common shares.

<P align="left">
<B>Can I settle the purchase contract early?</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You may settle a purchase contract at any time
following &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;,
2003 (12 calendar months following the initial public offering
of our Class&nbsp;A common shares) through the fifth business
day immediately preceding the purchase contract settlement date
using cash, in which
case &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
our Class&nbsp;A common shares will be issued pursuant to the
purchase contract. In addition, if we are involved in a merger
in which at least 30% of the consideration for our Class&nbsp;A

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</FONT>

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<DIV align="left">
common shares consists of cash or cash equivalents, then each
holder of a purchase contract will have the right to accelerate
and settle the purchase contract at the settlement rate in
effect immediately prior to the closing of the cash merger. You
may settle purchase contracts early only in integral multiples
of 40 purchase contracts.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Your early settlement right is subject to the condition that if
required under the U.S. federal securities laws, we have a
registration statement under the Securities Act of 1933 in
effect covering the Class&nbsp;A common shares deliverable upon
settlement of a purchase contract. We will use our reasonable
best efforts to have a registration statement in effect covering
such Class&nbsp;A common shares if so required by U.S. federal
securities laws.

<P align="left">
<B>What are the components of a Treasury PEPS Unit?</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each Treasury PEPS Unit consists of a purchase contract and a
Treasury security. The Treasury security is a 2.5% undivided
beneficial interest in a zero-coupon U.S. Treasury security with
a principal amount of $1,000 that matures
on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006 (Cusip
No. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;).
The Treasury security that is a component of each Treasury PEPS
Unit will be owned by the holder of the Treasury PEPS Unit, but
it will be pledged to us to secure the holder&#146;s obligations
under the purchase contract.

<P align="left">
<B>How can I create Treasury PEPS Units from PEPS Units?</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each holder of PEPS Units will have the right, at any time on or
prior to the fifth business day immediately preceding the
purchase contract settlement date, to substitute for the related
senior notes or, if the Treasury portfolio has replaced the
senior notes as a result of a special event redemption,
applicable ownership interests in the Treasury portfolio, as the
case may be, Treasury securities with a total principal amount
at maturity equal to the aggregate principal amount of the
senior notes or applicable ownership interests in the Treasury
portfolio for which substitution is being made. This
substitution will create Treasury PEPS Units, and the applicable
senior notes or applicable ownership interests in the Treasury
portfolio, as the case may be, will be released to the holder.
Because Treasury securities are issued in multiples of $1,000,
holders of PEPS Units may make this substitution only in
integral multiples of 40&nbsp;PEPS Units. However, if the
Treasury portfolio has replaced the senior notes, holders of
PEPS Units may make substitutions only in multiples
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PEPS
Units.

<P align="left">
<B>How can I recreate PEPS Units from Treasury PEPS Units?</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each holder of Treasury PEPS Units will have the right, at any
time on or prior to the fifth business day immediately preceding
the purchase contract settlement date, to substitute senior
notes or, if the Treasury portfolio has replaced the senior
notes as a result of a special event redemption, applicable
ownership interests in the Treasury portfolio for the related
Treasury securities held by the collateral agent, in an
aggregate principal amount of such senior notes or applicable
ownership interest in the Treasury portfolio, as the case may
be, equal to the aggregate principal amount at maturity of the
Treasury securities. This substitution would recreate PEPS
Units, and the applicable Treasury securities would be released
to the holder. Because Treasury securities are issued in
integral multiples of $1,000, holders of Treasury PEPS Units may
make these substitutions only in integral multiples of 40
Treasury PEPS Units. However, if the Treasury portfolio has
replaced the

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<DIV align="left">
senior notes, holders of the Treasury PEPS Units may make
substitutions only in integral multiples
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury
PEPS Units.
</DIV>

<P align="left">
<B>What payments am I entitled to as a holder of PEPS Units?</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Holders of PEPS Units will receive quarterly cash distributions
consisting of interest payments on the senior notes payable by
Monday Finance&nbsp;SA or distributions on the applicable
ownership interest in the Treasury portfolio, in each case at
the rate
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%
per year.

<P align="left">
<B>Are the interest payments deferrable?</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
No. Monday Finance SA may not defer interest payments on the
senior notes.

<P align="left">
<B>What are the payment dates for the PEPS Units?</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The payments described above in respect of the PEPS Units will
be payable quarterly in arrears
on &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;&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;and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
each year,
commencing &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2002. These payments will be payable to but excluding the
earlier of the purchase contract settlement date and the most
recent quarterly payment date on or before any early settlement
of the related purchase contracts.

<P align="left">
<B>What payments will I be entitled to if I create Treasury PEPS
Units?</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Holders of Treasury PEPS Units will not be entitled to receive
any cash distributions. However, original issue discount will
accrue on each related Treasury security.

<P align="left">
<B>What is remarketing?</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Remarketing allows PEPS Units holders to satisfy their
obligations under the related purchase contracts by reselling
the senior notes which are a component of the PEPS Units through
the remarketing agent and using the proceeds of the remarketing
to pay the purchase price under the related purchase contracts.
Unless the Treasury portfolio has replaced the senior notes as a
component of the PEPS Units, if a PEPS Unit holder fails to
notify the purchase contract agent on or prior to the fifth
business day immediately preceding the purchase contract
settlement date of its intention to pay cash to satisfy its
obligation under the related purchase contracts, or fails to
deliver such cash on or prior to the fourth business day
immediately preceding the purchase contract settlement date, the
senior notes that are a component of such PEPS Unit will be
remarketed on the third business day immediately preceding the
purchase contract settlement date, unless a condition to the
remarketing is not satisfied. The remarketing agent will use its
reasonable best efforts to remarket the notes, bearing the reset
rate described below, at a price that results in proceeds of
approximately 100.25% of the aggregate principal amount of the
senior notes remarketed. However, the remarketing shall be
considered successful if the resulting proceeds are at least
equal to 100% of such aggregate principal amount.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Upon a successful remarketing, the portion of the proceeds equal
to the aggregate principal amount of the senior notes remarketed
will automatically be applied to satisfy in full the PEPS Unit
holders&#146; obligations to purchase our Class&nbsp;A common
shares under the related purchase contracts. If any proceeds
remain after satisfying such obligations, the remarketing agent
will deduct as a

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

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<DIV align="left">
remarketing fee an amount not exceeding 25 basis points (.25%)
of the aggregate principal amount of the senior notes remarketed
and remit any remaining proceeds for the benefit of the holders.
</DIV>

<P align="left">
<B>What happens if the senior notes are not successfully
remarketed?</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If the remarketing of the senior notes fails because the
remarketing agent cannot obtain a price of at least 100% of the
total principal amount of the senior notes remarketed or because
a condition precedent to the remarketing has not been satisfied,
the interest rate on the senior notes will not be reset.
Following a failed remarketing, we will exercise our rights as a
secured party to retain the senior notes pledged as collateral
or dispose of them in accordance with applicable law. Following
such action, the PEPS Units holders&#146; obligations to
purchase our Class&nbsp;A common shares under the related
purchase contracts on the purchase contract settlement date will
be satisfied in full. Following a failed remarketing, holders of
senior notes that are not part of PEPS Units will have the right
to put the senior notes to Monday Finance SA
on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006 (the date six weeks following the purchase contract
settlement date), upon at least three business days&#146; prior
notice at a price per senior note of $25, plus accrued and
unpaid interest and additional amounts, if any.

<P align="left">
<B>If I am holding a senior note as a separate security can I
participate in the remarketing?</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Holders of senior notes that are not components of PEPS Units
may elect, in the manner described in this prospectus, to have
their senior notes included in the remarketing by the
remarketing agent.

<P align="left">
<B>Besides participating in a remarketing, how else may I
satisfy my obligations under the purchase contracts?</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Holders of PEPS Units or Treasury PEPS Units may satisfy their
obligations, or their obligations will be terminated, under the
purchase contracts as follows:
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD> &#149;</TD>
    <TD align="left">
    through early settlement by the delivery of cash to the purchase
    contract agent at any time
    following &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2003 (12&nbsp;calendar months following the initial public
    offering of our Class&nbsp;A common shares) through the fifth
    business day immediately preceding the purchase contract
    settlement date; provided that at such time, if so required
    under the U.S. federal securities laws, there is in effect a
    registration statement covering the Class&nbsp;A common shares
    to be delivered in respect of the purchase contracts being
    settled;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD> &#149;</TD>
    <TD align="left">
    in the case of holders of PEPS Units, unless the Treasury
    portfolio has replaced the senior notes as a component of the
    PEPS Units, by settling the related purchase contracts with cash
    on the fourth business day immediately preceding the purchase
    contract settlement date, pursuant to prior notification to the
    purchase contract agent;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD> &#149;</TD>
    <TD align="left">
    in the case of holders of Treasury PEPS Units, or PEPS Units if
    the Treasury portfolio has replaced the senior notes as a
    component of the PEPS Units, through the automatic application
    of the proceeds of the disposition of the Treasury securities or
    the Treasury portfolio, as the case may be; or</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD> &#149;</TD>
    <TD align="left">
    without any further action, upon the termination of the purchase
    contracts as a result of our bankruptcy, insolvency or
    reorganization.</TD>
</TR>

</TABLE>

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

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<P align="left">
<B>What interest payments will I receive on the senior notes?</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Interest on the senior notes will be payable initially at the
annual rate of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% per year to, but
excluding, the reset effective date, which will be the third
business day following the date of a successful remarketing of
the senior notes, and will be paid quarterly in arrears.
Following a reset of the interest rate, the interest rate on the
senior notes will equal the reset rate from, and including, the
reset effective date to, but
excluding, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2008 (the maturity date of the senior notes) and interest will
be paid semi-annually in arrears. If there is not a successful
remarketing of the senior notes, the interest rate will not be
reset and the senior notes will continue to bear interest at the
initial interest rate, payable quarterly in arrears.

<P align="left">
<B>What are the payment dates on the senior notes?</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Interest on the senior notes initially will be payable quarterly
in arrears on
each &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;&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;and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
commencing &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2002. Following a successful remarketing, interest on the senior
notes will be payable semi-annually in arrears on
each &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
commencing &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2007 (the date six months following the purchase contract
settlement date).

<P align="left">
<B>What is the reset rate?</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The reset rate will be the interest rate determined by the
remarketing agent as the rate the senior notes should bear in
order for the senior notes remarketed to have an approximate
aggregate market value on the remarketing date of 100.25% of the
aggregate principal amount of such senior notes. The reset rate
will become effective three business days following the date of
a successful remarketing. The interest rate on the senior notes
will not be reset if there is not a successful remarketing.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The reset rate may not, however, exceed the maximum rate, if
any, permitted by applicable law.

<P align="left">
<B>When may the senior notes be redeemed?</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The senior notes are redeemable at the option of Monday Finance
SA, in whole but not in part, upon the occurrence and
continuation of a tax event or an accounting event. Following
any such redemption of the senior notes, which we refer to as a
special event redemption, prior to the purchase contract
settlement date, the redemption price for the senior notes that
are a component of PEPS Units will be paid to the collateral
agent, who will purchase the Treasury portfolio and remit any
remaining proceeds to the holders. Thereafter, the applicable
ownership interest in the Treasury portfolio will replace the
senior notes as a component of PEPS Units and will be pledged to
us. Holders of senior notes that are not a component of PEPS
Units will receive the redemption price paid in such special
event redemption.

<P align="left">
<B>What is the Treasury portfolio?</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Treasury portfolio is a portfolio of zero-coupon U.S.
Treasury securities consisting of:
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD> &#149;</TD>
    <TD align="left">
    interest or principal strips of U.S. Treasury securities that
    mature on or prior to the business day immediately preceding the
    purchase contract settlement date in an aggregate amount equal
    to the principal amount of the senior notes included in the PEPS
    Units, and</TD>
</TR>

</TABLE>

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</FONT>

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<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD> &#149;</TD>
    <TD align="left">
    with respect to each scheduled payment date for the senior notes
    that occurs after the special event redemption date and on or
    before the purchase contract settlement date, interest or
    principal strips of U.S. Treasury securities that mature on or
    prior to the business day immediately preceding that payment
    date in an aggregate amount equal to the aggregate interest
    payment that would be due on that payment date on the aggregate
    principal amount of the senior notes included in the PEPS Units.</TD>
</TR>

</TABLE>

<P align="left">
<B>What is the ranking of the senior notes?</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The senior notes will rank equally and ratably with all of the
other unsecured and unsubordinated obligations of Monday Finance
SA. The indenture under which the senior notes will be issued
will not limit the ability of Monday Finance SA to issue or
incur other debt or issue preferred stock or prohibit the
creation of liens on its assets. See &#147;Description of the
Senior Notes.&#148;

<P align="left">
<B>What is the guarantee from Monday SCA?</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Monday SCA will agree in the senior note indenture to
absolutely, irrevocably and unconditionally guarantee the
payment of principal, interest, additional amounts, if any, and
premium, if any, on the senior notes. The guarantee of the
senior notes will rank equally and ratably with all of the other
unsecured and unsubordinated obligations of Monday SCA. Because
Monday SCA is a holding company that derives all of its income
from its operating subsidiaries, the guarantee of the senior
notes will be effectively subordinated to liabilities of,
including any debt and preferred stock which may be incurred or
issued by, those subsidiaries. The senior note indenture will
not limit the ability of Monday SCA or its subsidiaries to incur
or issue debt or preferred stock or prohibit the creation of
liens on their assets. See &#147;Description of the Senior
Notes&#151;Guarantees.&#148; Despite its holding company nature,
Monday SCA is not a holding company within the meaning of
Luxembourg&#146;s Law of 31st&nbsp;July 1929.

<P align="left">
<B>What are the U.S. federal and other income tax consequences
related to the PEPS Units and the Treasury PEPS Units?</B>

<P align="left">
<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Luxembourg
Tax Considerations</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under current Luxembourg law, no income, withholding or other
taxes or stamp or other duties are imposed in Luxembourg upon
the issue, transfer or sale of the senior notes or on any
payments under the senior notes, except, in some circumstances,
to holders that for Luxembourg tax purposes are resident in or
have a permanent establishment in Luxembourg.

<P align="left">
<B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bermuda
Tax Considerations</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Under current Bermuda law, no income, withholding or other taxes
or stamp or other duties are imposed in Bermuda upon the issue,
transfer or sale of the purchase contracts or Class&nbsp;A
common shares issued under the purchase contracts or on any
payments on Class&nbsp;A common shares, except, in some
circumstances, to persons ordinarily resident in Bermuda.

<P align="left">
<B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>United
States Federal Income Tax Considerations for U.S. Holders</I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Because a PEPS Unit will consist of a purchase contract and a
senior note, the purchase price of each PEPS Unit will be
allocated between the purchase contract and the senior note in
proportion to their relative fair market values at the time of
purchase. We expect that as of the date of issuance

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</FONT>
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<DIV align="left">
of the PEPS Units, the fair market value of each purchase
contract will be
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
the fair market value of each senior note will
be&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If a holder owns PEPS Units, such holder will include in gross
income interest payments on the senior notes when such interest
is paid or accrued in accordance with the holder&#146;s regular
method of tax accounting. In addition, under the allocation
described above of the purchase price of a PEPS Unit between the
related senior note and purchase contract, the principal amount
of the senior note will be greater than the portion of the
purchase price allocated to the senior note, and the senior note
will thus be considered for U.S. federal income tax purposes to
have been issued with original issue discount, in an amount
equal to such excess. You will be required to include this
original issue discount in income for U.S. federal income tax
purposes as it accrues over the period from the original issue
date through the reset effective date, in accordance with a
constant-yield method based on a compounding of interest.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If a holder owns Treasury PEPS Units or PEPS Units when the
Treasury portfolio has replaced the senior notes, such holder
will be treated as the owner of the applicable Treasury
securities for United States federal income tax purposes and
will be taxed accordingly on interest income, including original
issue discount and acquisition discount, gain and loss realized
with respect to such securities.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Because there is no statutory, judicial or administrative
authority directly addressing the tax treatment of PEPS Units or
instruments similar to PEPS Units, each holder is urged to
consult its own tax advisor concerning the tax consequences of
an investment in PEPS Units.

<P align="left">
<B>FOR ADDITIONAL INFORMATION, SEE &#147;MATERIAL INCOME TAX
CONSEQUENCES&#148; IN THIS PROSPECTUS, STARTING ON
PAGE&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.</B>

<P align="left">
<B>Will the PEPS Units be listed on a stock exchange?</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
We will apply to list the PEPS Units on the New York Stock
Exchange under the symbol
&#147;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.&#148;
Neither the Treasury PEPS Units nor the senior notes will
initially be listed and we do not have any obligation or current
intention to apply for a separate listing of either of those
securities.

<P align="left">
<B>Are there conditions to the closing of this offering of the
PEPS Units?</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The closing of this offering of PEPS Units is conditioned upon
the successful closing of the initial public offering of our
Class&nbsp;A common shares, which are offered pursuant to a
separate prospectus. See &#147;&#151;Concurrent Class&nbsp;A
Common Shares Offering&#148; below.

<P align="left">
<B>What are the uses of proceeds from the offering?</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Monday Finance SA will distribute or loan the net proceeds of
this offering to Monday SCA, or entities controlled by Monday
SCA, which will use such proceeds (1)&nbsp;to pay separation and
transaction expenses, (2)&nbsp;to acquire businesses from
PricewaterhouseCoopers firms in several countries, (3)&nbsp;as
consideration for the receipt of noncompetition agreements from
several PricewaterhouseCoopers firms and (4)&nbsp;for general
corporate purposes. See &#147;Use of Proceeds.&#148;

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

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<!-- link2 "THE OFFERING--EXPLANATORY DIAGRAMS" -->
<DIV align="left"><A NAME="002"></A></DIV>

<P align="center">
<B>THE OFFERING&#151;EXPLANATORY DIAGRAMS</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following diagrams demonstrate some of the key features of
the purchase contracts, PEPS Units, Treasury PEPS Units and
senior notes and the transformation of PEPS Units into Treasury
PEPS Units and senior notes.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following diagrams assume that the senior notes are
successfully remarketed and the interest rate on the senior
notes is reset on the third business day immediately preceding
the purchase contract settlement date.

<P align="left">
<B>Purchase Contracts</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PEPS Units and Treasury PEPS Units both include a purchase
contract under which the investor agrees to purchase our
Class&nbsp;A common shares at the end of four years.

<P align="center">
<IMG src="y61876y6187602.gif" alt="LOGO">

<DIV align="left">
<HR size="1" width="15%" align="left" noshade>
</DIV>
<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">The &#147;reference price&#148; is
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    which is the initial public offering price of our Class&nbsp;A
    common shares.
    </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">The &#147;threshold appreciation price&#148; is
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.
    </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">If the applicable market value of our
    Class&nbsp;A common shares is less than or equal to the
    reference price, the number of shares to be delivered will be
    calculated by dividing $25 by the reference price.
    </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">If the applicable market value of our
    Class&nbsp;A common shares is between the reference price and
    the threshold appreciation price, the number of shares to be
    delivered will be calculated by dividing $25 by the applicable
    market value.
    </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">If the applicable market value of our
    Class&nbsp;A common shares is equal to or greater than the
    threshold appreciation price, the number of shares to be
    delivered will be calculated by dividing $25 by the threshold
    appreciation price.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD><FONT size="2">(6)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The &#147;applicable market value&#148; means the
    average of the closing price per share of our Class&nbsp;A
    common shares on the 20 consecutive trading days ending on the
    third trading day immediately preceding the purchase contract
    settlement date.
    </FONT></TD>
</TR>

</TABLE>

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

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<P align="left">
<B>PEPS Units</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A PEPS Unit consists of two components as described below:

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

<TR>
    <TD width="59%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="38%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <B><FONT size="2">Purchase Contact</FONT></B></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <B><FONT size="2">Senior Note</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <BR>
    <BR>
    <FONT size="2">(Owed to Holder of<BR>
    PEPS Unit by Monday&nbsp;Ltd)<BR>
    Class A Common Shares
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <BR>
    <FONT size="2">(Owed to Holder of<BR>
    PEPS Unit by Monday<BR>
    Finance SA)<BR>
    % per annum<BR>
    paid quarterly<BR>
    guaranteed by Monday SCA<BR>
    <BR>
    (reset in connection with<BR>
    remarketing and<BR>
    paid semi-annually<BR>
    thereafter)
    </FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <BR>
    <BR>
    <FONT size="2">(Owed to Monday Ltd&nbsp;by<BR>
    Holder of PEPS Unit)<BR>
    <BR>
    $25 at Settlement<BR>
    (end of year 4)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <BR>
    <FONT size="2">(Owed to Holder of<BR>
    PEPS Unit by Monday<BR>
    Finance SA)<BR>
    <BR>
    $25 at Maturity<BR>
    (end of year 6)<BR>
    guaranteed by Monday<BR>
    SCA
    </FONT></TD>
</TR>

</TABLE>
</CENTER>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD> &#149;</TD>
    <TD align="left">
    The holder owns the senior note but will pledge it to us to
    secure its obligations under the purchase contract.</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD> &#149;</TD>
    <TD align="left">
    If the Treasury portfolio has replaced the senior notes as a
    result of a special event redemption, the applicable ownership
    interest in the Treasury portfolio will be a component of a PEPS
    Unit and will be pledged to us to secure the holder&#146;s
    obligations under the purchase contract.</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD> &#149;</TD>
    <TD align="left">
    Following a successful remarketing of the senior notes, interest
    on the senior notes will be paid semi-annually at the reset rate.</TD>
</TR>

</TABLE>

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

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

<P align="left">
<B>Treasury PEPS Units</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
A Treasury PEPS Unit consists of two components as described
below:

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

<TR>
    <TD width="62%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="35%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Purchase Contract</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Zero Coupon</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></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Treasury Security</FONT></B></TD>
</TR>

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

<TR>
    <TD align="center" valign="top">
    <FONT size="2">(Owed to Holder of<BR>
    Treasury PEPS Unit by<BR>
    Monday Ltd)<BR>
    Class&nbsp;A Common Shares
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" valign="top">
    <FONT size="2">(Owed to Monday Ltd by Holder of<BR>
    Treasury PEPS Unit)<BR>
    $25 at Settlement<BR>
    (end of year&nbsp;4)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">(Owed to Holder of<BR>
    Treasury PEPS Unit)<BR>
    <BR>
    $25 at Maturity<BR>
    (end of year 4)
    </FONT></TD>
</TR>

</TABLE>
</CENTER>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD> &#149;</TD>
    <TD align="left">
    The investor owns the Treasury security but will pledge it to us
    to secure its obligations under the purchase contract.</TD>
</TR>

</TABLE>

<P align="left">
<B>Senior Notes</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Senior notes have the terms described below:

<P align="center">
<B><U>Senior Note</U></B>

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

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

<TR>
    <TD width="2%"></TD>
    <TD width="96%"></TD>
    <TD width="2%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    (Owed to Holder of</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    Senior Note by Monday</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    Finance SA)</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<DIV align="center">

</DIV>

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

<TR>
    <TD width="2%"></TD>
    <TD width="96%"></TD>
    <TD width="2%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% per annum</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    paid quarterly</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    guaranteed by Monday SCA</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<DIV align="center">

</DIV>

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

<TR>
    <TD width="2%"></TD>
    <TD width="96%"></TD>
    <TD width="2%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    (reset in connection with</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    remarketing and paid</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    semi-annually thereafter)</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<DIV align="center">
________________________________________________________________________________
<BR>
 <BR>
 <BR>
 <HR size="1" width="100%" align="center" noshade>
</DIV>

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

<TR>
    <TD width="2%"></TD>
    <TD width="96%"></TD>
    <TD width="2%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    (Owed to Holder of</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    Senior Note by Monday</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    Finance SA)</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<DIV align="center">

</DIV>

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

<TR>
    <TD width="2%"></TD>
    <TD width="96%"></TD>
    <TD width="2%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    $25 at Maturity</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    (end of year&nbsp;6)</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    guaranteed by Monday SCA</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<DIV align="left">
________________________________________________________________________________
<BR>
</DIV>

<P align="center"><FONT size="2">22
</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">
<B>Transforming PEPS Units into Treasury PEPS Units and Senior
Notes</B>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD> &#149;</TD>
    <TD align="left">
    To create a Treasury PEPS Unit, the investor separates a PEPS
    Unit into its components&#151;the purchase contract and the
    senior note&#151;and then combines the purchase contract with a
    zero-coupon Treasury security that matures concurrently with the
    maturity of the purchase contract.</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD> &#149;</TD>
    <TD align="left">
    The investor owns the Treasury security but will pledge it to us
    to secure its obligations under the purchase contract.</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD> &#149;</TD>
    <TD align="left">
    The Treasury security together with the purchase contract
    constitutes a Treasury PEPS Unit. The senior note, which is no
    longer a component of the PEPS Unit, is tradable as a separate
    security.</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD> &#149;</TD>
    <TD align="left">
    If the Treasury portfolio has replaced the senior notes as a
    component of the PEPS Units, and a holder of a PEPS Unit creates
    a Treasury PEPS Unit, the applicable ownership interest in the
    Treasury portfolio, rather than the senior notes, will be
    released to such holder.</TD>
</TR>

</TABLE>

<P align="center">
<IMG src="y61876y6187603.gif" alt="PEPS Unit">
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD> &#149;</TD>
    <TD align="left">
    The investor can also transform Treasury PEPS Units and senior
    notes into PEPS Units. Following that transformation, the
    Treasury security, which is no longer a component of the
    Treasury PEPS Unit, is tradable as a separate security.</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD> &#149;</TD>
    <TD align="left">
    The transformation of PEPS Units into Treasury PEPS Units and
    senior notes, and the transformation of Treasury PEPS Units and
    senior notes into PEPS Units, requires certain minimum amounts
    of securities, as more fully described in this prospectus.</TD>
</TR>

</TABLE>

<P align="left">
<B>Concurrent Class&nbsp;A Common Shares Offering</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The closing of this offering of PEPS Units is conditioned upon
the successful closing of the concurrent initial public offering
of our Class&nbsp;A common shares, which are offered pursuant to
a separate prospectus. Unless the underwriters exercise their
over-allotment option, we will not receive any proceeds from the
concurrent initial public offering of our Class&nbsp;A common
shares, which are being sold by firms in the
PricewaterhouseCoopers network and partners and shareholders of
some of those firms.

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

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

<P align="left">
<B>Assumptions</B>

<P align="left">
Unless otherwise indicated, all information contained in this
prospectus:
<P>

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

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

<TR valign="top">
    <TD> &#149;</TD>
    <TD align="left">
    assumes no exercise of the underwriters&#146; option in the
    concurrent Class&nbsp;A common shares offering to purchase
    approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    Class&nbsp;A common shares to cover over-allotments;</TD>
</TR>

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

<TR valign="top">
    <TD> &#149;</TD>
    <TD align="left">
    does not take into account
    approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    Class&nbsp;A common shares reserved for issuance under benefit
    plans for our partners, other employees and directors, including
    approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    restricted Class&nbsp;A common shares and Class&nbsp;A common
    shares underlying restricted share units granted to our partners
    and
    approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    Class&nbsp;A common shares issuable upon exercise of options to
    be granted to our directors and most of our employees upon the
    closing of this offering; and</TD>
</TR>

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

<TR valign="top">
    <TD> &#149;</TD>
    <TD align="left">
    does not take into account
    approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    Class&nbsp;A common shares, or up
    to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
    Class&nbsp;A common shares in total if the underwriters for this
    offering exercise their option to purchase additional PEPS Units
    in full, reserved for issuance upon the settlement of the
    purchase contracts.</TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">24
</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B>SUMMARY HISTORICAL AND PRO FORMA COMBINED FINANCIAL DATA</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following tables set forth summary historical and pro forma
combined financial data for Monday Ltd and Monday SCA derived
from our audited combined financial statements at June 30, 2000
and 2001, and for fiscal years ended June&nbsp;30, 1999, 2000
and 2001, our unaudited combined balance sheet at March&nbsp;31,
2002, our unaudited combined income statements before partner
distributions and benefits for the nine months ended
March&nbsp;31, 2001 and 2002, and the unaudited pro forma
combined financial statements of Monday Ltd and Monday SCA, in
each case, together with the accompanying notes to these
statements. We have included unaudited historical summary and
pro forma combined financial data for both Monday Ltd and Monday
SCA because our PEPS Units are comprised of purchase contracts
issued by Monday Ltd and senior notes issued by Monday Finance
SA, a wholly owned indirect subsidiary of Monday SCA. Monday SCA
is guaranteeing the Monday Finance SA senior notes. The
principal difference between the historical summary and pro
forma combined financial data for Monday Ltd and Monday SCA
relates to the minority interest of some of our partners in
Monday SCA. The tables also include net revenues, which is
revenues after deducting reimbursables and subcontractor costs,
for these periods. Our fiscal year ends on June&nbsp;30.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Our business will be comprised of the management consulting and
technology services businesses to be transferred to us
immediately prior to the closing of the concurrent Class&nbsp;A
common shares offering by some of the firms in the
PricewaterhouseCoopers network of firms, or by the partners or
shareholders of some of these firms, as part of our separation
from the network. The combined financial statements and notes to
these statements, however, contain historical financial results
and assets and liabilities for management consulting and
technology services businesses of firms in the
PricewaterhouseCoopers network that are not being transferred to
us as part of our separation. Accordingly, the historical
financial information set forth below includes the financial
results and assets and liabilities of businesses that Monday Ltd
or Monday SCA, as the case may be, will not own after our
separation, which financial results and assets and liabilities
are not material to Monday Ltd or Monday SCA, as the case may
be. Please see &#147;Arrangements with the
PricewaterhouseCoopers Network of Firms&#148; for a description
of our separation and the unaudited pro forma combined financial
statements of Monday Ltd and Monday SCA and notes to these
statements for a pro forma presentation of the financial results
of our business, which excludes the financial results and assets
and liabilities of management consulting and technology services
businesses that we will not own after our separation.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The historical financial results and assets and liabilities of
the businesses being transferred to Monday Ltd and Monday SCA as
part of our separation contained in our combined financial
statements do not reflect what Monday Ltd&#146;s and Monday
SCA&#146;s financial results and assets and liabilities in the
future as separate public companies will be or what their
financial results and assets and liabilities in the future as
separate public companies would have been had they been separate
public companies with these businesses during the periods
presented for various reasons. For example, compensation for our
partners was not reflected in combined income statements before
partner distributions and benefits as an expense. Please see the
unaudited pro forma combined financial statements of Monday Ltd
and Monday SCA and notes to these statements,
&#147;Management&#146;s Discussion and Analysis of Financial
Condition and Results of Operations&#148; and our combined
financial statements and notes to these statements for a more
detailed discussion of these reasons.

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

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The unaudited pro forma combined income statement data for the
year ended June&nbsp;30, 2001, and the nine months ended
March&nbsp;31, 2001 and 2002, was prepared as if our separation
and the related transactions described below, including the
concurrent offerings, had occurred as of July&nbsp;1, 2000. The
unaudited pro forma combined balance sheet data was prepared as
if our separation and the related transactions had occurred as
of March&nbsp;31, 2002. The unaudited pro forma combined
financial statements give pro forma effect to a number of items,
including the following:
<P>

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

<TR>
    <TD width="10%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;</TD>
    <TD align="left">
    our separation and the related transactions described under
    &#147;Arrangements with the PricewaterhouseCoopers Network of
    Firms,&#148;</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;</TD>
    <TD align="left">
    the retention by the PricewaterhouseCoopers network of firms of
    debt included in &#147;Amounts due to the PwC Network&#148; in
    the combined financial statements,</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;</TD>
    <TD align="left">
    compensation and benefits under our new compensation structure
    that we would have paid to partners had we been a corporation in
    the historical periods,</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;</TD>
    <TD align="left">
    provision for corporate income taxes,</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;</TD>
    <TD align="left">
    the exclusion of the financial results and assets and
    liabilities of the management consulting and technology services
    businesses of PricewaterhouseCoopers firms that are not being
    transferred to us as part of our separation, which are not
    material to us, and</TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;</TD>
    <TD align="left">
    the concurrent offerings.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The pro forma adjustments are based upon available information
and assumptions that we believe are reasonable. Please see the
notes to the unaudited pro forma combined financial statements
of Monday Ltd and Monday SCA for a more detailed discussion of
how the adjustments described above are presented in the
unaudited pro forma combined financial statements of Monday Ltd
and Monday SCA. The unaudited pro forma combined income
statements do not give effect to one-time events directly
attributable to our transition to a corporate structure and
related transactions because of their nonrecurring nature. This
summary pro forma combined financial data is illustrative only
and does not purport to represent what the financial position
and results of operations of Monday Ltd and Monday SCA actually
would have been had our separation and related transactions
occurred on the dates indicated or what their future performance
as separate public companies will be.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
You should read the summary historical and pro forma combined
financial data in conjunction with &#147;Management&#146;s
Discussion and Analysis of Financial Condition and Results of
Operations,&#148; the unaudited pro forma combined financial
statements of Monday Ltd and Monday SCA and notes to these
statements and our combined financial statements and notes to
these statements.

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

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

<P align="center">
<B>MONDAY LTD</B>

<DIV align="center">
<B>SUMMARY HISTORICAL AND PRO FORMA COMBINED FINANCIAL DATA</B>
</DIV>

<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="26%"><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="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="3%"><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="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="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pro Forma</FONT></B></TD>
    <TD></TD>
    <TD colspan="7"></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="11" align="center" nowrap><B><FONT size="1">Historical</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">as adjusted</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Historical</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">as adjusted</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="11" 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="7" 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>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Nine Months</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Nine Months</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Year Ended</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Ended</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Ended</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">Year Ended June 30,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">June 30,</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">March&nbsp;31,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">March&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="11" 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="7" 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="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">2001</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(3)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</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>
    <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="3"></TD>
    <TD></TD>
    <TD colspan="27"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="27" 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="1">Income Statement 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>
    <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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">6,230,609</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">7,130,959</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">7,481,003</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><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"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,637,753</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,005,260</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><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&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="1">Cost of services(1)
    </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">2,964,870</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">3,501,153</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">3,825,639</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">2,891,832</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">2,524,357</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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Reimbursables and subcontractor costs
    </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">1,212,798</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">1,341,290</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">1,516,429</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">1,141,532</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">1,041,011</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 colspan="3"><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>
    <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><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Total cost of services(1)
    </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">4,177,668</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">4,842,443</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">5,342,068</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><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">4,033,364</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">3,565,368</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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Selling, general and administrative expenses(1)
    </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">1,408,261</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">1,595,085</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">1,586,126</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">1,157,117</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">965,839</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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Goodwill 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">46,946</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">54,911</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">57,007</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">42,995</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">44,817</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 colspan="3"><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>
    <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><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Operating income(1)
    </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">597,734</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">638,520</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">495,802</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><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">404,277</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">429,236</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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Interest income
    </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">2,816</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">1,918</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">2,553</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">1,914</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">4,544</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 colspan="3" 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">(34,816</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">(47,918</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">(58,553</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><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">(44,914</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">(33,616</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><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&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="1">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">&#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">11,619</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">(15,618</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><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">(7,910</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">98</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 colspan="3"><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>
    <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><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Income before partner distributions and benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">565,734</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">604,139</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">424,184</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">353,367</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">400,262</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 colspan="3"><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><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="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><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&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="1">Income before income taxes
    </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>
    <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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Provision for income tax
    </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>
    <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 colspan="3"><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 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><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="left"><HR size="1" noshade></TD>
    <TD><FONT size="1">&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="1">Income (loss) before minority interest
    </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>
    <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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Minority interest
    </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>
    <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 colspan="3"><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 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><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="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><FONT size="1">&nbsp;</FONT></TD>
    <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><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 align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><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 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><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="left"><HR size="4" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Earnings per share data:
    </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>
    <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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Earnings per share:
    </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>
    <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="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><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 align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><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 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><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="left"><HR size="4" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <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><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 align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><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 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><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="left"><HR size="4" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>

</TR>

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

<TR>
    <TD colspan="3"><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 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><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="left"><HR size="4" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>

</TR>

<TR>
    <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><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>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3"><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 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><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="left"><HR size="4" noshade></TD>
    <TD><FONT size="1">&nbsp;</FONT></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="1">Other 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>
    <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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Net revenues(2)
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,017,811</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,789,669</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,964,574</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><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"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,496,221</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,964,249</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><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

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

<TR>
    <TD width="53%"><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>
    <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="11"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pro Forma</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">Historical</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">as adjusted</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11" 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="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">As of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As of</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">June 30,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">March&nbsp;31,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">March&nbsp;31,</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><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="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">2002</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></TD>
    <TD></TD>
    <TD colspan="15"></TD>
</TR>

<TR>
    <TD></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 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>
</TR>

<TR>
    <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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">74,352</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">110,204</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">115,193</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Working 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">418,527</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">315,217</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">252,083</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">Goodwill, 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">214,584</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">151,063</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">117,908</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 valign="bottom" bgcolor="#EEEEEE">
    <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">2,199,024</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,988,499</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,807,168</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">Amounts due to the PwC Network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,085,443</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,019,051</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">891,505</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">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">219,357</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">165,709</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">132,405</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">PwC Network investment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">567,218</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">503,034</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">429,255</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">Shareholders&#146; 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">&#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>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="15%" align="left" noshade>
</DIV>
<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">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Other than the &#147;Pro Forma as adjusted&#148;
    columns, excludes payments for partner distributions and
    benefits.
    </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">Net revenues are revenues after deducting
    reimbursables and subcontractor costs.
    </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">As of July&nbsp;1, 2001, new arrangements were
    established for sharing cost between the various lines of
    business in the PricewaterhouseCoopers network of firms. See
    Note 4 to our unaudited financial statements for the period
    ended March&nbsp;31, 2002.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">27
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B>MONDAY SCA</B>

<P align="center">
<B>SUMMARY HISTORICAL AND PRO FORMA COMBINED FINANCIAL DATA</B>

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

<TR>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="30%"><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="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="3%"><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="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="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="2%"><FONT size="1">&nbsp;</FONT></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">Pro Forma</FONT></B></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pro Forma</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">Historical</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">as adjusted</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Historical</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">as adjusted</FONT></B></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><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><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Nine Months</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Nine Months</FONT></B></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">Year Ended</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Ended</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Ended</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">Year Ended June 30,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">June 30,</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">March&nbsp;31,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">March&nbsp;31,</FONT></B></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><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><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">2001</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(3)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</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>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><B><FONT size="1">(in thousands, except per share data and ratio)</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">Income Statement 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>
    <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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">6,230,609</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">7,130,959</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">7,481,003</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><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"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,637,753</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,005,260</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><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&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="1">Cost of services(1)
    </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">2,964,870</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">3,501,153</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">3,825,639</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">2,891,832</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">2,524,357</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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Reimbursables and subcontractor costs
    </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">1,212,798</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">1,341,290</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">1,516,429</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">1,141,532</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">1,041,011</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 colspan="2"><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>
    <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 align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Total cost of services(1)
    </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">4,177,668</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">4,842,443</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">5,342,068</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><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">4,033,364</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">3,565,368</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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Selling, general and administrative expenses(1)
    </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">1,408,261</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">1,595,085</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">1,586,126</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">1,157,117</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">965,839</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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Goodwill 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">46,946</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">54,911</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">57,007</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">42,995</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">44,817</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 colspan="2"><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>
    <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 align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Operating income(1)
    </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">597,734</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">638,520</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">495,802</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><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">404,277</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">429,236</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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Interest income
    </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">2,816</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">1,918</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">2,553</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">1,914</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">4,544</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 colspan="2" 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">(34,816</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">(47,918</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">(58,553</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><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">(44,914</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">(33,616</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><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&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="1">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">&#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">11,619</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">(15,618</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><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">(7,910</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">98</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 colspan="2"><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>
    <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 align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Income before partner distributions and benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">565,734</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">604,139</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">424,184</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">353,367</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">400,262</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 colspan="2"><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><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="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><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&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="1">Income before income taxes
    </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>
    <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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Provision for income tax
    </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>
    <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 colspan="2"><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 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><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="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 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><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 align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

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

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="1">Other 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>
    <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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Net revenues(2)
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,017,811</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,789,669</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,964,574</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><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"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,496,221</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">3,964,249</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><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Ratio of earnings to fixed charges(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">8.03</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">7.06</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">4.95</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">5.31</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">6.51</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>

</TABLE>
</CENTER>

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

<TR>
    <TD width="53%"><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>
    <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="11"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pro Forma</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">Historical</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">as adjusted</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11" 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="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">As of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As of</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As of</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">June 30,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">March&nbsp;31,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">March&nbsp;31,</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><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="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">2002</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></TD>
    <TD></TD>
    <TD colspan="15"></TD>
</TR>

<TR>
    <TD></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 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>
</TR>

<TR>
    <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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">74,352</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">110,204</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">115,193</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Working 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">418,527</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">315,217</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">252,083</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">Goodwill, 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">214,584</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">151,063</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">117,908</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 valign="bottom" bgcolor="#EEEEEE">
    <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">2,199,024</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,988,499</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,807,168</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">Amounts due to the PwC Network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,085,443</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,019,051</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">891,505</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">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">219,357</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">165,709</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">132,405</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">PwC Network investment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">567,218</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">503,034</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">429,255</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">Shareholders&#146; 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">&#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>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="15%" align="left" noshade>
</DIV>
<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">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Other than the &#147;Pro Forma as adjusted&#148;
    columns, excludes payments for partner distributions and
    benefits.
    </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">Net revenues are revenues after deducting
    reimbursables and subcontractor costs.
    </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">As of July&nbsp;1, 2001, new arrangements were
    established for sharing cost between the various lines of
    business in the PricewaterhouseCoopers network of firms. See
    Note 4 to our unaudited financial statements for the period
    ended March&nbsp;31, 2002.
    </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">For purposes of calculating ratio of earnings to
    fixed charges, (i)&nbsp;earnings for the nine months ended
    March&nbsp;31, 2000 and 2001 and the fiscal years ended
    June&nbsp;30, 1999, 2000 and 2001 represent income before
    partner distributions and benefits and income taxes,
    (ii)&nbsp;earnings on a pro forma basis for the nine months
    ended March&nbsp;31, 2002 and the fiscal year ended
    June&nbsp;30, 2001 represent income before income taxes, and
    (iii)&nbsp;fixed charges represent interest expense and such
    portion of rental expenses which represents an appropriate
    interest factor.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">28
</FONT>
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<!-- link1 "RISK FACTORS" -->
<DIV align="left"><A NAME="003"></A></DIV>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">You should carefully consider the following risk
factors and all the other information contained in this
prospectus before investing in the PEPS Units. The trading price
of the PEPS Units, the Treasury PEPS Units, our Class&nbsp;A
common shares and the senior notes, could decline due to any of
these risks, and you may lose all or part of your investment.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Our revenues have been declining and are
expected to continue to decline through at least part of fiscal
year 2003, and our separation from the PricewaterhouseCoopers
network of firms may not prevent our revenues from continuing to
decline.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If we do not successfully maintain or, in some
cases, reestablish relationships with our clients that have
limited our services or denied us opportunities to bid for new
engagements because they are audit clients of firms in the
PricewaterhouseCoopers network, our separation may not result in
an increase in revenues. Most of these audit clients are using
our competitors to perform the services that we were not allowed
to perform or for which we were not allowed to bid. Accordingly,
we generally will not be able to regain these lost engagements
or gain any additional, or add-on, work relating to these lost
engagements. We cannot assure you that after the closing of the
concurrent offerings we will be able to successfully obtain new
engagements from these clients. The more time that passes during
which these independence-related issues continue to constrain
our business, the more that the quality of our relationships
with these clients will deteriorate. In addition, opportunities
to bid for engagements with these clients after the closing of
the concurrent offerings will depend on our clients&#146; budget
cycles and involve varying lead times, depending on the industry
sector and the service offering involved.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Furthermore, some clients have informed us that
they will not view us as being separate from the
PricewaterhouseCoopers network until the PricewaterhouseCoopers
firms fully liquidate their ownership in us and our
subsidiaries. Accordingly, if the PricewaterhouseCoopers firms
and their partners do not dispose of all of their equity in us
and our subsidiaries, we expect to continue to experience
negative effects on our business from independence-related
issues even though the SEC may have issued a no-action letter
stating that they will not take any action to attribute our
business activities to the PricewaterhouseCoopers firms so long
as specified conditions are met. We cannot predict to what
extent this continuing ownership, if any, would affect us.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Even if we are successful in maintaining or, in
some cases, reestablishing our relationships with most of these
clients, we expect our net revenues to decline in the last
quarter of fiscal year 2002 and at least the first quarter of
fiscal year 2003 as compared to the sequentially prior quarter.
In addition, we expect our net revenues to be lower, on a year
over year basis, for at least a few quarters after the closing
of the concurrent offerings. Because our revenues in any fiscal
year are dependent in part on bookings made during previous
fiscal years, we expect to experience the negative effects of
independence-related issues on our revenues beyond fiscal year
2003. Bookings are the amount we expect to realize in revenues
after deducting reimburseables and subcontracting costs, which
we refer to as net revenues, over the life of an engagement for
which we have entered into a contract with our client.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, while we believe that
independence-related issues are a significant reason for our
declining revenues, with the greatest impact being in our most
recent fiscal quarter ended March&nbsp;31, 2002, we believe that
the effects of the global economic downturn described below have
been more significant contributing factors to the overall
decline in our revenues through March&nbsp;31, 2002. In
addition, we are undertaking a comprehensive review of our
operations around the world. As part of the restructuring plan
that will result from this review, we expect to reduce the
number of our partners and other senior staff. Although we
expect to focus our restructuring efforts on administrative and
other non-client functions, we also will decrease the number of
partners and other senior staff with client responsibilities,
which may adversely affect our ability to generate new
engagements. Accordingly, our separation alone may not prevent
our revenues from continuing to decline. We also have described
below other risks related to our business and our separation
that may cause
</FONT>

<P align="center"><FONT size="2">29
</FONT>
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<DIV align="left">
<FONT size="2">our revenues to continue to decline. Our
profitability will decline if our revenues decline and we are
unable to adequately reduce our costs.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Please see &#147;Auditor Independence Rules, the
Enron Situation and the Proposed SEC No-Action Letter&#148; for
a general description of the laws, rules and regulations
regarding auditor independence and see &#147;Management&#146;s
Discussion and Analysis of Financial Condition and Results of
Operations&#151; Overview&#151; Auditor Independence Rules, the
Enron Situation and the Impact on Our Business&#148; for a more
detailed description of these rules and the Enron situation and
their impact on our business, including our bookings and
historical and expected revenues.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Because our fees and our ability to obtain
new engagements are affected by economic conditions, the current
economic downturn and future economic downturns may cause our
revenues and profitability to decline.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our fees and our ability to obtain new
engagements depend on the level of business activity of our
clients, which in turn is affected by economic conditions. We
cannot predict the impact that the current global economic
downturn will have on our future revenues nor can we predict
when economic conditions will improve. Our businesses in the
United States, the United Kingdom and Germany historically have
provided a substantial part of our revenues and income before
partner distributions and benefits, which means that our
revenues and profitability are particularly affected by economic
conditions in these three countries. During an economic
downturn, our clients and potential clients often reduce or
defer existing contracts and delay entering into new
engagements. In general, companies also reduce the amount of
spending on information technology products and services during
difficult economic times, resulting in limited implementations
of new technology and smaller engagements. Because there are
fewer engagements in a downturn, competition usually increases
and fees generally decline as competitors, particularly
companies with significant financial resources, decrease rates
to maintain or increase their market share in our industry. Our
gross margin, which is our revenues less our cost of services
including reimbursables and subcontractor costs, also may
decline in an economic downturn due to lower utilization of our
client service personnel, which means fewer billable hours per
employee, and pressure on the rates we charge. A decline in
gross margin typically causes our profitability to decline.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During fiscal year 2001, we began experiencing a
significant reduction in the demand for our management
consulting and technology services and increased competition for
engagements, which we believe principally is the result of the
effects of the general downturn in the United States and
worldwide economies. This reduction in demand has continued into
fiscal year 2002. Please see &#147;Management&#146;s Discussion
and Analysis of Financial Condition and Results of
Operations&#151;Overview&#151;Recent Trends in Our
Business&#148; and &#147;Management&#146;s Discussion and
Analysis of Financial Condition and Results of
Operations&#151;Results of Operations&#148; for a discussion of
the financial impact of the global economic downturn on our
revenues and profitability in fiscal years 2001 and 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Because we do not currently have the skills
and capabilities to fully implement our growth strategy to
expand our application management and business process
management services, we may not be successful in implementing
this strategy, which may adversely affect our profitability and
cause us to be at a competitive disadvantage.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Although we have been providing application
management and business process management services since 1991
and 1995, respectively, we have limited experience in providing
these types of outsourcing services to clients on the scale and
in the industries and solution areas contemplated by our growth
strategy. Accordingly, we must expand and build our internal
organization significantly to achieve our growth strategy. There
are well established competitors providing these services that
have greater financial resources than we do. To successfully
build these services, we will need to hire new partners and
client service staff who have skills and capabilities that are
different than the skills and capabilities of most of our
current partners and client service staff. Accordingly, we may
not be successful in implementing our strategy to grow these
services, which may adversely affect our profitability and may
cause us to be at a competitive disadvantage relative to some of
our largest competitors. In addition, our gross margin may
decline as a result of the lower margins that are customary in
the outsourcing industry or actions we take to grow market
share. Our application management services are ongoing
maintenance and development services for software applications
used by
</FONT>

<P align="center"><FONT size="2">30
</FONT>

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<DIV align="left">
<FONT size="2">clients, such as finance and accounting
applications that control accounts payable, accounts receivable,
inventory tracking and general ledger processing functions. Our
business process management services are services provided by us
to our clients in which entire processes, such as accounting and
financial reporting processes, are administered and operated by
us rather than by our clients&#146; staff. Application
management and business process management services are types of
outsourcing services. Historically, our business process
management services have not been operated together with the
other management consulting and technology services businesses
being transferred to us as part of our separation.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">If we cannot maintain or expand our
strategic alliances, we may not be able to implement part of our
growth strategy, and our revenues and profitability may
decline.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We generate a substantial portion of our revenues
from engagements that include the implementation of software
developed by companies with which we have non-exclusive
strategic alliances, including Oracle Corporation, PeopleSoft,
Inc., SAP AG and Siebel Systems, Inc. In addition, the growth of
our outsourcing services will depend upon our ability to
continue our existing alliances and enter into new alliances
with information technology outsourcing companies. The loss of
any of these relationships or the inability to enter into new
relationships could adversely affect our ability to realize part
of our growth strategy and could cause our revenues and
profitability to decline. Our alliances, including our strategic
alliances, are relationships with technology companies and
companies in other fields that extend our capabilities and
service offerings. Our alliances generally include one or more
of the following cooperative elements or agreements:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">resale arrangements, in which technology vendors
    provide us with the ability to offer discounts to our clients on
    hardware and software,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">development arrangements, in which we agree to
    jointly develop new capabilities for existing products or
    services,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">joint marketing arrangements,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">access to demonstration software licenses, which
    allow us to use software from our vendors as part of our
    development and marketing activities,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">access to or discounts on training programs and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">arrangements to dedicate client service staff and
    other resources to building the alliance relationship.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Although we have entered into agreements with
most of the companies with which we have strategic alliances,
many aspects of our relationship with those companies are not
subject to written agreements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If one or more of the companies with which we
have strategic alliances terminates our alliance, decides not to
renew or extend our relationship or forms closer or preferred
arrangements with our competitors, we may lose important
benefits, although in the case of hardware or software companies
we would continue to be able to deploy or implement their
products. These benefits include the generation of leads for new
engagements, the opportunity to resell products at attractive
rates and the opportunity to provide input for the development
of new products and services. We could lose these relationships
for a number of reasons, some of which are outside our control,
including business combinations between our competitors and
companies with which we have alliance relationships and the
companies with which we have relationships increasing their
direct competition with us.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Because our engagements often require us to
make initial estimates of required resources and costs which may
not be accurate, some of our engagements may not be
profitable.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our revenues from engagements principally have
been based on the hours incurred in providing services and our
related expenses. We sometimes face client relationship
limitations on our ability to recover for unanticipated effort
and expense, even if the terms of our contracts permit us to
recover for these costs. As part of the expansion of our
outsourcing services, we plan to enter into fixed-price
contracts which may have terms of five years or more. With
fixed-price contracts, our fees are determined at the beginning
of an engagement regardless of the actual time we spend. We face
the risk that our estimates of the time and expense required to
complete the project that we used to set our fees are
inaccurate, resulting in an increased
</FONT>

<P align="center"><FONT size="2">31
</FONT>

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<DIV align="left">
<FONT size="2">risk that these contracts may be unprofitable. As
part of our strategy to grow our outsourcing business, we also
plan to enter into a greater number of contracts where our
revenues are linked to the cost savings realized by our clients.
We previously were limited in our ability to enter into these
types of contracts because of auditor independence-related
constraints. Our increased use of these arrangements may
increase the risk that our engagements are not profitable.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">The management consulting and technology
services industry is highly competitive, and if we do not
compete effectively, our revenues and profitability may
decline.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our industry is highly fragmented and
competitive, and our future success, including our ability to
grow, depends on our ability to compete effectively. We compete
against a number of different types of businesses, as described
in &#147;Business&#151; Competition.&#148; Because we will begin
operating under our new brand upon our separation, most of our
competitors will have greater brand recognition following the
closing of the concurrent offerings, which may harm our ability
to compete. In addition, the competitive conditions in our
industry are changing. If we do not respond appropriately to
these changes, our revenues and profitability may be adversely
affected, and we may not realize part of our growth strategy.
These competitive changes include the changes described below.
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Most of our major competitors that were privately
    owned are now publicly owned or are divisions or subsidiaries of
    publicly owned companies. Accordingly, these competitors now
    have access to financial resources to grow their businesses that
    were unavailable to them several years ago. Some of our
    competitors have greater financial resources than we do, which
    may allow them to offer their services at lower prices to obtain
    greater market share or make greater investments in the
    development of new services.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Outsourcing services are becoming increasingly
    important to many businesses and organizations. We have
    occasionally lost bids in the past due to our limited ability to
    provide outsourcing services. Some of our competitors currently
    have much larger, stronger and more mature outsourcing
    businesses than we do. If we are unable to successfully grow our
    outsourcing services, we will be at a competitive disadvantage
    in obtaining engagements to provide outsourcing services. We
    also may face difficulty in winning new engagements from these
    businesses and organizations for other management consulting and
    technology services because of the competitive advantage a
    provider of outsourcing services has as a result of its role in
    day-to-day operations, greater visibility within the
    organization and potentially greater access to decision makers
    and information about a client&#146;s needs and plans.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Many businesses and organizations are
    implementing preferred provider programs that rationalize, or
    reduce, the number of management consulting and technology
    services providers from which they receive services. To become
    or remain one of these preferred providers, in our experience
    these businesses and organizations generally are requiring
    service providers to provide a broad range of services and
    solutions. If we are unable to provide a broad range of services
    and solutions, including outsourcing services, we may be
    constrained in our ability to become or remain a preferred
    provider of these businesses and organizations. In addition to
    outsourcing services, we need to develop stronger capabilities
    in systems integration services, primarily in Europe, in order
    to compete effectively for engagements that require these
    services, particularly engagements that help transform a
    business and outsourcing engagements.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Technology companies, including some of the
    largest hardware and software companies, increasingly are
    providing technology services to businesses and organizations.
    We have alliance relationships with many of these companies, and
    our relationships with these companies may be adversely affected
    as they increasingly compete with us for client engagements.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">The fallout from the Enron Corporation bankruptcy
    may result in further changes and consolidation in our industry.
    We cannot predict what effect those changes will have on our
    ability to compete.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">32
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">We will face competition from the
PricewaterhouseCoopers firms, which may result in confusion
among our clients and industry vendors and reduce our
revenues.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Although we have entered into noncompetition
arrangements with the PricewaterhouseCoopers firms, following
our separation we will face some competition from these firms.
Pursuant to the terms of these arrangements, these firms will be
able to offer some management consulting and technology
services, such as most human resources services, to any client,
including through existing consulting and advisory services
businesses that are not being transferred to us. In addition,
the PricewaterhouseCoopers firms will be permitted to provide
all management consulting and technology services for clients
that have less than a specified amount of annual revenues in the
particular country where the services will be provided. In our
three largest countries in terms of revenues, the
country-specific revenue amounts are $400&nbsp;million in the
United States, $1&nbsp;billion in the United Kingdom and
$1&nbsp;billion in Germany. These firms, however, will not be
permitted to provide any of the restricted management consulting
and technology services if those clients have $5&nbsp;billion or
more in aggregate annual consolidated worldwide revenues. The
PricewaterhouseCoopers firms will continue to be able to offer
these services under the PricewaterhouseCoopers name. These
firms will not be permitted to use the
&#147;PricewaterhouseCoopers Consulting&#148; or &#147;PwC
Consulting&#148; name, although they will be able to continue to
use names they currently use that include &#147;Consulting&#148;
in the title. This competition may result in confusion among our
clients and industry vendors. In addition, because they will
compete with us, we may receive fewer leads from
PricewaterhouseCoopers firms, even for companies to whom they
are not permitted to provide consulting services, following the
closing of the concurrent offerings.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe that our business in Europe will be
most affected by this competition and the loss of these leads.
We believe that competition from the PricewaterhouseCoopers
firms in Europe may be greater than competition elsewhere in the
world because of the presence of existing consulting and
advisory practices in some of these firms that are not being
transferred to us in connection with our separation. These
practices, which historically have not been operated together
with the businesses being transferred to us, could provide the
PricewaterhouseCoopers firms with a base upon which to increase
competition with us, to the extent permitted by the
noncompetition arrangements. In addition, we believe that leads
for new engagements from other PricewaterhouseCoopers business
units, such as the audit and accounting businesses, have
recently been more important to our business in Europe, as
compared to elsewhere in the world. This is because of the more
fragmented nature of the European market, which we estimate has
resulted in a greater number of engagements with smaller clients
in Europe as compared to elsewhere in the world. Please see
&#147;Arrangements with the PricewaterhouseCoopers Network of
Firms&#148; for a more complete description of the
noncompetition arrangements between us and the
PricewaterhouseCoopers firms and a description of the practices
that are not being transferred to us.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">If we fail to continuously offer innovative
services and keep pace with changes in technology, our fees and
our ability to obtain new engagements will be adversely affected
and our revenues and profitability will decline.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our business depends, in part, on our ability to
anticipate industry, business and technology trends that help
businesses to become more competitive and profitable. To remain
competitive, we will need to continue to develop new services
and ideas for our clients that distinguish us from our
competitors. We also will need to identify new and evolving
technologies that will gain acceptance in the marketplace and
develop alliance relationships with new leaders in technology as
they emerge. If we fail to accomplish these objectives, we may
be unable to compete effectively for new engagements, which may
cause our revenues and profitability to decline. We may also
invest resources in new services that are not competitive or
that do not gain wide acceptance from our clients, which may
cause our profitability to decline. When providing innovative
services that distinguish us from our competitors, we generally
are able to obtain higher margin fees. Over time, however, as
our competitors begin to offer services which we may have
developed or pioneered, we typically experience decreases in the
amount of fees we can charge for these services.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Our profitability will suffer if we are not
able to maintain our fees and utilization rates and control our
costs.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our gross margin, and therefore our
profitability, is primarily a function of hours charged to
clients by our client service staff, the average rate charged
per hour of services provided, the number of our client service
</FONT>

<P align="center"><FONT size="2">33
</FONT>

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<DIV align="left">
<FONT size="2">staff and their related compensation and benefits
and our utilization rate. Our utilization rate is the number of
hours charged to clients by our client service staff divided by
the total available working hours for all our client service
staff. Accordingly, if we are not able to maintain an
appropriate utilization rate for our client service staff or
increase or maintain the fees we charge for our services, we
will not be able to sustain our gross margin and our
profitability will suffer. For example, labor laws in some of
the countries in which we operate constrain our ability to
downsize our workforce if there is less demand for our services,
which would cause our utilization rate to decline in these
countries. Our profitability is also a function of our ability
to control our costs and improve our efficiency. Please see
&#147;Management&#146;s Discussion and Analysis of Financial
Condition and Results of Operations&#151; Financial Statement
Presentation&#148; for a more detailed discussion of the factors
which affect our fees, utilization rates and costs.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">If we fail to attract, hire and retain
qualified personnel, we may not be able to successfully develop
and market our services or efficiently manage our
business.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our success is largely dependent on our ability
over time to hire and retain large numbers of talented people.
In particular, to implement our growth strategy, over time we
will need to attract and retain additional skilled client
service staff, particularly employees with strong technology
skills. If we are unable to do so, we may not realize our growth
objectives, and we may not be able to maintain or increase our
revenues and profitability. To attract new client service staff
and retain our current client service staff, we may have to
increase our compensation levels in the future, which may reduce
our profitability. We recently have reduced our recruiting
activities and spending and may have difficulty reinstating our
prior level of recruiting activities to hire sufficient numbers
of employees to meet our growth objectives. In the United
States, we also have delayed the start date of new employees and
rescinded offers that were given in 2001 to some undergraduate
and graduate school students, which may adversely affect our
recruiting efforts in the near term. In addition, our voluntary
turnover rate likely will increase in the event that the global
economy improves, resulting in additional demands on our
recruiting resources. In fiscal years 2001 and 2002, we
implemented a number of initiatives, including headcount
reductions, reductions in employee compensation and reductions
in training costs, to control our costs. These initiatives and
other factors, such as the auditor independence-related
constraints under which we will continue to operate until the
closing of the concurrent offerings, have had an adverse affect
on the morale of our client service staff and may adversely
affect retention and recruiting in the future.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">If the price of our Class&nbsp;A common
shares declines or underperforms, our ability to recruit, retain
and motivate our partners and other key employees may be
adversely affected.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with our separation, our partners
will receive our equity, or equity in one or more of our
subsidiaries, in lieu of the interests in the partnerships and
corporations that they currently hold. We also will be granting
restricted share units, stock options and other equity-based
compensation to our partners in light of a reduction in the cash
component of their total target income. In the event that the
price of our Class&nbsp;A common shares declines or
underperforms, we may have difficulty in attracting new partners
and client service staff and retaining our current partners and
client service staff. We cannot assure you that the
noncompetition agreements we will enter into with our partners
will be sufficiently broad to prevent them from leaving us for
our competitors or other opportunities. In addition, we may not
be able to enforce these agreements in some countries. Please
see &#147;Management&#151; Partner Compensation&#148; for a more
detailed description of partner compensation.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Because our client engagements may be
terminated on short notice, we may experience unexpected
declines in revenues and profitability.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">When engagements are cancelled or terminated, we
lose the related revenues and we may face difficulty in
eliminating costs associated with the engagement in a timely
manner, which may reduce our profitability. We face
terminations, cancellations and delays that are the result of
factors outside of our control, such as the financial condition
of our clients or the economic climate generally. For example,
several of our existing engagements were suspended indefinitely
or cancelled following the events of September&nbsp;11, 2001. We
believe that the majority of our contracts can be terminated by
our clients on short notice and without significant penalty. The
advance notice of termination required for contracts of shorter
duration and lower revenues is as
</FONT>

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</FONT>

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<DIV align="left">
<FONT size="2">short as 30&nbsp;days. Longer-term, larger and
more complex contracts generally require a longer notice period
for termination and may include an early termination charge to
be paid to us. In addition, most of our larger engagements are
comprised of various project stages, which provide for a series
of logical termination points if a client decides to abandon or
delay a project or to use a competitor for additional stages of
a project.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Our profitability may decline due to
financial and operational risks inherent in worldwide
operations.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In fiscal year 2001, we derived approximately 52%
of our net revenues from services performed in the United
States, Canada and Mexico and 36% from services performed in
Europe, the Middle East and Africa. We derived approximately 8%
and 2% of our fiscal year 2001 net revenues, respectively, from
services performed in Asia Pacific and in South America and
Central America. Because of our extensive worldwide operations,
we face a number of financial and operational risks that may
hinder our ability to improve profitability, including the
following:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the lack of local recognition of our new brand,
    which will cause us to spend significant amounts of time and
    money to build a brand identity,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the costs of integrating and managing global
    operations,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">difficulties in collecting payments in some
    countries,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">restrictions on the movement of cash and other
    assets,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">differences in, and uncertainties arising from,
    local business culture and practices,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">multiple, and sometimes conflicting, laws and
    regulations, including tax laws,
    </FONT></TD>
</TR>

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

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

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">price controls or restrictions on exchanges of
    foreign currencies and
    </FONT></TD>
</TR>

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

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

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the past we have incurred costs or experienced
disruptions due to the factors described above and expect to do
so in the future. For example, our revenues have fluctuated
based on changes in currency exchange rates. The countries in
which we operate also impose a range of restrictions on our
employment policies that increase our operating costs in some of
these countries relative to others. For example, labor laws in
some of the countries in which we operate may restrict our
ability to enforce the reductions in compensation we expect our
partners to accept in fiscal year 2003.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Because we changed our name on
June&nbsp;10, 2002, our existing and potential clients, industry
vendors, recruiting candidates and investors may not recognize
our new brand, which may cause our revenues and profitability to
decline.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We changed our legal name on June&nbsp;10, 2002,
and will begin operating under our new brand upon our
separation. Because we have previously marketed our business
under the PricewaterhouseCoopers name, our existing and
potential clients, industry vendors and investors generally may
not recognize our new brand. Our name change also may cause
difficulties in recruiting qualified personnel. For example, in
some countries, such as the United Kingdom, we believe the
PricewaterhouseCoopers name is particularly valuable to our
recruiting process. We cannot predict the impact of the change
in trademarks and trade names on our business. We plan to incur
approximately $110&nbsp;million of marketing expenses by the end
of fiscal year 2003 to build a new brand identity. If we fail to
build a strong new brand recognition, our revenues and
profitability may decline.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">If our clients are dissatisfied with our
services, we may face costs to remedy the complaint, legal
liability and damage to our reputation, which could adversely
affect our ability to obtain new engagements.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our reputation is critical to the success of our
business. Because we help clients with complex and important
challenges and opportunities, we must maintain a high degree of
client satisfaction to generate new engagements. Accordingly,
any claim against us involving the quality of our services may
be more damaging
</FONT>

<P align="center"><FONT size="2">35
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<DIV align="left">
<FONT size="2">than similar claims against businesses in other
industries. In the event a client is dissatisfied with our
performance, we usually take action, which may be costly, to
remedy or mitigate the complaint. For example, we have performed
additional or remedial work for clients at discounted rates or
for no fee. In some circumstances, we also have foregone
revenues for work that has been completed. In addition, although
we typically include in our contracts provisions to limit our
exposure to legal claims relating to our services and the
applications we develop, these provisions may not protect us or
may not be enforceable in all cases.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Because our ability to protect our
intellectual property is limited, we could lose valuable assets
and the value of our services could decline, which may cause our
revenues and profitability to decline.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our intellectual property consists primarily of
the building, renewing and sharing of knowledge among our client
service staff, such as our training materials, reusable
methodologies and techniques and expertise developed through our
engagements and other activities. The unauthorized use of our
intellectual property by third parties or the independent
development by third parties of similar intellectual property
could cause the value of our services to decline significantly,
which would likely result in downward pressure on our fees and
loss of opportunities to competitors. If we resort to legal
proceedings to enforce our intellectual property rights, the
proceedings could be burdensome and expensive, and the outcome
would be uncertain. We have only a limited ability to protect
our intellectual property. Our limited protection efforts may be
unsuccessful and unauthorized parties may copy or infringe upon
aspects of our intellectual property. Our competitors also may
independently develop similar methodologies, techniques and
expertise, and we may have no claim against them.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">We may be subject to intellectual property
litigation and infringement claims, which could cause us to
incur significant expenses or prevent us from providing our
services.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We cannot be sure that our services do not
infringe upon the intellectual property rights of others. We
also cannot be sure that the products that we use and implement
at our clients do not infringe upon the intellectual property
rights of others. Any claims or litigation in this area, whether
we ultimately win or lose, could be time-consuming, may injure
our reputation, may result in costly delays or may require us to
enter into economically unfavorable royalty or licensing
arrangements. We also may be prevented from offering important
services to our clients. In our contracts, we often agree to
indemnify our clients for any liability resulting from the
alleged infringements of the intellectual property rights of
third parties. The amount of these indemnities may be greater
than the revenues we receive from a client.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Because Monday Ltd&#146;s chief executive
officer and chief financial officer recently assumed their
current responsibilities, and our other senior executives do not
have experience in managing a public company, we may have
difficulties in successfully operating our
business.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Monday Ltd&#146;s chief executive officer and
chief financial officer recently assumed their current
responsibilities. As a result, the results of our operations
reflected in the financial statements contained in this
prospectus do not reflect their leadership or guidance of our
business. In addition, other than Monday Ltd&#146;s new chief
executive officer and new chief financial officer, our senior
executives do not have experience in operating a public company.
We cannot assure you that the lack of experience operating a
public company or the lack of experience of our top two
executives in managing our business will not cause disruptions
in our operations or communications with the marketplace.
</FONT>

<P align="left">
<B><FONT size="2">Risks that Relate to Our Separation from the
PricewaterhouseCoopers Network of Firms</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">The historical and pro forma combined
financial information in this prospectus may not be
representative of our results as a separate public company and,
therefore, may not permit you to predict our company&#146;s
costs of operations.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our historical financial information is not, and
our pro forma combined financial information may not be,
indicative of our results of operations, financial position and
cash flows as a separate public company, primarily due to the
factors described below.
</FONT>

<P align="center"><FONT size="2">36
</FONT>

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<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">The historical financial information in this
    prospectus does not reflect the added costs that we will incur
    as a separate public company, such as for new systems to operate
    as a separate public company when the transition services
    agreements terminate, nor does it reflect the resulting changes
    that will occur in our capital structure and operations, such as
    changes in how we fund our operations. To the extent some of
    these costs, such as costs to establish an investor relations
    department, are reflected in the unaudited pro forma combined
    financial statements, they are estimates which may differ from
    actual costs.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Because we historically operated through entities
    taxed as partnerships in many countries, including the United
    States, prior to our transition to a corporate structure, we
    have not paid, on a historical basis, a material amount of taxes
    on our earnings at an entity level. In addition, historically we
    have not paid salaries to our partners, who will be our
    employees, from a legal and accounting standpoint, after this
    offering. As a result, in preparing our unaudited pro forma
    combined financial statements we deducted and charged to
    earnings the estimated income taxes based on estimated tax rates
    in jurisdictions in which we operate, which may differ from our
    actual tax rates in the future. We also estimated compensation
    and benefit costs for our partners, which may differ from actual
    costs for various reasons, including our need to hire additional
    client service staff over time to implement parts of our growth
    strategy.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Our historical and pro forma combined financial
    statements in this prospectus reflect allocations of expenses
    among the various firms in the PricewaterhouseCoopers network
    and between our business and the other businesses of these
    firms. These services actually could be more expensive for us in
    the future as a public company than is shown in our historical
    and pro forma combined financial statements. We also may face
    costs associated with the termination of our transition services
    if we request services that require additional investment or
    expenditures by the PricewaterhouseCoopers firms that have not
    been fully reimbursed at the time of termination. In addition,
    we may lose benefits relating to the size of the combined
    PricewaterhouseCoopers firms, such as purchasing power when
    buying products and services from vendors.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Our historical combined financial statements and
    notes to these statements contain historical financial results
    and assets and liabilities for management consulting and
    technology services businesses of firms in the
    PricewaterhouseCoopers network that are not being transferred to
    us as part of our separation.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Please see our unaudited pro forma combined
financial statements, &#147;Management&#146;s Discussion and
Analysis of Financial Condition and Results of Operations&#148;
and our combined financial statements for a more detailed
discussion of the factors set forth above.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Because we have received benefits from our
relationship with the PricewaterhouseCoopers firms in the past,
our separation could adversely affect our revenues and
profitability.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our business historically has benefited from
referrals from the audit, tax and other businesses within the
PricewaterhouseCoopers network. While many parts of our business
are being adversely affected by the auditor independence issues
discussed in this prospectus, the leads we receive from the
audit, tax and other businesses historically have been an
important part of our business. These leads are particularly
important for engagements with smaller clients, many of which
are not publicly traded companies. Following the closing of the
concurrent offerings, the PricewaterhouseCoopers firms and their
partners and shareholders will no longer have the same
incentives to provide us with leads regarding new engagements,
and we will not be able to pay them referral fees as long as
they own any of our equity. We cannot assure you that these
leads will continue following the closing of the concurrent
offerings and, accordingly, our revenues and profitability may
be adversely affected. We believe that our business in Europe
will be most affected by the loss of these leads from the
PricewaterhouseCoopers firms. We believe that leads for new
engagements from other PricewaterhouseCoopers business units,
such as the audit and accounting businesses, have recently been
more important to our business in Europe, as compared to
elsewhere in the world. This is because of the more fragmented
nature of the European market, which we estimate has resulted in
a greater number of engagements with smaller clients in Europe
as compared to elsewhere in the world.
</FONT>

<P align="center"><FONT size="2">37
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Because our business currently is part of
the businesses of separate firms which have their own governance
and management, we may experience difficulty in implementing our
growth strategy as we transition to a corporate
structure.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">From time to time in the past, we have
experienced difficulty in implementing our common business
strategies and standards, including our risk management
practices, and creating a consistent operating model across the
world due to differences in culture and ownership. Prior to our
separation from the PricewaterhouseCoopers network, we have had
to develop our common approaches by reaching consensus among the
firms in the PricewaterhouseCoopers network, particularly the
firms in Europe. Following our separation, we will need to
realign quickly the priorities of our partners so that they act
as employees for the benefit of our company as a whole and not
merely for the benefit of their country or region. Even after
our separation, however, we will need to ensure that our common
business model takes into account the differences that exist in
our business around the world. If we are not able to reconcile
these needs, we may not be able to effectively implement a part
of our growth strategy.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Charges related to a number of nonrecurring
items in fiscal years 2002, 2003 and 2004 will substantially
lower our net income, and this effect in the fiscal quarter
ending September&nbsp;30, 2002, will be particularly
significant.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with our separation and transition
to a corporate structure and restructuring activities, we have
incurred or will incur charges relating to a number of
nonrecurring items during fiscal years 2002, 2003 and 2004.
These include costs relating to our separation, such as transfer
taxes, costs associated with changing and marketing our new name
and costs associated with creating separate systems and
processes. We expect these costs, in the aggregate, to be
between $200&nbsp;million and $300&nbsp;million. We also will
recognize compensation expense in the first quarter of fiscal
year 2003 of approximately $117&nbsp;million from the grant of
restricted share units and the sale of Class&nbsp;A common
shares to our partners. In addition, we expect to record a
charge of approximately $40&nbsp;million in the fourth quarter
of fiscal year 2002 and $60&nbsp;million to $100&nbsp;million in
the first quarter of fiscal year 2003 in connection with
restructuring activities. Please see &#147;Management&#146;s
Discussion and Analysis of Financial Condition and Results of
Operations&#151;Overview&#151;Accounting Matters relating to Our
Separation and Transition to a Public Company&#148; for a more
detailed description of these charges.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Because we will rely on the
PricewaterhouseCoopers firms for important transition services,
we face a number of significant risks.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Following our separation from the
PricewaterhouseCoopers network, we will continue to rely on the
PricewaterhouseCoopers network of firms for many important
services and support functions. We have described the
significant risks we believe may be associated with our
transition services agreements below.
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Some of the services and support functions to be
    provided by the PricewaterhouseCoopers network of firms are
    critical to our ability to manage our business. For example, we
    will rely on these firms to perform important accounting and
    financial information services for us for up to three years
    following the closing of this offering. We also may rely on some
    of these firms for additional financial reporting services to
    assist us in meeting our public disclosure obligations. These
    firms do not operate a single combined financial accounting and
    reporting system. Instead, we will be relying on a large number
    of separate firms to provide us with the information we require
    to fulfill our public disclosure obligations. If the quality or
    timeliness of the services we receive from the
    PricewaterhouseCoopers firms is not satisfactory, we may not be
    able to effectively operate our business and we may face
    difficulty in reporting our financial performance on a timely
    basis, which could adversely affect investor confidence and may
    result in a decrease in the price of our Class&nbsp;A common
    shares.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">There will be significant limitations on the
    liability that firms in the PricewaterhouseCoopers network will
    have in connection with the provision of services under the
    transition services agreements. In general, the maximum
    aggregate liability of a PricewaterhouseCoopers firm will be
    limited to an amount equal to six months of fees payable to the
    PricewaterhouseCoopers firm under the transition services
    agreements signed by the particular PricewaterhouseCoopers firm.
    Our damages from a
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">38
</FONT>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    <FONT size="2">breach of these agreements, however, by the
    PricewaterhouseCoopers firm, could materially exceed its
    liability under these agreements. The PricewaterhouseCoopers
    firms will not have joint and several liability for breaches of
    the agreements, which means that a PricewaterhouseCoopers firm
    will not be responsible for breaches by another
    PricewaterhouseCoopers firm. Accordingly, if a
    PricewaterhouseCoopers firm breaches its agreement to perform
    transition services for us, we may not have an effective means
    to seek remedy or receive adequate compensation for the breach.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Each PricewaterhouseCoopers firm has agreed to
    use commercially reasonable efforts to secure third party
    consents that are needed to provide us with services we have
    historically received. We cannot assure you that these third
    party consents will be secured, and if they are secured, what,
    if any, consent fee will be required by a consenting third
    party. We will bear some or all of any costs, expenses and fees
    required to secure any third party consent. If a third party
    consent necessary to provide us services cannot be secured and
    an alternative supplier cannot be employed, the
    PricewaterhouseCoopers firms may not be able to provide some
    services to us, which could prevent us from effectively
    operating our business.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">We have no history operating as a separate
public company, and we may be unable to make, or may incur
significant costs in making, the changes necessary to operate as
a separate public company.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">With respect to the transition services to be
provided to us by the PricewaterhouseCoopers firms, we will need
to build systems and support functions to perform these services
internally or enter into agreements with others to provide these
services prior to the expiration of the transition services
agreements, which generally have three year terms. The cost to
build these systems and support functions or to acquire these
services from others may be more costly than the cost of
services provided by the PricewaterhouseCoopers network, which
may result in a decline in our profitability. Even if we build
the systems and support functions to perform these services
internally prior to the expiration of the transition services
agreements, our implementation of the new systems and support
functions or the transition of data from the
PricewaterhouseCoopers network systems to our systems may not be
successful, which could adversely affect investor confidence and
may result in a decrease in the price of our Class&nbsp;A common
shares. Please see &#147;Arrangements with the
PricewaterhouseCoopers Network of Firms&#148; for a more
detailed description of the services that will be provided by
the PricewaterhouseCoopers network of firms and the transition
services agreements.
</FONT>

<P align="left">
<B><FONT size="2">Risks That Relate to Ownership of Our
Class&nbsp;A Common Shares Deliverable Upon Settlement of the
Purchase Contracts</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Our quarterly revenues and other financial
results are likely to vary from quarter to quarter in future
periods, which may cause the price of our Class&nbsp;A common
shares to decline.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our quarterly financial results, including
revenues, gross margin and operating income, have varied
significantly in the past and are likely to vary significantly
in the future. For example, during the last seven quarters, our
operating income ranged from $55&nbsp;million for the fiscal
quarter ended September&nbsp;30, 2000, to $226&nbsp;million for
the fiscal quarter ended March&nbsp;31, 2001. The beginning or
ending of multiple large engagements, for example, during a
fiscal quarter could cause our revenues, gross margin and
operating income to vary considerably from one fiscal quarter to
the next. We also experience seasonal variations in our revenues
because we tend to book new engagements at particular times of
the year, such as during the first three months of each calendar
year when our clients&#146; new budgets generally become
available, and because there are fewer available work days in
some quarters as a result of traditional holiday and vacation
patterns. Please see &#147;Management&#146;s Discussion and
Analysis of Financial Condition and Results of Operations&#151;
Quarterly Results of Operations&#148; and &#147;Business&#151;
Business Development and Marketing&#151; Sales Process&#148; for
more information on our quarterly results and the seasonal
variations in our business.
</FONT>

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</FONT>

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<DIV align="left">

</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Because there has not been any public
market for our Class&nbsp;A common shares, the market price and
trading volume of our Class&nbsp;A common shares may be
volatile, and you may not be able to resell your shares at or
above the price you paid or are deemed to have paid upon
settlement of the purchase contract.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Prior to the closing of the concurrent
Class&nbsp;A common shares offering, there has been no trading
market for our Class&nbsp;A common shares. We cannot predict the
extent to which investors&#146; interest will lead to a liquid
trading market or whether the market price of our Class&nbsp;A
common shares will be volatile, and you may have difficulty
reselling your Class&nbsp;A common shares. The price of our
Class&nbsp;A common shares after the concurrent Class&nbsp;A
common shares offering as well as after your receipt of
Class&nbsp;A common shares upon settlement of the purchase
contracts may fluctuate widely, depending upon many factors,
including:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the perceived prospects for the management
    consulting and technology services industry in general,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">differences between our actual financial and
    operating results and those expected by investors,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">changes in the share price of public companies
    with which we compete,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">news about our industry and our competitors,
    </FONT></TD>
</TR>

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">broad market fluctuations.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Class&nbsp;A common shares may trade at
prices significantly below the initial public offering price. In
addition, when the market price of a company&#146;s common
equity drops significantly, stockholders often institute
securities class action lawsuits against the company. A lawsuit
against us could cause us to incur substantial costs and could
divert the time and attention of our management and other
resources.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">The price of our Class&nbsp;A common shares
may decline due to the large number of outstanding shares
eligible for future sale to the public, including any
Class&nbsp;A common shares held by the PricewaterhouseCoopers
firms that must be divested within five years of the concurrent
Class&nbsp;A common shares offering.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Sales of substantial amounts of our Class&nbsp;A
common shares, or the possibility of these sales, may adversely
affect the price of our Class&nbsp;A common shares and may make
it more difficult for us to raise capital through the issuance
of equity securities. If firms in the PricewaterhouseCoopers
network continue to hold our equity following the closing of the
concurrent Class&nbsp;A common shares offering, they will be
required to completely divest themselves of all our Class&nbsp;A
common shares and equity in any of our subsidiaries during the
five year period following the closing of the concurrent
Class&nbsp;A common shares offering. The obligation by the
PricewaterhouseCoopers firms to sell or otherwise dispose of our
Class&nbsp;A common shares may depress the market price for our
Class&nbsp;A common shares. In addition, a substantial number of
shares and units relating to these shares, which will be subject
to transfer restrictions, will be held by our partners after the
closing of the concurrent Class&nbsp;A common shares offering,
including shares issued to our partners in redemption of their
interests in their PricewaterhouseCoopers firms, and shares to
be issued in respect of restricted share units which will be
granted to our partners as part of their compensation for fiscal
year 2003 in connection with the closing of the concurrent
Class&nbsp;A common shares offering. Furthermore, assuming an
offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in the
concurrent Class&nbsp;A common shares offering, we will issue up
to &nbsp;&nbsp;million additional Class&nbsp;A common shares, or
up to &nbsp;&nbsp;million Class&nbsp;A common shares if the
underwriters for this offering exercise their option to acquire
additional PEPS Units, not later
than &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006, to holders of the PEPS Units. Sales of our Class&nbsp;A
common shares by individual PricewaterhouseCoopers partners, by
our partners or by former holders of the PEPS Units in frequent
open market transactions may depress the market price for our
Class&nbsp;A common shares.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Upon the closing of the concurrent Class&nbsp;A
common shares offering and assuming all Class&nbsp;I common
shares of Monday SCA and all exchangeable shares issued by one
of Monday SCA&#146;s subsidiaries have been redeemed or
exchanged on a one-for-one basis into our Class&nbsp;A common
shares, there will be approximately &nbsp;&nbsp;million of our
Class&nbsp;A common shares outstanding, or
approximately &nbsp;&nbsp;million shares if the underwriters
exercise their over-allotment option in full. Of these shares,
approximately &nbsp;&nbsp;million shares sold in the concurrent
Class&nbsp;A common shares offering, or
approximately &nbsp;&nbsp;million shares if the
</FONT>

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</FONT>

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<DIV align="left">
<FONT size="2">underwriters exercise their over-allotment option
in full, will be freely transferable without restriction or
further registration under the Securities Act of 1933. The
remaining approximately &nbsp;&nbsp;million shares, which
includes shares held by or on behalf of our partners and,
possibly, shares held by the PricewaterhouseCoopers firms and
their partners and shareholders, generally will be available for
future sale subject to some limitations on the timing, amount
and method of those sales imposed by regulations promulgated by
the Securities and Exchange Commission. The sale of these shares
is also subject to contractual transfer restrictions. The
Class&nbsp;A common shares issuable to holders of PEPS Units
generally will be freely transferable upon issuance without
restriction or further registration under the Securities Act of
1933.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As part of our separation, we will enter into a
shareholders agreement with each of the PricewaterhouseCoopers
firms receiving our Class&nbsp;A common shares and shares issued
by our subsidiaries. This agreement entitles these shareholders
and, in some circumstances, their partners and shareholders to
demand registration rights which require us to file a
registration statement with the SEC for the resale of shares, if
any, held by them. We also have granted them the right to
participate in some other registered offerings of our
Class&nbsp;A common shares that may occur from time to time.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">We plan to issue a large number of rights
and options to purchase Class&nbsp;A common shares to our
partners and other employees that could dilute the interest of
holders of Class&nbsp;A common shares in us.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Upon the closing of the concurrent Class&nbsp;A
common shares offering we will have
approximately &nbsp;&nbsp;million Class&nbsp;A common shares
available for issuance to our partners and other employees in
connection with grants of restricted Class&nbsp;A common shares,
restricted share units representing Class&nbsp;A common shares
or options under our employee benefits arrangements. At the
closing of the concurrent Class&nbsp;A common shares offering,
we anticipate granting approximately &nbsp;&nbsp;million
restricted Class&nbsp;A common shares and restricted share units
representing Class&nbsp;A common shares to our partners and
options to purchase approximately &nbsp;&nbsp;million
Class&nbsp;A common shares to our directors and most of our
employees.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">We may need additional capital in the
future, which may not be available to us. Raising additional
capital will dilute the ownership of holders of Class&nbsp;A
common shares in us and may cause the market price of our
Class&nbsp;A common shares to fall.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may need to raise additional funds through
public or private debt or equity financings in order to:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">fund working capital needs,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">launch new services and products, such as our
    outsourcing services,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">acquire new businesses or invest in existing
    businesses,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">expand our business into new regions and
    countries or
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">otherwise respond to competitive pressures.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Any additional capital raised through the sale of
equity will dilute the ownership percentage of holders of
Class&nbsp;A common shares in us and may decrease the market
price of our Class&nbsp;A common shares. Furthermore, any
additional financing we may need may not be available on terms
favorable to us, or at all.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, we will use the proceeds of this
offering to fund separation and transaction expenses, to make
payments to some PricewaterhouseCoopers firms in connection with
our separation, to fund our working capital needs and for other
purposes as described in &#147;Use of Proceeds&#148; and
&#147;Management&#146;s Discussion and Analysis of Financial
Condition and Results of Operations&#151; Liquidity and Capital
Resources.&#148;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">The terms of the voting agreement among our
partners and the anti-takeover provisions of our memorandum of
association and bye-laws and our shareholder rights agreement
could delay or prevent a change of control that you may
favor.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our partners will enter into a voting agreement
with each other and us that, among other things, will provide
that a separate, preliminary vote of our partners will be
conducted prior to any vote of our shareholders. The effect of
the voting agreement is that most of our Class&nbsp;A common
shares and our Class&nbsp;X common shares held by our partners
will be voted as a single block. Because our partners will hold
</FONT>

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<DIV align="left">
<FONT size="2">approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of
the aggregate voting power of our Class&nbsp;A common shares and
our Class&nbsp;X common shares,
or &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% if the underwriters&#146;
over-allotment option is exercised in full, following the
closing of the concurrent Class&nbsp;A common shares offering,
the decision of our partners holding our Class&nbsp;A common
shares and our Class&nbsp;X common shares subject to the voting
agreement likely would have a significant effect on any
shareholder vote, including a vote with respect to any offer to
acquire us. Our partners have agreed not to approve any
acquisition transaction unless two-thirds of our partners vote
to approve the transaction.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Provisions of Monday Ltd&#146;s memorandum of
association and bye-laws and Monday Ltd&#146;s shareholder
rights agreement, which will be in effect upon completion of our
separation, also may discourage, delay or prevent a merger or
other change of control that shareholders may consider favorable
or may impede the ability of our shareholders to change our
management. The provisions of our memorandum of association and
bye-laws and our shareholder rights agreement, among other
things, will:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">issue rights, called poison pills, to holders of
    our common shares that will make an acquisition very difficult
    without the approval of our board of directors,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">divide our board of directors into three classes,
    with members of each class to be elected for staggered
    three-year terms,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">limit the right of shareholders to remove
    directors,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">regulate how shareholders may present proposals
    or nominate directors for election at annual meetings of
    stockholders and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">authorize our board of directors to issue
    preferred shares in one or more series, without shareholder
    approval, which may have the effect of making an offer for our
    shares more expensive to the bidder.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Please see &#147;Arrangements with Our
Partners&#151; Monday Ltd Voting Agreement&#148; and
&#147;Description of Share Capital&#148; for a description of
these agreements and provisions.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Bermuda law differs from the laws in effect
in the United States and may afford less protection to
shareholders.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Monday Ltd&#146;s corporate affairs are governed
by the Companies Act 1981 of Bermuda. The Companies Act differs
in some material respects from laws generally applicable to
United States corporations and shareholders, including the
provisions relating to interested directors, mergers and
acquisitions, takeovers, shareholder lawsuits and
indemnification of directors. Generally, the duties of directors
and officers of a Bermuda company are owed to the company only.
Shareholders of Bermuda companies generally do not have rights
to take action against directors or officers of the company and
may only do so in limited circumstances. Specifically, under
Monday Ltd&#146;s bye-laws and as permitted by Bermuda law, each
shareholder has waived any claim or right of action against
Monday Ltd&#146;s directors or officers for any action taken by
directors or officers in the performance of their duties, except
for actions involving fraud or dishonesty. Please see
&#147;Description of Share Capital&#148; for a description of
these restrictions. In addition, the rights of Monday Ltd&#146;s
shareholders and the fiduciary responsibilities of Monday
Ltd&#146;s directors under Bermuda law are not as clearly
established as under statutes or judicial precedent in existence
in jurisdictions in the United States, particularly the State of
Delaware. Therefore, Monday Ltd&#146;s shareholders may have
more difficulty protecting their interests than would
shareholders of a corporation incorporated in a jurisdiction of
the United States.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Potential changes to United States federal
tax and other laws could increase our effective tax rate or
could have other adverse effects on our business.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Legislation has been introduced in the United
States Congress that would reduce or eliminate the tax
advantages of corporate inversion transactions, which typically
involve a United States corporation changing its legal structure
so that it becomes owned by a new parent corporation organized
in a low-tax jurisdiction, such as Bermuda. This legislation, if
enacted, could cause these new parent corporations to be taxed
as United States corporations or could have other adverse
effects intended to deter these transactions. Other legislation
has been introduced that would impose limitations on awarding
government contracts to these companies. Any such legislation
may be enacted with retroactive effect, which may result in the
termination of existing
</FONT>

<P align="center"><FONT size="2">42
</FONT>

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<DIV align="left">
<FONT size="2">contracts. If such legislation is enacted, and is
made applicable to us, our revenues and profitability would
decline.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The formation of our company will be accomplished
by the combination of separately-owned and managed businesses in
the PricewaterhouseCoopers network of firms. Based upon the
allocation of value under the rollup agreements, slightly more
than half of these businesses and their owners have never been
subject to United States income tax laws. In addition, the
United States PricewaterhouseCoopers firm and its partners
should own less than 50% of our company, even before taking into
account sales of our Class&nbsp;A common shares in the
concurrent Class&nbsp;A common shares offering, and should own a
considerably lower percentage of our company following the
closing of the concurrent Class&nbsp;A common shares offering.
Nevertheless, because the formation of our company has some
similarities with corporate inversion transactions, it is
possible that this legislation, if enacted, could be applicable
to the formation of our company, which could result in an
increase in the effective tax rate of our company, result in the
imposition of United States withholding taxes on any dividend
distributions by us to non-United States shareholders, reduce
our revenues from the United States government or have other
adverse effects. If any of the legislation described above were
enacted, or appears likely to be enacted, and would apply to our
company, we may decide to convert to a United States
corporation, as described in &#147;Our Organizational
Structure.&#148;
</FONT>

<P align="left">
<B><FONT size="2">Risks That Relate to this Offering and
Ownership of PEPS Units or Treasury PEPS Units</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">You assume the risk that the market value
of our Class&nbsp;A common shares may decline.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Although as a holder of PEPS Units or Treasury
PEPS Units you will be the beneficial owner of the related
senior notes, applicable ownership interests in the Treasury
portfolio or Treasury securities, as the case may be, you do
have an obligation pursuant to the purchase contract to buy our
Class&nbsp;A common shares. Prior to the purchase contract
settlement date, unless you pay cash to satisfy your obligation
under the purchase contract or the purchase contracts are
terminated due to our bankruptcy, insolvency or reorganization,
either the proceeds derived from the remarketing of the senior
notes or our foreclosure on your pledged senior notes or the
principal of the appropriate applicable ownership interest of
the Treasury portfolio when paid at maturity, in the case of
PEPS Units, or the principal of the related Treasury securities
when paid at maturity, in the case of Treasury PEPS Units, will
automatically be used on your behalf to satisfy your obligation
to purchase a specified number of shares of our Class&nbsp;A
common shares. The market value of the Class&nbsp;A common
shares received by you on the purchase contract settlement date
may not be equal to or greater than the effective price of $25
paid by you for our Class&nbsp;A common shares on the date of
this prospectus. Assuming an offering price in the concurrent
Class&nbsp;A common shares offering of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, which would also be the
reference price, if the applicable market value of the
Class&nbsp;A common shares is less than
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, the aggregate market value of
the Class&nbsp;A common shares issued to you on the purchase
contract settlement date will be less than the effective price
paid by you for such Class&nbsp;A common shares on the date of
this prospectus. Accordingly, you assume the risk that the
market value of the Class&nbsp;A common shares may decline, and
that the decline could be substantial.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">The opportunity for equity appreciation
provided by an investment in the PEPS Units or Treasury PEPS
Units is less than that provided by a direct investment in our
Class&nbsp;A common shares.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Your opportunity for equity appreciation afforded
by investing in the PEPS Units or Treasury PEPS Units is less
than your opportunity for equity appreciation if you directly
invested in our Class&nbsp;A common shares. This opportunity is
less because, assuming an offering price in the concurrent
Class&nbsp;A common shares offering of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, the market value of the
Class&nbsp;A common shares you receive pursuant to a purchase
contract on the purchase contract settlement date, assuming that
the market value is the same as the applicable market value of
the Class&nbsp;A common shares, will only exceed the effective
price of $25 paid by you for such Class&nbsp;A common shares on
the date of this prospectus if the applicable market value of
the Class&nbsp;A common shares exceeds the threshold
appreciation price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
which represents an appreciation of
approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%
over the assumed reference price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;. In this event, you would
receive on the purchase contract settlement date only
approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%
(the percentage equal to $25 divided by the threshold
appreciation
</FONT>

<P align="center"><FONT size="2">43
</FONT>
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<DIV align="left">
<FONT size="2">price) of the Class&nbsp;A common shares that you
would have received if you had made a direct investment in our
Class&nbsp;A common shares on the date of this prospectus.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">The trading prices for the PEPS Units and
Treasury PEPS Units will be directly affected by the trading
price of our Class&nbsp;A common shares.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The trading prices of PEPS Units and Treasury
PEPS Units in the secondary market will be directly affected by
the trading price of our Class&nbsp;A common shares (for which
no trading market exists prior to the closing of the concurrent
Class&nbsp;A common shares offering), the general level of
interest rates and our credit quality. It is impossible to
predict whether the price of the Class&nbsp;A common shares or
interest rates will rise or fall. Trading prices of the
Class&nbsp;A common shares will be influenced by our operating
results and prospects and by economic, financial and other
factors. In addition, general market conditions, including the
level of, and fluctuations in the trading prices of stocks
generally, and sales of substantial amounts of Class&nbsp;A
common shares by us or others in the market after the offering
of the PEPS Units, or the perception that such sales could
occur, could affect the price of our Class&nbsp;A common shares.
See &#147;Risks That Relate to Ownership of Our Class&nbsp;A
Common Shares Deliverable Upon Settlement of the Purchase
Contracts.&#148; Fluctuations in interest rates may give rise to
arbitrage opportunities based upon changes in the relative value
of the Class&nbsp;A common shares underlying the purchase
contracts and of the other components of the PEPS Units. Any
such arbitrage could, in turn, affect the trading prices of the
PEPS Units, Treasury PEPS Units, senior notes and our
Class&nbsp;A common shares.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">If you hold PEPS Units or Treasury PEPS
Units, you will not be entitled to any rights with respect to
our Class&nbsp;A common shares, but you will be subject to all
changes made with respect to our Class&nbsp;A common
shares.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If you hold PEPS Units or Treasury PEPS Units,
you will not be entitled to any rights with respect to our
Class&nbsp;A common shares, including, without limitation,
voting rights or rights to receive any dividends or other
distributions on the Class&nbsp;A common shares, but you will be
subject to all changes affecting the Class&nbsp;A common shares.
You will only be entitled to rights on the Class&nbsp;A common
shares if we deliver Class&nbsp;A common shares pursuant to the
purchase contracts and the applicable record date, if any, for
the exercise of rights occurs after the date such shares are
issued. For example, in the event that an amendment is proposed
to Monday Ltd&#146;s memorandum of association or bye-laws
requiring stockholder approval and the record date for
determining the stockholders of record entitled to vote on the
amendment occurs prior to delivery of the Class&nbsp;A common
shares, you will not be entitled to vote on the amendment,
although you will nevertheless be subject to any changes in the
powers, preferences or special rights of our Class&nbsp;A common
shares.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">We may issue additional Class&nbsp;A common
shares and thereby materially and adversely affect the price of
our Class&nbsp;A common shares.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The number of Class&nbsp;A common shares that you
are entitled to receive under the purchase contracts is subject
to adjustment for certain stock splits and combinations, stock
dividends and certain other actions by us that modify our
capital structure. We will not adjust the number of Class&nbsp;A
common shares that you are to receive for other events,
including offerings of Class&nbsp;A common shares for cash by us
or in connection with acquisitions or sales of our Class&nbsp;A
common shares by our partners or partners or member firms of the
PricewaterhouseCoopers network or issuances of Class&nbsp;A
common shares in exchange for shares of Monday SCA. We are not
restricted from issuing additional Class&nbsp;A common shares
during the term of the purchase contracts and have no obligation
to consider your interests for any reason. Any issuance of
additional Class&nbsp;A common shares or sales of Class&nbsp;A
common shares by our partners or partners or member firms of the
PricewaterhouseCoopers network, may materially and adversely
affect the price of our Class&nbsp;A common shares and, because
of the relationship of the number of shares to be received on
the purchase contract settlement date to the price of the
Class&nbsp;A common shares, may also adversely affect the
trading price of PEPS Units or Treasury PEPS Units.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">The secondary market for the PEPS Units or
Treasury PEPS Units may be illiquid.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">It is not possible to predict how PEPS Units,
Treasury PEPS Units or senior notes will trade in the secondary
market or whether the market will be liquid or illiquid. There
is currently no secondary market for
</FONT>

<P align="center"><FONT size="2">44
</FONT>
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<DIV align="left">
<FONT size="2">either our PEPS Units or our Treasury PEPS Units.
We will apply to list the PEPS Units on the New York Stock
Exchange. We do not have any obligation or current intention to
apply for a separate listing of the Treasury PEPS Units or the
senior notes. There can be no assurance as to the liquidity of
any market that may develop for the PEPS Units, the Treasury
PEPS Units or the senior notes, or of your ability to sell these
securities or whether a trading market, if it develops, will
continue. In addition, in the event you or others were to
substitute Treasury securities for senior notes or senior notes
for Treasury securities, thereby converting PEPS Units to
Treasury PEPS Units or Treasury PEPS Units to PEPS Units, as the
case may be, the liquidity of PEPS Units or Treasury PEPS Units
could be adversely affected. There can be no assurance that the
PEPS Units will not be delisted from the New York Stock Exchange
or that trading in the PEPS Units will not be suspended as a
result of the creation of Treasury PEPS Units, which could cause
the number of PEPS Units to fall below the requirement for
listing securities on the New York Stock Exchange.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">You may not be able to exercise your right
to settle a purchase contract prior to the purchase contract
settlement date unless a registration statement under the
Securities Act of 1933 is in effect covering the Class&nbsp;A
common shares deliverable upon early settlement of a purchase
contract.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Your early settlement right is subject to the
condition that, if required under the U.S. federal securities
laws, we have a registration statement under the Securities Act
of 1933 in effect covering the Class&nbsp;A common shares
deliverable upon early settlement of a purchase contract.
Although we have agreed to use our reasonable best efforts to
have such a registration statement in effect if so required by
U.S. federal securities laws, any failure or inability to
maintain an effective registration statement covering such
Class&nbsp;A common shares may prevent or delay an early
settlement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Your rights to the pledged securities will
be subject to our security interest.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Although you will be the beneficial owner of the
related senior notes, applicable ownership interests in the
Treasury portfolio or Treasury securities, as applicable, those
securities will be pledged to the collateral agent to secure
your obligations under the related purchase contracts. Thus,
your rights to the pledged securities will be subject to our
security interest. Therefore, for so long as the related
purchase contract remains in effect, you will not be allowed to
withdraw your pledged securities except by substituting
collateral to create Treasury PEPS Units or recreate PEPS Units,
as described in this prospectus.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">The delivery of senior notes, applicable
ownership interests in the Treasury portfolio and Treasury
securities upon termination of the purchase contract is subject
to potential delay.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The purchase contracts provide for automatic
termination if certain bankruptcy, insolvency or reorganization
events occur with respect to Monday Ltd. If the purchase
contracts terminate upon one of those events, your rights and
obligations under your purchase contract will also terminate,
including your obligation to pay for and your right to receive
our Class&nbsp;A common shares. The pledge agreement provides
that upon termination of the purchase contracts your senior
notes, applicable ownership interests in the Treasury portfolio
and Treasury securities will be released from the pledge
arrangement. Notwithstanding an automatic termination of the
purchase contract, procedural delays may affect the timing of
the delivery to you of your senior notes, applicable ownership
interests in the Treasury portfolio and Treasury securities
being held as collateral under the pledge agreement if we are
the subject of a bankruptcy proceeding.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">The senior notes may be redeemed upon the
occurrence of a tax event or an accounting event.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Monday Finance SA may redeem the senior notes, on
not less than 30&nbsp;days&#146; nor more than 60 days&#146;
prior written notice, in whole but not in part, at any time
before &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2008 if a tax event or an accounting event occurs and continues
under the circumstances described in this prospectus under
&#147;Description of the Senior Notes&#151;Optional
Redemption&#151;Special Events.&#148; If Monday Finance SA
exercises this option, it will redeem the senior notes for cash
at the redemption amount plus overdue interest and additional
amounts, if any, which we refer to as the redemption price. If
the special event redemption occurs before the purchase contract
settlement date, the redemption price payable to you as a holder
of PEPS Units will be distributed to the collateral agent, who
in turn will purchase the Treasury portfolio and will remit the
remainder of the redemption price, if any, to each holder of
senior notes. The applicable ownership interests in the Treasury
portfolio will then be substituted for the senior notes as
collateral to secure your obligations under the related
</FONT>

<P align="center"><FONT size="2">45
</FONT>
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<DIV align="left">
<FONT size="2">purchase contracts. If your senior notes are not
components of PEPS Units, you will receive the redemption price
directly. There can be no assurance as to the impact on the
market price for the PEPS Units if the applicable ownership
percentage of the Treasury portfolio is substituted as
collateral in place of any senior notes so redeemed. A
redemption following a tax event or an accounting event will be
a taxable event to the holders of the senior notes for
U.S.&nbsp;Federal income tax purposes.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">The United States federal income tax
consequences of the purchase, ownership and disposition of the
PEPS Units are unclear.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">No statutory, judicial or administrative
authority directly addresses the treatment of the PEPS Units or
instruments similar to the PEPS Units for United States federal
income tax purposes. As a result, the United States federal
income tax consequences of the purchase, ownership and
disposition of PEPS Units are not entirely clear. For example,
our senior notes may be treated as a &#147;contingent payment
debt instrument&#148; under Treasury regulations. In such case,
the timing, character and treatment for foreign tax credit
purposes of your gain, income or loss with respect to the PEPS
Units could be affected. You should consult your tax adviser
regarding the consequences of purchasing, owning and disposing
of PEPS Units in your particular situation. Please see
&#147;Material Income Tax Consequences&#148; for a more detailed
description of the United States federal income tax consequences
of purchasing, owning and disposing of the PEPS Units.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">The purchase contract agreement will not be
qualified under the Trust Indenture Act and the obligations of
the purchase contract agent are limited.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The purchase contract agreement between us and
the purchase contract agent will not be qualified as an
indenture under the Trust Indenture Act of 1939, and the
purchase contract agent will not be required to qualify as a
trustee under the Trust Indenture Act. Thus, you will not have
the benefit of the protection of the Trust Indenture Act with
respect to the purchase contract agreement or the purchase
contract agent. The protections generally afforded the holder of
a security issued under an indenture that has been qualified
under the Trust Indenture Act include:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">disqualification of the indenture trustee for
    &#147;conflicting interests,&#148; as defined under the Trust
    Indenture Act;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">provisions preventing a trustee that is also a
    creditor of the issuer from improving its own credit position at
    the expense of the security holders immediately prior to or
    after a default under such indenture; and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the requirement that the indenture trustee
    deliver reports at least annually with respect to certain
    matters concerning the indenture trustee and the securities.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">The trading price of the senior notes may
not fully reflect the value of their accrued and unpaid
interest.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The senior notes may trade at a price that does
not fully reflect the value of their accrued but unpaid
interest. If you dispose of your senior notes between record
dates for interest payments, you will be required to include in
gross income the daily portions of original issue discount
through the date of disposition in income as ordinary income,
and to add this amount to your adjusted tax basis in the senior
notes disposed of. To the extent the selling price is less than
your adjusted tax basis, you will recognize a loss.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Monday SCA and Monday Finance SA have no
independent operations and their ability to meet their
respective obligations is dependent on the performance of the
subsidiaries of Monday&nbsp;SCA and their ability to transfer
funds to Monday&nbsp;SCA and Monday
Finance&nbsp;SA.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Monday Finance SA is a finance subsidiary with no
independent operations and no purpose other than to issue the
senior notes. Monday Finance SA intends to lend the proceeds it
receives from this offering to Monday SCA or other entities
controlled by Monday SCA. The ability of Monday Finance SA to
meet its obligations under the senior notes will be dependent on
the receipt of interest and principal payments from these
inter-company loans.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Monday SCA is a holding company that will derive
substantially all of its income from its subsidiaries. The
ability of Monday SCA to meet its obligations under the
guarantee of the senior notes will be dependent
</FONT>

<P align="center"><FONT size="2">46
</FONT>

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<DIV align="left">
<FONT size="2">on the performance of its subsidiaries and on the
receipt of dividends, distributions or other transfers of funds
from its direct and indirect subsidiaries. As a result, the
guarantee of the senior notes will be effectively subordinated
to liabilities of, including any debt and preferred stock which
may be incurred or issued by, those subsidiaries, as well as to
liabilities of Monday&nbsp;SCA secured by assets of
Monday&nbsp;SCA, to the extent of the value of those assets. The
senior note indenture will not limit the ability of Monday SCA
or its subsidiaries to incur or issue debt or issue preferred
stock or prohibit the creation of liens on their respective
assets.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Monday SCA&#146;s subsidiaries are separate and
distinct legal entities. Monday SCA&#146;s subsidiaries, other
than Monday Finance SA, have no obligation to pay any amounts
due on the senior notes or to provide Monday SCA or Monday
Finance SA with funds to pay their respective obligations,
whether by dividends, distributions, loans or other payments,
except to the extent Monday SCA or Monday Finance SA makes loans
to them. In addition, any payment of dividends, distributions,
loans or advances by Monday SCA&#146;s subsidiaries to Monday
SCA or Monday Finance SA, could be subject to statutory or
contractual restrictions. Payments to Monday SCA by its
subsidiaries will also be contingent upon such
subsidiaries&#146; earnings and business considerations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Holders of PEPS Units or senior notes will have
no direct claim against any subsidiary of Monday Ltd other than
Monday SCA and Monday Finance SA. Except to the extent it is a
recognized creditor with claims against one of its subsidiaries,
the right of Monday SCA to receive any assets of any of its
subsidiaries upon their liquidation or reorganization, and
therefore the right of the holders of PEPS Units or senior notes
to participate in those assets, will be effectively subordinated
to the claims of creditors, trade creditors and preferred
stockholders of that subsidiary and any other subsidiary that is
a direct or indirect parent of that subsidiary. In addition,
even if Monday SCA or Monday Finance SA were a creditor of any
of Monday SCA&#146;s subsidiaries, the rights of Monday SCA or
Monday Finance SA, as the case may be, as a creditor would be
subordinate to any liabilities secured by a security interest in
the assets of that subsidiary, to the extent of the value of
these assets, and any indebtedness of that subsidiary senior to
that held by Monday SCA or Monday Finance SA, as the case may be.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Luxembourg insolvency laws to which Monday
Finance SA and Monday SCA may be subject may not be as favorable
to you as U.S. insolvency laws.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Due to the nature of Luxembourg&#146;s insolvency
laws, the ability of the holders of the senior notes to protect
their interests may be more limited than would be the case under
U.S. bankruptcy laws. This is because liabilities in respect of
the senior notes or the guarantees by Monday SCA of the senior
notes in the event of a winding up will be paid after payment of
all secured debts, the cost of liquidation and certain debts of
Monday SCA or Monday Finance SA which are entitled to priority
under Luxembourg law. Such preferential debts include the
following, among others:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">money owed to Luxembourg tax authorities, for
    example, in respect of income tax deducted at source,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">value added tax and certain other taxes and
    duties owed to Luxembourg Customs and Excise,
    </FONT></TD>
</TR>

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">renumeration owed to employees.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If the bankruptcy administrator can show that
&#147;preference&#148; has been given to any person by
defrauding rights of creditors generally regardless of when the
transaction giving fraudulent preference to a party occurred or
if certain &#147;abnormal&#148; transactions have been effected
during a relevant suspect period of six months prior to the date
of bankruptcy, a court has the power, among other things, to
void the preferential or abnormal transaction. This provision of
Luxembourg insolvency law may affect transactions entered into
or payments made by Monday SCA or Monday Finance SA during the
period before liquidation or administration.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Luxembourg law, there is no consolidation
of the assets and liabilities of a group of companies in the
event of bankruptcy. Each individual company thus will be
treated separately by a bankruptcy administrator appointed by
the relevant court. The assets of Monday SCA&#146;s subsidiaries
would be first used to satisfy the debts of each respective
subsidiary and only the remaining surplus, if any, of a
subsidiary would benefit its parent company or the creditors of
its parent company. As a result, your ability to protect your
</FONT>

<P align="center"><FONT size="2">47
</FONT>

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<DIV align="left">
<FONT size="2">interests as a creditor of Monday Finance SA or
Monday SCA may not be as strong under Luxembourg law as it might
be under U.S. law or the laws of other countries.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Monday Ltd is registered in Bermuda and
each of Monday SCA and Monday Finance SA is registered in
Luxembourg, and a large part of their respective assets will be
located outside the United States. As a result, their
securityholders may not be able to enforce civil liability
provisions of the federal or state securities laws of the United
States.</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Monday Ltd is organized under the laws of
Bermuda, and each of Monday SCA and Monday Finance&nbsp;SA is
organized in Luxembourg, and a large part of their respective
assets will be located outside the United States. As a result,
it may not be possible to enforce court judgments obtained in
the United States against Monday Ltd, Monday SCA or Monday
Finance SA based on the civil liability provisions of the
federal or state securities laws of the United States in
Bermuda, Luxembourg or in countries other than the United States
where they will have assets. In addition, there is some doubt as
to whether the courts of Bermuda, Luxembourg and other countries
would recognize or enforce judgments of United States courts
obtained against Monday Ltd, Monday SCA or Monday Finance SA or
their respective directors or officers based on the civil
liabilities provisions of the federal or state securities laws
of the United States or would hear actions against us or those
persons based on those laws. We have been advised by our legal
advisors in Bermuda and Luxembourg that the United States does
not currently have a treaty with Bermuda or Luxembourg,
providing for the reciprocal recognition and enforcement of
judgments in civil and commercial matters. Therefore, a final
judgment for the payment of money rendered by any federal or
state court in the United States based on civil liability,
whether or not based solely on United States federal or state
securities laws, would not automatically be enforceable in
Bermuda or Luxembourg. Similarly, those judgments may not be
enforceable in countries other than the United States.
</FONT>

<P align="center"><FONT size="2">48
</FONT>
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<!-- link1 "DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS" -->
<DIV align="left"><A NAME="004"></A></DIV>

<P align="center">
<B><FONT size="2">DISCLOSURE REGARDING FORWARD-LOOKING
STATEMENTS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This prospectus contains forward-looking
statements that are based on current expectations, estimates,
forecasts and projections about our business and the industry in
which we operate, management&#146;s beliefs and assumptions made
by management. Such statements include, in particular,
statements about our plans, strategies and prospects and
statements about the industry groups and industry sectors we
serve and the solution areas we offer, in each case under the
headings &#147;Summary,&#148; &#147;Risk Factors,&#148;
&#147;Dividend Policy,&#148; &#147;Our Organizational
Structure,&#148; &#147;Auditor Independence Rules, the Enron
Situation and the Proposed SEC No-Action Letter,&#148;
&#147;Unaudited Pro Forma Combined Financial Statements,&#148;
&#147;Management&#146;s Discussion and Analysis of Financial
Condition and Results of Operations,&#148; &#147;Business,&#148;
&#147;Management,&#148; &#147;Arrangements with the
PricewaterhouseCoopers Network of Firms,&#148; &#147;Description
of the PEPS Units,&#148; &#147;Description of the Purchase
Contracts,&#148; &#147;Certain Provisions of the Purchase
Contracts, the Purchase Contract Agreement and the Pledge
Agreement,&#148; &#147;Description of the Senior Notes,&#148;
&#147;Description of Share Capital,&#148; &#147;Shares Eligible
for Future Sale,&#148; &#147;Material Income Tax
Consequences&#148; and &#147;ERISA Considerations.&#148; Words
such as &#147;may,&#148; &#147;will,&#148; &#147;should,&#148;
&#147;could,&#148; &#147;expects,&#148; &#147;anticipates,&#148;
&#147;intends,&#148; &#147;plans,&#148; &#147;believes,&#148;
&#147;seeks,&#148; &#147;estimates,&#148; variations of such
words and similar expressions are intended to identify such
forward looking statements. These statements are not guarantees
of future performance or development and involve risks,
uncertainties and assumptions that are difficult to predict.
Therefore, actual outcomes and results may differ materially
from what is expressed or forecasted in such forward-looking
statements. Except as required under the federal securities laws
and the rules and regulations of the Securities and Exchange
Commission, we do not have any intention or obligation to update
publicly any forward-looking statements after we distribute this
prospectus, whether as a result of new information, future
events or otherwise.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This prospectus also contains information
concerning the management consulting and information technology
services industry that is forward-looking in nature and is based
on a variety of assumptions regarding the ways in which this
industry will develop. This information includes estimated
growth statistics based on the third-party sources cited in this
prospectus. The assumptions underlying the information on our
industry have been derived from information currently available
to us and from third-party sources. If any one or more of these
assumptions are incorrect, the development of our industry,
including estimated growth, may differ from those described in
this prospectus. While we do not know what impact any such
differences may have on our business, our future results of
operations and financial condition and the market price of the
PEPS Units, Treasury PEPS Units, senior notes and our
Class&nbsp;A common shares, may be materially adversely
affected. In addition, we generally cannot assure you that the
forward-looking information regarding our industry, including
estimated growth, will be achieved, whether or not these
assumptions are correct.
</FONT>

<P align="center"><FONT size="2">49
</FONT>

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<!-- link1 "USE OF PROCEEDS" -->
<DIV align="left"><A NAME="005"></A></DIV>

<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 Monday Finance SA will receive
net proceeds from this offering of approximately
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million, or
approximately
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million if the
underwriters for this offering exercise their option to purchase
additional PEPS Units in full. We will not receive any proceeds
from the sale of our Class&nbsp;A common shares in the
concurrent Class&nbsp;A common shares offering, except to the
extent the underwriters exercise their over-allotment option. In
the event the underwriters exercise their over-allotment option
in full, we estimate that we would receive approximately
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million in net
proceeds from the concurrent Class&nbsp;A common shares
offering, which reflects an assumed initial public offering
price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share and also reflects the deduction of the estimated
underwriting discounts and commissions and estimated offering
expenses payable by us and our subsidiaries. We intend to use
any net proceeds we may receive as a result of the concurrent
Class&nbsp;A common shares offering to acquire additional
Class&nbsp;I common shares in Monday SCA.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Monday SCA and Monday Ltd&#146;s other
subsidiaries will use any net proceeds to us of the concurrent
offerings to do the following:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">pay approximately
    $&nbsp;&nbsp;&nbsp;&nbsp;million of separation and transaction
    expenses, such as transfer taxes,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">pay approximately
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million to acquire the
    PricewaterhouseCoopers management consulting and technology
    services business in India and to purchase Monday SCA
    Class&nbsp;I common shares owned by the PricewaterhouseCoopers
    firm is Spain pursuant to the terms of the applicable rollup
    agreements,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">pay approximately $&nbsp;&nbsp;million to
    PricewaterhouseCoopers firms that are not contributing
    management consulting and technology services businesses to us
    in connection with noncompetition agreements we are entering
    into with them and
    </FONT></TD>
</TR>

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

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

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have granted an over-allotment option to the
underwriters at their request. We also have granted an
over-allotment option to the underwriters for the concurrent
Class&nbsp;A common shares offering. Under our current business
plan, we do not require the proceeds from the sale of the PEPS
Units or our Class&nbsp;A common shares that would result from
the exercise of these options. Accordingly, if either option is
exercised by the applicable underwriters, we currently intend to
use the net proceeds generated as a result to repurchase, or
have one of our subsidiaries repurchase, our Class&nbsp;A common
shares from time to time in open market transactions pursuant to
a repurchase plan to be adopted by our board of directors in
accordance with applicable securities laws. Because we will have
significant flexibility in applying the net proceeds of the
over-allotment options, if exercised, you may not agree with the
choices we make in using these proceeds.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pending specific application of the net proceeds,
we intend to invest them in short-term marketable securities.
</FONT>

<P align="center"><FONT size="2">50
</FONT>
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<!-- link1 "DIVIDEND POLICY" -->
<DIV align="left"><A NAME="006"></A></DIV>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We do not anticipate paying any dividends on our
Class&nbsp;A common shares in the foreseeable future. We also do
not anticipate that our principal subsidiary, Monday SCA, will
make any distributions on its Class&nbsp;I common shares or
Class&nbsp;II common shares. We currently intend to retain our
future earnings for use in the operation and expansion of our
business. In addition, we may from time to time enter into
financing agreements that contain financial covenants and
restrictions, some of which may limit our ability or the ability
of Monday SCA to pay dividends or make distributions.
Accordingly, you may need to sell your Class&nbsp;A common
shares received upon settlement of the purchase contracts to
realize a return on your investment. You may not be able to sell
your shares at or above the price you paid or were deemed to pay
for them upon settlement of the purchase contracts.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Any future determination to pay dividends will be
at the discretion of our board of directors and will depend upon
our results of operations, financial condition and ability to
receive distributions from Monday SCA. Any such determination
also will depend upon our cash requirements, prospects and other
factors our board of directors deems relevant. If we pay any
dividends to our shareholders, we will pay them pro rata based
on economic interest. Accordingly, holders of our Class&nbsp;X
common shares, which have a voting interest but no economic
interest, will not share in any dividend. Holders of PEPS Units
or Treasury PEPS Units will not be entitled to receive any
dividend with a record date prior to the date the Class&nbsp;A
common shares are issued upon settlement of the purchase
contracts.
</FONT>

<P align="center"><FONT size="2">51
</FONT>
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<!-- link1 "CAPITALIZATION" -->
<DIV align="left"><A NAME="007"></A></DIV>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following tables set forth cash and cash
equivalents and combined capitalization for Monday Ltd and
Monday&nbsp;SCA as of March&nbsp;31, 2002, on a Historical and
Pro Forma as adjusted basis.
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">The &#147;Historical&#148; column reflects our
    cash and cash equivalents and our capitalization as of
    March&nbsp;31, 2002, on a historical basis.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">The &#147;Pro Forma as adjusted&#148; column
    reflects cash and cash equivalents and capitalization as of
    March&nbsp;31, 2002, and gives effect to the pro forma
    adjustments to our combined financial statements for our
    separation and related transactions, including the concurrent
    offerings. The tables below reflect the receipt from the sale of
    the PEPS Units of estimated net proceeds of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million. We
    will not receive any of the net proceeds from the concurrent
    Class&nbsp;A common shares offering unless the underwriters
    exercise their over-allotment option.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The tables below should be read in conjunction
with &#147;Management&#146;s Discussion and Analysis of
Financial Condition and Results of Operations,&#148; the
unaudited pro forma combined financial statements of Monday Ltd
and Monday&nbsp;SCA and notes to these statements and our
combined financial statements and notes to these statements.
</FONT>

<P align="left">
<B><FONT size="2">Monday Ltd</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="59%"><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="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>
</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</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">March&nbsp;31, 2002</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">Historical</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 share data)</FONT></B></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">(unaudited)</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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">115,193</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</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">Short-term bank borrowings and current portion of
    long-term debt
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">75,714</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long-term debt and 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">132,405</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">Monday Finance&nbsp;SA Senior Notes due 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><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">Minority interests
    </FONT></DIV>
    </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 colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Invested equity/ shareholders&#146; equity
    </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 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">Class&nbsp;A common shares, par value $0.0001 per
    share, 2&nbsp;billion shares
    authorized, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million 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">Class&nbsp;X common shares, par value $0.0001 per
    share, 2&nbsp;billion shares
    authorized, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million 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 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">Restricted share units (relating to Class&nbsp;A
    common shares), &nbsp;&nbsp;&nbsp;&nbsp;million units 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">Restricted Class&nbsp;A common shares
    </FONT></DIV>
    </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 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">Deferred 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">&#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">&#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 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">Retained earnings
    </FONT></DIV>
    </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 colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PwC Network investment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">429,255</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">Accumulated other comprehensive 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">&#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 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 PwC Network investment/ shareholders&#146;
    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">429,255</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">637,374</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</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">52
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On a historical basis, the amount of net
investment in our combined business by firms in the
PricewaterhouseCoopers network was recorded as PwC Network
investment in our combined financial statements.
</FONT>

<P align="left">
<B><FONT size="2">Monday SCA</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="59%"><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="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>
</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</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">March&nbsp;31, 2002</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">Historical</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 share data)</FONT></B></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">(unaudited)</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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">115,193</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</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">Short-term bank borrowings and current portion of
    long-term debt
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">75,714</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long-term debt and 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">132,405</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">Monday Finance&nbsp;SA Senior Notes due 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><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">Invested equity/ shareholders&#146; equity
    </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">Class&nbsp;I common shares, par value $0.0001 per
    share, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    authorized, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million 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 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">Class&nbsp;II common shares, par value
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    authorized, &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">Restricted share units (relating to Class&nbsp;A
    common shares), &nbsp;&nbsp;&nbsp;&nbsp;million units 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 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">Restricted Class&nbsp;A common shares
    </FONT></DIV>
    </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">Deferred 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">&#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 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">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">&#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">Retained earnings
    </FONT></DIV>
    </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 valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PwC Network investment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">429,255</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">Accumulated other comprehensive 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">&#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 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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total PwC Network investment/ shareholders&#146;
    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">429,255</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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><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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">637,374</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</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="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On a historical basis, the amount of net
investment in our combined business by firms in the
PricewaterhouseCoopers network was recorded as PwC Network
investment in our combined financial statements.
</FONT>

<P align="center"><FONT size="2">53
</FONT>
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<!-- link2 "ACCOUNTING TREATMENT" -->
<DIV align="left"><A NAME="008"></A></DIV>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The net proceeds from the sale of the PEPS Units
will be allocated between the purchase contracts and the senior
notes on our financial statements based on their relative fair
value. Any resultant discount on the senior notes will be
amortized as an adjustment of interest expense over the life of
the senior notes. The relative fair value of the purchase
contracts will be recorded as a credit to additional paid-in
capital.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The purchase contracts are forward transactions
in our Class&nbsp;A common shares. Upon settlement of the
purchase contract, we will receive $25 on that purchase contract
and will issue the requisite number of our Class&nbsp;A common
shares. The $25 that we receive will be credited to Class&nbsp;A
common shareholders&#146; equity.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Before the issuance of our Class&nbsp;A common
shares upon settlement of the purchase contracts, the purchase
contracts will be reflected in our diluted earnings per share
calculations using the treasury stock method. Under this method,
the number of our Class&nbsp;A common shares used in calculating
diluted earnings per share (based on the settlement rate applied
at the end of the reporting period) is deemed to be increased by
the excess, if any, of the number of shares that would be issued
upon settlement of the purchase contracts over the number of
shares that could be purchased by us in the market (at the
average market price during the period) using the proceeds
receivable upon settlement. Consequently, we anticipate that
there will be no dilutive effect on our earnings per share
except during periods when the average market price of our
Class&nbsp;A common shares is above
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
the threshold appreciation price.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Emerging Issues Task Force of the Financial
Accounting Standards Board is expected to consider a proposal
related to accounting for certain securities and financial
instruments, including securities such as the PEPS Units. The
current proposals being considered include rulemaking that, if
adopted, could result in periodic &#147;marking to market&#148;
of the purchase contracts, causing periodic charges or credits
to income. The outcome and timing of the EITF rulemaking is
uncertain.
</FONT>

<P align="center"><FONT size="2">54
</FONT>
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<DIV align="left"><A NAME="009"></A></DIV>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At March&nbsp;31, 2002, Monday Ltd&#146;s pro
forma, as adjusted, net tangible book value was approximately
$&nbsp;&nbsp;&nbsp;&nbsp;million, or approximately
$&nbsp;&nbsp;&nbsp;&nbsp;per Class&nbsp;A common share. Net
tangible book value per Class&nbsp;A common share represents
total combined tangible assets less total combined liabilities,
divided by the aggregate number of Class&nbsp;A common shares
outstanding, assuming all Monday SCA Class&nbsp;I common shares
and all exchangeable shares issued by one of Monday SCA&#146;s
subsidiaries have been redeemed or exchanged on a one-for-one
basis for our Class&nbsp;A common shares. Class&nbsp;A common
shares outstanding include
approximately &nbsp;&nbsp;&nbsp;&nbsp;million Class&nbsp;A
common shares underlying grants of restricted share units but do
not include approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
Class&nbsp;A common shares issuable pursuant to options,
approximately &nbsp;&nbsp;&nbsp;&nbsp;million unvested
restricted Class&nbsp;A common shares and up
to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million Class&nbsp;A common
shares, or &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
Class&nbsp;A common shares if the underwriters for this offering
exercise their over-allotment option in full that are issuable
pursuant to purchase contracts in connection with the this
offering. Assuming an estimated initial public offering price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per share, new investors in our
Class&nbsp;A common shares in the concurrent Class&nbsp;A common
shares offering will experience an immediate dilution of
approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per share. We
are unable to predict the dilution an investor in our PEPS Units
may experience when a purchase contract is settled.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of March&nbsp;31, 2002, there were no options
or restricted share units outstanding with respect to our
Class&nbsp;A common shares. We expect to issue restricted share
units and options to purchase our Class&nbsp;A common shares in
connection with the concurrent Class&nbsp;A common shares
offering. Pursuant to this offering, we also will enter into
purchase contracts that will require us to sell, and holders of
these units to purchase, additional Class&nbsp;A common shares
no later
than &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;,
2006. To the extent that any Class&nbsp;A common shares
represented by restricted share units are distributed, any
options are granted and exercised or the purchase contracts are
exercised, there will be dilution to new investors.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If the underwriters&#146; over-allotment options
to purchase our Class&nbsp;A common shares and the PEPS Units
are exercised in full, the pro forma, as adjusted, net tangible
book value per share after giving effect to the concurrent
offerings would be approximately $&nbsp;&nbsp;&nbsp;&nbsp;per
share and, assuming an estimated initial public offering price
of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per share, new investors in
our Class&nbsp;A common shares would experience an immediate
dilution of approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
share.
</FONT>

<P align="center"><FONT size="2">55
</FONT>
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<P align="center">
<B><FONT size="2">OUR ORGANIZATIONAL STRUCTURE</FONT></B>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Monday Ltd is a Bermuda holding company that
currently has no material activities, assets or liabilities.
Monday SCA is a Luxembourg partnership limited by shares that is
owned by us, which also currently has no material activities,
assets or liabilities. Monday Ltd is the sole general partner,
or manager, of Monday SCA and therefore controls it and
includes, or consolidates, its operations into our financial
statements. As manager of Monday SCA, Monday Ltd has broad
powers to direct and manage the activities and affairs of Monday
SCA. These powers 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">the sole authority to institute and direct court
    proceedings and to negotiate, settle and compromise disputes on
    behalf of Monday SCA,
    </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 power to perform all acts and enter into and
    perform all contracts on behalf of Monday SCA that we deem
    necessary, advisable or useful in connection with Monday
    SCA&#146;s business 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 power to make any tax elections with respect
    to Monday SCA.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Monday SCA will reimburse Monday Ltd for all of
its expenses relating to its management of Monday SCA. In
addition, Monday Ltd may receive a remuneration from Monday SCA
for performing its management duties. Monday Ltd have not
entered into any fee arrangements for performing those duties at
this time. Monday Ltd anticipates that remuneration in the
future, if any, would not be material. Following our separation,
we will operate our business principally through subsidiaries of
Monday SCA, the equity of which initially will be our only
material asset.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Monday Finance SA is a Luxembourg corporation
that is indirectly wholly-owned by Monday SCA, which also has no
material activities, assets, other than any potential loans it
may make to Monday SCA and its subsidiaries, or liabilities,
other than liabilities in respect of the senior notes issued as
part of the PEPS Units.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to the terms of the rollup agreements,
firms in the PricewaterhouseCoopers network that are
transferring management consulting and technology services
businesses to us, or in some cases partners or shareholders of
those firms, will receive Class&nbsp;A common shares or Monday
SCA Class&nbsp;I common shares in connection with our separation
and will sell Class&nbsp;A common shares in the concurrent
Class&nbsp;A common shares offering. The nature of the
consideration to be received by each firm reflects the manner in
which it will contribute its business to us, which was
determined primarily based on tax considerations. In a number of
countries, we have entered into rollup agreements directly with
the partners or shareholders of some of the
PricewaterhouseCoopers firms because these partners or
shareholders directly own either the assets of, or equity in, a
management consulting and technology services business that is
being transferred to us. The countries are Australia, Belgium,
France, Iceland, Italy, Pakistan, Portugal, Sweden and
Switzerland. The allocation of shares among partners or
shareholders in those countries where PricewaterhouseCoopers
partners or shareholders are participating directly in this
offering has been based on the respective ownership interests of
those partners or shareholders in the business being sold as
their PricewaterhouseCoopers firm, as applicable.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The firms expected to receive Class&nbsp;A common
shares are those with operations principally in Canada, Central
Africa, China, Denmark, East Asia, Germany, Korea, Iceland, the
Middle East, New Zealand, Pakistan, Portugal, South Africa,
South America, Switzerland, the United Kingdom, the United
States and Venezuela. The United States firm also will receive
Monday SCA Class&nbsp;I common shares. Our partners in Canada
also will be receiving exchangeable shares of one of Monday
SCA&#146;s subsidiaries in connection with our separation, which
shares will be exchangeable into our Class&nbsp;A common shares
on a one-for-one basis. These businesses will be transferred,
directly or indirectly, by us to Monday SCA in exchange for a
number of its Class&nbsp;I common shares equal to the number of
Class&nbsp;A common shares that we issued to the firms in the
PricewaterhouseCoopers network or their partners or
shareholders. We will have the right, but not the
</FONT>

<P align="center"><FONT size="2">56
</FONT>

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<DIV align="left">
<FONT size="2">obligation, to contribute proceeds from future
issuances of our Class&nbsp;A common shares to Monday SCA in
exchange for additional Monday SCA Class&nbsp;I common shares.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The firms expected to receive Monday SCA
Class&nbsp;I common shares are those with operations principally
in Australia, Belgium, Central and Eastern Europe, Denmark,
Finland, France, Ireland, Italy, Japan, Mexico, the Netherlands,
Norway, Spain, Sweden and the United States. Holders of Monday
SCA Class&nbsp;I common shares or exchangeable shares of one of
Monday SCA&#146;s subsidiaries will have the right to purchase
for nominal consideration a number of our Class&nbsp;X common
shares, which have the same voting rights as our Class&nbsp;A
common shares but no economic rights, equal to the number of
Monday SCA Class&nbsp;I common shares or exchangeable shares
that they receive. PricewaterhouseCoopers firms, to the extent
these firms continue to own equity in our subsidiaries following
the closing of the concurrent Class&nbsp;A common shares
offering, will not be able to exercise this right under the
restrictions that are likely to be imposed as a condition to the
proposed SEC no-action letter, which is described in this
prospectus. The exchangeable shares of one of Monday SCA&#146;s
subsidiaries are exchangeable into Class&nbsp;A common shares on
a one-for-one basis. Subject to some exceptions, Monday SCA
Class&nbsp;I common shares are redeemable, upon request of a
holder, at any time for cash, although Monday SCA has the right
to deliver our Class&nbsp;A common shares on a one-for-one
basis, subject to adjustment for certain dilutive actions, in
lieu of cash. In addition, we may intercede and directly
exchange our Class&nbsp;A common shares for Monday SCA
Class&nbsp;I common shares that a shareholder has elected to
have redeemed.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">PricewaterhouseCoopers firms, or in some cases
partners or shareholders of these firms, that receive
Class&nbsp;A common shares or Monday SCA Class&nbsp;I common
shares in connection with our separation will be selling
Class&nbsp;A common shares in the concurrent Class&nbsp;A common
shares offering. In order to participate in the concurrent
Class&nbsp;A common shares offering, immediately prior to the
closing of the concurrent Class&nbsp;A common shares offering,
selling PricewaterhouseCoopers firms, or their partners or
shareholders, to the extent they hold equity in Monday SCA, will
have a portion of their Monday SCA Class&nbsp;I common shares
exchanged on a one-for-one basis for our Class&nbsp;A common
shares. In consideration of their withdrawal from the various
PricewaterhouseCoopers firms, our partners also will receive
some of the Class&nbsp;A common shares or Monday SCA
Class&nbsp;I common shares from these firms or, for our Canadian
partners, exchangeable shares of one of Monday SCA&#146;s
subsidiaries directly from the subsidiary being transferred to
us. The allocation of these shares among our partners will be
made on a firm-by-firm basis and will be based on a variety of
factors, including ownership and seniority. Our partners
generally will not be participating in the concurrent
Class&nbsp;A common shares offering. Through a combination of
distribution to our partners and sales as a result of this
offering, the PricewaterhouseCoopers firms intend to fully
dispose of their holdings in us. Assuming the
PricewaterhouseCoopers firms, or their partners or shareholders,
fully liquidate their holdings in us and our subsidiaries as a
result of this offering, only our partners and we will hold
Monday SCA common shares or exchangeable shares in our other
subsidiaries following the closing of the concurrent
Class&nbsp;A common shares offering.
</FONT>

<P align="center"><FONT size="2">57
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our organizational structure following our
separation is expected to be as shown in the diagram below. This
diagram does not display any of our subsidiaries, other than
Monday SCA, or any of Monday SCA&#146;s subsidiaries, other than
Monday Finance SA.
</FONT>

<P align="center">
<IMG src="y61876y6187601.gif" alt="(PWC FLOWCHART)">

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Described below is our expected equity ownership
following our separation, in each case calculated assuming all
Monday SCA Class&nbsp;I common shares and all exchangeable
shares issued by one of Monday SCA&#146;s subsidiaries that are
not owned by us or our subsidiaries have been redeemed or
exchanged on a one-for-one basis into our Class&nbsp;A common
shares. These percentages reflect both economic interests and
voting interests.
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149; &nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Our partners will own
    approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of our
    Class&nbsp;A common shares, not including Class&nbsp;A common
    shares to be issued in respect of restricted share units, or
    approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% if the
    underwriters exercise their over-allotment option in full.
    </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 public shareholders will own
    approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of our
    Class&nbsp;A common shares, or
    approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% if the
    underwriters exercise their over-allotment option in full.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the event the PricewaterhouseCoopers firms and
their partners and shareholders do not dispose of all of their
Class&nbsp;A common shares in the concurrent Class&nbsp;A common
shares offering, including Class&nbsp;A common shares that would
be received upon a redemption or exchange of Monday SCA
Class&nbsp;I common shares, the PricewaterhouseCoopers firms and
some of their partners and shareholders will continue to hold
some of our Class&nbsp;A common shares or Monday SCA
Class&nbsp;I common shares. In the event these firms continue to
hold any of these shares, they will be subject to voting and
other restrictions as described under &#147;Arrangements with
the PricewaterhouseCoopers Network of Firms&#151;Shareholders
Agreement.&#148; The percentage of our Class&nbsp;A common
shares that these firms and their partners and shareholders will
be permitted to hold immediately following the closing of the
concurrent Class&nbsp;A common shares offering will be equal to
or less than the percentage set forth in a no-action letter that
we expect the SEC to issue in connection with our separation.
The no-action letter, if granted as currently proposed by us,
would provide that the SEC would take no action to attribute our
business activities following the closing of the concurrent
</FONT>

<P align="center"><FONT size="2">58
</FONT>
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<DIV align="left">
<FONT size="2">Class&nbsp;A common shares offering to the
PricewaterhouseCoopers firms so long as these firms hold less
than a specified percentage of our equity and other specified
conditions are met. We have proposed that this percentage be
less than 20% of our Class&nbsp;A common shares outstanding
immediately following the closing of the concurrent Class&nbsp;A
common shares offering, calculated as if all Monday SCA
Class&nbsp;I common shares and all exchangeable shares issued by
one of Monday SCA&#146;s other subsidiaries had been redeemed or
exchanged on a one-for-one basis for our Class&nbsp;A common
shares.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Monday SCA Share Capital</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following is a brief description of the share
capital of Monday SCA, including the principal economic and
legal differences among the shares.
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149; &nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">The Monday SCA Class&nbsp;I common shares
    represent limited partnership interests in Monday SCA.
    </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">Monday SCA Class&nbsp;II Series&nbsp;I common
    shares represent general partnership interests, and holders of
    Class&nbsp;II Series&nbsp;I common shares are jointly and
    severally liable with Monday SCA for all of Monday SCA&#146;s
    liabilities that cannot be met out of its assets.
    </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">Monday SCA Class&nbsp;II Series&nbsp;II through
    Series&nbsp;XX common shares represent limited partnership
    interests in Monday SCA.
    </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">Holders of Monday&nbsp;SCA Class&nbsp;I common
    shares, in the aggregate, are entitled to 95% of any dividend
    paid by Monday&nbsp;SCA. Holders of Monday SCA Class&nbsp;II
    common shares, regardless of series, in the aggregate, are
    entitled to 5% of any dividend paid by Monday SCA.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Following the closing of the concurrent
offerings, we will hold all of the Class&nbsp;II common shares
of Monday SCA. For all purposes under Luxembourg law and the
Monday SCA articles of incorporation, any Monday SCA
Class&nbsp;I common shares owned by us will be treated as Monday
SCA Class&nbsp;II Series&nbsp;I common shares, except for
purposes of share transfers and redemptions. As a result, we
will receive a smaller percentage of dividends than the
percentage to which we would otherwise be entitled. In order to
compensate us for this reduced percentage, Monday SCA
Class&nbsp;II Series&nbsp;II through Series&nbsp;XX common
shares are redeemable for cash for an amount that depends upon
the aggregate dividend amount paid on Monday SCA common shares.
Please see &#147;Description of Share Capital&#151; Description
of Monday&nbsp;SCA Common Shares&#148; for a more detailed
description.
</FONT>

<P align="left">
<B><FONT size="2">Other Structural Considerations</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Although we currently do not anticipate that we
will declare any dividends in the foreseeable future, we expect
that any dividends we may declare will be paid based on economic
ownership in us and our subsidiaries. After our separation, we
will have no material activities, assets or liabilities other
than our holdings in Monday SCA and our obligations under the
purchase contracts underlying the PEPS Units. Because we will be
permitted to acquire and hold assets and incur liabilities at
various levels of our organizational structure, however, there
may be differences between dividends paid on our Class&nbsp;A
common shares and distributions made with respect to Monday SCA
Class&nbsp;I common shares. For example, we may acquire a
business at the Monday Ltd level and decide not to transfer the
business to Monday SCA, which may result in additional cash flow
at the Monday Ltd level. Conversely, we may incur indebtedness
only at the Monday Ltd level, which could cause expenses to be
incurred at the Monday Ltd level that may not be reimbursed by
Monday SCA. In addition, distributions paid by Monday SCA will
be subject to Luxembourg withholding taxes, which vary based
upon the residence of a shareholder. Therefore, we may not
receive the same distribution from Monday SCA on account of our
Monday SCA Class&nbsp;I common shares or Class&nbsp;II common
shares, on a net after-tax basis, as another holder of Monday
SCA Class&nbsp;I common shares, such as one of our partners. We
expect to minimize withholding taxes by receiving payments for
redemption of our Monday SCA Class&nbsp;II common shares in lieu
of most ordinary distributions, as described in the prior
paragraph.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As described in &#147;Risk Factors&#151;
Potential changes to United States federal tax and other laws
could increase our effective tax rate or could have other
adverse effects on our business,&#148; there is some possibility
that legislation may be enacted in the United States that could
have adverse effects on our company. If such
</FONT>

<P align="center"><FONT size="2">59
</FONT>

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<DIV align="left">
<FONT size="2">legislation is enacted, or appears likely to be
enacted, and would apply to our company, we may decide to
convert to a United States corporation, either by electing under
Delaware law to be a Delaware corporation or merging into a
Delaware corporation. Under our bye-laws, the conversion into a
Delaware corporation by election under Delaware law could be
effected by our board of directors without shareholder approval.
Any decision to merge into a Delaware corporation, however,
would be subject to shareholder approval.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Please see &#147;Arrangements with the
PricewaterhouseCoopers Network of Firms,&#148;
&#147;Arrangements With Our Partners,&#148; &#147;Description of
Share Capital&#148; and &#147;Description of PEPS Units&#148;
for additional information about our corporate structure.
</FONT>

<P align="center"><FONT size="2">60
</FONT>

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<P align="center">
<B><FONT size="2">AUDITOR INDEPENDENCE RULES, THE ENRON
SITUATION</FONT></B>

<DIV align="center">
<B><FONT size="2">AND THE PROPOSED SEC NO-ACTION
LETTER</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">Auditor Independence Rules and the Enron
Situation</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The United States federal securities laws,
including the rules and regulations promulgated by the
Securities and Exchange Commission under these laws, require
that an independent accountant certify the financial statements
that a public reporting company submits to the SEC. Other
jurisdictions also have laws, rules and regulations regarding
the independence of accountants from audit clients. Until our
separation from the PricewaterhouseCoopers network of firms, our
business will continue to be subject to and constrained by these
laws, rules and regulations because of the accounting and
auditing businesses that are conducted by the firms in the
PricewaterhouseCoopers network.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Rule&nbsp;2-01 of Regulation&nbsp;S-X under the
Securities Act, which was amended effective February&nbsp;2001,
provides that the SEC will not recognize an accountant as
independent from an audit client unless the accountant is, and
appears to a reasonable investor to be, capable of exercising
objective and impartial judgment on all issues encompassed
within the accountant&#146;s engagement. In addition to this
general standard, Rule&nbsp;2-01 also sets forth a number of
non-exclusive circumstances, including various relationships
between an accountant and an audit client and services performed
by an accountant for an audit client, which the SEC views as
inconsistent with the general standard for independence. At the
time Rule&nbsp;2-01 was amended in February&nbsp;2001, the SEC
also amended the proxy disclosure rules to require disclosure of
the fees paid by a public reporting company to its principal
accountants for audit and non-audit services. The following
summary sets forth some of these circumstances which have
limited our business and describes the new proxy disclosure
rules. This summary, however, is not intended to be a full
description of Rule&nbsp;2-01, as amended, the proxy disclosure
rules or any other SEC rules and regulations regarding the
independence of accountants.
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Relationships.
    </FONT></I></B><FONT size="2">Rule&nbsp;2-01 provides that an
    accountant will not be independent from an audit client if the
    accountant enters into financial, employment or business
    relationships with the audit client. For example, subject to
    some exceptions, an accountant may not lend money to or
    otherwise have a financial interest in an audit client. An
    accountant also may not enter into business relationships, such
    as joint ventures or strategic alliances, with an audit client.
    Accordingly, because of these restrictions, we have been limited
    in our ability to form alliances, enter into resale
    arrangements, form joint ventures or enter into contingent fee
    or risk-sharing arrangements with audit clients of firms in the
    PricewaterhouseCoopers network and affiliates of these clients.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Non-audit Services.
    </FONT></I></B><FONT size="2">Rule&nbsp;2-01 provides that the
    performance by an accountant of some non-audit services for an
    audit client is incompatible with independent status. For
    example, an accountant will not be independent from an audit
    client if, at any point during an audit period, the accountant
    directly or indirectly operates or supervises the operation of
    the client&#146;s information systems or manages the
    client&#146;s local area computer network. In addition, unless
    conditions designed to ensure independence are satisfied, the
    SEC will not recognize an accountant as independent if the
    accountant designs or implements a hardware or software system,
    such as an enterprise resource planning system, that aggregates
    financial data or generates information that is significant to
    the client&#146;s financial statements taken as a whole. As a
    general matter, most of the management consulting and technology
    services we currently provide are not restricted. We have been
    limited, however, in providing some services, such as
    outsourcing, because of these restrictions.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Public Disclosure Requirements.
    </FONT></I></B><FONT size="2">The proxy disclosure rules require
    that a public reporting company&#146;s annual proxy statement
    include disclosure setting forth the fees billed by the
    company&#146;s principal accountants for audit and non-audit
    services. Fees for non-audit services must be disclosed
    separately from fees for audit services, and fees relating to
    the design or implementation of hardware or software financial
    reporting systems, as described above, also must be separately
    disclosed. In addition, a company must disclose whether its
    audit committee has considered whether the provision of
    non-audit services by its accountants is compatible with
    maintaining the independence of its accountants. Because of
    these disclosure requirements, boards of directors are becoming
    increasingly hesitant to allow their accountants to perform
    significant non-audit services.
    </FONT></TD>
</TR>

</TABLE>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition to the SEC rules and regulations,
state accounting licensing boards in the United States and
regulatory organizations outside the United States as well as
the professional ethics rules of the accounting profession in
many places around the world impose similar restrictions on the
ability of accounting firms to enter into relationships or
perform some non-audit services for audit clients.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Although we believe independence-related concerns
are most prominent for companies with securities listed or
traded on United States securities markets, many other countries
in which we operate also have laws, rules and regulations
regarding the independence of accountants from audit clients.
The United Kingdom, for example, has required disclosure of fees
for audit and non-audit services since 1989. The European
Commission, in preparation for the issuance of a formal
recommendation to European Union member states regarding
statutory auditor independence, published a paper in
December&nbsp;2000 which proposed a set of fundamental
independence principles and specific independence requirements.
These formal recommendations and specific requirements are
similar to, and in some cases stricter than, the SEC auditor
independence and disclosure rules. In response to the Enron
situation described below, many jurisdictions outside of the
United States also are considering new laws, rules and
regulations that would restrict further the ability of
accounting firms to provide non-audit services to their audit
clients or require disclosure of audit and non-audit fees.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In response to the recent high profile bankruptcy
filing by the Enron Corporation in December&nbsp;2001,
government authorities, the media, boards of directors and
shareholders also are paying considerable attention to the
relationships between public reporting companies and their
auditors. In the case of Enron, governmental authorities and the
media are investigating whether the management consulting fees
paid to Arthur Andersen compromised its role as Enron&#146;s
independent accountants. There also are a number of bills
pending in the United States House of Representatives and the
United States Senate which, if enacted, would prohibit or
further restrict the provision of non-audit services to a public
reporting company by its accountants. In addition, shareholders,
particularly pension funds affiliated with labor unions, have
begun proposing shareholder resolutions that, if adopted, would
prevent a company&#146;s accountants from performing non-audit
services. In February&nbsp;2002, for example, approximately 40%
of the votes cast at The Walt Disney Company&#146;s annual
shareholders meeting supported a proposal that would have
prevented its accountants, PricewaterhouseCoopers LLP, from
providing Disney with non-audit services in the future. Although
Disney&#146;s board of directors originally opposed the
initiative, Disney indicated, prior to its annual meeting, that
it would adopt the measure regardless of the shareholder vote,
citing public sentiment and shareholder reaction. Similar
proposals are pending at other large, multinational public
reporting companies.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Please see &#147;Management&#146;s Discussion and
Analysis of Financial Condition and Results of
Operations&#151;Overview&#151;Auditor Independence Rules, the
Enron Situation and the Impact on Our Business&#148; for a
description of the impact that the auditor independence rules
and the Enron situation are having on our business.
</FONT>

<P align="left">
<B><FONT size="2">The Proposed Securities and Exchange
Commission No-Action Letter</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with our separation,
PricewaterhouseCoopers LLP, the United States firm, has
submitted a request for an independence-related no-action letter
from the Securities and Exchange Commission. The no-action
letter, if issued as currently proposed by us, would provide
that the SEC would take no action to attribute our business
activities following the closing of the concurrent Class&nbsp;A
common shares offering to the firms in the
PricewaterhouseCoopers network. As a result, the restrictions on
our scope of services and business relationship described above
and in this prospectus would no longer apply to us after our
separation and the completion of the concurrent Class&nbsp;A
common shares offering.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As part of the separation transaction, we have
agreed to comply with the requirements of the proposed no-action
letter. We also will grant the firms in the
PricewaterhouseCoopers network contractual rights, such as
registration rights, that these firms will require in order to
comply with the terms of the proposed no-action letter, if these
firms continue to hold our equity following the closing of the
concurrent Class&nbsp;A common shares offering. A description of
the agreements that contain these provisions are described in
&#147;Arrangements with the PricewaterhouseCoopers Network of
Firms.&#148;
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following is a summary of some of the
conditions that the SEC likely would require in connection with
the issuance of the proposed no-action letter. The conditions
listed below are not the full set of conditions that would be
applicable if the SEC issues the proposed no-action letter and
focus only on the provisions which we believe could materially
affect us or our business.
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">The SEC will not take any action to attribute our
    business activities to the PricewaterhouseCoopers firms if,
    after giving effect to the closing of the concurrent
    Class&nbsp;A common shares offering, the firms in the
    PricewaterhouseCoopers network and their partners, shareholders
    and pension funds for partners own less than 20% of our
    outstanding Class&nbsp;A common shares, calculated assuming all
    Monday SCA Class&nbsp;I common shares have been redeemed by
    Monday SCA in exchange for our Class&nbsp;A common shares and
    any exchangeable shares issued by our subsidiaries have been
    exchanged for our Class&nbsp;A common shares, in each case on a
    one-for-one basis. Any remaining Class&nbsp;A common shares or
    Monday SCA Class&nbsp;I common shares held by these firms and
    their partners and shareholders following the closing of the
    concurrent Class&nbsp;A common shares offering would be required
    to be sold or otherwise disposed of prior to the fifth
    anniversary of the closing of the concurrent Class&nbsp;A common
    shares offering. Any shares owned, however, by partners and
    shareholders of a PricewaterhouseCoopers firm that are freely
    transferable under the Securities Act of 1933 and are not
    subject to a lock-up or other transfer restrictions would not be
    attributed to the PricewaterhouseCoopers firms.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">We would be entitled to use the name &#147;PwC
    Consulting&#148; only for a period of four years commencing with
    the closing of the concurrent Class&nbsp;A common shares
    offering. The right to use the name &#147;PwC Consulting&#148;
    during this period would be subject to a number of important
    conditions, including our obligation to clearly designate our
    business as not being owned by or affiliated with the firms in
    the PricewaterhouseCoopers network. Although we will have the
    right to use the name &#147;PwC Consulting&#148; for this period
    of time, we changed our name in June 2002 and will begin
    operating under our new brand upon our separation. Please see
    &#147;Business&#151;Business Development and Marketing&#148; for
    information regarding our new name and our marketing plans for
    our new name.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">The PricewaterhouseCoopers firms would be able to
    refer clients to us but would be under no obligation to do so.
    Likewise, we would be able to refer clients to firms in the
    PricewaterhouseCoopers network but would be under no obligation
    to do so. The PricewaterhouseCoopers network firms would not be
    permitted to designate us as a preferred provider of services.
    We also would not be able to pay referral fees or other
    compensation to PricewaterhouseCoopers firms, nor would they be
    able to pay referral fees or other compensation to us.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Any transition services agreements entered into
    by a PricewaterhouseCoopers firm and us would provide that
    transition services will be provided to us at the cost of the
    services provided. In general, the terms of these agreements
    would not exceed three years.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">We would continue to be able to occupy office
    space that we currently share with a PricewaterhouseCoopers
    firm, so long as our offices clearly are distinguishable from
    the offices of the PricewaterhouseCoopers firms with which we
    share space. In general, at the end of a lease for any shared
    space, we would need to relocate or enter into a lease for our
    space directly with owner of the property.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">We and the PricewaterhouseCoopers firms would
    enter into, and comply with, the terms of the noncompete
    arrangements contained in the agreements relating to our
    separation.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The terms and conditions of the final no-action
letter, if issued by the Securities and Exchange Commission, may
materially differ from the terms and conditions of the proposed
no-action letter, including those discussed above.
</FONT>

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<DIV align="left"><A NAME="011"></A></DIV>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth our selected
financial data derived from our audited combined financial
statements as of and for the fiscal years ended June&nbsp;30,
1999, 2000 and 2001, our unaudited combined balance sheet as of
March&nbsp;31, 2002, and our unaudited combined income
statements before partner distributions and benefits for the
nine months ended March&nbsp;31, 2001 and 2002. The selected
financial data should be read in conjunction with our unaudited
pro forma combined financial statements and notes to these
statements, &#147;Management&#146;s Discussion and Analysis of
Financial Condition and Results of Operations&#148; and our
combined financial statements and notes to these statements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our business will be comprised of the management
consulting and technology services businesses to be transferred
to us prior to the closing of the concurrent offerings by some
of the firms in the PricewaterhouseCoopers network of firms or
by the partners or shareholders of some of these firms as part
of our separation. Our combined financial statements and notes
to these statements, however, contain historical financial
results and assets and liabilities for management consulting and
technology services businesses of firms in the
PricewaterhouseCoopers network that are not being transferred to
us as part of our separation. Accordingly, the historical
financial information set forth below includes the financial
results and assets and liabilities of businesses that we will
not own after our separation, which financial results and assets
and liabilities are not material to us. Please see
&#147;Arrangements with the PricewaterhouseCoopers Network of
Firms&#148; for a description of our separation and our
unaudited pro forma combined financial statements and notes to
these statements for a pro forma presentation of the financial
results of our business, which excludes the financial results
and assets and liabilities of management consulting and
technology services businesses that we will not own after our
separation.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The historical financial results and assets and
liabilities of the businesses being transferred to us as part of
our separation contained in our combined financial statements do
not reflect what our financial results and assets and
liabilities in the future as a separate public company will be
or what our financial results and assets and liabilities would
have been had we been a separate public company with these
businesses during the periods presented for various reasons. For
example, compensation for our partners was not reflected in our
combined income statements before partner distributions and
benefits as an expense. Please see our unaudited pro forma
combined financial statements and notes to these statements,
&#147;Management&#146;s Discussions and Analysis of Financial
Condition and Results of Operations&#148; and our combined
financial statements and notes to these statements for a more
detailed discussion of these reasons.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have not provided selected financial data for
any period preceding the formation of the PricewaterhouseCoopers
network of firms. As further described in the notes to our
combined financial statements, the PricewaterhouseCoopers
network of firms was formed on July&nbsp;1, 1998, through the
combination of the Coopers &#38; Lybrand and Price Waterhouse
global networks. Prior to July&nbsp;1, 1998, these global
networks were independent of each other, had operational and
management structures that were not similar, did not have
economic arrangements between them that are comparable to the
arrangement established within the PricewaterhouseCoopers
network and were not under common management. Accordingly, we
believe that there is no accounting basis for combining the
individual firms that comprised these networks in order to
provide information prior to the combination. Each of the
separate firms comprising these networks generally had differing
reporting year ends, maintained its own books and records and
had differing accounting policies and methodologies.
Consequently, comparable financial information for each of the
firms within these networks cannot be reliably produced without
unreasonable effort or expense, and even if such information
could be produced, we believe it would not provide meaningful
information because the information would need to be presented
on a disaggregated basis for many of the individual firms.
</FONT>

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    <TD colspan="2"></TD>
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    <TD colspan="7"></TD>
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<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Nine Months Ended</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">Fiscal Year Ended June 30,</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">March&nbsp;31,</FONT></B></TD>
</TR>

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    <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 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">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002(2)</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">Income Statement 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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,230,609</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,130,959</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,481,003</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,637,753</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">5,005,260</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 services(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">2,964,870</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,501,153</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">3,825,639</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,891,832</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,524,357</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">Reimbursables and subcontractor 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">1,212,798</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">1,341,290</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,516,429</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,141,532</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,041,011</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 cost of services(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">4,177,668</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,842,443</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,342,068</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">4,033,364</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,565,368</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">Selling, general and administrative expenses(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">1,408,261</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,595,085</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,586,126</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,157,117</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">965,839</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">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">46,946</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">54,911</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">57,007</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">42,995</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44,817</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>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Operating income(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">597,734</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">638,520</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">495,802</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">404,277</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">429,236</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">Interest 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">2,816</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,918</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,553</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,914</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,544</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
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(34,816</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">(47,918</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">(58,553</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">(44,914</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">(33,616</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&nbsp;(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">&#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">11,619</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">(15,618</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">(7,910</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">98</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>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income before partner distributions and benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">565,734</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">604,139</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">424,184</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">353,367</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">400,262</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>

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

<TR>
    <TD width="48%"><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="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>
</TR>

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

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">As of June 30,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">As of</FONT></B></TD>
</TR>

<TR>
    <TD></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">March&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD></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>
</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></TD>
    <TD></TD>
    <TD colspan="15"></TD>
</TR>

<TR>
    <TD></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 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>
</TR>

<TR>
    <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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">39,336</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">74,352</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">110,204</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">115,193</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">Working 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">430,969</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">418,527</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">315,217</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">252,083</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">Goodwill, 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">191,506</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">214,584</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">151,063</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">117,908</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">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">1,870,368</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,199,024</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,988,499</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,807,168</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">Amounts due to the PwC Network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">888,879</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,085,443</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,019,051</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">891,505</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">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">174,672</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">219,357</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">165,709</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">132,405</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">PwC Network investment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">568,644</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">567,218</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">503,034</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">429,255</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="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">(1)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Excludes payments for partner distributions and
    benefits.
    </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">As of July&nbsp;1, 2001, new arrangements were
    established for sharing cost between the various lines of
    business in the PricewaterhouseCoopers network of firms. See
    Note 4 to our unaudited financial statements for the period
    ended March&nbsp;31, 2002.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">65
</FONT>

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

<P align="center">
<B><FONT size="2">UNAUDITED PRO FORMA COMBINED FINANCIAL
STATEMENTS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The unaudited pro forma combined financial
statements of Monday Ltd and Monday SCA reported below should be
read in conjunction with our &#147;Management&#146;s Discussion
and Analysis of Financial Condition and Results of
Operations&#148; and our combined financial statements and the
notes to these statements. We have included unaudited pro forma
combined financial statements for both Monday Ltd and Monday SCA
because our PEPS Units are comprised of purchase contracts
issued by Monday Ltd and senior notes issued by Monday Finance
SA, a wholly owned indirect subsidiary of Monday SCA. Monday SCA
is guaranteeing the Monday Finance SA senior notes. The
principal difference between the unaudited pro forma combined
financial statements for Monday Ltd and Monday SCA relates to
the minority interest of some of our partners in Monday SCA. The
following unaudited pro forma combined balance sheets as of
March&nbsp;31, 2002, and unaudited pro forma combined income
statements for the nine months ended March&nbsp;31, 2002, and
for the fiscal year ended June&nbsp;30, 2001, have been derived
from our unaudited and audited combined financial statements.
The unaudited pro forma combined financial statements are
illustrative only and do not purport to represent what the
financial position and results of operations of Monday Ltd and
Monday SCA actually would have been had our separation and
related transactions described below occurred on the dates
indicated or what our future performance as a separate public
company will be.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The unaudited pro forma combined income
statements were prepared as if our separation and the related
transactions described below, including the concurrent
offerings, had occurred as of July&nbsp;1, 2000. The unaudited
pro forma combined balance sheets were prepared as if our
separation and the related transactions had occurred as of
March&nbsp;31, 2002. The unaudited pro forma combined financial
statements give pro forma effect to a number of factors,
including the following:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">our separation and the related transactions
    described under &#147;Arrangements with the
    PricewaterhouseCoopers Network of Firms,&#148;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the retention by the PricewaterhouseCoopers
    network of firms of debt included in &#147;Amounts due to the
    PwC Network&#148; in the combined financial statements,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">compensation and benefits under our new
    compensation structure that we would have paid to partners had
    we been a corporation in the historical periods,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">provision for corporate income taxes, which has
    been determined based on Monday Ltd&#146;s status as a Bermuda
    company and which may change as a result of proposed United
    States tax legislation or in the event we decide to convert to a
    United States corporation, the net effect of which for the
    periods presented would be as described in note&nbsp;(e) to the
    unaudited pro forma combined financial statements,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the exclusion of the financial results and assets
    and liabilities of the management consulting and technology
    services businesses of PricewaterhouseCoopers firms that are not
    being transferred to us as part of our separation, which are not
    material to us, and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the concurrent offerings.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The pro forma adjustments are based upon
available information and assumptions that we believe are
reasonable. Please see the notes to our unaudited pro forma
combined financial statements for a more detailed discussion of
the adjustments described above and how they are presented in
our unaudited pro forma combined financial statements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our unaudited pro forma combined income
statements do not give effect to one-time events directly
attributable to our transition to a corporate structure and
related transactions because of their nonrecurring nature. These
one-time events include the following transactions and related
tax effects that are expected to occur in the latter part of
fiscal year 2002 and fiscal year 2003:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">costs of approximately $6.5 million associated
    with our transition to a corporate structure, primarily
    consisting of indirect taxes, such as capital and stamp duty,
    imposed on the transfer of assets,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">compensation costs to be incurred immediately
    following the closing of the concurrent Class&nbsp;A common
    shares offering of approximately $117&nbsp;million resulting
    from the grant of fully vested
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">66
</FONT>

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

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    <FONT size="2">restricted share units representing Class&nbsp;A
    common shares to our partners and sales at nominal value of
    Class&nbsp;A common shares to our partners in connection with
    the concurrent Class&nbsp;A common shares offering,
    </FONT></TD>
</TR>

</TABLE>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">recognition of income tax assets, net, of
    approximately $143&nbsp;million resulting from our transition to
    a corporate structure and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">marketing expenses of approximately
    $110&nbsp;million to change our name and build a new brand
    identity.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, the unaudited pro forma combined
financial statements do not give effect to other separation
transaction costs, such as creating separate systems and
processes.
</FONT>

<P align="center"><FONT size="2">67
</FONT>

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

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

<DIV align="center">
<B><FONT size="2">Unaudited Pro Forma Combined Balance
Sheet</FONT></B>
</DIV>

<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="26%"><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="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="5%"><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="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="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="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>
</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">As of March&nbsp;31, 2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="23" 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>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pro forma</FONT></B></TD>
    <TD></TD>
    <TD colspan="11"></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">adjustments&#151;</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">adjustments&#151;</FONT></B></TD>
    <TD></TD>
    <TD colspan="11"></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">excluded</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">transition to a</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Adjustments for</FONT></B></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">Historical</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">operations(a)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">corporate structure</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pro forma</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">the offerings</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>
    <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)</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">Assets</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 colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Current assets
    </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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Cash and cash equivalents
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">115,193</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(41,462</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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">73,731</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(o)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</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><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 align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(p)</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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Short-term investments
    </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">13,724</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">13,724</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">Accounts receivable
    </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">1,013,310</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">(43,604</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">969,706</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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Unbilled receivables
    </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">188,774</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">(2,179</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">186,595</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">Amounts due from the PwC&nbsp;Network
    </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">58,024</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">(62</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">(57,962</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)(g)</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><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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Prepaid and other current assets
    </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">108,566</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">(5,085</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">103,481</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">Deferred tax assets
    </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">188,754</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(f)</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">223,457</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">34,703</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(i)</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><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 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><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Total current assets
    </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">1,497,591</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">(92,392</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">165,495</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">1,570,694</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 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">Investments
    </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">4,746</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">4,746</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">Property and equipment, net
    </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">145,451</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">(23,584</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">121,867</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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Goodwill, net
    </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">117,908</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">(25,134</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">92,774</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">Other non-current assets
    </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">41,472</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">(5,761</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">35,711</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="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(o)</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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Deferred tax assets
    </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">12,600</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(c)</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">12,600</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="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(q)</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(f)</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(q)</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 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><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Total non-current assets
    </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">309,577</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">(54,479</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">12,600</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">267,698</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 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><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">Total assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,807,168</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(146,871</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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">178,095</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,838,392</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</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 colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="1">Liabilities and PwC Network investment and
    Shareholders&#146; Equity</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 valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Current liabilities
    </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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Accounts payable and accrued liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">183,106</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(30,900</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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">6,500</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(h)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">241,706</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">66,000</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(j)</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">17,000</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(f)</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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Accrued payroll and related benefits
    </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">95,183</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">(6,765</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">86,757</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(i)</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">175,175</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(q)</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(q)</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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Short-term bank borrowings
    </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">71,611</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">(28,485</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">43,126</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">Current portion of long-term debt
    </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">4,103</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">(800</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">3,303</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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Amounts due to the PwC Network
    </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">891,505</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">(28,924</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">(345,821</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)(g)</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">516,760</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 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><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">Total current liabilities
    </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">1,245,508</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">(95,874</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">(169,564</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">980,070</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 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 colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Long-term liabilities
    </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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Long-term debt
    </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">52,455</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">(20,773</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">31,682</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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Monday Finance SA senior notes due 2008
    </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><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(o)</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">Other long-term liabilities
    </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">79,950</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">(318</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">79,632</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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Retirement benefits
    </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">31,499</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(c)</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">31,499</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">Deferred tax liabilities
    </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">28,546</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(f)</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">28,546</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 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><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">Total long-term liabilities
    </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">132,405</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">(21,091</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">60,045</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">171,359</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 colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Minority interest
    </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 align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(m)</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><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(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><FONT size="1">&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="1">PwC Network investment
    </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">429,255</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">(29,906</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">287,859</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(g)</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><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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">(12,038</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)(l)</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">(675,170</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)(k)</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 colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Shareholders&#146; equity
    </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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Series A junior preferred shares(s)
    </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">&#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><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">Class&nbsp;A common shares(t)
    </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">&#151;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(n)</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><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(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><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">Class&nbsp;X common shares(u)
    </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">&#151;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(n)</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><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">Restricted share units (related to Class&nbsp;A
    common shares)(v)
    </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 align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(q)</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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Restricted Class&nbsp;A common shares
    </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 align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(q)</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">Deferred compensation
    </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 align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(q)</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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Additional paid-in capital
    </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">(31,499</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)(c)</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">556,914</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="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(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><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><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">&#151;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(f)</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="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(p)</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">(86,757</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)(i)</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">675,170</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(k)</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(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><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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(n)</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(q)</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">Retained earnings
    </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">12,600</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(c)</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">118,011</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="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(q)</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">143,208</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(f)</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">(6,500</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)(h)</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">34,703</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(i)</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">(66,000</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)(j)</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(q)</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">Accumulated other comprehensive income
    </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">12,038</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(l)</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">12,038</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 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><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">Total shareholders&#146; equity
    </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">686,963</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">686,963</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 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><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">Total liabilities and shareholders&#146; equity
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,807,168</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(146,871</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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">178,095</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,838,392</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</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>

</TABLE>
</CENTER>

<P align="center">
<I><FONT size="2">The accompanying notes are an integral part of
these financial statements.</FONT></I>

<P align="center"><FONT size="2">68
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

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

<DIV align="center">
<B><FONT size="2">Unaudited Pro Forma Combined Income
Statement</FONT></B>
</DIV>

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

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="27%"><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>
    <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="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="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="23"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><B><FONT size="1">Fiscal Year Ended June 30, 2001</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><HR size="1" noshade></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">Pro forma</FONT></B></TD>
    <TD></TD>
    <TD colspan="11"></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">adjustments&#151;</FONT></B></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pro forma</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">transition</FONT></B></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">adjustments&#151;</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">to a</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Adjustments</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">excluded</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">corporate</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">for&nbsp;the</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pro forma</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Historical</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">operations(a)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">structure</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pro forma</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">offerings</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">as adjusted</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, except per share data)</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">Revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,481,003</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(332,861</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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,148,142</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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cost of services
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,825,639</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(300,818</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">442,088</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="2">(b)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,000,396</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32,111</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="2">(c)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,376</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="2">(d)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">Reimbursables and subcontractor 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">1,516,429</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(16,703</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">1,499,726</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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>

</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 cost of services
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,342,068</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">(317,521</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">475,575</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">5,500,122</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">Selling, general and administrative 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">1,586,126</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(82,992</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">78,016</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="2">(b)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,502,268</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <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">(q)</FONT></TD>
    <TD><FONT size="2">&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><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,667</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="2">(c)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(56,549</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)(d)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(28,000</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)(e)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">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">57,007</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(5,396</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">51,611</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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>

</TR>

<TR>
    <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">495,802</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">73,048</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(474,709</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">94,141</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">Interest 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">2,553</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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">2,553</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">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">(58,553</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">2,996</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">39,764</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="2">(g)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(15,793</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 align="left" valign="bottom" nowrap><FONT size="2">(o)</FONT></TD>
    <TD><FONT size="2">&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">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">(15,618</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">(15,618</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>
</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>

</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">424,184</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">76,044</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(434,945</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">65,283</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">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">&#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">85,595</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="2">(e)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">85,595</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <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">(o)(q)</FONT></TD>
    <TD><FONT size="2">&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>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income before minority 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">424,184</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">76,044</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(520,540</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">(20,312</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>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Minority 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">&#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 align="left" valign="bottom" nowrap><FONT size="2">(m)</FONT></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 align="left" valign="bottom" nowrap><FONT size="2">(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><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>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income before partner distributions and benefits
    </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">424,184</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">Net income (loss)
    </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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">76,044</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(520,540</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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(20,312</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD 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>
    <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">Earnings 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>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <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><FONT size="2">&nbsp;</FONT></TD>
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    <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 align="left" valign="bottom" nowrap><FONT size="2">(r)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
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    <TD align="right" valign="bottom" nowrap><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><FONT size="2">&nbsp;</FONT></TD>
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    <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 align="left" valign="bottom" nowrap><FONT size="2">(r)</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><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <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 number of shares:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD><FONT size="2">&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><FONT size="2">&nbsp;</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">(r)</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>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><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><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
    <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">(r)</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>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><HR size="4" noshade></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">
<I><FONT size="2">The accompanying notes are an integral part of
these financial statements.</FONT></I>

<P align="center"><FONT size="2">69
</FONT>

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

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

<DIV align="center">
<B><FONT size="2">Unaudited Pro Forma Combined Income
Statement</FONT></B>
</DIV>

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

<TR>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="25%"><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>
    <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="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="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="5%"><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="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>
</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">Nine Months Ended March&nbsp;31, 2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pro forma</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pro forma</FONT></B></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">adjustments&#151;</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">adjustments&#151;</FONT></B></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">excluded</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">transition to a</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Adjustments for</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pro forma</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Historical</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">operations(a)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">corporate structure</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pro forma</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">the offerings</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">as adjusted</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, except per share data)</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="1">Revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,005,260</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(223,643</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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,781,617</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Cost of services
    </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">2,524,357</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">(201,967</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">331,429</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(b)</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">2,672,562</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 colspan="2"><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 align="right" valign="bottom" nowrap><FONT size="1">24,477</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(c)</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 colspan="2"><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 align="right" valign="bottom" nowrap><FONT size="1">(5,734</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)(d)</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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Reimbursables and subcontractor costs
    </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">1,041,011</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">(14,996</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">1,026,015</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 colspan="2"><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 align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Total cost of services
    </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">3,565,368</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">(216,963</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">350,172</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">3,698,577</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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Selling, general and administrative 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">965,839</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">(48,951</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">58,487</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(b)</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">948,447</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="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(q)</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 colspan="2"><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 align="right" valign="bottom" nowrap><FONT size="1">4,320</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(c)</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 colspan="2"><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 align="right" valign="bottom" nowrap><FONT size="1">(18,178</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)(d)</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 colspan="2"><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 align="right" valign="bottom" nowrap><FONT size="1">(13,070</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)(e)</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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Goodwill 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">44,817</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">(3,997</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">40,820</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 colspan="2"><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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Operating income
    </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">429,236</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">46,268</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">(381,731</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">93,773</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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Interest income
    </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">4,544</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</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">4,539</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 colspan="2" 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">(33,616</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">1,476</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">24,955</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(g)</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">(7,185</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><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(o)</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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">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">98</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">98</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 colspan="2"><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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Income 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">400,262</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">47,739</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">(356,776</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">91,225</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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Provision for income taxes
    </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 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">66,765</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(e)</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">66,765</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="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(o)(q)</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 colspan="2"><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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Income before minority interest
    </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">400,262</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">47,739</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">(423,541</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">24,460</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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Minority interest
    </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 align="left" valign="bottom" nowrap><FONT size="1">(m)</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><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(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><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Income before partner distributions and benefits
    </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">400,262</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 colspan="2"><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><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 colspan="2" 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><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"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">47,739</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(423,541</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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">24,460</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><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"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><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="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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Earnings per share:
    </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 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><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 align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(r)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><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 align="left"><HR size="4" noshade></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">diluted
    </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 align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(r)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><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 align="left"><HR size="4" noshade></TD>
    <TD><FONT size="1">&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="1">Weighted average number of shares:
    </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 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><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 align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(r)</FONT></TD>
</TR>

<TR>
    <TD colspan="2"><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 align="left"><HR size="4" noshade></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">diluted
    </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 align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(r)</FONT></TD>
</TR>

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

</TR>

</TABLE>
</CENTER>

<P align="center">
<I><FONT size="2">The accompanying notes are an integral part of
these financial statements.</FONT></I>

<P align="center"><FONT size="2">70
</FONT>

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

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

<DIV align="center">
<B><FONT size="2">Unaudited Pro Forma Combined Balance
Sheet</FONT></B>
</DIV>

<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="26%"><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="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="5%"><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="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="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="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>
</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">As of March&nbsp;31, 2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="23" 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>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pro forma</FONT></B></TD>
    <TD></TD>
    <TD colspan="11"></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">adjustments&#151;</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">adjustments&#151;</FONT></B></TD>
    <TD></TD>
    <TD colspan="11"></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">excluded</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">transition to a</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Adjustments for</FONT></B></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">Historical</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">operations(a)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">corporate structure</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pro forma</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">the offerings</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>
    <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)</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">Assets</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 colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Current assets
    </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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Cash and cash equivalents
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">115,193</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(41,462</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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">73,731</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(o)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</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><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 align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(p)</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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Short-term investments
    </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">13,724</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">13,724</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">Accounts receivable
    </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">1,013,310</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">(43,604</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">969,706</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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Unbilled receivables
    </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">188,774</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">(2,179</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">186,595</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">Amounts due from the PwC&nbsp;Network
    </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">58,024</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">(62</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">(57,962</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)(g)</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><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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Prepaid and other current assets
    </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">108,566</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">(5,085</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">103,481</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">Deferred tax assets
    </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">188,754</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(f)</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">223,457</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">34,703</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(i)</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><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 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><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Total current assets
    </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">1,497,591</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">(92,392</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">165,495</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">1,570,694</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 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">Investments
    </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">4,746</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">4,746</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">Property and equipment, net
    </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">145,451</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">(23,584</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">121,867</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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Goodwill, net
    </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">117,908</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">(25,134</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">92,774</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">Other non-current assets
    </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">41,472</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">(5,761</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">35,711</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="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(o)</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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Deferred tax assets
    </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">12,600</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(c)</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">12,600</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="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(q)</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(f)</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(q)</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 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><FONT size="1">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Total non-current assets
    </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">309,577</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">(54,479</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">12,600</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">267,698</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 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><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">Total assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,807,168</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(146,871</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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">178,095</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,838,392</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</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 colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="1">Liabilities and PwC Network investment and
    Shareholders&#146; Equity</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 valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Current liabilities
    </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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Accounts payable and accrued liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">183,106</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(30,900</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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">6,500</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(h)</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">241,706</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">66,000</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(j)</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">17,000</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(f)</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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Accrued payroll and related benefits
    </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">95,183</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">(6,765</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">86,757</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(i)</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">175,175</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(q)</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(q)</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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Short-term bank borrowings
    </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">71,611</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">(28,485</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">43,126</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">Current portion of long-term debt
    </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">4,103</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">(800</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">3,303</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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Amounts due to the PwC Network
    </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">891,505</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">(28,924</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">(345,821</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)(g)</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">516,760</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 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><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">Total current liabilities
    </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">1,245,508</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">(95,874</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">(169,564</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">980,070</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 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 colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Long-term liabilities
    </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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Long-term debt
    </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">52,455</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">(20,773</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">31,682</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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Monday Finance SA&nbsp;senior notes due 2008
    </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><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(o)</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">Other long-term liabilities
    </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">79,950</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">(318</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">79,632</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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Retirement benefits
    </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">31,499</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(c)</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">31,499</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">Deferred tax liabilities
    </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">28,546</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(f)</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">28,546</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 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><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">Total long-term liabilities
    </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">132,405</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">(21,091</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">60,045</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">171,359</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 colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">PwC Network investment
    </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">429,255</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">(29,906</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">287,859</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(g)</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><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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">(12,038</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)(l)</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">(675,170</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)(k)</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 colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Shareholders&#146; equity
    </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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Class&nbsp;I common shares(w)
    </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">&#151;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(n)</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><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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Class&nbsp;II common shares(x)
    </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">&#151;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(n)</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><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">Restricted share units (related to Class&nbsp;A
    common shares)(v)
    </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 align="right" valign="bottom" nowrap>&nbsp;<FONT size="1">(q</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><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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Restricted Class&nbsp;A common shares
    </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 align="right" valign="bottom" nowrap>&nbsp;<FONT size="1">(q</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><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">Deferred compensation
    </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 align="right" valign="bottom" nowrap>&nbsp;<FONT size="1">(q</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><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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Additional paid-in capital
    </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">(31,499</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)(c)</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">556,914</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="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(p)</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(f)</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">(86,757</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)(i)</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">675,170</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(k)</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">&#151;&nbsp;(n</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><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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(q)</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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Retained earnings
    </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">12,600</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(c)</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">118,011</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">143,208</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(f)</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">(6,500</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)(h)</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">34,703</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(i)</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">(66,000</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)(j)</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 colspan="4"><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 align="right" valign="bottom" nowrap><FONT size="1">&#151;&nbsp;(q</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><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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Accumulated other comprehensive income
    </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">12,038</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(l)</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">12,038</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 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><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">Total shareholders&#146; equity
    </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">686,963</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">686,963</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 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><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">Total liabilities and shareholders&#146; equity
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,807,168</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(146,871</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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">178,095</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,838,392</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</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>

</TABLE>
</CENTER>

<P align="center">
<I><FONT size="2">The accompanying notes are an integral part of
these financial statements.</FONT></I>

<P align="center"><FONT size="2">71
</FONT>

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

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

<DIV align="center">
<B><FONT size="2">Unaudited Pro Forma Combined Income
Statement</FONT></B>
</DIV>

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

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="27%"><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>
    <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="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="3%"><FONT size="2">&nbsp;</FONT></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">Fiscal Year Ended June 30, 2001</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><HR size="1" noshade></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">Pro forma</FONT></B></TD>
    <TD></TD>
    <TD colspan="11"></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">adjustments&#151;</FONT></B></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pro forma</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">transition</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Adjustments</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">adjustments&#151;</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">to a</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">for</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">excluded</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">corporate</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">the</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pro forma</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Historical</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">operations(a)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">structure</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pro forma</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">offerings</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">as adjusted</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, except per share data)</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">Revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,481,003</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(332,861</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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,148,142</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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cost of services
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,825,639</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(300,818</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">442,088</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="2">(b)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,000,396</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32,111</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="2">(c)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,376</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="2">(d)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">Reimbursables and subcontractor 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">1,516,429</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(16,703</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">1,499,726</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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>

</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 cost of services
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,342,068</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">(317,521</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">475,575</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">5,500,122</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">Selling, general and administrative 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">1,586,126</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(82,992</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">78,016</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="2">(b)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,502,268</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <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>&nbsp;<FONT size="2">(q)</FONT></TD>
    <TD><FONT size="2">&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><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,667</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="2">(c)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(56,549</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)(d)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(28,000</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)(e)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">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">57,007</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(5,396</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">51,611</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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>

</TR>

<TR>
    <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">495,802</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">73,048</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(474,709</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">94,141</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">Interest 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">2,553</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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">2,553</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">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">(58,553</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">2,996</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">39,764</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="2">(g)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(15,793</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 align="left" valign="bottom" nowrap><FONT size="2">(o)</FONT></TD>
    <TD><FONT size="2">&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">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">(15,618</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">(15,618</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>
</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>

</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">424,184</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">76,044</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(434,945</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">65,283</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">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">&#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">85,595</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="2">(e)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">85,595</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <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">(o)(q)</FONT></TD>
    <TD><FONT size="2">&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>

</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income before partner distributions and benefits
    </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">424,184</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">Net income (loss)
    </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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">76,044</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(520,540</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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(20,312</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD 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>
    <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">
<I><FONT size="2">The accompanying notes are an integral part of
these financial statements.</FONT></I>

<P align="center"><FONT size="2">72
</FONT>

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

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

<DIV align="center">
<B><FONT size="2">Unaudited Pro Forma Combined Income
Statement</FONT></B>
</DIV>

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

<TR>
    <TD width="3%"><FONT size="1">&nbsp;</FONT></TD>
    <TD width="25%"><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>
    <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="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="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="5%"><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="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>
</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">Nine Months Ended March&nbsp;31, 2002</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="23" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pro forma</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pro forma</FONT></B></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">adjustments&#151;</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">adjustments&#151;</FONT></B></TD>
    <TD></TD>
    <TD colspan="11"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">excluded</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">transition to a</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Adjustments for</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pro forma</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Historical</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">operations(a)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">corporate structure</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pro forma</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">the offerings</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">as adjusted</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, except per share data)</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="1">Revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">5,005,260</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(223,643</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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">&#151;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">4,781,617</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Cost of services
    </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">2,524,357</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">(201,967</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">331,429</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(b)</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">2,672,562</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 colspan="2"><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 align="right" valign="bottom" nowrap><FONT size="1">24,477</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(c)</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 colspan="2"><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 align="right" valign="bottom" nowrap><FONT size="1">(5,734</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)(d)</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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Reimbursables and subcontractor costs
    </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">1,041,011</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">(14,996</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">1,026,015</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 colspan="2"><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 align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Total cost of services
    </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">3,565,368</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">(216,963</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">350,172</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">3,698,577</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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Selling, general and administrative 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">965,839</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">(48,951</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">58,487</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(b)</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">948,447</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="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(q)</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 colspan="2"><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 align="right" valign="bottom" nowrap><FONT size="1">4,320</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(c)</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 colspan="2"><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 align="right" valign="bottom" nowrap><FONT size="1">(18,178</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)(d)</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 colspan="2"><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 align="right" valign="bottom" nowrap><FONT size="1">(13,070</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="1">)(e)</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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Goodwill 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">44,817</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">(3,997</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">40,820</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 colspan="2"><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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Operating income
    </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">429,236</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">46,268</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">(381,731</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">93,773</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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Interest income
    </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">4,544</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</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">4,539</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 colspan="2" 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">(33,616</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">1,476</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">24,955</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(g)</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">(7,185</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><FONT size="1">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(o)</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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">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">98</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">98</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 colspan="2"><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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Income 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">400,262</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">47,739</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">(356,776</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">91,225</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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Provision for income taxes
    </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 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">66,765</FONT></TD>
    <TD align="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(e)</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">66,765</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="left" valign="bottom" nowrap>&nbsp;<FONT size="1">(o)(q)</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 colspan="2"><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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Income before partner distributions and benefits
    </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">400,262</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 colspan="2"><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><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 colspan="2" 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><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"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">47,739</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">(423,541</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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">24,460</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><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"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
</TR>

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

</TABLE>
</CENTER>

<P align="center">
<I><FONT size="2">The accompanying notes are an integral part of
these financial statements.</FONT></I>

<P align="center"><FONT size="2">73
</FONT>

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

<P align="center">
<B><FONT size="2">NOTES TO UNAUDITED PRO FORMA COMBINED
FINANCIAL STATEMENTS</FONT></B>

<P align="center">
<B><FONT size="2">(unaudited)</FONT></B>

<DIV align="center">
<B><FONT size="2">(in thousands, except share and per share
data)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Monday Ltd currently has no material assets other
than Class&nbsp;I and Class&nbsp;II common shares in its
subsidiary, Monday SCA. As the sole general partner of Monday
SCA and as a result of its majority voting and economic interest
in Monday SCA, Monday Ltd will control Monday SCA&#146;s
management and operations and, accordingly, will consolidate
Monday SCA&#146;s results in its financial statements. Monday
Ltd&#146;s and Monday SCA&#146;s transition to a corporate
structure will be accounted for on a carryover basis.
</FONT>
<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">(a)&nbsp;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Reflects adjustments necessary to remove the
    historical results of operations and assets and liabilities of
    the business process outsourcing operations and the management
    consulting and technology services businesses of firms in the
    PricewaterhouseCoopers network that are not being transferred to
    us as part of our separation.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD><FONT size="2">(b)&nbsp;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Reflects adjustments for compensation and benefit
    costs totaling $389,916 and $520,104 for the nine months ended
    March&nbsp;31, 2002, and for the fiscal year ended June&nbsp;30,
    2001, respectively, that we would have paid to our partners
    under our new compensation structure had we been a corporation
    during the historical periods. Benefit costs are medical, dental
    and payroll taxes, all of which are based on estimated costs
    that would have been incurred had these benefits been in place
    during the historical periods. As we have operated in historical
    periods as a series of separate partnerships and corporations,
    compensation for our partners was not reflected in our combined
    income statements before partner distributions and benefits as
    an expense. As a result, our compensation and benefits expense
    has not reflected most payments for services rendered by
    partners. Following the closing of the concurrent offerings, we
    will include payments for services rendered by our partners in
    compensation and benefits expense. The new compensation
    structure to be adopted by us upon completion of the concurrent
    offerings is comprised of both cash and equity components and a
    benefits program to be adopted as of the closing of the
    concurrent offerings. The cash component will consist of a fixed
    element and a variable cash incentive element. The fixed and
    variable elements of the cash component and the benefits have
    been reflected in these adjustments. Compensation does not
    include the fair value of fully vested restricted share units
    representing Class&nbsp;A common shares to be granted at the
    time of the concurrent offerings to all of our partners because
    of their nonrecurring nature.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Compensation and benefit costs of partners have
    been allocated 85% to cost of services and 15% to selling,
    general and administrative expense for the nine months ended
    March&nbsp;31, 2002 and for the fiscal year ended June&nbsp;30,
    2001, based upon the estimated number of partners involved in
    each activity.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD><FONT size="2">(c)&nbsp;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Reflects an adjustment for pension expense
    totalling $28,797 and $37,778 for the nine months ended
    March&nbsp;31, 2002, and for the fiscal year ended June&nbsp;30,
    2001, respectively, under our partner pension plans that we plan
    to implement following the closing of the concurrent offerings.
    The specific terms of these plans, which may vary based on local
    legal requirements, have not yet been finalized. We have,
    however, determined the aggregate cost of these plans, which we
    do not expect to materially change as we finalize the terms of
    these plans. We would have incurred this expense with respect to
    our partners had we been a separate public company during the
    historical periods. Since we have operated in historical periods
    as a series of separate partnerships and corporations, pension
    payments to our partners was not reflected in our combined
    income statements before partner distributions and benefits as
    an expense. As a result, our compensation and benefits expense
    has not reflected most payments for pension benefits paid to our
    partners. Following the closing of the concurrent offerings, we
    will include pension costs for our partners in compensation and
    benefits expense. An adjustment of $31,499 was made to recognize
    a pension liability for certain of our partners covered by
    existing pension plans that will be transferred to us in
    connection with our separation. A deferred income tax asset of
    $12,600 has been recorded related to these accrued benefits.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">74
</FONT>

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

<DIV align="center">
<B><FONT size="2">NOTES TO UNAUDITED PRO FORMA COMBINED
FINANCIAL STATEMENTS&#151;(Continued)</FONT></B>
</DIV>
<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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Partner pension expense has been allocated 85% to
    cost of services and 15% to selling, general and administrative
    expense for the nine months ended March&nbsp;31, 2002 and for
    the fiscal year ended June&nbsp;30, 2001, based upon the
    estimated number of partners involved in each activity.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD><FONT size="2">(d)&nbsp;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">We currently receive services from various firms
    in the PricewaterhouseCoopers network for which costs are
    incurred and accumulated and charged to us and the other
    businesses conducted by the PricewaterhouseCoopers firms using
    an allocation methodology. These services include infrastructure
    and support services such as occupancy, technology services,
    knowledge management, human resources, training, finance and
    accounting information services, marketing and business
    development, risk management and practice protection and
    firm-wide management. Most of these costs are included within
    our selling, general and administrative expenses. Prior to
    July&nbsp;1, 2001, our share of these costs was allocated to us
    using various bases including relative revenues, headcount,
    square footage and other measures. Beginning July&nbsp;1, 2001,
    we entered into arrangements with the PricewaterhouseCoopers
    firms to allocate these costs differently. Under these
    arrangements, the PricewaterhouseCoopers network allocates costs
    to us on the basis of actual costs, when available, or a
    reasonable substitute, such as relative revenues, headcount,
    square footage or other bases.
    </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></TD>
    <TD align="left">
    <FONT size="2">Prior to our separation from the
    PricewaterhouseCoopers network of firms, we or our subsidiaries
    will enter into a number of agreements relating to some of our
    basic processing and infrastructure services that the
    PricewaterhouseCoopers firms will provide to us. These
    agreements will take effect following our separation for periods
    of up to three years. In general, we will be provided these
    services at the cost incurred by the various
    PricewaterhouseCoopers firms in providing these services, which
    we believe is consistent with the bases upon which costs have
    been allocated to us since July&nbsp;1, 2001.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    <FONT size="2">The types of services we will continue to receive
    include infrastructure, technology solutions, knowledge
    management, human resources, training, finance and accounting
    information services and other services. In general, we will be
    able to terminate our agreements with the PricewaterhouseCoopers
    firms on relatively short notice, but we may face termination
    costs in some circumstances. Please see &#147;Arrangements with
    the PricewaterhouseCoopers Network of Firms&#151;Transition
    Services Agreements&#148; for a description of the terms and
    conditions of these agreements.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    <FONT size="2">The cost of services to be incurred after our
    separation are expected to approximate the cost of services
    charged under the arrangements in effect from July&nbsp;1, 2001,
    to the completion of this offering and be less than the service
    costs incurred under the arrangements prior to July&nbsp;1,
    2001. The total decrease in costs is $35,563, ($4,556) of which
    reflects an increase in cost of services and $40,119 of which
    reflects a decrease in selling, general and administrative costs
    for the year ended June&nbsp;30, 2001.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    <FONT size="2">Our business process management services business
    has historically operated on a stand-alone basis and has
    separately incurred and recorded technology services, human
    resources, finance and accounting, marketing and business
    development, risk management and practice protection costs. In
    addition, we have been charged for firm-wide management,
    technology services, human resources, finance and accounting,
    marketing and business development, risk management and practice
    protection services by the PricewaterhouseCoopers network of
    firms based on an allocation methodology. Because some of these
    allocated costs fully duplicate costs allocated to the other
    management consulting and technology services businesses and our
    business process management services business will no longer be
    charged for these costs under the transition services agreements
    upon our separation from the PricewaterhouseCoopers network of
    firms, we have made a pro forma adjustment to eliminate such
    duplicate allocated costs amounting to $23,912 ($5,734 related
    to cost of services, $18,178 related to selling, general and
    administrative costs) and $19,610 ($3,180 related to cost of
    services, $16,430 related to selling, general and administrative
    costs) for the nine months ended March&nbsp;31, 2002, and for
    the fiscal year ended June&nbsp;30, 2001, respectively.
    </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">(e)&nbsp;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Reflects an adjustment for an estimated income
    tax provision as if we had operated in a corporate structure.
    Pro forma income tax totals $66,765 and $85,595 for the nine
    months ended March&nbsp;31, 2002, and for the fiscal year ended
    June&nbsp;30, 2001, respectively, after pro forma adjustments to
    eliminate actual
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">75
</FONT>

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

<DIV align="center">
<B><FONT size="2">NOTES TO UNAUDITED PRO FORMA COMBINED
FINANCIAL STATEMENTS&#151;(Continued)</FONT></B>
</DIV>
<P>

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

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD align="left">
    <FONT size="2">entity-level taxes incurred prior to our
    separation for the nine months ended March&nbsp;31, 2002, and
    the fiscal year ended June&nbsp;30, 2001, of $13,070 and
    $28,000, respectively. The pro forma effective income tax rate
    reflects a number of non-deductible items, including goodwill
    amortization expense, the non-deductible portion of meals and
    entertainment expense and non-deductible operating losses. As a
    series of separate partnerships and corporations, we generally
    were not subject to income taxes. However, some countries were
    subject to income taxes in their local jurisdictions, which
    historically have been reflected in selling, general and
    administrative costs. The effective tax rate in the periods
    presented would not be materially affected if we were organized
    in the United States instead of Bermuda. If Monday Ltd were
    organized in the United States instead of Bermuda, we estimate
    that we would have incurred additional tax expense of $344 and
    $478 for the fiscal year ended June&nbsp;30, 2001, and the nine
    months ended March&nbsp;31, 2002, respectively. As a result, pro
    forma as adjusted tax expense would have been
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;for
    the fiscal year ended June&nbsp;30, 2001, and the nine months
    ended March&nbsp;31, 2002, respectively.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD><FONT size="2">(f)&nbsp;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Reflects an adjustment to establish deferred
    income tax assets and liabilities and current income taxes
    payable in connection with the transition to a corporate
    structure. Adjustment includes $188,754 related to future
    current income tax benefits, $28,546 related to future
    non-current income tax liabilities and $17,000 of current income
    taxes payable that resulted from our transition to a corporate
    structure. An adjustment of
    $&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;relates
    to future income tax benefits arising from our separation from
    the PricewaterhouseCoopers network of firms.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD><FONT size="2">(g)&nbsp;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Reflects an adjustment of $345,821 for the
    retention by the PricewaterhouseCoopers network of firms of debt
    included in amounts due to the PwC Network and an adjustment of
    $57,962 for the termination of amounts due from the PwC Network.
    In addition, an adjustment to eliminate $24,955 and $39,764 for
    the nine months ended March&nbsp;31, 2002, and for the fiscal
    year ended June&nbsp;30, 2001, respectively, of related interest
    expense. We expect to enter into new credit facilities following
    the concurrent offerings. However, we believe that our cash flow
    from operations, cash transferred to us as part of our
    separation and net proceeds from this offering will be
    sufficient to meet our cash needs for the twelve months after
    separation. Amounts will remain due to the
    PricewaterhouseCoopers firms related to accounts payable,
    accrued payroll and other accrued liabilities after our
    separation.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD><FONT size="2">(h)&nbsp;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Reflects an adjustment for estimated transaction
    costs totaling $6,500 consisting primarily of indirect taxes
    such as capital and stamp duty imposed on the transfer of assets
    in connection with our transition to a corporate structure.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD><FONT size="2">(i)&nbsp;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Reflects an adjustment to recognize accrued
    benefits for our partners consisting of accrued vacation of
    $55,000 and accrued severance of $31,757 upon our separation. A
    deferred income tax asset of $34,703 has been recorded related
    to these accrued benefits.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD><FONT size="2">(j)&nbsp;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Reflects a net adjustment of $66,000 for the
    estimated costs totaling $110,000 to be incurred in fiscal years
    2002 and 2003 to change our name and build a new brand identity,
    net of a related reduction of current taxes payable of $44,000.
    Current taxes payable has been reduced to take account of the
    tax benefit to be realized when the costs associated with
    rebranding are incurred. The unaudited pro forma combined income
    statements do not reflect any significant costs associated with
    rebranding expenses as no material costs relating to rebranding
    were incurred in the periods presented.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD><FONT size="2">(k)&nbsp;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Reflects the transfer of $675,170 from PwC
    Network investment to additional paid-in capital.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD><FONT size="2">(l)&nbsp;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Reflects adjustment of $12,038 to transfer
    accumulated other comprehensive income, which principally is
    comprised of foreign currency translation adjustments and
    unrealized gains and losses on available for sale securities,
    from PwC Network investment to shareholders&#146; equity.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD><FONT size="2">(m)&nbsp;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Reflects an initial
    assumed &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% minority interest
    ownership for Class&nbsp;I common shares in Monday SCA held by
    or on behalf of our partners, firms in the
    PricewaterhouseCoopers network and partners and shareholders of
    some other firms in the network, if applicable, and for
    exchangeable shares issued by a subsidiary of Monday SCA held by
    our partners located in Canada immediately prior to the closing
    of this offering. The minority interest percentage will be
    reduced to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% because
    Monday Ltd will exchange its Class&nbsp;A common shares for most
    of the outstanding Monday SCA Class&nbsp;I common shares
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">76
</FONT>

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

<DIV align="center">
<B><FONT size="2">NOTES TO UNAUDITED PRO FORMA COMBINED
FINANCIAL STATEMENTS&#151;(Continued)</FONT></B>
</DIV>
<P>

<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 align="left">
    <FONT size="2">other than those held by or on behalf of our
    partners, on a one-for-one basis immediately prior to the
    closing of this offering. In addition, Monday SCA will redeem
    the Monday SCA Class&nbsp;I common shares held by the
    PricewaterhouseCoopers firm, or its partners or shareholders, in
    Spain immediately after the closing of this offering at a price
    per share equal to the initial offering price of Monday
    Ltd&#146;s Class&nbsp;A common shares. Also reflects the assumed
    issuance to Monday Ltd of
    the &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Monday SCA Class&nbsp;I
    common shares that will be issued in connection with the
    delivery of
    the &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Monday
    Ltd Class&nbsp;A common shares
    underlying &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;fully
    vested restricted share units for purposes of the pro forma
    minority interest and earnings per share calculations. The
    amount of the adjustment reflected on the unaudited pro forma
    combined balance sheet is net of the increase in book value that
    results from our separation from the PricewaterhouseCoopers
    network of firms.
    </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">(n)&nbsp;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Reflects the issuance
    of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class&nbsp;A
    common shares
    and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class&nbsp;X
    common shares in Monday Ltd to PricewaterhouseCoopers firms or
    their partners or shareholders in the Monday Ltd unaudited pro
    forma&nbsp;combined balance sheet.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Reflects the issuance
of &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;Class&nbsp;I
common shares and 229 Class&nbsp;II common shares in Monday SCA
to Monday Ltd and PricewaterhouseCoopers firms or their partners
or shareholders in the Monday SCA unaudited pro forma combined
balance sheet.
</FONT>
<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">(o)&nbsp;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Adjustment to record issuance of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
    Monday Finance SA Senior Notes due 2008 to the public, which
    results in net proceeds of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
    an estimated related interest expense of 5.75%, plus
    amortization of debt issuance costs which will be amortized over
    6&nbsp;years, of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;for
    the nine months ended March&nbsp;31, 2002, and for the fiscal
    year ended June&nbsp;30, 2001, respectively.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD><FONT size="2">(p)&nbsp;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Adjustment to record cash payments totaling
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to
    PricewaterhouseCoopers firms, or their partners or shareholders.
    This amount includes a payment to the PricewaterhouseCoopers
    firm in India in exchange for its management consulting and
    technology services business and the redemption of the Monday
    SCA Class&nbsp;I common shares held by the
    PricewaterhouseCoopers firm, or its partners or shareholders, in
    Spain immediately following the closing of this offering. It
    also reflects payments to various PricewaterhouseCoopers firms
    that do not have, or are not transferring to us, a management
    consulting and technology services business in exchange for
    entering into a noncompetition agreement with us. Although we
    have not yet entered into a noncompetition agreement with any of
    these firms, the adjustment reflects the assumption that we will
    enter into a noncompetition agreement with each of these firms.
    </FONT></TD>
</TR>

</TABLE>
<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;(q)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Adjustment reflects the grant of restricted share
    units and restricted shares and the sale of Class&nbsp;A common
    shares to our partners and directors. We recognize compensation
    expense for share-based compensation awards in accordance with
    Accounting Principles Board Opinion No.&nbsp;25,
    &#147;Accounting for Stock Issued to Employees.&#148; Under the
    measurement principles of APB No.&nbsp;25 and Financial
    Interpretation Number&nbsp;44, &#147;Accounting for Certain
    Transactions Involving Stock Compensation&#151; an
    Interpretation of APB&nbsp;25,&#148; we will recognize
    compensation expense of $117,000
    (&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;restricted
    share units that vest upon grant
    and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class&nbsp;A
    common shares sold at nominal value, based upon the assumed
    initial offering price of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share plus
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in
    payroll taxes) and a deferred income tax benefit of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.
    Monday Ltd will also
    issue &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;restricted
    shares to its new Chief Executive Officer and Chief Financial
    and Administrative Officer and our other executive management in
    respect of future services. These restricted shares will vest
    pro-rata over three years and will be expensed over the vesting
    period. See &#147;Management&#151; Partner Compensation&#148;
    for a more detailed description of our partner compensation.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">77
</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">NOTES TO UNAUDITED PRO FORMA COMBINED
FINANCIAL STATEMENTS&#151;(Continued)</FONT></B>
</DIV>
<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;(r)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">For the purposes of the pro forma earnings per
    share calculation in the Monday Ltd unaudited pro forma combined
    income statement, the weighted average shares outstanding, basic
    and diluted, were calculated as set forth below:
    </FONT></TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="70%" 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="15"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><B><FONT size="1">Pro forma as adjusted</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><HR size="1" noshade></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">Fiscal Year Ended</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Nine Months Ended</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">June&nbsp;30, 2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">March&nbsp;31, 2002</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 align="center" nowrap><B><FONT size="1">Common share issuances</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Basic</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Diluted</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Basic</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Diluted</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>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Class&nbsp;A common shares
    </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 align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Monday SCA Class I common shares
    </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 align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Exchangeable shares
    </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 align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Restricted Class&nbsp;A common shares
    </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 align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Restricted share units (relating to Class&nbsp;A
    common shares)
    </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 align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Class&nbsp;A common share 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>
</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>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD 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><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>

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

<TR>
    <TD width="4%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">Basic and diluted earnings per share in the
    Monday Ltd unaudited pro forma combined income statement are
    calculated as set forth below:
    </FONT></TD>
</TR>

</TABLE>

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

<TR>
    <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="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="8%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

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

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Pro forma as adjusted</FONT></B></TD>
</TR>

<TR>
    <TD></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">Nine Months</FONT></B></TD>
</TR>

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

<TR>
    <TD align="center" nowrap><B><FONT size="1">Basic earnings per share</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">June 30, 2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">March 31, 2002</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>
</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">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</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">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>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Basic earnings per share
    </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>
</TR>

</TABLE>
</CENTER>

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

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="52%"><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>
    <TD width="3%"><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="7%"><FONT size="2">&nbsp;</FONT></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">Pro forma as adjusted</FONT></B></TD>
</TR>

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

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

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Diluted earnings per share</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">June&nbsp;30, 2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">March&nbsp;31, 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 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">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Adjustments:
    </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 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">Minority interest
    </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" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income (loss) before minority interest
    </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 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>
</TR>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Diluted earnings per share
    </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>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">78
</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">NOTES TO UNAUDITED PRO FORMA COMBINED
FINANCIAL STATEMENTS&#151;(Continued)</FONT></B>
</DIV>
<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;(s)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Reflects 1,000,000,000 shares authorized,
    zero&nbsp;shares issued and outstanding and zero shares issued
    and outstanding pro forma and zero shares issued and outstanding
    pro forma as adjusted.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD><FONT size="2">&nbsp;(t)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Reflects par value of $0.0001 per share,
    2,000,000,000 shares
    authorized, &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
    issued and outstanding pro forma
    and &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
    issued and outstanding pro forma as adjusted.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD><FONT size="2">&nbsp;(u)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Reflects par value of $0.0001 per share,
    2,000,000,000 shares
    authorized, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    issued and outstanding pro forma
    and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    issued and outstanding pro forma as adjusted.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD><FONT size="2">&nbsp;(v)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Reflects &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;restricted
    share units issued and outstanding pro forma as adjusted.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD><FONT size="2">&nbsp;(w)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Reflects par value of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares
    authorized, &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
    issued and outstanding pro forma
    and &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
    issued and outstanding pro forma as adjusted.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD><FONT size="2">&nbsp;(x)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Reflects par value of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share, 229&nbsp;shares authorized, 229&nbsp;shares issued and
    outstanding pro forma and 229&nbsp;shares issued and outstanding
    pro forma as adjusted.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">79
</FONT>
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">RATIO OF EARNINGS TO FIXED CHARGES
AND</FONT></B>

<DIV align="center">
<B><FONT size="2">PRO FORMA RATIO OF EARNINGS TO FIXED
CHARGES</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table shows the ratio of earnings
to fixed charges and the pro forma ratio of earnings to fixed
charges for Monday SCA and its subsidiaries on a consolidated
basis. The following table does not show the ratio of earnings
to fixed charges for Monday Finance SA on a stand-alone basis
because it is not meaningful.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The pro forma ratio of earnings to fixed charges
was derived from our audited and unaudited financial statements
and was prepared as if our separation and the related
transactions had occurred as of July&nbsp;1, 2000. The pro forma
ratio of earnings to fixed charges is illustrative only and does
not purport to represent what the ratio of earnings to fixed
charges actually would have been had our separation and related
transactions occurred on the dates indicated or what Monday
SCA&#146;s future performance as a separate public company will
be. The pro forma ratio of earnings to fixed charges give pro
forma effect to a number of items including 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">
    <FONT size="2">our separation and the related transactions
    described under &#147;Arrangements with the
    PricewaterhouseCoopers Network of Firms,&#148;
    </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 retention by the PricewaterhouseCoopers
    network of firms of debt included in &#147;Amounts due to the
    PwC Network&#148; in the combined financial statements,
    </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">compensation and benefits under our new
    compensation structure that we would have paid to partners had
    we been a corporation in the historical 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">the exclusion of the financial results of the
    management consulting and technology services businesses of
    PricewaterhouseCoopers firms that are not being transferred to
    us as part of our separation, which are not material to 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">the concurrent offerings.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For purposes of computing the ratio of earnings
to fixed charges and pro forma earnings to fixed charges:
</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">earnings for the nine months ended March&nbsp;31,
    2001 and 2002 and the fiscal years ended June&nbsp;30, 1999,
    2000 and 2001 represent income before partner distributions and
    benefits and income taxes,
    </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">earnings on a pro forma basis for the nine months
    ended March&nbsp;31, 2002 and the fiscal year ended
    June&nbsp;30, 2001 represent income before income taxes, 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">fixed charges represent interest expense and such
    portion of rental expense which represents an appropriate
    interest factor.
    </FONT></TD>
</TR>

</TABLE>

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

<TR>
    <TD width="46%"><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="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="1%"><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="1%"><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="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="1%"><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="1%"><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="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="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>
    <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="3"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Historical</FONT></B></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="3"></TD>
    <TD></TD>
    <TD colspan="3"></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">Pro Forma</FONT></B></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>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">as adjusted</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Pro Forma</FONT></B></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">as adjusted</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1"></FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1"></FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">Historical</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Nine<BR>Months</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Year</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Ended</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Nine<BR>Months</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">Year Ended June 30,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Ended</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">March&nbsp;31,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Ended</FONT></B></TD>
</TR>

<TR>
    <TD></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">June 30,</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">March&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD></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">2001</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">2002</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 valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Ratio of earnings to fixed charges
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8.03</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7.06</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4.95</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5.31</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">6.51</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">80
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<!-- link1 "MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" -->
<DIV align="left"><A NAME="012"></A></DIV>

<P align="center">
<B><FONT size="2">MANAGEMENT&#146;S DISCUSSION AND
ANALYSIS</FONT></B>

<DIV align="center">
<B><FONT size="2">OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">You should read the following discussion in
conjunction with our unaudited pro forma combined financial
statements and related notes and our combined financial
statements and related notes. Our fiscal year ends on
June&nbsp;30. This Management&#146;s Discussion and Analysis of
Financial Condition and Results of Operations contains
forward-looking statements. Please see &#147;Disclosure
Regarding Forward-Looking Statements&#148; for a discussion of
the uncertainties, risks and assumptions associated with these
statements. Because Monday Ltd has no material activities,
assets or liabilities other than its holding in Monday SCA and
pursuant to the purchase contracts, the following Management
Discussion and Analysis of Financial Conditions and Results of
Operations also applies to Monday SCA, which has agreed to
absolutely, irrevocably and unconditionally guarantee the
payment of principal, interest, additional amounts, if any, and
premium, if any, on the senior notes issued by Monday Finance SA.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are one of the world&#146;s leading providers
of management consulting and technology services. We operate
globally with a consistent approach to serving our clients,
which allows us to execute complex engagements on a global,
regional and local basis. We principally track and manage our
business according to the following four geographic units, which
we refer to as theatres: the Americas, EMEA, Asia Pacific and
SOACAT. The countries that comprise these theatres are listed
under &#147;Business&#151;Overview.&#148; We achieve our
consistent approach through the application of our common
methodologies, training programs and our operating model. Our
client service staff in each theatre specialize in one of five
industry groups and one of seven service areas, which we refer
to as our solution areas.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Separation
from the PricewaterhouseCoopers Network of Firms</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Monday Ltd was incorporated on March&nbsp;27,
2002, and currently has no material activities, assets or
liabilities. Until our separation from the
PricewaterhouseCoopers network, which will occur immediately
prior to the closing of the concurrent Class&nbsp;A common
shares offering, our business will continue to be part of the
management consulting and technology services businesses of
firms in the PricewaterhouseCoopers network. The
PricewaterhouseCoopers network of firms is a group of separate
firms that provide various services, including accounting,
auditing and tax services as well as management consulting and
technology services, to businesses and other organizations.
Although these firms share a name, a common management oversight
team and common strategies and operational standards, most of
the firms in the PricewaterhouseCoopers network are owned by
their local partners or shareholders. As part of our separation,
management consulting and technology services businesses
representing approximately 95% of our revenues for fiscal year
2001 will be transferred to us. Excluding business process
management businesses, the management consulting and technology
services businesses not being transferred to us represented
approximately 2% of our revenues for fiscal year 2001.
PricewaterhouseCoopers firms with these businesses are being
asked to enter into noncompetition agreements with us and wind
down their management consulting and technology services
businesses that would not be allowed to compete with us pursuant
to the terms of the noncompetition agreement in exchange for a
cash payment. The business process management services
businesses that are not being transferred to us represented
approximately 3% of our revenues for fiscal year 2001. These
businesses will remain with the PricewaterhouseCoopers firms and
continue to be operated.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The aggregate number of Class&nbsp;A common
shares we will issue to these firms in connection with the
concurrent Class&nbsp;A common shares offering, or in some cases
their partners and shareholders,
is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million,
which, assuming an estimated initial public offering price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
will have an aggregate value of approximately
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;billion.
The allocation of these shares among the PricewaterhouseCoopers
firms was based upon an agreed methodology taking into account a
variety of factors, including expenses incurred by firms for the
general benefit of PricewaterhouseCoopers network of firms, the
net book value of the businesses contributed to us and the
relative value of the businesses contributed to us. In
connection with their withdrawal from their respective
PricewaterhouseCoopers firms, our partners will receive
approximately
</FONT>

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<DIV align="left">
<FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
of these Class&nbsp;A common shares, which will have an
estimated aggregate value of approximately
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million.
Approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
shares issued to one of the PricewaterhouseCoopers firms will be
purchased by us or one of our subsidiaries immediately after the
closing of the concurrent offerings, resulting in
approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
shares outstanding. For purposes of calculating the number of
Class&nbsp;A common shares and value of these shares in the
prior sentences, we have treated all shares issued by our
subsidiaries in connection with our separation, other than those
owned by Monday Ltd or its subsidiaries, as if they had been
redeemed or exchanged on a one-for-one basis for our
Class&nbsp;A common shares.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The management consulting and technology services
businesses being transferred to us are a result of a combination
on July&nbsp;1, 1998, of the Coopers &#38; Lybrand and Price
Waterhouse global accounting, tax and consulting networks. As
part of this combination, substantially all of the individual
Coopers&nbsp;&#38; Lybrand and Price Waterhouse firms merged.
The transactions did not result in a legal combination of the
separate individual firms of Coopers &#38; Lybrand and Price
Waterhouse into one legal firm on a global basis with separate
subsidiary partnerships, but rather resulted in the combination
of the various partnerships on a country-by-country or
region-by-region basis and the establishment of a network of
combined firms which sought to coordinate strategy, branding and
standards of operation on a global basis under a common
management oversight team. The various firms that make up the
PricewaterhouseCoopers network generally hold their respective
management consulting and technology services businesses as
unincorporated business units within the respective firms or, in
some cases, as subsidiary entities of the respective firms.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Because of our transition to a corporate
structure and for the reasons described in this section, the
historical financial results and assets and liabilities of the
businesses being transferred to us as part of our separation
contained in our combined financial statements do not reflect
what our financial results and assets and liabilities in the
future as a separate public company will be or what our
financial results and assets and liabilities would have been had
we been a separate public company with these businesses during
the periods presented. In addition, our combined financial
statements reflect the historical financial position, results of
operations and cash flows of all the management consulting and
technology services businesses of the PricewaterhouseCoopers
network of firms, including the businesses which will not be
owned by us. Furthermore, upon our separation, we will operate
as a public company in an environment that is different from the
environment that we have operated in during the periods
presented in our combined financial statements, particularly
with respect to the independence-related issues described below.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have discussed below some items, transactions
or situations that will affect our financial statements when we
operate as a public company and are not reflected in our
combined financial statements. In particular, in connection with
our separation and transition to a corporate structure, we will
incur charges relating to a number of nonrecurring items during
fiscal years 2002 and 2003. As a result, we expect these items
to substantially reduce our net income for fiscal years 2002 and
2003 and that this effect will be particularly significant in
the fiscal quarter ending September&nbsp;30, 2002. Please refer
to our unaudited pro forma combined financial statements and
notes to these statements for a pro forma presentation of the
financial results and assets and liabilities of our business
which gives pro forma effect to, among other things, some
aspects of our transition to a corporate structure such as
reflecting compensation and benefits to our partners, and the
exclusion of management consulting and technology services
businesses that are not being transferred to us.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Recent Trends
in Our Business</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The level of economic activity in the geographic
theatres, countries and regions we serve is the primary factor
affecting our revenues. In addition, changes in the industry and
business environment and practices of our clients drive the
demand for the management consulting and technology services we
provide. The worldwide economic downturn which began in fiscal
year 2001 has affected the operations of many of our clients
leading them to reduce their spending on management consulting
and technology services projects. In addition, since late 2000
we have faced increasing difficulty in winning new engagements
from clients that are audited by PricewaterhouseCoopers firms
due to rules and regulations regarding the independence of
accountants from audit clients and the additional attention
being paid to auditor independence as a result of
</FONT>

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<DIV align="left">
<FONT size="2">the Enron situation. These factors have
negatively impacted our results of operations for fiscal year
2001 and the first three quarters of fiscal year 2002.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the first three quarters of fiscal year 2002,
we experienced a substantial decline in the level of our new
business activity for both audit clients of
PricewaterhouseCoopers firms and non-audit clients, as measured
by bookings. Bookings is the amount we expect to realize in net
revenues over the life of an engagement for which we have
entered into a contract with our client. We believe that this
decline is primarily due to the following factors:
</FONT>
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    <FONT size="2">the impact of the Enron situation and the new
    auditor independence rules, as discussed below,
    </FONT></TD>
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    <FONT size="2">reduced demand generally for management
    consulting and technology services and
    </FONT></TD>
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    <FONT size="2">increased competition for new engagements.
    </FONT></TD>
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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Although new bookings are indicative of future
net revenues expected to be derived from our new engagements,
changes in the level of our net revenues lag changes in the
level of our new bookings. The period in which we will recognize
net revenues from a new engagement varies depending on the type
and duration of each engagement. We estimate that our net
revenues in any fiscal year, historically, have been comprised
primarily of bookings in the current fiscal year, the prior
fiscal year and, to a much lesser extent, the fiscal year
preceding the prior fiscal year. As a result, we expect the
decline in our new bookings will cause our net revenues to
decline in the last quarter of fiscal year 2002 and at least the
first quarter of fiscal year 2003 as compared to the
sequentially prior quarter. In addition, we expect that net
revenues will be lower, on a year over year basis, for at least
a few quarters after the closing of the concurrent offerings.
</FONT>

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    <TD>
    <B><I><FONT size="2">Auditor Independence Rules, the Enron
    Situation and the Impact on Our Business</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe we are experiencing the adverse
effects of the independence-related issues and the Enron
situation worldwide. We have described the auditor independence
rules, the Enron situation and more details of the impact on our
business under &#147;Auditor Independence Rules, the Enron
Situation and the Proposed SEC No-Action Letter&#148; and
&#147;Business&#151;Auditor Independence Rules, the Enron
Situation and the Impact on Our Business.&#148; We believe the
impact on our business from independence-related issues and the
Enron situation is illustrated by the difficulty we are having
obtaining new engagements in the United States, where we have
been most significantly affected to date, from audit clients of
PricewaterhouseCoopers firms, as evidenced by a recent trend in
our new bookings to these clients in our Americas theatre.
Historically, we have not identified within our bookings system,
as described below, whether a client also is an audit client of
a PricewaterhouseCoopers firm. However, in order to better
measure the effect of the auditor independence rules and the
Enron situation in the Americas theatre, we have identified the
audit or non-audit status for clients generating approximately
90% of the new bookings in the Americas theatre that have been
entered into our bookings system since July&nbsp;1, 2001. We
estimate that average monthly new bookings to clients in the
Americas theatre that we have identified as audit clients of
PricewaterhouseCoopers firms were approximately 57% lower in the
fiscal quarter ended March&nbsp;31, 2002, as compared to the six
months ended December&nbsp;31, 2001. We expect the level of new
business we are awarded from PricewaterhouseCoopers audit
clients worldwide will continue to decline through at least the
remainder of fiscal year 2002, with a possibility of reversal
beginning only after we complete our separation.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We expect that we will experience the negative
effects of independence-related issues on our revenues beyond
fiscal year 2003, primarily for three reasons. First, we believe
that it may take six to twelve months for us to reestablish our
working relationships with affected clients and identify new
opportunities to provide our services. This timing is due in
part to our clients&#146; budget cycles and the varying lead
times for obtaining engagements. Our competitors have had
opportunities to strengthen their relationships through the work
and new engagements we were denied. Second, as discussed above,
our net revenues lag new bookings. Accordingly, we will not
experience an increase in net revenues from new engagements to
PricewaterhouseCoopers audit clients after the completion of
this offering for a period of time after new bookings are made.
Third, a significant portion of our bookings in any year is from
engagements that are add-on phases to existing engagements. At
the time we close the concurrent offerings, we will have had
</FONT>

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<DIV align="left">
<FONT size="2">substantially reduced bookings from these clients
for at least seven months. As a result, net revenues in future
fiscal years will be adversely affected by depressed bookings in
fiscal year 2002 and the first part of fiscal year 2003. Our
profitability will decline if our net revenues decline and we
are unable to adequately reduce our costs.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We track the level of our new business activity
through a bookings system, which is accessible by our client
service staff on a worldwide basis. This system also tracks
potential bookings for engagements that we are pursuing. While
we use this system as an important day-to-day management tool,
it is not a financial accounting system. Future net revenues for
an engagement may not match the amount of bookings reflected in
the bookings system for a number of reasons, including
inaccurate estimates of work required to complete an engagement,
alteration in the scope of an engagement and cancellation or
termination of an engagement. Although our level of bookings is
an indication of how our business is performing, we do not
characterize our bookings, or our engagement contracts
associated with new bookings, as backlog because our engagements
can generally be cancelled or terminated on short notice.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Services
the PricewaterhouseCoopers Firms Provide to Us</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We currently receive services from various firms
in the PricewaterhouseCoopers network for which costs are
incurred and accumulated and charged to us and the other
businesses conducted by the PricewaterhouseCoopers firms using
allocation methodologies. These services include infrastructure
and support services such as occupancy, technology services and
software and processing services, knowledge management, human
resources, training, finance and accounting information
services, marketing and business development, risk management
and practice protection and firm-wide management. Most of these
costs are included in our selling, general and administrative
expenses. Prior to July&nbsp;1, 2001, our share of these costs
was allocated to us using various bases designed to estimate
actual costs, including relative revenues, headcount, square
footage and other measures. Beginning July&nbsp;1, 2001, we
entered into arrangements with the PricewaterhouseCoopers firms
to allocate these costs according to use or consumption based on
actual direct costs, when available, plus overhead costs. When
actual direct costs are not available, costs are allocated based
on an estimate of actual costs. Other firm-wide infrastructure
costs are allocated to us primarily on the basis of headcount.
The PricewaterhouseCoopers firms will no longer charge us after
our separation for the costs of services we can provide
internally or costs no longer relevant to our operations as a
separate public company.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Prior to our separation, we or our subsidiaries
will enter into a number of agreements relating to some of our
basic processing and infrastructure services that the
PricewaterhouseCoopers firms will provide to us. These
agreements will take effect following our separation for periods
of up to three years. In general, we will be provided these
services at the cost incurred by the various
PricewaterhouseCoopers network of firms in providing these
services, which we believe is consistent with the bases upon
which costs have been allocated to us since July&nbsp;1, 2001.
The types of services we will continue to receive include
infrastructure, technology solutions, knowledge management,
human resources, training, finance and accounting information
services and other services. In general, we will be able to
terminate our agreements with the PricewaterhouseCoopers firms
on relatively short notice, but we may face termination costs in
some circumstances. Please see &#147;Arrangements with the
PricewaterhouseCoopers Network of Firms&#151; Transition
Services Agreements&#148; for a description of the terms and
conditions of these agreements. Costs that have been allocated
to us in the past that will no longer be charged to us following
our separation include costs associated with firm-wide
management, risk management and practice protection, marketing
and business development, interest expense and taxes.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Accounting
Matters Relating to Our Separation and Transition to a Public
Company</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Interest Expense.
</FONT></I></B><FONT size="2">In a number of countries and
regions, the management consulting and technology services
businesses in the PricewaterhouseCoopers network are operated
through legal entities that are separate and distinct from the
other PricewaterhouseCoopers businesses in the same country or
region. In these countries or regions, some of these separate
businesses have their own long-term or short-term borrowings
from banks. We generally plan to retain or renew these
borrowings following our separation. In other countries and
regions, the PricewaterhouseCoopers firms historically have
incurred debt that has been
</FONT>

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<DIV align="left">
<FONT size="2">used to partially fund our operations, and we
have been allocated our share of the debt and corresponding
interest expense incurred by the PricewaterhouseCoopers firms.
As a public company, our interest expense may be higher or lower
than that reflected in our combined income statement before
partner distributions and benefits and will be dependent on our
future cash needs and the terms we can obtain on existing and
additional debt facilities.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Benefit Obligations.
</FONT></I></B><FONT size="2">Our partners and other employees
generally have been included in various retirement and
postretirement benefit plans as well as other employee benefit
plans, such as health insurance, sponsored by the various
PricewaterhouseCoopers firms. The cost of these plans for
employees, excluding partners, is allocated to us from the
PricewaterhouseCoopers network of firms based on headcount. This
cost is included in cost of services in our combined statements
of income before partner distributions and benefits. The costs
of these benefits for our partners are not included in our
combined statements of income before partner distributions and
benefits. The PricewaterhouseCoopers firms will retain most of
the liabilities accrued under these plans through the date of
our separation, including the retirement and post retirement
plans, for our partners and employees. The assets and
liabilities of these plans for our partners and for our
non-partner employees are not reflected in our combined balance
sheets, except the assets and liabilities of these plans for
non-partner employees in effect in Norway and Belgium, which
will be transferred to us on completion of our separation.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">There are a limited number of benefit plans
established exclusively for partners and employees of the
management consulting and technology services businesses in the
PricewaterhouseCoopers network of firms that will be transferred
to us on completion of our separation, as reflected in our
unaudited pro forma combined financial statements. We will
establish new employee benefit plans for our partners and other
employees to be in effect after the concurrent Class&nbsp;A
common shares offering. To the extent required in the future
under applicable professional accounting standards, the assets,
liabilities and costs of these plans will be recognized in our
financial statements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Income Taxes.
</FONT></I></B><FONT size="2">The majority of the management
consulting and technology services businesses being transferred
to us are currently part of entities that are organized as
partnerships. Under this structure, we have not historically
incurred significant corporate income tax since taxes related to
income earned by the partnership are the responsibility of the
individual partners. Therefore, our combined financial
statements do not reflect the current and deferred income tax
liabilities that we would have incurred as a corporation.
Historically, when we have incurred tax expense at an entity
level, we have reflected these expenses in selling, general and
administrative costs. Following our separation and our
transition to a public company, we will be subject to corporate
tax on our income and will record the related current and
deferred income tax assets or liabilities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Partnership Income before Partner
Distributions. </FONT></I></B><FONT size="2">Our combined
financial statements reflect the combination of the management
consulting and technology services businesses of partnerships
and corporations in the PricewaterhouseCoopers network of firms.
Historically, partners have received distributions of income
that include indistinguishable components of ownership and
compensation, rather than salaries. Accordingly, our combined
income statements before partner distributions and benefits do
not reflect any compensation for services rendered by our
partners. Upon the completion of our separation, partner
compensation will consist of both cash and equity components and
employee benefits under programs that will be adopted upon our
separation. The related costs generally will be reflected in our
income statement as cost of services.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Stock Options, Restricted Share Units and
Grants of Class&nbsp;A Common Shares.
</FONT></I></B><FONT size="2">At the time of the closing of the
concurrent Class&nbsp;A common shares offering, we will grant
restricted share units representing Class&nbsp;A common shares
to our partners. We also will grant Class&nbsp;A common shares,
instead of issuing restricted share units, to some of our newly
admitted partners. In addition, for regulatory reasons, we will
sell Class&nbsp;A common shares to our partners in Korea for
nominal consideration, in lieu of issuing an equivalent number
of Class&nbsp;A common shares, in connection with the transfer
to us of the management consulting and technology services
business in Korea. We will recognize compensation expense in the
first quarter of fiscal year 2003 of approximately
$117&nbsp;million from these restricted share unit awards, which
will be fully vested at
</FONT>

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<FONT size="2">the closing of this offering, and these sales of
Class&nbsp;A common stock. See &#147;Management&#151; Partner
Compensation&#148; for a description of the restricted share
unit awards. At the closing of the concurrent Class&nbsp;A
common shares offering and in the future, we plan to grant stock
options as incentives to our employees. We generally will not
recognize compensation expense upon the granting of these
options because the exercise price of these options will be
equal to the price of our Class&nbsp;A common shares at the date
of grant or because the options are not issued under a
compensation option plan. As we grant stock options, the number
of Class&nbsp;A common shares outstanding for purposes of
calculating our earnings per Class&nbsp;A common share will
increase.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Separation and Transaction Costs.
</FONT></I></B><FONT size="2">In connection with our separation,
we have incurred or will incur a number of one-time expenses in
the last two quarters of fiscal year 2002 and in fiscal years
2003 and 2004 relating to our transition to a public company. We
expect these costs to be in the range of $200&nbsp;million to
$300&nbsp;million, of which we anticipate approximately $16
million to be in fiscal year 2002. These costs relate to:
</FONT>
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    <FONT size="2">changing and marketing our new name, estimated to
    be between $100&nbsp;million to $120&nbsp;million,
    </FONT></TD>
</TR>

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

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    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
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    <FONT size="2">creating separate systems and website
    development, excluding capitalized costs, estimated to be
    between $50&nbsp;million to $100&nbsp;million,
    </FONT></TD>
</TR>

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

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    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;&nbsp;</FONT></TD>
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    <FONT size="2">infrastructure development costs, estimated to be
    between $40&nbsp;million to $60&nbsp;million and
    </FONT></TD>
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    <FONT size="2">transfer taxes, estimated to be between
    $10&nbsp;million to $20&nbsp;million.
    </FONT></TD>
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</TABLE>

<P align="left">
<FONT size="2">These amounts are based on estimates and
assumptions that management believes are reasonable. It is
possible, however, that total actual amounts may be higher or
lower.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Restructuring
Charge.</FONT></I></B><FONT size="2"> We currently are
undertaking a comprehensive review of our operations around the
world with a view toward improving our profitability and
business performance by aligning our available client service
and supporting resources more closely with market demand for our
services.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a part of our restructuring plan, we have
committed to, and have communicated and begun to implement,
plans in the fourth quarter of fiscal year 2002 for headcount
reductions in our staff in several jurisdictions in Europe, the
Middle East and Africa. We expect to record a charge of
approximately $40&nbsp;million in the fourth quarter of fiscal
year 2002 in connection with appropriately aligning our
resources. We expect that this charge will result in usage of
cash, which will be funded through an increase in amounts due to
the PricewaterhouseCoopers network of firms.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Also as a part of our restructuring plan, on a
global basis we expect to reduce the number of our partners and
other senior staff. We anticipate that we will make this
reduction through a combination of voluntary terminations,
including early retirement programs, and involuntary
terminations. This aspect of the plan will involve up to 200 of
our partners and other senior staff. We plan on completing these
steps in the first two quarters of fiscal year 2003. After this
part of our restructuring plan is finalized and we have
committed to, and have communicated and begun to implement, this
part of our plan, we expect to record a charge in the first
quarter of fiscal year 2003 estimated to be between
$60&nbsp;million to $100&nbsp;million. We expect that this
charge will result in usage of cash, which will be funded
through cash flows from operations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On an ongoing basis, we will continue to align
our resources with market demand. As we continue to evaluate
opportunities to improve our operational effectiveness, we may
from time to time take additional charges.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Expanded Service Initiatives.
</FONT></I></B><FONT size="2">We plan to grow our application
management and business process management services. Contracts
for these services generally have longer terms, generate larger
fees and require significantly greater up-front capital and
infrastructure investments than other parts of our business.
These engagements also often have contingent fee arrangements
tied to cost savings or other performance measures. These
activities will result in greater amounts of financial risk to
us resulting from:
</FONT>
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    <FONT size="2">a more complex estimation process for recognizing
    revenues on contingent fee arrangements,
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
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<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">an increased risk of change to estimates of
    engagement profitability on longer-term contracts,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">an increased credit risk associated with longer
    term contracts and
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">86
</FONT>

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<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">an amount of loss possible from an unprofitable
    engagement due to the significance of up-front capitalized costs.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our gross margin may decline as a result of the
lower margins that are customary in the outsourcing industry or
actions we take to increase market share.
</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">We believe our most critical accounting policies
or principles upon which significant judgments and estimates are
used in the preparation of our combined financial statements
include revenue recognition, the determination of allowance for
bad debts and unbilled receivables and goodwill impairment.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Revenue
Recognition.</FONT></I></B><FONT size="2"> We recognize revenues
as we perform services for our clients. Revenues are primarily
recognized based on hours worked and, where applicable,
reimbursables and subcontractor costs incurred. Periodically, we
review ongoing engagements to assess our estimates of expected
revenue per hour. If we determine that the estimated revenue per
hour has changed on an engagement, we adjust the revenues
recognized to date for the cumulative effect of the change. The
adjusted revenue per hour is then used to recognize revenues
over the remainder of the engagement. Circumstances that could
cause our revenue per hour to change 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">changes in estimates of time required to complete
    an engagement,
    </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">changes in the mix of staff expertise required
    for the engagement,
    </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">changes in or amendments to the engagement
    contract, 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">changes in other circumstances.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our long-term business process management
services contracts represent approximately 1%, 3% and 7% of our
revenues for the years ending June&nbsp;30, 1999, 2000 and 2001,
respectively, and 7% and 8% for the nine months ended
March&nbsp;31, 2001 and 2002, respectively. These revenues are
recognized as services are performed in accordance with the
engagement contracts. Where estimated cost of services are
expected to exceed estimated total revenues of the contract, we
recognize a loss at that time. Business process management
services contracts are generally large, multi-year duration
contracts.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have a few contracts where an insignificant
amount of revenues is contingent on achievement of a milestone,
such as cost savings.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Allowance for Bad
Debts.</FONT></I></B><FONT size="2"> We record an allowance for
uncollectible accounts receivable based on their age and
specific identification. Generally, amounts greater than
270&nbsp;days past due are fully reserved and balances greater
than 180&nbsp;days past due are reserved at 50%. These
percentages are based on historical collection percentages and
bad debt experience. We also provide for allowances on specific
accounts receivable balances before they are greater than
180&nbsp;days past due where such amounts are determined to be
uncollectible. These allowances are evaluated and adjusted as
more information about the ultimate collectability of the
receivable becomes known. Unbilled receivables are reserved when
collectability is doubtful on a specific identification basis.
If our hours charged and expenses are not paid by our clients,
future provisions against the collectability of those
receivables will be incurred. Receivables past due greater than
180&nbsp;days and 270&nbsp;days were $33&nbsp;million and
$75&nbsp;million, respectively, at June&nbsp;30, 2001, and
$23&nbsp;million and $68&nbsp;million, respectively, at
March&nbsp;31, 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Goodwill Impairment.
</FONT></I></B><FONT size="2">We assess the impairment of
goodwill whenever events or significant changes in circumstances
indicate that the carrying value may not be recoverable. Factors
which we consider important that would cause us to perform an
impairment review include significant underperformance relative
to historical results or to forecasted operating results and
significant negative industry or economic trends. If we
determine that the carrying value of goodwill may not be
recoverable based on the existence of one of these factors, then
we will assess impairment based on a projection of undiscounted
future cash flows related to the business or businesses acquired
and measure the amount of impairment based on fair value. Net
goodwill was $118&nbsp;million at March&nbsp;31, 2002.
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Statement of Financial Accounting Standards
No.&nbsp;142 will be effective for us as of July&nbsp;1, 2002.
At that time, we will cease to amortize goodwill that exists as
of June&nbsp;30, 2002. Goodwill amortization amounted to
$47&nbsp;million, $55&nbsp;million and $57&nbsp;million for the
fiscal years ended June&nbsp;30, 1999, 2000 and 2001,
respectively, and $43 million and $45&nbsp;million for the nine
months ended March&nbsp;31, 2001 and 2002, respectively. In lieu
of amortization, we will be required to perform an initial
impairment review of our goodwill as of July&nbsp;1, 2002, and
an annual impairment review thereafter. We are in the process of
studying the effects of the application of SFAS 142, and we
cannot predict whether or not a material impairment charge will
be recorded.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Allocated
Costs.</FONT></I></B><FONT size="2"> We currently receive
services from various firms in the PricewaterhouseCoopers
network for which costs are incurred and accumulated and charged
to us and the other businesses conducted by the
PricewaterhouseCoopers firms using an allocation methodology.
These services include infrastructure and support services such
as occupancy, technology services, knowledge management, human
resources, training, finance and accounting information
services, marketing and business development, risk management
and practice protection and firm-wide management. Most of these
costs are included within our selling, general and
administrative expenses. Prior to July&nbsp;1, 2001, our share
of these costs was allocated to us using various bases including
relative revenues, headcount, square footage and other measures.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Beginning July&nbsp;1, 2001, we entered into
arrangements with the PricewaterhouseCoopers firms to allocate
these costs. Under these arrangements, we are charged for use or
consumption based on actual direct costs when available, plus
overhead costs. When actual direct costs are not available,
costs are allocated based on factors designed to estimate actual
costs. Other firm-wide infrastructure costs are allocated to us
primarily on the basis of headcount. The PricewaterhouseCoopers
firms will no longer charge us after our separation for the
costs of services we provide internally or costs no longer
relevant to our operations as a separate public company.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Different methodologies are acceptable for
allocating costs. We believe that the allocation methodologies
are reasonable. Utilizing a different methodology from the
method described above could result in different amounts of
allocated costs. We cannot practically estimate what these costs
would have been if we had operated independent of the
PricewaterhouseCoopers firms, including any costs associated
with obtaining services from unaffiliated entities.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Operating segments are defined as components of
an enterprise for which separate financial information is
regularly available and evaluated by the chief operating
decision maker, or decision making group, in deciding how to
allocate resources and in assessing performance. Our reportable
operating segments are the four geographic units described
above, which we refer to as theatres. Geographic theatres are
managed on the basis of revenues after deducting reimbursables
and subcontractor costs, or net revenues, because management
believes it is a better indicator of performance than revenues
including reimbursables and subcontractor costs. Generally, cost
of services for each theatre have similar characteristics and
are subject to the same drivers, pressures and challenges. Most
operating expenses apply to all segments. The relationship of
expenses to net revenues, however, may vary between segments.
Historically, we have tracked our segments using a financial
measure called contribution to profit. Contribution to profit is
based on operating income and excludes the cost of employees not
assigned to segments, centralized training program and
development costs and worldwide business development initiatives
as well as other infrastructure and firm-wide management costs
not allocated to segments.
</FONT>

<P align="left">
<B><FONT size="2">Financial Statement Presentation</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Revenues. </FONT></I></B><FONT size="2">We
derive substantially all of our revenues from contracts for
management consulting and technology services that we perform
for our clients. We also derive a portion of our revenues that
is not significant from the resale of technology products to our
clients. Revenues are recognized as described above under
&#147;&#151;Critical Accounting Policies and Estimates&#151;
Revenue Recognition.&#148; Reimbursables and subcontractor
costs, including those relating to travel and other
out-of-pocket expenses, and other similar
</FONT>

<P align="center"><FONT size="2">88
</FONT>

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<DIV align="left">
<FONT size="2">third-party costs, such as the cost of hardware
and software resale, are included in revenues and an equivalent
amount of reimbursables and subcontractor costs are included in
our cost of services.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each contract has different terms based on the
scope, deliverables and complexity of the engagement. Contracts
for business process management services are typically large
dollar, long duration contracts. Currently, most of our
contracts do not have incentive-based or other pricing terms
that condition our fee on our ability to deliver defined goals.
In the future, we plan to enter into engagements that include
new types of fee arrangements, such as arrangements where we
would receive a share of cost savings realized as a result of
our work. Revenue recognition under these contracts will
generally be based on the facts and circumstances of each
contract.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Most of our contracts are terminable by our
clients on short notice and without penalty. Normally, if a
client terminates a project, the client remains obligated to pay
for services performed and reimbursable expenses incurred by us
through to the date of termination.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Cost of Services.
</FONT></I></B><FONT size="2">Cost of services represents the
direct costs incurred to provide services to our clients.
Historically, these costs include compensation and benefits for
client service staff, other than our partners, and recruiting
and training costs. These costs also include staff training
materials, technology and technology support costs. After our
separation, compensation and the cost of benefits for our client
service partners also will be included in cost of services. The
primary drivers of cost of services are the number of our client
service staff and their compensation. We attempt to manage our
workforce to enable us to meet the anticipated level of demand
for our services.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Reimbursables and Subcontractor Costs.
</FONT></I></B><FONT size="2">Reimbursables are amounts charged
to clients for expenses we incur in delivering services to our
clients. Our client service staff are required to live away from
home for periods of time and primarily incur these expenses
during these periods, including expenses for travel,
accommodation, meals and other cost-of-living expenses.
Reimbursables also include facilities and equipment expenses
incurred for a particular engagement. Subcontractor costs are
incurred when we engage client service staff who are not
directly employed by us to help deliver services to our clients.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Gross Profit.
</FONT></I></B><FONT size="2">We define our gross profit as net
revenues less cost of services. Our gross profit is primarily a
function of hours charged to clients by our client service
staff, the average rate charged per hour of services provided,
the number of our client service staff and their related
compensation and benefits and our utilization rate. Our
utilization rate is the number of hours charged to clients by
our client service staff divided by the total available working
hours of all our client service staff. Historically, partner
distributions have not been included in cost of services.
Following our separation, however, compensation and the costs of
benefits for our partners will be included in cost of services.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The hourly rates we are able to charge for our
services are affected by a number of factors, including:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">introduction of new services or products by us or
    our competitors,
    </FONT></TD>
</TR>

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">our clients&#146; perception of our ability to
    add value through our services and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">competition, including pricing policies of our
    competitors.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our utilization rates are also affected by
several factors, including:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to transition employees from
    completed projects to new engagements,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to forecast demand for our services
    and thereby maintain an appropriate number of client service
    staff to serve forecasted demand,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">our ability to manage headcount turnover and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">seasonal trends, primarily as a result of our
    hiring cycle and holiday and summer vacations.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Selling, General and Administrative
Expenses. </FONT></I></B><FONT size="2">Selling, general and
administrative expenses are costs incurred in supporting our
client service staff as well as costs of marketing,
infrastructure, business
</FONT>

<P align="center"><FONT size="2">89
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<DIV align="left">
<FONT size="2">management and other support. Historically, a
significant portion of selling, general and administrative
expenses have been represented by an allocation of costs
incurred by the PricewaterhouseCoopers firms in the coordination
and management of the global network.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Contribution to Profit.
</FONT></I></B><FONT size="2">For operating segment purposes, we
have historically measured our results based on net revenues
less costs of services and selling, general and administrative
costs, excluding allocated and other global costs.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Operating Income.
</FONT></I></B><FONT size="2">Operating income is income from
revenues after subtracting cost of services, selling, general
and administrative expenses and goodwill amortization.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Interest Income.
</FONT></I></B><FONT size="2">Interest income is interest earned
on cash and cash equivalents.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Interest Expense.
</FONT></I></B><FONT size="2">Interest expense is interest
incurred on our short and long-term external debt and
historically, interest incurred on debt allocated to us by
PricewaterhouseCoopers firms.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Other Income (Expense).
</FONT></I></B><FONT size="2">Other income
(expense)&nbsp;primarily consists of realized gains
(losses)&nbsp;on investment transactions.
</FONT>

<P align="left">
<B><FONT size="2">Results of Operations</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth the percentage of
revenues represented by items in our combined income statements
for the periods presented. Payments for partner distributions
and benefits are not included in any line item.
</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="58%"><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="1%"><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="7"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Nine Months</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">Year Ended</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Ended</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">June 30,</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">March&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></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 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">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</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">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">100</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">100</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">100</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">100</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">100</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">Cost of services
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">48</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</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><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">51</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">51</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">50</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">Reimbursables and subcontractor 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">19</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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 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>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total cost of services
    </FONT></DIV>
    </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>
    <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>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">71</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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</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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Selling, general and administrative 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">22</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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>
    <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>
    <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>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19</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">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</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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>
    <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>
    <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>
    <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 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 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">10</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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">9</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 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">&#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">&#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">&#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">&#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">&#150;</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">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">(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">(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">(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">(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">(1</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">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">&#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">&#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">&#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">&#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">&#150;</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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income before partner distributions and benefits
    </FONT></DIV>
    </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</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</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</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</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</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>

</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">90
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We provide services in four geographic theatres.
The following table provides financial information for each of
these operating segments. Net revenues in the table below and
for purposes of discussion in our management&#146;s discussion
and analysis are revenues after deducting reimbursables and
subcontractor costs. Gross margin in the table below is gross
profit as a percentage of total net revenues. The
&#147;Other&#148; category in net revenues and in gross margin
includes net revenues, costs or other adjustments not allocated
to our operating segments.
</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="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="30%"><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="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="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"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Nine Months Ended</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">Fiscal Year Ended June&nbsp;30,</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">March&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></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 colspan="3"></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">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</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>
    <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="19"></TD>
</TR>

<TR>
    <TD colspan="3"></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="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Net revenues:</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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Americas
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,758,050</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,253,338</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,116,301</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,393,721</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 align="right" valign="bottom" nowrap><FONT size="2">1,957,882</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">EMEA
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,824,343</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,004,983</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,120,157</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,570,096</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,543,517</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">Asia Pacific
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">314,450</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">425,308</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">497,894</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">373,597</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">362,124</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">SOACAT
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">111,383</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">131,765</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">112,147</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">77,248</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">62,136</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">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">9,585</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(25,725</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">118,075</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">81,559</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">38,590</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>
    <TD><FONT size="2">&nbsp;</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
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,017,811</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,789,669</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,964,574</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,496,221</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">3,964,249</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>
    <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="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Net revenues as a percentage of total net
    revenues:</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 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">Americas
    </FONT></DIV>
    </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">56</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 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">53</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">49</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">EMEA
    </FONT></DIV>
    </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</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">35</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">35</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">39</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">Asia Pacific
    </FONT></DIV>
    </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">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">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">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">9</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">SOACAT
    </FONT></DIV>
    </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">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</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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">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="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</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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 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">1</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>
    <TD><FONT size="2">&nbsp;</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
    </FONT></DIV>
    </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><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><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><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><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>
</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>
    <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">
    <B><FONT size="2">Gross profit:</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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Americas
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,177,293</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,411,941</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,031,039</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">845,742</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">732,786</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">EMEA
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">814,565</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">832,062</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">905,556</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">662,851</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">581,330</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">Asia Pacific
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">104,299</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">144,388</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">166,463</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">132,258</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">117,343</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">SOACAT
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">49,314</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">52,182</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">37,221</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,920</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,439</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">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">(92,530</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">(152,057</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">(1,344</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">(55,382</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">(8,006</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>
    <TD><FONT size="2">&nbsp;</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
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,052,941</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,288,516</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,138,935</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,604,389</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">1,439,892</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>
    <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="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Gross margin:</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 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">Americas
    </FONT></DIV>
    </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 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">43</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</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">35</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">37</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">EMEA
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">45</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">42</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">38</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">Asia Pacific
    </FONT></DIV>
    </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</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">35</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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><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">SOACAT
    </FONT></DIV>
    </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</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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">33</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total gross 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">41</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>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36</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">36</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">36</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="23"><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">Contribution to profit:</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 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">Americas
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">547,236</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">773,970</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">504,821</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">364,546</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">444,897</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">EMEA
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">418,512</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">438,713</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">458,131</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">352,558</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">288,089</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">Asia Pacific
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,854</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36,809</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">41,582</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">38,783</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,634</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">SOACAT
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,996</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,676</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,496</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,334</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">726</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>
    <TD><FONT size="2">&nbsp;</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"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,003,598</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,265,168</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,019,030</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">757,221</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">767,346</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>
    <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">91
</FONT>

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<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nine
Months ended March&nbsp;31, 2002, Compared to Nine Months ended
March&nbsp;31, 2001</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Revenues.
</FONT></I></B><FONT size="2">Revenues decreased by
$633&nbsp;million or 11% from $5,638&nbsp;million to
$5,005&nbsp;million for the nine months ended March&nbsp;31,
2001 and 2002, respectively. This decrease was primarily the
result of two factors. First, and most significant, was the
ongoing economic downturn that reduced demand for our services
and contributed to increased competition and a reduction in our
rates. The second principal factor was the increased difficulty
we have faced in obtaining new engagements due to heightened
focus on independence-related concerns. This increased focus is
a result of the new SEC auditor independence rules and the Enron
situation. Approximately 93% and 92% of our revenues were
recognized primarily on the basis of hours worked on engagements
for management consulting and technology services for the nine
months ended March&nbsp;31, 2001 and 2002 respectively. For
these revenues, the number of hours charged by our client
service staff to clients decreased by 8% while our average rate
per hour decreased by approximately 4%. Reimbursables and
subcontractor costs as a percentage of revenues increased
marginally from 20% to 21% for the nine months ended
March&nbsp;31, 2001 and 2002, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Net Revenues.</FONT></I></B><FONT size="2">
Our Americas theatre net revenues decreased by $436&nbsp;million
or 18% from $2,394&nbsp;million to $1,958&nbsp;million for the
nine months ended March&nbsp;31, 2001 and 2002, respectively.
The decrease in net revenues was primarily due to the impact of
the ongoing economic downturn and increased competition in the
market that caused our competitors and clients to put pressure
on our rates. In particular, demand for services from companies
whose results were dependent on the technology industry
continued to be depressed during the first nine months of fiscal
year 2002. Net revenues also decreased as clients audited by
PricewaterhouseCoopers firms limited the level of services they
would allow us to provide following the implementation of the
SEC&#146;s new auditor independence rules and the Enron
situation. Following the terrorist attack in the United States
on September&nbsp;11, 2001, clients and potential clients
delayed or cancelled planned projects and cautiously initiated
new projects, which also contributed to the decrease in net
revenues. Our clients that were most affected by the
September&nbsp;11 events include governments, banks, insurance
companies, investment management companies and companies that
provide consumer services, including airlines.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our EMEA theatre net revenues decreased
$26&nbsp;million or 2% from $1,570&nbsp;million to
$1,544&nbsp;million for the nine months ended March&nbsp;31,
2001 and 2002, respectively. The decrease in net revenues was
primarily due to the continuing effects of the economic downturn
including reduced demand for our services, increased competition
in the market and pressure from clients to reduce costs. These
factors also have begun to negatively impact our rates.
Opportunities with banks, insurance companies and clients whose
operations are dependent on the technology sector of the economy
have decreased. We also continued to experience the effect of
increased focus on independence-related concerns as clients and
potential clients began to delay and cancel projects. New
engagements resulting from the continued restructuring of
governmental entities and companies who provide utility and
telecommunications services partially offset the reduction in
net revenues.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Asia Pacific theatre net revenues decreased
by $12&nbsp;million or 3% from $374&nbsp;million to
$362&nbsp;million for the nine months ended March&nbsp;31, 2001
and 2002, respectively. Net revenues decreased in most
countries, with the exception of Japan, generally as a result of
the economic slowdown and the impact on our rates of increased
competition. The net revenue decrease was partially offset by a
$5&nbsp;million increase in net revenue from business process
management services engagements. Net revenue increases in the
Japanese market were driven primarily by the local need for
business change, excluding banks and insurance companies and
companies providing information and communication services where
opportunities were limited.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our SOACAT theatre net revenues decreased by
$15&nbsp;million or 19% from $77&nbsp;million to
$62&nbsp;million for the nine months ended March&nbsp;31, 2001
and 2002, respectively. The political and economic crisis in
Argentina contributed to the impact of the economic downturn in
this theatre. Stability in the Brazilian market and contracts
for revenues in United States dollars with some clients helped
partially offset the effect of the troubled economic
environment. We ceased part of our business process management
services operations during fiscal year 2001, which also
contributed to the decrease in net revenues.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Cost of Services.
</FONT></I></B><FONT size="2">Cost of services decreased by
$368&nbsp;million or 13% from $2,892&nbsp;million to
$2,524&nbsp;million for the nine months ended March&nbsp;31,
2001 and 2002, respectively. Cost of services remained constant
as a percentage of net revenues at 64% for the nine months ended
March&nbsp;31, 2001 and 2002. The
</FONT>

<P align="center"><FONT size="2">92
</FONT>

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<DIV align="left">
<FONT size="2">decrease in cost of services reflects our efforts
to align our resources and cost structure with the level of
market demand. We reduced average client service headcount by
approximately 2,400 to 33,400 and compensation cost in some
theatres. We also reduced other costs related to our client
service staff. Specifically, training, recruitment and
technology costs decreased by approximately $115&nbsp;million,
offsetting the increase in severance costs of $44&nbsp;million.
Limiting our recruiting activities contributed to a reduction in
training and orientation costs. We also achieved efficiencies in
training costs with a strategic focus on delivering training
through the Internet and concentrating on local delivery of
training, as opposed to client service staff attending programs
held internationally.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Cost of services for our Americas theatre
decreased by $323&nbsp;million or 21% from $1,548&nbsp;million
to $1,225&nbsp;million for the nine months ended March&nbsp;31,
2001 and 2002, respectively. In response to the continued
economic downturn, we reduced average client service headcount
by 17% from approximately 16,700 to approximately 13,900 for the
nine months ended March&nbsp;31, 2001 and 2002, respectively.
Cost of services included severance payments of $24&nbsp;million
and $37 million for the nine months ended March&nbsp;31, 2001
and 2002, respectively. On average, the client service staff in
the United States accepted a 5% reduction in base salary
beginning on September&nbsp;1, 2001, reflecting our effort to
align our cost structure with the level of market demand. We
also limited our recruiting activities, which resulted in a
decline in training and orientation costs. We also achieved a
significant reduction in other costs related to our client
service staff through the introduction of increased controls,
reviews and cost efficiencies.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Cost of services for our EMEA theatre increased
by $56&nbsp;million or 6% from $907&nbsp;million to
$963&nbsp;million for the nine months ended March&nbsp;31, 2001
and 2002, respectively. Average client service headcount
decreased marginally from approximately 14,100 to approximately
13,800 for the nine months ended March&nbsp;31, 2001 and 2002,
respectively. Severance payments of approximately
$29&nbsp;million and, in the United Kingdom, an 8% increase in
the base salary of client service staff contributed to the
increase in cost of services. Excluding the severance payments,
cost of services would have increased by 3%. The increase in
cost of services was partially offset by reductions in other
costs. Consistent with the reduction in headcount, we also
limited recruiting and training activity. We achieved a
reduction in other costs related to our client service staff
through the introduction of increased controls, reviews and cost
efficiencies.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Cost of services for our Asia Pacific theatre
increased by $3&nbsp;million from $242&nbsp;million to
$245&nbsp;million for the nine months ended March&nbsp;31, 2001
and 2002, respectively. Increases in our business process
management services engagements primarily contributed to the
increase in average client service headcount of approximately 2%
from 4,400 to 4,500 for the nine months ended March 31, 2001 and
2002. For services other than business process management
services, we reduced costs through limiting recruiting and
training. Cost of services includes severance costs of
approximately $2&nbsp;million for the nine months ended
March&nbsp;31, 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Cost of services for our SOACAT theatre decreased
by $12&nbsp;million or 21% from $58&nbsp;million to
$46&nbsp;million for the nine months ended March&nbsp;31, 2001
and 2002, respectively. Average client service headcount
remained constant at approximately 1,100 for the nine months
ended March&nbsp;31, 2001 and 2002, respectively. The reduction
in cost of services was primarily due to the devaluation of
local currencies in some markets. Costs incurred in the initial
stages of business process management contracts limited the
extent of the decrease in cost of services.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Reimbursables and Subcontractor Costs.
</FONT></I></B><FONT size="2">Reimbursables and subcontractor
costs decreased by $101&nbsp;million or 9% from
$1,142&nbsp;million to $1,041&nbsp;million for the nine months
ended March&nbsp;31, 2001 and 2002, respectively. Reimbursables
and subcontractor costs increased marginally as a percentage of
revenues from 20% to 21% for the nine months ended
March&nbsp;31, 2001 and 2002, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Gross Profit.
</FONT></I></B><FONT size="2">Gross profit decreased by
$164&nbsp;million or 10% from $1,604&nbsp;million to
$1,440&nbsp;million for the nine months ended March&nbsp;31,
2001 and 2002, respectively. Gross margin remained constant at
36% for the nine months ended March&nbsp;31, 2001 and 2002. Our
utilization increased by 1% from the nine months ended
March&nbsp;31, 2001 to the nine months ended March&nbsp;31, 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Americas theatre gross profit decreased by
$113&nbsp;million or 13% from $846&nbsp;million to
$733&nbsp;million for the nine months ended March&nbsp;31, 2001
and 2002, respectively. Gross margin increased for the Americas
</FONT>

<P align="center"><FONT size="2">93
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<DIV align="left">
<FONT size="2">theatre from 35% for the nine months ended
March&nbsp;31, 2001 to 37% for the nine months ended
March&nbsp;31, 2002.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our EMEA theatre gross profit decreased by
$82&nbsp;million or 12% from $663&nbsp;million to
$581&nbsp;million for the nine months ended March&nbsp;31, 2001
and 2002, respectively. Gross margin decreased for the EMEA
theatre from 42% to 38% for the nine months ended March&nbsp;31,
2001, and March&nbsp;31, 2002 respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Asia Pacific theatre gross profit decreased
by $15&nbsp;million or 11% from $132&nbsp;million to
$117&nbsp;million for the nine months ended March&nbsp;31, 2001
and 2002, respectively. Gross margin decreased for the Asia
Pacific theatre from 35% to 32% for the nine months ended
March&nbsp;31, 2001 and 2002, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our SOACAT theatre gross profit decreased by
$3&nbsp;million or 16% from $19&nbsp;million to $16&nbsp;million
for the nine months ended March&nbsp;31, 2001 and 2002,
respectively. Gross margin increased for the SOACAT theatre from
24% to 26% for the nine months ended March&nbsp;31, 2001,
compared to the nine months ended March&nbsp;31, 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Selling, General and Administrative
Expenses. </FONT></I></B><FONT size="2">Selling, general and
administrative expense decreased by $191 million or 17% from
$1,157&nbsp;million to $966&nbsp;million for the nine months
ended March&nbsp;31, 2001 and 2002, respectively. The decrease
was primarily the result of the cost efficiency program we
implemented as demand for our services fell and by the decrease
in total costs allocated to us from the PricewaterhouseCoopers
firms. The specific focus of our cost efficiency program was to
identify cost efficiencies and increase cost consciousness,
particularly in the current economic environment. Actions we
took to reduce costs included targeted reductions of non-client
service headcount, consolidating office facilities and more
focused marketing initiatives. The reduction in selling, general
and administrative expenses reflected a decrease of
$43&nbsp;million in our expense for provision of doubtful
accounts receivable from $64&nbsp;million to $21&nbsp;million
for the nine months ended March&nbsp;31, 2001 and 2002,
respectively. We had incurred increased expenses for the
provision for doubtful accounts receivable in our fiscal year
2001 due to the business difficulties experienced by electronic
commerce, other Internet related businesses and technology
businesses.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Prior to July&nbsp;1, 2001, the
PricewaterhouseCoopers firms allocated expenses to us using
allocation methods that were based on relative revenues,
headcount, square footage and other measures. The
PricewaterhouseCoopers firms agreed to alter the allocation
structure beginning July&nbsp;1, 2001, with charges for services
to be allocated according to use or consumption based on actual
direct costs, where available, plus overhead costs. The adoption
of the new allocation methodology for the nine months ended
March&nbsp;31, 2002, decreased our cost of central services by
approximately $20&nbsp;million. Our allocation during the nine
months ended March&nbsp;31, 2002, also decreased by
approximately $93&nbsp;million compared to the nine months ended
March&nbsp;31, 2001. This decrease was the result of reductions
in overall costs incurred by the PricewaterhouseCoopers firms.
In addition, we now directly incur some costs previously
included in the overall costs allocated to us by the
PricewaterhouseCoopers firms, which also has contributed to the
decrease.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Contribution to
Profit.</FONT></I></B><FONT size="2"> Contribution to profit
increased by $10&nbsp;million from $757 to $767&nbsp;million for
the nine months ended March&nbsp;31, 2001 and 2002,
respectively. Improvements in contribution to profit in the
Americas theatre was offset by a deterioration in contribution
to profit in all other theatres, resulting in a marginal
increase between the nine months ended March&nbsp;31, 2001 and
2002. Contribution to profit for the nine months ended
March&nbsp;31, 2002, includes the effect of the adoption of the
new allocation methodology on July&nbsp;1, 2001.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Americas theatre contribution to profit
increased by $80&nbsp;million or 22% from $365&nbsp;million to
$445&nbsp;million for the nine months ended March&nbsp;31, 2001
and 2002, respectively. The improvement in contribution to
profit was primarily due to the results of our efforts to align
our cost structure with the level of market demand, including
costs related to our client service staff and selling, general
and administrative expenses.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our EMEA theatre contribution to profit decreased
by $65&nbsp;million or 18% from $353&nbsp;million to
$288&nbsp;million for the nine months ended March&nbsp;31, 2001
and 2002, respectively. The decrease in contribution to profit
was primarily due to a general decrease in market demand which
caused our revenues to fall. The decline in contribution to
profit also was due to the severance costs associated with our
actions to align our cost
</FONT>

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<DIV align="left">
<FONT size="2">structure with the changing level of market
demand and costs incurred as we prepared our infrastructure to
provide some services currently provided by the
PricewaterhouseCoopers firms.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Asia Pacific theatre contribution to profit
decreased by $5&nbsp;million or 13% from $39&nbsp;million to
$34&nbsp;million for the nine months ended March&nbsp;31, 2001
and 2002, respectively. Our contribution to profit has declined
as cost of services increased and net revenue decreased. Growth
in our business process management services engagements required
headcount increases, contributing to the relatively high level
of cost of services.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our SOACAT theatre contribution to profit
decreased from $1&nbsp;million to less than $1&nbsp;million for
the nine months ended March&nbsp;31, 2001 and 2002,
respectively. The change in contribution to profit is primarily
due to the devaluation of local currencies in some markets.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Operating Income.
</FONT></I></B><FONT size="2">Operating income increased by
$25&nbsp;million or 6% from $404&nbsp;million to
$429&nbsp;million for the nine months ended March&nbsp;31, 2001
and 2002, respectively. As a percentage of net revenues
operating income increased from 9% to 11% for the nine months
ended March&nbsp;31, 2001 and 2002, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Interest Expense.
</FONT></I></B><FONT size="2">Interest expense decreased by
$11&nbsp;million from $45&nbsp;million to $34 million for the
nine months ended March&nbsp;31, 2001 and 2002, respectively.
The decrease in interest expense was primarily due to a change
in the amount of debt allocated to us by the
PricewaterhouseCoopers firms and a decrease in the balance of
direct debt with third parties.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fiscal Year
Ended June&nbsp;30, 2001, Compared to Fiscal Year ended
June&nbsp;30, 2000</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Revenues.
</FONT></I></B><FONT size="2">Revenues increased by
$350&nbsp;million or 5% from $7,131 million for fiscal year 2000
to $7,481 million for fiscal year 2001. For services other than
business process outsourcing, our revenues were approximately
flat due to the combined effect of a general economic slowdown
which reduced demand for our services, increased competition,
lost business opportunities from the failure of electronic
commerce businesses and technology businesses and audit clients
of PricewaterhouseCoopers firms reacting to the SEC&#146;s new
auditor independence rules. The revenue increase in fiscal year
2001 reflects an increase in revenues from our business process
management services. Approximately 97% and 93% of our revenues
were recognized primarily on the basis of hours worked on
engagements for management consulting and technology services
for fiscal years 2000 and 2001 respectively. For these revenues
the number of hours charged by our client service staff to
clients decreased by 3% while our average rate charged per hour
increased by approximately 1% from fiscal year 2000 to fiscal
year 2001. Reimbursables and subcontractor costs, as a
percentage of revenues increased marginally from 19% for fiscal
year 2000 to 20% for fiscal year 2001.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Net Revenues.</FONT></I></B><FONT size="2">
Our Americas theatre net revenues decreased by $137&nbsp;million
or 4% from $3,253&nbsp;million for fiscal year 2000 to
$3,116&nbsp;million for fiscal year 2001. The economic slowdown
and the collapse of many electronic commerce businesses and
technology businesses significantly contributed to the decrease
in our net revenues. Net revenues also were lost as audit
clients of PricewaterhouseCoopers firms in the United States
limited the level of services they would allow us to provide
following the announcement of the SEC&#146;s new independence
rules. Increases in our business process management services
engagements partially offset the decrease in net revenues. This
growth was principally driven by a business process management
services contract with a multi-national company in the oil and
gas industry sector. In addition, increased net revenues from
client engagements requiring more experienced and senior client
service staff compared to resource requirements in fiscal year
2000 also helped to limit the decline in net revenues. For these
engagements net revenues increased primarily because we charge
higher average hourly rates for our more experienced and senior
client service staff.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our EMEA theatre net revenues increased by
$115&nbsp;million or 6% from $2,005&nbsp;million for fiscal year
2000 to $2,120&nbsp;million for fiscal year 2001. Net revenue
growth was assisted by business reorganizations, particularly by
government entities, including those providing defense services,
leading to increased demand for large-scale engagements in some
countries. The increase in revenues was also due to increases in
our business process management services engagements. This
growth was principally driven by a significant contract with a
client in the communications industry. Demand from companies
exploring and adopting electronic commerce business models also
contributed to net revenue growth. We also had continued success
</FONT>

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<DIV align="left">
<FONT size="2">with our banking, insurance and other financial
institution clients in the first half of fiscal year 2001. As
the economy began to slow, however, a number of these projects
were cancelled or postponed.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Asia Pacific theatre net revenues increased
by $73&nbsp;million or 17% from $425&nbsp;million for fiscal
year 2000 to $498&nbsp;million for fiscal year 2001. We
responded to market demands by increasing headcount and focusing
on our business development efforts to achieve net revenue
growth. Market demand was particularly strong in Japan as local
companies strove to operate more efficiently. Our services
focused on helping Japanese companies integrate existing and
emerging technologies. We also benefited from the expansion of
the market for services in China. Growth in our business process
outsourcing engagements also contributed to increased net
revenues.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Due to the initial effects of the economic
slowdown, our SOACAT theatre net revenues decreased by
$20&nbsp;million or 15% from $132&nbsp;million for fiscal year
2000 to $112&nbsp;million for fiscal year 2001. This decrease
reflected the continued impact of the recession in Argentina and
the lack of sustained economic growth in our largest market in
this theatre, Brazil.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Cost of Services.
</FONT></I></B><FONT size="2">Cost of services increased by
$325&nbsp;million or 9% from $3,501&nbsp;million for fiscal year
2000 to $3,826 million for fiscal year 2001. Cost of services
increased as a percentage of net revenues from 60% for fiscal
year 2000 to 64% for fiscal year 2001. Cost of services
increased proportionally more than net revenues for fiscal year
2001 compared to fiscal year 2000, primarily due to costs
associated with growth in our business process outsourcing
engagements. For cost of services other than those associated
with our business process outsourcing engagements two factors
contributed to increases. The first factor was the costs of
severance programs. The second factor was an increase in base
salary in some geographies prior to the business failures in the
technology and electronic commerce business markets and the
economic slowdown. Average client service staff headcount
increased by 3,200 or 10% to 35,300 for fiscal year 2001. This
headcount increase was primarily due to growth in our business
process outsourcing engagements. Other costs related to our
client service staff, specifically recruitment and technology
costs, increased by $37 million. This increase was partially
offset by a $23&nbsp;million decrease in training costs.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Cost of services for our Americas theatre
increased by $244&nbsp;million or approximately 13% from
$1,841&nbsp;million for fiscal year 2000 to $2,085&nbsp;million
for fiscal year 2001. Cost of services increased proportionally
more than net revenues in our Americas theatre for fiscal year
2001 compared to fiscal year 2000 primarily due to growth in our
business process outsourcing engagements. These engagements are
generally conducted at low margins in their early stages of the
contracts. At the beginning of fiscal year 2001, prior to
failures of electronic commerce businesses and technology
companies, we increased our client service staff salaries in
response to competition for skilled employees. The base salary
increase averaged approximately 11%. As market conditions
changed, we reduced our workforce. Cost of services includes
severance payments of approximately $20&nbsp;million and
$43&nbsp;million for fiscal year 2000 and fiscal year 2001,
respectively. Average client service staff headcount increased
by 500 or 3% from approximately 15,300 to approximately 15,800
for fiscal year 2000 and fiscal year 2001, respectively. This
net increase included approximately 800 involuntary headcount
reductions in fiscal year 2000 and 1,800 involuntary reductions
in fiscal year 2001.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Cost of services for our EMEA theatre increased
by $41&nbsp;million or 3% from $1,173&nbsp;million for fiscal
year 2000 to $1,214&nbsp;million for fiscal year 2001. Average
client service staff headcount increased approximately 18% from
approximately 11,700 to approximately 13,600 for fiscal year
2000 and fiscal year 2001, respectively. Base salary in some
markets increased in response to competition for skilled
employees and to align our employee compensation to levels
consistent with market rates.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Cost of services for our Asia Pacific theatre
increased by $51&nbsp;million or 18% from $281&nbsp;million for
fiscal year 2000 to $332&nbsp;million for fiscal year 2001. The
increase in cost of services primarily was driven by the 14%
increase in average client service staff headcount from
approximately 4,200 in fiscal year 2000 to approximately 4,800
in fiscal year 2001. Cost of services increased proportionately
more than net revenues in our Asia Pacific theatre for fiscal
year 2001 compared to 2000 primarily due to growth in our
business process outsourcing engagements.
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Cost of services for our SOACAT theatre decreased
by $5&nbsp;million or 6% from $80&nbsp;million for fiscal year
2000 to $75&nbsp;million fiscal year 2001. Average client
service staff headcount increased by 10% from approximately
1,000 to approximately 1,100 for fiscal year 2000 and fiscal
year 2001, respectively. Cost of services did not change
proportionately to headcount as the headcount reduction did not
occur until the third quarter of fiscal year 2001. Cost of
services includes severance payments of approximately
$3&nbsp;million for fiscal year 2001.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Reimbursables and Subcontractor Costs.
</FONT></I></B><FONT size="2">Reimbursables and subcontractor
costs increased $175&nbsp;million or 13% from
$1,341&nbsp;million for fiscal year 2000 to $1,516&nbsp;million
for fiscal year 2001. Reimbursables and subcontractor costs as a
percentage of revenues increased marginally from 19% to 20% from
fiscal year 2000 to fiscal year 2001.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Gross Profit.
</FONT></I></B><FONT size="2">Gross profit decreased by
$150&nbsp;million or 7% from $2,289&nbsp;million for fiscal year
2000 to $2,139&nbsp;million for fiscal year 2001. Gross margin
decreased from 40% in fiscal year 2001 to 36% in fiscal year
2000. Our utilization decreased by 3% from fiscal year 2000 to
fiscal year 2001.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Americas theatre gross profit decreased by
$381&nbsp;million or 27% from $1,412&nbsp;million for fiscal
year 2000 to $1,031&nbsp;million for fiscal year 2001. Gross
margin decreased for the Americas theatre from 43% in fiscal
year 2000 to 33% in fiscal year 2001.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our EMEA theatre gross profit increased by
$74&nbsp;million or 9% from $832&nbsp;million in fiscal year
2000 to $906&nbsp;million in fiscal year 2001. Gross margin
increased for the EMEA theatre from 41% for fiscal year 2000 to
43% for fiscal year 2001.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Asia Pacific theatre gross profit increased
by $22&nbsp;million or 15% from $144&nbsp;million for fiscal
year 2000 to $166&nbsp;million for fiscal year 2001. Gross
margin decreased for the Asia Pacific theatre from 34% in fiscal
year 2000 to 33% in fiscal year 2001.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our SOACAT theatre gross profit decreased by
$15&nbsp;million or 29% from $52&nbsp;million for fiscal year
2000 to $37&nbsp;million for fiscal year 2001. Gross margin
decreased for the SOACAT theatre from 40% in fiscal year 2000 to
33% in fiscal year 2001.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Selling, General and Administrative
Expenses. </FONT></I></B><FONT size="2">Selling, general and
administrative expenses decreased by $9&nbsp;million from
$1,595&nbsp;million for fiscal year 2000 to $1,586&nbsp;million
for the fiscal year 2001. The decrease was primarily related to
a reduction in allocated costs, including risk management, and
new service development and marketing costs.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Risk management expenditures in fiscal year 2001
decreased to levels consistent with fiscal year 1999 as the
PricewaterhouseCoopers firms completed the implementation of the
auditor independence monitoring system, a firm-wide project that
began in fiscal year 2000. Technology costs also returned to
levels more consistent with fiscal year 1999 as we introduced
measures, including the use of global licensing agreements, to
help us efficiently use our worldwide technology investment. In
addition, projects in relation to the upgrade and streamlining
of systems and processes were completed.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">New service development and marketing costs,
which had primarily focused on establishing and promoting our
electronic commerce business capabilities, decreased as the
demand for electronic commerce business services slowed. The
overall reduction in selling, general and administrative
expenses was partially offset by an increase of $69&nbsp;million
in our expense for provision of doubtful accounts receivable
from $25 million to $94&nbsp;million for fiscal year 2000 and
fiscal year 2001, respectively. This increase primarily related
to the growing number of electronic commerce business and
technology business failures.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Specific costs incurred on our behalf by the
PricewaterhouseCoopers network of firms also decreased due to
streamlining the process of international transfers of our
people and the operations of the PricewaterhouseCoopers network
of firms.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Contribution to
Profit.</FONT></I></B><FONT size="2"> Contribution to profit
decreased by $246&nbsp;million or 19%, from $1,265&nbsp;million
for fiscal year 2000 to $1,019&nbsp;million for fiscal year
2001. Contribution to profit decreases in our Americas and
</FONT>

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<FONT size="2">SOACAT theatres were partially offset by
increases in contribution to profit in our EMEA and Asia Pacific
theatres.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Americas theatre contribution to profit
decreased by $269&nbsp;million or 35%, from $774&nbsp;million
for fiscal year 2000 to $505&nbsp;million for fiscal year 2001.
The decrease in contribution to profit is primarily due to the
increase in cost of services, accompanying a decline in net
revenues. The increase in cost of services is primarily due to
costs associated with growth in our business process management
engagements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our EMEA theatre contribution to profit increased
by $19&nbsp;million or 4%, from $439&nbsp;million for fiscal
year 2000 to $458&nbsp;million for fiscal year 2001. The
increase in contribution to profit is primarily due to the
combination of an increase in net revenues from business process
management engagements and a reduction in the expense of
services allocated to us by the PricewaterhouseCoopers firms.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Asia Pacific theatre contribution to profit
increased by $5&nbsp;million or 14% from $37&nbsp;million for
fiscal year 2000 to $42&nbsp;million for fiscal year 2001. The
increase in contribution to profit is primarily due to the
increase in net revenues driven by market demand, that was
partially offset by the increase in costs from headcount growth.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our SOACAT theatre contribution to profit
decreased by $2&nbsp;million, or 13%, from $16&nbsp;million for
fiscal year 2000 to $14&nbsp;million for fiscal year 2001. The
recession in Argentina continues to have a negative effect on
our net revenues and has primarily contributed to the decline in
contribution to profit.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Operating Income.
</FONT></I></B><FONT size="2">Operating income decreased by
$143&nbsp;million or 22% from $639&nbsp;million for fiscal year
2000 to $496&nbsp;million for fiscal year 2001. As a percentage
of net revenues, operating income decreased from 11% for fiscal
year 2000 to 8% for fiscal year 2001.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Interest Expense.
</FONT></I></B><FONT size="2">Interest expense increased by
$11&nbsp;million or 23% from $48&nbsp;million in fiscal year
2000 to $59&nbsp;million in fiscal year 2001 over fiscal year
2000. The increase in interest expense primarily was caused by a
change in the debt balances allocated to us by the
PricewaterhouseCoopers network of firms, the balance of debt
with third parties and changes in our weighted average cost of
debt.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Fiscal
Year Ended June&nbsp;30, 2000, Compared to Fiscal Year ended
June&nbsp;30, 1999</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Revenues.</FONT></I></B><FONT size="2">
Revenues increased $900&nbsp;million or 14% from
$6,231&nbsp;million for fiscal year 1999 to $7,131&nbsp;million
for fiscal year 2000. The revenue increase was the result of the
increased demand for our services as clients, explored
electronic business and new technology and implemented new
systems to address technical issues associated with the year
2000 computer problem. The realization of our marketplace
strength resulting from the merger of the Coopers&nbsp;&#38;
Lybrand and Price Waterhouse global networks also contributed to
revenue growth. Approximately 99% and 97% of our revenues for
fiscal years 1999 and 2000 respectively, were recognized on the
basis of hours worked on engagements for management consulting
and technology services. For these revenues the number of hours
charged by our professional staff to clients increased by 15%
while our average rate charged per hour decreased by 2%.
Reimbursables and subcontractor costs as a percentage of
revenues remained constant at 19% for fiscal year 1999 and
fiscal year 2000.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Net Revenues.</FONT></I></B><FONT size="2">
Our Americas theatre net revenues increased by $495&nbsp;million
or 18% from $2,758&nbsp;million for fiscal year 1999 to $3,253
million for fiscal year 2000. Net revenue growth was driven
primarily by increased services to clients in relation to
electronic commerce business and emerging technologies. Our
clients&#146; preparation for year 2000 issues also contributed
to net revenue growth.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our EMEA theatre net revenues increased by
$181&nbsp;million or approximately 10% from $1,824&nbsp;million
for fiscal year 1999 to $2,005&nbsp;million for fiscal year
2000. Deregulation of the telecommunications and utilities
industries in some geographies, followed by significant merger
and acquisitions activity, created increased demand for services
and contributed to our net revenue growth. In addition,
privatization of governmental entities and restructuring
activity also contributed to net revenue growth. New product
offerings established around transformation and electronic
business combined with our focus on multi-national client
accounts helped us establish a base of contracts with companies
who provide consumer products. We began to benefit in
</FONT>

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<FONT size="2">fiscal year 2000 from our work in fiscal year
1999 of focusing on strategic accounts across all market
sectors, integrating and leveraging our account teams and the
development and offering of new products.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Asia Pacific theatre net revenues increased
by $111&nbsp;million or 35% from $314&nbsp;million for fiscal
year 1999 to $425&nbsp;million for fiscal year 2000. Net revenue
growth was due to an increase in demand for our services in some
geographies as companies responded to economic reforms and
market restructuring.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Net revenues in our SOACAT theatre increased by
$21&nbsp;million or 19% from $111&nbsp;million for fiscal year
1999 to $132&nbsp;million in fiscal year 2000. Net revenue
growth was primarily due to an increase in demand for our
services from the privatization of government and
semi-government entities in some geographies.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Cost of
Services.</FONT></I></B><FONT size="2"> Cost of services
increased $536&nbsp;million or 18% from $2,965&nbsp;million for
fiscal year 1999 to $3,501&nbsp;million for fiscal year 2000.
Cost of services increased marginally as a percentage of net
revenues from 59% for fiscal year 1999 to 60% for fiscal year
2000. To meet strong market demand for management consulting and
technology services, we increased average client service staff
headcount by approximately 3,900 or 14% from approximately
28,200 to approximately 32,100 for fiscal year 1999 and fiscal
year 2000, respectively. Other costs related to our client
service staff, specifically technology support, increased by
$71&nbsp;million. This increase was partially offset by a
$33&nbsp;million decrease in recruiting costs due primarily to
changes in our recruiting process.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Cost of services for our Americas theatre
increased $260&nbsp;million or 16% from $1,581&nbsp;million for
fiscal year 1999 to $1,841&nbsp;million for fiscal year 2000.
Average client service staff headcount increased by 8% from
approximately 13,400 to approximately 14,500 for fiscal year
1999 and fiscal year 2000, respectively. Base salaries increased
in some markets, in response to competition and demand for
skilled client service staff.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Cost of services for our EMEA theatre increased
by $164&nbsp;million or 16% from $1,009&nbsp;million for fiscal
year 1999 to $1,173&nbsp;million for fiscal year 2000. Average
client service staff headcount increased by 27% from
approximately 9,200 to approximately 11,700 for fiscal year 1999
and fiscal year 2000, respectively. The increase in cost of
services was partially attributable to our severance costs of
approximately $12&nbsp;million under a program designed to
realign our skills with forecast market demand. Responding to
market demands and competition for resources, we also increased
base salaries. Growth in our business process management
services engagements contributed to increased cost of services.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Cost of services for our Asia Pacific theatre
increased by $71&nbsp;million or 34% from $210&nbsp;million for
fiscal year 1999 to $281&nbsp;million for fiscal year 2000.
Average client service staff headcount increased by 33% from
approximately 3,200 to approximately 4,200 for fiscal year 1999
and fiscal year 2000, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Cost of services for our SOACAT theatre increased
by $18&nbsp;million or 29% from $62&nbsp;million for fiscal year
1999 to $80&nbsp;million for fiscal year 2000. The increase in
cost of services was due to growth in our business process
outsourcing engagements and increased headcount and the
associated compensation adjustments necessary to support an
increase in net revenues.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Reimbursables and Subcontractor
Costs.</FONT></I></B><FONT size="2"> Reimbursables and
subcontractor costs increased by $128&nbsp;million or 11% from
$1,213&nbsp;million for fiscal year 1999 to $1,341&nbsp;million
for fiscal year 2000. Reimbursables and subcontractor costs
remained constant as a percentage of revenues at 19% for fiscal
year 1999 and fiscal year 2000.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Gross Profit.</FONT></I></B><FONT size="2">
Gross profit increased by $236&nbsp;million or 11% from
$2,053&nbsp;million for fiscal year 1999 to $2,289&nbsp;million
for fiscal year 2000. Gross margin decreased marginally from 41%
for fiscal year 1999 to 40% for fiscal year 2000. Our
utilization was relatively constant for fiscal year 1999
compared to fiscal year 2000.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Americas theatre gross profit increased by
$235&nbsp;million or 20% from $1,177&nbsp;million for fiscal
year 1999 to $1,412&nbsp;million for fiscal year 2000. Gross
margin remained constant for the Americas theatre at 43% for
fiscal year 1999 and for fiscal year 2000.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our EMEA theatre gross profit increased by
$17&nbsp;million or 2% from $815&nbsp;million for fiscal year
1999 to $832&nbsp;million for fiscal year 2000. Gross margin
decreased for the EMEA theatre from 45% in fiscal year 1999 to
41% in fiscal year 2000.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Asia Pacific theatre gross profit increased
by $40&nbsp;million or 38% from $104&nbsp;million for fiscal
year 1999 to $144&nbsp;million for fiscal year 2000. Gross
margin increased for the Asia Pacific theatre from 33% in fiscal
year 1999 to 34% in fiscal year 2000.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our SOACAT theatre gross profit increased by
$3&nbsp;million or 6% from $49&nbsp;million for fiscal year 1999
to $52&nbsp;million for fiscal year 2000. Gross margin decreased
for the SOACAT theatre from 44% to 40% for fiscal year 1999 and
fiscal year 2000, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Selling, General and Administrative
Expenses.</FONT></I></B><FONT size="2"> Selling, general and
administrative expense increased by $187&nbsp;million or 13%
from $1,408&nbsp;million for fiscal year 1999 to
$1,595&nbsp;million for fiscal year 2000. The increase was
related primarily to new service development and marketing
costs, risk management and technology.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">New service development and marketing costs
increased as we focused on developing and promoting our
electronic business capabilities through training and business
development and marketing initiatives. Risk management
expenditures increased as we began the implementation, primarily
in the United States, of the PricewaterhouseCoopers firm-wide
auditor independence monitoring system to manage our compliance
with the auditor independence rules of the SEC and other
professional and regulatory organizations. Our use of technology
expanded with the introduction of new applications and the
upgrade and streamlining of finance and human resources systems
and processes. This increase in activity required an increase in
the level of technology support for employees which contributed
to increased technology expenses. Establishing and refining the
infrastructure of the PricewaterhouseCoopers network of firms
was substantially completed in fiscal year 1999 and,
accordingly, these costs decreased in fiscal year 2000. In
addition, our advertising costs decreased significantly in
fiscal year 2000 as the substantial advertising that occurred in
fiscal year 1999 to establish the PricewaterhouseCoopers network
brand was completed.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Contribution to
Profit.</FONT></I></B><FONT size="2"> Contribution to profit
increased by $261&nbsp;million or 26% from $1,004&nbsp;million
for fiscal year 1999 to $1,265&nbsp;million for fiscal year
2000. Contribution to profit increased or remained relatively
constant across all theatres.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Americas theatre contribution to profit
increased by $227&nbsp;million or 41% from $547&nbsp;million for
fiscal year 1999 to $774&nbsp;million for fiscal year 2000.
Increased demand for services from clients in relation to
electronic business primarily drove net revenue growth and
contributed to the improvement in contribution to profit.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our EMEA theatre contribution to profit increased
by $20&nbsp;million or 5% from $419&nbsp;million for fiscal year
1999 to $439&nbsp;million for fiscal year 2000. An increase in
net revenues was driven by a number of factors, and primarily
contributed to the improvement in contribution to profit.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Asia Pacific theatre contribution to profit
increased by $15&nbsp;million or 68% from $22&nbsp;million for
fiscal year 1999 to $37&nbsp;million for fiscal year 2000. The
increase in contribution to profit was primarily due to net
revenue growth. However, this increase was partially offset by
the increases in cost of services and expenses associated with
growth in our business process outsourcing engagements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our SOACAT theatre contribution to profit
remained constant at $16&nbsp;million for fiscal year 1999 and
fiscal year 2000. Net revenue growth offset by increases in cost
of services primarily due to the increase in headcount necessary
to support growth in our business process management services
business resulted in our contribution to profit remaining almost
flat.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Operating
Income.</FONT></I></B><FONT size="2"> Operating income increased
by $41&nbsp;million or 7% from $598&nbsp;million for fiscal year
1999 to $639&nbsp;million for fiscal year 2000. As a percentage
of net revenues, operating income decreased marginally from 12%
for fiscal year 1999 to 11% for fiscal year 2000.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Interest
Expense.</FONT></I></B><FONT size="2"> Interest expense
increased $13&nbsp;million or 37% from $35&nbsp;million for
fiscal year 1999 to&nbsp;$48&nbsp;million for fiscal year 2000.
Movement in the balance of debt allocated to us by the
PricewaterhouseCoopers network of firms and the balance of debt
with third parties were the primary causes of the increase in
interest expense.
</FONT>

<P align="center"><FONT size="2">100
</FONT>

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

<P align="left">
<B><FONT size="2">Compiled Industry Financial
Information</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Within our geographic theatres, we deliver
services to clients in five industry groups. The following table
provides financial information for each of our industry groups
accumulated from eleven countries or geographic areas comprising
approximately 86% of our total net revenues in fiscal year 2001.
The countries or geographic areas are the United States, the
United Kingdom, Germany, Canada, Japan, the Netherlands,
Australia, Spain, Switzerland, Belgium and East Asia. This
information has been compiled from data that we have not
maintained as part of our normal financial reporting processes
and has been prepared as supplemental information for the
purpose of the presentation set forth below. The data below is
presented under the following assumptions.
</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">Net revenues have been assigned to industry
    groups based on the industry in which a client operates.
    </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">Net revenues not identifiable to an industry
    group have been included in Industry net revenues&nbsp;&#151;
    Other.
    </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">Cost of services for client service staff has
    been allocated to industries based on weighted average
    compensation costs. Compensation costs were determined based on
    average compensation by employee level and hours worked.
    Non-compensation cost of services has been allocated based on
    relative hours charged to the engagement.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Because net revenues in these top eleven
countries and geographic areas represent approximately 86% of
our net revenues in fiscal year 2001 and cover the countries and
geographic areas in which we have our most significant
operations, we believe that the industry group data we have
presented is a fair representation of the approximate division
of our net revenues among industry groups for fiscal year 2001.
Gross margin in the table below is gross profit as a percentage
of total industry group net revenues for the twelve countries or
geographic areas.
</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="42%"><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="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>
</TR>

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

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Fiscal Year Ended</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Nine Months Ended</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">June&nbsp;30,</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">March&nbsp;31,</FONT></B></TD>
</TR>

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

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="15"></TD>
</TR>

<TR>
    <TD colspan="3"></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="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Industry net revenues:</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>
</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">Products
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,624,723</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,698,665</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,291,028</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,091,503</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">Government and Services
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,131,694</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">1,097,742</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">834,401</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">875,357</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">Financial Services
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">975,374</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">884,846</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">683,094</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">488,340</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">Information, Communications and Entertainment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">699,126</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">691,990</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">527,854</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">447,246</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">Energy and Utilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">514,843</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">641,473</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">485,955</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">505,283</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">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">217,144</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">108,207</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">91,585</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">61,412</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>
    <TD><FONT size="2">&nbsp;</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
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,162,904</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,122,923</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,913,917</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,469,141</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>
    <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">
    <B><FONT size="2">Industry net revenues as a percentage of
    industry group total net revenues:</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>
</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">Products
    </FONT></DIV>
    </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">33</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</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>
</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">Government and Services
    </FONT></DIV>
    </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>
    <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>
    <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>
    <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><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Financial Services
    </FONT></DIV>
    </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</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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">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">14</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">Information, Communications and Entertainment
    </FONT></DIV>
    </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><FONT size="2">&nbsp;</FONT></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><FONT size="2">&nbsp;</FONT></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><FONT size="2">&nbsp;</FONT></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</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">Energy and Utilities
    </FONT></DIV>
    </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><FONT size="2">&nbsp;</FONT></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</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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</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">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">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">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</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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="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>
    <TD><FONT size="2">&nbsp;</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
    </FONT></DIV>
    </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><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><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><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>
</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>
    <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">101
</FONT>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">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="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="42%"><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="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>
</TR>

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

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Fiscal Year Ended</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Nine Months Ended</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">June&nbsp;30,</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">March&nbsp;31,</FONT></B></TD>
</TR>

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

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="15"></TD>
</TR>

<TR>
    <TD colspan="3"></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="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <B><FONT size="2">Industry gross profit:</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>
</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">Products
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">645,332</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">678,357</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">518,375</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">463,959</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">Government and Services
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">411,148</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">309,164</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">244,790</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">304,934</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">Financial Services
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">482,946</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">370,428</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">293,462</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">206,195</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">Information, Communications and Entertainment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">313,000</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">180,381</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">133,427</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">132,117</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">Energy and Utilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">125,368</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">222,342</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">145,581</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">136,142</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">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">172,566</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">70,246</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">67,384</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">22,562</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>
    <TD><FONT size="2">&nbsp;</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
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,150,360</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,830,918</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,403,019</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,265,909</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>
    <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">
    <B><FONT size="2">Industry gross margin:</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>
</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">Products
    </FONT></DIV>
    </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>
    <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>
    <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>
    <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 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">Government and Services
    </FONT></DIV>
    </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</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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">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">35</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">Financial Services
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">50</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">42</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">Information, Communications and Entertainment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">45</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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 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><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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Energy and Utilities
    </FONT></DIV>
    </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</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">35</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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>
    <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 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 industry gross 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">42</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">36</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">36</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">36</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<B><I><FONT size="2">Nine Months ended March&nbsp;31, 2002,
Compared to Nine Months ended March&nbsp;31, 2001</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Net Revenues.
</FONT></I></B><FONT size="2">Our Products industry&#146;s net
revenues decreased by $199 million or 15% from $1,291 million to
$1,092 million for the nine months ended March&nbsp;31, 2001 and
2002, respectively. The decrease in net revenues was principally
concentrated in the United States and the United Kingdom and was
primarily driven by the ongoing economic downturn. The decreased
demand for our services from clients in the technology industry
sector was particularly noticeable in the United States. Loss of
opportunities in the United States due to independence
constraints also negatively impacted net revenues. Growth in our
Products industry net revenues, primarily with pharmaceutical
companies in Japan and in some areas of Europe, somewhat offset
the decrease in net revenues.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Government and Services industry net revenues
increased by $41 million or 5% from $834 million to $875 million
for the nine months ended March&nbsp;31, 2001 and 2002,
respectively. The increase in net revenues principally occurred
in the United Kingdom and some other areas of Europe, as we
obtained a significant amount of business from the restructuring
of governmental entities. Net revenues also increased in Japan
primarily due to strong market demand and, specifically,
increased demand from companies in the airline industry.
However, net revenue growth was partially depressed by a
decrease in Government and Services industry net revenues in the
United States and Canada.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Financial Services industry&#146;s net
revenues decreased by $195 million or 29% from $683 million to
$488 million for the nine months ended March&nbsp;31, 2001 and
2002, respectively. The ongoing economic downturn and the
terrorist attack in the United States on September&nbsp;11, 2001
have contributed to the decrease in net revenues in the
financial services industry worldwide. However the experience of
this negative impact was more significant in the United States,
the United Kingdom, Japan, Switzerland and Australia. Clients in
the capital markets industry sector, particularly in the United
Kingdom reduced the scale of their larger projects.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Information, Communication and Entertainment
industry&#146;s net revenues decreased by $81 million or 15%
from $528 million to $447 million for the nine months ended
March&nbsp;31, 2001 and 2002, respectively. The decrease in net
revenues primarily occurred in the United States, Japan and to a
lesser extent in some areas of Europe and the Asia Pacific
region. The level of client spending and, consequently, demand
from clients in this industry group declined considerably during
the last half of fiscal year 2001 continuing into fiscal year
2002.
</FONT>

<P align="center"><FONT size="2">102
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Energy and Utilities industry&#146;s net
revenues increased by $19 million, or 4%, from $486 million to
$505 million for the nine months ended March&nbsp;31, 2001 and
2002, respectively. Growth in Energy and Utility industry net
revenues was driven by our business process management services
engagements. Net revenues from those contracts increased by $29
million or 20%. For services other than our business process
management services, our growth rate was flat. We experienced
decreases in net revenues primarily in the United States,
however, this was offset by increases principally in some areas
of the Asia Pacific region and Europe.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Gross Profit.
</FONT></I></B><FONT size="2">Our Products industry&#146;s gross
profit decreased by $54 million or 10% from $518 million to $464
million for the nine months ended March&nbsp;31, 2001 and 2002,
respectively. Our gross margin increased from 40% to 43% for the
nine months ended March&nbsp;31, 2001 and 2002, respectively as
we reduced headcount to align our cost structure with the
reduced level of market demand for our services.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Government and Services industry&#146;s gross
profit increased by $60 million or 24% from $245 million to $305
million for the nine months ended March&nbsp;31, 2001 and 2002,
respectively. Our gross margin increased from 29% to 35%. We
aligned our headcount with market demand and improved our
utilization rate on our government engagements in the United
States.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Financial Services industry&#146;s gross
profit decreased by $87 million or 30% from $293 million to $206
million for the nine months ended March&nbsp;31, 2001 and 2002,
respectively. Our gross margin decreased from 43% to 42%.
Continuing pricing pressure in slower economic conditions
affected our gross margin. Pricing pressure on new projects
dropped the average rate per hour in the United States and
Canada.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Information, Communication and Entertainment
industry&#146;s gross profit decreased from $133 million to $132
million for the nine months ended March&nbsp;31, 2001 and 2002,
respectively. Our gross margin increased from 25% to 30%. Our
gross margin improved primarily due to the management of
resources relative to changing levels of market demand.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Energy and Utilities Industry&#146;s gross
profit decreased by $10&nbsp;million or 7% from
$146&nbsp;million to $136&nbsp;million for the nine months ended
March&nbsp;31, 2001 and 2002, respectively. Our gross margin
decreased from 30% to 27%. Pricing pressure in some regions
affected our gross margin.
</FONT>

<P align="left">
<B><I><FONT size="2">Year Ended June&nbsp;30, 2001, Compared to
Year Ended June&nbsp;30, 2000</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Net Revenues.
</FONT></I></B><FONT size="2">Our Products industry&#146;s net
revenues increased by $74&nbsp;million or 5% from
$1,625&nbsp;million for fiscal year 2000 to $1,699&nbsp;million
for fiscal year 2001. The increase in net revenues was
principally concentrated in the United Kingdom, Japan and the
United States and was generally the result of growth in
electronic business and internet consulting engagements. The
extent of the increase in net revenues was reduced by decreased
Products industry&#146;s net revenues primarily in Germany,
Canada and Australia. Currency devaluations in both Canada and
Australia offset the extent of this decrease.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Government and Services industry&#146;s net
revenues decreased by $34&nbsp;million or 3% from
$1,132&nbsp;million for fiscal year 2000 to $1,098&nbsp;million
for fiscal year 2001. Increases in net revenues from business
process outsourcing engagements of $36&nbsp;million or 476%
partially offset other decreases in net revenues. Net revenues
in the United States decreased primarily as a result of declines
in net revenues from the aviation sector. The extent of the
decrease was reduced by net revenue growth in the United
Kingdom, Canada, Belgium and some areas of the Asia Pacific
region.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Financial Services industry&#146;s net
revenues decreased by $90&nbsp;million or 9% from
$975&nbsp;million for fiscal year 2000 to $885&nbsp;million for
fiscal year 2001. The decrease in net revenues was primarily
experienced in the United States and the United Kingdom as
demand for services significantly declined in the last half of
fiscal year 2001. The extent of this decrease was partially
offset by net revenue growth in Switzerland and Japan.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Information, Communications and Entertainment
industry&#146;s net revenues decreased by $7&nbsp;million from
$699&nbsp;million for fiscal year 2000 to $692&nbsp;million for
fiscal year 2001. The almost flat net revenues included net
revenues from business process management services contracts
increasing by $144 million or
</FONT>

<P align="center"><FONT size="2">103
</FONT>

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<DIV align="left">
<FONT size="2">approximately 610%. Lost opportunities from the
failure of electronic and technology businesses combined with
the general economic slowdown reduced net revenues. The impact
of those factors was primarily experienced in the United States,
the United Kingdom and the Netherlands.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Energy and Utilities industry&#146;s net
revenues increased by $126&nbsp;million or 24% from
$515&nbsp;million for fiscal year 2000 to $641&nbsp;million for
fiscal year 2001. The increase in net revenues primarily
occurred in the United States and Japan and from engagements for
business process management services.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Gross Profit.
</FONT></I></B><FONT size="2">Our Products industry&#146;s gross
profit increased by $33&nbsp;million or 5% from
$645&nbsp;million for fiscal year 2000 to $678&nbsp;million for
fiscal year 2001. Our gross margin remained constant at 40%.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Government and Services industry&#146;s gross
profit decreased by $102&nbsp;million or 25% from
$411&nbsp;million for fiscal year 2000 to $309&nbsp;million for
fiscal year 2001. Our gross margin decreased from 36% to 28% as
our business in the United States was significantly less
profitable, with gross margins falling from 42% to 26%. Our
United States practice had excess headcount during fiscal year
2001 compared to fiscal year 2000 as demand for services fell.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Financial Service industry&#146;s gross
profit decreased by $113&nbsp;million or 23% from
$483&nbsp;million for fiscal year 2000 to $370&nbsp;million for
fiscal year 2001. Our gross margin decreased from 50% to 42%.
This decline was experienced globally as our headcount exceeded
falling demand for our services.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Information, Communications and Entertainment
industry&#146;s gross profit decreased by $133&nbsp;million or
42% from $313&nbsp;million for fiscal year 2000 to
$180&nbsp;million for fiscal year 2001. Our gross profit was
negatively impacted by increases in expenses for provision for
doubtful accounts receivable due to the failure of electronic
commerce and technology businesses. Consequently, our gross
margin decreased from 45% to 26%.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Energy and Utilities industry&#146;s gross
profit increased by $97 million or 78% from $125 million for
fiscal year 2000 to $222 million for fiscal year 2001. Our gross
margin as a percentage of net revenue increased from 24% to 35%
primarily due to an improvement in margins on our business
process management services contracts.
</FONT>

<P align="center"><FONT size="2">104
</FONT>

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<P align="left">
<B><FONT size="2">Quarterly Results of Operations</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following tables present quarterly combined
financial information on a historical basis for each of our most
recent six fiscal quarters. The quarterly information contains
all adjustments, which consist of normal recurring adjustments
we believe are necessary to fairly present this information. The
operating results for any quarter are not necessarily indicative
of the results for any future period.
</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="21%"><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>
    <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="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>
    <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="27"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" align="center" nowrap><B><FONT size="1">Three Months Ended</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27" 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">September 30,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December 31,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">March 31,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">June 30,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">September 30,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">December 31,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">March 31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></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">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">2001</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">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</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>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="27"></TD>
</TR>

<TR>
    <TD colspan="2"></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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,792,178</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,882,419</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,963,155</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,843,251</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,699,232</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,721,101</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">1,584,927</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 services*
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">962,376</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">964,744</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">964,712</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">933,807</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">895,672</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">854,114</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">774,571</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">Reimbursables and subcontractor 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">363,546</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">379,355</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">398,631</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">374,897</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">369,524</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">375,783</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">295,704</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>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total cost of services*
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,325,922</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,344,099</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,363,343</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,308,704</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,265,196</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,229,897</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,070,275</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">Selling, general and administrative 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">397,393</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">400,517</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">359,206</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">429,010</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">310,907</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">334,406</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">320,526</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">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">13,933</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,422</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,641</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,011</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,521</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,157</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,139</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">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">54,930</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">123,381</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">225,965</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">91,526</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">109,608</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">141,641</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">177,987</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 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">638</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">639</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">638</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">638</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">638</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">639</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,267</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">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">(13,638</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">(17,639</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">(13,638</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">(13,638</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">(10,489</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">(9,140</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">(13,987</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">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">1,824</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(386</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">(9,349</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">(7,707</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">(29</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">127</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">Income before partner distributions and benefits*
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">43,754</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">105,995</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">203,616</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">70,819</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">99,757</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">133,111</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">167,394</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>

</TR>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="15%" 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">Excludes payments for partner distributions and
    benefits.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We experience some seasonal variations in our
revenues primarily for two reasons. First, we normally expect
our net revenues, which are revenues after deducting
reimbursables and sub-contractor expenses, to be relatively
lower in the first and second quarters of the year compared to
our third and fourth quarter primarily due to increased vacation
and holiday hours in our Americas and EMEA theatres. Second, we
tend to book new engagements at particular times of the year,
such as during the first three months of each calendar year when
our clients&#146; new budgets generally become available. For
these reasons, we do experience variability in our results of
operations from quarter to quarter.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The impact of the typical seasonal factors in the
second quarter of fiscal year 2001 was minimized due to net
revenue growth that continued through the third quarter of
fiscal year 2001, primarily driven by our clients continuing to
explore electronic business and new technology solutions. In the
fourth quarter of fiscal year 2001 and continuing into the first
quarter of fiscal year 2002 net revenues were negatively
impacted by the slowdown in economies worldwide reducing demand
for our services and contributing to increased competition.
Despite the negative impact of these non-seasonal factors
continuing to depress net revenues in some countries, net
revenues increased in the second quarter of fiscal year 2002.
This increase in net revenues was driven primarily by the growth
in engagements from the continued restructuring of governmental
entities in our EMEA theatre and the demand led by the local
need for business change in the Japanese market. In the third
quarter of fiscal year 2002, our net revenues reflected the
results of the combined negative impact of the ongoing economic
downturn and the heightened focus by our clients on
independence-related concerns.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Costs of services as a percentage of net revenues
in the first through fourth quarter of fiscal year 2001 was 67%,
64%, 62% and 64% and in the first, second and third quarters of
fiscal year 2002 was 67%, 63% and 60%, respectively. Our cost of
services as a percentage of net revenues is typically higher in
the first two quarters of our fiscal year due to the seasonal
amount of vacation and holiday hours in our Americas and EMEA
theatres.
</FONT>

<P align="center"><FONT size="2">105
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Gross margin as a percentage of net revenues in
the first through fourth quarter of fiscal year 2001 was 33%,
36%, 38% and 36% and in the first, second and third quarters of
fiscal year 2002, 33%, 37% and 40%, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the third quarter of fiscal year 2001 and the
first, second and third quarters of fiscal year 2002 the
decrease in selling, general and administrative expenses
relative to the other quarters was primarily due to lower
expense for provision of doubtful accounts receivable and the
positive effect of the cost efficiency initiatives that we
implemented as demand for our services fell. In the fourth
quarter of fiscal year 2001, the increase in selling, general
and administrative expenses was primarily due to an increase in
our expense for provision of doubtful accounts receivable and an
increase in costs allocated to us from the
PricewaterhouseCoopers firms.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Operating income as a percentage of net revenues
in the first through fourth quarters of fiscal year 2001 was 4%,
8%, 14% and 6% and in the first, second and third quarters of
fiscal year 2002, 8%, 11% and 14%, respectively. The significant
increase in operating income as a percentage of net revenues in
the third quarter of fiscal year 2001 and the second and third
quarters of fiscal year 2002 was primarily due to the combined
impact of the decreases in cost of services as a percentage of
net revenues and reductions in selling, general and
administrative expenses.
</FONT>

<P align="left">
<B><FONT size="2">Liquidity and Capital Resources</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our balance of cash and cash equivalents was
$115&nbsp;million at March&nbsp;31, 2002, an increase of
$5&nbsp;million or 5% from June&nbsp;30, 2001. The balance of
cash and cash equivalents was $74&nbsp;million at June&nbsp;30,
2000 and $110&nbsp;million at June&nbsp;30, 2001, an increase of
$36&nbsp;million or 49%. These balances only reflect the
management consulting and technology services businesses in the
PricewaterhouseCoopers network that are operated through legal
entities that are separate and distinct from the other
PricewaterhouseCoopers businesses in the same country or region
or are in accounts that are used exclusively by management
consulting and technology services businesses in the
PricewaterhouseCoopers network. Historically, we have funded our
liquidity and capital requirements in most countries or regions
from positive cash flow generated by our operations, from the
cash flow generated by the other PricewaterhouseCoopers
businesses as well as borrowings under credit facilities,
including credit facilities of PricewaterhouseCoopers firms.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Net cash provided by operating activities totaled
$692&nbsp;million and $620&nbsp;million for the nine months
ended March&nbsp;31, 2001 and 2002, respectively, and
$366&nbsp;million, $583&nbsp;million and $781&nbsp;million for
fiscal year 1999, fiscal year 2000 and fiscal year 2001,
respectively. Net cash provided by operating activities is
driven by our ability to generate cash from our normal business
activities. Net cash provided by operating activities increased
between fiscal years primarily because of the reduced growth in
accounts receivable and unbilled receivables as our revenues
declined. Our net cash provided by operating activities
decreased between interim periods primarily due to an increase
in unbilled receivables and an increase in amounts due from the
PwC network.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our investing activities have consisted primarily
of acquisitions of property and equipment. Net cash used in
purchase of property and equipment was $74&nbsp;million and
$50&nbsp;million for the nine months ended March&nbsp;31, 2001
and 2002, respectively, and $51&nbsp;million, $77&nbsp;million
and $117&nbsp;million for fiscal years 1999, 2000 and 2001,
respectively. We anticipate a cash outflow of approximately
$20&nbsp;million and $147&nbsp;million for capital expenditures
for the last quarter of fiscal year 2002, and fiscal year 2003,
respectively. We expect our capital expenditures in fiscal year
2003 to be used primarily for technology hardware and software
and other general corporate purposes.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Net cash used in financing activities totaled
$603&nbsp;million and $566&nbsp;million for the nine months
ended March&nbsp;31, 2001 and 2002, respectively, and
$261&nbsp;million, $446&nbsp;million and $649&nbsp;million for
fiscal year 1999, fiscal year 2000 and fiscal year 2001,
respectively. Historically, the most significant cash outflow
has been through the activity in the PwC Network investment
account, which totaled $635&nbsp;million and $493&nbsp;million
for the nine months ended March&nbsp;31, 2001 and 2002,
respectively, and $486&nbsp;million, $669&nbsp;million and
</FONT>

<P align="center"><FONT size="2">106
</FONT>

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

<DIV align="left">
<FONT size="2">$452&nbsp;million for fiscal year 1999, fiscal
year 2000 and fiscal year 2001, respectively. The cash flows
through the PwC Network investment account represent
distributions and other transactions with our partners as well
as settlement of liabilities among the various
PricewaterhouseCoopers firms. The PwC Network investment account
will be transferred to additional paid-in capital upon our
separation.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our working capital was $419 million, $315
million and $252 million at June&nbsp;30, 2000 and 2001 and
March&nbsp;31, 2002, respectively. Changes in working capital
are affected by, among other things, the timing of distributions
to our partners and levels of business activities. Working
capital at March&nbsp;31, 2002 reflects the effects of
distributions routinely held back from our partners until the
last quarter of the calendar year and the decrease in our
revenues.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following are our obligations under long-term
debt agreements and operating leases for the next five fiscal
years and thereafter at June&nbsp;30, 2001:
</FONT>

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

<TR>
    <TD width="25%"><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="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="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="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>
</TR>

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

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="19" align="center" nowrap><B><FONT size="1">Payment Due by Period</FONT></B></TD>
</TR>

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

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

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

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Two to three</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Four to five</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Contractual Obligation</FONT></B></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">One year or less</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">years</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">years</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Thereafter</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">Long-term debt
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">56,394</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,506</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">22,248</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,935</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">1,705</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">Operating leases
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">272,995</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">52,826</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">70,138</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">56,004</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">94,027</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">Total contractual cash 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">329,389</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">59,332</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">92,386</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">81,939</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">95,732</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our allocated debt included in the balance sheet
caption &#147;Amounts due to the PwC Network&#148; was
$350&nbsp;million and other allocated amounts generally
representing accounts payable, accrued payroll and other accrued
liabilities was $542 million at March&nbsp;31, 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Monday Finance SA will issue, as part of this
offering,
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%
senior notes, or up to
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million
if the underwriters exercise their over-allotment option in
full, which will be guaranteed by Monday SCA. These senior notes
will have a maturity date
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2008. The senior notes will be remarketed in 2006, which may
result in a new interest rate. The proceeds of the remarketing
would be paid to Monday Ltd to settle the purchase contracts. If
the remarketing of the senior notes in 2006 is not successful or
cannot be completed, Monday Ltd will be required to foreclose on
the senior notes that are part of PEPS Units in full
satisfaction of the holder&#146;s obligations under the then
outstanding purchase contracts underlying the PEPS Units.
Holders of senior notes that are no longer part of PEPS Units
will have the right to put those senior notes to Monday Finance
SA, whose obligations are guaranteed by Monday&nbsp;SCA, at par
plus accrued and unpaid interest.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">After the closing of the concurrent Class&nbsp;A
common shares offering, we will no longer receive additional
funding from the PricewaterhouseCoopers firms or have access to
additional borrowings under credit facilities of the
PricewaterhouseCoopers firms. We anticipate that the
PricewaterhouseCoopers network of firms will retain and thus not
transfer to us liabilities related to allocated debt. We
anticipate that amounts that will remain due to the
PricewaterhouseCoopers firms related to accounts payable,
accrued payroll and other accrued liabilities will be in the
range of $500 million to $600&nbsp;million after our separation.
These liabilities will be settled in the normal course of our
operations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">After the closing of the concurrent Class&nbsp;A
common shares offering, our primary short term cash needs will
be for working capital, including the amounts described above
that will be due to the PricewaterhouseCoopers network of firms
for allocated accounts payables, accrued payroll and other
accrued liabilities, and for capital expenditures and debt
service. Based on our current business plan, including our
growth strategies, we believe that we have sufficient cash
resources, including our expected credit facilities, without the
proceeds of this offering to continue in operation for the
twelve months after separation and beyond. However, in
accordance with our current business plan we propose to use the
proceeds of the this offering and cash flows from operations to
meet our primary short term cash needs, instead of drawing on our
</FONT>

<P align="center"><FONT size="2">107
</FONT>
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<DIV align="left">
<FONT size="2">expected credit facilities. In the first twelve
months following separation, the proceeds of this offering will
also be used to fund separation and transaction expenses. In
addition, we will use the proceeds of this offering to acquire
the management consulting and technology services business in
India and to purchase Monday SCA Class&nbsp;I common shares held
by the PricewaterhouseCoopers firm in Spain pursuant to the
terms of the applicable rollup agreements and to pay for
noncompete agreements with PricewaterhouseCoopers firms that are
not contributing management consulting and technology business
to us. If our cash flows from operations are less than we expect
or our cash requirements are greater than we expect, we may need
to use our expected credit facilities or incur additional debt
under our credit facilities described below or otherwise. Our
ability to fund our cash requirements will depend on our ability
to generate cash in the future, which is subject to general
economic, financial, competitive, legislative, regulatory and
other factors that are beyond our control. Although we currently
have no commitments or specific plans to do so, we may incur
additional debt for general corporate purposes in the near term,
such as for acquisitions.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We currently have no material acquisition
commitments other than the transaction commitments constituting
the separation, and no acquisition transactions are probable at
this time. We have, however, entered into a non-binding letter
agreement with Arthur Andersen LLP to extend offers of
employment to up to 11 Arthur Andersen partners and up to 270
Arthur Andersen employees that practice in one of Arthur
Andersen&#146;s technology implementation businesses in the
United States. In addition to the non-binding nature of the
letter agreement, our offers of employment are subject to a
number of important conditions, including acceptance of the
offers of employment by a sufficient number of key persons. We
have agreed, subject to these conditions and our ability to
terminate the letter agreement for any reason, to use
commercially reasonable efforts to complete the hirings as soon
as possible, but in any event no later than August&nbsp;1, 2002.
In connection with the extension of these offers, we have agreed
to pay Arthur Andersen approximately $450,000 for each partner
we hire in exchange for a release of non-compete and
non-solicitation agreements that these partners previously have
executed in connection with their status as Arthur Andersen
partners and in exchange for a non-exclusive license to
intellectual property used by these partners in serving their
clients. We will not assume any of the liabilities of Arthur
Andersen relating to this practice or any other liability of
Arthur Andersen, such as those relating to the Enron situation.
We cannot assure you, however, that claims relating to Arthur
Andersen liabilities will not be made against us should we hire
these Arthur Andersen partners and employees.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For the foreseeable future beyond the first
twelve months after this offering, based on our current business
plan, we believe our expected cash flows from operations,
together with our expected credit facilities, will be sufficient
to meet our cash needs. As we pursue our growth initiatives,
develop new solution areas and service offerings and respond to
changes in the business environment and competitive pressures,
including acquiring businesses or technologies, we may need to
raise additional funds through public or private debt or equity
financings.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Following our separation, we expect to enter into
a revolving credit facility or facilities to be available as
necessary for working capital needs and other general corporate
purposes, including an alternative source of liquidity in the
event our cash generated from operations is lower than currently
expected. We have not yet entered into an agreement with respect
to any revolving credit facility. Our existing indebtedness is
unsecured and we currently expect that any credit facility will
be unsecured and have variable interest rates as well as
customary restrictions, covenants and events of default for
unsecured facilities of this type. We do not expect compliance
with the covenants to have a material adverse affect on our
operations. Assuming an average outstanding short-term debt
balance of $250&nbsp;million, the midpoint of the maximum
available credit assuming a $500&nbsp;million credit facility we
expect to enter into, a one percentage point increase in the
average interest rate on the obligations, also effective for an
entire year, would increase pre-tax interest expense, and reduce
pre-tax income, by $2.5&nbsp;million. We anticipate that the
total size of the credit facility or facilities into which we
will enter will be $500&nbsp;million. However, we do not
anticipate the need to draw on this facility during the twelve
months after our separation.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are evaluating our capital structure and the
effect that our separation will have on our capital structure.
We anticipate that once our separation is complete, after
considering the amount of proceeds from
</FONT>

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<DIV align="left">
<FONT size="2">this offering, the amounts due to the
PricewaterhouseCoopers network of firms, the deferred tax
effects of the concurrent offerings and the transformation of
our business from a partnership to a corporate structure and
other items, our capital structure at separation will be
sufficient to support our level of operations in the foreseeable
future.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As noted above, we may need additional funds to
satisfy our cash requirements, however, we cannot assure you
that these funds will be available on acceptable terms, or at
all. Future indebtedness may impose restrictions and covenants
on us and could limit our ability to respond to changing market
conditions, to fund unplanned capital investments or capitalize
on business opportunities. Our existing short and long-term
borrowings are not collateralized. We may be required, however,
to provide collateral on future borrowings.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe there is no litigation pending that
could have, individually or in the aggregate, a material adverse
effect on our financial position, results of operations or cash
flows. Please see &#147;Business&nbsp;&#151; Legal
Proceedings&#148; for a more detailed discussion of legal
proceedings.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Market Risk.
</FONT></I></B><FONT size="2">We are exposed to market risks
associated with changes in foreign currency exchange rates,
changes in interest rates and changes in marketable security
equity prices as well as credit risks from client trade
receivables. We are not engaged in the trading of financial
instruments, derivative instruments or currency. Accordingly,
our market risks arise in the ordinary course of business. Our
market risk management and strategy is regularly reported to our
senior executives.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Foreign Currency Exchange Risk.
</FONT></I></B><FONT size="2">We have foreign currency risk
arising through the translation of local currency financial
statements into our combined United States dollar financial
statements. This risk is not currently hedged. We may consider
hedging our investments in our foreign operations in the future
but have no current plans to do so. Historically, we have had
minimal exposure in the normal course of our business to changes
in foreign currency exchange where we settle payments among
firms in the PricewaterhouseCoopers network. We have entered
into some foreign currency transactions for contracts or debt
transactions that are based in a currency other than the local
currency of our business entering into the transactions or
United States dollars. Such transactions, however, have not been
significant to our results of operations. We typically have not
entered into significant foreign exchange hedge positions on
foreign currency transactions.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">After our separation, we will be managing our
cash and the associated foreign currency risks on a centralized
basis. We are currently developing policies and procedures
addressing cash management, cross border expenses and
settlements, and use of derivatives that we will utilize after
our separation. We anticipate that we will use forward foreign
exchange contracts and purchases of foreign currency options to
selectively hedge our foreign currency transactions. The purpose
of such anticipated hedging activities will primarily be to
minimize the effect of foreign exchange rate movements on the
cash flows and expenses of our foreign operations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If foreign currency exchange rates had
appreciated against the United States dollar by 10% at
March&nbsp;31, 2002, the fair value of our net financial
instruments would have increased by approximately
$52&nbsp;million. Conversely, if foreign currency exchange rates
had depreciated against the United States dollar by 10% at
March&nbsp;31, 2002, the fair value of our net financial
instruments would have decreased by approximately
$43&nbsp;million.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Interest Rate Risk.
</FONT></I></B><FONT size="2">The interest rate risk associated
with our borrowing and investing activities during the past
three fiscal years and for the nine months ended March&nbsp;31,
2002, is not material to our results of operations. We have not
determined whether we will use derivative financial instruments
to alter interest rate characteristics in the future. As we
evaluate our capital structure, level of borrowings and
financial position as a public company, we will consider the
need for the use of derivative financial instruments.
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Equity Price Risk.
</FONT></I></B><FONT size="2">We have approximately
$14&nbsp;million of marketable equity securities at
March&nbsp;31, 2002 that are subject to market price volatility.
These securities are classified as available-for-sale securities
and are recorded in our combined balance sheet at fair value
with unrealized gains or losses reported within the PwC Network
investment account. We also hold private or restricted stock
investments. Our marketable equity securities and private and
restricted stock investments are subject to the risk of a
decline in the fair value of those investments below cost that
is considered to be other than temporary. In that case, we would
suffer a realized loss for the reduction in value of those
securities. At March&nbsp;31, 2002, the value of our privately
held securities amounted to approximately $5&nbsp;million.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Credit Risk.
</FONT></I></B><FONT size="2">In the ordinary course of
business, we are exposed to credit risk from clients, which is
managed by our trade credit policy and regular monitoring for
exposures. Credit risk from accounts receivable historically has
been limited due to the number of clients and broad geographic
diversification of our client base. We have exposure in some
foreign countries where the ability to transfer cash out of the
country is limited. We do not consider this exposure to be
significant to our results of operations.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On January&nbsp;1, 1999, eleven of the fifteen
member countries of the European Union established fixed
conversion rates between their existing sovereign currencies,
the legacy currencies, and one common currency, the euro. The
participating countries adopted the euro as their common
currency on January&nbsp;1, 1999. The euro is now traded on
currency exchanges and may be used in business transactions. On
January&nbsp;1, 2002, the participating countries issued new
euro-denominated bills and coins. The legacy currencies are
being withdrawn and will cease to be legal tender effective
June&nbsp;30, 2002. During the period from January&nbsp;1, 1999,
to June&nbsp;30, 2002, parties may use as legal tender either
the euro or a participating country&#146;s legacy currency as
legal tender.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have analyzed the impact of the euro
conversion on our business in a number of areas, including our
information systems, service rates, finance and banking
resources, foreign currency management, contracts and accounting
and tax. We believe, based on information available at this
time, that the introduction of the euro has not materially
impacted our financial position or the results of our operations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe that the introduction of the euro and
euro pricing creates a downward effect on engagement pricing in
the EMEA theatre as euro pricing is more transparent and
comparable between the countries. However, we have taken
advantage of euro selling opportunities from system
implementation and design projects that sometimes expand into
more complete systems software migration. Opportunities in
non-euro countries, including the United Kingdom, may present
significant future growth opportunities should those countries
decide to join the European Union.
</FONT>

<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 June 2001, the Financial Accounting Standards
Board approved Statements of Financial Accounting Standards
No.&nbsp;141, &#147;Business Combinations,&#148; and
No.&nbsp;142, &#147;Goodwill and Other Intangible Assets,&#148;
which are effective for us July&nbsp;1, 2001 and July&nbsp;1,
2002, respectively. SFAS 141 requires that the purchase method
of accounting be used for all business combinations initiated
after June&nbsp;30, 2001. Under SFAS 142, amortization of
goodwill will cease. Goodwill amortization amounted to
$47&nbsp;million, $55&nbsp;million and $57&nbsp;million for the
fiscal years ended June&nbsp;30, 1999, 2000 and 2001,
respectively, and $43&nbsp;million and $45&nbsp;million for the
nine months ended March&nbsp;31, 2001 and 2002, respectively. In
lieu of amortization, we will be required to perform an initial
impairment review of goodwill as of July&nbsp;1, 2002, and an
annual impairment review thereafter. We are in the process of
studying the effects of the application of SFAS 142 and cannot
predict at this time whether or not a material impairment charge
will be recorded.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In August&nbsp;2001, the Financial Accounting
Standards Board issued Statement of Financial Accounting
Standard No.&nbsp;144, &#147;Accounting for the Impairment or
Disposal of Long-Lived Assets,&#148; which addresses financial
accounting and reporting for the impairment or disposal of
long-lived assets and supersedes SFAS&nbsp;No.&nbsp;121,
&#147;Accounting for the Impairment of Long-Lived Assets and for
Long-Lived Assets to be Disposed of,&#148; and the accounting
and reporting provisions of APB Opinion No.&nbsp;30,
&#147;Reporting the Results of Operations for a Disposal of a
Segment of a Business.&#148; SFAS 144 is effective for PwC
Consulting beginning July&nbsp;1, 2002. We do not expect that
the adoption will have a significant impact on our results of
operations.
</FONT>

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<DIV align="left"><A NAME="013"></A></DIV>

<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 one of the world&#146;s leading providers
of management consulting and technology services. We help our
clients pursue and implement key strategic, process and
technology initiatives designed to enhance their growth,
profitability and competitiveness. We believe that one of our
core strengths is our ability to integrate our strategic advice
with our business and technology skills and services to help our
clients achieve measurable results.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our clients include many of the world&#146;s
largest and most successful organizations. In fiscal year 2001,
we performed services generating revenues after deducting
reimbursables and subcontractor costs, which we refer to as net
revenues, in excess of $500,000 for approximately:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">45% of the 2001 <I>Fortune </I>Global 500,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">74% of the 2001 <I>Fortune </I>Global 50 and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">82% of the 2001 European <I>Financial Times
    </I>50.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our clients also include many of the world&#146;s
largest governments and their respective agencies. We also serve
smaller businesses, governmental agencies and other
organizations. Our net revenues for fiscal year 2001 were
approximately $6&nbsp;billion, and our net revenues for the nine
month period ended March&nbsp;31, 2002, were approximately
$4&nbsp;billion. None of our client relationships are exclusive.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We operate globally with a consistent approach to
serving our clients, which allows us to execute complex
engagements on a global, regional and local basis. We achieve
our consistent approach through the application of our common
methodologies, training programs and our operating model
described below. Upon our separation, we expect to have
approximately 33,000&nbsp;employees with offices in 52 countries
or territories, allowing us to combine our industry and service
area expertise with knowledge of a region&#146;s language,
people and culture.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We principally track and manage our business
according to the four geographic areas listed below, which we
refer to as theatres. Within these geographic theatres, each
member of our client service staff specializes in one of our
five industry groups, which include 20&nbsp;industry sectors.
Each member of our client service staff also specializes in one
of seven core service areas, which we refer to as our solution
areas.
</FONT>

<P align="center">
<B>Geographic Theatres</B>

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

<TR>
    <TD width="15%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="18%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="19%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="25%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="11%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

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

<TR>
    <TD align="center" nowrap><B><FONT size="1">Americas</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">EMEA</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Asia Pacific</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">SOACAT</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>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <I><FONT size="2">Canada<BR>
    Mexico<BR>
    United States</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <I><FONT size="2">Austria<BR>
    Belgium<BR>
    Czech Republic<BR>
    Denmark<BR>
    Finland<BR>
    France<BR>
    Germany<BR>
    Hungary<BR>
    Iceland<BR>
    India<BR>
    Republic of Ireland<BR>
    Israel<BR>
    Italy<BR>
    Kenya<BR>
    Latvia<BR>
    Lebanon</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <I><FONT size="2">Lithuania<BR>
    Netherlands<BR>
    Nigeria<BR>
    Norway<BR>
    Pakistan<BR>
    Poland<BR>
    Portugal<BR>
    Russia<BR>
    South Africa<BR>
    Spain<BR>
    Sweden<BR>
    Switzerland<BR>
    Turkey<BR>
    Ukraine<BR>
    United Arab Emirates<BR>
    United Kingdom</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <I><FONT size="2">Australia<BR>
    People&#146;s Republic of China<BR>
    Hong Kong<BR>
    Indonesia<BR>
    Japan<BR>
    Korea<BR>
    Malaysia<BR>
    New Zealand<BR>
    Philippines<BR>
    Singapore<BR>
    Taiwan<BR>
    Thailand</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <I><FONT size="2">Argentina<BR>
    Brazil<BR>
    Chile<BR>
    Colombia<BR>
    Venezuela</FONT></I></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">111
</FONT>

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<P align="center">
<B>Industry Groups</B>

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

<TR>
    <TD width="22%"><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="18%"><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="12%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

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

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Government</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Financial</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Communications</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Energy</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Products</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">and Services</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Services</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">and Entertainment</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">and Utilities</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>
    <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">
    <I><FONT size="2">Pharmaceuticals<BR>
    Consumer Packaged Goods<BR>
    Technology<BR>
    Industrial Products<BR>
    Automotive<BR>
    Retail</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="left" valign="top"><I><FONT size="2">Government<BR>Defense<BR>Aviation<BR>Posts and&nbsp; Surface<BR>&nbsp;&nbsp;Transport</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <I><FONT size="2">Banking<BR>
    Capital Markets<BR>
    Insurance<BR>
    Investment&nbsp;Management</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <I><FONT size="2">Communications<BR>
    Entertainment and Media<BR>
    Hospitality and Leisure</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <I><FONT size="2">Oil and Gas<BR>
    Utilities<BR>
    Mining</FONT></I></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">
<B>Solution Areas</B>

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

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

<TR>
    <TD align="center" nowrap><B><FONT size="1">Develop</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Deliver</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Operate</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>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <I><FONT size="2">Strategic Change</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <I><FONT size="2">Customer Relationship Management<BR>
    Financial Management<BR>
    Human Capital<BR>
    Supply Chain and Operations<BR>
    Information Technology</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <I><FONT size="2">Application Management and Business Process
    Management</FONT></I></DIV>
    </TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<FONT size="2">We provide our clients with solutions to their
challenges by building teams that combine industry-specific
knowledge with expertise in our core solution areas.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Until our separation from the
PricewaterhouseCoopers network of firms, which will occur
immediately prior to the closing of the concurrent offerings,
our business will continue to be part of the management
consulting and technology services businesses of
PricewaterhouseCoopers firms around the world as described under
&#147;Summary&#151; Our Relationship with the
PricewaterhouseCoopers Network of Firms.&#148;
</FONT>

<P align="left">
<B><FONT size="2">Auditor Independence Rules, the Enron
Situation and the Impact on Our Business</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Because the PricewaterhouseCoopers network of
firms performs audit services for many of our current and
prospective clients and industry vendors, we are currently
restricted from performing services for some clients and
implementing some of our growth strategies. Some audit clients
have policies against using their audit firm to provide
significant non-audit services, such as management consulting
and information technology services. We also have been limited
in our ability to form alliances or joint ventures with, provide
outsourcing services to, or enter into contingent fee or
risk-sharing arrangements with audit clients of
PricewaterhouseCoopers firms. As of March&nbsp;2002,
PricewaterhouseCoopers&#146; audit clients included
approximately:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">25% of the 2001 <I>Fortune </I>United States 500,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">24% of the companies listed on the New York Stock
    Exchange and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">17% of the companies listed on the NASDAQ
    National Market.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In June&nbsp;2000, the Securities and Exchange
Commission proposed new rules regarding auditor independence and
a rule requiring most public companies to disclose in their
annual proxy statements information such as fees related to the
non-audit services provided by their auditor during the most
recent fiscal year. Final rules based on this proposal became
effective in February&nbsp;2001. Beginning in late 2000, we
began experiencing an increase in the number of clients that
either limit our opportunities to bid for new engagements or
prohibit us entirely from bidding for new engagements because
they are audited by a PricewaterhouseCoopers firm. In addition,
some of our existing engagements with PricewaterhouseCoopers
audit clients have been reduced in scope. These clients have
been primarily United States and foreign companies with
securities listed or traded on United States securities markets,
although we are now experiencing increased independence-related
constraints outside the United States as well.
</FONT>

<P align="center"><FONT size="2">112
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The recent high profile bankruptcy filing by the
Enron Corporation has increased further the attention boards of
directors and the marketplace pay to auditor independence. In
the Enron situation, governmental authorities and the media are
investigating whether the management consulting fees paid to
Arthur Andersen compromised its role as Enron&#146;s independent
auditor. The independence disclosure rules and the fallout from
the perceived conflicts of interest in the Enron situation are
significantly limiting our ability to compete. For example, of
our approximately 100 strategic clients, which are described
below, 38&nbsp;clients are PricewaterhouseCoopers&#146; audit
clients. Of these, as of March 2002, 21&nbsp;clients have
informed us that they will limit our services or that they will
not be hiring us for new engagements while we are a part of the
PricewaterhouseCoopers network of firms due to
independence-related concerns. Services provided to these
21&nbsp;clients represented approximately 8% of our net revenues
for fiscal year 2001. In addition, the PricewaterhouseCoopers
firms are gaining additional audit clients due to the
difficulties faced by Arthur Andersen. For example, as of
May&nbsp;30, 2002, Arthur Andersen had lost over 600 public
reporting clients as a result of the Enron situation.
PricewaterhouseCoopers LLP, the United States firm, has gained
over 100 of these companies as audit clients. Accordingly, we
believe that our separation from the PricewaterhouseCoopers
network of firms as a result of the concurrent Class&nbsp;A
common shares offering will provide significant growth
opportunities for our business. Our ability to capitalize on
these opportunities will depend, among other things, on the
successful maintenance or, in some cases, reestablishment of our
relationships with these clients and obtaining new engagements
from these clients on a timely basis.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the last decade, the pace of change in the
global business environment has increased dramatically, creating
enormous challenges and opportunities for companies globally.
Numerous forces have driven these changes including:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the rapid development and implementation of new
    technologies,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the advent and commercialization of the Internet,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">increasing globalization of markets and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">a global economic expansion followed by a
    recession.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">To enhance their competitive position in this
increasingly complex global marketplace, companies have been
forced to re-evaluate their businesses constantly, which has
increased the demand for management consulting and technology
services worldwide. We believe that these forces of change will
continue to accelerate in the next decade and increase the
demand for the integrated global consulting and technology
services that we offer.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">While the slowing global economy has softened
current demand for consulting and technology services, we
believe businesses in most industries are under increasing
pressure to take proactive steps to change and differentiate
themselves to take advantage of any improvement in market
conditions. These changes include more efficient communication,
both internally with employees and externally with customers and
suppliers, more efficient management of supply chains and better
management of risks.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">To help implement these changes, we believe
clients increasingly will demand that service providers deliver
strategic advice integrated with comprehensive technology
solutions and outsourcing capabilities that create lasting and
significant change throughout their organizations. To do this,
we believe that management consulting and technology services
providers must have the ability to:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">deliver a wide range of services across the world,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">stay ahead of industry and technology trends,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">manage complexity across various industries,
    service offerings and geographies,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">have access to capital to create market-ready
    solutions and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">combine the right set of solutions to fit their
    clients&#146; business strategies.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">113
</FONT>

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<P align="left">
<FONT size="2">We believe that service providers who bring these
capabilities to the marketplace will succeed in helping clients
capitalize on opportunities created by the changes in an
increasingly complex global marketplace.
</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 develop and implement solutions for some of
the world&#146;s largest and most successful businesses and
organizations. We combine our extensive industry-specific and
solution area expertise with our knowledge of a region&#146;s
people, language and culture. We have relied on a number of
competitive strengths to achieve our success, including the
strengths described below.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-Term,
Deep Client Relationships</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have strong client relationships with senior
executives at many of the world&#146;s leading businesses and
organizations. Based on a survey of most of our strategic
account relationship partners in late 2001, we estimate that we
have served approximately 60% of our strategic clients for over
five years and approximately 40% of our strategic clients for
over ten years. We believe that part of our success in building
these enduring relationships is due to our flexible and
collaborative approach to engagements. We tailor our approach to
each client&#146;s needs and form integrated teams with our
client service staff to transfer knowledge to and enhance our
long-term relationships with our clients.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Account
Relationship Management</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe that one of our strengths is our
account relationship management program, which assigns the
proper business development resources to each of our clients and
prospective clients. We implemented this program in 2000 to
enhance our client relationships in anticipation of our
separation from the PricewaterhouseCoopers network. For those
clients that we expect will provide us with a substantial amount
of revenues in the future, we dedicate at least one relationship
partner and also devote a considerable amount of other resources
to manage the relationship. We refer to these clients as our
strategic clients, of which we currently have approximately 100.
We also devote considerable business development resources to
other clients for whom we expect to provide significant services
in the future, which we refer to as our managed clients. We
currently have over 300 managed clients. We also allocate, as
appropriate, business development resources to our other
clients, whom we refer to as our portfolio clients, depending on
our expectations of future work. Many of these clients are
developing or emerging companies which we believe have high
potential needs for our services.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Integrated
Approach to Serving Clients</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe that one of our core strengths is our
ability to integrate our strategic advice with our business and
technology skills and services to help our clients achieve
measurable results. This integrated approach allows us to use
our extensive industry and solution area expertise to create and
implement strategies and solutions that are designed to achieve
well-defined, specific objectives. We believe our approach
enhances the impact that our services have on our clients, while
strengthening our relationships with them.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>High
Quality Alliance Relationships</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have strategic alliance relationships with
seven leading technology providers, which are relationships that
we believe add significant value to our solutions and to our
clients. Our alliances, including our strategic alliances, are
relationships with technology companies and companies in other
fields that extend our capabilities and service offerings. The
companies with which we have strategic alliances frequently
recognize us for the value we bring to our mutual clients and
customers. We currently have strategic alliance relationships
with Oracle Corporation, PeopleSoft, Inc., SAP AG and Siebel
Systems, Inc., which are software providers, Hewlett-Packard
Company and Sun Microsystems, Inc., which are hardware and
software providers, and Electronic Data Systems Corporation,
which is a provider of information technology services. Our
strategic alliances also provide us with important leads
regarding new projects and engagements. We believe that our
alliance relationships provide us with insight into emerging
technologies and solutions. In
</FONT>

<P align="center"><FONT size="2">114
</FONT>

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<DIV align="left">
<FONT size="2">addition, we work with these companies to develop
new solutions and services. We also have a number of important
relationships, which we refer to as our managed alliances, that
are typically with technology providers whose products and
services have gained acceptance with our clients. Although we
have entered into agreements with most of the companies with
which we have strategic alliances, many aspects of our
relationships with these companies are not subject to written
agreements. The types of cooperative activities and agreements
we have with our alliance members are described below under
&#147;Our Business&#151;Alliances.&#148;
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Diversification
across Geographic Theatres and Industries</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe our diversification across geographic
theatres and industries will allow us to take advantage of new
opportunities in changing markets as well as more effectively
deploy our resources in response to industry and regional
cycles. For example, we estimate that none of our five industry
groups provided more than approximately 33% of our net revenues
for fiscal year 2001. In addition, our engagements are
well-balanced between our United States, Canada and Mexico
theatre and our Europe, the Middle East and Africa theatre, with
net revenues from these geographic theatres representing
approximately 52% and 36%, respectively, of our net revenues for
fiscal year 2001. We also have businesses in Asia Pacific and
South America and Central America, which we believe are areas
that offer us growth opportunities. In addition, we believe that
France and Italy provide us with an opportunity to grow our
European business.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Continuous
Innovation</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We seek to continuously offer innovative
solutions that anticipate industry, business and technology
trends and that help businesses to become more competitive and
profitable. Internally, we foster a culture of collaboration,
continuous skill development and knowledge sharing among our
client service staff to create an atmosphere that stimulates
innovation. As a result, we believe our client service staff
have the flexibility, knowledge and skills to quickly adapt our
solutions to new market trends. We also have a formal process
for creating and marketing new offerings that solve specific
business problems, often across geographies, industries or
sectors. We call these offerings solution sets and believe they
help transform the way many of our clients do business. We
nurture these solution sets by devoting resources and assigning
development responsibilities to specific partners. We also
actively collaborate with our clients and use our alliance
relationships to help develop new approaches, strategies and
solutions in a cost-effective manner.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Strong
Focus on Skill Development and Knowledge Sharing</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe the building, renewing and sharing of
knowledge, skills and experiences among our client service staff
across our global business is critical to continuous innovation
and the provision of consistent, quality services to our
clients. To perpetuate and foster this strength, we develop
common methodologies and frameworks, shared work product and
standardized training programs for key business processes that
may be replicated across geographies, industries and
engagements. We have extensive programs and technologies to
capture and share knowledge among our employees, such as our
dedicated knowledge management employees whose responsibilities
include identifying and disseminating examples of innovative
services and materials throughout our organization.
Approximately 190,000&nbsp;documents are continuously available
to our client service staff globally. Approximately
1,000&nbsp;new documents, on average, are added to these
knowledge sharing repositories each month. We are committed to
the on-going development of our client service staff. Our
investment in fiscal year 2001 included over 1,600,000 hours of
live training and over 1,000,000 hours of remote and self-paced
learning, including programs delivered through our <I>ecademie
</I>online learning system, as well as thousands of hours of
informal training and knowledge sharing.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Experienced
and Motivated Management Team</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our global management team has an average of 18
years of experience in the management consulting and technology
services industry and an average of 14 years of tenure with a
PricewaterhouseCoopers or predecessor firm. Most of these team
members have long relationships with other team members, whether
through their current positions or as a result of working
together on engagements and other matters. After the closing of
the concurrent offerings, we will continue to use the title
&#147;partner&#148; and preserve our client
</FONT>

<P align="center"><FONT size="2">115
</FONT>

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<DIV align="left">
<FONT size="2">relationship and engagement management practices
that support our collaborative, innovative culture. All of our
partners will continue to hold substantial equity in us
following the closing of the concurrent offerings, which will
help preserve the alignment of interests and sense of ownership
and reward that have been a part of our partnership culture.
Together, our partners, following the closing of the concurrent
offerings, will hold
approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% our Class&nbsp;A
common shares, calculated assuming all Monday SCA Class&nbsp;I
shares and all exchangeable shares issued by one of Monday
SCA&#146;s subsidiaries have been redeemed or exchanged into our
Class&nbsp;A common shares.
</FONT>
</DIV>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are committed to becoming the global service
provider of choice for clients seeking to transform their
businesses to become more profitable and competitive. To
transform a business, we feel that we must help a client realize
significant and lasting change throughout its organization or
within an important functional area. To become the global
service provider of choice, we are pursuing the growth
initiatives described below.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Deliver
Comprehensive Solutions to Our Clients</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We continuously look for opportunities to provide
our clients with comprehensive strategies and solutions,
particularly those that help transform businesses and
organizations. To accomplish this objective, we actively review
our clients and potential clients to determine where we believe
the most significant opportunities exist to provide these
services. We devote considerable resources to understand and
focus on this client base, which we view to be important to our
business. To maximize our ability to develop comprehensive
strategies and solutions to these clients, we deploy teams of
client service staff led by industry-oriented relationship
partners supported by colleagues with skills that span all of
our solution areas. We believe that our focus on increasing,
developing and penetrating this client base is important to our
growth as well as our ability to provide services that transform
our clients.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Pursue
the Benefits of Independence</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Because of our affiliation with the auditing
practice of the PricewaterhouseCoopers network of firms, audit
clients of PricewaterhouseCoopers firms are increasingly
limiting or denying us opportunities to provide our services to
them. Following the closing of the concurrent Class&nbsp;A
common shares offering, we will be free to pursue the following
business strategies:
</FONT>
<P>

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

<TR>
    <TD width="6%"></TD>
    <TD width="2%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">providing more services to existing and prior
    clients that have limited our services due to our ownership by
    the PricewaterhouseCoopers network of firms,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">seeking opportunities at companies and
    organizations that are audited by a PricewaterhouseCoopers firm,
    but which are not recent or current clients due, in part, to our
    ownership by the PricewaterhouseCoopers network of firms,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">forming joint ventures, subcontracting
    relationships and strategic alliances with leading technology
    service providers that are currently audited by a
    PricewaterhouseCoopers firm,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">considering, where appropriate, new types of fee
    arrangements with clients that are audited by a
    PricewaterhouseCoopers firm, such as arrangements where we would
    receive a share of cost savings realized as a result of our work
    and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">pursuing opportunities to provide outsourcing
    services to business and organizations that are audited by a
    PricewaterhouseCoopers firm.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">We believe that our separation from the
PricewaterhouseCoopers network of firms will provide us with the
opportunity to grow our business and compete for engagements
with clients where we were previously constrained by
independence-related issues.
</FONT>

<P align="center"><FONT size="2">116
</FONT>
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<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expand
Our Application Management and Business Process Management
Services</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe organizations will increasingly seek a
service provider capable of operating, either through its own
resources or through alliances, significant parts of the
solution that the service provider has designed and implemented.
To meet this need, we plan to grow our existing application
management services business, where we perform ongoing
maintenance and development services for important software
applications, such as enterprise resource planning systems,
which control functions such as financial reporting and human
resources. We also plan to grow our business process management
services, which are services provided to a business or
organization in which entire processes, like accounting and
financial reporting systems, are administered and operated by a
service provider. According to a market research report
published by Gartner, Inc. in January 2002, the market for
business process management services relating to administration,
human resources and finance is expected to grow from
approximately $60&nbsp;billion in 2001 to approximately
$111&nbsp;billion in 2005, a compound annual growth rate of
16.6%. In addition, once free of independence-related
constraints, we will explore forming new strategic alliances
with key providers of capital-intensive technology outsourcing
services. Our goal is to provide our outsourcing services, which
are in the initial stages of development, in conjunction with
our other solutions, so that we provide a complete set of
integrated services and solutions to our clients, allowing us to
manage the entire lifecycle of a project.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expand
Our Other Service Offerings</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition to growing our outsourcing business,
we also intend to grow other existing service offerings. These
service offerings include the offerings described below.
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Broaden and Deepen Our Systems Integration
    Services.</FONT></I></B><FONT size="2"> An important part of
    many of our business solutions is the use of systems integration
    services. Systems integration is the engineering of hardware,
    operating systems and software to perform specific tasks and
    functions. We believe that the integration of legacy computer
    systems and newer packaged software products with automated
    internal and external communication systems is critical to the
    success of many of our clients. The growth of our application
    management services, for example, will be enhanced by the
    expansion of our systems integration capabilities. We plan to
    grow these resources by attracting and retaining highly
    qualified client service staff and aggressively pursuing
    relationships with cost-effective data processing and software
    programming companies that complement our systems integration
    services and help us serve our clients.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Invest in Solution
    Sets.</FONT></I></B><FONT size="2"> Our business is principally
    about the delivery of value-creating ideas and solutions to our
    clients. We invest in our solution set program to develop these
    new ideas. When we identify a solution that has significant
    potential for our clients, particularly across multiple
    geographic theatres and industry sectors, we invest resources to
    cultivate the new solution, often in collaboration with our
    clients or through our alliance relationships. As concepts are
    developed, we create a new offering, or solution set, for
    distribution and use by the appropriate parts of our
    organization. For each solution set, there is a partner who has
    the responsibility to develop the offering through an organized
    development cycle and to market these solution sets across
    multiple geographic theatres and industry sectors. We believe
    our approach allows us to offer advanced solutions to our
    clients in a timely and cost-effective manner.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Improve
Operational Efficiency</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe that our transition from a series of
legally separate firms within the PricewaterhouseCoopers network
of firms into a single integrated organization will provide us
with significant opportunities to reduce overlapping functions
and business processes, particularly in Europe, and outsource
functions that are not critical to our operations. We expect
that as we replace the services we receive under the transition
services agreements with the PricewaterhouseCoopers firms, we
will improve our ability to manage our costs more
comprehensively and rigorously. To achieve improved management
of our costs, we intend to use our expertise and resources to
further transform our internal business processes and implement
technology solutions to improve productivity and profitability.
</FONT>

<P align="center"><FONT size="2">117
</FONT>

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<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase
Our Alliance and Client Collaboration</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe that our most successful engagements
are those that have a high degree of collaboration among our
clients, alliance relationships and us. Following the closing of
the concurrent Class&nbsp;A common shares offering, we plan to
continue these collaborative efforts to find cost-effective
solutions that may be deployed to multiple clients. We also
believe that separation from the PricewaterhouseCoopers network
of firms will increase our ability to collaborate effectively
with many of our clients and industry vendors.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase
Awareness of New Brand</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We changed our legal name on June&nbsp;10, 2002,
and will begin operating under our new brand upon our
separation. We intend to establish our new brand as a leading
management consulting and technology services brand. We expect
to invest in the promotion of our new brand through print,
broadcast and Internet advertising and other means of marketing.
In connection with these activities, we plan to spend
approximately $110&nbsp;million in the aggregate in fiscal years
2002 and 2003. We believe that our branding strategy will help
to reinforce the public awareness of our separation from the
PricewaterhouseCoopers network of firms and lead to additional
new business opportunities.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continue
to Develop Our Client Service Staff</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our most valuable assets are our client service
staff and the building, renewing and sharing of knowledge,
skills and experiences among them. We will continue to focus on
the development of our client service staff and the
implementation of a recruiting and training strategy designed to
allow us to realize our growth objectives. We seek to foster a
collegial and collaborative work environment that attracts the
highest quality client service staff, who are critical to
maintaining our core strength of continuous innovation. To
remain competitive, we are committed to providing attractive
compensation and long-term incentives for our employees. We also
will be increasing our skills and capabilities in developing
countries, such as China, which we believe will improve the
quality of our services while reducing our cost structure. We
also will devote significant resources to training, knowledge
management and creating reusable methodologies. Our goal is to
maintain a flexible, motivated work force with the capacity to
support our other growth strategies.
</FONT>

<P align="center"><FONT size="2">118
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We build our engagement teams by deploying client
service staff with the relevant industry background and solution
area expertise. To cultivate industry expertise, we structure
our business around five industry groups that cover 20 distinct
industry sectors. Our client service staff also develops
experience in one of our seven solution areas, which represent
the core of our client services. As more fully described below,
we divide these seven solution areas into three broad
categories: develop, deliver and operate. The discussion in this
section describes the services we provide. The chart below shows
how we structure our business by geographic theatre and into
industry groups and solution areas categories.
</FONT>

<P align="center">
<IMG src="y61876y59117a2.gif" alt="(Operating Structure Chart)">

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Geographic
Theatres</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">While we track and manage our business according
to the four geographic theatres listed below, we operate
globally with a consistent approach to serving our clients. We
achieve our consistent approach through the application of
common methodologies and training programs and our operating
model. We believe that a local presence allows us to understand
the challenges and opportunities that are unique to particular
regions and countries. We are able to serve our clients globally
through our global account management structure and
</FONT>

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</FONT>
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<DIV align="left">
<FONT size="2">our relationship partners. Within geographic
theatres, we have listed the countries in which we currently
have offices.
</FONT>
</DIV>

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

<TR>
    <TD width="14%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="19%"><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="25%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="10%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

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

<TR>
    <TD align="center" nowrap><B><FONT size="1">Americas</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">EMEA</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Asia Pacific</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">SOACAT</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>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <I><FONT size="2">Canada<BR>
    Mexico<BR>
    United States</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <I><FONT size="2">Austria<BR>
    Belgium<BR>
    Czech Republic<BR>
    Denmark<BR>
    Finland<BR>
    France<BR>
    Germany<BR>
    Hungary<BR>
    Iceland<BR>
    India<BR>
    Republic of Ireland<BR>
    Israel<BR>
    Italy<BR>
    Kenya<BR>
    Latvia<BR>
    Lebanon</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <I><FONT size="2">Lithuania<BR>
    Netherlands<BR>
    Nigeria<BR>
    Norway<BR>
    Pakistan<BR>
    Poland<BR>
    Portugal<BR>
    Russia<BR>
    South Africa<BR>
    Spain<BR>
    Sweden<BR>
    Switzerland<BR>
    Turkey<BR>
    Ukraine<BR>
    United Arab Emirates<BR>
    United Kingdom</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <I><FONT size="2">Australia<BR>
    People&#146;s Republic of China<BR>
    Hong Kong<BR>
    Indonesia<BR>
    Japan<BR>
    Korea<BR>
    Malaysia<BR>
    New Zealand<BR>
    Philippines<BR>
    Singapore<BR>
    Taiwan<BR>
    Thailand</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <I><FONT size="2">Argentina<BR>
    Brazil<BR>
    Chile<BR>
    Colombia<BR>
    Venezuela</FONT></I></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<FONT size="2">Each of our geographic theatres is organized into
our five industry groups and seven solution areas. Within each
of these theatres, we have industry leaders and solution area
leaders who report both to the head of the geographic theatre
and also to the global industry or solution area leaders. We
believe this approach allows us to balance the need for a global
understanding of our business with the efficiency and cost
management advantages that result from geographic accountability.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">Americas</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Americas theatre is comprised of the United
States, Canada and Mexico. The Americas theatre accounted for
approximately 52% of our net revenues for fiscal year 2001 and
49% of our net revenues for the nine-month period ended
March&nbsp;31, 2002. As of March 2002, we had approximately
14,000 partners and employees in this theatre. Our business in
this theatre has been adversely impacted by the issues
surrounding auditor independence and the Enron situation. The
Americas theatre has also been negatively affected by the
general downturn in the economy and the decline in technology
spending that accelerated as a result of the events of
September&nbsp;11, 2001. As a result of economic conditions, our
clients have focused on customer retention and improving
profitability. Because of these challenges, we believe our
clients expect innovation and the ability to increase value as a
result of their investment in information technology.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We serve a wide variety of clients in our
Americas theatre across all of our industry segments. Our
largest clients, in terms of net revenues for fiscal year 2001,
include many well-known names, such as the following:
</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="46%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT size="2">&#149;&nbsp;American Express Company<BR>
    &#149;&nbsp;Chevron Texaco<BR>
    &#149;&nbsp;Citigroup, Inc.<BR>
    &#149;&nbsp;General Motors Corporation<BR>
    &#149;&nbsp;Hewlett-Packard Company
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#149;&nbsp;J.C. Penney Company<BR>
    &#149;&nbsp;Johnson &#38; Johnson<BR>
    &#149;&nbsp;United States Department of Defense<BR>
    &#149;&nbsp;Verizon<BR>
    &#149;&nbsp;The Walt Disney Company
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<FONT size="2">We provide a wide variety of services to our
clients in this theatre, which include services from all of our
solution areas. Pursuant to our goal of becoming the global
service provider of choice for clients seeking to transform
their businesses, we seek engagements that involve helping
clients realize significant and lasting change.
</FONT>

<P align="center"><FONT size="2">120
</FONT>

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<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">EMEA</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our EMEA theatre is comprised of countries in
Europe, the Middle East and Africa. The EMEA theatre accounted
for approximately 36% of our net revenues for fiscal year 2001
and 39% of our net revenues for the nine-month period ended
March&nbsp;31, 2002. As of March 2002, we had approximately
15,000 partners and employees in this theatre. The EMEA theatre
has been negatively affected by economic conditions in Europe
and, to a lesser extent, by auditor independence concerns. A key
factor impacting our business in this theatre is Europe&#146;s
continuing development towards an economic common market and the
corresponding regulatory changes and increasing competitive
forces facing our clients. Governments also are facing new
challenges caused by privatization and increased outsourcing of
services to private companies. In response to these challenges,
our clients increasingly are focused on reducing and controlling
costs. We believe that the wide scope of our services will allow
us to assist clients with these needs. We also believe that the
rapid development of the economies of Eastern Europe and Russia
will provide us with an opportunity for the development of
low-cost data processing and software programming resources in
those countries.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We serve a wide variety of clients in our EMEA
theatre across all of our industry segments. Our largest
clients, in terms of net revenues for fiscal year 2001, include
many well-known names, such as the following:
</FONT>

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

<TR>
    <TD width="61%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="36%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <FONT size="2">&#149;&nbsp;Allianz AG<BR>
    &#149;&nbsp;Cadbury Schweppes<BR>
    &#149;&nbsp;ExxonMobil<BR>
    &#149;&nbsp;Fiat<BR>
    &#149;&nbsp;France Telecom
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">&#149;&nbsp;GlaxoSmithKline plc<BR>
    &#149;&nbsp;Lloyds TSB<BR>
    &#149;&nbsp;Telefonica S.A.<BR>
    &#149;&nbsp;UBS AG<BR>
    &#149;&nbsp;UK Ministry of Defence
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe that we develop strong relationships
with many of our clients by understanding their business needs
and by helping them to address these needs by providing a wide
range of management consulting and technology services from all
of our solution areas.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">Asia
Pacific</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Asia Pacific theatre is comprised of Japan,
Australia, Korea, China, New Zealand and other countries in East
Asia. The Asia Pacific theatre accounted for approximately 8% of
our fiscal year 2001 net revenues and 9% of our net revenues for
the nine-month period ended March&nbsp;31, 2002. As of March
2002, we had approximately 5,000 partners and employees in this
theatre. While we have offices in all major commercial centers
in this region, our practice in this theatre is currently
concentrated in Japan and Australia. As a result of China&#146;s
recent entry into the World Trade Organization, we view the Asia
Pacific theatre as an emerging market that presents a number of
growth opportunities for our business. Additionally, we are
expanding our presence in selected countries which we view as
providing us access to low cost data processing and software
programming capabilities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our clients in this theatre include businesses of
global multinational corporations as well as significant
regional, national and governmental organizations. We believe we
help our clients by bringing both a global understanding of
business processes and procedures and a deep understanding of
issues and solutions facing organizations operating in Asia
Pacific. Some of our largest clients in this theatre, in terms
of net revenues for fiscal year 2001, include Sony, Toyota and
Telstra.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">SOACAT</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our SOACAT theatre is comprised of countries in
South America and Central America. The SOACAT theatre accounted
for approximately 2% of net revenues for both fiscal year 2001
and the nine-month period ended March&nbsp;31, 2002. As of March
2002, we had approximately 1,000 partners and employees in this
theatre. Our practice in this theatre had been adversely
affected by the Argentine economic crisis and by
independence-related issues, especially in Brazil. We continue
to believe, however, that there will be strategic opportunities
for us in this theatre following our separation, including the
development of low cost data processing and software programming
capabilities.
</FONT>

<P align="center"><FONT size="2">121
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our largest clients, in terms of net revenues for
fiscal year 2001, in this theatre include businesses of global
multinational corporations, such as Zurich Financial and Sony,
as well as significant regional, national and governmental
organizations, such as Telecom Argentina, Souza Cruz and Ambev.
We believe we help our clients by bringing both a global
understanding of business processes and procedures and a deep
understanding of issues and solutions facing organizations
operating in South America and Central America.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Industry
Groups</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Within each of our geographic theatres, we have
five industry groups, which include 20 industry sectors. Not all
sectors are represented in every theatre. The following table
sets forth a list of our industry groups and sectors.
</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="15%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="18%"><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="12%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Information,</FONT></B></TD>
    <TD></TD>
    <TD></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Government</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Financial</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Communications</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Energy</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Products</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">and Services</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Services</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">and Entertainment</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">and Utilities</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>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></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">
    <I><FONT size="2">Pharmaceuticals<BR>
    Consumer Packaged Goods<BR>
    Technology<BR>
    Industrial Products<BR>
    Automotive<BR>
    Retail</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <I><FONT size="2">Government<BR>
    Defense<BR>
    Aviation<BR>
    Posts and&nbsp;Surface<BR>&nbsp;&nbsp;Transport</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <I><FONT size="2">Banking<BR>
    Capital Markets<BR>
    Insurance<BR>
    Investment&nbsp;Management</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <I><FONT size="2">Communications<BR>
    Entertainment and Media<BR>
    Hospitality and Leisure</FONT></I></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <I><FONT size="2">Oil and Gas<BR>
    Utilities<BR>
    Mining</FONT></I></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For each industry group, we provide net revenue
information for fiscal year 2001 and the nine months ended
March&nbsp;31, 2002. This information has been derived from
eleven&nbsp;countries or geographic areas comprising
approximately 86% of our total net revenue in fiscal year 2001.
The countries or geographic areas are the United States, the
United Kingdom, Germany, Canada, Japan, the Netherlands,
Australia, Spain, Switzerland, Belgium and East Asia. Please see
&#147;Management&#146;s Discussion and Analysis of Financial
Condition and Results of Operations&nbsp;&#151; Results of
Operations&#148; for a more detailed description of the
procedures we used to derive net revenue for our industry groups.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">Products</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In our Products industry group, we serve
companies that are principally involved in the manufacture and
distribution of products and related services. We subdivide this
industry group into the six industry sectors described below. We
share resources, knowledge and experiences among our teams in
each of these six industry sectors, allowing us to develop and
market solutions to clients in a timely and cost-effective
manner. While each of these sectors has unique issues, we
believe they share common market challenges including:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">achieving revenue growth,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">collaborating with key customers and suppliers to
    improve supply chain efficiency,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">understanding customers and their needs,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">creating and effectively using new Internet-based
    business operations,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">retaining employees and reaching out to
    communities and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">building internally or outsourcing important
    functions to support critical operations.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">122
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth industry net
revenues and percentage of total industry net revenues for the
twelve countries and geographic areas described above and a
representative list of clients for the periods indicated for the
Products industry group. The clients listed below are some of
our largest clients in this industry group, in terms of net
revenues, for fiscal year 2001.
</FONT>

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

<TR>
    <TD width="54%"><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="12%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="11%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="9"></TD>
</TR>

<TR>
    <TD colspan="9" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="9"></TD>
</TR>

<TR>
    <TD colspan="9" align="center" nowrap><B><FONT size="1">Products Industry Group</FONT></B></TD>
</TR>

<TR>
    <TD colspan="9" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1" color="#E8112D">Year Ended</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Nine Months Ended</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">June 30, 2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">March 31, 2002</FONT></B></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2" color="#E8112D">Industry Net Revenues:
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2" color="#E8112D">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2" color="#E8112D">1,698,665</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2" color="#E8112D">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2" color="#E8112D">1,091,503</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" color="#E8112D">Percent of Total Industry 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" color="#E8112D">33</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2" color="#E8112D">%</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2" color="#E8112D">31</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2" color="#E8112D">%</FONT></TD>
</TR>

<TR>
    <TD colspan="9" align="left"><HR size="1" noshade></TD>

</TR>

</TABLE>
</CENTER>

<DIV align="center">
<FONT size="2">Examples of Clients in Fiscal Year 2001
</FONT>
</DIV>

<P align="left">
<BR>

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

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Aventis Pharma AG
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Bristol-Myers Squibb
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Cadbury Schweppes
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Compaq Computer
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Diageo Plc
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">General Motors Corporation
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">The Gillette Company
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">GlaxoSmithKline plc
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Hewlett-Packard Company
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">J.C. Penney Company
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Johnson &#38; Johnson
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Nestl&#233; SA
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Nike, Inc.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Novartis Pharma AG
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Pfizer, Inc.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Raytheon Company
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Siemens AG
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Tetra Pak International SA
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Toyota
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Unilever
    </FONT></TD>
</TR>

</TABLE>

<DIV align="left">
<BR>
<FONT size="2">
________________________________________________________________________________
<BR>
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Pharmaceuticals.
</FONT></I></B><FONT size="2">In our pharmaceuticals industry
sector, we serve pharmaceutical, life science, biotechnology,
and healthcare products companies that manufacture products for
the prevention and treatment of medical conditions. In fiscal
year 2001, we served 13 of the 14 pharmaceutical companies in
the 2001 <I>Fortune </I>Global 500. The pharmaceutical industry
is a highly regulated and global industry that we believe will
face continued consolidation. To effectively compete in this
environment, we believe pharmaceutical companies need to achieve
two objectives: improve the efficiency and output of their
extensive research and development activities and improve their
sales and marketing processes. We have developed
industry-specific solutions to help our clients achieve these
objectives. One example of these solutions is <I>GXPharma,</I> a
software program that helps clients manage regulatory compliance
throughout the research and development cycle. Another solution,
the <I>Clinical Information Exchange,</I> helps clients manage
clinical trial data and decision making during this cycle. We
also are working with our clients to expand their use of
electronic business opportunities and usage of the Internet. For
example, in fiscal year 2001, we were engaged by a group of
leading pharmaceutical and healthcare products companies to
undertake a study called <I>Global Healthcare Exchange,</I> a
feasibility study for an industry-wide electronic marketplace.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Consumer Packaged Goods.
</FONT></I></B><FONT size="2">In our consumer packaged goods
industry sector, we serve a variety of companies including food,
beverage and tobacco companies as well as household products,
cosmetics and apparel companies. In fiscal year 2001, we served
23 of the 34 consumer packaged goods companies in the 2001
<I>Fortune </I>Global 500. We believe that the consumer packaged
goods industry faces low growth, a better informed, more
demanding customer and pressure on well-known brands by private
label and other distributors. We also believe that this sector
is undergoing continued consolidation and globalization, and is
facing increased cost pressure from large retailers. We help our
clients remain competitive by increasing the efficiency of their
operations through implementing technology that allows them to
have a global view of their operations and to better collaborate
and integrate with their suppliers and customers. For example,
Procter &#38; Gamble and we jointly designed, developed and
implemented an electronic business solution to facilitate
customer communications and use of the Internet for sales and
marketing. Our solution included the development of an Internet
site that allows existing customers to review and manage their
accounts and the consolidation of multiple Procter &#38; Gamble
Internet sites to eliminate redundant sales efforts. We also
help develop unique solutions to industry challenges. For
example, we are a sponsor of the Auto ID effort, which is a new
technology based on a radio-frequency computer chip that allows
products to be tracked more efficiently.
</FONT>

<P align="center"><FONT size="2">123
</FONT>
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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Technology Products.
</FONT></I></B><FONT size="2">In our technology products
industry sector, we serve manufacturers of computers,
semiconductors, peripherals, such as printers, and networking
equipment. In fiscal year 2001, we served 25 of the 30
technology companies in the 2001 <I>Fortune </I>Global 500. We
believe that networked and collaborative models for business
operations will replace stand-alone business organizations.
These are business models that allow companies to have greater
integration with suppliers and customers. Other trends in the
industry that we believe are occurring include the increasing
pace of innovation and simpler communications-based tools
replacing many functions of the personal computer. We also see
an increasing focus on customer service and customization and
development of business-to-business connections. We help our
clients recognize new product and customer opportunities,
identify important trading members and define new operating
models. We also work with companies to develop their electronic
business distribution methods, improve their ability to respond
to changes in the market and operate using a networking model of
business.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Industrial Products.
</FONT></I></B><FONT size="2">In our industrial products
industry sector, we serve chemical companies, pulp and paper
companies and heavy manufacturers. In fiscal year 2001, we
served 39 of the 65 industrial products companies in the 2001
<I>Fortune </I>Global 500. We believe that the chemicals
industry is facing a low return on capital and supply chain
inefficiencies. We also see this sector is undergoing
consolidation and globalization. We believe customer demands are
increasing, which we believe is forcing companies to focus on
the customer rather than the production process. Within the
paper industry, we believe companies are facing extreme cost
pressures. We have worked with our clients on customer service
and retention, improved order management and reduction of
working and physical capital investments. For example, currently
we are helping a major industrial products company to redesign
their main business processes and to implement software
solutions produced by SAP AG in their polymers division. The
project started in Europe and ultimately is planned to cover the
company&#146;s global business. Within the paper industry, we
worked with International Paper to redesign their human
resources function and also to transform their corporate culture
to be able to do business electronically. This project involved
developing and implementing Internet-based technologies and
supporting business processes.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Automotive.
</FONT></I></B><FONT size="2">In our automotive industry sector,
we serve vehicle manufacturers, suppliers and dealers. In fiscal
year 2001, we served 17 of the 23 motor vehicles and parts
companies in the 2001 <I>Fortune </I>Global 500. We believe that
the automotive industry is undergoing globalization and
consolidation and faces increased competition, resulting in
severe cost pressures on our clients. Our client service staff
work with our clients to develop and implement solutions focused
on:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">customer service and retention,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">development of electronic business operations,
    </FONT></TD>
</TR>

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">redeployment of assets and capabilities among
    different parts of an organization.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">For example, between 1998 and 2000 we helped Fiat
S.p.A to significantly reduce and control their costs. After
collecting and analyzing Fiat&#146;s cost performance across 18
countries and 87 support processes, we established key
indicators of Fiat&#146;s performance, researched internal and
external industry practices and identified opportunities for
cost reduction.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Retail. </FONT></I></B><FONT size="2">In
our retail industry sector, we serve a wide spectrum of
retailers ranging from convenience stores to destination stores,
including supermarkets, specialty premium retailers and large
mass-merchandise discounters. In fiscal year 2001, we served 28
of the 67 retailers in the 2001 <I>Fortune </I>Global 500. We
believe that the retail industry today faces increasing
globalization and consolidation and the challenges associated
with multiple, overlapping ways to reach customers. We help
retailers integrate and use new technologies and improve their
customer service to provide differentiation from their
competitors. We are also working with our clients to design and
implement electronic market solutions to increase efficiency by
serving multiple customers simultaneously. For example, in
fiscal year 2001, we helped J.C.&nbsp;Penney implement a
software application to manage Internet content. We also
designed and implemented a solution to use this application to
gather and analyze various information obtained through its
Internet site, such as performance information,
</FONT>

<P align="center"><FONT size="2">124
</FONT>

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

<DIV align="left">
<FONT size="2">the number and frequency of use of its Internet
site and the effectiveness of the company&#146;s selling and
marketing efforts.
</FONT>
</DIV>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Government and
Services</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In our Government and Services industry group, we
serve companies and governmental entities that are involved
principally in labor and knowledge-intensive services. This
industry group includes the four industry sectors described
below. We believe these companies and governmental entities face
similar strategic, organizational and technological issues,
which gives us the opportunity to apply common solutions across
the group. Even in countries where regulation is diminishing,
many of our clients in this industry group continue to rely on
government-backed financing or subsidies.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth industry net
revenues and percentage of total industry net revenues for the
twelve countries and geographic areas described above and a
representative list of clients for the periods indicated for the
Government and Services industry group. The clients listed below
are some of our largest clients in this industry group, in terms
of net revenues, for fiscal year 2001.
</FONT>

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

<TR>
    <TD width="55%"><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="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>
</TR>

<TR>
    <TD colspan="9"></TD>
</TR>

<TR>
    <TD colspan="9" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="9"></TD>
</TR>

<TR>
    <TD colspan="9" align="center" nowrap><B><FONT size="1">Government and Services Industry Group</FONT></B></TD>
</TR>

<TR>
    <TD colspan="9" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Year Ended</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Nine Months Ended</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">June 30, 2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">March 31, 2002</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">Industry Net Revenues (in thousands):
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,097,742</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">875,357</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">Percent of Total Industry 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">21</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">25</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR>
    <TD colspan="9" align="left"><HR size="1" noshade></TD>

</TR>

</TABLE>
</CENTER>

<DIV align="center">
<FONT size="2">Examples of Clients in Fiscal Year 2001
</FONT>
</DIV>

<DIV align="left">
<BR>
</DIV>

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

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">American Airlines
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">British Airways Plc
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Canadian Pacific Railways
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Consignia Plc
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Delta Air Lines Inc.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Department for Work and Pensions (UK)
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Deutsche Lufthansa AG
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Deutsche Post AG
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">FedEx Corporation
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Government of Ontario
    </FONT></TD>
</TR>

</TABLE>

<DIV align="left">

</DIV>

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

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Home Office (UK)
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Japan Airlines
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Preussag AG
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">TPG (TNT) Post Group N.V.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">UK Ministry of Defence
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">U.S. Department of Defense
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">U.S. Navy
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">U.S. Postal Service
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">United Airlines
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">United Parcel Service
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <BR>
    <FONT size="2">
    ________________________________________________________________________________
    <BR>
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Government.
</FONT></I></B><FONT size="2">In our government industry sector,
we serve a variety of government organizations, including
national governments and international agencies as well as local
municipalities. In fiscal year 2001, we served governments in
many countries, including the United States, Canada, Australia
and all members of the European Union. We believe that the
government sector is facing new and more complex problems while
the number of governmental employees is shrinking. We believe
citizens are demanding more efficient, more convenient and more
accountable public services. We help our clients to meet these
challenges by working with them to change processes, reallocate
spending and upgrade technology to create an increasingly
electronic environment. We also work with these organizations to
outsource functions that are not critical to government
operations. For example, we are currently working with the
United Kingdom Department for Work and Pensions to build a new
multi-channel customer-focused organization that will serve the
needs of all United Kingdom pensioners. Multi-channel refers to
the multiple ways an organization can communicate or interact
with its clients or customers.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Defense. </FONT></I></B><FONT size="2">In
our defense industry sector, we serve departments and ministries
of defense. We believe that one of the key challenges facing
defense organizations is to improve operational efficiency. To
help our clients, we develop solutions that focus on improving
efficiency and simplifying infrastructure. We also work with
defense organizations to improve their war-fighting, logistics
and business processes. Our solutions include developing
innovative solutions for the sharing of information and
integrating geographically diverse operations. For example,
beginning in 1999 and continuing through this year we have
worked closely with the United States Navy Commander in Chief,
Pacific Fleet, a command responsible for approximately 240,000
people, 200 ships and 1,400 aircraft from the West Coast of the
United States to the Persian Gulf. We helped
</FONT>

<P align="center"><FONT size="2">125
</FONT>

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<DIV align="left">
<FONT size="2">the command to redesign its organizational
processes by developing Internet-based tools to improve the
efficiency of its operations and to enhance its communication
systems.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Aviation. </FONT></I></B><FONT size="2">In
our aviation industry sector, we serve airlines, airports and
other aviation industry companies. In fiscal year 2001, we
served seven of the nine airlines listed in the 2001 <I>Fortune
</I>Global 500. We believe that the airline industry faces
increasing pressure to reduce costs, enhance customer
satisfaction and improve security. We also believe that airline
companies require the highest quality systems integration
solutions because of their need for real time information and
processing efficiency. In addition to systems integration
solutions, we assist airlines around the world with improving
their business processes in administrative, maintenance, repair
and operational areas. We also are offering electronic services
and solutions in the areas of operations strategy,
implementation and customer service. We are one of the
industry&#146;s key implementers of integrated enterprise
resource planning solutions, having implemented these solutions
in one-third of the 2001 <I>Fortune </I>Global 500 airlines. In
addition, we currently are working closely with the new
Transportation Security Administration in the United States,
including through several of our strategic alliance
relationships. We have developed design and program concepts for
improving airline and airport security that we are applying in
our initial work.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Post and Surface Transport.
</FONT></I></B><FONT size="2">In our post and surface transport
industry sector, we serve post or mail, railroad and sea-based
transportation companies and organizations. We also serve
logistics service providers, such as warehousing and
distribution organizations. We believe that these industries are
benefiting from the speed and efficiency provided by electronic
business. We also believe, however, that the use of electronic
business makes the successful fulfillment of customer orders
more difficult. Our client service staff are providing our
clients with solutions that improve fulfillment accuracy, reduce
costs of fulfillment and simplify and increase the efficiency of
the connection between order taking and fulfillment. We also
work with companies to develop better international logistical
support. For example, in 2002, we are helping the United States
Postal Service develop a strategy for the realignment of its
international service centers and its global transportation
links. We have also assisted the United States Postal Service in
developing its overall logistics strategy as well as redefining
the processes and technologies necessary to implement this
strategy.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial
Services</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In our Financial Services industry group, we
serve companies in the banking, insurance, capital markets and
investment management industries. In fiscal year 2001, we served
75 of the 116 financial services companies in the 2001
<I>Fortune </I>Global 500. While each of these industry sectors
has unique issues, we believe they share common challenges,
including economic pressures from increased competition and an
evolving regulatory environment. Other common themes for this
industry in our experience include managing customer
relationships, managing credit risk and write-offs and
streamlining core business processes as well as complying with
increasing regulatory requirements. We share resources and
learning within this group, allowing us to develop and market
solutions to clients in a timely and cost-effective manner. Many
of our clients are active in more than one industry sector, and
we work closely as one team to apply individual skills to meet
client needs.
</FONT>

<P align="center"><FONT size="2">126
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth industry net
revenues and percentage of total industry net revenues for the
twelve countries and geographic areas described above and a
representative list of clients for the periods indicated for the
Financial Services industry group. The clients listed below are
some of our largest clients in this industry group, in terms of
net revenues, for fiscal year 2001.
</FONT>

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

<TR>
    <TD width="55%"><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="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>
</TR>

<TR>
    <TD colspan="9"></TD>
</TR>

<TR>
    <TD colspan="9" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="9"></TD>
</TR>

<TR>
    <TD colspan="9" align="center" nowrap><B><FONT size="1">Financial Services Industry Group</FONT></B></TD>
</TR>

<TR>
    <TD colspan="9" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Year Ended</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Nine Months Ended</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">June 30, 2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">March 31, 2002</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">Industry Net Revenues (in thousands):
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">884,846</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">488,340</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">Percent of Total Industry 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">17</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>
    <TD colspan="9" align="left"><HR size="1" noshade></TD>

</TR>

</TABLE>
</CENTER>

<DIV align="center">
<FONT size="2">Examples of Clients in Fiscal Year 2001
</FONT>
</DIV>

<DIV align="left">

</DIV>

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

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">ABN AMRO
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Aetna, Inc.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Allianz AG
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">American Express Company
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Aviva (formerly CGNU)
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">AXA
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Bank of Montreal Group of Companies
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Barclays Bank Plc
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Citigroup, Inc.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Credit Suisse Group
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Deutsche Bank AG
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">FleetBoston Financial
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">J.P. Morgan Chase
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Lloyds TSB
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Prudential Financial Company
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Soci&#233;t&#233; G&#233;neral
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Swiss Re
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">UBS AG
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Wells Fargo Bank
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Zurich Financial Services
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <BR>
    <FONT size="2">
    ________________________________________________________________________________
    <BR>
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Banking. </FONT></I></B><FONT size="2">In
our banking industry sector, we serve commercial and savings
banks, diversified financial institutions and other lending
organizations. We believe that the rapid growth of
banking-related electronic commerce, the convergence, or coming
together of, the financial services industries and the
deregulation of the banking industry make it possible for new
entrants to effectively compete with more mature companies. To
compete effectively in this new market, we believe that banks
must effectively sell a wide range of products through multiple
points of customer contact, including telephone banking,
Internet banking and mobile services as well as card services,
automated teller machines and traditional branches. Our practice
focuses on helping banks to use new technologies to optimize the
relationships with their customers, improve shareholder value
and enhance banking operations and infrastructure management.
For example, in 2001, we assisted FleetBoston in a variety of
important projects and efforts, including the implementation of
its customer relationship management strategy in several
significant areas within the bank. FleetBoston has chosen
Siebel-<I>e</I>Finance as its primary systems solution to manage
its customer relationships. Working closely with us, FleetBoston
customized Siebel-<I>e</I>Finance applications and integrated
them into their systems, improving access to customer data and
enhancing customer service and sales and marketing abilities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Capital Markets.
</FONT></I></B><FONT size="2">In our capital markets industry
sector, we serve both established and emerging capital market
organizations, including global investment banks. We believe
that the capital markets industry is characterized by
consolidation, cross-border trading and the need for more
efficient transaction processing. We also are seeing an evolving
regulatory and accounting environment. We are working with
several clients to implement the concept of straight-through
processing to implement one-day clearing of capital markets
transactions which would represent a major step forward in the
speed and accuracy of capital markets transaction processing. We
also help clients modernize and simplify their operations and
financial reporting processes. For example, we are currently
working with a client in the redesign of its financial reporting
systems, helping them with their electronic procurement
initiatives and reviewing the systems implications of the
client&#146;s adoption of United States generally accepted
accounting principles as its primary basis of reporting.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Insurance. </FONT></I></B><FONT size="2">In
our insurance industry sector, we serve life insurance
companies, property and casualty and health insurance companies,
reinsurance companies and insurance brokerages. We believe
industry consolidation, new technology and reduced regulatory
barriers as well as an increased focus on risk management are
the key industry challenges and opportunities. We believe the
insurance industry also faces critical challenges as companies
introduce more points of customer contact and move more services
online.
</FONT>

<P align="center"><FONT size="2">127
</FONT>

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<DIV align="left">
<FONT size="2">Clients recognize that online services will make
it possible to deliver a faster and simpler customer experience
at a significantly lower cost, but the industry remains
constrained by its existing infrastructure limitations. We work
with clients to determine their competitive strategies and to
align and implement new processes and technologies. For example,
in October&nbsp;2001, we successfully implemented a
custom-developed medical underwriting application for a leading
insurance company. The application replaced an existing
paper-based system, which improved processing speed and
efficiency and reduced costs. The program was delivered
successfully in an eight month time period to support peak
processing during annual enrollments. Key objectives of the
application have already been exceeded, including achieving
automated decision making for a significant percentage of
applications and providing an underwriting rule base that is
maintained and added to by business analysts.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Investment
Management.</FONT></I><FONT size="2">
</FONT></B><FONT size="2">In our investment management industry
sector, we serve investment and wealth management organizations.
Despite a slower than expected start, we believe that consumer
demand for Internet-based financial planning services will rise.
To compete with banks and to attract and retain customers,
investment managers will need to transform their organizations
into consumer-oriented companies powered by technology. We also
perform surveys and market analysis of the wealth management and
private banking industries. We help our clients define their
strategy and develop and implement technology. We also provide
merger integration advisory services. We believe our practice
helps our clients improve internal management systems by
integrating existing technology with new systems and linking
them to their customers.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">Information,
Communications and Entertainment</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In our Information, Communications and
Entertainment industry group, we serve companies in the
telecommunications, entertainment and media and hospitality and
leisure industry sectors. Many of our clients have businesses in
more than one of these industry sectors, which we believe have
several common challenges and opportunities, including:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">maximizing revenues by selling multiple products
    and services to the same customer,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">attracting and retaining customers in an
    increasingly competitive marketplace,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">exploiting the combination of content,
    distribution and consumer devices,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">capitalizing on increasing consumer acceptance of
    wireless communications and mobile devices and services,
    </FONT></TD>
</TR>

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">creating an efficient, common infrastructure to
    integrate diverse operations.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">By covering these industry sectors in one
industry group, we are able to better understand these common
issues by sharing resources, learning and solutions among these
sectors across the world, while also addressing the unique needs
and challenges of each sector.
</FONT>

<P align="center"><FONT size="2">128
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth industry net
revenues and percentage of total industry net revenues for the
twelve countries and geographic areas described above and a
representative list of clients for the periods indicated for the
Information, Communications and Entertainment industry group.
The clients listed below are some of our largest clients in this
industry group, in terms of net revenues, for fiscal year 2001.
</FONT>

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

<TR>
    <TD width="57%"><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="7%"><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>
</TR>

<TR>
    <TD colspan="9"></TD>
</TR>

<TR>
    <TD colspan="9" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="9"></TD>
</TR>

<TR>
    <TD colspan="9" align="center" nowrap><B><FONT size="1">Information, Communications and Entertainment Industry Group</FONT></B></TD>
</TR>

<TR>
    <TD colspan="9" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Year Ended</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Nine Months Ended</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">June 30, 2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">March 31, 2002</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">Industry Net Revenues (in thousands):
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">691,990</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">447,246</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">Percent of Total Industry 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</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">13</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR>
    <TD colspan="9" align="left"><HR size="1" noshade></TD>

</TR>

</TABLE>
</CENTER>

<DIV align="center">
<FONT size="2">Examples of Clients in Fiscal Year 2001
</FONT>
</DIV>

<DIV align="left">

</DIV>

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

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">AOL Time Warner
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">AT&#38;T
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Bertelsmann Music Group
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Bell Canada
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Bell South Corporation
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Cable &#38; Wireless Plc
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Deutsche Telekom AG
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">France Telecom
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Genuity, Inc.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">KPN
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">NTT DoCoMo, Inc.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Sodexho Inc.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Sony
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Sprint Corporation
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Telefonica S.A.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Telstra S.A.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Verizon
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Vodafone Group Plc
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">The Walt Disney Company
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">WorldCom, Inc.
    </FONT></TD>
</TR>

</TABLE>

<DIV align="left">

</DIV>

<DIV align="left">
<FONT size="2">________________________________________________________________________________
<BR>
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Communications.
</FONT></I></B><FONT size="2">In our communications industry
sector, we serve the following types of companies:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">traditional long distance and local telephone
    companies,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">cable and satellite operators,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">wireless communications providers,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">providers of fiber-optic and other cable
    facilities, with high-bandwidth or transmission capacity,
    </FONT></TD>
</TR>

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">other communication service providers, such as
    call centers, which are centers which typically manage an
    organization&#146;s interactions with customers through the
    telephone and, increasingly, using other mediums of
    communication such as electronic mail.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">In fiscal year 2001, we served 20 of the 27
communications companies in the 2001 <I>Fortune </I>Global 500.
We believe that communications companies face opportunities and
challenges brought on by new technologies and changing
regulation as well as new business models and rapidly changing
customer requirements. The accessibility, flexibility and
convenience of wireless devices is an example of how technology
continues to change the communications industry. We also believe
that consumers are demanding increased bundling of services and
content. As a result, in our experience, enhanced customer
relationship and content management capabilities have become key
sources of competitive advantage for leading communications
companies. To help our clients manage these challenges, our
services often involve the implementation of our customer
relationship management services, including our <I>CRM Accel</I>
solution set. We also help our clients handle complex
infrastructure requirements through offerings such as our <I>New
World Networks </I>solution set. These solution sets are
described below.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Entertainment and Media.
</FONT></I></B><FONT size="2">In our entertainment and media
industry sector, we serve film, television, radio and publishing
companies. We also serve games, live entertainment and
advertising companies. In fiscal year 2001, we served seven of
the nine entertainment and media companies in the 2001
<I>Fortune </I>Global 500. We believe that the delivery of
entertainment and media over the Internet and digital
production, distribution and presentation of content will
continue to drive how these companies create and offer their
services. Electronic delivery also will greatly increase the
threat of the unauthorized duplication and distribution of
</FONT>

<P align="center"><FONT size="2">129
</FONT>

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

<DIV align="left">
<FONT size="2">content. Our practice is focused on effective and
efficient operation of the core and traditional entertainment
and media business segments, particularly in response to
continuing merger and consolidation activity. We also help
clients assess and prepare for the impact that new technologies
will have on the way their customers obtain and enjoy content.
In addition, we have service offerings, such as our digital
rights management solution, that help our clients protect their
content.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Hospitality and Leisure.
</FONT></I></B><FONT size="2">In our hospitality and leisure
industry sector, we serve clients that operate hotels, theme
parks, gaming facilities and cruise lines. We also serve food
and beverage service providers, rental car companies and sports
and leisure businesses. Our work in hospitality and leisure
focuses on a few major themes, including enhancing guest and
customer relations, strengthening business relationships and
improving employee relationships. We also assist our clients in
their efforts to improve the overall customer experience, which
we believe is a goal shared by all of our clients in this
industry sector. The solutions we are most often asked to
provide include customer relationship management, supply chain
management and the implementation of online information-sharing
networks. For example, we have helped our clients implement new
business-to-enterprise communication networks that allow
employees to stay better informed, resulting in better
communication with customers. We also have helped clients
improve the productivity of their procurement organizations by
consolidating purchasing activities across their businesses to
reduce costs.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Energy
and Utilities</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In our Energy and Utilities industry group, we
serve companies in the oil and gas, utilities and mining
industry sectors. We believe that businesses in these industry
sectors that are involved in exploration and extraction of
resources share a number of common challenges, including
management of capital intensive operations and volatile
commodity prices. Companies involved in the delivery of the
products and services of these industry sectors we believe also
share common challenges, including complex supply chain and
customer management concerns.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth industry net
revenues and percentage of total industry net revenues for the
twelve countries and geographic areas described above and a
representative list of clients for the periods indicated for the
Energy and Utilities industry group. The clients listed below
are some of our largest clients in this industry group, in terms
of net revenues, for fiscal year 2001.
</FONT>

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

<TR>
    <TD width="55%"><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="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>
</TR>

<TR>
    <TD colspan="9"></TD>
</TR>

<TR>
    <TD colspan="9" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="9"></TD>
</TR>

<TR>
    <TD colspan="9" align="center" nowrap><B><FONT size="1">Energy and Utilities Industry Group</FONT></B></TD>
</TR>

<TR>
    <TD colspan="9" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Year Ended</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Nine Months Ended</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">June 30, 2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">March 31, 2002</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">Industry Net Revenues (in thousands):
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">641,473</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">505,283</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">Percent of Total Industry 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</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">15</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR>
    <TD colspan="9" align="left"><HR size="1" noshade></TD>

</TR>

</TABLE>
</CENTER>

<DIV align="center">
<FONT size="2">Examples of Clients in Fiscal Year 2001
</FONT>
</DIV>

<DIV align="left">

</DIV>

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

<TR>
    <TD width="7%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Amerada Hess Corporation
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">American Electric Power
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">BP&nbsp;Group
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Centrica Plc
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">CEPSA
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">ChevronTexaco
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Duke Energy
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Endesa
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">E.ON Energie AG
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">ExxonMobil
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">LUKOIL Overseas
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Marathon Oil
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">OAO &#147;Gazprom&#148;
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">RAG Aktiengesellschaft
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Reliant Energy
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Repsol YPF
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Royal Dutch/Shell Group
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">RWE AG
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Southern Company
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Statoil ASA
    </FONT></TD>
</TR>

</TABLE>

<DIV align="left">
<FONT size="2">________________________________________________________________________________
<BR>
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Oil and Gas.
</FONT></I></B><FONT size="2">In our oil and gas industry
sector, we serve petroleum exploration, refining and
distribution companies and petrochemical businesses. In fiscal
year 2001, we served 20 of the 37 petroleum companies in the
2001 <I>Fortune </I>Global 500. We believe that consolidation in
this industry and the price volatility of oil are forcing
companies to manage their cost structures more effectively,
which includes the outsourcing of operations that are not core
to their businesses. The principal services we provide in this
industry include
</FONT>

<P align="center"><FONT size="2">130
</FONT>

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<DIV align="left">
<FONT size="2">implementing financial management systems,
improving supply chains and increasing outsourcing. They also
include integrating electronic management systems and electronic
markets into traditional business models. For example, working
with SAP AG, we have developed <I>SAP PRA</I>, a production and
revenues accounting component for use in SAP&#146;s enterprise
resource planning software. This application is now a major
component of the <I>mySAP Oil &#38; Gas</I> software solution.
This software enables our clients to manage the entire
production and revenues process. We have successfully
implemented this software at both Texaco and Marathon Oil and
are currently implementing the solution at ChevronTexaco and BP
Exploration and Productions&#146; operations in the United
States, excluding Hawaii and Alaska, for which we are also the
finance and accounting business process outsourcing provider.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Utilities. </FONT></I></B><FONT size="2">In
our utilities industry sector, we serve electric, gas and water
utility companies. In fiscal year 2001, we served 18 of the 28
utilities companies in the 2001 <I>Fortune </I>Global 500. We
believe that this industry is characterized by deregulation,
globalization and convergence, or the coming together of
previously separate industries or industry segments. To help
clients succeed in this environment, we have developed a
business process architecture map, called <I>The Utilities
Jigsaw,</I> which describes the evolution of utility company
business processes due to deregulation. Our solutions in this
industry sector focus on improving our clients&#146; supply
chains and integrating their information systems throughout
their operations. For example, we helped design and implement
opciona.com, the leading utility sector business-to-business
electronic market in Spain and Latin America. Opciona has
already enabled a large Spanish utility company to benefit from
lower equipment costs and reduced transaction costs for
purchasing.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Mining. </FONT></I></B><FONT size="2">In
our mining industry sector, we serve mining companies in the
world&#146;s key mining regions. In fiscal year 2001, we served
two of the three metals and mining companies in the 2001
<I>Fortune </I>Global 500. We believe that the mining industry
is characterized by increased consolidation and volatile
commodity prices. To succeed in this environment, we believe
that companies must decrease costs by improving their asset
management and procurement processes and integrating
cross-border operations. We work with mining clients on a
variety of projects, including mine planning and modeling,
operational effectiveness and physical asset management. For
example, in a recent engagement we helped redesign operations at
a client&#146;s coal mine that resulted in a substantial
reduction in unit costs and staff levels while maintaining mine
output.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Solution
Areas</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We also approach our business by grouping our
services into seven services areas, which we refer to as
solution areas. We group our solution areas into the following
three broad categories:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">develop, which is developing business, technology
    and change strategies for our clients,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">deliver, which is designing and implementing
    technology-based business processes and solutions, and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">operate, which is our application management and
    business process outsourcing offering which we intend to grow as
    one of our growth strategies.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">131
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The chart set forth below illustrates how we view
our solution area offerings to clients.
</FONT>

<P align="center">
<IMG src="y61876y59117a1.gif" alt="(SOLUTION AREAS CHART)">

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our accounting systems do not track our revenues
by solution area.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Strategic
Change</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In our Strategic Change solution area, we help
our clients understand trends and other forces affecting their
industries and help design and implement strategies to better
differentiate our clients in their marketplaces. Our Strategic
Change practice is an important component of our integrated
approach to serving clients. Our Strategic Change client service
staff work closely with our functional and technical
implementation solution areas to design achievable
implementation plans for our proposed strategies. Within
Strategic Change, we divide our services into the three separate
service offerings described below.
</FONT>
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    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Corporate and Operations
    Strategy.</FONT></I></B><FONT size="2"> We focus in this service
    offering on questions such as where to compete, including
    analyzing which products to sell and in which markets and for
    which customers to compete. We also analyze how to compete,
    including identifying a company&#146;s core strengths and
    competitive advantages. In addition, we help our clients develop
    the business models necessary to integrate their corporate
    strategies into their operations to enhance shareholder value.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Organization and Change
    Strategy.</FONT></I></B><FONT size="2"> We support our clients
    with organizational recommendations that help them match their
    culture, people, structures, processes and information
    technology with their corporate and operations strategy. Our
    recommendations often involve large-scale organizational
    changes. Our services also include change management and
    leadership coaching.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Information Technology
    Strategy.</FONT></I></B><FONT size="2"> We help our clients
    design and plan information technology architectures, or plans,
    to support their corporate strategies and to gain competitive
    advantage. We also create information technology transition
    programs that help our clients realize the full potential of
    their information technology investments.
    </FONT></TD>
</TR>

</TABLE>

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<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer
Relationship Management</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In our Customer Relationship Management solution
area, we help our clients strengthen their customer
relationships by responding to customer needs while reducing
operational cost. We provide a range of customer relationship
management services globally, but our projects usually involve
one or more of the elements described below.
</FONT>
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    <TD align="left">
    <B><I><FONT size="2">Vision. </FONT></I></B><FONT size="2">We
    help our clients look at the way they interact with their
    customers and help them understand their existing
    customer-related capabilities and limitations. We use this
    process to help our clients frame a vision for the future of
    their customer relationships. In the process of creating a
    customer relationship management vision, we also identify how
    other businesses and organizations interact with customers,
    looking for processes that are the best in the marketplace. We
    then work with our clients to develop integrated plans to
    transform current operations to meet the goals that we develop
    with our clients.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Multi-channel.
    </FONT></I></B><FONT size="2">We help our clients design and
    apply integrated technology solutions to assist them in serving
    their customers through the variety of ways, or channels, in
    which they interact with their customers. This includes product
    and service campaign management, computer-automated marketing
    management and call center operations. Our newly launched <I>CRM
    Accel </I>solution set, described below, helps us serve our
    clients by integrating traditional and new communication tools
    to efficiently and effectively target customers and customer
    needs.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Analytics. </FONT></I></B><FONT size="2">We
    help our clients better understand their customers and their
    habits, needs and history. Working with our clients, we build
    insight into potential and existing customers from the various
    data sources they have available. We then use these insights to
    help our clients develop customized campaigns, products and
    services to improve their customer relationships.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">An example of a recent engagement is our work at
American Airlines&#146; customer call center. We helped American
Airlines redesign their call center processes to enable
customers to obtain information more quickly. As a result of our
work, American Airlines has substantially reduced its average
customer call time, which is resulting in significant cost
savings.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial
Management</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In our Financial Management solution area, we
help our clients design and implement business process and
technology solutions for their finance and accounting functions.
We work closely with SAP, Oracle and PeopleSoft as well as other
technology vendors to serve the core systems needs of our
clients in this area. Our service offerings help clients address
the changing role of finance and better manage capital and
profits. We also help them increase the visibility of financial
information and maximize the benefits of technology. We
currently are focusing on three key issues facing our clients,
as described below.
</FONT>
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    <B><I><FONT size="2">Financial Management Strategy.
    </FONT></I></B><FONT size="2">We believe that the internal
    finance function is evolving to a smaller and virtual
    organization capable of supporting new initiatives without
    compromising its traditional guardianship role. Our solutions
    include advising clients concerning finance strategy, realizing
    the benefits from process automation and profit improvement.
    They also include organizational design, training, modeling and
    measurement.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Continued Automation of Financial
    Processes. </FONT></I></B><FONT size="2">We believe that
    financial technologies and an understanding of the best
    practices within an industry and marketplace are becoming
    increasingly interwoven and are helping to accelerate the
    evolution of the finance function toward a virtual organization.
    Our finance technology solutions help clients manage their
    applications and infrastructure to reduce costs and increase
    value for our clients. These solutions include core enterprise
    resource planning financial systems, systems integration and
    process engineering. They also include shared services design
    and implementation, outsourcing strategy, merger integration and
    technology selection and implementation.
    </FONT></TD>
</TR>

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    <B><I><FONT size="2">Effectively Managing Information.
    </FONT></I></B><FONT size="2">We believe that managing
    information effectively is becoming a necessary competency of
    the finance function. In our experience, the finance function
    brings a unique perspective to informing and enabling
    intelligent business decisions. Its traditional roles in
    measuring and controlling internal performance, measuring
    customer profitability and performing competitive analysis as
    well as new roles such as measuring the performance of
    collaborative business networks provide the finance function
    with an important role in understanding and using information.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">We are continually developing solutions to
improve our clients&#146; financial management capabilities. For
example, our <I>iAnalytics </I>solution set, described below, is
designed to allow senior management to set strategy and deploy
appropriate process and technology to implement key performance
measures throughout the entire organization.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Human
Capital</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In our Human Capital solution area, we help our
clients with the full lifecycle of people management. We design
human capital strategies, manage workforce knowledge and seek to
improve employee productivity through the application of
appropriate tools and technologies. We believe that attracting,
developing and retaining talented employees is essential to the
success of nearly all of our clients. We provide services in
this solution area in a wide range of areas, including the ones
described below.
</FONT>
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    <B><I><FONT size="2">Human Resources Process
    Improvement.</FONT></I></B><FONT size="2"> We help our clients
    develop their human capital strategy, focusing on developing and
    deploying various human resources processes and technologies to
    meet their business needs. Clients also seek our advice on
    developing electronic-based human resources processes, moving to
    shared service centers or outsourcing their human resources
    processes, people and technologies to a third party, or a
    combination of all three.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Learning.</FONT></I></B><FONT size="2"> We
    assist our clients in designing appropriate learning strategies.
    We also help create and deliver both traditional classroom
    training and, working with our alliance members, Internet based
    training. We work with our clients to operate their Internet
    learning environment in a cost effective manner.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Business-to-Employee.</FONT></I></B><FONT size="2">
    We work with our clients to integrate strategy, process and
    technology to allow them to connect easily through the Internet
    with their employees. Our service offering in this area enables
    employees to communicate, conduct and attend training and manage
    key self-service functions such as benefits administration.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Human Resources
    Technology.</FONT></I></B><FONT size="2"> Working with our
    strategic alliance members such as Oracle, PeopleSoft and SAP,
    we assist our clients with designing, building and implementing
    human resources systems. These systems often extend beyond human
    resources administration and payroll and include systems to
    enhance recruitment, competency and performance management and
    succession planning. They also enable our clients to perform
    these functions over the Internet.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">We work to provide our clients with appropriate
advice on how to maintain and enhance their human capital. For
example, we conduct frequent marketplace surveys to help ensure
that we have up to date information on which our clients can
compare their human resources operations to the human resources
operations of their competitors.
</FONT>

<P align="left">
<I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Supply
Chain and Operations</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In our Supply Chain and Operations solution area,
we help our clients improve profitability by making their supply
chain, which includes both the internal movement of inventory
and the movement of goods to and from suppliers and customers,
more effective through process improvement and the use of
advanced technologies. Our solutions help streamline new product
development and planning, make procurement more efficient and
strengthen customer and supplier relationships. Our
comprehensive supply chain services cover the areas described
below.
</FONT>

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    <TD align="left">
    <B><I><FONT size="2">Supply Chain
    Strategy.</FONT></I></B><FONT size="2"> We help our clients
    understand their existing supply chain by analyzing current
    processes and infrastructure. We also help design a supply chain
    strategy by looking at the practices of other companies and
    determining which processes would be advantageous for our
    clients.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Integrated Supply Chain
    Planning.</FONT></I></B><FONT size="2"> We help our clients
    adjust manufacturing to meet fluctuating demand through
    improvement of business processes and application of technology.
    We also help our clients collaborate, increasingly through
    electronic networks, with suppliers and customers.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Integrated Supply Chain Enterprise Resource
    Planning.</FONT></I></B><FONT size="2"> Through design and
    implementation of integrated technologies from technology
    providers such as Oracle, PeopleSoft and SAP, we help clients
    respond to rapidly changing conditions through efficient access
    to and exchange of information.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Product Lifecycle
    Management.</FONT></I></B><FONT size="2"> We provide process and
    technology solutions that integrate and simplify new product
    design, manufacture and delivery processes.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Procurement.</FONT></I></B><FONT size="2">
    We help our clients develop capabilities to electronically
    collaborate with suppliers for efficient supply procurement and
    inventory management.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Logistics and
    Distribution.</FONT></I></B><FONT size="2"> We use technology
    solutions to help our clients improve efficiency through the
    integration of warehouse and transportation management processes.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Many of our services involve the use of
Internet-based technologies. For example, we have helped deploy
technologies to allow for electronic fulfillment of customer
orders, electronic procurement and collaborative forecasting
between purchasers and suppliers in several major client
organizations.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">Information
Technology</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Information Technology solution area
represents our core resource for the design and implementation
of complex information technology projects. Our client service
staff are responsible for all phases of technology
implementation, from strategic planning and design to
implementation and testing. Within this solution area, we
provide our clients with expertise in a wide range of areas,
including the areas described below.
</FONT>
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    <B><I><FONT size="2">Systems Integration.
    </FONT></I></B><FONT size="2">We provide our clients with
    expertise in enabling hardware, operating systems and software,
    including software from multiple vendors, to function as an
    integrated solution. We also have expertise in the design and
    development of application systems with a focus on
    Internet-based and other leading technology platforms. In
    addition, we work on complex testing and configuration
    engagements, often in connection with other solution areas.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Data Warehousing and Data Mining.
    </FONT></I></B><FONT size="2">In our data warehousing and data
    mining service offering, we focus on helping our clients find
    information in multiple computer databases and files and
    bringing the information to the user as well as helping our
    clients organize information for easy future use. For example,
    our <I>iAnalytics </I>solution set, described below, utilizes
    data warehousing and data mining technologies to find
    information that may be buried in multiple computer systems.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Informational Technology Business
    Management. </FONT></I></B><FONT size="2">We help our clients
    manage their internal information technology departments and
    processes, often consulting with chief information officers and
    chief technology officers. Our goal is to help our clients
    effectively manage their procedures and tools to maximize the
    efficiency and functionality of their information technology
    departments.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Program Management.
    </FONT></I></B><FONT size="2">Our program management specialists
    are experts in managing the complex processes of technology
    implementation. For example, we provide clients with experienced
    project and program management resources to organize and manage
    the implementation of major technology programs.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">Our engagements involving Information Technology
solutions, particularly our systems integration and data
warehousing projects, usually involve large-scale strategic
planning and development followed by global or national
implementations. We maintain and renew the expertise of our
technology client service staff by focusing on the fundamentals
of methods, tools and training. The fundamentals also include
knowledge sharing and hands on experience as new technologies
emerge.
</FONT>

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<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I><FONT size="2">Application
Management and Business Process Management</FONT></I>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We currently provide a limited amount of
outsourcing services for our clients. Historically, these
services, in terms of revenues, have not been as large as our
other solution areas. We plan to grow both our application
management and business process management services in the near
future to complement our strategy and implementation strengths.
Our goal is to provide these services in conjunction with our
other solutions so that we provide a complete set of integrated
services and solutions to our clients, allowing us to manage the
entire lifecycle of a business function or application.
</FONT>
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    <B><I><FONT size="2">Application Management Services.
    </FONT></I></B><FONT size="2">In our application management
    practice, we perform ongoing maintenance and development
    services for important software applications, such as enterprise
    resource planning systems, which control functions such as
    financial reporting and human resources. Although we currently
    provide a limited amount of these services, we plan to expand
    these services considerably.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Business Process Management Services.
    </FONT></I></B><FONT size="2">Business process management
    services, which are services in which entire processes, like
    accounting and financial reporting systems, are administered and
    operated by a service provider, have not historically been part
    of the management consulting and technology services businesses
    which are being transferred to us as part of our separation from
    the PricewaterhouseCoopers network of firms. Following the
    closing of this offering, we plan to build our business process
    management services business to complement our strategy and
    implementation strengths. When we enter into business process
    management services contracts with a client, we or one of our
    affiliates usually hire a portion of the staff previously
    employed by the client to help perform the business process that
    we will operate for the client. As part of our separation, the
    PricewaterhouseCoopers firms are transferring a portion of their
    business process management services businesses to us, which we
    will use as a platform to build this solution offering. The
    portion of their businesses being transferred to us is a group
    of contracts, which we believe are consistent with our strategy
    to grow our outsourcing services in industries and solution
    areas where we believe we have competitive strengths. Although
    the PricewaterhouseCoopers firms will be able to compete with us
    in various agreed upon manners, we do not believe that the
    continued operation by the PricewaterhouseCoopers firms of their
    business process management services businesses will have a
    negative impact on our business process management services
    business.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">To complement our application management and
business process management services, we will continue to offer
infrastructure management services to our clients, which are
services in which large-scale, capital-intensive technology
systems are owned or operated by third party technology service
providers, primarily through our strategic alliance
relationships with EDS, Intel Online Services and other
information technology outsourcing companies. Following this
offering, we will continue to rely on our existing strategic
relationships, and on new strategic relationships we may enter
into following this offering, to provide these services to
clients.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Although we have been providing application
management and business process management services since 1991
and 1995, respectively, we have limited experience in providing
these types of outsourcing services on the scale and in the
industries and solution areas contemplated by our growth
strategy. We are in the process of building the organization we
need to expand this solution area. We need to hire new client
service staff with skills and capabilities that are different
than those of our consulting partners and other consulting
client service staff. We also need to create new methodologies
to support this service offering.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe that our client base of many
<I>Fortune</I> Global&nbsp;500 companies, which we expect to be
the companies more likely to seek outsourcing services, may help
us market our services because of our existing relationships. We
intend to focus on areas of application management and business
process management services, such as financial management
services, in which we believe our core expertise in business
processes may give us a competitive advantage. We also believe
that our strong strategic alliances with leading software
companies will help us build this solution area.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have many alliances, which are relationships
with technology companies and companies in other fields that
extend our capabilities and service offerings. We categorize our
alliances based on the importance of the alliance to our
business and our clients. Our most important alliances are our
strategic alliances, to which we devote considerable resources,
such as marketing, trained client service staff and
infrastructure support. We also have a number of important
relationships that we refer to as our managed alliances. These
alliances produce technologies that complement our knowledge and
skills to build value-adding solution offerings for our clients.
Most of our alliance relationships are applicable to multiple
industry groups, although some of our alliances relate to a
specific solution area or industry segment. Our alliances are
not exclusive.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We currently have strategic alliances with seven
companies. We devote significant resources to these strategic
alliances. For example, as of March 2002, we had more than
12,000 client service staff trained and experienced in
implementing one or more applications or technologies developed
by Oracle, PeopleSoft, SAP and Siebel. Our strategic alliances
also provide us with important leads regarding new projects and
engagements. In addition, we work with these companies to
develop new solutions and services.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our alliances generally include one or more of
the following cooperative elements or agreements:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">resale arrangements, in which technology vendors
    provide us with the ability to offer discounts to our clients on
    hardware and software,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">development arrangements, in which we agree to
    jointly develop new capabilities for existing products or
    services,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">joint marketing arrangements,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">access to demonstration software licenses, which
    allow us to use software from our vendors as part of our
    development and marketing activities,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">access to or discounts on training programs and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">arrangements to dedicate client service staff and
    other resources to building the alliance relationship.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Although we have entered into agreements with
most of the companies with which we have strategic alliances,
many aspects of our relationships with these companies are not
subject to written agreements. These written agreements
generally have short terms, usually no more than two years, and
can be extended in most cases. Most of these agreements also can
be terminated with or without cause upon short notice. While we
believe our alliance relationships are an important part of our
strategy to offer comprehensive solutions to our clients, our
alliance agreements generally do not require us or the other
parties to provide any specified number of referrals or achieve
any particular level of revenues. In addition, our decision on
which alliance member to work with on a particular engagement is
often more heavily influenced by the needs of the specific
client or the nature of our relationship with the client than
the existence of our alliance relationship. Furthermore, these
agreements are not required in order for us to implement or
deploy the software or hardware of the companies with which we
have alliances.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following tables set forth a description of
our strategic and managed alliance relationships.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Strategic
Alliances</I></FONT></B>

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

<TR>
    <TD width="25%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="72%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Company</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Alliance Description</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">
    <FONT size="2">EDS
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">We work with EDS to offer clients enterprise-wide
    solutions. The alliance is mainly focused around SAP outsourcing
    opportunities.
    </FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Hewlett-Packard
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">We work with Hewlett-Packard both as a reseller
    of their equipment and through our strategic relationship to
    provide supply chain collaboration and other solutions. The
    alliance uses Hewlett-Packard&#146;s infrastructure and platform
    strengths and our system integration and business consulting
    services.
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">137
</FONT>

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

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

<TR>
    <TD width="25%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="72%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Company</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Alliance Description</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">
    <FONT size="2">Oracle
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">We work with Oracle to provide enterprise
    solutions to transform our clients&#146; businesses. These
    solutions span the entire enterprise, including customer
    relationship management, supply chain management and online
    network, or portal, solutions.
    </FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PeopleSoft
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">We work with PeopleSoft to help our clients
    create human resources, financial management, customer
    relationship management and supply chain solutions on various
    platforms, including through the Internet.
    </FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">SAP
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">We work with SAP to provide solutions that help
    companies collaborate electronically with customers, suppliers,
    employees and shareholders. These systems are delivered to
    enable companies to win new business, improve responsiveness,
    lower costs and manage their business more effectively.
    </FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Siebel Systems
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">We work with Siebel Systems to deliver customer
    relationship management and employee relationship management
    technologies that help our clients interact effectively with
    their customers, partners and employees across multiple points
    of contact including the Internet, call centers and personal
    contact. These multiple contact points also include wireless
    communication, retail contact and dealer contact.
    </FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Sun Microsystems
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">We work with Sun Microsystems globally across
    many industries as a reseller of their technology and to help
    our clients develop solutions, such as customer relationship
    management, addressing critical business functions.
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Managed
Alliances</I></FONT></B>

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

<TR>
    <TD width="25%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="72%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Company</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Alliance Description</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">
    <FONT size="2">BEA Systems
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">We work with BEA Systems to deliver a broad array
    of application integration services for our clients focusing on
    customer relationship management, supply chain and operations,
    human capital and financial management solutions.
    </FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cognos
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">We work with Cognos to help our clients implement
    analytics-based solutions that allow our clients to maximize and
    streamline their decision-making processes, as well as to
    monitor their key measures of business performance.
    </FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Documentum
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">We work with Documentum to deliver
    enterprise-wide content management solutions to our clients. In
    addition, we have developed tailored solutions with Documentum
    to deliver content management functionality to meet the complex
    requirements of the pharmaceuticals industry sector.
    </FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Epicentric
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">We work with Epicentric to implement and manage
    portal, or online network, initiatives that provide access to
    business information and applications, allowing an enterprise to
    interact with employees, customers and suppliers in new and more
    effective ways.
    </FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">i2 Technologies
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">We work with i2 Technologies across their entire
    product suite to build value-based business systems to improve
    our clients&#146; supply chain and customer service
    effectiveness. We also have built a number of online public and
    private trade exchanges based on i2 Technologies software.
    </FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Informatica
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">We work with Informatica to help our clients
    achieve a complete view of their business and to gain insight
    that is critical for maximizing business efficiency, performance
    and profitability.
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">138
</FONT>

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

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

<TR>
    <TD width="25%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="72%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Company</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Alliance Description</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">
    <FONT size="2">Intel Online Services
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">We work with Intel Online Services primarily to
    provide web hosting and information technology outsourcing
    services to our clients. We also work with Intel Online Services
    to assist our clients with the fundamental processing
    infrastructure requirements needed to support their information
    technology requirements across their entire enterprise.
    </FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Manugistics
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">We work with Manugistics to deliver innovative
    supply chain planning and transportation management solutions to
    our clients.
    </FONT></TD>
</TR>

<TR>
    <TD colspan="3"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Microsoft
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="bottom">
    <FONT size="2">We work with Microsoft on a variety of levels
    worldwide to deliver efficient business systems to our clients.
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A key component of our continuous innovation
strategy is our solution set program. This formal program
involves identification of key technology and business trends
and anticipating the challenges and opportunities they create
for our clients. We create specialized combinations of business
strategy, process change and technology to address these
challenges and opportunities. We refer to these combinations as
our Solution Sets. We believe that our Solution Sets provide us
with a quick and cost-effective means to develop reusable
solutions for our clients that we believe are advanced and
focused on the most important issues facing our clients.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This formalized innovation process involves an
ongoing process of looking at our external markets and client
organizations to find new opportunities. It also involves
allocating resources to each solution set. Each of our solution
sets is in a different stage of development, with some being
marketed actively to clients and others continuing to be
developed and refined internally or at a limited number of
clients. Costs related to solution set research and development
activities are expensed as incurred. Once a solution set is
ready to be deployed on a larger scale, we migrate the solution
to one of our seven solution areas and it becomes a standard
offering.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">During the past year, we invested in a number of
solution sets which we believe are, and will continue to be,
important to the success of many of our clients. These solution
sets are described below.
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Business-to-Enterprise.</FONT></I></B><FONT size="2">
    Our <I>Business-to-Enterprise</I> solution set helps companies
    improve internal employee communication and the flow of
    information. The core of our <I>Business-to-Enterprise</I>
    solution set is the implementation of a company-wide online
    network, or portal, through which employees perform selected
    business processes. Some businesses and organizations have
    implemented business-to-enterprise portals to serve as the
    primary means of communication among employees. Other companies
    are using business-to-enterprise portals as the way to manage
    routine business tasks, such as time reporting by employees.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Collaborative Value
    Chain.</FONT></I></B><FONT size="2"> Our clients are
    consistently seeking ways to better collaborate with their
    suppliers, customers and other trading partners. Through our
    alliance with Hewlett-Packard, we have developed a set of
    process and technology solutions to allow our clients to quickly
    make improvements in this area. Our <I>Collaborative Value
    Chain</I> solutions set includes process and technology
    architecture for design and development of public and private
    online commerce centers and trade exchanges.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">CRM Accel.</FONT></I></B><FONT size="2">
    Our clients are seeking to better manage and exploit the
    multiple ways, or channels, of connecting with customers. The
    <I>CRM Accel</I> solution set helps a client manage the various
    ways in which it connects with its customers. The increasingly
    broad use of new communication tools such as electronic mail,
    interactive television and Internet access challenges our
    clients to monitor and respond appropriately to customer needs,
    regardless of the means of communication. Our <I>CRM Accel</I>
    solution set helps our clients understand how to integrate these
    new communication tools with more traditional means of
    communication. We believe the technology behind this solution
    set is particularly important for those clients who need to
    deploy a standard set of communication management processes and
    technology solutions with broad marketplace acceptance.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">139
</FONT>

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

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">iAnalytics.</FONT></I></B><FONT size="2">
    We use the term <I>iAnalytics</I> to describe the information,
    methods and technologies needed to solve complex business
    problems. Our <I>iAnalytics</I> solution set provides our
    clients with the tools necessary to collect, combine, manage and
    distribute important information within a business. For example,
    this solution set permits a business to link corporate strategy
    with performance measures and distribute these measures
    throughout the organization.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Integrated
    Technologies.</FONT></I></B><FONT size="2"> Our <I>Integrated
    Technologies</I> solutions set is a combination of several of
    our key infrastructure development skills which are often used
    in our other Solutions Sets and service offerings. These skills
    include the following:
    </FONT></TD>
</TR>

</TABLE>
<P>

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

<TR>
    <TD width="6%"></TD>
    <TD width="4%"></TD>
    <TD width="90%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">identifying emerging technologies and the impact
    they will have on existing businesses,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">integrating technology from multiple providers,
    particularly technology that was never designed to work together,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">improving the performance of existing information
    technology assets, including intangible assets, like people and
    processes, and tangible assets, such as hardware and software,
    and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">providing hardware and software procurement
    services.
    </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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Normally, we provide these services as part of
    our broader set of client services. Taken together, however,
    these services also form our <I>Integrated Technologies</I>
    solution set.
    </FONT></TD>
</TR>

</TABLE>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">New World
    Networks.</FONT></I></B><FONT size="2"> Our <I>New World
    Networks</I> solution set is an integrated set of customer
    management technology components for companies that provide
    communication, data handling and online services over the
    Internet. This solution set combines technology from a variety
    of commercial off-the-shelf products, including software from
    Siebel, Vitria and Syndesis, to form an integrated suite of
    services for our clients, including service connection, order
    management, billing and customer care management. By offering
    integrated functions based on commercial off-the-shelf
    solutions, we believe this solution set provides our client with
    a reliable and cost-effective way to build customer loyalty and
    brand-awareness. We have implemented this solution set at over
    160 clients.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Transformation.</FONT></I></B><FONT size="2">
    Our <I>Transformation</I> solution set helps companies and
    organizations evolve from integrated business models to a
    portfolio of business operations. Each operating entity is
    designed to maximize use of external business alliances. The
    application of this solution set begins with a highly analytical
    financial review of a client&#146;s business and then sets a new
    value enhancing vision and operating model, establishes a change
    blue print and guides the client through the steps required for
    a successful implementation.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Business Development and Marketing</FONT></B>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Sales
Process</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our partners promote our solutions and expertise
in the marketplace primarily through direct contact with
existing and potential clients. We currently have approximately
1,400 partners globally. Our sales resources are deployed into
the market in two primary ways. First, we dedicate partners to
establishing and building relationships with existing or
potential clients based on our expectations regarding future
revenues from the client. Our strategic clients are those
clients that we feel will benefit from substantial services from
us on a continuing basis. For these clients, we devote
considerable resources, including at least one dedicated
relationship partner and focused teams of partners and dedicated
sales staff to cultivate and manage our relationships with
executives in the company or organization. We currently have
approximately 100 strategic clients, which are selected by our
global management team.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We also have more than 300 clients for whom we
provide, or expect to provide, significant services, which we
refer to as our managed clients. We use focused teams of
partners to build relationships with these clients. Our managed
clients are selected primarily by our geographic theatre
leadership teams and are often served in only one geographic
theatre or region. Depending on our expectations of future work,
we also allocate, as
</FONT>

<P align="center"><FONT size="2">140
</FONT>

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<DIV align="left">
<FONT size="2">appropriate, business development resources to
our other clients, whom we refer to as our portfolio clients.
Many of these clients are developing or emerging companies that
we believe have high growth potential.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our second approach to promoting our services
across our geographic theatres and industry groups is focused on
our specific functional and technical specialties, services and
solutions. A majority of our partners sell in this manner to
clients in all three of our client segments, strategic, managed
and portfolio. This type of focused selling is carefully
coordinated with relationship partners and teams in our
strategic and managed accounts. In addition, our alliance
relationships provide us with important leads and the
opportunity to work together to pursue and win engagements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In both of our primary selling approaches, we
provide clear incentives for our partners and dedicated sales
staff. Each partner, for example, has a specific plan and set of
objectives for his or her respective sales or other client
activities for the year. Our partners are paid on the basis of a
balanced scorecard of performance measures, in which the amount
of revenues generated and other client activity by the partner
are primary measures of partner contribution.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Because we tend to book new engagements at
particular times of the year, such as during the first three
months of each calendar year when our clients&#146; new budgets
generally become available, and some of our fiscal quarters
contain fewer available work days due to traditional holiday and
vacation patterns, we experience some seasonal variations in our
revenues. Please see &#147;Management&#146;s Discussion and
Analysis of Financial Condition and Results of
Operations&#151;Quarterly Results of Operations&#148; for
additional information on our quarterly results.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our client relationships are not exclusive.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Marketing
Program</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We changed our name on June&nbsp;10, 2002, and
will begin operating under our new brand upon our separation. We
plan to spend approximately $110&nbsp;million in the aggregate
in fiscal year 2002 and 2003 on marketing in connection with
this change. We expect to invest this amount in the promotion of
our brand through Internet, print and broadcast advertising as
well as other means of marketing. Although the proposed SEC
no-action letter would permit us to continue to use the name
&#147;PwC Consulting&#148; for up to four years following the
closing of this offering, we believe that changing our name at
this time provides us with several advantages. In addition to
emphasizing our separation from the PricewaterhouseCoopers
network of firms, the introduction of our new brand in this
manner provides us the opportunity to build a brand image more
appropriate for a public company. We believe that establishing a
new brand at this time is important for us to fully implement
some of our growth strategies.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of March 2002, we had approximately 34,000
partners and employees, and we expect to have approximately
33,000 employees, including partners, following our separation.
For the fiscal year ended June&nbsp;30, 2001, and for the nine
month period ended March&nbsp;31, 2002, our turnover rates for
client serving employees other than partners, were 21.6% and
10.4%, respectively, excluding involuntary terminations. Our
turnover rate varies from year to year depending on various
economic conditions. For example, for the twelve months ended
December&nbsp;31, 2000, our turnover rate was 25.4%, excluding
involuntary terminations, reflecting the strong marketplace
demand for people with the skills of our client service staff.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We compete for global, regional and local
engagements across and within the four geographic regions, or
theatres, in which we have operations. We are one of the
world&#146;s leading providers of management consulting and
technology services. Our industry, however, is highly fragmented
and competitive. We compete against a number of different types
of businesses, including:
</FONT>
<P>

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<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">large consulting and systems integration firms
    such as Accenture, CapGemini/ E&#38;Y, KPMG Consulting and
    Deloitte Consulting in the areas of management consulting and
    technology services,
    </FONT></TD>
</TR>

</TABLE>

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<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">management and strategy consulting firms such as
    Bain&nbsp;&#38; Company, Booz Allen&nbsp;&#38; Hamilton, Inc.,
    The Boston Consulting Group and McKinsey &#38; Company in the
    areas of general business strategy and information technology
    strategy,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">information technology product and service
    vendors such as IBM Global Services, Hewlett-Packard and EDS in
    the areas of information technology and systems integration
    services,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">small specialty consulting firms, especially in
    Europe and North America, with strong regional or local
    practices or expertise in specific industry groups such as
    energy and utilities,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">specialized Internet and electronic business
    services firms,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">internal strategy or business development
    departments of clients and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">internal information technology departments of
    clients, particularly with respect to our outsourcing solution
    area because these services often replace all or part of a
    company&#146;s internal information technology department.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The identities of our key competitors vary
depending on the geographic theatre or country involved except
with respect to competitors with a global presence. While there
are a large number of firms competing in our industry, there are
only a few firms with a global presence and broad service
offerings. In this category, we regularly compete globally
against Accenture and IBM Global Services.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Industry
Conditions</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The competitive conditions in our industry are
changing. For example, outsourcing services are becoming more
important to many businesses and organizations. We believe our
primary competitors for our outsourcing solution area will be
Accenture, EDS and IBM Global Services. In our experience, there
is an increasing trend among some of our clients and potential
clients to move to a preferred provider structure in which they
rationalize, or reduce, the number of consultants and technology
service providers from which they receive services. We also
believe that many of these clients and potential clients will
require that their preferred providers offer a full range of
services, including outsourcing services.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">There is also an increasing focus on the
independence of management consulting and technology services
providers from auditing practices. Historically, some of the
largest management consulting and technology service providers
were part of the &#147;Big 5&#148; accounting firm networks. All
of these accounting firm networks, however, recently have
separated, at least in part, their consulting and technology
practices from their accounting and other businesses or
announced an intention to do so. Accenture Ltd., formerly known
as Andersen Consulting, formally separated from Andersen
Worldwide and Arthur Andersen, one of the &#147;Big&nbsp;5&#148;
accounting firm networks, in August&nbsp;2000. KPMG Consulting
Inc. completed its separation from KPMG&nbsp;LLP, the United
States firm of another &#147;Big&nbsp;5&#148; accounting
network, in February&nbsp;2001. In addition, in 2000,
Ernst&nbsp;&#38; Young&#146;s management consulting business was
sold to Cap Gemini S.A., a European information technology
services company. In June 2002, Deloitte Touche Tohmatsu
announced plans to separate Deloitte Consulting, its management
consulting practice, through a private transaction, by the end
of 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have described in more detail the changing
industry conditions set forth above and others, as well as the
risks for us as a result of these changes, under &#147;Risk
Factors&#151; The management consulting and technology services
industry is highly competitive, and if we do not compete
effectively, our revenues and profitability may decline.&#148;
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Methods
of Competition</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe that the principal methods of
competition in our industry are the following:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the quality of the client service staff to be
    assigned to the engagement,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">a track record of executing the type of work to
    be performed in the engagement,
    </FONT></TD>
</TR>

</TABLE>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">offering services that are focused on the
    client&#146;s needs and designed to achieve measurable results,
    </FONT></TD>
</TR>

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the ability to work well with a client&#146;s
    employees,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">industry, business process and information
    technology expertise and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">offering a broad range of services, including
    outsourcing services.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe our competitive strengths are all
positive factors in helping make us one of the world&#146;s
leading management consulting and technology service providers.
In addition, we believe that many of our competitors specialize
in a narrow range of services, have a more limited geographic
reach than we do, or do not have deep industry expertise. There
are a number of consultants and service providers, however, that
effectively compete with us for engagements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Because of the independence-related issues
described in this prospectus, we currently are at a competitive
disadvantage compared with our major competitors that are not
constrained by these issues. These competitors are able to enter
into strategic alliances, joint ventures and outsourcing
arrangements with, and offer contingent fee or other
risk-sharing arrangements to, their clients, without the
constraints of independence that limit us. Their clients also do
not limit their services because of independence-related issues.
In addition, we need to develop our outsourcing solution area,
which we have been constrained in developing due in part to
independence issues. We also need to develop stronger
capabilities in systems integration services, primarily in
Europe, in order to compete effectively for engagements that
require these services, particularly engagements to transform a
business and outsourcing engagements.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Competition
with the PricewaterhouseCoopers Firms</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Although we have entered into noncompetition
arrangements with the PricewaterhouseCoopers firms, following
our separation the PricewaterhouseCoopers firms will continue to
be able to offer some management consulting and technology
services, such as most human resources services, including
through existing consulting and advisory services businesses
that are not being transferred to us. In addition, the
PricewaterhouseCoopers firms will be able to offer all
management consulting and technology services to clients that
have less than a specified amount of revenues in a particular
country or region where services will be provided, which is
$400&nbsp;million in the United States, $1&nbsp;billion in the
United Kingdom and $1&nbsp;billion in Germany. These firms,
however, will not be permitted to provide any of the restricted
management consulting and technology services if these clients
have $5&nbsp;billion or more in aggregate annual worldwide
consolidated revenues. This competition may result in confusion
among our clients and industry vendors and may also further
reduce the likelihood that leads from the PricewaterhouseCoopers
firms will continue following this offering. We believe that our
business in Europe will be most affected by the loss of these
leads and competition from the PricewaterhouseCoopers firms.
Please see &#147;Arrangements with the PricewaterhouseCoopers
Network of Firms&#151; Rollup Agreements&#151; Noncompetition
Arrangements&#148; for a description of the noncompetition
agreements between us and the PricewaterhouseCoopers firms.
</FONT>

<P align="left">
<B><FONT size="2">Intellectual Property and Knowledge
Management</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our most valuable assets are our client service
staff and the building, renewing and sharing of knowledge,
skills and experiences among them. We believe the sharing of
knowledge, skills and experiences across our global business
enables us to provide consistent, quality services to our
clients.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our intellectual property consists of our
reusable methodologies, techniques and expertise developed
through our consulting engagements, research and other
activities as well as our industry point-of-view reports,
training materials and other publications. We believe that this
intellectual property has significant and ongoing value, but we
also believe in the need to constantly update and develop new
intellectual property to stay ahead of industry, business and
technology trends, meet the needs of our clients today and
anticipate their future needs. We also believe that the skills
and processes through which our employees develop new
intellectual property are valuable.
</FONT>

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<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Proprietary
Methods and Tools</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We offer a wide variety of services to our
clients. To manage these diverse services, we apply a common
methodology, called <I>Ascendant</I>, to harmonize our offerings
and manage our engagements. <I>Ascendant</I> is our method for
delivering our services and offers extensive online guidance on
how to plan and execute each type of project. It also includes
<I>Ascendant TEAM</I>, our secure Internet-based project office
and collaboration tool which allows project team members,
including clients and vendors, to share project information and
work products.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Building
and Renewing the Skills of Our Client Service
Staff</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our global training program offers a combination
of classroom, self-paced and Internet-based training courses.
Our curriculum is accessible through an Internet-based learning
network and has a catalog of over 3,500 course offerings. In
fiscal year 2001, we provided over 200,000&nbsp;days of
instructor-led training to more than 41,000 participants and
more than 1,000,000&nbsp;hours of Internet-based learning. Our
global training center in Tampa, Florida also provides a
state-of-the-art facility dedicated to training our client
service staff. This center, along with our six other dedicated
regional training centers and local training facilities, allow
us to provide a useful combination of classroom, local and
remote training. Our training and skill development programs
have received recognition from a variety of sources. For
example, <I>Training,</I> a professional development magazine,
has ranked us number 20 on their 2002 annual list of the
<I>Training </I>Top&nbsp;100, a list of companies that the
magazine identifies as having a commitment to workforce
development.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Knowledge
Management</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We provide our client service staff with global
access to skills and techniques. Through our knowledge
management repositories, our client service staff worldwide have
access to our latest knowledge and best practices, reference
material and learning from recent client engagements and
industry trends. We have extensive programs and technologies to
capture and share knowledge among our employees, such as our
dedicated knowledge management employees whose responsibilities
include identifying, evaluating and disseminating examples of
innovative services and materials throughout our organization.
Approximately 190,000 documents are continuously available to
our client service staff globally. Approximately 1,000&nbsp;new
documents, on average, are added for knowledge sharing each
month to these repositories. In addition, we maintain a
proprietary database of corporate benchmark data, including
detailed process performance metrics for more than 150 major
companies worldwide, which are used as input as we help clients
transform their businesses.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Intellectual
Property Protection</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We rely on a combination of trademark, service
mark, copyright and trade secret laws to protect our
intellectual property along with confidentiality and non-compete
agreements with our employees. We also use these agreements to
protect the intellectual property of third parties for which we
have a license. We depend on our clients to respect the
copyright on our materials, to limit distribution of our
materials to within their organizations and to use the
intellectual property we provide for their internal business
purposes only. We generally do not require our clients to enter
into any contractual obligations, other than customary
confidentiality agreements, with respect to their use of our
intellectual property. In addition, we endeavor to limit access
to, or distribution of, all confidential information generated
in the course of our business or disclosed to us by clients or
others. Our trademarks generally are perpetual in nature.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We pursue the protection of our trademarks in the
United States and several foreign jurisdictions. Policing
unauthorized use of our copyrighted material and trademarks is
difficult and expensive. Our efforts to protect our intellectual
property rights may not deter misappropriation of our
intellectual property. In addition, our competitors may adopt
product or service names similar to ours, impeding our ability
to build brand identity and possibly leading to customer
confusion. Our competitors also may independently develop
similar methodologies, techniques and expertise, and we would
have no claim against them. We may be subject to legal
proceedings and claims from time to time relating to the
intellectual property of others in the ordinary
</FONT>

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<DIV align="left">
<FONT size="2">course of our business. We may incur substantial
expenses in defending against these third-party infringement
claims, regardless of their merit.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The PricewaterhouseCoopers firms will transfer to
us all their right, title and interest in intellectual property
that is used either exclusively or primarily in our business. We
will grant back to the PricewaterhouseCoopers firms a perpetual,
irrevocable, royalty-free and fully-paid license to use, in a
manner consistent with previous use in any business other than
our business, intellectual property that is used primarily, but
not exclusively, in our business. The PricewaterhouseCoopers
firms will retain ownership in intellectual property that is
neither exclusively nor primarily used in our business, and they
will grant to us a perpetual, irrevocable, royalty-free and
fully paid license to use, in a manner consistent with our
previous use, the retained intellectual property to the extent
it is used in our business.
</FONT>

<P align="left">
<B><FONT size="2">Description of Facilities</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Monday Ltd&#146;s principal executive office is
in Hamilton, Bermuda. Monday SCA&#146;s and Monday Finance
SA&#146;s principal executive offices are in Luxembourg,
Luxembourg. We have offices in over 180&nbsp;locations in
52&nbsp;countries or territories, including offices in Atlanta,
Chicago, Dallas, Frankfurt, Hong Kong, London, Madrid, New York,
Paris, Philadelphia, San Francisco, S&#227;o Paulo, Sydney,
Tokyo and Toronto. We do not own any material real property.
Substantially all of our office space is leased. We believe that
our facilities are adequate to meet our needs in the near future.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We currently share office space with the
PricewaterhouseCoopers firms and will continue to do so
following our separation. The amount of space, however, that we
share currently is less than 50% of our total leased space and
will continue to decline prior to and after our separation.
Please see &#147;Arrangements with the PricewaterhouseCoopers
Network of Firms&#151;Assignment and Assumption Agreements,
Sublease Agreements and Master License Agreement&#148; for a
description of the types of arrangements we will have with these
firms.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are involved in a number of judicial,
administrative and arbitration proceedings concerning matters
arising in the ordinary course of our business. We do not expect
that any of these matters, individually or in the aggregate,
will have a material impact on our results of operations or
financial condition.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The United States firm of PricewaterhouseCoopers,
PricewaterhouseCoopers&nbsp;LLP, and several other Big&nbsp;5
accounting firms and their separated management consulting
businesses are defendants in <I>Warmack-Muskogee Limited
Partnership v. PricewaterhouseCoopers LLP, et al., </I>Case
No.&nbsp;E2001-504-3, Chancery Court, Miller County, Arkansas.
The purported but uncertified plaintiff class action, filed in
October 2001, seeks unspecified damages for claims relating to
the manner in which certain travel and related expenses were
charged to clients of the defendants.
PricewaterhouseCoopers&nbsp;LLP is also responding to a subpoena
from the Inspector General of the United States Postal Service
relating to similar issues involving government clients. We are
not a party to any litigation, nor have we received any
subpoenas, relating to these matters. Under the terms of the
rollup agreements, we have agreed to take responsibility for 25%
of the costs of PricewaterhouseCoopers&nbsp;LLP in responding to
these matters, including any judgments or settlement costs.
PricewaterhouseCoopers&nbsp;LLP and we intend vigorously to
respond to these matters, and we do not believe that the outcome
of these matters will have a material adverse effect on our
financial position, results of operations or cash flows.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">One of our Indonesian businesses, PT
PricewaterhouseCoopers Indonesia Konsultan, together with the
PricewaterhouseCoopers audit and business advisory and tax and
legal services firm in Indonesia and one of its partners are
defendants in a lawsuit in the District Court of South Jakarta,
Indonesia, Case No.&nbsp;111/ Pdt/ G/2002/ PN Jak.Sel. The tort
action, filed on March&nbsp;7, 2002, by the Province
Administration of East Kalimantan seeks $770&nbsp;million in
damages for claims relating to a statement by
PricewaterhouseCoopers in its Indonesian Mining Industry Survey
and a related statement by a PricewaterhouseCoopers partner
commenting on a legal action being brought by the Province
Administration of East Kalimantan against a
</FONT>

<P align="center"><FONT size="2">145
</FONT>
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">joint venture in East Kalimantan. Neither
PT&nbsp;PricewaterhouseCoopers Indonesia Konsultan nor any other
entity which is a part of our company participated in any of the
actions in dispute in the litigation, and we believe that
PT&nbsp;PricewaterhouseCoopers Indonesia Konsultan was joined as
a defendant in this action in error. We intend to vigorously
respond to this litigation, and we do not believe that the
outcome of this matter will have a material adverse effect on
our financial position, results of operations or cash flows.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Enforceability of Civil Liabilities Against
Us</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Monday Ltd is organized under the laws of Bermuda
and Monday SCA and Monday Finance SA are organized under the
laws of Luxembourg, and a large part of their respective assets
will be located outside the United States. As a result, it may
not be possible to enforce court judgments obtained in the
United States against Monday Ltd, Monday SCA or Monday Finance
SA based on the civil liability provisions of the federal or
state securities laws of the United States in Bermuda,
Luxembourg or in countries other than the United States where
they will have assets. Because of Monday Ltd&#146;s and Monday
SCA&#146;s substantial contact with the United States, and
because most of Monday Ltd&#146;s directors and officers are
residents of the United States, you will likely be able to
effect service of process within the United States on Monday
Ltd. or Monday SCA or on such persons. However, there is some
doubt as to whether the courts of Bermuda, Luxembourg and other
countries would recognize or enforce judgments of United States
courts obtained against Monday Ltd, Monday SCA or Monday Finance
SA or their respective directors or officers based on the civil
liabilities provisions of the federal or state securities laws
of the United States or would hear actions against us or those
persons based on those laws. We have been advised by our legal
advisors in Bermuda and Luxembourg that the United States does
not currently have a treaty with Bermuda and Luxembourg,
respectively, providing for the reciprocal recognition and
enforcement of judgments in civil and commercial matters.
Therefore, a final judgment for the payment of money rendered by
any federal or state court in the United States based on civil
liability, whether or not based solely on United States federal
or state securities laws, would not automatically be enforceable
in Bermuda or Luxembourg. Similarly, those judgments may not be
enforceable in countries other than the United States.
</FONT>

<P align="center"><FONT size="2">146
</FONT>
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<!-- link1 "MANAGEMENT" -->
<DIV align="left"><A NAME="014"></A></DIV>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In this section, the words &#147;we,&#148;
&#147;us&#148; and &#147;our&#148; refer only to Monday Ltd and
not any of its subsidiaries.
</FONT>

<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">Each of our board of directors and the board of
directors of Monday Finance&nbsp;SA currently consists of three
members. All our directors currently are partners of a
PricewaterhouseCoopers firm. Prior to the completion of the
concurrent offerings, Mr.&nbsp;Brown and Mr.&nbsp;Leipzig will
resign their positions. We plan to expand the size of our board
of directors following this offering, including by appointing a
number of independent outside directors and a number of our
partners to our board of directors. It is our current
expectation, however, that a majority of our board will be
comprised of independent outside directors. Once we have
completed our director search process, we expect to have between
nine and eleven directors.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Monday&nbsp;SCA is a Luxembourg partnership
limited by shares and, therefore, does not have any directors or
executive officers of its own. Monday&nbsp;Ltd is the general
partner, or manager, of Monday&nbsp;SCA and its directors and
executive officers are listed below. See &#147;Our
Organizational Structure&#148; for a description of our
management power with respect to Monday&nbsp;SCA.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth information as to
our directors and executive officers and the directors and
officers of Monday Finance&nbsp;SA.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Monday
Ltd</I></FONT></B>

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

<TR>
    <TD width="39%"><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="52%"><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">Gregory D. Brenneman
    </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">President, Chief Executive Officer and Director
    Nominee
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Willard W. Brittain
    </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">54</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 Operating Officer
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">J. Frank Brown
    </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">46</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Deputy Chairman and Director
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Michael S. Collins
    </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">49</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Managing Partner, Americas theatre
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Dennis J. Dall
    </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">60</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Managing Partner, Asia Pacific theatre
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Steven C. DeSutter
    </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">48</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, Corporate Communications
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">David V. Dockray
    </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">49</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Managing Partner, EMEA theatre
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Ronald B. Hauben
    </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">General Counsel and Corporate Secretary
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Thomas A. Leipzig
    </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">Bennett R. Machtiger
    </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 and Chief Marketing Officer
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Clive D. Newton
    </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">49</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, Human Resources
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Thomas C. O&#146;Neill
    </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">57</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 and Chairman of the Board
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Jose Luiz T. Rossi
    </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">43</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Managing Partner, SOACAT theatre
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Frank S. Sowinski
    </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">46</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 Financial and Administrative Officer
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Monday
Finance SA</I></FONT></B>

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

<TR>
    <TD width="39%"><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="52%"><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 valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Gregory D. Brenneman
    </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">President and Chief Executive Officer
    </FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">J. Frank Brown
    </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">46</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 valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Thomas A. Leipzig
    </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">Thomas C. O&#146;Neill
    </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">57</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 and Chairman of the Board
    </FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Frank S. Sowinski
    </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">46</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 Financial Officer
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Business
Experience and Background</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">Gregory D. Brenneman</FONT></B><FONT size="2">
is the President, Chief Executive Officer and a director nominee
of our company. He assumed his current duties in June&nbsp;2002.
From May&nbsp;2001 to June&nbsp;2002, Mr.&nbsp;Brenneman was the
Chairman and Chief Executive Officer of TurnWorks, Inc., a
private equity firm he founded in 1994. From
</FONT>

<P align="center"><FONT size="2">147
</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="left">
<FONT size="2">September&nbsp;1996 to May&nbsp;2001,
Mr.&nbsp;Brenneman was the President and Chief Operating Officer
of Continental Airlines. Prior to this he served as its Chief
Operating Officer. Prior to his positions at Continental and
TurnWorks, Inc., from 1987 to 1995 Mr.&nbsp;Brenneman held
various positions with Bain and Company, Inc., including partner
and a member of the Policy Committee of the Board of Directors,
where he specialized in corporate turnarounds.
Mr.&nbsp;Brenneman serves on the board of directors of The Home
Depot, Inc., J.&nbsp;Crew Group, Inc. and Automatic Data
Processing, Inc.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">Willard W. Brittain
</FONT></B><FONT size="2">is the Chief Operating Officer of our
company. He assumed the duties of chief operating officer for
the management consulting and technology services businesses of
the PricewaterhouseCoopers network of firms in August 2000. From
July 1998 until August 2000, he was Vice Chairman of the
PricewaterhouseCoopers network of firms with responsibility for
the lines of service. From July 1997 until July 1998, he served
as the Vice Chairman of the Price Waterhouse network of firms
with responsibility for the Price Waterhouse lines of service.
From 1995 to 1997, Mr. Brittain was Vice Chairman of the United
States firm of Price Waterhouse responsible for its lines of
service. Mr.&nbsp;Brittain joined the Price Waterhouse firm in
the United States in 1974 and was admitted as a partner in 1983.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">J.&nbsp;Frank Brown
</FONT></B><FONT size="2">currently is a director and the Deputy
Chairman of our company. Since August 2000, he has been the
Global Leader for Assurance and Business Advisory Services of
the PricewaterhouseCoopers network of firms. From July 1998 to
July 2000, Mr.&nbsp;Brown was the Managing Partner of
PricewaterhouseCoopers New York area offices. From April 1995 to
June 1998, Mr.&nbsp;Brown was the Managing Partner of the New
York area offices of Price Waterhouse. He joined the Price
Waterhouse firm in the United States in 1980 and was admitted as
a partner in 1989. Mr.&nbsp;Brown will resign as a director of
our company prior to the closing of this offering.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">Michael S. Collins
</FONT></B><FONT size="2">is the Managing Partner, Americas
theatre, which includes the United States, Canada and Mexico. He
assumed his current duties for the management consulting and
technology services businesses of the PricewaterhouseCoopers
network of firms in March 2000. Prior to this, he held the
consulting leadership position of Managing Partner of the east
business unit of the PricewaterhouseCoopers firm in the United
States from July 1998 to February 2000. From July 1997 to June
1998, he was Managing Partner of the United States eastern
region of the Price Waterhouse network of firms. From July 1995
to June 1997, he was Managing Partner of the United States
southeast region of the Price Waterhouse network of firms.
Mr.&nbsp;Collins joined the Price Waterhouse firm in the United
States in 1985 as a partner.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">Dennis J. Dall </FONT></B><FONT size="2">is
the Managing Partner, Asia Pacific theatre. He assumed his
current duties for the management consulting and technology
services businesses of the PricewaterhouseCoopers network of
firms in July 1998. From January 1996 until July 1998, he served
as the Managing Partner for the Price Waterhouse firms operating
in Australia, New Zealand and Indonesia. Mr.&nbsp;Dall joined
the Price Waterhouse firm in Australia in 1977 and was admitted
as a partner in the same year.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">Steven&nbsp;C. DeSutter
</FONT></B><FONT size="2">is the Senior Vice President of
Corporate Communications of our company. He assumed his duties
in June&nbsp;2002. From August&nbsp;2001 to June&nbsp;2002,
Mr.&nbsp;DeSutter was a senior vice president at TurnWorks,
Inc., a private equity firm founded by our President and CEO,
Greg Brenneman. From February&nbsp;2000 to June&nbsp;2001, he
was senior vice president of marketing for Powerway Inc., an
Internet solution provider of supply chain and management
software. Prior to that, from July&nbsp;1999 to
January&nbsp;2000, Mr.&nbsp;DeSutter was the executive vice
president of Executrain, a professional IT training firm. From
May&nbsp;1997 to June&nbsp;1999, Mr.&nbsp;DeSutter was president
of ABS-QE, a global auditing and consulting firm. From
January&nbsp;1978 to December&nbsp;1996, Mr.&nbsp;DeSutter held
numerous positions with subsidiaries of British Petroleum,
including director of corporate marketing and change management,
manager of mergers and acquisitions and general manager.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">David V. Dockray </FONT></B><FONT size="2">is
the Managing Partner, EMEA theatre, which includes countries in
Europe, the Middle East and Africa. He assumed his current
duties for the management consulting and technology services
businesses of the PricewaterhouseCoopers network of firms in
July 2001. From July 1998 until July 2001, he was the global
leader of the Products industry group for the management
consulting and technology services business of the
PricewaterhouseCoopers network of firms. From December 1995
until July 1998, he served as the Executive Partner of the
Coopers &#38; Lybrand consulting business in the United Kingdom.
</FONT>

<P align="center"><FONT size="2">148
</FONT>

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<DIV align="left">
<FONT size="2">Mr.&nbsp;Dockray joined the Coopers &#38; Lybrand
firm in the United Kingdom in 1982 and was admitted as a partner
in 1988.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">Ronald B. Hauben </FONT></B><FONT size="2">is
our General Counsel and Corporate Secretary. He assumed the
duties of general counsel for the management consulting and
technology services businesses of the PricewaterhouseCoopers
network of firms in July 2001. From July 1998 until July 2001,
he served as global chief corporate counsel for the
PricewaterhouseCoopers network of firms. From July 1997 to July
1998, he served as global chief corporate counsel for the Price
Waterhouse network of firms. Mr.&nbsp;Hauben joined the Price
Waterhouse firm in the United States in 1989 and was admitted as
a partner in 1997.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">Thomas A. Leipzig
</FONT></B><FONT size="2">currently is a director of our
company. Since October 1998, he has been the head of the Global
Regulatory and Independence Task Force of the
PricewaterhouseCoopers network of firms and has been responsible
for the implementation of various restructuring efforts. From
October 1991 to June 1998, Mr.&nbsp;Leipzig headed the United
States corporate finance business of the Price Waterhouse
network of firms. He joined the Price Waterhouse firm in the
United States in 1969 and was admitted as a partner in 1979.
Mr.&nbsp;Leipzig will resign as a director of our company prior
to the closing of this offering.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">Bennett&nbsp;R.
Machtiger</FONT></B><FONT size="2"> is the Senior Vice President
and Chief Marketing Officer of our company. He assumed his
duties in June&nbsp;2002. From September 1986 to June 2002,
Mr.&nbsp;Machtiger worked for Young &#38; Rubicam Inc., a member
of the WPP&nbsp;Group, which is a global marketing and
communications organization. While at Young &#38; Rubicam,
Mr.&nbsp;Machtiger held numerous senior management positions,
including managing partner of one of Young &#38; Rubicam&#146;s
largest client teams from January 1999 to June 2002, chief
operating officer of the Marsteller Advertising unit of Young
&#38; Rubicam from January 1996 to December 1998 and worldwide
account managing director for another large client team from
1991 to 1995.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">Clive D. Newton </FONT></B><FONT size="2">is
our Senior Vice President, Human Resources. He assumed his
current duties, as Global Leader of Human Capital, for the
management consulting and technology services businesses of the
PricewaterhouseCoopers network of firms in September 2000. From
July 1998 to June 2000, he was global head of Human Resources
for the PricewaterhouseCoopers network of firms. Prior to that
he was global head of Human Resources for the management
consulting businesses of the Price Waterhouse network of firms
from July 1996 to June 1998. Mr.&nbsp;Newton joined the Price
Waterhouse network of firms in 1982 and was admitted as a
partner in 1989.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">Thomas C. O&#146;Neill
</FONT></B><FONT size="2">is a director and the Chairman of our
board of directors. From January 2002 until June 2002, he served
as our Chief Executive Officer. From July 2000 until January
2002, he served as the Chief Operating Officer of the
PricewaterhouseCoopers network of firms. From July 1998 until
July 2001, he was the Chief Executive Officer of the
PricewaterhouseCoopers firm in Canada. From July 1996 until July
1998, when the mergers of the Coopers &#38; Lybrand and Price
Waterhouse network of firms occurred, he served as Chairman and
Chief Executive Officer of the Price Waterhouse firm in Canada.
Mr.&nbsp;O&#146;Neill joined the Price Waterhouse firm in Canada
in 1967 and was admitted as a partner in 1978.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">Jose Luiz T. Rossi
</FONT></B><FONT size="2">is the Managing Partner, SOACAT
theatre, which includes the countries in South America and
Central America. He assumed his current duties for the
management consulting and technology services businesses of the
PricewaterhouseCoopers network of firms in August 2001. From
July 1998 until August 2001, he was in charge of all the
technology services areas of the PricewaterhouseCoopers firms
operating in South America and Central America. From July 1996
until June 1998, he was responsible for the same duties for the
Price Waterhouse firms operating in South and Central America.
Mr.&nbsp;Rossi joined the Price Waterhouse firm in Brazil in
1986 and was admitted as a partner in 1989.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size="2">Frank S. Sowinski</FONT></B><FONT size="2"> is
the Chief Financial and Administrative Officer of our company.
He assumed his duties in May 2002. Prior to that,
Mr.&nbsp;Sowinski worked for 17&nbsp;years at Dun &#38;
Bradstreet, a leading business information provider listed on
the New York Stock Exchange. While at Dun&nbsp;&#38; Bradstreet,
Mr.&nbsp;Sowinski held numerous senior positions in finance,
general management and marketing, including chief financial
officer of Dun&nbsp;&#38; Bradstreet Corporation from November
1996 to September 1999, president of the Dun&nbsp;&#38;
Bradstreet Operating Company from September 1999 to October 2000
and senior vice president of the Dun&nbsp;&#38; Bradstreet
</FONT>

<P align="center"><FONT size="2">149
</FONT>

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<DIV align="left">
<FONT size="2">Corporation from October 2000 to April 2001.
Mr.&nbsp;Sowinski serves on the board of directors of Buckeye
Pipe Line Company, LP.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Board of Directors</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Upon the completion of our separation, our
bye-laws will provide for the division of our board into three
classes, as nearly equal in number as possible, with one class
to be originally elected for a term expiring at the annual
general meeting of shareholders to be held in 2003, another
class to be originally elected for a term expiring at the annual
general meeting of shareholders to be held in 2004 and the final
class to be originally elected for a term expiring at the annual
general meeting of shareholders to be held in 2005. Each
director will hold office until his or her successor is duly
elected and qualified. Commencing with the 2003 annual general
meeting of shareholders, directors elected to succeed directors
whose terms then expire will be elected for a term of three
years.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our bye-laws provide that directors may be
removed only for cause by the affirmative vote of the holders of
at least a majority of the voting power of all voting shares
then outstanding, voting together as a single class.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">All of our executive officers will be appointed
by and will serve at the discretion of our board of directors.
There are no family relationships among any of our directors and
executive officers.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our board of directors will have three primary
committees:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">an audit committee,
    </FONT></TD>
</TR>

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">a nominating committee.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The audit committee&#146;s primary duties and
responsibilities will be:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">assisting our board of directors with respect to
    the adequacy of our internal controls and financial reporting
    process and the reliability of our financial statements,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">assisting our board of directors with respect to
    the independence and performance of our internal auditors and
    independent auditors,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">assisting our board of directors with respect to
    our compliance with legal and regulatory requirements and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">recommending to our board of directors the
    appointment of the independent auditors.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The compensation committee, or a subcommittee
established by the compensation committee, will administer our
equity-based compensation and benefits plan and will review and
approve base and incentive pay and other matters relating to the
compensation of our executive officers. The compensation
committee also will review and make recommendations to the full
board of directors regarding board compensation.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The nominating committee will make
recommendations to our board of directors regarding the size and
composition of our board of directors, recruit and recommend
candidates for election to our board of directors, appoint
committee chairs and recommend directors for committee
membership, lead succession planning efforts, particularly with
respect to our chief executive officer, and approve programs for
senior executive development.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">From time to time, our board of directors may
establish other committees to facilitate the management of our
business.
</FONT>

<P align="center"><FONT size="2">150
</FONT>

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<P align="left">
<B><FONT size="2">Outside Director Compensation</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have not yet paid any compensation to outside
directors. We currently anticipate that, in the future, outside
directors will receive the following compensation, including
pursuant to our 2003 Non-Employee Directors&#146; Incentive Plan:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">an annual retainer of $50,000,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">an initial grant of an option to purchase 15,000
    Class&nbsp;A common shares upon election to our board of
    directors and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">a grant of an option to purchase 5,000
    Class&nbsp;A common shares on each date of our annual meeting of
    shareholders.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We currently anticipate that options granted to
our directors will vest over four years and will generally
expire after 10&nbsp;years. Other than annual retainer fees to
be paid to committee chairs, which are expected to range between
$2,500 and $7,500, we do not currently intend to pay meeting
fees or any other fees to our directors. We anticipate that our
directors will have the opportunity to defer or receive in
shares in whole or in part, all cash received as part of their
annual or committee chair retainer.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our outside directors will be required to satisfy
minimum share ownership policies that we establish from time to
time. Our current intention is for our directors to maintain a
shareholding of at least three times their annual retainer in
the form of our Class&nbsp;A common shares. Our directors will
have three years from the time of appointment or election to
reach this ownership level.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with our separation, our named
executive officers, as defined below, will enter into an
employment agreement with one of the businesses that will be
transferred to us. These agreements are described below.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensation</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Prior to our separation, our business was
conducted through a series of separate partnerships and
corporations under the control of local partners and
shareholders of the PricewaterhouseCoopers firms. The
corporations were operated in a manner similar to that of a
corporation. For these partnerships, earnings were available to
their partners as partnerships distributions. Partnership
distributions are not executive compensation in the customary
sense of that term because partnership distributions are
comprised of distributions of current earnings. Therefore it is
not practical to differentiate between the ownership components
of distributions to partners and shareholders from the
compensation components of such distributions. In connection
with our separation, we are restructuring the manner in which
our partners are compensated, as described below. As a result,
historic individual compensation information for our named
executive officers does not accurately reflect the compensation
we expect our named executive officers to earn. Accordingly, the
following table will set forth the expected compensation of our
chief executive officer and our four other most highly
compensated executive officers for fiscal year 2003, which we
expect to determine in the near future. We refer to these
individuals as our named executive officers.
</FONT>

<P align="center"><FONT size="2">151
</FONT>

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

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
    <TD></TD>
    <TD colspan="15"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">Annual Compensation</FONT></B></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><B><FONT size="1">Long Term Compensation</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="15" align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Awards</FONT></B></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="11"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><HR size="1" noshade></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Payouts</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Other</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Restricted</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Securities</FONT></B></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"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Annual</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">Underlying</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">All</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Name and</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></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">Awards</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">LTIP</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Other</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Principal Position</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Year<SUP>(1)</SUP></FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">($)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">($)<SUP>(2)</SUP></FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">($)<SUP>(3)</SUP></FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">($)<SUP>(4)</SUP></FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">(#)<SUP>(5)</SUP></FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Payouts</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Compensation<SUP>(6)</SUP></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>
    <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" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Gregory D. Brenneman
    </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">2003</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,000,000</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">1,500,000</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD><FONT size="1">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="1">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="1">6,250,000</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">1,000,000</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 align="right" valign="bottom"><FONT size="1">$</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">
    <FONT size="1">President and Chief Executive Officer
    </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>
    <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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Thomas C. O&#146;Neill
    </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">2003</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">900,000</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">300,000</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 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><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">
    <FONT size="1">Chairman of the Board
    </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>
    <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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Willard W. Brittain
    </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">2003</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">810,000</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">270,000</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 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><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">
    <FONT size="1">Chief Operating Officer
    </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>
    <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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Frank S. Sowinski
    </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">2003</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">810,000</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">270,000</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">1,500,000</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">&#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><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">
    <FONT size="1">Chief Financial and Administrative Officer
    </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>
    <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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">Michael S. Collins
    </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">2003</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">675,000</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">225,000</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 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><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">
    <FONT size="1">Managing Partner, Americas Theatre
    </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>
    <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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="1">David V. Dockray
    </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">2003</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">675,000</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">225,000</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 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><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">
    <FONT size="1">Managing Partner, EMEA Theatre<SUP>(7)</SUP>
    </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>
    <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>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="15%" align="left" noshade>
</DIV>

<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">The information presented in this summary
    compensation table is the expected compensation for our named
    executive officers for fiscal year 2003.
    </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">Amounts in this column represent the target
    annual incentive bonus established for our named executive
    officers for our 2003 fiscal year. Amounts actually paid to our
    named executive officers could be more or less than this target
    amount based upon our performance during our 2003 fiscal year.
    </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">Amounts in this column shown for
    Messrs.&nbsp;Brenneman, O&#146;Neill, Brittain, Sowinski and
    Collins represent a lump-sum work-life allowance that they will
    be entitled to receive during our 2003 fiscal year. The amount
    shown for Mr.&nbsp;Dockray represents an allowance that he will
    be entitled to receive during our 2003 fiscal year to cover
    expenses related to his maintenance of accommodations in London,
    as required for business purposes. In addition, pursuant to his
    executive employment agreement, Mr.&nbsp;Brenneman will be
    entitled to the following arrangements: an apartment in New York
    City; an office in The Woodlands, Texas; use of a private jet
    for business travel; and reimbursement of his expenses of one
    club selected by him. Pursuant to his executive employment
    agreement, Mr.&nbsp;Sowinski will be entitled to an apartment in
    the New York City or Philadelphia metropolitan area.
    </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">Pursuant to their executive employment
    agreements, Messrs.&nbsp;Brenneman and Sowinski will be entitled
    to receive an equity award at or immediately after the closing
    of the Class&nbsp;A common shares offering in the form of
    restricted Class&nbsp;A common shares which will vest pro rata
    over three years commencing on June&nbsp;2, 2003, for
    Mr.&nbsp;Brenneman and on the first anniversary of the closing
    of the concurrent Class&nbsp;A common shares offering for
    Mr.&nbsp;Sowinski. Messrs.&nbsp;O&#146;Neill, Brittain, Collins
    and Dockray also will be eligible to receive restricted share
    units in connection with the closing of this offering. Please
    see &#147;&#151;Partner Compensation&#148; for a description of
    our equity awards.
    </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">Pursuant to their respective executive employment
    agreements, Mr. Brenneman will be entitled to receive an option
    to purchase 1,000,000 Class&nbsp;A common shares that will vest
    pro rata over four&nbsp;years commencing on June&nbsp;2, 2003,
    and will have an exercise price equal to the initial public
    offering price of Class&nbsp;A common shares, and
    Mr.&nbsp;Sowinski will be entitled to receive an option to
    purchase our Class&nbsp;A common shares that will be valued at
    $3,600,000 (based on the fair market value of Class&nbsp;A
    common shares at the time of grant), that will vest pro rata
    over three&nbsp;years commencing on the first anniversary of the
    date of grant and that will have an exercise price equal to the
    fair market value of a Class&nbsp;A common share at the time of
    grant. The amount in this column shown for Mr.&nbsp;Sowinski
    assumes that the exercise price of his option will be $&nbsp;;
    however, the option will be granted 30&nbsp;days after the
    closing of this offering.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD><FONT size="2">(6)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Amounts in this column represent the
    contributions we expect to make on behalf of our named executive
    officers to our defined contribution retirement plans assuming
    each named executive officer made the maximum permitted employee
    contribution to such plans and the amounts described in the next
    sentence. Pursuant to their respective executive employment
    agreements, Mr.&nbsp;Brenneman will be entitled to receive a
    one-time allowance of $250,000 in connection with closing down
    of various businesses at TurnWorks, Inc., his private equity
    firm, and Mr.&nbsp;Sowinski will be entitled to receive a
    one-time signing bonus of $120,000 payable within 30&nbsp;days
    after the closing of this offering. In addition, pursuant to
    Mr.&nbsp;Brenneman&#146;s agreement, we will pay the premium for
    one or more life insurance policies maintained by him or us on
    his behalf.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD><FONT size="2">(7)&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Mr.&nbsp;Dockray will be paid in UK pounds
    sterling. The salary and bonus amounts shown will be paid at an
    exchange rate of
    $1&nbsp;=&nbsp;&#163;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    the reference exchange rate for June&nbsp;28, 2002. The amount
    shown for &#147;Other Annual Compensation&#148; reflect an
    exchange rate of
    &#163;1&nbsp;=&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    the reference exchange rate for June&nbsp;28, 2002.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Aggregate compensation paid to key employees who
are not named executive officers may exceed that paid to the
named executive officers.
</FONT>

<P align="center"><FONT size="2">152
</FONT>
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<P align="left">
<B><FONT size="2">&nbsp;&nbsp;<I>Executive Employment
Agreements</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following description sets forth the material
terms of the employment agreements for our named executive
officers, copies of which will be filed as an exhibit to the
registration statement of which this prospectus forms a part.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Gregory D. Brenneman.
</FONT></I></B><FONT size="2">Mr.&nbsp;Brenneman&#146;s
executive employment agreement has a term of three years
effective as of June&nbsp;2, 2002, and this term will be
extended automatically for additional three-year periods, unless
it is earlier terminated. During Mr.&nbsp;Brenneman&#146;s
employment with us, he will serve as our President and Chief
Executive Officer. We have agreed to cause Mr.&nbsp;Brenneman to
be nominated for election as a director of our board of
directors and to use our best efforts to secure his election.
Further, at any time beginning on the date of the closing of the
concurrent Class&nbsp;A common shares offering,
Mr.&nbsp;Brenneman may request to become our Chairman of the
Board, in which case we will use our best efforts to secure his
appointment. We agree that due regard will be given to
Mr.&nbsp;Brenneman&#146;s views in the selection of the initial
members of our board of directors.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Mr.&nbsp;Brenneman&#146;s base compensation will
be at least $1,000,000 per year and he will be entitled to a
target annual bonus opportunity equal to 150% of his base
salary. For the period beginning on June&nbsp;2, 2002, and
ending on June&nbsp;30, 2003, he will receive a guaranteed cash
bonus of $1,625,000.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, Mr.&nbsp;Brenneman will be entitled
to receive the following awards and other compensation.
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">An equity award at the closing of the concurrent
    Class&nbsp;A common shares offering in the form of restricted
    Class&nbsp;A common shares that will vest pro rata over
    three&nbsp;years commencing on June&nbsp;2, 2003, and will be
    valued at $6,250,000.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">A one-time grant of an option to purchase
    1,000,000 Class&nbsp;A common shares that will vest pro rata
    over four&nbsp;years commencing on June&nbsp;2, 2003, and will
    have an exercise price equal to the initial public offering
    price of our Class&nbsp;A common shares.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">An annual grant of an option to purchase our
    Class&nbsp;A common shares that will be equal in value to 400%
    of Mr.&nbsp;Brenneman&#146;s base salary then in effect, based
    on the fair market value of our Class&nbsp;A common shares at
    the time of grant. His annual grant in the year 2003, however,
    will be an option to purchase at least 200,000 Class&nbsp;A
    common shares that will vest pro rata over four&nbsp;years
    commencing on the first anniversary of the date of grant and
    will have an exercise price equal to the fair market value of a
    Class&nbsp;A common share at the time of grant.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Participation in a long-term incentive plan that
    will be developed by the board of directors with
    Mr.&nbsp;Brenneman&#146;s assistance.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Perquisites, including those described in
    footnote (3)&nbsp;to the summary compensation table under
    &#147;Management&#151; Executive Compensation&#148;.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">A one time allowance of $250,000 in connection
    with closing down various businesses at TurnWorks, Inc.,
    Mr.&nbsp;Brenneman&#146;s private equity firm.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have also agreed to provide him with a
supplemental executive retirement plan, or SERP. Pursuant to the
SERP, Mr.&nbsp;Brenneman will receive a base retirement benefit
in the form of an annual single-life annuity in an amount equal
to the product of (1)&nbsp;2.5% times (2)&nbsp;the number of his
credited years of service, defined as two times the number of
his actual years of service with us, up to 30 credited years of
service, times (3)&nbsp;his final average compensation. For
these purposes, final average compensation means the greater of
$2,500,000 or the average of the five highest annual cash
compensation amounts, or, if he has been employed less than five
years by us, the average over the full years of employment, paid
to him during the consecutive 10 calendar years immediately
preceding his termination of employment. Amounts payable under
any other retirement arrangement, other than benefits
attributable to elective deferrals or other contributions made
by Mr.&nbsp;Brenneman, will be offset against the SERP benefit.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If Mr.&nbsp;Brenneman&#146;s employment is
terminated by us for reasons other than death, disability or
cause, as described in the agreement, or by him with good
reason, as described below, or, after a change in control of us,
</FONT>

<P align="center"><FONT size="2">153
</FONT>

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<DIV align="left">
<FONT size="2">by us for reasons other than cause or by him for
any reason, then he will be entitled to the following severance
benefits, in addition to any unpaid and owed amounts:
</FONT>
</DIV>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">vesting of all granted options, which will remain
    exercisable until the earlier of the original expiration date of
    such options or 5&nbsp;years after such termination, and
    restricted shares;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">payment under the long-term incentive plan as if
    Mr.&nbsp;Brenneman had remained employed by us through the end
    of each relevant performance period, less any amounts paid to
    him under the long-term incentive plan upon the occurrence of a
    change in control of us;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">a severance payment equal to 300% of the sum of
    (1)&nbsp;Mr.&nbsp;Brenneman&#146;s base salary then in effect
    and (2)&nbsp;the greater of his target annual bonus then in
    effect or his last-paid annual bonus; and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">continued accrual of SERP benefits, welfare
    benefits and office and related services for a period of
    36&nbsp;months following Mr.&nbsp;Brenneman&#146;s termination
    of employment,
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Mr.&nbsp;Brenneman&#146;s employment
agreement, &#147;good reason&#148; means the assignment of
duties materially inconsistent with Mr.&nbsp;Brenneman&#146;s
positions, a material diminution in the nature or scope of his
authority, responsibilities or titles, our requiring without his
consent that he be permanently based outside of The Woodlands,
Texas metropolitan area, a material breach by us of any
provision of his agreement which, if correctable, remains
uncorrected, the failure to elect or reelect him to any of his
positions, including his not becoming our Chairman of the Board
if he so requests and our decision to not renew his employment
agreement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If the closing of the concurrent Class&nbsp;A
common shares offering does not occur on or prior to
December&nbsp;31, 2002, Mr.&nbsp;Brenneman may, during the
subsequent 30-day period, terminate his employment with us. In
this case, Mr.&nbsp;Brenneman will be entitled to receive a cash
lump sum payment of $7,500,000 and continued welfare benefits
and office and related services for a period of 36&nbsp;months
following such termination.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Mr.&nbsp;Brenneman will be entitled to receive
life insurance providing an aggregate death benefit in an amount
at least equal to the severance payment and a payment in an
amount equal to the severance payment in the case of termination
upon disability. In addition, in connection with any payments or
provision of benefits following a change in control,
Mr.&nbsp;Brenneman will be entitled to receive an additional
amount necessary to offset any federal excise tax in respect of
such payments or benefits.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Mr.&nbsp;Brenneman has agreed not to compete with
us, solicit our current or prospective clients or solicit or
employ current or recently terminated employees for
twelve&nbsp;months following his termination of employment with
us. The non-competition covenants will not apply if
Mr.&nbsp;Brenneman declines to accept the severance payment or
otherwise returns the severance payment, or if his employment is
terminated as a result of death, disability or in connection
with a change in control.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Thomas C. O&#146;Neill.
</FONT></I></B><FONT size="2">Mr.&nbsp;O&#146;Neill&#146;s
executive employment agreement has a term of three years
effective as of our separation, and this term will be extended
automatically for additional one-year periods. During
Mr.&nbsp;O&#146;Neill&#146;s employment with us, he will serve
as our Chairman of the Board, subject to Mr. Brenneman&#146;s
request to become our Chairman of the Board. His compensation
will be in accordance with our policies. His base salary will be
at least $900,000 per year and he will be entitled to a target
annual bonus opportunity of at least one-third of his base
salary. In addition, he will be entitled to receive periodic
grants of equity under our equity compensation plans then in
effect.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Mr.&nbsp;O&#146;Neill has agreed not to compete
with us, solicit our current or prospective clients or solicit
or employ our employees or recently terminated employees for a
period ending on the later of three years following the date of
our separation or twelve&nbsp;months following his termination
of employment with us. If Mr.&nbsp;O&#146;Neill were to breach
any of these non-competition covenants prior to the third
anniversary of our separation, his agreement requires that he
pay liquidated damages in an amount equal to his prior-year cash
compensation.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If Mr.&nbsp;O&#146;Neill is terminated by us
without cause, he will be entitled to severance in an amount
equal to 24&nbsp;months of the sum of his monthly base salary
and one-twelfth of his annual target cash incentive
</FONT>

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</FONT>

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<DIV align="left">
<FONT size="2">compensation, each as then in effect. Further, if
he is terminated without cause, all unvested equity grants will
become 100% vested, all equity subject to restrictions will
generally become unrestricted, he will be entitled to continued
health and welfare benefits for a period of 24&nbsp;months and
he will be entitled to outplacement services. Any payment of
severance or provision of such benefits will immediately cease
if he breaches his confidentiality covenant or any of his
non-competition covenants. If Mr.&nbsp;O&#146;Neill terminates
his employment for good reason, as described below, his
termination will be deemed a termination without cause. If
Mr.&nbsp;O&#146;Neill is terminated without cause within
twelve&nbsp;months of a change in control or he terminates his
employment for good reason, then he will no longer be bound by
his non-competition covenants or the liquidated damages
provision.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Mr.&nbsp;O&#146;Neill may terminate his
employment with us at any time, as long as we are given
three&nbsp;months&#146; prior written notice. Upon such a
termination, Mr.&nbsp;O&#146;Neill will be required to forfeit
all unvested equity grants, unless the termination is for good
reason.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Mr.&nbsp;O&#146;Neill&#146;s employment
agreement, &#147;good reason&#148; means (1)&nbsp;at any time, a
material breach by us of our contractual obligations to him
under his agreement or under any material employee benefit plan
in which he participates or (2)&nbsp;within twelve&nbsp;months
of a change in control, a reduction in his compensation, a
material diminution in his position and responsibilities or a
relocation of his office without his consent that would result
in a longer commute, in each case as compared to prior to the
change in control.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with any payments or provision of
benefits following a change in control, Mr.&nbsp;O&#146;Neill
will be entitled to receive an additional amount necessary to
offset any federal excise tax in respect of such payments or
benefits, unless the aggregate value of all such payments or
benefits is less than 115% of his excise tax safe harbor, in
which case such payments and benefits will be reduced to avoid
such excise tax.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Willard W. Brittain; Michael S. Collins;
David V. Dockray. </FONT></I></B><FONT size="2">The executive
employment agreements of Messrs.&nbsp;Brittain, Collins and
Dockray are similar to that of Mr.&nbsp;O&#146;Neill, with the
differences described below. During their employment with us,
they will serve as our Chief Operating Officer, Managing Partner
of the Americas theatre and Managing Partner of the EMEA
theatre, respectively. The base salary of each of
Messrs.&nbsp;Brittain, Collins and Dockray will be at least
$810,000, $675,000 and $675,000, respectively, per year, and
each will be entitled to a target annual bonus opportunity of at
least one-third of his respective base salary.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The executive employment agreements for
Messrs.&nbsp;Brittain, Collins and Dockray will contain similar
non-competition covenants and liquidated damages provision as
those of Mr.&nbsp;O&#146;Neill, as described above. However,
consistent with partner employment agreements entered into in
the United Kingdom, the non-competition covenants under
Mr.&nbsp;Dockray&#146;s employment agreement will apply for a
period of twelve&nbsp;months following his termination of
employment. Mr.&nbsp;Dockray will also be bound by the
non-competition covenants for three years after our separation
pursuant to a non-competition and indemnification agreement
similar to the redemption and non-competition agreement
described under &#147;Arrangements with Our Partners&#151;
Redemption and Non-Competition Agreement.&#148;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The consequences of a termination without cause
or for good reason of Messrs.&nbsp;Brittain, Collins and Dockray
will be the same as for Mr.&nbsp;O&#146;Neill, except that the
period for severance payments and the provision of continued
health and welfare benefits will be 18&nbsp;months. If any of
Messrs.&nbsp;Brittain, Collins and Dockray is terminated without
cause within twelve&nbsp;months of a change in control or he
terminates his employment for good reason, then he will no
longer be bound by his non-competition covenants. For their
purposes, &#147;good reason&#148; has the same meaning as it has
for Mr.&nbsp;O&#146;Neill.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each of Messrs.&nbsp;Brittain and Collins may
terminate his employment with us at any time, as long as we are
given three&nbsp;months&#146; prior written notice. Consistent
with partner employment agreements entered into in the United
Kingdom, Mr.&nbsp;Dockray may terminate his employment with us
at any time, as long we are given twelve&nbsp;months&#146; prior
written notice.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Frank Sowinski.
</FONT></I></B><FONT size="2">The executive employment agreement
of Mr.&nbsp;Sowinski is similar to those of
Messrs.&nbsp;Brittain and Collins, with the differences
described below. The differences reflect the fact that he joined
us in May 2002 and was not a partner of or otherwise affiliated
with the PricewaterhouseCoopers network of firms prior to that
time. During Mr. Sowinski&#146;s employment with us, he will
serve as our Chief
</FONT>

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</FONT>

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<DIV align="left">
<FONT size="2">Financial and Administrative Officer. For the
first year of his employment, Mr.&nbsp;Sowinski&#146;s base
salary will be $810,000 per year, he will receive a guaranteed
cash bonus of $270,000 and a one-time sign-on bonus in cash of
$120,000 payable within 30&nbsp;days after the closing of the
concurrent Class&nbsp;A common shares offering.
Mr.&nbsp;Sowinski&#146;s guarantee of cash compensation will not
continue after the first year of his employment. After the first
year, his base salary will be at least $810,000 per year and he
will entitled to a target annual bonus opportunity of at least
one-third of his base salary.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, Mr.&nbsp;Sowinski will be entitled
to receive the following awards.
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">An equity award immediately after the closing of
    the concurrent Class&nbsp;A common shares offering in the form
    of restricted Class&nbsp;A common shares that will vest pro rata
    over three&nbsp;years commencing on the first anniversary of the
    closing of the concurrent Class&nbsp;A common shares offering
    and will be valued at $1,500,000.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">A one-time grant of an option to purchase our
    Class&nbsp;A common shares to be granted 30&nbsp;days after the
    closing of the concurrent Class&nbsp;A common shares offering,
    that will be valued at $3,600,000, based on the fair market
    value of our Class&nbsp;A common shares at the time of grant,
    that will vest pro rata over three&nbsp;years commencing on the
    first anniversary of the date of grant and that will have an
    exercise price equal to the fair market value of a Class&nbsp;A
    common share at the time of grant.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">An option to purchase our Class&nbsp;A common
    shares with a target value of $720,000 using our option
    valuation methodology in effect at the time of grant, where the
    actual size of the award will be based on
    Mr.&nbsp;Sowinski&#146;s performance, which option will be
    granted after the end of fiscal year 2003, will vest pro rata
    over three&nbsp;years commencing on the first anniversary of the
    date of grant and will have an exercise price equal to the fair
    market value of a Class&nbsp;A common share at the time of grant.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The executive employment agreement for
Mr.&nbsp;Sowinski will contain similar non-competition covenants
and liquidated damages provision as those of Messrs. Brittain
and Collins. However, if Mr.&nbsp;Sowinski were to breach any of
these non-competition covenants at any time within
18&nbsp;months following his termination of employment, his
agreement requires that he pay liquidated damages in an amount
equal to 100% of his first-year guaranteed cash compensation.
The executive employment agreement of Mr.&nbsp;Sowinski provides
that if he is terminated without cause within 12&nbsp;months of
a change in control or he terminates his employment with good
reason, then he will no longer be bound by his non-competition
covenants. For his purposes, &#147;good reason&#148; has the
same meaning as it has for Messrs.&nbsp;O&#146;Neill, Brittain,
Collins and Dockray.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If Mr.&nbsp;Sowinski&#146;s employment is
terminated without cause or for good reason, the consequences
will be the same as for Messrs.&nbsp;Brittain and Collins. If
Mr.&nbsp;Sowinski voluntarily terminates his employment on or
prior to April&nbsp;25, 2003, he will be required to repay his
sign-on bonus and his grant of restricted Class&nbsp;A common
shares will be forfeited.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, if, within six months from
May&nbsp;30, 2002, when Mr.&nbsp;Brenneman joined us,
(1)&nbsp;Mr.&nbsp;Sowinski is terminated without cause,
(2)&nbsp;other than for cause, his responsibilities and duties
are significantly reduced or the terms and conditions of his
employment are significantly and adversely modified or
(3)&nbsp;his office is relocated outside of New York City or
Philadelphia, resulting in a commute that would exceed his
current commute, and, as a consequence, he resigns from his
employment with us, Mr.&nbsp;Sowinski will be entitled to
receive, within 30&nbsp;days of the occurrence of any such event:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">a severance payment of $1,080,000;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">vesting of all granted restricted shares and
    options;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">continued employee benefits for a period of
    twelve&nbsp;months;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">retention of his sign-on bonus; and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">access to office and outplacement services for a
    reasonable period of time as necessary.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Further, if the closing of the concurrent
Class&nbsp;A common shares offering does not occur, or we are
otherwise unable to obtain relief from our independence
obligations, on or prior to December&nbsp;31, 2002,
</FONT>

<P align="center"><FONT size="2">156
</FONT>

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<DIV align="left">
<FONT size="2">Mr.&nbsp;Sowinski may, during the subsequent
30-day period, terminate his employment with us, in which case
he will no longer be bound by his non-competition covenants.
</FONT>
</DIV>

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

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employment
Agreements</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with our separation, each of our
partners has entered into an employment agreement with one of
the businesses that will be transferred to us. These agreements
will become effective on the date of our separation.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensation</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a public company, we will no longer distribute
our earnings directly to our partners. Following the concurrent
offerings, the annual compensation of our partners will consist
of both cash and equity components and a benefits program to be
adopted as of the closing of the concurrent offerings. The cash
component will consist of a fixed element and a variable cash
incentive element. Our policy for compensation of our continuing
partners following the concurrent offerings is that our
continuing partners will take an average reduction in the cash
component of their total target income for the applicable fiscal
year of approximately 20%, generally ranging for individual
partners from 5% to 30% and for executive officers from 30% to
50%. Partners with the highest income generally will have the
greatest percentage reductions. Our board of directors will
approve total target income for each fiscal year. Although our
partners have entered into employment agreements providing that
they will receive compensation in accordance with our
compensation policy, labor laws in some countries in which we
operate may restrict our ability to enforce these reductions. In
light of the reduction in the cash component of our
partners&#146; total target income, we intend to make fiscal
year 2003 grants of restricted share units or other awards that
function in an equivalent manner, which we also refer to as
restricted share units, to our partners under the 2003 Share
Incentive Plan described below in connection with the closing of
this offering. Each of these units will represent the right to
receive one Class&nbsp;A common share and will be fully vested
at the closing of the concurrent offerings. It is expected that
Class&nbsp;A common shares underlying the units will have a
value at the time of grant equal to the approximate aggregate
reduction to our partners&#146; cash compensation for fiscal
year 2003. Actual grants made to individual partners will be
based on that partner&#146;s actual reduction in the cash
component of his or her total target income. The Class&nbsp;A
common shares underlying the units will be deliverable to our
partners according to the schedule set forth below.
</FONT>

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

<TR>
    <TD width="67%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="15%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="14%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

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

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

<TR>
    <TD align="center" nowrap><B><FONT size="1">units delivered</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Years after the closing of</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">to partners</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">this offering</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>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    &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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2">&nbsp;20%
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top" nowrap><FONT size="2">1 year</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    &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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2">&nbsp;20%
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top" nowrap><FONT size="2">&nbsp;2 years</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    &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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2">&nbsp;20%
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top" nowrap><FONT size="2">&nbsp;3 years</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    &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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2">&nbsp;15%
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top" nowrap><FONT size="2">&nbsp;4 years</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    &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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2">&nbsp;25%
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="center" valign="top"><FONT size="2">The later of 5 years<BR>and termination of<BR>employment or service with us.</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">All of the Class&nbsp;A common shares underlying
the restricted share units will be delivered to our partners, or
their estates, who, before the fifth anniversary of the closing
of the concurrent Class&nbsp;A common shares offering, die,
become disabled while employed by us, or while in a service
relationship with us, or terminate employment or service with us
at or after age 55. For any other partner who ceases to be our
employee or provide services during the five year period after
the date of our separation, the Class&nbsp;A common shares
underlying their restricted share units will not be delivered to
them until five years after the date of our separation.
</FONT>

<P align="center"><FONT size="2">157
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For periods after fiscal year 2003, the equity
component will consist of stock options exercisable for
Class&nbsp;A common shares. These options will be subject to
vesting conditions that require continued employment or service
with us and, in some cases, the achievement of specified
performance targets. We expect that after fiscal year 2003, the
value of stock option grants will, in the aggregate, comprise
20% of our partners&#146; total target income. Actual stock
option grants will be based on, among other things, market
conditions, our performance and individual performance. Changes
to our compensation policy must be approved by a majority of our
independent directors.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retirement
Programs</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As of the closing of this offering, our partners,
including our executive officers, will cease participating in
the retirement plans of the PricewaterhouseCoopers firms and
will begin to participate in new retirement programs established
by us and our affiliates. We are in the process of determining
the terms of the retirement programs that we will put in place,
which may vary depending on local legal requirements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our named executive officers in the United
States, with the exception of Mr.&nbsp;Collins, will participate
in our tax-qualified cash balance retirement plan and our
nonqualified cash balance plan. Under the cash balance formula,
each of Messrs.&nbsp;Brenneman, O&#146;Neill, Brittain and
Sowinski will have a bookkeeping account that will be credited
each pay period with 3.5% of eligible pay, which generally
includes base pay, overtime, bonuses and deferrals under our
deferred compensation plan and our other plans, but excluding
sign-on bonuses and equity compensation. In addition, each of
their accounts will be credited with earnings based on a
specified interest rate. For the tax-qualified plan, the
interest rate will be the same rate as for 10-year U.S. Treasury
securities, and for the nonqualified plan, the interest rate
will be the tax-qualified rate plus 1%. The estimated annual
benefits payable upon retirement at normal retirement age for
each of Messrs.&nbsp;Brenneman, O&#146;Neill, Brittain and
Sowinski are set forth below.
</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="13%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="12%"><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">Estimated Annual Benefit</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>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Gregory D. Brenneman
    </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>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Thomas C. O&#146;Neill
    </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 align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Willard W. Brittain
    </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 align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Frank S. Sowinski
    </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>

</TABLE>
</CENTER>

<P align="left">
<B><FONT size="2">Non-Competition; Transfer
Restrictions</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our executive officers, along with our other
partners, have agreed to non-competition and related
arrangements and limitations on their ability to transfer the
Class&nbsp;A common shares, the Class&nbsp;X common shares,
Monday SCA Class&nbsp;I common shares or the exchangeable shares
of one of Monday SCA&#146;s subsidiaries they received in
connection with our separation. These arrangements are described
in &#147;Arrangements with Our Partners.&#148;
</FONT>

<P align="left">
<B><FONT size="2">2003 Share Incentive Plan</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following description sets forth the material
terms of our 2003 Share Incentive Plan, which we refer to as our
share incentive plan, and which has been filed as an exhibit to
the registration statement of which this prospectus forms a part.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>General</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The share incentive plan permits the grant of
nonqualified stock options, restricted shares, restricted share
units, share appreciation rights and other share-based awards to
all employees or service providers of Monday Ltd and our
affiliates, as well as individuals in anticipation of their
becoming employees or service providers. Awards may also, in the
discretion of the compensation committee, be made in assumption
of or in substitution for outstanding awards previously granted
by a company acquired by us or with which we combine. The
maximum number of Class&nbsp;A common shares in the aggregate
that may be subject to awards
</FONT>

<P align="center"><FONT size="2">158
</FONT>

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<DIV align="left">
<FONT size="2">under our share incentive plan, 2003
Non-Management Share Option Plan, which we refer to as our
non-management share option plan, and the 2003 Non-Employee
Directors, Incentive Plan, which we refer to as our
directors&#146; incentive plan, will not exceed &nbsp;million.
Class&nbsp;A common shares underlying substitute awards granted
in connection with an acquisition of a company will not count
against the maximum number of Class&nbsp;A common shares
available for awards under our share incentive plan. In
addition, our Class&nbsp;A common shares purchased on the open
market by a direct or indirect subsidiary may be used to satisfy
awards, and these repurchased shares will not count against the
maximum number of Class&nbsp;A common shares available for
awards under any share incentive plan, non-management share
option plan or non-employee directors&#146; incentive plan.
Unless approved by a majority of our independent directors, the
number of Class&nbsp;A common shares, which are newly issued or
purchased by a direct or indirect subsidiary, granted or subject
to awards granted under the share incentive plan, non-management
share option plan and directors&#146; incentive plan in fiscal
years 2003 and 2004, including Class&nbsp;A common shares
subject to restricted share units granted to our partners and
options granted to our other employees at the time of this
offering, will not be more than &nbsp;&nbsp;million. These
limits, as well as the number of shares subject to outstanding
awards, the exercise price of outstanding awards and other award
terms, are subject to appropriate adjustment on account of share
splits, share dividends, mergers, recapitalizations and other
significant events relating to our Class&nbsp;A common shares.
Our Class&nbsp;A common shares that are covered by awards that
expire, terminate, lapse or are cancelled will again be
available for the grant of awards under the share incentive
plan. Our Class&nbsp;A common shares issued under the share
incentive plan will consist of newly issued Class&nbsp;A common
shares or shares that are purchased by a direct or indirect
subsidiary.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Administration</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The share incentive plan will be administered by
the compensation committee of our board of directors, which may
delegate its duties and powers in whole or in part as it
determines. After the closing of the concurrent offerings, the
compensation committee will be comprised of independent
directors. Our board of directors, however, may, in its sole
discretion, take any action delegated to the committee as it
deems necessary. The compensation committee will have the sole
discretion to determine the participants to whom awards may be
granted under the share incentive plan and the manner in which
these awards will vest. Awards will be granted in numbers and at
times during the term of the share incentive plan as the
compensation committee shall determine. The compensation
committee will be authorized to interpret the share incentive
plan, to establish, amend and rescind any rules and regulations
relating to the share incentive plan and to make any other
determinations that it deems necessary or desirable for the
administration of the share incentive plan. The compensation
committee will be able to correct any defect, supply any
omission or reconcile any inconsistency in the share incentive
plan in the manner and to the extent the compensation committee
deems necessary or desirable.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Options</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The compensation committee will determine the
exercise price for each option, which, except in the case of a
substitute award made in connection with an acquisition of a
company, must be no less than the fair market value of our
Class&nbsp;A common shares on the date the option is granted. In
general, a participant may exercise an option by written notice
and payment of the exercise price in one of the following ways:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">in cash,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">by the transfer of a number of our Class&nbsp;A
    common shares already owned by the participant for at least six
    months, or another period as established in accordance with
    United States generally accepted accounting principles, with a
    fair market value equal to the exercise price,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">in a combination of cash and the transfer of a
    number of our Class A common shares already owned by the
    participant for at least six months, or another period as
    established in accordance with United States generally accepted
    accounting principles, with a fair market value equal to the
    exercise price or
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">159
</FONT>

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<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">through the delivery of irrevocable instructions
    to a broker to sell our Class&nbsp;A common shares obtained upon
    the exercise of the options and deliver promptly to us an amount
    out of the proceeds of the sale equal to the exercise price for
    the Class&nbsp;A common shares being purchased.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Restricted
Share Units, Restricted Shares and Other Share-Based
Awards</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The compensation committee may grant awards of
restricted share units, restricted shares and other share-based
awards that are valued in whole or in part by reference to, or
are otherwise based on the fair market value of, our
Class&nbsp;A common shares. The restricted share units,
restricted shares and other share-based awards will be subject
to the terms and conditions established by the compensation
committee.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Share
Appreciation Rights</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The compensation committee may grant share
appreciation rights independent of, or in connection with, an
option. The exercise price per share of a share appreciation
right will be determined by the compensation committee.
Generally, each share appreciation right will entitle a
participant upon exercise to an amount equal to the excess of
the fair market value on the exercise date of one Class&nbsp;A
common share over the product of the exercise price per share
multiplied by the number of Class&nbsp;A common shares covered
by the share appreciation right. The exercise of a share
appreciation right granted in connection with an option will
extinguish the related option. Payment will be made in
Class&nbsp;A common shares, valued at fair market value, in cash
or partly in Class&nbsp;A common shares and partly in cash, all
as determined by the compensation committee.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Transferability</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Unless otherwise determined by the compensation
committee, awards granted under the share incentive plan are not
transferable other than by will or by the laws of descent and
distribution.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Change
in Control</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the event of a change in control, unless
specifically provided otherwise in an award document,
outstanding awards will become fully vested and exercisable and
any restrictions applicable to awards will automatically lapse.
The compensation committee may provide for the cancellation of
an award and payment of cash or other consideration to the
holder of the award in consideration for such cancellation.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Amendment
and Termination</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our board of directors will be able to amend,
alter or discontinue the share incentive plan at any time. Our
board of directors may not make, however, any amendment,
alteration or discontinuation that would impair in a material
manner any of the rights of a participant under any awards
previously granted without the participant&#146;s consent. In
addition, our board of directors may not increase the number of
our Class&nbsp;A common shares reserved for purposes of the
share incentive plan without the approval of our shareholders
and, until June&nbsp;30, 2005, without the approval of a
majority of our independent directors.
</FONT>

<P align="left">
<B><FONT size="2">2003 Non-Management Share-Based Plan</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following description sets forth the material
terms of our non-management share plan, which has been filed as
an exhibit to the registration statement of which this
prospectus forms a part.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>General</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The maximum number of Class&nbsp;A common shares
in the aggregate that may be subject to awards under our
non-management share plan, share incentive plan and
directors&#146; incentive plan will not
exceed &nbsp;&nbsp;million. The number of Class&nbsp;A common
shares subject to outstanding awards, the exercise price of
outstanding awards and other award terms, are subject to
appropriate adjustment on account of share splits, share
dividends, mergers, recapitalizations and other significant
events relating to our Class&nbsp;A common shares.
</FONT>

<P align="center"><FONT size="2">160
</FONT>
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<DIV align="left">
<FONT size="2">Our Class&nbsp;A common shares that are covered
by awards that expire, terminate, lapse or are cancelled will
again be available for the grant of awards under our
non-management share plan. In addition, our Class&nbsp;A common
shares purchased on the open market by a direct or indirect
subsidiary may be used to satisfy awards, and these repurchased
shares will not count against the maximum number of Class&nbsp;A
common shares available for awards under any share incentive
plan, non-management share plan or non-employee directors&#146;
incentive plan. Our Class&nbsp;A common shares issued under the
non-management share plan will consist of newly issued
Class&nbsp;A common shares or shares that are purchased by a
direct or indirect subsidiary.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Administration</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The non-management share plan will be
administered by the compensation committee of our board of
directors, which may delegate its duties and powers in whole or
in part as it determines. Our board of directors, however, may,
in its sole discretion, take any action delegated to the
committee as it deems necessary. The compensation committee will
be authorized to interpret the non-management share plan, to
establish, amend and rescind any rules and regulations relating
to the non-management share plan and to make any other
determinations that it deems necessary or desirable for the
administration of the non-management share plan.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Eligibility</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We currently expect that each of our employees
and service providers and employees and service providers of
some of our affiliates who do not have the title of a
&#147;partner&#148; or a title of comparable dignity will be
eligible to participate in the non-management share plan,
subject to applicable laws in each jurisdiction.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Awards</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will grant each participant an option to
purchase our Class&nbsp;A common shares that have an aggregate
fair market value, as determined on the date of grant of such
option, equal to approximately 10% of the average base salary of
all participants in his or her level. No participant, however,
will be granted an option to purchase our Class&nbsp;A common
shares that have an aggregate fair market value, as determined
on the date of grant, in excess of $25,000. The exercise price
per Class&nbsp;A common share under an option will be no less
than 85% of the fair market value of a Class&nbsp;A common share
on the date the option is granted. The term of each option will
be no greater than 27&nbsp;months from the date of grant and,
subject to the compensation committee&#146;s discretion and
adjustments required by applicable law, each option generally
will vest in three equal installments on the ninth, eighteenth
and twenty-sixth month anniversaries of the date of grant. An
option may be exercised for all or any part of the Class A
common shares for which it is then exercisable for a period of
30 days from the date it vests. Any vested options that have not
been exercised during this 30-day period will be automatically
forfeited unless there has been a change in control.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Change
in Control</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the event of a change in control, unless
specifically provided otherwise in an award document,
outstanding options will become fully vested and exercisable and
any restrictions applicable to options will automatically lapse.
The compensation committee may provide for the cancellation of
an option and payment of cash or other consideration to the
holder of the option in consideration for such cancellation.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Amendment
and Termination</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our board of directors may amend, alter or
discontinue the non-management share plan. Our board of
directors may not, however, amend, alter or discontinue the
non-management share plan in a manner that would increase the
number of Class&nbsp;A common shares authorized for the
non-management share option plan without the approval of our
shareholders and, until June&nbsp;30, 2005, without the approval
of a majority of our independent directors. In addition, without
a participant&#146;s consent our board of directors may
</FONT>

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</FONT>
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<DIV align="left">
<FONT size="2">not amend, alter or discontinue the
non-management share plan in a manner that would materially
impair the participant&#146;s rights or obligations under any
option granted under the plan.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The non-management share plan will terminate upon
the earlier of the termination of the non-management share plan
by our board of directors or the third anniversary of the
effective date of the plan.
</FONT>

<P align="left">
<B><FONT size="2">2003 Non-Employee Directors&#146; Incentive
Plan</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We intend to adopt an incentive plan for our
outside directors.
</FONT>

<P align="left">
<B><FONT size="2">Further Share Plans for Employees or Service
Providers outside the United States</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our board of directors or compensation committee
also may establish further employee share plans for employees or
service providers outside of the United States, which will be
based upon our share incentive plan and non-management share
plan but modified to take account of tax, legal and exchange
control requirements outside the United States. All allocations
will count against the maximum number of Class&nbsp;A common
shares that may be subject to awards granted under our share
incentive plan and non-management share plan.
</FONT>

<P align="center"><FONT size="2">162
</FONT>
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<!-- link1 "ARRANGEMENTS WITH THE PRICEWATERHOUSECOOPERS NETWORK OF FIRMS" -->
<DIV align="left"><A NAME="015"></A></DIV>

<P align="center">
<B><FONT size="2">ARRANGEMENTS WITH THE PRICEWATERHOUSECOOPERS
NETWORK OF FIRMS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with our separation from the
PricewaterhouseCoopers network of firms, substantially all of
these firms with management consulting and technology services
businesses will transfer to us, directly or indirectly, the
assets and liabilities comprising these businesses in separate
transactions. For more information regarding the assets and
liabilities being transferred to us in these transactions, see
our unaudited pro forma combined financial statements and notes
to these statements. In addition, the businesses being
transferred to us do not include some PricewaterhouseCoopers
consulting or advisory services businesses that historically
have not been operated together with the businesses being
transferred to us. Instead, they have been more integrated or
associated with other businesses within the
PricewaterhouseCoopers network of firms. These other consulting
or advisory services businesses include:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">global risk management services, which include
    small-scale enterprise resource planning software
    implementations, security consulting, project management and
    data management services,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">treasury and credit risk management services for
    financial services companies, which include some packaged
    software implementation services, and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">financial advisory services for companies
    involved in reorganizations and bankruptcies, which include
    business process consulting services.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">The assets and liabilities and results of
operations of these other businesses are not included in our
financial statements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will issue our equity or equity of our
subsidiaries to various firms in the PricewaterhouseCoopers
network, and partners or shareholders of some other firms in the
network, in connection with our separation in a variety of ways.
Firms in the PricewaterhouseCoopers network, or their partners
or shareholders, transferring their management consulting and
technology services businesses to us will exchange their
interests in these businesses for our equity or equity of our
subsidiaries. Some firms may receive cash in exchange for their
interests. Other firms of the PricewaterhouseCoopers network
will fall into one of the following categories:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Firms with no management consulting and
    technology services businesses.</FONT></I></B><FONT size="2"> If
    these firms enter into noncompetition agreements with us, we
    will give them a cash payment.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Firms not invited to transfer their
    management consulting and technology services businesses to
    us.</FONT></I></B><FONT size="2"> Except as described below, if
    these firms agree to enter into noncompetition agreements with
    us and wind down their management consulting and technology
    services businesses that would not be allowed to compete with us
    pursuant to the terms of the noncompetition agreements, we will
    give them a cash payment. Otherwise, they will lose the right to
    use the PricewaterhouseCoopers name in connection with their
    management consulting and technology services businesses, and we
    will be free to compete with them. In the case of firms with
    business process management services businesses that are not
    being transferred to us, these businesses will remain with the
    PricewaterhouseCoopers firms and continue to be operated.
    Excluding business process management services businesses, the
    management consulting and technology services businesses of
    firms not invited to transfer these businesses represented
    approximately 2% of our revenues for fiscal year 2001. The
    business process management services businesses not being
    transferred to us represented approximately 3% of our revenues
    for fiscal year 2001.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Firms electing to transfer their management
    consulting and technology services businesses to us but which
    are unable to satisfy participation conditions at the time of
    the concurrent Class&nbsp;A common shares
    offering.</FONT></I></B><FONT size="2"> The board of the global
    coordinating entity for the PricewaterhouseCoopers network of
    firms, in its good faith discretion, has the right under the
    rollup agreements to allow these firms to complete the transfer
    to us within a period of time, not to exceed one year, following
    the closing of the concurrent Class&nbsp;A common shares
    offering. If this board grants such an extension, we are
    required to close the transfer during the extension period
    pursuant to the terms of the rollup agreement. If this board
    does not grant such an extension or if a PricewaterhouseCoopers
    firm ultimately fails to consummate a transfer within the
    extension period, the firm will be asked to enter into a
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">163
</FONT>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD></TD>
    <TD align="left">
    <FONT size="2">noncompetition agreement with us, to wind down
    its management consulting and technology services business that
    would not be allowed to compete with us pursuant to the terms of
    the noncompetition agreement and to execute a shareholders
    agreement if applicable. If the firm enters into these
    arrangements with us, we will give them a cash payment or
    Class&nbsp;A common shares, at our discretion, which shares
    would be in an amount less than the firm would have received if
    it had transferred its management consulting and technology
    services business to us. If the firm fails to enter into these
    arrangements with us, the firm may no longer use the
    PricewaterhouseCoopers name in connection with its management
    consulting and technology services business, and we will be free
    to compete with the firm. We currently expect that the
    PricewaterhouseCoopers firm in China will transfer its
    management consulting and technology services business to us
    after the closing of this offering due to regulatory reasons.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The amount of consideration to be paid to the
PricewaterhouseCoopers firms that enter into a noncompetition
agreement with us will depend on a variety of factors, including
the size of the particular PricewaterhouseCoopers firms. The
total compensation paid to these firms is not expected to exceed
$&nbsp;&nbsp;million.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with our separation, we or one of
our subsidiaries have entered or will enter into the following
agreements with firms in PricewaterhouseCoopers network, which
are described below in more detail:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Rollup Agreements,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Business Process Management Services Transfer
    Agreement,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Transition Services Agreements,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Redemption and Non-Competition Agreements,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Shareholders Agreement,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Assignment and Assumption Agreements,
    </FONT></TD>
</TR>

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

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

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Master License Agreements.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, the firms in the
PricewaterhouseCoopers network will enter into country-specific
agreements necessary to implement the local structure of the
separation transaction. A form of each of the agreements
described below has been filed as an exhibit to the registration
statement of which this prospectus forms a part. In the
aggregate, we expect that, following our separation, we will
continue to owe the PricewaterhouseCoopers firms between
$500&nbsp;million and $600&nbsp;million relating to accounts
payable, accrued payroll and other accrued liabilities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For purposes of the following summaries of these
agreements, the reference to &#147;date of our separation&#148;
means the date on which a PricewaterhouseCoopers firm transfers
its management consulting and technology services business to
us, some of which may occur after the closing of the concurrent
offerings.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each firm in the PricewaterhouseCoopers network
that will participate in our separation has entered into a
rollup agreement with us or Monday SCA pursuant to which,
shortly before the closing of the concurrent offerings, the firm
will place its management consulting and technology services
business in escrow. In a number of countries, we have entered
into rollup agreements directly with the partners or
shareholders of some of the PricewaterhouseCoopers firms because
these partners or shareholders directly own either the assets
of, or equity in, a management consulting and technology
services business that is being transferred to us. The countries
include Australia, Belgium, France, Iceland, Italy, Pakistan,
Portugal, Sweden and Switzerland. Immediately prior to the
closing of the concurrent offerings, the management consulting
and technology services businesses being transferred to us will
be released to us from escrow. As a result of our separation, our
</FONT>

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</FONT>
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<DIV align="left">
<FONT size="2">partners will withdraw from their respective
PricewaterhouseCoopers firms and, along with the other employees
of the management consulting and technology services businesses,
will become our employees or employees of one of our
subsidiaries.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The respective rollup agreements have
substantially similar terms and provide for, among other things,
the transfer from these firms to us, directly or indirectly, of
the assets and liabilities which together will comprise our
business. Changes necessary to reflect the local structure of
the separation transaction in a specific country and other local
requirements or agreements that are unique to different
jurisdictions are provided in a local structure term sheet for
each firm, which is attached to that firm&#146;s rollup
agreement as an exhibit.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Separation
from the PricewaterhouseCoopers Network</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each PricewaterhouseCoopers firm participating in
our separation will transfer the assets and liabilities
comprising its management consulting and technology services
business, or exchange the equity interests in entities holding
these assets, for our equity or equity of one of our
subsidiaries. The aggregate number of Class&nbsp;A common shares
we will issue to these firms, or in some cases their partners
and shareholders,
is &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million, which, assuming
an estimated initial public offering price of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, will have an aggregate value of
approximately $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;billion. In
connection with their withdrawal from their respective
PricewaterhouseCoopers firms, our partners will receive
approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million of these
Class&nbsp;A common shares, which will have an estimated
aggregate value of approximately
$&nbsp;&nbsp;&nbsp;&nbsp;million.
Approximately &nbsp;&nbsp;&nbsp;&nbsp;million shares issued to
one of the PricewaterhouseCoopers firms will be purchased by
Monday Ltd or one of its subsidiaries immediately after the
closing of the concurrent offerings, resulting in
approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million shares
outstanding. For purposes of calculating the number of
Class&nbsp;A common shares and value of these shares in the
prior sentences, we have treated all shares issued by our
subsidiaries in connection with our separation as if they had
been redeemed or exchanged on a one-for-one basis for our
Class&nbsp;A common shares. Some firms may receive cash in
exchange for their interests.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each rollup agreement contains customary
representations and warranties made by us and by the
PricewaterhouseCoopers firm participating in the separation with
respect to the businesses being transferred to us. All
representations and warranties will terminate on the closing of
our separation and no party to the rollup agreement will have
liability due to any breach of representations and warranties.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each rollup agreement also contains customary
conditions to the consummation of our separation. In addition to
the customary conditions, the rollup agreements also include a
closing condition requiring that the per share price of our
Class&nbsp;A common shares as set forth in the underwriting
agreement for the concurrent Class&nbsp;A common shares offering
is approved by at least 75% of the global board of
PricewaterhouseCoopers International Limited, which is the
global coordinating body for the PricewaterhouseCoopers network,
and a closing condition requiring that PricewaterhouseCoopers
LLP, the United States firm, receive a no-action letter from the
Securities and Exchange Commission confirming that our
activities will not be attributed to the PricewaterhouseCoopers
network for purposes of the SEC independence rules.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each rollup agreement contains customary
covenants made for our benefit by the PricewaterhouseCoopers
firm and customary covenants made by us for the benefit of the
PricewaterhouseCoopers firm. In addition to customary covenants
relating to our actions after the concurrent offerings, the
rollup agreements contain the following covenants:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">a covenant requiring compliance with the terms of
    the SEC no-action letter and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">a covenant governing our and our affiliates&#146;
    rights to use the PwC Consulting name, and a limited right to
    use the PricewaterhouseCoopers name for up to four years.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">165
</FONT>
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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each PricewaterhouseCoopers firm participating in
our separation also has agreed to a covenant stating that if the
closing under its rollup agreement is not consummated, except
through no fault of the PricewaterhouseCoopers firm or as a
result of failure to obtain partner approval:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the firm will discontinue the use of the
    PricewaterhouseCoopers name in connection with its management
    consulting and technology services business within six months and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">we will be permitted to compete with the firm and
    use the PricewaterhouseCoopers name in connection with our
    business.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Allocation
of Shares to the PricewaterhouseCoopers Firms</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The allocation of Class&nbsp;A common shares and
Monday SCA Class&nbsp;I common shares among the
PricewaterhouseCoopers firms was based upon an agreed
methodology taking into account a variety of factors, including
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">
    <FONT size="2">expenses incurred by the various firms for the
    general benefit of the PricewaterhouseCoopers network of firms,
    such as transaction costs relating to our separation and global
    or regional redundancy costs,
    </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 net book value of the management consulting
    and technology services businesses that are being contributed to
    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">the relative value of the management consulting
    and technology services businesses being contributed to us,
    which takes into account factors such as the revenues, profits
    and growth trends of each business.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Noncompetition
Arrangements</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each of the rollup agreements contains
noncompetition arrangements among us, each participating
PricewaterhouseCoopers firm and PricewaterhouseCoopers
International Limited. For a period of five years after our
separation, we and our affiliates will not engage, directly or
indirectly, or make an equity investment in any person or enter
into a strategic alliance with any person for the purpose of
engaging, in the provision of tax, audit and other services, as
defined below. In turn, the participating PricewaterhouseCoopers
firms, PricewaterhouseCoopers International Limited and other
parties bound by the non-compete arrangements will not engage,
directly or indirectly, or make an equity investment in any
person or enter into a strategic alliance with any person for
the purpose of engaging, in the provision of consulting
services, as defined below. The term of the noncompetition
arrangements may be of shorter duration in some countries due to
legal restrictions on enforceability.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">However, each rollup agreement permits each
participating PricewaterhouseCoopers firm,
PricewaterhouseCoopers International Limited and other parties
bound by the non-compete arrangements to acquire or merge with
another party that provides some consulting services accounting
for less than 50% of its total revenues as long as the
consulting services are divested no later than twelve months
after the acquisition or merger. Conversely, we may acquire or
merge with another party that provides tax, audit and other
services accounting for less than 50% of its total revenues so
long as we divest these services no later than twelve months
after the acquisition or merger. The rollup agreements also do
not prohibit the investment or the retention of an investment by
any of the restricted parties in no more than 5% of the issued
and outstanding ownership interests of a business engaged in
consulting services or tax, audit and other services, as the
case may be.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, for a period of three years after
our separation, we, on the one hand, and each participating
PricewaterhouseCoopers firm, PricewaterhouseCoopers
International Limited and other parties bound by the non-compete
arrangements, on the other hand, have agreed not to solicit,
recruit, hire or encourage to leave their employment, each
other&#146;s partners or client service staff, unless such
partner or employee has not been so employed for at least
12&nbsp;months. For this purpose, general solicitations or
advertisements will not be deemed to be solicitations. The term
of the nonsolicitation restrictions may be of shorter duration
in some countries due to legal restrictions on enforceability.
</FONT>

<P align="center"><FONT size="2">166
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The rollup agreements generally define consulting
services to include the following:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">corporate-wide strategic planning services,
    except human resources services, tax and legal services,
    transaction services, corporate finance services and business
    recovery services,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">large scale process services that transform and
    change multiple departments or organizations within a business
    and involve multiple applications, modules or subcomponents,
    except human resources services,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">large scale information technology implementation
    and integration services that involve multiple departments or
    organizations within a business and involve multiple
    applications, modules or subcomponents, except risk management
    systems and treasury systems,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">managed application solutions, comprising
    business process outsourcing, application outsourcing services,
    application services provision, information technology
    outsourcing and hosting services, except for internal audit
    services, security and compliance services, treasury, corporate
    finance, business recovery, dispute analysis and investigation
    and transactions services, tax and legal services,
    Internet-based information portal services, bookkeeping and
    company administrative services and pension benefits and human
    resources services, and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">within a particular country or region, other
    services provided by us at a substantial level, which level
    varies by country or region, so long as the
    PricewaterhouseCoopers firm in that country or region does not
    provide these services at a substantial level in that country or
    region or the PricewaterhouseCoopers firms, taken together, do
    not provide these services at a substantial level on a worldwide
    basis, in each case immediately after giving effect to our
    separation.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Consulting services generally do not include,
however, any services to a particular client if the
client&#146;s aggregated consolidated revenues, including
revenues of other companies under common control with the
client, in the country where such services are to be performed
are less than an amount that varies depending on the country. In
the United States, the client&#146;s revenues must be less than
$400&nbsp;million. In the United Kingdom and Germany, the
revenues must be less than $1&nbsp;billion. In addition,
consulting services may not include any services to a particular
client if the client&#146;s aggregate annual worldwide
consolidated revenues, including revenues of other companies
under common control with the client, are $5&nbsp;billion or
more. In some countries, the noncompetition arrangements do not
restrict the PricewaterhouseCoopers firms from performing
consulting services for a number of specified companies and
organizations or types of companies or organizations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The rollup agreements generally define tax, audit
and other services to include the following:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">attestation, including accounting, regulatory and
    audit services,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">tax services, including consulting and compliance
    services, and legal services,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">corporate finance, business recovery, dispute
    analysis and investigation services and transaction services,
    except corporate-wide strategic planning, information technology
    and outsourcing opportunities and merger integration and
    restructuring services and privatization services for
    international funding organizations or institutions,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">assurance services, including risk management and
    systems assurance services, which do not include information
    technology, data warehousing, customer management, systems
    integration, world wide web services or the conduct or
    publication of surveys,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">pension and benefit actuarial services and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">within a particular country or region, other
    services provided by the PricewaterhouseCoopers firm at a
    substantial level, which level varies by country or region, so
    long as we do not provide these services at a substantial level
    either in the particular country or region or on a worldwide
    basis, in each case as of our separation.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">167
</FONT>

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<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Indemnification</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">By the PricewaterhouseCoopers firms.
</FONT></I></B><FONT size="2">Each PricewaterhouseCoopers firm
participating in our separation will indemnify
PricewaterhouseCoopers International Limited, us and our
respective affiliates and each of our respective officers,
directors, employees, consulting partners, agents and
representatives against claims and losses arising from:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">any breach of any obligation of the
    PricewaterhouseCoopers firm or any of its subsidiaries contained
    in the transaction agreements,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">any of the excluded liabilities not assumed by
    us, which generally includes liabilities that do not relate to
    the management consulting and technology services businesses
    transferred to us, or
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">any of the excluded assets not transferred to us,
    which generally includes liabilities that do not relate to the
    management consulting and technology services businesses
    transferred to us.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The indemnification provisions do not cover
losses incurred due to breaches of the representations and
warranties made by the PricewaterhouseCoopers firm in the rollup
agreements or losses incurred by any of our partners with
respect to excluded taxes.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">By us. </FONT></I></B><FONT size="2">From
and after the closing of the concurrent Class&nbsp;A common
shares offering, we will indemnify each PricewaterhouseCoopers
firm participating in our separation, its affiliates,
PricewaterhouseCoopers International Limited and each of their
respective officers, directors, employees, partners, agents and
representatives against claims and losses arising from:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">any breach of any of our obligations or any of
    our affiliates&#146; obligations contained in the transaction
    agreements,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">any of the liabilities assumed by us, which
    generally include pre-closing liabilities of the management
    consulting and technology services businesses transferred to us,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">any of the acquired assets transferred to us or
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the operation of the management consulting and
    technology services businesses after our separation.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We also will indemnify PricewaterhouseCoopers
International Limited, each PricewaterhouseCoopers firm
participating in our separation, their respective officers,
directors, employees, partners and agents and each person who
controls, within Section&nbsp;15 of the Securities Act of 1933
or Section&nbsp;20 of the Securities and Exchange Act of 1934,
against claims and losses arising from material misstatements or
omissions in the registration statement of which this prospectus
forms a part.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The indemnification provisions do not cover
losses incurred due to breaches of the representations and
warranties made by us and our subsidiaries in the rollup
agreements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The indemnification obligations by each
PricewaterhouseCoopers firm participating in our separation, on
the one hand, and by us, on the other hand, will not terminate
except through the operation of applicable statutes of
limitation and only apply to losses in excess of available
insurance.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The rollup agreements also specify procedures
with respect to claims subject to indemnification and related
matters.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Termination</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The rollup agreements may be terminated under
some circumstances. Some provisions of each rollup agreement,
including those relating to a failure to consummate the closing,
confidentiality, publicity and expenses, survive the termination
of the rollup agreements.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Net
Book Value Adjustment</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each PricewaterhouseCoopers firm participating in
our separation has agreed that its management consulting and
technology services business transferred to us by it shall have
a predetermined net book value
</FONT>

<P align="center"><FONT size="2">168
</FONT>

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<DIV align="left">
<FONT size="2">at closing. The amount varies from firm to firm.
The aggregate predetermined net book value as defined in the
rollup agreements is approximately
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Within 90&nbsp;days after our separation, each
PricewaterhouseCoopers firm participating in our separation will
prepare and deliver to us a closing statement stating the net
book value of the management consulting and technology services
business transferred to us by the firm.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The applicable net book value will become final
and binding on the parties on the 90th&nbsp;day following the
delivery of the closing statement, unless we deliver to the
PricewaterhouseCoopers firm written notice of disagreement
before this date. In this case, we and the firm will try to
resolve our differences during the next 20 business days. If we
cannot agree on the final net book value, the dispute will be
submitted to a determination by an independent accounting firm
and this determination of the net book value will become final.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Within four business days after the net book
values become final and binding on the parties, either we will
pay the firm the amount by which the net book value of the
assets contributed to us by that firm exceeds the assumed net
book value or the firm will pay us the amount by which the net
book value of these assets is less than the assumed net book
value. Any undisputed amounts will be paid once final.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Dispute
Resolution</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Disputes among the parties to each rollup
agreement will be submitted to arbitration, subject to
provisions described in the local structure term sheet attached
as an exhibit to each rollup agreement.
</FONT>

<P align="left">
<B><FONT size="2">Business Process Management Services Transfer
Agreement</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with our separation, some of the
PricewaterhouseCoopers firms will transfer a portion of the
PricewaterhouseCoopers business process management services
business to Monday SCA. The business to be transferred primarily
involves a group of related contracts and related assets and
liabilities. The PricewaterhouseCoopers firms that own this
business will enter into a transfer agreement with Monday SCA
pursuant to which these firms will transfer this business to
Monday SCA. Pursuant to the transfer agreement, some of the
PricewaterhouseCoopers partners involved with this business will
withdraw from their PricewaterhouseCoopers firms and become our
employees or employees of one of our subsidiaries and will
receive our Class&nbsp;A common shares, Monday SCA shares or
exchangeable shares of one of Monday SCA&#146;s subsidiaries in
exchange for their partnership interests.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The transfer agreement will contain
representations and warranties substantially similar to those
contained in the rollup agreements. As in the rollup agreements,
all representations and warranties will terminate on the closing
of our separation, and no parties to the transfer agreement will
have liability due to any breach of the representations and
warranties. In addition to containing conditions that are
substantially similar to the conditions in the rollup
agreements, the transfer agreement will contain a condition that
all PricewaterhouseCoopers firms party to the transfer agreement
close the transfer of their business process management services
business, unless PricewaterhouseCoopers International Limited
determines that failure to do so by a party is not material to
this business as a whole.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The PricewaterhouseCoopers firms party to the
agreement will indemnify us for liabilities relating to this
business. The noncompetition provisions in the rollup agreements
that relate to business process management services will govern
the business transferred to us and the business process
management services assets and liabilities that will remain with
the PricewaterhouseCoopers network of firms. The net book value
adjustment provisions of the transfer agreement are
substantially the same as in the rollup agreements. The closing
of the transfer of this business will occur simultaneously with
the closing of our separation.
</FONT>

<P align="left">
<B><FONT size="2">Transition Services Agreements</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each firm in the PricewaterhouseCoopers network
that participates in our separation will enter into a transition
services agreement with us or with one of our operating units.
These transition services agreements
</FONT>

<P align="center"><FONT size="2">169
</FONT>

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<DIV align="left">
<FONT size="2">are necessary to assist us to function as a
stand-alone entity until we develop our own systems and support
functions.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Services
the PricewaterhouseCoopers Firms are Providing to
Us</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the transition services agreements, the
participating PricewaterhouseCoopers firms will provide us the
same or similar services we received prior to our separation for
a period of up to three years from the closing of the concurrent
Class&nbsp;A common shares offering. Our intention is to
terminate the services provided to us by the
PricewaterhouseCoopers firms as soon as is reasonably
practicable. As required by the SEC, these services will be
provided at cost. These costs will include direct costs of the
services, the overhead directly attributable to providing the
services and transaction taxes. The services provided to us by
the PricewaterhouseCoopers firms under each transition services
agreement may include a combination of:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">infrastructure, including facilities management,
    office services, travel, procurement and physical security,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">technology solutions, including
    telecommunications, network services, electronic security,
    application hosting, personal computer deployment and management,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">knowledge management, including document
    retention,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">human resources, including PeopleSoft
    Informational Systems Support,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">training, including learning information
    repositories and course evaluations,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">finance, including transaction processing and
    time and expense processing,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">public company financial and accounting
    information services, including supply of information necessary
    for us to prepare our own public company reports and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">other services, including support services, help
    desk services, enterprise application development, project
    services, event support and risk management services.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Growth
and Transition</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The PricewaterhouseCoopers firms will provide us
with an increased volume of services as we undergo natural
growth in our existing markets through the offer of our existing
products. The PricewaterhouseCoopers firms also may provide us
with additional services to meet our growth needs arising on
account of changes in our structure, changes in the services
offered to our clients or our services delivery processes, but
they are not obligated to do so. In addition to paying for the
operating costs for the volume of services we will receive as of
the date of the closing of the concurrent Class&nbsp;A common
shares offering, we will also pay for operating, investment and
termination costs related to any increased volume or additional
services provided to us after our separation.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Performance
Levels</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the transition services agreements, the
PricewaterhouseCoopers firms will perform the services provided
to us at the closing of the concurrent Class&nbsp;A common
shares offering with a level of accuracy, quality, completeness,
timeliness, priority and responsiveness that meets the level of
performance they deliver to their own operations. Any additional
services provided to us will be provided at a performance level
mutually agreed upon by the PricewaterhouseCoopers firms and us.
With regards to financial and accounting information services,
we have specified that they are to be provided with a level of
accuracy and timeliness that allow us to comply with our public
disclosure obligations.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Limitation
of Liability</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Generally, under the transition services
agreements, the aggregate liability arising from disputes or
claims between us and of each of the PricewaterhouseCoopers
firms will be limited to the aggregate fees paid for services
during the six month period immediately preceding the event
giving rise to the claim, or in the case of
</FONT>

<P align="center"><FONT size="2">170
</FONT>

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<DIV align="left">
<FONT size="2">an event giving rise to liability occurring
during the first six months of the transition services
agreement, the total fees budgeted to be payable during this
initial six month period.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Confidentiality</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We and the PricewaterhouseCoopers firms will
agree to hold in confidence and not disclose to any third party
any confidential information received in connection with
providing or receiving services under the transition services
agreements. We and the PricewaterhouseCoopers firms will also
agree to use all confidential information received by either of
us solely in connection with the provision or receipt of
services under the transition services agreements.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Indemnification</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We and the PricewaterhouseCoopers firms will
agree to indemnify, defend and hold harmless each other and any
of our directors, officers, employees, partners, principals,
successors and permitted assigns from uninsured losses arising
from, by reason of or resulting from claims by third parties
arising from, relating to or in connection with a breach of the
provisions of the transition services agreements or negligence
causing death, personal injury or damage to real or tangible
personal property or the gross negligence, fraud or reckless or
willful misconduct by the indemnifying party, except to the
extent caused by the breach, negligence or other fault of the
indemnified party or its contract personnel or any other agents
who are managed by the indemnifying party. The aggregate
liability under this indemnification of each of the
PricewaterhouseCoopers firms and us will be limited to the
aggregate fees paid for services during the twelve month period
immediately preceding the event giving rise to the claim under
each transition services agreement that it is a party to, or in
the case of an event giving rise to the claim occurring during
the first twelve months of the transition services agreement,
the total fees budgeted to be payable during this initial twelve
month period.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Assignment</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Assignment of our rights and obligations under
the transition services agreements, other than to a subsidiary
existing and receiving services at the closing of the concurrent
Class&nbsp;A common shares offering, requires the applicable
PricewaterhouseCoopers firm&#146;s prior consent. In the event
we experience a change of control, subject to SEC approval, each
PricewaterhouseCoopers firm will thereafter be able to charge a
market price for its services under the transition services
agreements and the remaining term of the transition services
agreements may be shortened to one year from notification of the
change of control. The PricewaterhouseCoopers firms may assign
the transition services agreements to any entity without our
prior consent, but the assignment will not relieve the
PricewaterhouseCoopers firms of their obligations, and we will
not be required to incur any increased costs or taxes as a
result of any such assignment.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Termination</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The transition services agreements will expire on
the third anniversary of the closing of the concurrent
Class&nbsp;A common shares offering unless otherwise terminated
in accordance with the transition services agreements. We may
terminate any service at any time, if we also terminate any
non-separable services. For the volume of services provided to
us, as of the closing of the concurrent Class&nbsp;A common
shares offering, we will not be obligated to pay any costs
related to termination if we deliver notice of such termination
to the PricewaterhouseCoopers firm providing the service
180&nbsp;days prior to such termination. Upon termination, we
will have to pay investment and other termination costs relating
only to an increase in the volume of those services provided to
us as of the closing of the concurrent Class&nbsp;A common
shares offering and to services that are different from those we
receive as of the closing of the concurrent Class&nbsp;A common
shares offering. If we terminate any service with less than 180
days&#146; notice, we will pay for any incremental costs
attributable to the failure to provide 180&nbsp;days&#146;
notice.
</FONT>

<P align="center"><FONT size="2">171
</FONT>

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<P align="left">
<B><FONT size="2">Assignment and Assumption Agreements, Sublease
Agreements and Master License Agreement</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">While conducting business as part of the
PricewaterhouseCoopers network of firms, we have shared the use
of a significant portion of our real estate with the audit, tax
and other businesses of the PricewaterhouseCoopers network. Most
of this real estate has been leased by the firms from third
parties. Prior to the closing of the concurrent Class&nbsp;A
common shares offering, the right to use most of the leased real
estate we currently occupy will be transferred to us, subject to
the obtaining of any required landlord consent, through one of
the three agreements listed below.
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Assignment and Assumption
    Agreements.</FONT></I></B><FONT size="2"> For locations where we
    use 75% or more of the entire space covered by the applicable
    lease or where we now use the predominant portion of the entire
    space covered by the applicable lease but intend to use the
    entire space, the lease will be assigned to us pursuant to an
    assignment and assumption agreement, unless it is reasonably
    agreed by us and the applicable PricewaterhouseCoopers firm to
    enter into a sublease or license agreement to avoid the need to
    seek a landlord consent or to facilitate the obtaining of any
    landlord consent. The agreement will contain customary
    provisions, including assignment of lease responsibilities
    accruing after the effective date of the assignment and
    indemnification. For locations where we use less than 75% of the
    entire space covered by the applicable lease or where we now use
    the predominant portion of the entire space covered by the
    applicable lease but intend to use the entire space, the portion
    of the space not used by us at the time of the closing of the
    concurrent Class&nbsp;A common shares offering will be subleased
    or licensed back to the applicable PricewaterhouseCoopers firm,
    using the form of sublease or license agreement described below.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Sublease
    Agreements.</FONT></I></B><FONT size="2"> If we use a portion of
    the entire space covered by the applicable lease that is less
    than 75% of the entire space, the lease for this space will not
    be assigned to us as described above and this portion is
    segregated from portions of the space used by other businesses
    of the PricewaterhouseCoopers firms, the right to use this
    portion will be transferred to us through a sublease agreement
    unless it is reasonably agreed by us and the applicable
    PricewaterhouseCoopers firm to enter into a license agreement to
    avoid having to obtain a required landlord consent or to
    facilitate obtaining any required landlord consent. The sublease
    generally will reflect the provisions of the applicable lease to
    the extent allocable to the subleased portion.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <B><I><FONT size="2">Master License
    Agreements.</FONT></I></B><FONT size="2"> If our use of a
    portion of the entire space covered by the applicable lease is
    intermingled with the use of other portions of the same space by
    other businesses of PricewaterhouseCoopers firms to an extent
    that the portion used by us is not segregated for the purposes
    of a sublease, and the lease for this space will not be assigned
    to us as described above, a license agreement will be used to
    license to us the right to occupy this portion of the space.
    Generally, only one master license agreement will be signed for
    each country or region. Our license agreements and the license
    fee payable as a result generally will reflect the provisions of
    the applicable lease to the extent applicable to a license and
    allocable to the licensed portion.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Redemption and Non-Competition
Agreement</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">See &#147;Arrangements with Our
Partners&#151;Redemption and Non-Competition Agreement&#148; for
a description of this agreement.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Prior to the concurrent offerings, some of the
PricewaterhouseCoopers firms and partners or shareholders of
some other firms in the network will enter into a shareholders
agreement with us. This agreement is applicable only if these
firms and their partners and shareholders do not completely
liquidate their holdings in us as a result of the concurrent
Class&nbsp;A common shares offering.
</FONT>

<P align="center"><FONT size="2">172
</FONT>

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<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Covered
Shareholders and Covered Shares</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In this description, the terms
&#147;shareholder&#148; or &#147;shareholders&#148; refer to
each PricewaterhouseCoopers firm and partners or shareholders of
some other firms in the network, including custodial
arrangements, that will receive or will have the right to
receive our Class&nbsp;A common shares, Monday SCA Class&nbsp;I
common shares or exchangeable shares of one of Monday SCA&#146;s
subsidiaries in our separation. The terms &#147;share&#148; or
&#147;shares&#148; refer to Monday SCA Class&nbsp;I common
shares issued in our separation, exchangeable shares of one of
Monday SCA&#146;s subsidiaries issued in our separation and our
Class&nbsp;A common shares either issued in our separation or
which the shareholders may receive upon redemption of Monday SCA
Class&nbsp;I common shares or upon exchange of exchangeable
shares of one of Monday SCA&#146;s subsidiaries, unless
specifically stated otherwise.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Share
Transfer Restrictions</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Except with respect to a permitted transfer in
connection with a registered offering as discussed below and
other limited exceptions, the shareholders will not be permitted
to transfer any shares. Between the first and second
anniversaries of the closing of the concurrent Class&nbsp;A
common shares offering, in addition to any sales made pursuant
to a registration statement, PricewaterhouseCoopers firms&#146;
partners may sell our shares, whether covered by the
shareholders agreement or not, provided that a partner may make
only one sale per each three-month period and the number of
shares sold in any one sale does not exceed 10% of the aggregate
number of shares then held by such partner. Until the first
anniversary of the closing of the concurrent Class&nbsp;A common
shares offering, holders of Monday SCA Class&nbsp;I common
shares generally will not be able to have their shares redeemed
for our Class&nbsp;A common shares, but PricewaterhouseCoopers
International Limited can require a redemption during this
period to comply with auditor independence rules. There will
also be a lock-up period imposed by the underwriters as
described in &#147;Underwriters.&#148;
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Registration
Rights</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Registration Statements.
</FONT></I></B><FONT size="2">Subject to customary limitations
and lock-up restrictions, one time per year and, additionally,
at any time it is necessary for shareholders to divest some or
all of their Class&nbsp;A common shares to comply with auditor
independence rules, during the five consecutive one-year periods
following the closing of the concurrent Class&nbsp;A common
shares offering, we will file a registration statement under the
Securities Act of 1933 for the offering of our Class&nbsp;A
common shares, provided the offering meets a minimum aggregate
offering value. All shareholders will be entitled to participate
in each registration. To the extent necessary to comply with the
terms of the Securities and Exchange Commission no-action
letter, each year the PricewaterhouseCoopers network of firms
will determine the target share amount to be sold for each
PricewaterhouseCoopers firm and other shareholders that will
receive shares in our separation. If the amount of our
Class&nbsp;A common shares requested to be included in a
registration statement exceeds the amount that can be sold
within the price range acceptable to the shareholders holding a
majority of the shares, Class&nbsp;A common shares will be
included first for the shareholders who have been requested to
register their Class&nbsp;A common shares to meet their target
share amounts, and any additional Class&nbsp;A common shares
will be included on a pro rata basis. After the first
anniversary of the closing of this offering, we expect to file a
shelf registration statement covering resales of Class&nbsp;A
common shares subject to the shareholders agreement. Once this
shelf registration statement is effective, the demand
registration rights described in this paragraph will no longer
be applicable.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Piggyback Registration.
</FONT></I></B><FONT size="2">If at any time we propose to
register the sale of any Class&nbsp;A common shares for cash
under the Securities Act, subject to customary exceptions, we
will provide notice to the shareholders and include in the
registration all Class&nbsp;A common shares held by the
shareholders which they request to be so included. To the extent
necessary to comply with the terms of the proposed SEC no-action
letter, the PricewaterhouseCoopers International Limited board
will have the right to cause shareholders to include their
Class&nbsp;A common shares in any registration and to
subsequently divest the Class&nbsp;A common shares so
registered. To the extent the amount of Class&nbsp;A common
shares requested to be included in such registration statement
exceeds the amount which can be sold within a price range
acceptable to us, the Class&nbsp;A common shares will be
included first for the shareholders who have been requested to
register their Class&nbsp;A common
</FONT>

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</FONT>

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<DIV align="left">
<FONT size="2">shares to meet their target share amounts, and
any additional Class&nbsp;A common shares will be included on a
pro rata basis.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Indemnification.
</FONT></I></B><FONT size="2">In the shareholders agreement, we
generally will agree to indemnify selling shareholders for any
material misstatements or omissions contained in the prospectus
used to sell those Class&nbsp;A common shares and for any
violations by us of the securities laws. Our indemnification
obligations will not apply to misstatements, omissions or
violations of law which arise from information provided to us in
writing by selling shareholders or by persons who control
selling shareholders. Selling shareholders will agree to
indemnify us for any of these misstatements, omissions or
violations, but this indemnification will be limited to the
amount of net proceeds received by the shareholders in the sale.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Priority.</FONT></I></B><FONT size="2"> We
will not grant registrations rights with equal or better terms
than those granted in the shareholders agreement. The shares
covered by the shareholders agreement will have priority over
the shares of any other of our shareholders other than
shareholders exercising demand rights, if the shareholders that
are party to the shareholders agreement are exercising piggyback
rights, for inclusion in any registration statement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Expenses.</FONT></I></B><FONT size="2"> We
have agreed to pay all expenses incurred in connection with each
registration statement described above, except for underwriting
discounts and commissions relating to Class&nbsp;A common shares
sold on behalf of shareholders.
</FONT>

<DIV>&nbsp;</DIV>

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

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD><B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
    <TD>
    <B><I><FONT size="2">Auditor Independence Rules and the Proposed
    Securities and Exchange Commission No-Action
    Letter</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In order to comply with auditor independence
rules and the requirements set forth in the proposed Securities
and Exchange Commission no-action letter, to the extent that the
shareholders have not already done so, PricewaterhouseCoopers
International Limited will have the right to cause the
shareholders to dispose of all or any portion of their shares on
a pro rata basis over a 5-year period following the closing of
concurrent Class&nbsp;A common shares offering. Each shareholder
will agree to hold its shares in a manner which will permit
either a voluntary or mandatory timely sale of its shares in
accordance with the terms of the proposed SEC no-action letter.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">One of the conditions contained in the proposed
SEC no-action letter would deem a shareholder to have disposed
of its shares when it has sold its shares to third parties
pursuant to Rule&nbsp;144 of the Securities Act or an effective
registration statement or transferred its shares to its partners
or shareholders, or persons holding similar designations, so
long as these shares are freely transferable under the
Securities Act and are free from any contractual transfer
restrictions, all other requirements of the proposed SEC
no-action letter are met and the ownership of these shares is no
longer attributable to the PricewaterhouseCoopers network of
firms.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Voting</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In order to comply with the auditor independence
rules and the conditions set forth in the proposed SEC no-action
letter, all our shares held by any PricewaterhouseCoopers firm
will be nonvoting.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Term
of Agreement</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The shareholders agreement shall terminate with
respect to any shareholder on the date that such shareholder and
its subsidiaries no longer own any shares.
</FONT>

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</FONT>

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<DIV align="left"><A NAME="016"></A></DIV>

<P align="center">
<B><FONT size="2">ARRANGEMENTS WITH OUR PARTNERS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with our separation from the
PricewaterhouseCoopers network of firms, our partners will enter
into one or more of the following agreements with us or one of
our subsidiaries:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Monday Ltd Voting Agreement,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Monday SCA Transfer Rights Agreement and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Redemption and Non-Competition Agreement.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For purposes of the following summaries of these
agreements, the reference to &#147;date of our separation&#148;
means the date on which a PricewaterhouseCoopers firm transfers
its management consulting and technology services business to
us, which in some cases may occur after the closing of the
concurrent offerings.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">These agreements have been filed as exhibits to
the registration statement of which this prospectus forms a part.
</FONT>

<P align="left">
<B><FONT size="2">Monday Ltd Voting Agreement</FONT></B>

<DIV>&nbsp;</DIV>

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

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD></TD>
    <TD>
    <B><I><FONT size="2">Persons and Shares Covered</FONT></I></B></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We and each of our partners who own our
Class&nbsp;A common shares or our Class&nbsp;X common shares
will enter into a voting agreement. Each person who becomes a
partner in the future will also be required to enter into the
voting agreement. The parties to the voting agreement, other
than us, are referred to as covered persons. The shares covered
by the voting agreement are listed below. These shares are
referred to as covered shares.
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Our Class&nbsp;X common shares that are
    beneficially owned by a partner.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Our Class&nbsp;A common shares beneficially owned
    by a partner as of, or prior to, the date of our separation.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Our Class&nbsp;A common shares acquired from us
    or acquired in order to comply with any written policy of ours
    regarding minimum share ownership, as adopted or amended from
    time to time, in either case, while being our employee or
    partner or in connection with becoming a partner.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Any exchangeable shares of one of Monday
    SCA&#146;s subsidiaries that are beneficially owned by a partner.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Covered shares also include any shares received
by a covered person in exchange for or in respect of his or her
covered shares by reason of bonus issues, stock dividends, share
subdivisions, stock splits, reverse stock splits, share
consolidations, spin-offs, split-ups, recapitalizations,
combinations or exchanges of shares. Our Class&nbsp;A common
shares purchased by a covered person in the open market or,
subject to some limitations, in a subsequent underwritten public
offering generally will not be subject to the voting agreement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">When a covered person ceases to be our employee
for any reason other than death, the covered person will
continue to be bound by all the provisions of the voting
agreement until the covered person holds all covered shares free
from transfer restrictions described below, and thereafter he or
she will no longer be bound, in general, by the provisions,
including the voting provision, of the voting agreement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Upon any business combination, amalgamation,
restoration, recapitalization or other extraordinary transaction
involving directly or indirectly us, Monday SCA or, as a result
of which the covered persons shall hold voting securities of an
entity other than us, Monday SCA or one of Monday SCA&#146;s
subsidiaries that has issued exchangeable shares to our
partners, the voting agreement will remain in effect with
appropriate adjustments by our partners committee, which is
described below.
</FONT>

<P align="center"><FONT size="2">175
</FONT>

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<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfer
Restrictions</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">By entering into the voting agreement, each
covered person will agree, among other things, to:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">except as described below, not transfer, and to
    maintain sole beneficial ownership of, his or her covered shares
    received on or prior to the date of our separation,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">comply with the transfer restrictions relating to
    the covered shares imposed by the lock-up provisions described
    under &#147;Underwriters,&#148;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">comply with other transfer restrictions in
    connection with securities offerings when requested to do so by
    us, and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">comply with insider trading policies.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Transfers include, among other things, any
disposition of the economic risks of ownership of covered
shares, including, with a limited exception, short sales, option
transactions and use of derivative financial instruments or
other hedging arrangements with respect to our securities.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class&nbsp;A
Common Shares</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">Current
Partners.</FONT></I></B><FONT size="2"> Subject to complying
with the underwriters&#146; lock-up described under
&#147;Underwriters,&#148; a partner may transfer Class&nbsp;A
common shares beneficially owned by him or her to the extent
necessary to pay taxes incurred in connection with the issuance
of shares to him or her unless we make financing available, or
to the extent these shares were received as repayment of such
partner&#146;s capital account or similar amounts the partner
had previously contributed to his or her PricewaterhouseCoopers
firm or in exchange for exchangeable shares issued in respect
thereof. Class&nbsp;A common shares transferred for these
reasons will not be deemed to be covered shares beneficially
owned by such partner for purposes of calculating the cumulative
percentages of covered shares permitted to be sold by such
partner described below.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Furthermore, covered persons who continue to be
our employees will be permitted to transfer a percentage of the
covered shares owned by them beginning on each anniversary of
the date of our separation commencing on the first anniversary
according to the schedule set forth below.
</FONT>

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

<TR>
    <TD width="53%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="44%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Cumulative percentage of covered</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Years after the date of our</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">shares permitted to be transferred</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">separation</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 valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;20%
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">1&nbsp;year
    </FONT></DIV>
    </TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;40%
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2&nbsp;years
    </FONT></DIV>
    </TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;60%
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">3&nbsp;years
    </FONT></DIV>
    </TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;75%
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">4&nbsp;years
    </FONT></DIV>
    </TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <FONT size="2">100%
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">The later of 5&nbsp;years and termination of
    employment with us
    </FONT></DIV>
    </TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Notwithstanding the restrictions set forth above,
during the first five years after the date of our separation,
partners who terminate their employment with us at or after the
age of 55 and are not in violation of their non-competition
agreement and partners who, while an employee of ours, become
disabled, as defined in the voting agreement, will be permitted
to transfer all of the covered shares they own. All others who
cease to be our employees during the five year period after the
date of our separation will not be permitted to sell covered
shares in accordance with the table set forth above and will
instead be required to hold their covered shares until five
years after the date of our separation. Subject to complying
with the underwriters&#146; lock-up, our partners will be
permitted to transfer Class&nbsp;A common shares distributed to
them in respect of the restricted share units issued in
connection with reductions in our partners&#146; cash
compensation.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><I><FONT size="2">New Partners in the
Future.</FONT></I></B><FONT size="2"> Each person who becomes a
covered person after the date of the concurrent Class&nbsp;A
common shares offering will agree in the voting agreement to be
the sole beneficial owner of the number of Class&nbsp;A common
shares, or options to acquire these securities, as may be
required by us pursuant to written policies adopted by us from
time to time.
</FONT>

<P align="center"><FONT size="2">176
</FONT>

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<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class&nbsp;X
Common Shares</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our Class&nbsp;X common shares may not be
transferred at any time except with our consent. Our board of
directors will delegate the authority to grant this consent to
our partners committee.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have the right to redeem Class&nbsp;X common
shares at any time. We will agree in the voting agreement,
however, to do so only if, after the redemption, a holder owns
no fewer Class&nbsp;X common shares than the number of Monday
SCA Class&nbsp;I common shares plus exchangeable shares issued
by one of Monday SCA&#146;s subsidiaries held by that holder.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Subsidiary
Exchangeable Shares</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Exchangeable shares issued by one of Monday
SCA&#146;s subsidiaries held by covered persons may not be
transferred at any time, except that they may be exchanged for
our Class&nbsp;A common shares beginning one year after
issuance. Class&nbsp;A common shares received in exchange,
however, will be subject to the transfer restrictions in the
voting agreement as if they were owned as of the closing of this
offering.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Subject to customary limitations, we have agreed
to file a shelf registration statement with the Securities and
Exchange Commission one year after this offering, registering
our Class&nbsp;A common shares issuable to covered persons in
exchange for their exchangeable shares issued by one of Monday
SCA&#146;s subsidiaries and, subject to some exceptions, to use
reasonable best efforts to maintain the effectiveness of such
registration statement until all exchangeable shares issued by
one of Monday SCA&#146;s subsidiaries held by covered persons
have been exchanged.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Other
Restrictions</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If we approve in writing a covered person&#146;s
pledge of his or her covered shares to another person, or
pledgee, foreclosures by the pledgee on those shares, and any
subsequent sales of those shares by the pledgee, are not
restricted. The pledgee must give us a right of first refusal,
however, to buy those shares at the market price before they are
sold by the pledgee. Pledges of a covered person&#146;s covered
shares to us to secure obligations under the redemption and
non-competition agreement, and foreclosures or sales by us, also
are not restricted.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition to the restrictions set forth above,
covered persons will need to comply with applicable securities
laws in connection with any transfer and may need to deliver an
opinion of counsel in connection with any transfer.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">All covered shares beneficially owned by covered
persons will, with limited exceptions, be registered in the name
of a nominee for the covered person or held in the custody of a
custodian until transfer of those shares is permitted under the
voting agreement or as otherwise determined by our partners
committee.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">All transfer restrictions applicable to a covered
person under the voting agreement terminate upon death of the
covered person, other than any underwriters&#146; lock-up
restrictions.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Voting</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the voting agreement, prior to any vote of
our shareholders, a separate, preliminary vote of the covered
shares owned by covered persons who are our employees will be
taken on each matter upon which a vote of the shareholders is
proposed to be taken. Subsequently, all of these covered shares
will be voted in the vote of our shareholders in accordance with
the majority of the votes cast in the preliminary vote.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">With respect to elections of directors, however,
all covered shares owned by covered persons who are our
employees will be voted in favor of the election of those
persons receiving the highest numbers of votes cast in the
preliminary vote. In the case of a vote for an amendment to our
memorandum of association or bye-laws, or in connection with an
amalgamation, liquidation, dissolution, sale of all or
substantially all of our property and assets or any similar
transaction with respect to us, all covered shares owned by
covered persons who are our employees will be voted against the
proposal unless at least two-thirds of the votes in the
preliminary vote are cast in favor of the proposal, in which
case all of these covered shares will be voted in favor of the
proposal.
</FONT>

<P align="center"><FONT size="2">177
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">By signing the voting agreement, each covered
person gives our partners committee an irrevocable proxy for the
term of the voting agreement to vote his or her covered shares
on matters that are the subject of a preliminary vote in
accordance with the preliminary vote and on other matters as our
partners committee see fit in a manner consistent with the
preliminary vote.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Additional
Restrictions</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The voting agreement also prevents covered
persons from engaging in the following activities while employed
by us with any person who is not a party to the voting agreement
or a director, officer or employee acting in their capacity as
such:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">participating in a proxy solicitation with
    respect to any of our securities or securities of our
    subsidiaries,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">depositing any covered shares in a voting trust
    or subjecting any of these shares to any voting agreement or
    arrangement,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">forming, joining or in any way participating in a
    group that agrees to vote or dispose of any securities of ours
    or our subsidiaries in a particular manner,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">making any announcement or responding to
    unsolicited requests for information regarding how a person
    intends to vote,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">making any offer or proposal to acquire any of
    our securities or assets or any securities or assets of our
    subsidiaries,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">seeking the removal of any member of our board of
    directors or any change in the composition of our board of
    directors,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">participating in a call for any special meeting
    of our shareholders,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">assisting, advising or encouraging any person to
    do any of the foregoing or
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">initiating or proposing any shareholder proposal.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Securities
and Exchange Commission Filings</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the event that any covered person is required
to file a report of beneficial ownership on schedule&nbsp;13D or
13G of the Securities Exchange Act of 1934 with respect to
covered shares, unless otherwise directed by our partners
committee, the covered person will not file a separate report
but will file a report together with the other covered persons.
As a result of the voting agreement, we expect that a
schedule&nbsp;13D will be required on behalf of all covered
persons as a group.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Term
and Amendment</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The voting agreement will be in effect for
50&nbsp;years from April&nbsp;30, 2002, unless it is earlier
terminated by the vote of two-thirds of the votes represented by
the covered shares owned by covered persons who are our
employees. The transfer restrictions will not terminate upon the
expiration or termination of the voting agreement unless they
have been previously waived or terminated under the terms of the
voting agreement. The voting agreement generally may be amended
or waived at any time by the affirmative vote of two-thirds of
the votes represented by the covered shares owned by covered
persons who are our employees.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Any amendment or waiver that has the effect of
making our obligations under the agreement more onerous to us as
well as any amendment or waiver of the transfer restrictions
also requires our consent. Amendment or waiver of other
provisions may require additional consent. For example,
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">any amendment or waiver that has the effect of
    materially changing the rights or obligations of our partners
    committee will require the approval of our partners committee and
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">178
</FONT>

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<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">any amendment to or waiver of the transfer
    restrictions that would make the transfer restrictions more
    onerous to a covered person will require the consent of the
    covered person.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The transfer restrictions and the other
provisions of the voting agreement may be waived at any time by
our partners committee, with our prior written consent, to
permit covered persons to:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">participate as sellers in underwritten public
    offerings of Class&nbsp;A common shares and tender and exchange
    offers and share repurchase programs by us,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">transfer covered shares to charities, including
    charitable foundations,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">transfer covered shares held in employee benefit
    plans and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">transfer covered shares in particular situations,
    such as to immediate family members and trusts.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our partners committee may also amend the voting
agreement with our consent in connection with a restructuring of
our separation that results in our reorganization as a United
States or United Kingdom corporation. In addition, our partners
committee may make amendments necessary to obtain a no-action
letter from the Securities and Exchange Commission with respect
to Section&nbsp;16 of the Exchange Act.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Administration</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The terms and provisions of the voting agreement
will be administered by our partners committee, which generally
will consist of members of our board of directors who are also
our employees or employees of our subsidiaries holding the
&#147;partner&#148; title or an equivalent title and who agree
to serve as members of our partners committee. Our partners
committee will have the sole power to enforce the provisions of
the voting agreement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will be responsible for all the expenses of
our partners committee incurred in administering the voting
agreement. Each covered person will be responsible for his or
her own expenses incurred in connection with compliance with the
voting agreement.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Governing
Law</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The voting agreement will be governed by the laws
of the state of New York.
</FONT>

<P align="left">
<B><FONT size="2">Monday SCA Transfer Rights Agreement</FONT></B>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Persons
and Shares Covered</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Monday SCA and each of our partners who own
Monday SCA Class&nbsp;I common shares will enter into a transfer
rights agreement. Parties to the agreement, other than Monday
SCA, are referred to as covered persons. The Monday SCA
Class&nbsp;I common shares covered by the transfer rights
agreement generally include all Monday SCA Class&nbsp;I common
shares owned by a covered person, including shares received by
such covered person in exchange for or in respect of his or her
Class&nbsp;I common shares by reason of stock dividends, stock
splits, reverse stock splits, spin-offs, split-ups,
recapitalizations, combinations or exchanges of shares. The
Monday SCA Class&nbsp;I common shares covered by the transfer
rights agreement are referred to as covered shares.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">When a covered person ceases to be our employee
for any reason other than death, the covered person will
continue to be bound by all the provisions of the transfer
rights agreement until the covered person holds all covered
shares free from transfer restrictions described below and
thereafter he or she will no longer be bound, in general, by the
provisions other than continuing provisions of the transfer
rights agreement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Upon any business combination, amalgamation,
restoration, recapitalization or other extraordinary transaction
involving directly or indirectly us or Monday SCA as a result of
which the covered persons shall hold voting securities of an
entity other than us or Monday SCA, the transfer rights
agreement will remain in effect with appropriate adjustments
made by our partners committee.
</FONT>

<P align="center"><FONT size="2">179
</FONT>

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<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Transfer
Restrictions</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">None of the covered persons will be permitted to
request a redemption of his or her covered shares until one year
after the closing of the concurrent Class&nbsp;A common shares
offering. In addition, each covered person will agree, among
other things, to:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">except as described below, not transfer, and to
    maintain sole beneficial ownership of, his or her covered shares
    received on or prior to the date of our separation,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">comply with the transfer restrictions relating to
    the covered shares imposed by the lock-up provisions of the
    underwriting agreement with respect to the concurrent
    Class&nbsp;A common shares offering and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">comply with other transfer restrictions relating
    to Monday SCA Class&nbsp;I common shares when requested to do so
    by Monday SCA and with the insider trading policies of Monday
    SCA.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Transfers include, among other things, exchanges
for our Class&nbsp;A common shares and any disposition of the
economic risks of ownership of covered shares, including, with a
limited exception, short sales, option transactions and use of
derivative financial instruments or other hedging arrangements
with respect to securities of Monday SCA.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Subject to complying with the underwriters&#146;
lock-up, a partner may transfer covered shares beneficially
owned by him or her to the extent necessary to pay taxes
incurred in connection with the issuance of shares to him or her
unless we provide financing, or to the extent these shares were
received as repayment of such partner&#146;s capital account or
similar amounts the partner had previously contributed to his or
her PricewaterhouseCoopers firm. Shares transferred for these
reasons will not be deemed to be covered shares beneficially
owned by such partner for purposes of calculating the cumulative
percentages of covered shares permitted to be sold by such
partner described below.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Furthermore, covered persons who continue to be
our employees will be permitted to transfer a percentage of the
covered shares owned by them beginning on each anniversary of
the date of our separation commencing on the first anniversary
according to the schedule set forth below:
</FONT>

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

<TR>
    <TD width="53%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="44%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Cumulative percentage of covered</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Years after the date of our</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">shares permitted to be transferred</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">separation</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 valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;20%
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">1&nbsp;year
    </FONT></DIV>
    </TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;40%
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2&nbsp;years
    </FONT></DIV>
    </TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;60%
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">3&nbsp;years
    </FONT></DIV>
    </TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;75%
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">4&nbsp;years
    </FONT></DIV>
    </TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">100%
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">The later of 5&nbsp;years and termination of
    employment with us
    </FONT></DIV>
    </TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Notwithstanding the restrictions set forth above
during the first five years after the date of our separation,
partners who terminate their employment with us at or after the
age of 55 and are not in violation of their non-competition
agreement and partners who, while an employee of ours, become
disabled, as defined in the transfer rights agreement, will be
permitted to transfer all of the covered shares they own. All
others who cease to be our employees during the five year period
after the date of our separation will not be permitted to sell
covered shares in accordance with the table set forth above and
will instead be required to hold their covered shares until five
years after the date of our separation.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If Monday SCA approves in writing a covered
person&#146;s pledge of his or her covered shares to another
person, or pledgee, foreclosures by the pledgee on those shares,
and any subsequent sales of those shares by the pledgee, are not
restricted, the pledgee must give Monday SCA a right of first
refusal, however, to buy those shares at the market price of our
Class&nbsp;A common shares before they are sold by the pledgee.
Pledges of a covered person&#146;s covered shares to Monday SCA
to secure obligations under the redemption and non-competition
agreement, and foreclosures or sales by Monday SCA, also are not
restricted.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition to the restrictions set forth above,
covered persons will need to comply with applicable securities
laws in connection with any transfer and may need to deliver an
opinion of counsel in connection with any transfer.
</FONT>

<P align="center"><FONT size="2">180
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">All covered shares beneficially owned by covered
persons will, with limited exceptions, be registered in the name
of a nominee for the covered person or held in the custody of a
custodian until transfer of those shares is permitted under the
transfer rights agreement or as otherwise determined by our
partners committee.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">All transfer restrictions applicable to a covered
person under the transfer rights agreement terminate upon death
of such covered person other than any underwriters&#146; lock-up
restrictions.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Redemptions</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">By signing the transfer rights agreement, each
covered person will agree that the redemption price payable in
connection with any redemption of such covered person&#146;s
covered shares under the Articles of Incorporation of Monday SCA
may, at the option of Monday SCA, be paid in cash or
Class&nbsp;A common shares.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Subject to customary limitations, we have agreed
to file a shelf registration statement with the Securities and
Exchange Commission one year after the closing of the concurrent
Class&nbsp;A common shares offering, registering our
Class&nbsp;A common shares issuable to covered persons upon
redemption of their Monday SCA Class&nbsp;I common shares and,
subject to some exceptions, to use reasonable best efforts to
maintain the effectiveness of such registration statement until
all Monday SCA Class&nbsp;I common shares held by covered
persons have been redeemed.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Securities
and Exchange Commission Filings</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the event that any covered person is required
to file a report of beneficial ownership on schedule&nbsp;13D
or&nbsp;13G of the Securities Exchange Act of 1934 with respect
to covered shares, unless otherwise directed by the partners
committee, the covered person will not file a separate such
report but will file a report together with the other covered
persons.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Term
and Amendment</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The transfer rights agreement will be in effect
for 50&nbsp;years from April&nbsp;30, 2002, unless it is earlier
terminated by the affirmative vote of two-thirds of the votes
represented by the covered shares owned by covered persons who
are our employees. The transfer restrictions will not terminate
upon the expiration or termination of the transfer rights
agreement unless they have been previously waived or terminated
under the terms of the agreement. The transfer rights agreement
generally may be amended or waived at any time by the
affirmative vote of two-thirds of the votes represented by the
covered shares owned by covered persons who are our employees.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Any amendment or waiver that has the effect of
making the obligations of Monday SCA under the transfer rights
agreement more onerous to Monday SCA as well as any amendment or
waiver of the transfer restrictions also require the consent of
Monday SCA. Amendment or waiver of other provisions may require
additional consent. For example,
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">any amendment or waiver that has the effect of
    materially changing the rights or obligations of our partners
    committee will require the approval of our partners committee and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">any amendment to or waiver of the transfer
    restrictions that would make transfer restrictions more onerous
    to a covered person will require the consent of the covered
    person.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The transfer restrictions and the other
provisions of the transfer rights agreement may be waived at any
time by our partners committee, with Monday SCA&#146;s prior
written consent, to permit covered persons to:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">participate as sellers in underwritten public
    offerings of Class&nbsp;I common shares and share repurchase
    programs and tender offers by Monday SCA,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">transfer covered shares to charities, including
    charitable foundations,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">transfer covered shares held in employee benefit
    plans and
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">181
</FONT>

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<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">transfer covered shares in particular situations,
    such as to immediate family members and trusts.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our partners committee may also amend the
transfer rights agreement, with the consent of Monday SCA, in
connection with a restructuring of our separation that results
in Monday Ltd being reorganized as a United States or United
Kingdom corporation and Monday SCA being reorganized under the
laws of another jurisdiction.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Administration</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The terms and provisions of the transfer rights
agreement will be administered by our partners committee. Our
partners committee will have the sole power to enforce the
provisions of the transfer rights agreement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Monday SCA will be responsible for all the
expenses of the partners committee incurred in administering the
transfer rights agreement. Each covered person will be
responsible for his or her own expenses incurred in connection
with compliance with the transfer rights agreement.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Governing
Law</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The transfer rights agreement will be governed by
the laws of Luxembourg.
</FONT>

<P align="left">
<B><FONT size="2">Redemption and Non-Competition
Agreement</FONT></B>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Persons
Covered</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We or one of our subsidiaries generally will have
entered into a redemption and non-competition agreement with
each of our partners, other than our partners in some countries,
including Australia and Germany, and other than our partners who
have joined us after the execution of the rollup agreement, as
of or prior to the date of our separation.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Restricted
Activities</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each partner who signs a redemption and
non-competition agreement generally will agree that, for a
period ending on the later of three years following the date of
our separation or twelve months following the termination of the
partner&#146;s employment with us or our affiliates, he or she
will not associate with or, in connection with such association,
engage in consulting services for any competitive enterprise or
solicit or assist any other entity in soliciting any client or
prospective client for the purposes of providing consulting
services. In addition, for this period, the partner will agree
not to perform consulting services for any client or prospective
client or interfere with or damage any relationship between us
and a client or prospective client. Each of our partners will
agree that for this period, he or she will not solicit or employ
any employee or any former employee who ceased working for us or
our affiliates within the twelve-month period before or after
the date on which the partner&#146;s employment with us or our
affiliates terminated.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Enforcement</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each of our partners who signs a redemption and
non-competition agreement generally will agree that if the
partner were to breach any provision of the redemption and
non-competition agreement, we would be entitled to equitable
relief restraining the partner from committing any such breach.
In addition, each of our partners will agree that if the partner
were to breach any provisions of the redemption and
non-competition agreement prior to the third anniversary of the
date of our separation, he or she will pay us a predetermined
amount of liquidated damages and, where permissible, that the
liquidated damages will be secured by the partner&#146;s
Class&nbsp;A common shares, Class&nbsp;X common shares, Monday
SCA Class&nbsp;I common shares or other equity in our
subsidiaries. Our partners will be permitted to dispose of their
pledged securities in accordance with the terms of the voting
agreement or the transfer rights agreement and to receive the
proceeds from such dispositions.
</FONT>

<P align="center"><FONT size="2">182
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Because the laws concerning the enforcement of
non-competition covenants and the payment of liquidated damages
vary, we may not be able to strictly enforce these terms in all
jurisdictions, and the terms, including length, of the
redemption and non-competition agreement may vary by
jurisdiction due to legal and other considerations.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Waiver</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may waive provisions of the redemption and
non-competition agreement or any portion thereof with the
consent of, and in the discretion of, our chief executive
officer or his or her designee.
</FONT>

<P align="center"><FONT size="2">183
</FONT>

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<!-- link1 "PRINCIPAL AND SELLING SHAREHOLDERS IN THE CONCURRENT CLASS A COMMON SHARES OFFERING" -->
<DIV align="left"><A NAME="017"></A></DIV>

<P align="center">
<B><FONT size="2">PRINCIPAL AND SELLING SHAREHOLDERS IN THE
CONCURRENT</FONT></B>

<DIV align="center">
<B><FONT size="2">CLASS&nbsp;A COMMON SHARES OFFERING</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In this section, the words &#147;we,&#148;
&#147;us&#148; and &#147;our&#148; refer only to Monday&nbsp;Ltd
and not to any of its subsidiaries.
</FONT>

<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 Class&nbsp;A common
shares immediately prior to the closing of the concurrent
offerings and as adjusted to reflect the sale of our
Class&nbsp;A common shares in the concurrent Class&nbsp;A common
shares offering held by:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">each holder who is known to us to be the
    beneficial owner of more than 5% of any class of our outstanding
    common shares,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">each selling shareholder,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">each of our directors and named executive
    officers and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">all of our directors and named executive officers
    as a group.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Except as otherwise indicated, the persons or
entities listed below have sole voting and investment power with
respect to the shares beneficially owned by them. We have listed
all selling shareholders in the concurrent Class&nbsp;A common
shares offering that are individuals in exhibit&nbsp;99.1 to the
registration statement filed in connection with the concurrent
Class&nbsp;A common shares offering.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, &#147;beneficial ownership&#148; is
determined in accordance with Rule&nbsp;13d-3 under the
Securities Exchange Act of 1934, pursuant to which a person or
group of persons is deemed to have &#147;beneficial
ownership&#148; of any common shares that such person has the
right to acquire within 60&nbsp;days after the date of this
prospectus. For purposes of computing the percentage of our
outstanding common shares held by each persons named above, any
shares that such person or persons has the right to acquire
within 60&nbsp;days after the date of this prospectus are deemed
to be outstanding but are not deemed to be outstanding for the
purposes of computing the percentage ownership of any other
person. We also treat all shares issued by our subsidiaries in
connection with our separation to PricewaterhouseCoopers firms,
their partners or shareholders and our partners as if they had
been redeemed or exchanged on a one-for-one basis for our
Class&nbsp;A common shares.
</FONT>

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

<TR>
    <TD width="34%"><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>
    <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="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="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>
    <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>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><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="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Class A</FONT></B></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">Class A</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Common</FONT></B></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">Common</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Shares</FONT></B></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">Shares</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Beneficially</FONT></B></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">Beneficially</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Owned before</FONT></B></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">Owned after</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">the Concurrent</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of Class A</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">the Concurrent</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Class&nbsp;A</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Common Shares to</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Class&nbsp;A</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Common Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">be Sold in</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Common Shares</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Offering</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Class X Common</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">the Concurrent</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">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 Beneficially</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Class&nbsp;A Common</FONT></B></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 of Beneficial Owner</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">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Owned</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares Offering</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">%</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">PwCC Holding (Florida) LLC (United States)
    </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>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PricewaterhouseCoopers United Kingdom Firm
    (United Kingdom)
    </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>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PwC Deutsche Revision Aktiengesellschaft
    Wirtschaftsprufungsgesellschaft (Germany)
    </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>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PricewaterhouseCoopers LLP (Canada)
    </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>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PricewaterhouseCoopers Associates 2002 (Canada)
    </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>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PricewaterhouseCoopers N.V. (Netherlands)
    </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>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PricewaterhouseCoopers (Am&#233;rica del Sur)
    (Uruguay)
    </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>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">184
</FONT>

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

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

<TR>
    <TD width="34%"><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>
    <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="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="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>
    <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>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><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="3"></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Class A</FONT></B></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">Class A</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Common</FONT></B></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">Common</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Shares</FONT></B></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">Shares</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Beneficially</FONT></B></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">Beneficially</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Owned before</FONT></B></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">Owned after</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">the Concurrent</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of Class A</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">the Concurrent</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Class&nbsp;A</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Common Shares to</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Class&nbsp;A</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Common Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">be Sold in</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Common Shares</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Offering</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Class X Common</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">the Concurrent</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">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 Beneficially</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Class&nbsp;A Common</FONT></B></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 of Beneficial Owner</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">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Owned</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares Offering</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">%</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">South American Finance Corporation Ltd (Bermuda)
    </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>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <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">LHS P/S (Denmark)
    </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>
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    <TD><FONT size="2">&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">PricewaterhouseCoopers Republic of Ireland Firms
    (Ireland)
    </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>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">PricewaterhouseCoopers DA (Norway)
    </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>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">Advokatfirmaet PricewaterhouseCoopers DA (Norway)
    </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>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">PricewaterhouseCoopers AG (Switzerland)
    </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>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD><FONT size="2">&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">PwC Administration Limited (New Zealand)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <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">Prosperita B.V. (Netherlands)
    </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>
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    <TD><FONT size="2">&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">PricewaterhouseCoopers-Auditores e Consultores,
    Lda (Portugal)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <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">PricewaterhouseCoopers-Contabilidade e
    Administra&#231;&#227;o e Servi&#231;os, Lda (Portugal)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <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">PricewaterhouseCoopers Eastern Europe B.V.
    (Netherlands)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD><FONT size="2">&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">Espi&#241;eira, Sheldon y Asociados
    (PricewaterhouseCoopers) (Venezuela)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <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">PricewaterhouseCoopers SA Partnership (South
    Africa)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <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">R-Laatikko 101 Oy (Finland)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
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<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Oreo Oy (Finland)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
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<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Dyson Oy (Finland)
    </FONT></DIV>
    </TD>
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<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Titulus Oy (Finland)
    </FONT></DIV>
    </TD>
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</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Jacanta Oy (Finland)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
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<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Kesselman Consulting Price Waterhouse Coopers
    Ltd. (Israel)
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
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<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PricewaterhouseCoopers Africa Limited (Mauritius)
    </FONT></DIV>
    </TD>
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<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">All individual selling shareholders listed on
    Exhibit&nbsp;99.1 of the prospectus filed in connection with the
    concurrent Class&nbsp;A common shares offering
    </FONT></DIV>
    </TD>
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<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">All of our partners, as a group
    </FONT></DIV>
    </TD>
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<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Gregory D. Brenneman
    </FONT></DIV>
    </TD>
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<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Willard W. Brittain
    </FONT></DIV>
    </TD>
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<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">J. Frank Brown
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
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<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Michael S. Collins
    </FONT></DIV>
    </TD>
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<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Dennis J. Dall
    </FONT></DIV>
    </TD>
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<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Steven DeSutter
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
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<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">David V. Dockray
    </FONT></DIV>
    </TD>
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<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Ronald B. Hauben
    </FONT></DIV>
    </TD>
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</TABLE>
</CENTER>

<P align="center"><FONT size="2">185
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

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

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Class A</FONT></B></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">Class A</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Common</FONT></B></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">Common</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Shares</FONT></B></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">Shares</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Beneficially</FONT></B></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">Beneficially</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Owned before</FONT></B></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">Owned after</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">the Concurrent</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Number of Class A</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">the Concurrent</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Class&nbsp;A</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Common Shares to</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Class&nbsp;A</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Common Shares</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">be Sold in</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Common Shares</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Offering</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Class X Common</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">the Concurrent</FONT></B></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">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 Beneficially</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Class&nbsp;A Common</FONT></B></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 of Beneficial Owner</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">%</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Owned</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Shares Offering</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">%</FONT></B></TD>
</TR>

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    <TD></TD>
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    <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">Thomas A. Leipzig
    </FONT></DIV>
    </TD>
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<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bennett R. Machtiger
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
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</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Clive D. Newton
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
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</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Thomas C. O&#146;Neill
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
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</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Jose Luiz T. Rossi
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
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</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Frank S. Sowinski
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
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</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">All of our directors and named executive
    officers, as a group
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
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    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">186
</FONT>

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

<!-- link2 "DESCRIPTION OF THE PEPS UNITS" -->
<DIV align="left"><A NAME="018"></A></DIV>

<P align="center">
<B><FONT size="2">DESCRIPTION OF THE PEPS UNITS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In this description, the words &#147;we,&#148;
&#147;us&#148; and &#147;our&#148; refer only to Monday Ltd and
not to any of its subsidiaries.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will issue the PEPS Units under the purchase
contract agreement between us and the purchase contract agent.
The PEPS Units initially will consist
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;units
(&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;units
if the underwriters exercise their over-allotment option in
full) each with a stated amount per unit equal to $25.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each PEPS Unit will consist of a unit comprising:
</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;&nbsp;&nbsp;&nbsp;&nbsp;a purchase
    contract under which the holder will agree to purchase from us
    not later
    than &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2006, the purchase contract settlement date, for $25, a number
    of our newly issued Class&nbsp;A common shares equal to the
    settlement rate described below under &#147;Description of the
    Purchase Contracts&#151;Purchase of Class&nbsp;A Common
    Shares,&#148; 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;&nbsp;&nbsp;&nbsp;&nbsp;either
    </FONT></TD>
</TR>

</TABLE>
<P>

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

<TR>
    <TD width="10%"></TD>
    <TD width="4%"></TD>
    <TD width="86%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">a $25 principal amount senior note
    due &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    2008, issued by Monday Finance SA, an indirect wholly owned
    subsidiary of Monday SCA, that will be absolutely, irrevocably
    and unconditionally guaranteed by Monday SCA as to the payment
    of principal, interest, additional amounts, if any, and premium,
    if any; we refer to the senior notes and the related guarantees
    by Monday SCA collectively as the senior notes, or
    </FONT></TD>
</TR>

</TABLE>
<P>

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

<TR>
    <TD width="10%"></TD>
    <TD width="2%"></TD>
    <TD width="88%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">following the occurrence of a special event
    redemption prior to the purchase contract settlement date, the
    applicable ownership interest in a portfolio of zero-coupon
    U.S.&nbsp;Treasury securities, which we refer to as the Treasury
    portfolio.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&#147;Applicable ownership interest&#148; means,
with respect to a PEPS Unit and the U.S.&nbsp;Treasury
securities in the Treasury portfolio,
</FONT>
<P>

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

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    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    <FONT size="2">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a 1/40, or 2.5%,
    undivided beneficial ownership interest in a $1,000 face amount
    principal or interest strip of a U.S.&nbsp;Treasury security
    included in the Treasury portfolio that matures on or prior to
    the business day immediately preceding the purchase contract
    settlement date, 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;&nbsp;&nbsp;&nbsp;&nbsp;for each
    scheduled interest payment date on the senior notes that occurs
    after the special event redemption date and on or before the
    purchase contract settlement date,
    a &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%
    undivided beneficial ownership interest in a $1,000 face amount
    principal or interest strip of a U.S. Treasury security included
    in the Treasury portfolio that matures on or prior to the
    business day immediately preceding that interest payment date.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The purchase price of each PEPS Unit will be
allocated between the related purchase contract and the related
senior note in proportion to their respective fair market values
at the time of issuance. We expect that, at the time of
issuance, the fair market value of each senior note will be
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and the fair market value of each
purchase contract will be $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;. This
position generally will be binding on the beneficial owner of
each PEPS Unit but not on the IRS.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As long as a unit is in the form of a PEPS Unit,
the senior note or the applicable ownership interest in the
Treasury portfolio, as applicable, forming a part of the PEPS
Unit will be pledged to the collateral agent to secure the
holder&#146;s obligation to purchase Class&nbsp;A common shares
under the related purchase contract.
</FONT>

<!-- link2 "Creating Treasury PEPS Units" -->
<DIV align="left"><A NAME="019"></A></DIV>

<P align="left">
<B><FONT size="2">Creating Treasury PEPS Units</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each holder of PEPS Units will have the right, at
any time on or prior to the fifth business day immediately
preceding the purchase contract settlement date, to substitute
for the related senior notes or applicable ownership interests
in the Treasury portfolio held by the collateral agent,
zero-coupon Treasury securities (Cusip
No.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)
maturing
on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006, which we refer to as Treasury securities, in a total
principal amount at maturity equal to the aggregate principal
amount of the senior notes or applicable ownership interests in
the Treasury portfolio for which substitution is being made.
This substitution will create
</FONT>

<P align="center"><FONT size="2">187
</FONT>

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

<DIV align="left">
<FONT size="2">Treasury PEPS Units, and the senior notes or
applicable ownership interests in the Treasury portfolio will be
released to the holder.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each Treasury PEPS Unit will consist of a unit
with a stated amount of $25 comprising:
</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;&nbsp;&nbsp;&nbsp;&nbsp;a purchase
    contract under which the holder will agree to purchase from us
    not later than the purchase contract settlement date, for $25, a
    number of our newly issued Class&nbsp;A common shares equal to
    the settlement rate, 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;&nbsp;&nbsp;&nbsp;&nbsp;a 1/40, or 2.5%,
    undivided beneficial ownership interest in a Treasury security
    with a principal amount at maturity of $1,000.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Because Treasury securities are issued in
multiples of $1,000, holders of PEPS Units may make this
substitution only in integral multiples of 40&nbsp;PEPS Units.
However, if the Treasury portfolio has replaced the senior notes
as a component of the PEPS Units, holders of PEPS Units may make
substitutions only in multiples
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PEPS
Units.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">To create 40 Treasury PEPS Units, the PEPS Unit
holder will:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">deposit with the collateral agent a Treasury
    security that has a principal amount at maturity of $1,000,
    which must be purchased in the open market at the holder&#146;s
    expense, and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">transfer 40&nbsp;PEPS Units to the purchase
    contract agent accompanied by a notice stating that the holder
    has deposited a Treasury security with the collateral agent and
    requesting the release to the holder of the 40&nbsp;senior notes
    or applicable ownership interests in the Treasury portfolio
    relating to the 40&nbsp;PEPS Units.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Upon the deposit and receipt of an instruction
from the purchase contract agent, the collateral agent will
release the related 40&nbsp;senior notes or applicable ownership
interests in the Treasury portfolio from the pledge under the
pledge agreement, free and clear of our security interest, to
the purchase contract agent. The purchase contract agent then
will:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">cancel the 40&nbsp;PEPS Units,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">transfer the 40 related senior notes or
    applicable ownership interests in the Treasury portfolio to the
    holder, and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">deliver 40 Treasury PEPS Units to the holder.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The substituted Treasury security will be pledged
to the collateral agent to secure the holder&#146;s obligation
to purchase our Class&nbsp;A common shares under the related
purchase contracts. The related senior notes or applicable
ownership interests in the Treasury portfolio released to the
holder thereafter will trade separately from the resulting
Treasury PEPS Units.
</FONT>

<!-- link2 "Recreating PEPS Units" -->
<DIV align="left"><A NAME="020"></A></DIV>

<P align="left">
<B><FONT size="2">Recreating PEPS Units</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each holder of Treasury PEPS Units will have the
right, at any time on or prior to the fifth business day
immediately preceding the purchase contract settlement date, to
substitute for the related Treasury securities held by the
collateral agent, senior notes or applicable ownership interests
in the Treasury portfolio in an aggregate principal amount equal
to the aggregate amount payable at stated maturity of the
Treasury securities for which substitution is being made. This
substitution would create PEPS Units, and the applicable
Treasury securities would be released to the holder.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Because Treasury securities are issued in
integral multiples of $1,000, holders of Treasury PEPS Units may
make this substitution only in integral multiples of
40&nbsp;Treasury PEPS Units. If the Treasury portfolio has
replaced the senior notes as a component of the PEPS Units,
holders of the Treasury PEPS Units may make this substitution
only in integral multiples
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury
PEPS Units.
</FONT>

<P align="center"><FONT size="2">188
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">To create 40 PEPS Units, the Treasury PEPS Unit
holder will:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">deposit with the collateral agent 40&nbsp;senior
    notes or applicable ownership interests in the Treasury
    portfolio, which must be purchased in the open market at the
    holder&#146;s expense, and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">transfer 40 Treasury PEPS Units to the purchase
    contract agent accompanied by a notice stating that the holder
    has deposited 40&nbsp;senior notes or applicable ownership
    interests in the Treasury portfolio with the collateral agent
    and requesting the release to the holder of the Treasury
    security relating to the Treasury PEPS Units.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Upon the deposit and receipt of an instruction
from the purchase contract agent, the collateral agent will
release the related Treasury security from the pledge under the
pledge agreement, free and clear of our security interest, to
the purchase contract agent. The purchase contract agent will
then
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">cancel the 40 Treasury PEPS Units,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">transfer the related Treasury security to the
    holder, and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">deliver 40 PEPS Units to the holder.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The substituted senior notes or applicable
ownership interests in the Treasury portfolio will be pledged to
the collateral agent to secure the holder&#146;s obligation to
purchase our Class&nbsp;A common shares under the related
purchase contracts.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Holders that elect to substitute pledged
securities, thereby creating Treasury PEPS Units or recreating
PEPS Units, will be responsible for any fees or expenses payable
in connection with the substitution.
</FONT>

<!-- link2 "Current Payments" -->
<DIV align="left"><A NAME="021"></A></DIV>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Holders of PEPS Units are entitled to receive
quarterly cash distributions consisting of interest on the
related senior notes or distributions on the applicable
ownership interests in the Treasury portfolio, as applicable,
payable at the rate of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% per year.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Holders of Treasury PEPS Units will not receive
current payments, but original issue discount will accrue on the
related Treasury securities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Monday Finance SA&#146;s obligations with respect
to the senior notes will be unsubordinated and unsecured and
will rank on an equal basis in right of payment with all of
Monday Finance SA&#146;s other unsubordinated unsecured
obligations. Monday SCA&#146;s obligations with respect to its
guarantee of the senior notes will be unsubordinated and
unsecured and will rank on an equal basis in right of payment
with all of Monday SCA&#146;s other unsubordinated unsecured
obligations. Because neither Monday Finance SA nor Monday SCA
has any independent operations, the ability of Monday Finance SA
and Monday SCA to meet their obligations with respect to the
senior notes will be dependent on the performance of the
subsidiaries of Monday SCA and their ability to transfer funds
to Monday SCA or Monday Finance SA and Monday SCA&#146;s receipt
of dividends and other payments from its direct and indirect
subsidiaries.
</FONT>

<!-- link2 "Payment of Additional Amounts" -->
<DIV align="left"><A NAME="022"></A></DIV>

<P align="left">
<B><FONT size="2">Payment of Additional Amounts</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Monday Finance SA will make all payments on the
senior notes, including the put price, and Monday SCA will make
any payments pursuant to the guarantee of the senior notes,
without withholding or deduction at the source for, or on
account of, any present or future taxes, fees, duties,
assessments or governmental charges of whatever nature imposed
or levied by or on behalf of the jurisdiction in which Monday
Finance SA or Monday SCA is organized (a &#147;taxing
jurisdiction&#148;) or any political subdivision or taxing
authority thereof or therein, unless such taxes, fees, duties,
assessments or governmental charges are required to be withheld
or deducted by (x)&nbsp;the laws (or any regulations or rulings
promulgated thereunder) of a taxing jurisdiction or any
political subdivision or taxing authority thereof or therein or
(y)&nbsp;an official position regarding the application,
administration, interpretation or enforcement of any such laws,
regulations or rulings, including, without limitation, a holding
by a court of competent jurisdiction or by a taxing authority in
a taxing
</FONT>

<P align="center"><FONT size="2">189
</FONT>

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

<DIV align="left">
<FONT size="2">jurisdiction or any political subdivision
thereof. Monday Finance SA and Monday SCA are organized under
the laws of Luxembourg.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If a withholding or deduction by Monday Finance
SA or Monday SCA is required by the law of a taxing
jurisdiction, Monday Finance SA or Monday SCA, as the case may
be, will, subject to certain limitations and exceptions
described below, pay to the holder of any PEPS Unit or senior
note, as the case may be, such additional amounts as may be
necessary so that every net payment made to such holder in
respect thereof, after the withholding or deduction, will not be
less than the amount provided for in the senior note indenture
to be then due and payable.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Notwithstanding the foregoing, Monday Finance SA
and Monday SCA will not be required to pay any additional
amounts to a holder of a PEPS Unit or a senior note for or on
account of:
</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;&nbsp;any tax, fee, duty, assessment or
    governmental charge of whatever nature which would not have been
    imposed but for the fact that such holder (a)&nbsp;was a
    resident, domiciliary or national of, or engaged in business or
    maintained a permanent establishment or was physically present
    in, the relevant taxing jurisdiction or any political
    subdivision thereof or otherwise had some connection with the
    relevant taxing jurisdiction other than by reason of the mere
    ownership of, or receipt of payment under, such PEPS Unit or
    senior note, (b)&nbsp;presented such PEPS Unit or senior note
    for payment in the relevant taxing jurisdiction or any political
    subdivision thereof, unless such PEPS Unit or senior note could
    not have been presented for payment elsewhere, or
    (c)&nbsp;presented such PEPS Unit or senior note for payment
    more than 30 days after the date on which the payment in respect
    of such PEPS Unit or senior note became due and payable or
    provided for, whichever is later, except to the extent that the
    holder would have been entitled to such additional amounts if it
    had presented such PEPS Unit or senior note for payment on any
    day within that 30-day period;
    </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;&nbsp;any estate, inheritance, gift,
    sale, transfer, personal property or similar tax, assessment or
    other governmental charge;
    </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">(3)&nbsp;&nbsp;any tax, assessment or other
    governmental charge that is imposed or withheld by reason of the
    failure by the holder or the beneficial owner of such PEPS Unit
    or senior note to comply with any reasonable request by Monday
    Finance SA or Monday SCA addressed to the holder within
    90&nbsp;days of such request (a)&nbsp;to provide information
    concerning the nationality, residence or identity of the holder
    or such beneficial owner or (b)&nbsp;to make any declaration or
    other similar claim or satisfy any information or reporting
    requirement, which is required or imposed by statute, treaty,
    regulation or administrative practice of the relevant taxing
    jurisdiction or any political subdivision thereof as a
    precondition to exemption from all or part of such tax,
    assessment or other governmental charge; or
    </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">(4)&nbsp;&nbsp;any combination of items (1),
    (2)&nbsp;and (3).
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, Monday Finance SA and Monday SCA
will not pay additional amounts with respect to any payment of
any amounts on any such PEPS Unit or senior note to any holder
who is a fiduciary or partnership or other than the sole
beneficial owner of such PEPS Unit or senior note to the extent
such payment would be required by the laws of the relevant
taxing jurisdiction (or any political subdivision or relevant
taxing authority thereof or therein) to be included in the
income for tax purposes of a beneficiary or partner or settlor
with respect to such fiduciary or a member of such partnership
or a beneficial owner who would not have been entitled to such
additional amounts had it been the holder of the PEPS Unit or
senior note.
</FONT>

<!-- link2 "Voting and Certain Other Rights" -->
<DIV align="left"><A NAME="023"></A></DIV>

<P align="left">
<B><FONT size="2">Voting and Certain Other Rights</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Holders of purchase contracts forming part of the
PEPS Units or Treasury PEPS Units, in their capacities as such
holders, will have no voting or other rights in respect of our
Class&nbsp;A common shares.
</FONT>

<P align="center"><FONT size="2">190
</FONT>

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

<!-- link2 "Listing of the Securities" -->
<DIV align="left"><A NAME="024"></A></DIV>

<P align="left">
<B><FONT size="2">Listing of the Securities</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have applied to list the PEPS Units on the New
York Stock Exchange under the symbol
&#147;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.&#148; Unless and until
substitution has been made as described in &#147;&#151;Creating
Treasury PEPS Units,&#148; the senior note component of a PEPS
Unit will not trade separately from the PEPS Units and will
trade as a unit with the purchase contract component of a PEPS
Unit. We have no obligation or current intention to apply for a
separate listing of the Treasury PEPS Units or the senior notes.
</FONT>

<!-- link2 "Miscellaneous" -->
<DIV align="left"><A NAME="025"></A></DIV>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We or our affiliates may from time to time
purchase any of the securities offered by this prospectus which
are then outstanding by tender, in the open market or by private
agreement.
</FONT>

<P align="center"><FONT size="2">191
</FONT>

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

<!-- link2 "DESCRIPTION OF THE PURCHASE CONTRACTS" -->
<DIV align="left"><A NAME="026"></A></DIV>

<P align="center">
<B><FONT size="2">DESCRIPTION OF THE PURCHASE
CONTRACTS</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This section summarizes some of the terms of the
purchase contract agreement, purchase contracts, pledge
agreement, remarketing agreement and senior note indenture. The
summary should be read together with the purchase contract
agreement, pledge agreement, remarketing agreement and senior
note indenture, forms of which have been filed as exhibits to
the registration statement of which this prospectus forms a
part. In this description, the words &#147;we,&#148;
&#147;us&#148; and &#147;our&#148; refer only to Monday Ltd and
not to any of its subsidiaries.
</FONT>

<!-- link2 "Purchase of Common Shares" -->
<DIV align="left"><A NAME="027"></A></DIV>

<P align="left">
<B><FONT size="2">Purchase of Common Shares</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each purchase contract underlying a PEPS Unit or
Treasury PEPS Units will obligate the holder of the purchase
contract to purchase, and us to sell, on the purchase contract
settlement date, for an amount in cash equal to $25, the stated
amount of the PEPS Unit or Treasury PEPS Units, a number of our
newly issued Class&nbsp;A common shares equal to the
&#147;settlement rate.&#148; The settlement rate will be
calculated, subject to adjustment under the circumstances
described in &#147;&#151;Anti-Dilution Adjustments,&#148; as
follows:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">If the applicable market value is equal to or
    greater than the threshold appreciation price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    which is
    approximately &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;%
    above the reference price of
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    the settlement rate will
    be &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    which is equal to $25 divided by the threshold appreciation
    price. Accordingly, if, between the date of this prospectus and
    the period during which the applicable market value is measured,
    the market price for our Class&nbsp;A common shares increases to
    an amount that is higher than the threshold appreciation price,
    the aggregate market value of the shares of our Class&nbsp;A
    common shares issued upon settlement of each purchase contract
    will be higher than $25, assuming that the market value is the
    same as the applicable market value of our Class&nbsp;A common
    shares. If the market price is the same as the threshold
    appreciation price, the aggregate market value of the shares
    will be equal to $25, assuming that the market value is the same
    as the applicable market value of our Class&nbsp;A common shares;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">If the applicable market value is less than the
    threshold appreciation price but greater than the reference
    price, the settlement rate will be equal to $25 divided by the
    applicable market value. Accordingly, if the market price for
    the Class&nbsp;A common shares increases between the date of
    this prospectus and the period during which the applicable
    market value is measured, but the market price is less than the
    threshold appreciation price, the aggregate market value of our
    Class&nbsp;A common shares issued upon settlement of each
    purchase contract will be equal to $25, assuming that the market
    value is the same as the applicable market value of the
    Class&nbsp;A common shares; and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">If the applicable market value is less than or
    equal to the reference price, the settlement rate will
    be &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
    which is equal to $25 divided by the reference price.
    Accordingly, if the market price for our Class&nbsp;A common
    shares decreases between the date of this prospectus and the
    period during which the applicable market value is measured, the
    aggregate market value of our Class&nbsp;A common shares issued
    upon settlement of each purchase contract will be less than $25,
    assuming that the market value is the same as the applicable
    market value of the Class&nbsp;A common shares. If the market
    price stays the same, the aggregate market value of the shares
    will be equal to $25, assuming that the market value is the same
    as the applicable market value of the Class&nbsp;A common shares.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&#147;Applicable market value&#148; means the
average of the closing price per share of our Class&nbsp;A
common shares on each of the twenty consecutive trading days
ending on the third trading day immediately preceding the
purchase contract settlement date.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&#147;Closing price&#148; of the Class&nbsp;A
common shares on any date of determination means the closing
sale price (or, if no closing price is reported, the last
reported sale price) of the Class&nbsp;A common shares on the
New York Stock Exchange on that date or, if the Class&nbsp;A
common shares are not listed for trading on the New York Stock
Exchange on any such date, as reported in the composite
transactions for the principal United States securities exchange
on which the Class&nbsp;A common shares are so listed. If the
Class&nbsp;A common shares are not so listed on a United States
national or regional securities exchange, the closing price
means the last closing sale price of the Class&nbsp;A common
shares as reported by the Nasdaq National Market, or, if the
Class&nbsp;A
</FONT>

<P align="center"><FONT size="2">192
</FONT>

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<DIV align="left">
<FONT size="2">common shares are not so reported, the last
quoted bid price for the Class&nbsp;A common shares in the
over-the-counter market as reported by the National Quotation
Bureau or similar organization. If the bid price is not
available, the closing price means the market value of the
Class&nbsp;A common shares on the date of determination as
determined by a nationally recognized independent investment
banking firm retained by us for this purpose.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A &#147;trading day&#148; means a day on which
the Class&nbsp;A common shares:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">are not suspended from trading on any national or
    regional securities exchange or association or over-the-counter
    market at the close of business, and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">have traded at least once on the national or
    regional securities exchange or association or over-the-counter
    market that is the primary market for the trading of the
    Class&nbsp;A common shares.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will not issue any fractional shares of
Class&nbsp;A common shares pursuant to the purchase contracts.
In lieu of fractional shares otherwise issuable (calculated on
an aggregate basis) in respect of purchase contracts being
settled by a holder of PEPS Units or Treasury PEPS Units, the
holder will be entitled to receive an amount of cash equal to
the fraction of a share times the applicable market value.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On the business day immediately preceding the
purchase contract settlement date, unless:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">a holder of PEPS Units or Treasury PEPS Units has
    settled the related purchase contracts prior to the purchase
    contract settlement date through the early delivery of cash to
    the purchase contract agent in the manner described under
    &#147;&#151;Early Settlement&#148; or &#147;&#151;Early
    Settlement Upon Cash Merger,&#148;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">a holder of PEPS Units that include senior notes
    has settled the related purchase contracts with separate cash on
    the fourth business day immediately preceding the purchase
    contract settlement date pursuant to prior notice given in the
    manner described under &#147;&#151;Notice to Settle with
    Cash,&#148; or
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the purchase contracts have terminated as a
    result of an event described under &#147;&#151;Termination,&#148;
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">then
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">in the case of PEPS Units where the Treasury
    portfolio has replaced the senior notes as a component of the
    PEPS Units, the proceeds, when paid at maturity, of the
    appropriate applicable ownership interests in the Treasury
    portfolio will automatically be applied to satisfy in full the
    holder&#146;s obligation to purchase Class&nbsp;A common shares
    under the related purchase contracts,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">in the case of PEPS Units where the Treasury
    portfolio has not replaced the senior notes as a component of
    the PEPS Units and there has been a successful remarketing of
    the senior notes, the portion of the proceeds from the
    remarketing equal to the principal amount of the senior notes
    remarketed will automatically be applied to satisfy in full the
    holder&#146;s obligation to purchase Class&nbsp;A common shares
    under the related purchase contracts,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">in the case of PEPS Units where the Treasury
    portfolio has not replaced the senior notes as a component of
    the PEPS Units and there has not been a successful remarketing
    of the senior notes, we will exercise our rights as a secured
    party to retain the senior notes, or the proceeds received as a
    result of any acceleration thereof, pledged as collateral or
    dispose of them in accordance with applicable law. Following
    such action, the PEPS Units holders&#146; obligations to
    purchase our Class&nbsp;A common shares under the related
    purchase contracts on the purchase contract settlement date will
    be satisfied in full, and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">in the case of Treasury PEPS Units, the principal
    amount of the related Treasury securities, when paid at
    maturity, will automatically be applied to satisfy in full the
    holder&#146;s obligation to purchase Class A common shares under
    the related purchase contracts.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Class&nbsp;A common shares will then be
issued and delivered to the holder or the holder&#146;s
designee, upon presentation and surrender of the certificate
evidencing the PEPS Units or Treasury PEPS Units and payment by
the holder of any transfer or similar taxes payable in
connection with the issuance of the Class&nbsp;A common shares
to any person other than the holder.
</FONT>

<P align="center"><FONT size="2">193
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each holder of PEPS Units or Treasury PEPS Units,
by acceptance of these securities, will be deemed to have:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">irrevocably agreed to be bound by the terms and
    provisions of the related purchase contracts and the pledge
    agreement and to have agreed to perform its obligations
    thereunder for so long as the holder remains a holder of the
    PEPS Units or Treasury PEPS Units, and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">duly appointed the purchase contract agent as the
    holder&#146;s attorney-in-fact to enter into and perform the
    related purchase contracts and pledge agreement on behalf of and
    in the name of the holder.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, each beneficial owner of PEPS Units
or Treasury PEPS Units, by acceptance of the beneficial interest
therein, will be deemed to have agreed to treat
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">itself as the owner of the related senior notes,
    applicable ownership interests in the Treasury portfolio or the
    Treasury securities, as the case may be, and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the senior notes as indebtedness for all United
    States federal income tax purposes.
    </FONT></TD>
</TR>

</TABLE>

<!-- link2 "Remarketing" -->
<DIV align="left"><A NAME="028"></A></DIV>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pursuant to the remarketing agreement, unless a
special event redemption has occurred or a condition precedent
to remarketing is not satisfied, if a PEPS Unit holder fails to
notify the purchase contract agent on or prior to the fifth
business day immediately preceding the purchase contract
settlement date of its intention to pay cash to satisfy its
obligation under the related purchase contracts, or fails to
deliver such cash on or prior to the fourth business day
immediately preceding the purchase contract settlement date, the
senior notes of PEPS Unit holders will be remarketed on the
third business day immediately preceding the purchase contract
settlement date.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The remarketing agent will use its reasonable
best efforts to remarket the senior notes of PEPS Unit holders
and the senior notes of separate note holders that have decided
to participate in the remarketing at an aggregate price of
approximately 100.25% of their aggregate principal amount. The
portion of the proceeds from this remarketing equal to the
aggregate principal amount of the senior notes which are a
component of the PEPS Units will be automatically applied to
satisfy in full the PEPS Unit holders&#146; obligations to
purchase Class&nbsp;A common shares.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with a successful remarketing of
the senior notes, the remarketing agent will deduct, as a
remarketing fee, an amount not exceeding 25 basis points (.25%)
of the aggregate principal amount of the remarketed senior notes
from any amount of the proceeds in excess of the aggregate
principal amount of the remarketed senior notes. The remarketing
agent will then remit any remaining portion of the proceeds for
the benefit of the holders. PEPS Unit holders whose senior notes
are remarketed will not otherwise be responsible for the payment
of any remarketing fee in connection with the remarketing.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On or prior to the fifth business day preceding
the purchase contract settlement date, holders of senior notes
that are not part of PEPS Units may elect to have their senior
notes remarketed in the same manner as senior notes that are
part of PEPS Units by delivering their senior notes along with a
notice of this election to the custodial agent designated by us.
The custodial agent will hold the senior notes in an account
separate from the collateral account in which the pledged senior
notes are held. Holders of senior notes electing to participate
in the remarketing will also have the right to withdraw their
election until the fifth business day immediately preceding the
purchase contract settlement date. The proceeds of the
remarketing of senior notes that are not part of PEPS Units will
be paid to holders in cash after deduction, to the extent
permissible, of the remarketing fee.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If (1)&nbsp;despite using its reasonable best
efforts, the remarketing agent cannot remarket the senior notes,
other than to us, Monday SCA or Monday Finance SA, at a price
equal to or greater than 100% of the aggregate principal amount
of the senior notes remarketed, or (2)&nbsp;the remarketing has
not occurred because a condition precedent to the remarketing
has not been fulfilled, in each case resulting in a failed
remarketing, we will exercise our rights as a secured party to
retain the senior notes pledged as collateral or dispose of them
in accordance with applicable law. Following such action, the
PEPS Units holders&#146; obligations to purchase our
</FONT>

<P align="center"><FONT size="2">194
</FONT>

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<DIV align="left">
<FONT size="2">Class&nbsp;A common shares under the related
purchase contracts on the purchase contract settlement date will
be satisfied in full. Following a failed remarketing, holders of
senior notes that are not part of PEPS Units will have the right
to put the senior notes to Monday Finance SA
on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006 (the date six weeks following the purchase contract
settlement date), upon at least three business days&#146; prior
notice at a price per senior note of $25, plus accrued and
unpaid interest and additional amounts, if any.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will cause a notice of any failed remarketing
to be published on the second business day immediately preceding
the purchase contract settlement date by publication in a daily
newspaper in the English language of general circulation in the
City of New York, which is expected to be The Wall Street
Journal. It is a condition to the remarketing that, if required
under U.S. federal securities laws, we have a registration
statement under the Securities Act of 1933 in effect covering
the remarketing of the senior notes. If so required, we will use
our reasonable best efforts to have in effect a registration
statement with regard to the full amount of the senior notes to
be remarketed in a form that will enable the remarketing agent
to rely on it in connection with the remarketing process. It is
currently anticipated that Morgan Stanley &#38; Co. Incorporated
will be the remarketing agent.
</FONT>

<!-- link2 "Early Settlement" -->
<DIV align="left"><A NAME="029"></A></DIV>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Subject to the conditions described below, a
holder of PEPS Units or Treasury PEPS Units may settle the
related purchase contracts at any time
following &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2003 (12 calendar months following the concurrent Class&nbsp;A
common shares offering) through the fifth business day
immediately preceding the purchase contract settlement date by
presenting and surrendering the related PEPS Unit or Treasury
PEPS Unit certificate, if they are in certificated form, at the
offices of the purchase contract agent with the form of
&#147;Election to Settle Early&#148; on the reverse side of such
certificate completed and executed as indicated, accompanied by
payment to us in immediately available funds of an amount equal
to $25 times the number of purchase contracts being settled.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A holder of PEPS Units may settle purchase
contracts early only in integral multiples of 40 PEPS Units. If
the Treasury portfolio has replaced the senior notes as a
component of PEPS Units, holders of the PEPS Units may settle
early only in integral multiples
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PEPS
Units. A holder of Treasury PEPS Units may settle early only in
integral multiples of 40 Treasury PEPS Units.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">So long as the PEPS Units are evidenced by one or
more global security certificates deposited with the depositary,
procedures for early settlement will also be governed by
standing arrangements between the depositary and the purchase
contract agent. The early settlement right is also subject to
the condition that if required under the U.S. federal securities
laws, we have a registration statement under the Securities Act
of 1933 in effect covering the securities deliverable upon
settlement of a purchase contract. We have agreed that, if
required under the U.S. federal securities laws, we will use our
reasonable best efforts to (1)&nbsp;have in effect a
registration statement covering the securities to be delivered
in respect of the purchase contracts being settled and
(2)&nbsp;provide a prospectus in connection therewith, in each
case in a form that may be used in connection with the early
settlement right.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Upon early settlement of the purchase contracts
related to any PEPS Units or Treasury PEPS Units:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">except as described below in &#147;&#151;Early
    Settlement Upon Cash Merger&#148; the holder will
    receive &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;newly
    issued Class&nbsp;A common shares per PEPS Unit or Treasury PEPS
    Unit, subject to adjustment under the circumstances described
    under &#147;&#151;Anti-Dilution Adjustments,&#148; accompanied
    by an appropriate prospectus, if required by law, and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the senior notes, the applicable ownership
    interests in the Treasury portfolio, or the Treasury securities,
    as the case may be, related to the PEPS Units or Treasury PEPS
    Units will be transferred to the holder free and clear of our
    security interest,
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If the purchase contract agent receives a PEPS
Unit or Treasury PEPS Unit certificate, if they are in
certificated form, accompanied by the completed &#147;Election
to Settle Early&#148; and required immediately available funds,
from a holder of PEPS Units or Treasury PEPS Units by 5:00 p.m.,
New York City time, on a business day and all conditions to
early settlement have been satisfied, that day will be
considered the
</FONT>

<P align="center"><FONT size="2">195
</FONT>
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<DIV align="left">
<FONT size="2">settlement date. If the purchase contract agent
receives the above after 5:00 p.m., New York City time, on a
business day or at any time on a day that is not a business day,
the next business day will be considered the settlement date.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Upon early settlement of purchase contracts in
the manner described above, presentation and surrender of the
certificate evidencing the related PEPS Units or Treasury PEPS
Units and payment of any transfer or similar taxes payable by
the holder in connection with the issuance of the related
Class&nbsp;A common shares to any person other than the holder
of the PEPS Units or Treasury PEPS Units, we will cause the
Class&nbsp;A common shares being purchased to be issued, and the
related senior notes, applicable ownership interests in the
Treasury portfolio or the Treasury securities, as the case may
be, securing the purchase contracts to be released from the
pledge under the pledge agreement described in
&#147;&#151;Pledged Securities and Pledge Agreement&#148; and
transferred, within three business days, to the purchasing
holder or the holder&#146;s designee.
</FONT>

<!-- link2 "Notice to Settle with Cash" -->
<DIV align="left"><A NAME="030"></A></DIV>

<P align="left">
<B><FONT size="2">Notice to Settle with Cash</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Unless the Treasury portfolio has replaced the
senior notes as a component of PEPS Units, a holder of PEPS
Units may settle the related purchase contract with separate
cash on the fourth business day immediately preceding the
purchase contract settlement date. A holder of a PEPS Unit
wishing to settle the related purchase contract with separate
cash must notify the purchase contract agent by presenting and
surrendering the PEPS Unit certificate evidencing the PEPS Unit
at the offices of the purchase contract agent with the form of
&#147;Notice to Settle by Separate Cash&#148; on the reverse
side of the certificate completed and executed as indicated on
or prior to 5:00&nbsp;p.m., New York City time, on the fifth
business day immediately preceding the purchase contract
settlement date. If a holder that has given notice of its
intention to settle the related purchase contract with separate
cash fails to deliver the cash to the collateral agent on the
fourth business day immediately preceding the purchase contract
settlement date, the senior notes will be included in the
remarketing of senior notes occurring on the third business day
immediately preceding the purchase contract settlement date.
</FONT>

<!-- link2 "Early Settlement Upon Cash Merger" -->
<DIV align="left"><A NAME="031"></A></DIV>

<P align="left">
<B><FONT size="2">Early Settlement Upon Cash Merger</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Prior to the purchase contract settlement date,
if we are involved in a merger in which at least 30% of the
consideration for our Class&nbsp;A common shares consists of
cash or cash equivalents, which we refer to as a cash merger,
then on or after the date of the cash merger, each holder of a
purchase contract will have the right to accelerate and settle
such contract at the settlement rate in effect immediately
before the cash merger, provided that at such time, if so
required under the U.S.&nbsp;federal securities laws, there is
in effect a registration statement covering the securities to be
delivered in respect of the purchase contracts being settled. We
refer to this right as the &#147;merger early settlement
right.&#148; We will provide each of the holders with a notice
of the completion of a cash merger within five business days
thereof. The notice will specify a date selected by us, which
shall be between 20 and 30&nbsp;business days after the date of
the notice but no later than five business days prior to the
purchase contract settlement date, by which each holder&#146;s
merger early settlement right must be exercised. The notice will
set forth, among other things, the applicable settlement rate
and the amount of the cash, securities and other consideration
receivable by the holder upon settlement. To exercise the merger
early settlement right, you must deliver to the purchase
contract agent, three business days before the early settlement
date, the certificate evidencing your PEPS Units or Treasury
PEPS Units, if they are held in certificated form, and payment
of the applicable purchase price in immediately available funds.
If you exercise the merger early settlement right, we will
deliver to you on the early settlement date the kind and amount
of securities, cash or other property that you would have been
entitled to receive if you had settled the purchase contract
immediately before the cash merger at the settlement rate in
effect at such time based on the 20&nbsp;consecutive trading
days ending on the third trading day immediately preceding the
effective date of the cash merger. You will also receive the
senior notes, applicable ownership interests in the Treasury
portfolio or Treasury securities, free and clear of our security
interest. If you do not elect to exercise your merger early
settlement right, your PEPS Units or Treasury PEPS Unit will
remain outstanding and subject to normal settlement on the
purchase contract settlement date.
</FONT>

<P align="center"><FONT size="2">196
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A holder of PEPS Units may exercise the merger
early settlement right only in integral multiples of
40&nbsp;PEPS Units. If the Treasury portfolio has replaced the
senior notes as a component of PEPS Units, holders of the PEPS
Units may exercise the merger early settlement right only in
integral multiples
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PEPS
Units. A holder of Treasury PEPS Units may exercise the merger
early settlement right only in integral multiples of
40&nbsp;Treasury PEPS Units.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The merger early settlement right is also subject
to the condition that if required under U.S. federal securities
laws, we have a registration statement under the Securities Act
of 1933 in effect covering the securities deliverable upon
settlement of a purchase contract. We have agreed that, if
required under the U.S.&nbsp;federal securities laws, we will
use our reasonable best efforts to (1)&nbsp;have in effect a
registration statement covering the securities to be delivered
in respect of the purchase contracts being settled and
(2)&nbsp;provide a prospectus in connection therewith, in each
case in a form that may be used in connection with the early
settlement upon a cash merger.
</FONT>

<!-- link2 "Anti-Dilution Adjustments" -->
<DIV align="left"><A NAME="032"></A></DIV>

<P align="left">
<B><FONT size="2">Anti-Dilution Adjustments</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The formula for determining the settlement rate
will be subject to adjustment, without duplication, upon the
occurrence of certain events, including:
</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">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the payment of
    dividends and distributions of Class&nbsp;A common shares on
    Class&nbsp;A common shares;
    </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">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the issuance to
    all holders of Class&nbsp;A common shares of rights, warrants,
    purchase contracts or options, other than pursuant to any
    dividend reinvestment or share purchase plans, entitling them,
    for a period of up to 45&nbsp;days, to subscribe for or purchase
    Class&nbsp;A common shares at less than the current market price
    thereof;
    </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">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;subdivisions,
    splits and combinations of Class&nbsp;A common shares;
    </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">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;distributions to
    all holders of Class&nbsp;A common shares of evidences of our
    indebtedness, shares of capital stock, securities, cash or
    property, excluding any dividend or distribution covered by
    clause&nbsp;(a) or (b) above and any dividend or distribution
    paid exclusively in cash;
    </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">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;distributions,
    other than regular quarterly cash distributions, consisting
    exclusively of cash to all holders of Class&nbsp;A common shares
    in an aggregate amount that, together with (1)&nbsp;other
    all-cash distributions (other than regular quarterly cash
    distributions) made to all holders of Class&nbsp;A common shares
    within the preceding 12&nbsp;months and (2)&nbsp;any cash and
    the fair market value, as of the expiration of the tender or
    exchange offer referred to below, of consideration payable in
    respect of any tender or exchange offer (other than
    consideration payable in respect of any odd-lot tender offer) by
    us or any of our subsidiaries for Class&nbsp;A common shares
    concluded within the preceding 12&nbsp;months, exceeds 15% of
    our aggregate market capitalization (aggregate market
    capitalization being the product of the current market price of
    Class&nbsp;A common shares multiplied by the number of
    Class&nbsp;A common shares then outstanding) on the date of the
    distribution; 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">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the successful
    completion of a tender or exchange offer made by us or any of
    our subsidiaries for Class&nbsp;A common shares which involves
    an aggregate consideration that, together with (1)&nbsp;any cash
    and the fair market value of other consideration payable in
    respect of any tender or exchange offer, other than
    consideration payable in respect of any odd-lot tender offer, by
    us or any of our subsidiaries for the Class&nbsp;A common shares
    concluded within the preceding 12&nbsp;months and (2)&nbsp;the
    aggregate amount of any all-cash distributions, other than
    regular quarterly cash distributions, to all holders of
    Class&nbsp;A common shares within the preceding 12&nbsp;months,
    exceeds 15% of our aggregate market capitalization on the
    expiration of the tender or exchange offer.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The &#147;current market price&#148; per share of
Class&nbsp;A common shares on any day means the average of the
daily closing prices for the five consecutive trading days
selected by us commencing not more than 30 trading days before,
and ending not later than, the earlier of the day in question
and the day before the &#147;ex&nbsp;date&#148; with respect to
the issuance or distribution requiring the computation. For
purposes of this paragraph, the term
</FONT>

<P align="center"><FONT size="2">197
</FONT>

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<DIV align="left">
<FONT size="2">&#147;ex&nbsp;date,&#148; when used with respect
to any issuance or distribution, will mean the first date on
which the Class&nbsp;A common shares trade regular way on the
applicable exchange or in the applicable market without the
right to receive the issuance or distribution.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the case of certain reclassifications (for
example, of common equity securities to non-common equity
securities), consolidations, mergers, sales or transfers of
assets or other transactions pursuant to which the Class&nbsp;A
common shares are converted into the right to receive other
securities, cash or property, which we refer to as a
reorganization event, each purchase contract then outstanding
would, without the consent of the holders of the related PEPS
Unit or Treasury PEPS Unit, as the case may be, become an
obligation to purchase only the kind of securities, cash and
other property receivable upon such reorganization event (except
as otherwise specifically provided, without any interest thereon
and without any right to dividends or distributions thereon that
have a record date that is prior to the purchase contract
settlement date) by a holder of our Class&nbsp;A common shares
prior to the consummation of such reorganization event. The
amount of such securities, cash and other property receivable
upon settlement of a purchase contract after the consummation of
such reorganization event will be based on the value on the
purchase contract settlement date or the early settlement date,
as the case may be, of the exchange property. The &#147;exchange
property&#148; means the hypothetical amount of such securities,
cash and other property that would have been received upon
consummation of the reorganization event in exchange for the
number of Class&nbsp;A common shares deliverable at the maximum
settlement rate immediately prior to the closing date of the
reorganization event. The actual amount of exchange property
receivable on the purchase contract settlement date will be
based on the settlement rate and the applicable market value of
the exchange property at such time. The applicable market value
of the exchange property will be determined (1)&nbsp;with
respect to any publicly traded securities, based on the closing
price of such securities, and (2)&nbsp;with respect to any other
property (other than cash), based on the value of such property,
as determined by a nationally recognized investment banking firm
retained by us for this purpose. The actual amount of exchange
property receivable on the early settlement date pursuant to an
early settlement of the purchase contracts as described under
&#147;&#151;Early Settlement&#148; will be determined based on
the minimum settlement rate applicable on such early settlement
date.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If at any time we make a distribution of property
to our stockholders which would be taxable to the stockholders
as a dividend for United States federal income tax purposes
(i.e., distributions out of our current or accumulated earnings
and profits or distributions of evidences of indebtedness or
assets, but generally not stock dividends or rights to subscribe
for capital stock) and, pursuant to the settlement rate
adjustment provisions of the purchase contract agreement, the
settlement rate is increased, this increase may give rise to a
taxable dividend for United States federal income tax purposes
to holders of PEPS Units or Treasury PEPS Units.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, we may make increases in the
settlement rate as our board of directors deems advisable to
avoid or diminish any income tax to holders of our capital stock
resulting from any dividend or distribution of capital stock, or
rights to acquire capital stock, or from any event treated as
such for income tax purposes or for any other reasons.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Adjustments to the settlement rate will be
calculated to the nearest 1/10,000th of a share. No adjustment
in the settlement rate will be required unless the adjustment
would require an increase or decrease of at least one percent in
the settlement rate. However, any adjustments which are not
required to be made because they would have required an increase
or decrease of less than one percent will be carried forward and
taken into account in any subsequent adjustment.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will be required, within ten business days
following the adjustment to the settlement rate, to provide
written notice to the purchase contract agent of the occurrence
of the adjustment and a statement in reasonable detail setting
forth the method by which the adjustment to the settlement rate
was determined and setting forth the revised settlement rate.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each adjustment to the settlement rate will
result in a corresponding adjustment to the number of
Class&nbsp;A common shares issuable upon early settlement of a
purchase contract. Each adjustment to the settlement rate will
also result in an adjustment to the applicable market value,
solely to determine which of
</FONT>

<P align="center"><FONT size="2">198
</FONT>

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<DIV align="left">
<FONT size="2">the three clauses in the definition of settlement
rate will be applicable on the purchase contract settlement date.
</FONT>
</DIV>

<!-- link2 "Termination" -->
<DIV align="left"><A NAME="033"></A></DIV>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The purchase contracts, and our rights and
obligations and the rights and obligations of the holders of the
PEPS Units and Treasury PEPS Units under the purchase contracts,
including the right and obligation to purchase Class&nbsp;A
common shares, will immediately and automatically terminate upon
the occurrence of certain events of bankruptcy, insolvency or
reorganization with respect to us. The pledge agreement provides
that, upon any termination, the collateral agent will release
the related senior notes, applicable ownership interests in the
Treasury portfolio or Treasury securities, as the case may be,
held by it to the purchase contract agent for distribution to
the holders, subject, in the case of the applicable ownership
interests in the Treasury portfolio and the Treasury securities,
to the purchase contract agent&#146;s disposition of the subject
securities for cash, and the payment of this cash to the
holders, to the extent that the holders would otherwise have
been entitled to receive less than $1,000 principal amount or
interest, as the case may be, at maturity of any such security.
Upon any termination related to a bankruptcy, however, the
release and distribution may be subject to a delay. In the event
that we become the subject of a case under Bermuda&#146;s The
Companies Act 1981 and any subsequent enactments, such delay may
occur as a result of the automatic stay of proceedings against
us and continue until such automatic stay may be lifted.
</FONT>

<!-- link2 "Pledged Securities and Pledge Agreement" -->
<DIV align="left"><A NAME="034"></A></DIV>

<P align="left">
<B><FONT size="2">Pledged Securities and Pledge
Agreement</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Pledged securities will be pledged to the
collateral agent, for our benefit, pursuant to the pledge
agreement to secure the obligations of holders of PEPS Units or
Treasury PEPS Units to purchase Class&nbsp;A common shares under
the related purchase contracts. The rights of holders of PEPS
Units and Treasury PEPS Units to the related pledged securities
will be subject to our security interest created by the pledge
agreement. The pledge agreement provides that if we are entitled
to exercise our rights as a secured party following a failed
marketing, we may retain the pledged securities or dispose of
them, in accordance with applicable law, in full satisfaction of
the secured obligations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">No holder of PEPS Units or Treasury PEPS Units
will be permitted to withdraw the pledged securities related to
the PEPS Units or Treasury PEPS Units from the pledge
arrangement except
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">to substitute Treasury securities for the senior
    notes or applicable ownership interests in the Treasury
    portfolio as provided for under &#147;Description of the PEPS
    Units&#151;Creating Treasury PEPS Units,&#148;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">to substitute senior notes or applicable
    ownership interests in the Treasury portfolio for the related
    Treasury securities, as provided for under &#147;Description of
    the PEPS Units&#151;Recreating PEPS Units,&#148; or
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">upon the termination or early settlement of the
    related purchase contracts.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Subject to the security interest and the terms of
the purchase contract agreement and the pledge agreement, each
holder of PEPS Units, unless the Treasury portfolio has replaced
the senior notes as a component of PEPS Units, will be entitled
through the purchase contract agent and the collateral agent to
all of the proportional rights of the related senior notes,
including voting and redemption rights. Each holder of Treasury
PEPS Units and each holder of PEPS Units, if the Treasury
portfolio has replaced the senior notes as a component of PEPS
Units, will retain beneficial ownership of the related Treasury
securities or the appropriate applicable ownership interests in
the Treasury portfolio, as applicable, pledged in respect of the
related purchase contracts. We will have no interest in the
pledged securities other than our security interest.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Except as described in &#147;Certain Provisions
of the Purchase Contracts, the Purchase Contract Agreement and
the Pledge Agreement&#151;General,&#148; the collateral agent
will, upon receipt of payments, if any, on the pledged
securities, distribute the payments to the purchase contract
agent, which will in turn distribute those payments to the
persons in whose names the related PEPS Units or Treasury PEPS
Units are registered at the close of business on the record date
immediately preceding the date of payment. Notwithstanding the
</FONT>

<P align="center"><FONT size="2">199
</FONT>
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<DIV align="left">
<FONT size="2">foregoing, if cash or other securities are
received in payment of the principal amount of the senior notes,
as a result of acceleration of the senior notes or otherwise,
such cash or other securities with a value not exceeding the
aggregate principal amount of the senior notes which are a
component of the PEPS Units shall remain pledged to the
collateral agent to secure the obligations of the holders under
the purchase contracts.
</FONT>
</DIV>

<!-- link2 "Book-Entry System" -->
<DIV align="left"><A NAME="035"></A></DIV>

<P align="left">
<B><FONT size="2">Book-Entry System</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Depository Trust Company, which we refer to
along with its successors in this capacity as the depositary,
will act as securities depositary for the PEPS Units and the
Treasury PEPS Units. The PEPS Units and the Treasury PEPS Units
will be issued only as fully registered securities registered in
the name of Cede&nbsp;&#38; Co., the depositary&#146;s nominee.
One or more fully registered global security certificates,
representing the total aggregate number of PEPS Units or the
Treasury PEPS Units, will be issued and will be deposited with
the depositary and will bear a legend regarding the restrictions
on exchanges and registration of transfer referred to below.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The laws of some jurisdictions may require that
some purchasers of securities take physical delivery of
securities in definitive form. These laws may impair the ability
to transfer beneficial interests in the PEPS Units or the
Treasury PEPS Units so long as the PEPS Units or the Treasury
PEPS Units are represented by global security certificates.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The depositary is a limited-purpose trust company
organized under the New&nbsp;York Banking Law, a &#147;banking
organization&#148; within the meaning of the New&nbsp;York
Banking Law, a member of the Federal Reserve System, a
&#147;clearing corporation&#148; within the meaning of the
New&nbsp;York Uniform Commercial Code and a &#147;clearing
agency&#148; registered pursuant to the provisions of
Section&nbsp;17A of the Securities Exchange Act of 1934. The
depositary holds securities that its participants deposit with
the depositary. The depositary also facilitates the settlement
among participants of securities transactions, including
transfers and pledges, in deposited securities through
electronic computerized book-entry changes in participants&#146;
accounts, thereby eliminating the need for physical movement of
securities certificates. Direct participants include securities
brokers and dealers, banks, trust companies, clearing
corporations and certain other organizations. The depositary is
owned by a number of its direct participants and by the
New&nbsp;York Stock Exchange, the American Stock Exchange, Inc.,
and the National Association of Securities Dealers, Inc. Access
to the depositary&#146;s system is also available to others,
including securities brokers and dealers, banks and trust
companies that clear transactions through or maintain a direct
or indirect custodial relationship with a direct participant
either directly, or indirectly. The rules applicable to the
depositary and its participants are on file with the SEC.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the event that
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the depositary notifies us that it is unwilling
    or unable to continue as a depositary for the global security
    certificates and no successor depositary has been appointed
    within 90&nbsp;days after this notice,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the depositary at any time ceases to be a
    clearing agency registered under the Securities Exchange Act of
    1934 when the depositary is required to be so registered to act
    as the depositary and no successor depositary has been appointed
    within 90&nbsp;days after we learn that the depositary has
    ceased to be so registered,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">a default under the purchase contract agreement
    or the indenture for the senior notes has occurred and is
    continuing, or
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">we, in our sole discretion, determine that the
    global security certificates shall be so exchangeable,
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">certificates for the PEPS Units or the Treasury
PEPS Units will be printed and delivered in exchange for
beneficial interests in the global security certificates. Any
global PEPS Unit or Treasury PEPS Unit that is exchangeable
pursuant to the preceding sentence will be exchangeable for PEPS
Unit or Treasury PEPS Unit certificates registered in the names
directed by the depositary. We expect that these instructions
will be based upon directions received by the depositary from
its participants with respect to ownership of beneficial
interests in the global security certificates.
</FONT>

<P align="center"><FONT size="2">200
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As long as the depositary or its nominee is the
registered owner of the global security certificates, the
depositary or its nominee, as the case may be, will be
considered the sole owner and holder of the global security
certificates and all PEPS Units or Treasury PEPS Units
represented by these certificates for all purposes under the
PEPS Units or the Treasury PEPS Units and the purchase contract
agreement. Except in the limited circumstances referred to
above, owners of beneficial interests in global security
certificates
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">will not be entitled to have such global security
    certificates or the PEPS Units or the Treasury PEPS Units
    represented by these certificates registered in their names,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">will not receive or be entitled to receive
    physical delivery of PEPS Unit or Treasury PEPS Units
    certificates in exchange for beneficial interests in global
    security certificates, and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">will not be considered to be owners or holders of
    the global security certificates or any PEPS Units or Treasury
    PEPS Units represented by these certificates for any purpose
    under the PEPS Units or the Treasury PEPS Units or the purchase
    contract agreement.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">All payments on the PEPS Units or the Treasury
PEPS Units represented by the global security certificates and
all transfers and deliveries of related senior notes, applicable
ownership interests in the Treasury portfolio, Treasury
securities and Class&nbsp;A common shares will be made to the
depositary or its nominee, as the case may be, as the holder of
the securities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Ownership of beneficial interests in the global
security certificates will be limited to participants or persons
that may hold beneficial interests through institutions that
have accounts with the depositary or its nominee. Ownership of
beneficial interests in global security certificates will be
shown only on, and the transfer of those ownership interests
will be effected only through, records maintained by the
depositary or its nominee, with respect to participants&#146;
interests, or any participant, with respect to interests of
persons held by the participant on their behalf. Procedures for
settlement of purchase contracts on the purchase contract
settlement date or upon early settlement will be governed by
arrangements among the depositary, participants and persons that
may hold beneficial interests through participants designed to
permit settlement without the physical movement of certificates.
Payments, transfers, deliveries, exchanges and other matters
relating to beneficial interests in global security certificates
may be subject to various policies and procedures adopted by the
depositary from time to time. None of us, Monday Finance SA,
Monday SCA, the purchase contract agent or any agent of ours, or
the purchase contract agent will have any responsibility or
liability for any aspect of the depositary&#146;s or any
participant&#146;s records relating to, or for payments made on
account of, beneficial interests in global security
certificates, or for maintaining, supervising or reviewing any
of the depositary&#146;s records or any participant&#146;s
records relating to these beneficial ownership interests.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Although the depositary has agreed to the
foregoing procedures in order to facilitate transfer of
interests in the global security certificates among
participants, the depositary is under no obligation to perform
or continue to perform these procedures, and these procedures
may be discontinued at any time. We will not have any
responsibility for the performance by the depositary or its
direct participants or indirect participants under the rules and
procedures governing the depositary.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The information in this section concerning the
depositary and its book-entry system has been obtained from
sources that we believe to be reliable, but we have not
attempted to verify the accuracy of this information.
</FONT>

<P align="center"><FONT size="2">201
</FONT>

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<!-- link2 "CERTAIN PROVISIONS OF THE PURCHASE CONTRACTS, THE PURCHASE CONTRACT AGREEMENT AND THE PLEDGE AGREEMENT" -->
<DIV align="left"><A NAME="036"></A></DIV>

<P align="center">
<B><FONT size="2">CERTAIN PROVISIONS OF THE PURCHASE CONTRACTS,
THE PURCHASE CONTRACT</FONT></B>

<DIV align="center">
<B><FONT size="2">AGREEMENT AND THE PLEDGE AGREEMENT</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In this description, the words &#147;we,&#148;
&#147;us&#148; and &#147;our&#148; refer only to Monday Ltd and
not to any of its subsidiaries.
</FONT>

<!-- link2 "General" -->
<DIV align="left"><A NAME="037"></A></DIV>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Distributions on the PEPS Units will be payable,
purchase contracts, and documents relating to the PEPS Units,
Treasury PEPS Units or purchase contracts, will be settled, and
transfers of the PEPS Units and Treasury PEPS Units will be
registrable at the office of the purchase contract agent in the
Borough of Manhattan, The City of New York. In addition, if the
PEPS Units and the Treasury PEPS Units do not remain in
book-entry form, payment of distributions on the PEPS Units and
the Treasury PEPS Units may be made, at our option, by check
mailed to the address of the person entitled to payment as shown
on the security register or by a wire transfer to the account
designated by such person by a prior written notice.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Class&nbsp;A common shares will be delivered on
the purchase contract settlement date (or earlier upon early
settlement), or, if the purchase contracts have terminated as a
result of our bankruptcy, the related pledged securities will be
delivered potentially after a delay as a result of the
imposition of the automatic stay of proceedings against us (see
&#147;Description of the Purchase
Contracts&#151;Termination&#148;), in each case upon
presentation and surrender of the applicable certificate at the
office of the purchase contract agent.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If a holder of outstanding PEPS Units or Treasury
PEPS Units fails to present and surrender the certificate
evidencing the PEPS Units or Treasury PEPS Units to the purchase
contract agent on the purchase contract settlement date, the
Class&nbsp;A common shares issuable in settlement of the related
purchase contract will be registered in the name of the purchase
contract agent. The shares, together with any distributions,
will be held by the purchase contract agent as agent for the
benefit of the holder until the applicable certificate is
presented and surrendered or the holder provides satisfactory
evidence that the certificate has been destroyed, lost or
stolen, together with any indemnity that may be required by the
purchase contract agent and us.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If the purchase contracts have terminated prior
to the purchase contract settlement date, the related pledged
securities have been transferred to the purchase contract agent
for distribution to the holders, and a holder fails to present
and surrender the certificate evidencing the holder&#146;s PEPS
Units or Treasury PEPS Units to the purchase contract agent, the
related pledged securities delivered to the purchase contract
agent and payments on the pledged securities will be held by the
purchase contract agent as agent for the benefit of the holder
until the applicable certificate is presented or the holder
provides the evidence and indemnity described above.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The purchase contract agent will have no
obligation to invest or to pay interest on any amounts held by
the purchase contract agent pending distribution, as described
above.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">No service charge will be made for any
registration of transfer or exchange of the PEPS Units or
Treasury PEPS Units, except for any tax or other governmental
charge that may be imposed in connection with a transfer or
exchange.
</FONT>

<!-- link2 "Modification" -->
<DIV align="left"><A NAME="038"></A></DIV>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">With certain exceptions contained in the purchase
contract agreement and the pledge agreement for modifications
that are not adverse to holders, the purchase contract agreement
and the pledge agreement will contain provisions permitting us
and the purchase contract agent or collateral agent, as the case
may be, with the consent of the holders of not less than a
majority of the purchase contracts at the time outstanding,
including consent obtained in connection with a tender or
exchange offer, to modify the terms of the purchase contracts,
the purchase contract agreement or the pledge agreement.
However, no such modification may, without the consent of the
holder of each outstanding purchase contract affected by the
modification,
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">change any payment date,
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">202
</FONT>

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<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">change the amount or type of pledged securities
    related to the purchase contract, impair the right of the holder
    of any pledged securities to receive distributions on the
    pledged securities or otherwise adversely affect the
    holder&#146;s rights in or to the pledged securities,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">impair the right to institute suit for the
    enforcement of the purchase contract,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">reduce the number of Class&nbsp;A common shares
    purchasable under the purchase contract, increase the price to
    purchase Class&nbsp;A common shares upon settlement of the
    purchase contract, change the purchase contract settlement date
    or the right to early settlement or otherwise adversely affect
    the holder&#146;s rights under the purchase contract or
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">reduce the above-stated percentage of outstanding
    purchase contracts the consent of the holders of which is
    required for the modification or amendment of the provisions of
    the purchase contracts, the purchase contract agreement or the
    pledge agreement.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If any amendment or proposal referred to above
would adversely affect only the PEPS Units or the Treasury PEPS
Units, then only the affected class of holders will be entitled
to vote on the amendment or proposal, and the amendment or
proposal will not be effective except with the consent of the
holders of not less than a majority of the affected class or of
all of the holders of the affected classes, as applicable.
</FONT>

<!-- link2 "No Consent to Assumption" -->
<DIV align="left"><A NAME="039"></A></DIV>

<P align="left">
<B><FONT size="2">No Consent to Assumption</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each holder of PEPS Units or Treasury PEPS Units,
by acceptance of these securities, will under the terms of the
purchase contract agreement and the PEPS Units or Treasury PEPS
Units, as applicable, be deemed expressly to have withheld any
consent to the assumption (i.e., affirmance) of the related
purchase contracts by us or our trustee if we become the subject
of a case under the U.S. Bankruptcy Code or other similar U.S.
state or federal law providing for reorganization or liquidation.
</FONT>

<!-- link2 "Consolidation, Amalgamation, Merger, Sale or Conveyance" -->
<DIV align="left"><A NAME="040"></A></DIV>

<P align="left">
<B><FONT size="2">Consolidation, Amalgamation, Merger, Sale or
Conveyance</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We will covenant in the purchase contract
agreement that we will not merge with and into, amalgamate with,
consolidate with or convert into any other entity or sell,
assign, transfer, lease or convey all or substantially all of
our properties and assets to any person or entity, unless
(1)&nbsp;the successor entity expressly assumes our obligations
under the purchase contracts, the purchase contract agreement,
the pledge agreement and the remarketing agreement and
(2)&nbsp;the successor entity is not, immediately after the
merger, amalgamation, consolidation, conversion, sale,
assignment, transfer, lease or conveyance, in default of its
payment obligations under the purchase contracts, the purchase
contract agreement, the pledge agreement and the remarketing
agreement or in material default in the performance of any other
covenants under these agreements.
</FONT>

<!-- link2 "Title" -->
<DIV align="left"><A NAME="041"></A></DIV>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We, the purchase contract agent and the
collateral agent may treat the registered owner of any PEPS
Units or Treasury PEPS Units as the absolute owner of the PEPS
Units or Treasury PEPS Units for the purpose of making payment
and settling the related purchase contracts and for all other
purposes.
</FONT>

<!-- link2 "Replacement of PEPS Unit or Treasury PEPS Unit Certificates" -->
<DIV align="left"><A NAME="042"></A></DIV>

<P align="left">
<B><FONT size="2">Replacement of PEPS Unit or Treasury PEPS Unit
Certificates</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the event that physical certificates have been
issued, any mutilated PEPS Unit or Treasury PEPS Unit
certificate will be replaced by us at the expense of the holder
upon surrender of the certificate to the purchase contract
agent. PEPS Unit or Treasury PEPS Unit certificates that become
destroyed, lost or stolen will be replaced by us at the expense
of the holder upon delivery to us and the purchase contract
agent of evidence of their destruction, loss or theft
satisfactory to us and the purchase contract agent. In the case
of a destroyed, lost or stolen PEPS Unit certificate, an
indemnity satisfactory to the purchase contract agent and us may
be required at the expense of the holder of the PEPS Units or
Treasury PEPS Units evidenced by the certificate before a
replacement will be issued.
</FONT>

<P align="center"><FONT size="2">203
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Notwithstanding the foregoing, we will not be
obligated to issue any PEPS Unit or Treasury PEPS Unit
certificates on or after the business day immediately preceding
the purchase contract settlement date (or after early
settlement) or after the purchase contracts have terminated. The
purchase contract agreement will provide that, in lieu of the
delivery of a replacement PEPS Unit or Treasury PEPS Unit
certificate following the purchase contract settlement date, the
purchase contract agent, upon delivery of the evidence and
indemnity described above, will deliver the Class&nbsp;A common
shares issuable pursuant to the purchase contracts included in
the PEPS Units or Treasury PEPS Units evidenced by the
certificate, or, if the purchase contracts have terminated prior
to the purchase contract settlement date, transfer the pledged
securities included in the PEPS Units or Treasury PEPS Units
evidenced by the certificate.
</FONT>

<!-- link2 "Governing Law" -->
<DIV align="left"><A NAME="043"></A></DIV>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The purchase contract agreement, the pledge
agreement and the purchase contracts will be governed by, and
construed in accordance with, the laws of the State of New York.
</FONT>

<!-- link2 "Information Concerning the Purchase Contract Agent" -->
<DIV align="left"><A NAME="044"></A></DIV>

<P align="left">
<B><FONT size="2">Information Concerning the Purchase Contract
Agent</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Bank of New York will be the purchase
contract agent. The purchase contract agent will act as the
agent for the holders of PEPS Units and Treasury PEPS Units from
time to time. The purchase contract agreement will not obligate
the purchase contract agent to exercise any discretionary
actions in connection with a default under the terms of the PEPS
Units and Treasury PEPS Units or the purchase contract agreement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The purchase contract agreement will contain
provisions limiting the liability of the purchase contract
agent. The purchase contract agreement will contain provisions
under which the purchase contract agent may resign or be
replaced. This resignation or replacement would be effective
upon the acceptance of appointment by a successor selected by us.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Bank of New York maintains commercial banking
relationships with us.
</FONT>

<!-- link2 "Information Concerning the Collateral Agent" -->
<DIV align="left"><A NAME="045"></A></DIV>

<P align="left">
<B><FONT size="2">Information Concerning the Collateral
Agent</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Bank of New York will be the collateral
agent. The collateral agent will act solely as our agent and
will not assume any obligation or relationship of agency or
trust for or with any of the holders of the PEPS Units or
Treasury PEPS Units except for the obligations owed by a pledge
of property to the owner of the property under the pledge
agreement and applicable law.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The pledge agreement will contain provisions
limiting the liability of the collateral agent. The pledge
agreement will contain provisions under which the collateral
agent may resign or be replaced. This resignation or replacement
would be effective upon the acceptance of appointment by a
successor selected by us.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Since The Bank of New York is serving as both the
collateral agent and the purchase contract agent, if an event of
default, except an event of default occurring as a result of a
failed remarketing occurs under the purchase contract agreement
or the pledge agreement, The Bank of New York will resign as the
collateral agent, but remain as the purchase contract agent. We
will then select a new collateral agent in accordance with the
terms of the pledge agreement.
</FONT>

<P align="center"><FONT size="2">204
</FONT>

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<!-- link2 "DESCRIPTION OF THE SENIOR NOTES" -->
<DIV align="left"><A NAME="046"></A></DIV>

<P align="center">
<B><FONT size="2">DESCRIPTION OF THE SENIOR NOTES</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following description is a summary of the
terms of the senior notes due 2008 issued by Monday Finance SA
and guaranteed by Monday SCA. The senior notes will be issued
under an indenture dated as of the date of the original issuance
of the PEPS Units and qualified under the Trust Indenture Act,
which we refer to as the senior note indenture. The Bank of New
York will act as the indenture trustee. The terms of the senior
note indenture will be those provided in the senior note
indenture and those made part of the senior note indenture by
the Trust Indenture Act.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The descriptions in this prospectus contain a
description of certain terms of the senior notes and the senior
note indenture but do not purport to be complete, and reference
is hereby made to the senior note indenture and the form of
senior note that are or will be filed as exhibits to the
registration statement of which this prospectus forms a part and
to the Trust Indenture Act.
</FONT>

<!-- link2 "General" -->
<DIV align="left"><A NAME="047"></A></DIV>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The senior notes will be Monday Finance SA&#146;s
direct, unsecured unsubordinated obligations and will rank
without preference or priority among themselves and equally with
all of Monday Finance SA&#146;s existing and future unsecured
unsubordinated indebtedness.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The senior notes initially will be issued in an
aggregate principal amount equal to $400&nbsp;million. If the
over-allotment option is exercised in full by the underwriters
an additional $60&nbsp;million aggregate principal amount of
senior notes will be issued. The senior note indenture does not
limit the incurrence or issuance of other secured or unsecured
debt by Monday Finance SA or Monday SCA, including secured
indebtedness.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The senior notes will not be subject to a sinking
fund provision. Unless a special event redemption occurs, the
entire principal amount of the senior notes will mature and
become due and payable, together with any accrued and unpaid
interest or additional amounts thereon,
on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2008.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Senior notes forming a part of PEPS Units will be
issued in certificated form in denominations of $25 or integral
multiples of $25 and may be transferred or exchanged at the
offices described below. Payments on senior notes issued as a
global security will be made to the depositary, a successor
depositary or, in the case that no depositary is used, to a
paying agent for the senior notes. Principal, interest and
additional amounts with respect to certificated notes will be
payable, the transfer of the senior notes will be registrable
and senior notes will be exchangeable for senior notes of other
denominations of a like aggregate principal amount, at the
corporate trust office or agency of the trustee in New York, New
York. However, at our option, payment of interest may be made by
check mailed to the address of the entitled holder or by wire
transfer to an account appropriately designated by the entitled
holder.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The senior note indenture does not contain
provisions that afford holders of the senior notes protection in
the event Monday Finance SA or Monday SCA is involved in a
highly leveraged transaction or other similar transaction that
may adversely affect such holders.
</FONT>

<!-- link2 "Guarantees" -->
<DIV align="left"><A NAME="048"></A></DIV>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Monday SCA will absolutely, irrevocably and
unconditionally guarantee Monday Finance SA&#146;s obligation to
pay principal, interest, additional amounts, if any, and
premium, if any, when due on the senior notes, including the
payment of the put price. The guarantee of each senior note by
Monday SCA will be its direct, unsecured unsubordinated
obligation and will rank without preference or priority among
all such guarantees and equally with all of Monday SCA&#146;s
existing and future unsecured unsubordinated indebtedness.
Because Monday SCA is a holding company with no independent
operations, its ability to meet its obligations is dependent
upon the performance of its subsidiaries and their ability to
transfer funds to Monday SCA. Therefore, the guarantees are
effectively subordinated to debt and preferred stock incurred or
issued by Monday SCA&#146;s subsidiaries, as well as to
liabilities of Monday SCA secured by assets of Monday SCA, to
the extent of the value of those assets. The senior note
indenture does not limit the amount of debt or preferred stock
that Monday SCA or its subsidiaries may incur or issue or
prohibit the creation of liens on their respective assets.
</FONT>

<P align="center"><FONT size="2">205
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the senior note indenture, Monday SCA will
waive its right to require that the indenture trustee or the
holders of senior notes exhaust their remedies against Monday
Finance SA prior to bringing suit against Monday SCA under the
guarantees. The guarantees are a guarantee of payment when due,
which means that the holder of the senior notes, as a guaranteed
party, may institute a legal proceeding directly against Monday
SCA to enforce its rights under the senior note indenture and
the guarantees without first instituting a legal proceeding
against any other person or entity. The guarantees are not a
guarantee of collection.
</FONT>

<!-- link2 "Interest" -->
<DIV align="left"><A NAME="049"></A></DIV>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each senior note will bear interest initially at
the rate of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% per year from the
original issuance date, payable quarterly in arrears
on &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;&nbsp;&nbsp;&nbsp;, &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of
each year,
commencing &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2002. Following a successful remarketing, interest on the senior
notes will be payable semi-annually in arrears on
each &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
commencing &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2007 (the date six months following the purchase contract
settlement date). Interest will be payable by check or wire
transfer to the person in whose name the senior note is
registered at the close of business on the first day of the
month in which the interest payment date falls.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The applicable interest rate on the senior notes
will be reset on the reset date to the reset rate described
below under &#147;&#151;Market Rate Reset.&#148; The reset date
will be the date of a successful remarketing of the senior notes
as described above under &#147;Description of the Purchase
Contracts&#151;Remarketing.&#148; The reset rate will become
effective on the reset effective date, which is three business
days immediately following the reset date. If there is not a
successful remarketing of the senior notes, the interest rate on
the senior notes will not be reset and interest will continue to
be paid quarterly.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The amount of interest payable on the senior
notes for any period will be computed (1)&nbsp;for any full
quarterly or semi-annual period on the basis of a 360-day year
of twelve 30-day months and (2)&nbsp;for any period shorter than
a full quarterly period, or, upon a successful remarketing, a
full semi-annual period, on the basis of a 30-day month and, for
any period less than a month, on the basis of the actual number
of days elapsed per 30-day month. In the event that any date on
which interest is payable on the senior notes is not a business
day, then payment of the interest payable on such date will be
made on the next day that is a business day (and without any
interest or other payment in respect of any such delay), except
that, if such business day is in the next calendar year, then
such payment will be made on the preceding business day.
</FONT>

<!-- link2 "Market Rate Reset" -->
<DIV align="left"><A NAME="050"></A></DIV>

<P align="left">
<B><FONT size="2">Market Rate Reset</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The reset rate will be equal to the rate that is
sufficient to allow a successful remarketing of the notes and
will be determined by the remarketing agent as the rate the
senior notes should bear in order to have an approximate market
value of 100.25%, but not less than 100%, of their principal
amount. The reset rate may not exceed the maximum rate, if any,
permitted by applicable law.
</FONT>

<!-- link2 "Optional Remarketing" -->
<DIV align="left"><A NAME="051"></A></DIV>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On or prior to the fifth business day preceding
the purchase contract settlement date, holders of senior notes
that are not part of PEPS Units may elect to have their senior
notes remarketed in the same manner as senior notes that are
part of PEPS Units by delivering their senior notes along with a
notice of this election to the custodial agent designated by us.
The custodial agent will hold the senior notes in an account
separate from the collateral account in which the pledged senior
notes are held. Holders of senior notes electing to have their
senior notes remarketed will also have the right to withdraw
their election on or prior to the fifth business day immediately
preceding the purchase contract settlement date. The proceeds of
the remarketing of senior notes that are not part of PEPS Units
will be paid to holders in cash, after deduction, to the extent
permissible, of the remarketing fee. See &#147;Description of
the Purchase Contracts&#151;Remarketing.&#148;
</FONT>

<!-- link2 "Put Option upon a Failed Remarketing" -->
<DIV align="left"><A NAME="052"></A></DIV>

<P align="left">
<B><FONT size="2">Put Option upon a Failed Remarketing</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If the remarketing of the senior notes has
resulted in a failed remarketing, holders of senior notes that
are not part of PEPS Units will have the right to put the senior
notes to Monday Finance SA
on &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006
</FONT>

<P align="center"><FONT size="2">206
</FONT>

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<DIV align="left">
<FONT size="2">(the date six weeks following the purchase
contract settlement date), upon at least three business
days&#146; prior notice, at a price equal to $25 per senior
note, plus accrued and unpaid interest and additional amounts,
if any. The payment of the put price is guaranteed by Monday
SCA. See &#147;&#151;&nbsp;Guarantees.&#148;
</FONT>
</DIV>

<!-- link2 "Payment of Additional Amounts on the Senior Notes" -->
<DIV align="left"><A NAME="053"></A></DIV>

<P align="left">
<B><FONT size="2">Payment of Additional Amounts on the Senior
Notes</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Monday Finance SA will make all payments on the
senior notes, including the put price, and Monday SCA will make
any payments pursuant to the guarantee of the senior notes, in
each case without withholding or deduction at source for, or on
account of, any present or future taxes, fees, duties,
assessments or governmental charges of whatever nature imposed
or levied by or on behalf of the jurisdiction in which it is
organized (a &#147;taxing jurisdiction&#148;) or any political
subdivision or taxing authority thereof or therein, unless such
taxes, fees, duties, assessments or governmental charges are
required to be withheld or deducted by (x)&nbsp;the laws, or any
regulations or rulings promulgated thereunder, of a taxing
jurisdiction or any political subdivision or taxing authority
thereof or therein or (y)&nbsp;an official position regarding
the application, administration, interpretation or enforcement
of any such laws, regulations or rulings, including, without
limitation, a holding by a court of competent jurisdiction or by
a taxing authority in a taxing jurisdiction or any political
subdivision thereof. Monday Finance SA and Monday SCA are
organized under the laws of Luxembourg.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If a withholding or deduction by Monday Finance
SA or Monday SCA, as the case may be, is required by the law of
a taxing jurisdiction, Monday Finance SA will, subject to
certain limitations and exceptions described below, pay to the
holder of any senior note such additional amounts as may be
necessary so that every net payment made to such holder in
respect thereof, after the withholding or deduction, will not be
less than the amount provided for in the senior note or the
senior note indenture to be then due and payable.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Notwithstanding the foregoing, Monday Finance SA
and Monday SCA will not be required to pay any additional
amounts to a holder of a senior note for or on account of:
</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;&nbsp;&nbsp;&nbsp;&nbsp;any tax, fee,
    duty, assessment or governmental charge of whatever nature which
    would not have been imposed but for the fact that such holder
    (a)&nbsp;was a resident, domiciliary or national of, or engaged
    in business or maintained a permanent establishment or was
    physically present in, the relevant taxing jurisdiction or any
    political subdivision thereof or otherwise had some connection
    with the relevant taxing jurisdiction other than by reason of
    the mere ownership of, or receipt of payment under, such senior
    note, (b)&nbsp;presented such senior note for payment in the
    relevant taxing jurisdiction or any political subdivision
    thereof, unless such senior note could not have been presented
    for payment elsewhere, or (c)&nbsp;presented such senior note
    for payment more than 30&nbsp;days after the date on which the
    payment in respect of such senior note became due and payable or
    provided for, whichever is later, except to the extent that the
    holder would have been entitled to such additional amounts if it
    had presented such senior note for payment on any day within
    that 30-day period;
    </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;&nbsp;&nbsp;&nbsp;&nbsp;any estate,
    inheritance, gift, sale, transfer, personal property or similar
    tax, assessment or other governmental charge;
    </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">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any tax,
    assessment or other governmental charge that is imposed or
    withheld by reason of the failure by the holder or the
    beneficial owner of such senior note to comply with any
    reasonable request by us addressed to the holder within
    90&nbsp;days of such request (a)&nbsp;to provide information
    concerning the nationality, residence or identity of the holder
    or such beneficial owner or (b)&nbsp;to make any declaration or
    other similar claim or satisfy any information or reporting
    requirement, which is required or imposed by statute, treaty,
    regulation or administrative practice of the relevant taxing
    jurisdiction or any political subdivision thereof as a
    precondition to exemption from all or part of such tax,
    assessment or other governmental charge; or
    </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">(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any combination
    of items (1), (2)&nbsp;and (3).
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">In addition, Monday Finance SA and Monday SCA
will not pay additional amounts with respect to any payment of
any amounts on any such senior note to any holder who is a
fiduciary or partnership or other than the sole beneficial owner
of such senior note to the extent such payment would be required
by the laws of the
</FONT>

<P align="center"><FONT size="2">207
</FONT>

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

<DIV align="left">
<FONT size="2">relevant taxing jurisdiction, or any political
subdivision or relevant taxing authority thereof or therein, to
be included in the income for tax purposes of a beneficiary or
partner or settlor with respect to such fiduciary or a member of
such partnership or a beneficial owner who would not have been
entitled to such additional amounts had it been the holder of
the senior note.
</FONT>
</DIV>

<!-- link2 "Optional Redemption--Special Events" -->
<DIV align="left"><A NAME="054"></A></DIV>

<P align="left">
<B><FONT size="2">Optional Redemption&#151;Special
Events</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If a tax event or accounting event, each as
defined below and collectively referred to as &#147;special
events,&#148; occurs and is continuing, Monday Finance SA may
redeem, at its option, the senior notes in whole, but not in
part, at a price equal to, for each senior note, the redemption
amount, as defined below, plus any overdue unpaid interest and
any additional amounts, which we refer to collectively as the
&#147;redemption price,&#148; thereon to the date of redemption,
which we refer to as the special event redemption date. We refer
to Monday Finance SA&#146;s redemption of the senior notes on
the special event redemption date as a special event redemption.
If a special event redemption occurs prior to the purchase
contract settlement date, the redemption price payable in
respect of the senior notes that are a component of PEPS Units
will be distributed to the collateral agent, which in turn will
apply an amount equal to the redemption amount of such
redemption price to purchase the Treasury portfolio and remit
the remaining portion, if any, of such redemption price to the
purchase contract agent for payment to the holders of the PEPS
Units. The Treasury portfolio will be substituted for the senior
notes and the applicable ownership interests therein will be
pledged to the collateral agent for our benefit to secure PEPS
Unit holders&#146; obligations to purchase the Class&nbsp;A
common shares under the related purchase contracts. The
redemption price will be paid directly to holders of senior
notes that are not part of PEPS Units. If a special event
redemption occurs after the purchase contract settlement date,
the Treasury portfolio will not be purchased and the proceeds
will be paid directly to holders of senior notes.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&#147;Accounting event&#148; means our
independent auditors have determined that, as a result of a
change in accounting rules after the date of issuance of the
senior notes, we must either (1)&nbsp;account for the purchase
contract as a derivative under SFAS 133 or (2)&nbsp;account for
the PEPS Units using the if-converted method under SFAS 128, and
that such accounting treatment will cease to apply upon
redemption of the senior notes.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&#147;Tax event&#148; means the receipt by Monday
Finance SA of an opinion of counsel, rendered by a law firm
having an internationally recognized Luxembourg tax practice, to
the effect that, as a result of any amendment to, change in or
announced proposed change in the laws, or any regulations
thereunder, of Luxembourg or any political subdivision or taxing
authority thereof or therein, or as a result of any official
administrative decision, pronouncement, judicial decision or
action interpreting or applying such laws or regulations, which
amendment or change is enacted or promulgated or which proposed
change, pronouncement, action or decision is announced on or
after the date of issuance of the senior notes, there is more
than an insubstantial increase in the risk that Monday Finance
SA or Monday SCA will be required to pay any additional amount
on the senior notes as set forth under &#147;&#151;Payment of
Additional Amounts on the Senior Notes,&#148; or (2)&nbsp;Monday
Finance SA, or Monday SCA, is, or within 90&nbsp;days of the
date of such opinion will be, subject to more than a de minimis
amount of other taxes, duties or other governmental charges in
connection with any payment pursuant to the senior notes or the
guarantee of the senior notes.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&#147;Redemption amount&#148; means, for each
senior note, (1)&nbsp;prior to the purchase contract settlement
date, the product of the principal amount of such senior note
and a fraction, the numerator of which is the treasury portfolio
purchase price, as defined below, and the denominator of which
is the applicable principal amount, as defined below, and
(2)&nbsp;on or after the purchase contract settlement date, the
principal amount of such senior note.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&#147;Treasury portfolio purchase price&#148;
means the lowest aggregate price quoted by a primary
U.S.&nbsp;government securities dealer in New York City, a
&#147;primary treasury dealer&#148;, to the quotation agent, as
defined below, on the third business day preceding the special
event redemption date for the purchase of the Treasury portfolio
for settlement on the special event redemption date.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&#147;Applicable principal amount&#148; means
either (1)&nbsp;if the special event redemption date occurs
prior to the purchase contract settlement date, the aggregate
principal amount of the senior notes that are part of the
</FONT>

<P align="center"><FONT size="2">208
</FONT>
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<DIV align="left">
<FONT size="2">PEPS Units on the special event redemption date
or (2)&nbsp;if the special event redemption date occurs on or
after the purchase contract settlement date, the aggregate
principal amount of the senior notes outstanding on the special
event redemption date.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&#147;Treasury portfolio&#148; means, with
respect to the applicable principal amount of senior notes, a
portfolio of zero-coupon U.S.&nbsp;treasury securities
consisting of (1)&nbsp;principal or interest strips of
U.S.&nbsp;treasury securities that mature on or prior to the
business day immediately preceding the purchase contract
settlement date in an aggregate amount at maturity equal to the
applicable principal amount and (2)&nbsp;with respect to each
scheduled interest payment date on the senior notes that occurs
after the special event redemption date, principal or interest
strips of U.S.&nbsp;treasury securities that mature on or prior
to the business day immediately preceding that payment date in
an aggregate amount at maturity equal to the aggregate interest
payment that would be due on the applicable principal amount of
the senior notes on that payment date.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">&#147;Quotation agent&#148; means (1)&nbsp;Morgan
Stanley&nbsp;&#38; Co. Incorporated and its respective
successors, provided that if Morgan Stanley&nbsp;&#38; Co.
Incorporated ceases to be a primary treasury dealer, we will
substitute another primary treasury dealer therefor, or
(2)&nbsp;any other primary treasury dealer selected by us.
</FONT>

<!-- link2 "Events of Default" -->
<DIV align="left"><A NAME="055"></A></DIV>

<P align="left">
<B><FONT size="2">Events of Default</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If any event of default shall occur and be
continuing, the trustee will have the right to declare the
principal of and the interest on the senior notes, and any other
amounts payable under the senior note indenture, to be due and
payable and to enforce the other rights of the holders as
creditors with respect to the senior notes.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following are events of default under the
senior note indenture:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">failure to pay interest or additional amounts on
    the senior notes when due, continued for a period of
    30&nbsp;days;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">failure to pay the principal or premium, if any,
    of the senior notes when due and payable;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">failure to pay the put price of the senior notes
    when due;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">failure to comply, within 90&nbsp;days after
    notice provided in accordance with the terms of the senior note
    indenture, with its other obligations under the senior note
    indenture; and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">certain events of bankruptcy, insolvency or
    reorganization relating to Monday Finance SA or Monday SCA
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If an event of default occurs and is continuing
with respect to the senior notes, the trustee or the holders of
at least 25% in principal amount of the outstanding senior notes
may declare the principal of and accumulated but unpaid interest
on all the senior notes to be due and payable. Upon such a
declaration, such principal and interest shall be due and
payable immediately. Notwithstanding the foregoing, if an event
of default relating to specific events of Monday Finance
SA&#146;s or Monday SCA&#146;s bankruptcy, insolvency or
reorganization occurs and is continuing, the principal of and
interest on all the senior notes will become and be immediately
due and payable without any declaration or other act on the part
of the trustee or any holders of the senior notes. Under some
circumstances, the holders of a majority in principal amount of
the then-outstanding senior notes may rescind any acceleration
and its consequences.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Subject to the provisions of the senior note
indenture relating to the duties of the trustee, if an event of
default occurs and is continuing, the trustee will be under no
obligation to exercise any of its rights or powers under the
senior note indenture at the request or direction of any of the
holders of the senior notes, unless those holders have offered
to the trustee indemnity or security satisfactory to it against
any loss, liability or
</FONT>

<P align="center"><FONT size="2">209
</FONT>

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<DIV align="left">
<FONT size="2">expense. Except to enforce the right to receive
payment of principal or interest when due, no senior note holder
may pursue any remedy with respect to the senior note indenture
or the senior notes unless:
</FONT>
</DIV>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">that holder has previously given the trustee
    notice that an event of default is continuing;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">holders of at least 25% in principal amount of
    the outstanding senior notes have requested in writing the
    trustee to pursue the remedy;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">those holders have offered the trustee security
    and indemnity reasonably satisfactory to it against any loss,
    liability or expense;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the trustee has not complied with such request
    within 60&nbsp;days of receiving it with an offer of security
    and indemnity; and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the holders of a majority in principal amount of
    the outstanding senior notes have not given the trustee a
    direction inconsistent with such request within such 60-day
    period.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Subject to some restrictions, the holders of a
majority in principal amount of the outstanding senior notes are
given the right to direct the time, method and place of
conducting any proceeding for any remedy available to the
trustee, or of exercising any trust or power conferred on the
trustee. The trustee, however, may refuse to follow any
direction that conflicts with law or the senior note indenture
or that the trustee determines is unduly prejudicial to the
rights of any other senior note holder, or that would involve
the trustee in personal liability.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The senior note indenture provides that if a
default occurs and is continuing with respect to the senior
notes and is known to the trustee, the trustee must mail notice
of the default within 90&nbsp;days after it becomes known to the
trustee to each holder of the senior notes. Except in the case
of a default in the payment of principal of or interest on any
senior note, the trustee may withhold notice if and so long as a
committee of its trust officers determines that withholding
notice is in the interests of the holders of the senior notes.
In addition, Monday Finance SA must deliver to the trustee,
within 120&nbsp;days after the end of each fiscal year, an
officer&#146;s certificate indicating whether the signers
thereof know of any default that occurred during the previous
year. Monday Finance SA also is required to deliver to the
trustee, within 30&nbsp;days after its occurrence, written
notice of any events which would constitute certain defaults,
their status and what action Monday Finance SA is taking or
propose to take.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Prior to the acceleration of the maturity of the
senior notes, the holders of a majority in aggregate principal
amount of the then-outstanding senior notes may on behalf of the
holders of all the senior notes waive any past default or event
of default, except:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">a default in the payment of the principal of or
    interest on any of the senior notes; and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">a default that cannot be waived without the
    consent of every holder of the senior notes.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A waiver will serve to end such default, to cure
any event of default, and to restore Monday Finance SA, the
trustee and holders of the affected senior notes to their former
positions and rights. No such waiver will extend to any
subsequent or other default.
</FONT>

<!-- link2 "Consolidation, Merger and Sale of Assets" -->
<DIV align="left"><A NAME="056"></A></DIV>

<P align="left">
<B><FONT size="2">Consolidation, Merger and Sale of
Assets</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each of Monday Finance SA and Monday SCA may not
(a)&nbsp;merge with or into or consolidate with any other
entity, or (b)&nbsp;sell, assign, transfer, lease or convey all
or substantially all of its properties and assets to any person,
firm or corporation, and no person shall merge with or into or
consolidate with Monday Finance SA or Monday SCA, unless:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Monday Finance SA or Monday SCA is the surviving
    person, or in case Monday Finance SA or Monday SCA merges with
    or into or consolidates with another entity or sells, assigns,
    transfers, leases or conveys all or substantially all of its
    properties and assets to any person, firm or corporation, the
    successor entity expressly assumes the obligations of Monday
    Finance SA or Monday SCA, as the case may be, under the senior
    notes, the guarantees, or the senior note indenture, as the case
    may be, and
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">210
</FONT>

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

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">immediately after giving effect thereto, no event
    of default, and no event which, after notice or lapse of time or
    both, would become an event of default, shall have occurred and
    be continuing.
    </FONT></TD>
</TR>

</TABLE>

<!-- link2 "Agreement by Purchasers of Certain Tax Treatment" -->
<DIV align="left"><A NAME="057"></A></DIV>

<P align="left">
<B><FONT size="2">Agreement by Purchasers of Certain Tax
Treatment</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each senior note will provide that, by acceptance
of the senior note, the holder thereof intends that the senior
note constitutes debt and agrees to treat it as debt for United
States federal, state and local tax purposes.
</FONT>

<!-- link2 "Book-Entry and Settlement" -->
<DIV align="left"><A NAME="058"></A></DIV>

<P align="left">
<B><FONT size="2">Book-Entry and Settlement</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Senior notes that are released from the pledge
following substitution or settlement of the purchase contracts
will be issued in the form of one or more global certificates,
which we refer to as global securities, registered in the name
of the depositary or its nominee. Except under the limited
circumstances described below, senior notes represented by the
global securities will not be exchangeable for, and will not
otherwise be issuable as, senior notes in certificated form. The
global securities described above may not be transferred except
by the depositary to a nominee of the depositary or by a nominee
of the depositary to the depositary or another nominee of the
depositary or to a successor depositary or its nominee.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The laws of some jurisdictions may require that
certain purchasers of securities take physical delivery of the
securities in certificated form. These laws may impair the
ability to transfer beneficial interests in such a global
security.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Except as provided below, owners of beneficial
interests in such a global security will not be entitled to
receive physical delivery of senior notes in certificated form
and will not be considered the holders (as defined in the senior
note indenture) thereof for any purpose under the senior note
indenture, and no global security representing senior notes
shall be exchangeable, except for another global security of
like denomination and tenor to be registered in the name of the
depositary or its nominee or a successor depositary or its
nominee. Accordingly, each beneficial owner must rely on the
procedures of the depositary or if such person is not a
participant, on the procedures of the participant through which
such person owns its interest to exercise any rights of a holder
under the senior note indenture.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the event that
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the depositary notifies Monday Finance SA that it
    is unwilling or unable to continue as a depositary for the
    global security certificates and no successor depositary has
    been appointed within 90&nbsp;days after this notice,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the depositary at any time ceases to be a
    clearing agency registered under the Securities Exchange Act at
    which time the depositary is required to be so registered to act
    as the depositary and no successor depositary has been appointed
    within 90&nbsp;days after we learn that the depositary has
    ceased to be so registered,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Monday Finance SA, in its sole discretion,
    determines that the global security certificates shall be so
    exchangeable or
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">an event of default under the senior note
    indenture has occurred and is continuing,
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">certificates for the senior notes will be printed
and delivered in exchange for beneficial interests in the global
security certificates. Any global security that is exchangeable
pursuant to the preceding sentence shall be exchangeable for
senior note certificates registered in the names directed by the
depositary. We expect that these instructions will be based upon
directions received by the depositary from its participants with
respect to ownership of beneficial interests in the global
security certificates.
</FONT>

<P align="center"><FONT size="2">211
</FONT>

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<!-- link1 "DESCRIPTION OF SHARE CAPITAL" -->
<DIV align="left"><A NAME="059"></A></DIV>

<P align="center">
<B><FONT size="2">DESCRIPTION OF SHARE CAPITAL</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In this section, the words &#147;we,&#148;
&#147;us&#148; and &#147;our&#148; refer only to Monday&nbsp;Ltd
and not to any of its subsidiaries.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following information reflects our memorandum
of association and bye-laws as these documents will be in effect
upon closing of the concurrent offerings.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our authorized share capital is divided into:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">2,000,000,000 Class&nbsp;A common shares, par
    value $.0001 per share,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">2,000,000,000 Class&nbsp;X common shares, par
    value $.0001 per share, and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">1,000,000,000 preferred shares, including
    Series&nbsp;A Junior Preferred Shares.
    </FONT></TD>
</TR>

</TABLE>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Immediately following the closing of the
concurrent offerings, assuming no exercise of the
underwriters&#146; over-allotment option and no redemption of
Monday SCA Class&nbsp;I common shares or exchange of
exchangeable shares issued by one of Monday SCA&#146;s
subsidiaries, we will have approximately &nbsp;&nbsp;million
Class&nbsp;A common shares outstanding, not including
approximately &nbsp;&nbsp;million restricted Class&nbsp;A common
shares and Class&nbsp;A common shares underlying fully-vested
restricted share units, and approximately &nbsp;&nbsp;million
Class&nbsp;X common shares outstanding.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Voting</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Holders of our Class&nbsp;A common shares, other
than PricewaterhouseCoopers firms, and holders of our
Class&nbsp;X common shares are entitled to one vote per share
held of record on the election of directors and on all matters
submitted to a vote of shareholders at which they are present in
person or by proxy. Upon the transfer of our Class&nbsp;A common
shares held by PricewaterhouseCoopers firms, these shares will
have full voting rights. Holders of our Class&nbsp;A common
shares and Class&nbsp;X common shares do not have cumulative
voting rights in the election of directors.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Class&nbsp;X
Rights</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each Monday SCA Class&nbsp;I common share and
each exchangeable share of one of Monday SCA&#146;s subsidiaries
will be issued together with a right to acquire one Class&nbsp;X
common share for the par value of that share, which will be
nominal. This right will be exercisable by any holder that is
not a PricewaterhouseCoopers firm. The rights will be
transferable only together with the Monday SCA Class&nbsp;I
common shares or exchangeable shares of one of Monday SCA&#146;s
subsidiaries in respect of which they were originally issued.
The rights will be exercised automatically upon issuance or
transfer to any person that is not a PricewaterhouseCoopers firm.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Redemption
of Class&nbsp;X Shares</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We may, at our option, redeem at any time any
Class&nbsp;X common share for a redemption price equal to the
par value of the Class&nbsp;X common share, and we may cancel a
right to acquire a Class&nbsp;X common share at any time without
compensation. We will agree, however, with each holder of
Class&nbsp;X common shares or a right to acquire a Class&nbsp;X
common share not to redeem any Class&nbsp;X common share of a
holder or cancel any right to acquire a Class&nbsp;X common
share if the redemption or cancellation would reduce the number
of Class&nbsp;X common shares or rights to acquire Class&nbsp;X
common shares held by that holder to a number that is less than
the number of Monday SCA Class&nbsp;I common shares and
exchangeable shares of one of Monday SCA&#146;s subsidiaries
held by that holder. It is our intention to redeem Class&nbsp;X
common shares from time to time so that the aggregate number of
outstanding Class&nbsp;X common shares does not exceed the
aggregate
</FONT>

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</FONT>
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<DIV align="left">
<FONT size="2">number of outstanding Monday SCA Class&nbsp;I
common shares and exchangeable shares of Monday SCA&#146;s
subsidiaries held by any person other than us or one of our
subsidiaries.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Dividends</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each Class&nbsp;A common share is entitled to a
pro rata part of a dividend, if any, at the times and in the
amounts which our board of directors from time to time
determines to declare, subject to any preferred dividend rights
attaching to any preferred shares. Class&nbsp;X common shares
are not entitled to dividends.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Liquidation
Rights</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each Class&nbsp;A common share is entitled on our
liquidation to be paid a pro rata part of the value of our
assets remaining after payment of our liabilities, subject to
any preferred rights on liquidation attaching to any preferred
shares. Class&nbsp;X common shares are not entitled to be paid
any amount upon our liquidation.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>No
Pre-emptive Rights</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Holders of our Class&nbsp;A common shares and
Class&nbsp;X common shares have no pre-emptive rights.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Transfer</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Class&nbsp;A common shares are, subject to the
restrictions and requirements described in this prospectus,
transferable by their holders. Class&nbsp;X common shares are
transferable by their holders only with our consent. Please read
&#147;Arrangements with the PricewaterhouseCoopers Network of
Firms&#151;Shareholders Agreement&#148; and &#147;Arrangements
with Our Partners&#151;Monday Ltd Voting Agreement&#148; for a
description of the transfer restrictions that apply to our
Class&nbsp;A common shares and Class&nbsp;X common shares.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are authorized to issue 1,000,000,000
preferred shares. Our board of directors has the authority to
issue the preferred shares in one or more series and to fix the
rights, preferences, privileges and restrictions attaching to
those shares including dividend rights, conversion rights,
voting rights, redemption terms and prices, liquidation
preferences and the numbers of shares constituting any series
and the designation of any series, without further vote or
action by our shareholders. None of our preferred shares will be
outstanding upon closing of the concurrent offerings.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Any series of preferred shares could, as
determined by our board of directors at the time of issuance,
rank senior to our Class&nbsp;A common shares and Class&nbsp;X
common shares with respect to dividends, voting rights,
redemption and liquidation rights. These preferred shares are of
the type commonly known as blank-check preferred shares.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We believe that the ability of our board of
directors to issue one or more series of our preferred shares
will provide us with flexibility in structuring possible future
financings and acquisitions and in meeting other corporate needs
which might arise. Our authorized preferred shares, as well as
our Class A common shares and Class&nbsp;X common shares will be
available for issuance without further action by our
shareholders, unless such action is required by applicable law
or the rules of any stock exchange or automated quotation system
on which our securities may be listed or traded. The New York
Stock Exchange currently requires shareholder approval as a
prerequisite to listing shares in several instances, including
where the present or potential issuance of shares could result
in an increase of at least 20% in the total number of
Class&nbsp;A common shares and Class&nbsp;X common shares
combined, or in the amount of voting securities, outstanding. If
the approval of our shareholders is not required for the
issuance of our preferred shares or our Class&nbsp;A common
shares and Class&nbsp;X common shares, our board of directors
may determine not to seek shareholder approval.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Although our board of directors has no intention
at the present time of doing so, it could issue a series of our
preferred shares that could, depending on the terms of such
series, impede the completion of a merger, amalgamation, tender
offer or other takeover attempt. Our board of directors will
make any determination to issue such shares based on its
judgment as to the best interests of us. Our board of directors,
in so acting, could
</FONT>

<P align="center"><FONT size="2">213
</FONT>

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<DIV align="left">
<FONT size="2">issue our preferred shares having terms that
could discourage an acquisition attempt through which an
acquiror may be able to change the composition of our board of
directors, including a tender offer or other transaction that
some, or a majority, of our shareholders might believe to be in
their best interests or in which shareholders might receive a
premium for their shares over the then current market price of
such shares.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Series&nbsp;A
Junior Preferred Shares</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Upon completion of the concurrent offerings, our
Series&nbsp;A Junior Preferred Shares will be reserved for issue
upon exercise of rights under our rights agreement. For a more
detailed discussion of our rights agreement and our
Series&nbsp;A Junior Preferred Shares please see
&#147;&#151;Rights Agreement&#148; below.
</FONT>

<P align="left">
<B><FONT size="2">Anti-takeover Effects of Provisions of Our
Bye-Laws</FONT></B>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Board
of Directors</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Upon completion of the concurrent offerings, our
bye-laws will provide for the division of our board into three
classes, as nearly equal in number as possible, with one class
to be originally elected for a term expiring at the annual
general meeting of shareholders to be held in 2003, another
class to be originally elected for a term expiring at the annual
general meeting of shareholders to be held in 2004 and the final
class to be originally elected for a term expiring at the annual
general meeting of shareholders to be held in 2005. Each
director will hold office until his or her successor is duly
elected and qualified. Commencing with the 2003 annual general
meeting of shareholders, directors elected to succeed directors
whose terms then expire will be elected for a term of three
years.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our bye-laws provide that any vacancy on our
board of directors created from an increase in the number of
directors or resulting from death, resignation,
disqualification, removal or other cause will be filled only by
the affirmative vote of a majority of the remaining directors,
so long as they constitute a quorum, and not by the
shareholders. Any directors elected will hold office for the
remainder of the full term of the class of directors in which
the vacancy occurred and until the director&#146;s successor is
duly elected and qualified. No decrease in the number of
directors constituting our board of directors will shorten the
term of any incumbent director. Our bye-laws provide that
directors may be removed only for cause by the affirmative vote
of the holders of at least a majority of the voting power of all
voting shares then outstanding, voting together as a single
class.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">These provisions would preclude a third party
from removing incumbent directors and simultaneously gaining
control of our board of directors by filling the vacancies
created by removal with its own nominees. Under the classified
board provisions described above, it would take at least two
elections of directors for any individual or group to gain
control of our board of directors. Accordingly, these provisions
could discourage a third party from initiating a proxy contest,
making a tender offer or otherwise attempting to gain control of
us.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Advance
Notice Procedures for Nominating Directors by
Shareholders</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our bye-laws establish an advance notice
procedure for shareholders to make a nomination of candidates
for election as directors. Our shareholder notice procedure
provides that only persons who are nominated by, or at the
direction of, our board of directors, or in the case of an
annual general meeting by a shareholder who has given timely
written notice to our secretary prior to the meeting, at which
directors are to be elected, will be eligible for election as
our directors. Under our shareholder notice procedure, for
notice of shareholder nominations to be made at an annual
general meeting to be timely, such notice must be received by
our secretary not earlier than 120&nbsp;days and not later than
90&nbsp;days before the first anniversary of the preceding
year&#146;s annual general meeting, except that, if the date of
the annual general meeting is more than 30&nbsp;days before or
more than 70&nbsp;days after such anniversary date, then for a
notice by the shareholder to be timely it must be so delivered
not earlier than 120&nbsp;days prior to the annual general
meeting and not later than the later of the 90&nbsp;days prior
to the annual general meeting and 10&nbsp;days after the date
the annual general meeting is announced by us.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, under our shareholder notice
procedure, a shareholder&#146;s notice to us nominating a person
for election as a director must contain the information required
by our bye-laws. If the chairman of a meeting
</FONT>

<P align="center"><FONT size="2">214
</FONT>

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<DIV align="left">
<FONT size="2">determines that an individual was not nominated
in accordance with our shareholder notice procedure, the
individual will not be eligible for election as a director.
</FONT>
</DIV>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amendment</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our bye-laws provide that the affirmative vote of
the holders of at least two-thirds of our voting shares then
outstanding, voting together as a single class, is required to
amend provisions of the bye-laws relating to the number,
election and term of our directors, the nomination of director
candidates, the filling of vacancies and the removal of
directors, the rights plan, the ability of our board of
directors to issue preferred shares and the shareholder vote
required for business combinations.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our board of directors currently expects to adopt
a rights agreement
with &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
as rights agent, on or prior to the closing of the concurrent
Class&nbsp;A common shares offering. The rights agreement will
be filed as an exhibit to the registration statement of which
this prospectus forms a part. For information on how to receive
a copy of the rights agreement, please see &#147;Where You Can
Find More Information.&#148;
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anti-takeover
Effects</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The rights under the rights agreement may have
anti-takeover effects. If the rights become exercisable, the
rights will cause substantial dilution to a person or group that
attempts to acquire or merge with us in most cases. Accordingly,
the existence of rights may deter a potential acquiror from
making a takeover proposal or tender offer. The rights should
not interfere with any merger or other business combination
approved by our board of directors since we may redeem the
rights as described below and since a transaction approved by
our board of directors would not cause the rights to become
exercisable.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exercisability
of Rights</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the rights agreement, a right would attach
to each Class&nbsp;A common share and Class&nbsp;X common share
outstanding and, when exercisable, entitles the registered
holder to purchase from us one one-thousandth of one share of
Series&nbsp;A Junior Preferred Shares, par value $0.0001 per
share, at an initial purchase price of $100, subject to
customary antidilution adjustments. For a description of the
terms of our Series&nbsp;A Junior Preferred Shares, see
&#147;Series&nbsp;A Junior Preferred Shares&#148; below. For the
purposes of the rights agreement, an acquiring person is
generally a person or group besides our company who is the
beneficial owner of:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">15% or more of the Class&nbsp;A common shares
    then outstanding or
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">our common shares which have the right to cast
    15% or more of the votes that may be cast by all such shares
    outstanding for the election of directors of our company.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">For purposes of this test, we will not attribute
to any person beneficial ownership of shares held by others
solely as a result of the shareholders agreement, voting
agreement or transfer rights agreement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The rights will not become exercisable until the
earliest of:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the time we learn that a person or group has
    become an acquiring person and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the date, if any, as may be designated by our
    board of directors following the commencement of, or the
    announcement of an intention to commence, a tender offer or
    exchange offer that would result in a person or group becoming
    an acquiring person.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Additionally, at any time a person or a group has
become an acquiring person, the flip-in or flip-over features of
the rights or, at the discretion of our board of directors, the
exchange features of the rights, may be exercised by any holder,
except for such person or group.
</FONT>

<P align="center"><FONT size="2">215
</FONT>

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<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Flip
In&#148; Feature</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the event a person or group becomes an
acquiring person, each holder of a right, except for such person
or group, will have the right to acquire, upon exercise of the
right, instead of one one-thousandth of a Series&nbsp;A Junior
Preferred Share, our Series&nbsp;A Junior Preferred Shares
having a value equal to twice the exercise price of the right,
in which case our board of directors may elect to issue our
Class&nbsp;A common shares in lieu of our Series&nbsp;A Junior
Preferred Shares. For example, assuming that the initial
purchase price of $100 is in effect on the date that the flip-in
feature of the right is exercised and the board of directors
elects to issue Class A common shares, any holder of a right,
except for the acquiring person, can exercise his or her right
by paying us $100 in order to receive from us Class&nbsp;A
common shares having a value equal to $200.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exchange
Feature</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At any time after a person or group becomes an
acquiring person, but is the beneficial owner of less than 50%,
of our Class&nbsp;A common shares then outstanding, our board of
directors may, at its option, exchange all or some of the
rights, except for those held by such person or group, for
consideration per right consisting of one-half of the securities
that would be issuable upon exercise of the right, subject to
adjustment, and cash instead of fractional shares, if any. Use
of this exchange feature means that eligible rights holders
would not have to pay a purchase price before receiving our
Class&nbsp;A common shares.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Flip
Over&#148; Feature</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the event we are acquired in a merger,
amalgamation or other business combination transaction or 50% or
more of our assets or our earning power and our subsidiaries,
taken as a whole, are sold, each holder of a right, except for
the acquiring person, will have the right to receive, upon
exercise of the right, the number of shares of the acquiring
company&#146;s capital common shares having a value equal to
twice the exercise price of the right.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Redemption
of Rights</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At any time before a person becomes an acquiring
person, our board of directors may redeem all of the outstanding
rights at a nominal redemption price, subject to adjustment. The
right to exercise the rights, as described under
&#147;&#151;Exercisability of Rights,&#148; will terminate upon
action of the board of directors ordering redemption, and at
such time, the holders of the rights will have the right to
receive only the redemption price for each right held.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amendment
of Rights</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At any time before a person or group becomes an
acquiring person, the terms of the existing rights agreement may
be amended by our board of directors without the consent of the
holders of the rights.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">At any time after a person or group becomes an
acquiring person, however, our board of directors may not adopt
amendments to the existing rights agreement without the consent
of the holders of the rights that would be adversely affected by
the amendment. Furthermore, once the rights are no longer
redeemable, our board of directors may not adopt any amendment
that would cause the rights again to be redeemable.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Termination
of Rights</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If not previously exercised, the rights will
expire 10&nbsp;years from the date that the rights agreement
commences, unless we earlier redeem or exchange the rights or
extend the final expiration date.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Enforceability
of Rights Agreement</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Although a number of companies incorporated in
Bermuda have adopted rights agreements having the same effect as
our rights agreement, the enforceability of the provisions of
such rights agreements have not been definitively tested in the
Bermuda courts. Therefore, there is no assurance that a holder
of Class&nbsp;A
</FONT>

<P align="center"><FONT size="2">216
</FONT>

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<DIV align="left">
<FONT size="2">common shares or Class&nbsp;X common shares or
the Company could enforce the exercisability of those rights as
described above under &#147;&#151;Rights Agreement.&#148;
</FONT>
</DIV>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Series&nbsp;A
Junior Preferred Shares</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In connection with the creation of the rights, as
described above, our board of directors will authorize the
issuance of Series&nbsp;A Junior Preferred Shares.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have designed the dividend, liquidation,
voting and redemption features of our Series&nbsp;A Junior
Preferred Shares so that the value of one one-thousandth of a
share of our Series&nbsp;A Junior Preferred Shares approximates
the value of one share of our Class&nbsp;A common shares.
Series&nbsp;A Junior Preferred Shares may only be purchased
after the rights have become exercisable, and each Series&nbsp;A
Junior Preferred Share:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">is nonredeemable and junior to all other series
    of preferred shares, unless otherwise provided in the terms of
    those series of preferred shares,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">will have a preferential dividend in an amount
    equal to the greater of $1.00 or 1,000 times any dividend
    declared on each Class&nbsp;A common share,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">in the event of liquidation, will entitle its
    holder to receive a preferred liquidation payment equal to 1,000
    times the payment made per Class&nbsp;A common share,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">will have 1,000 votes, voting together with our
    Class&nbsp;A common shares and our Class&nbsp;X common shares
    and any other share capital with general voting rights, and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">in the event of any merger, consolidation or
    other transaction in which Class&nbsp;A common shares are
    converted or exchanged, will be entitled to receive 1,000 times
    the amount and type of consideration received per Class&nbsp;A
    common share.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The rights of our Series&nbsp;A Junior Preferred
Shares as to dividends, liquidation and voting, and in the event
of mergers and consolidations, are protected by customary
antidilution provisions.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We are an exempted company organized under the
Companies Act 1981 of Bermuda. The rights of our shareholders
including those persons who will become shareholders in
connection with this offering, are governed by Bermuda law and
our memorandum of association and bye-laws. The Companies Act
1981 of Bermuda may differ in some material respects from laws
generally applicable to United States corporations and their
shareholders. The following is a summary of the material
provisions of Bermuda law and our organizational documents.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign
Exchange Controls</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have been designated by the Bermuda Monetary
Authority as a non-resident for Bermuda exchange control
purposes. This designation allows us to engage in transactions
in currencies other than the Bermuda dollar, and there are no
restrictions on our ability to transfer funds, other than funds
denominated in Bermuda dollars, in and out of Bermuda or to pay
dividends to non-Bermuda residents who are holders of our
Class&nbsp;A common shares.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfer
of Common Shares to Residents of Bermuda</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The terms of the consent from the Bermuda
Monetary Authority under the Bermuda Exchange Control Act 1972
relating to the issue and transferability of our Class&nbsp;A
common shares restrict the issue and transfer of our shares to
and between persons who are residents of Bermuda for purposes of
the Bermuda Exchange Control Act 1972 such that residents of
Bermuda may not own more than 20% in aggregate of our shares.
</FONT>

<P align="center"><FONT size="2">217
</FONT>

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<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Bermuda law, a company may pay dividends
that are declared from time to time by its board of directors
unless there are reasonable grounds for believing that the
company is or would, after payment, be unable to pay its
liabilities as they become due or that the realizable value of
its assets would as a result be less than the aggregate of its
liabilities and issued share capital and share premium accounts.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Voting
Rights</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Bermuda law, except as otherwise provided
in the Companies Act 1981 of Bermuda or our bye-laws, questions
brought before a general meeting of shareholders are decided by
a majority vote of shareholders present in person or by proxy at
the meeting. Our bye-laws provide that, subject to the
provisions of the Companies Act 1981 of Bermuda, any question
proposed for the consideration of the shareholders will be
decided by a simple majority of the votes cast, except in the
case of removal of directors for cause, where a majority of the
votes outstanding is required and amendments to some provisions
of our bye-laws, where a two-thirds majority of the votes
outstanding may be required. A description of the voting rights
attaching to our Class&nbsp;A common shares and Class&nbsp;X
common shares is set out above under &#147;&#151;Common
Shares&#151;Voting.&#148;
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Written
Resolution of Shareholders Only by Unanimous Written
Consent</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Bermuda law any action required or
permitted to be taken by our shareholders may only be taken by
written resolution with the consent in writing of all our
shareholders.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Rights
in Liquidation</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Bermuda law, in the event of a liquidation
or winding up of a company, after satisfaction in full of all
claims and creditors and subject to the preferential rights
accorded to any series of preferred shares and subject to any
specific provisions of the company&#146;s bye-laws, the proceeds
of the liquidation or winding up are distributed pro rata among
the holders of common shares. Our Class&nbsp;X common shares,
however, will not be entitled to distribution rights.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Meetings
of Shareholders</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Bermuda law, a company is required to
convene at least one shareholders&#146; meeting each calendar
year. Bermuda law provides that a special general meeting may be
called by the board of directors and must be called upon the
request of shareholders holding not less than 10% of the paid-up
share capital of the company carrying the right to vote. Bermuda
law also requires that shareholders be given at least five
days&#146; advance notice of a general meeting, but the
accidental omission to give notice to any person does not
invalidate the proceedings at a meeting. Under our bye-laws, we
must give each shareholder at least 60&nbsp;days&#146; notice of
the annual general meeting and at least 60&nbsp;days&#146;
notice of any special general meeting. In addition, our bye-laws
provide that prior to any vote by the shareholders, the board
must provide sufficient notice and information to our partners
committee in order to ensure that the partners can conduct their
preliminary vote as provided for in the voting agreement. A
description of the voting agreement is set out under
&#147;Arrangements With Our Partners&#151; Monday Ltd Voting
Agreement.&#148;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Bermuda law, the number of shareholders
constituting a quorum at any general meeting of shareholders is
determined by the bye-laws of a company. Our bye-laws provide
that the presence in person or by proxy of two or more
shareholders entitled to attend and vote and holding shares
representing more than 50% of the voting power constitutes a
quorum.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Shareholder
Proposals</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Bermuda law, a shareholder or shareholders
who hold not less than 5% of the total outstanding voting rights
or number not less than 100 shareholders may requisition the
Company to send to shareholders entitled to receive notice of
the next annual general meeting, at the cost of the
requisitionists, notice of any
</FONT>

<P align="center"><FONT size="2">218
</FONT>

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<DIV align="left">
<FONT size="2">resolution which may properly be moved together
with a statement of not more than one thousand words with
respect to the matter referred to in any proposed resolution or
business to be dealt with at that meeting. The company is only
bound to circulate such a requisition if it is received at the
registered office of the company, in the case of a requisition
requiring notice of a resolution, not less than six weeks before
the meeting and in the case of any other requisition, not less
than one week before the meeting.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Access
to Books and Records and Dissemination of
Information</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Members of the general public have the right to
inspect the public documents of a company available at the
office of the Registrar of Companies in Bermuda. These documents
include a company&#146;s memorandum of association, including
its objects and powers, and most alterations to its memorandum
of association. The shareholders have the additional right to
inspect the bye-laws of the company, minutes of general meetings
and the company&#146;s audited financial statements, which must
be presented at the annual general meeting. The register of
shareholders of a company is also open to inspection by
shareholders without charge and by members of the general public
on the payment of a fee. A company is required to maintain its
share register in Bermuda but may, subject to the provisions of
Bermuda law, establish a branch register outside Bermuda. We
maintain our principal share register in Hamilton, Bermuda. A
company is required to keep at its registered office a register
of its directors and officers that is open for inspection for
not less than two hours each day by members of the public
without charge. Bermuda law does not, however, provide a general
right for shareholders to inspect or obtain copies of any other
corporate records.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Board
of Director Actions</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Bermuda law, the directors of a Bermuda
company owe their fiduciary duty principally to the company
rather than the shareholders. Our bye-laws provide that some
actions are required to be approved by our board of directors.
Actions must be approved by a majority of the votes present and
entitled to be cast at a properly convened meeting of our board
of directors.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under our bye-laws and as permitted by Bermuda
law, each shareholder has waived any claim or right of action
against our directors and officers on account of any action
taken by them in the performance of their duties, except for
actions involving fraud and dishonesty. In addition, we have
agreed to indemnify our directors and officers for all liability
and expenses they may incur in the performance of their duties,
except to the extent that such liability is imposed for actions
involving fraud or dishonesty.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Amendment
of Memorandum of Association and Bye-Laws</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Bermuda law provides that the memorandum of
association of a company may be amended by a resolution passed
at a general meeting of shareholders of which due notice has
been given. An amendment to the memorandum of association, other
than an amendment that alters or reduces a company&#146;s share
capital or a change of name, also requires the approval of the
Bermuda Minister of Finance, who may grant or withhold approval
at his or her discretion. Our bye-laws may be amended by our
board of directors if the amendment is approved by shareholders
by a resolution passed by the holders of a majority of the votes
cast, except in limited instances, where the approval of a
resolution requires the approval of holders of not less than
two-thirds of the voting power.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Bermuda law, the holders of an aggregate of
not less than 20% in par value of a company&#146;s issued share
capital of any class of issued share capital have the right to
apply to the Bermuda Court for an annulment of any amendment of
the memorandum of association adopted by shareholders at any
general meeting, other than an amendment that alters or reduces
a company&#146;s share capital or a change of name as provided
in the Companies Act 1981 of Bermuda. Where an application is
made, the amendment becomes effective only to the extent that it
is confirmed by the Bermuda Court. An application for the
annulment of an amendment of the memorandum of association must
be made within 21&nbsp;days after the date on which the
resolution altering the company&#146;s memorandum of association
is passed and may be made on behalf of the persons entitled to
make the application by one or more of their number as they may
appoint in writing for the purpose. No application may be made
by persons voting in favor of the amendment.
</FONT>

<P align="center"><FONT size="2">219
</FONT>

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<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Appraisal
Rights and Shareholder Suits</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Bermuda law, in the event of an
amalgamation of a Bermuda company with another company, a
shareholder of the Bermuda company who is not satisfied that
fair value has been offered for his or her shares in the Bermuda
company may apply to the Bermuda Court to appraise the fair
value of his or her shares. Under Bermuda law and our bye-laws,
an amalgamation by us with another company would require the
amalgamation agreement be approved by our board of directors and
by resolution of our shareholders.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Class actions and derivative actions are
generally not available to shareholders under Bermuda law. The
Bermuda Court, however, would ordinarily be expected to permit a
shareholder to commence an action in the name of a company to
remedy a wrong done to the company where the act complained of
is alleged to be beyond the corporate power of the company or is
illegal or would result in violation of the company&#146;s
memorandum of association or bye-laws. Furthermore,
consideration would be given by the Bermuda Court to acts that
are alleged to constitute a fraud against the minority
shareholders or, for instance, where an act requires the
approval of a greater percentage of the company&#146;s
shareholders than that which actually approved it.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">When the affairs of a company are being conducted
in a manner oppressive or prejudicial to the interests of some
part of the shareholders, one or more shareholders may apply to
the Bermuda Court, which may make an order as it sees fit,
including an order regulating the conduct of the company&#146;s
affairs in the future or ordering the purchase of the shares of
any shareholder, by other shareholders or by the company.
</FONT>

<P align="left">
<B><FONT size="2">Transfer Agent and Registrar</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Mellon Investor Services LLC will serve as
transfer agent and branch registrar for our Class&nbsp;A common
shares in the United States. &nbsp;will serve as transfer agent
and principal registrar for our Class&nbsp;A common shares in
Bermuda.
</FONT>

<P align="left">
<B><FONT size="2">New York Stock Exchange Listing</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have applied to have our Class&nbsp;A common
shares listed on the New York Stock Exchange under the symbol
&#147;MN.&#148;
</FONT>

<P align="left">
<B><FONT size="2">Description of Monday SCA Common
Shares</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following information reflects the articles
of incorporation of Monday SCA as this document will be in
effect upon closing of the concurrent offerings.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>General</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The authorized share capital of Monday SCA is
divided into:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="3%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Class&nbsp;I
    common shares, par value
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">1 Class&nbsp;II Series&nbsp;I common share, par
    value
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share, and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">&#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">228 Class&nbsp;II Series&nbsp;II through
    Series&nbsp;XX common shares, par value
    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per
    share, with twelve authorized shares for each of the 19 series.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Class&nbsp;I common shares represent limited
partnership interests in Monday SCA. Class&nbsp;II
Series&nbsp;II through Series XX common shares also represent
limited partnership interests in Monday SCA but have the right
to be redeemed as described below. Upon closing of the
concurrent offerings, we will own all issued and outstanding
Class&nbsp;II Series&nbsp;II through Series&nbsp;XX common
shares. The Class&nbsp;II Series&nbsp;I common share represents
a general partnership interest and must be owned by the manager
of Monday SCA. Upon closing of this offering, we will own the
only Class&nbsp;II Series&nbsp;I common share. Additionally, for
all purposes under Luxembourg law and the Monday SCA articles of
incorporation, any Class&nbsp;I common shares owned by us will
be treated as Class&nbsp;II Series&nbsp;I common shares, except
for purposes of share transfers and redemptions.
</FONT>

<P align="center"><FONT size="2">220
</FONT>

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<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Voting</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Every holder of Class&nbsp;I common shares and
Class&nbsp;II common shares is entitled to one vote per share at
a meeting of shareholders. Under the articles of incorporation
of Monday SCA, shareholders may only vote on matters that
Luxembourg law requires be submitted to shareholders.
Additionally, we, as manager of Monday SCA, must consent to any
matter put to a shareholder vote.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Dividends and
Class&nbsp;II Common Share Redemptions</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Holders of Class&nbsp;I common shares and
Class&nbsp;II common shares, with our consent, will determine
the aggregate amount of dividends that will be paid to
shareholders in respect of a financial year. Under Luxembourg
law, 5% of the annual net profits of Monday SCA must be
allocated to a reserve, until the reserve equals 10% of the
subscribed capital. Once the shareholders have determined the
total amount of dividends that will be paid, each Class&nbsp;I
common share entitles its holder to an equal part of 95% of the
dividend amount and each Class&nbsp;II common share entitles its
holder to an equal part of 5% of the dividend amount. In
addition, each Class&nbsp;II Series&nbsp;II through
Series&nbsp;XX common share can be redeemed for cash. A general
meeting of the shareholders, with the consent of the manager,
will determine the maximum redemption amount for which a single
series of Class&nbsp;II Series&nbsp;II through Series&nbsp;XX
common shares can be redeemed in respect of a financial year.
The redemption amount for Class&nbsp;II Series&nbsp;II through
Series&nbsp;XX common shares depends upon the aggregate dividend
amount. Accordingly, the holders of Class&nbsp;II Series&nbsp;II
through Series&nbsp;XX common shares will be entitled to
redemption payments only if dividends are paid to holders of
Class&nbsp;I common shares.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Redemption of
Class&nbsp;I Shares</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Subject to contractual restrictions, holders of
Class&nbsp;I common shares, at any time beginning six months
after the closing of the concurrent Class&nbsp;A common shares
offering, may require Monday SCA to redeem their Class&nbsp;I
common shares upon 30&nbsp;days notice. Monday SCA may redeem
Class&nbsp;I common shares for cash or, at its option, for our
Class&nbsp;A common shares. At any time following a request for
redemption, we may intervene and directly exchange our
Class&nbsp;A common shares for Class&nbsp;I common shares. Both
a redemption of Class&nbsp;I common shares for Class&nbsp;A
common shares or a direct exchange of these shares will be made
on a one-for-one basis, subject to adjustment to take into
account general dilutive measures, such as share splits of
Class&nbsp;A common shares.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Liquidation
Rights</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Each Class&nbsp;I common share and Class&nbsp;II
common share entitles its holder, on liquidation of Monday SCA,
to an equal part of the value of the assets remaining after
payment of all debts and charges against Monday SCA.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Preemptive
Rights</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under Luxembourg law, holders of Class&nbsp;I
common shares and Class&nbsp;II common shares are entitled to
preemptive rights. Under the articles of incorporation for
Monday SCA, however, we, as manager, have the right to remove
the preemptive rights on shares issued under the authorized
share capital for a period of five years. This authorization may
be renewed by a general meeting of shareholders.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Transfer</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Class&nbsp;I common shares are, subject to the
restrictions and requirements described in this prospectus,
transferable by their holders. Class&nbsp;II Series&nbsp;II
through Series&nbsp;XX common shares are freely transferable.
The Class&nbsp;II Series&nbsp;I common share is only
transferable if the transfer is approved by the supervisory
board of Monday SCA and two-thirds of the common shares voted at
a general meeting of shareholders.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Change of
Control Call</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the event that we undergo a change of control,
we will have the right to acquire all Class&nbsp;I common shares
for a price equal to the fair market value of the Class&nbsp;I
common shares, either by paying cash or by delivery of our
Class&nbsp;A common shares.
</FONT>

<P align="center"><FONT size="2">221
</FONT>

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<!-- link1 "SHARES ELIGIBLE FOR FUTURE SALE" -->
<DIV align="left"><A NAME="060"></A></DIV>

<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">Prior to the closing of the concurrent
Class&nbsp;A common shares offering, there will have been no
public market for our Class&nbsp;A common shares. Although we
expect to have our Class&nbsp;A common shares approved for
listing on the New York Stock Exchange, we cannot assure you
that there will be an active public market for our Class&nbsp;A
common shares. Sales of substantial amounts of our Class&nbsp;A
common shares, or the perception of these sales, may adversely
affect the price of our Class&nbsp;A common shares and impede
our ability to raise capital through the issuance of equity
securities in the future. Upon the completion of the concurrent
Class&nbsp;A common shares offering, assuming no exercise of the
underwriters&#146; over-allotment option, we will have
approximately &nbsp;&nbsp;million Class&nbsp;A common shares
outstanding, not including approximately &nbsp;&nbsp;million
restricted Class&nbsp;A common shares and Class&nbsp;A common
shares underlying restricted share units. Holders of Monday SCA
Class&nbsp;I common shares will have the right to require Monday
SCA to redeem their shares, which redemption may be effected by
delivery of Class&nbsp;A common shares. In addition,
exchangeable shares issued by one of Monday&nbsp;SCA&#146;s
subsidiaries may be exchanged for our Class&nbsp;A common shares
on a one-for-one basis at the request of the holders of these
exchangeable shares. Of the outstanding number of Class&nbsp;A
common shares, approximately &nbsp;&nbsp;million Class&nbsp;A
common shares to be sold in the concurrent Class&nbsp;A common
shares offering will be freely tradable without restriction or
further registration under the Securities Act of 1933. In
addition, please note the following items.
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Approximately &nbsp;&nbsp;million Class&nbsp;A
    common shares held by or on behalf of our partners will, unless
    these restrictions are waived, be subject to the transfer
    restrictions described under &#147;Arrangements with Our
    Partners&#151;Monday Ltd Voting Agreement&#148; and, unless
    these restrictions are waived, will be subject to the
    underwriters&#146; lock-up described under
    &#147;Underwriters&#148; and will be eligible for resale
    pursuant to Rule&nbsp;144 under the Securities Act after one
    year as described below.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Approximately zero Class&nbsp;A common shares
    held by the PricewaterhouseCoopers network of firms and their
    partners and shareholders will be subject to the transfer
    restrictions described under &#147;Arrangements with the
    PricewaterhouseCoopers Network of Firms&#151;Shareholders
    Agreement&#148; and, unless these restrictions are waived, will
    be subject to the underwriters&#146; lock-up described under
    &#147;Underwriters&#148; and will be eligible for resale
    pursuant to Rule&nbsp;144 under the Securities Act after one
    year as described below. Subject to these restrictions, the
    PricewaterhouseCoopers network of firms will dispose of its
    Class&nbsp;A common shares, including any shares exchangeable
    for our Class&nbsp;A common shares, within five years of the
    closing date of the concurrent Class&nbsp;A common shares
    offering to comply with conditions contained in the proposed SEC
    No-Action Letter described under &#147;Auditor Independence
    Rules, the Enron Situation and the Proposed Securities and
    Exchange Commission No-Action Letter&#151;The Proposed SEC
    No-Action Letter.&#148;
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Approximately &nbsp;&nbsp;million Class&nbsp;A
    common shares issuable in lieu of cash redemptions for Monday
    SCA Class&nbsp;I common shares and in exchange for exchangeable
    shares issued by one of Monday SCA&#146;s subsidiaries held by
    or on behalf of our partners and some of the
    PricewaterhouseCoopers network of firms and their partners and
    shareholders will, unless these restrictions are waived, be
    subject to the transfer restrictions described under
    &#147;Arrangements with the PricewaterhouseCoopers Network of
    Firms&#151;Shareholders Agreement&#148; and &#147;Arrangements
    with Our Partners&#151;Monday Ltd Voting Agreement&#148; and,
    unless these restrictions are waived, will be subject to the
    underwriters&#146; lock-up described under
    &#147;Underwriters&#148; and will be eligible for resale
    pursuant to Rule&nbsp;144 under the Securities Act one year
    after redemption or exchange as described below. We have agreed
    to file a registration statement that will permit partners to
    resell Class&nbsp;A common shares delivered to them as set forth
    in this paragraph without the one year holding period
    requirement.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">222
</FONT>

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<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Approximately &nbsp;&nbsp;million Class&nbsp;A
    common shares underlying restricted share units generally will
    be deliverable as follows:
    </FONT></TD>
</TR>

</TABLE>

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

<TR>
    <TD width="67%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="15%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="14%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

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

<TR>
    <TD align="center" nowrap><B><FONT size="1">restricted share</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Years after the closing of</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">units delivered</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">the concurrent Class&nbsp;A</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">to partners</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">common shares offering</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>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">&nbsp;20%
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top" nowrap><FONT size="2">1 year&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">&nbsp;20%
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top" nowrap><FONT size="2">2 years</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;20%
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top" nowrap><FONT size="2">3 years</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;15%
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top" nowrap><FONT size="2">4 years</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;25%
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" align="center" valign="top"><FONT size="2">The later of 5 years<BR>and termination of<BR>employment or service with us.</FONT></TD>
</TR>

</TABLE>
</CENTER>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Of the approximately &nbsp;&nbsp;million
    Class&nbsp;A common shares subject to options described under
    &#147;Management&#151;2003 Share Incentive Plan,&#148;
    approximately &nbsp;&nbsp;million shares will become exercisable
    in four equal annual installments beginning one year after the
    date of grant and approximately &nbsp;&nbsp;million shares will
    become exercisable in three equal annual installments beginning
    one year after the date of grant.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">All of the approximately &nbsp;&nbsp;million
    Class&nbsp;A common shares subject to options described under
    &#147;Management&#151; 2003 Non-Management Share Plan&#148; will
    become exercisable in three equal installments from the date of
    grant.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">All of the approximately &nbsp;&nbsp;million
    Class&nbsp;A common shares subject to options described under
    &#147;Management&#151; 2003 Non-Employee Directors&#146;
    Incentive Plan&#148; will become exercisable in four equal
    annual installments beginning one year after the date of grant.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">An additional &nbsp;&nbsp;million Class&nbsp;A
    common shares, or awards relating to Class&nbsp;A common shares,
    other than those described above, will be issued or available
    for issuance on and after the closing of our separation under
    the benefit plans described in the prospectus, including grants
    of restricted Class&nbsp;A common shares.
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">Assuming an offering price in the concurrent
    Class&nbsp;A common shares offering of $&nbsp;, up
    to &nbsp;&nbsp;million of our Class&nbsp;A common shares, or up
    to &nbsp;&nbsp;million Class&nbsp;A common shares if the
    underwriters for this offering fully exercise their
    over-allotment option to acquire additional PEPS Units, will be
    reserved for issuance in connection with the PEPS Units that are
    being offered in this offering. These Class&nbsp;A common shares
    may be issued at any time and from time to time on or prior
    to &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;,
    2006, and generally will be freely tradeable upon issuance
    without restriction or further registration under the Securities
    Act of 1933.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We, the selling shareholders in the concurrent
Class&nbsp;A common shares offering, our shareholders,
employees, partners, officers and directors who received
Class&nbsp;A common shares in the separation have agreed,
without the prior written consent of Morgan Stanley &#38; Co.
Incorporated on behalf of the underwriters, not to, during the
period ending 180&nbsp;days, or in some cases up to two years,
after the date of this prospectus, dispose of any Class&nbsp;A
common shares or securities convertible into or exchangeable for
Class&nbsp;A common shares, except under limited circumstances
described under &#147;Underwriters.&#148;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">To the extent not otherwise freely tradable or
able to be sold under an exemption contained in Rule&nbsp;144,
we currently expect that we will file a registration statement
with the SEC in order to register the reoffer and resale of our
Class&nbsp;A common shares issued pursuant to the restricted
share units and options to purchase our Class&nbsp;A common
shares described under &#147;Management&#151; 2003 Share
Incentive Plan&#148; and &#147;Management&#151; 2003
Non-Management Share Plan.&#148; The firms in
PricewaterhouseCoopers network, some of their partners and
shareholders and the PricewaterhouseCoopers retirement trusts
will have the right to demand that we file a registration
statement with the SEC in order to register the reoffer and
resale of our Class&nbsp;A
</FONT>

<P align="center"><FONT size="2">223
</FONT>
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<DIV align="left">
<FONT size="2">common shares and other registerable securities
described under &#147;Arrangements with the
PricewaterhouseCoopers Network of Firms&#151; Shareholders
Agreement&#151; Registration Rights.&#148; As a result, any
Class&nbsp;A common shares delivered or purchased pursuant to
these plans or covered under the registration rights provisions
will, subject to applicable contractual restrictions, be freely
transferable to the public unless our Class&nbsp;A common shares
are acquired by an &#147;affiliate&#148; of ours. Any
Class&nbsp;A common shares acquired by an &#147;affiliate&#148;
of ours will be transferable to the public in accordance with
Rule&nbsp;144.
</FONT>
</DIV>

<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
together, including an affiliate, who has beneficially owned
restricted shares for at least one year is entitled to sell,
within any three-month period, a number of these shares that
does not exceed the greater of:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="95%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">one percent of the then outstanding Class&nbsp;A
    common shares or
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the average weekly trading volume in Class&nbsp;A
    common shares on the New York Stock Exchange during the four
    calendar weeks preceding the date on which notice of this sale
    is filed, so long as requirements concerning availability of
    public information, manner of sale and notice of sale are
    satisfied.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, affiliates must comply with the
restrictions and requirements of Rule&nbsp;144, other than the
one-year holding period requirement, in order to sell
Class&nbsp;A common shares that are not restricted securities
within the meaning of that rule. Under Rule&nbsp;144(k), a
person who is not an affiliate and has not been an affiliate for
at least three months prior to the sale and who has beneficially
owned restricted shares for at least two years may resell these
shares without compliance with the foregoing requirements.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The registration rights that will be granted to
some firms in the PricewaterhouseCoopers network and some of the
PricewaterhouseCoopers partners and shareholders could, if
exercised, permit these shareholders to sell significant amounts
of Class&nbsp;A common shares. See &#147;Risk Factors&#151;
Risks That Relate to Ownership of Our Class&nbsp;A Common Shares
Deliverable Upon Settlement of the Purchase Contracts&#151; The
price of our Class&nbsp;A common shares may decline due to the
large number of outstanding shares eligible for future sale to
the public, including any Class&nbsp;A common shares held by the
PricewaterhouseCoopers firms that must be divested within five
years of the concurrent Class&nbsp;A common shares
offering&#148; for a description of risks relating to the
registration rights.
</FONT>

<P align="center"><FONT size="2">224
</FONT>
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<P align="center">
<B><FONT size="2">MATERIAL INCOME TAX CONSEQUENCES</FONT></B>

<P align="left">
<B><FONT size="2">Luxembourg Tax Considerations</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under current Luxembourg law, no income,
withholding or other taxes or stamp or other duties are imposed
in Luxembourg upon the issue, transfer or sale of the senior
notes or on any payments under the senior notes, except, in some
circumstances, to holders that for Luxembourg tax purposes are
resident in or have a permanent establishment in Luxembourg.
</FONT>

<P align="left">
<B><FONT size="2">Bermuda Tax Considerations</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under current Bermuda law, no income, withholding
or other taxes or stamp or other duties are imposed in Bermuda
upon the issue, transfer or sale of the purchase contracts or
Class&nbsp;A common shares issued under the purchase contracts
or on any payments under the purchase contracts or Class&nbsp;A
common shares, except, in some circumstances, to persons
ordinarily resident in Bermuda.
</FONT>

<P align="left">
<B><FONT size="2">United States Federal Income Tax
Considerations for U.S. Holders</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following is a summary of the material United
States federal income tax consequences to U.S. holders (defined
below) of the purchase, ownership and disposition of PEPS Units,
Treasury PEPS Units, senior notes and our Class&nbsp;A common
shares acquired under the purchase contracts. Unless otherwise
stated, this summary applies to you only if you are an initial
holder who acquires PEPS Units at the issue price and who holds
PEPS Units, Treasury PEPS Units, senior notes and our
Class&nbsp;A common shares as capital assets. As used herein,
the term &#147;U.S. holder&#148; means an owner of PEPS Units or
Treasury PEPS Units that, for U.S. federal income tax purposes,
is:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">an individual who is a citizen or resident of the
    United States,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">a corporation created or organized in or under
    the laws of the United States or any political subdivision
    thereof or
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">an estate or trust the income of which is subject
    to U.S. federal income taxation, regardless of its source.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If a partnership holds PEPS Units, Treasury PEPS
Units, senior notes or our Class&nbsp;A common shares, the tax
treatment of a partner will generally depend upon the status of
the partner and upon the activities of the partnership. Partners
of partnerships holding any of the above instruments should
consult their tax advisors about the U.S. federal income tax
consequences of the purchase, ownership and disposition of PEPS
Units, Treasury PEPS Units, senior notes and our Class&nbsp;A
common shares acquired under the purchase contracts.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The tax treatment of holders varies depending on
their particular situations. This summary does not deal with
special classes of holders. For example, this summary does not
address:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">tax consequences to U.S. holders who may be
    subject to special tax treatment, such as banks, thrifts, real
    estate investment trusts, regulated investment companies,
    insurance companies, dealers in securities or currencies and
    tax-exempt investors,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">tax consequences to U.S. holders holding PEPS
    Units, Treasury PEPS Units, senior notes or our Class&nbsp;A
    common shares as part of a straddle, hedging, constructive sale,
    conversion or other integrated transaction for U.S. federal
    income tax purposes, or
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">alternative minimum tax consequences, if any.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This summary also does not discuss any state,
local or (except to the extent described under &#147;Luxembourg
Tax Considerations&#148; and &#147;Bermuda Tax
Considerations&#148;) foreign tax consequences to U.S. holders.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">This summary is based upon the Internal Revenue
Code of 1986, Treasury regulations (including proposed Treasury
regulations) issued under the Code, IRS rulings and
pronouncements and judicial decisions
</FONT>

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</FONT>

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<DIV align="left">
<FONT size="2">now in effect, all of which are subject to
change. Any such change may be applied retroactively in a manner
that could cause the tax consequences to vary materially from
the consequences described below, possibly adversely affecting
you. No statutory, administrative or judicial authority directly
addresses the treatment of PEPS Units, Treasury PEPS Units or
instruments similar to PEPS Units or Treasury PEPS Units for
U.S. federal income tax purposes. As a result, we cannot assure
you that the IRS will agree with the tax consequences described
below. We urge U.S. holders to consult their own tax advisors
with respect to the tax consequences to them of the purchase,
ownership and disposition of the PEPS Units and Treasury PEPS
Units, including the tax consequences under state, local,
foreign and other tax laws and the possible effects of changes
in U.S. federal or other tax laws.
</FONT>
</DIV>

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

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allocation of
the purchase price</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Your acquisition of a PEPS Unit will be treated
as an acquisition of the senior note and the purchase contract
constituting the PEPS Unit. The purchase price will be allocated
between the senior note and the purchase contract in proportion
to their respective fair market values at the time of purchase.
This allocation will establish your initial tax basis in the
senior note and the purchase contract. We have determined
that &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% of the issue price of a
PEPS Unit is allocable to the senior note,
and &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;% is allocable to the purchase
contract. This position will be binding on you (but not on the
IRS) unless you explicitly disclose a contrary position in a
statement attached to your timely filed U.S. federal income tax
return for the taxable year in which you acquire PEPS Units.
Thus, absent such disclosure, you should allocate the purchase
price for PEPS Units in accordance with the foregoing. The
remainder of this discussion assumes that this allocation of the
purchase price will be respected for U.S. federal income tax
purposes.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Senior
notes</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Ownership of senior
notes.</FONT></I><FONT size="2"> We and you, by acquiring PEPS
Units, agree to treat you as the owner, for U.S. federal, state
and local income and franchise tax purposes, of the senior notes
that are a part of the PEPS Units that you own. The remainder of
this summary assumes that you will be treated as owning the
senior notes that are a part of such PEPS Units for U.S.
federal, state and local income and franchise tax purposes.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Interest income.</FONT></I><FONT size="2"> The
treatment of the senior notes is not clear, as described below.
We intend to take the position and the following discussion
assumes that you will be required to include stated interest
payments on the senior notes in your income at the time the
interest is paid or accrued, in accordance with your regular
method of tax accounting.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the allocation described above of the issue
price of a PEPS Unit between the related senior note and
purchase contract, the principal amount of the senior note will
be greater than the portion of the purchase price allocated to
the senior note, and the senior note will thus be considered for
U.S. federal income tax purposes to have been issued with
original issue discount, in an amount equal to such excess. You
will be required to include this original issue discount in
income for U.S. federal income tax purposes as it accrues over
the period from the original issue date through the reset
effective date, in accordance with a constant-yield method based
on a compounding of interest, before you receive any payment
attributable to this income. Under this method, you generally
will be required to include in income increasingly greater
amounts of original issue discount in successive accrual periods.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Interest on the senior notes, including original
issue discount, will generally be treated for U.S. foreign tax
credit purposes as foreign-source passive income or, in the case
of some holders, foreign-source financial services income.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Sale, exchange or other disposition of senior
notes.</FONT></I><FONT size="2"> Upon the sale, exchange or
other disposition of senior notes (including as a result of the
remarketing thereof), you will recognize capital gain or loss in
an amount equal to the difference between your amount realized
(which does not include amounts equal to any accrued but unpaid
interest that you have not previously included in gross income,
which will be taxable as interest) and your tax basis in the
senior notes. Your tax basis in the senior notes you hold will
equal the cost
</FONT>

<P align="center"><FONT size="2">226
</FONT>
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<DIV align="left">
<FONT size="2">of the senior notes, increased by the amounts of
original issue discount previously included in income. Such gain
or loss will generally be treated as U.S.-source for U.S.
foreign tax credit purposes. Gains of individuals from capital
assets held for more than one year are taxed up to a maximum
rate of 20%. Your ability to deduct capital losses is subject to
limitations. Your holding period in the senior notes will
commence on the day after the day you acquire the senior notes.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Possible alternative
characterization.</FONT></I><FONT size="2"> The treatment of
instruments involving a reset mechanism like that in the senior
notes is unclear. For example, it is possible that the IRS could
treat the senior notes as &#147;contingent payment debt
instruments.&#148; Under that treatment, (1)&nbsp;regardless of
your regular method of tax accounting, you would be required to
use an accrual method with respect to the senior notes,
(2)&nbsp;interest income that accrues may exceed interest
payments actually received, (3)&nbsp;any gain and all or a
portion of any loss on the sale, exchange or other disposition
of the senior notes generally would be ordinary rather than
capital in nature, and (4)&nbsp;any gain and all or a portion of
any loss on the sale, exchange or other disposition of the
senior notes generally would be treated differently for U.S.
foreign tax credit purposes than if the intended treatment of
the senior notes were respected. You should consult your tax
advisor regarding the treatment of the senior notes, including
the possible application of the contingent debt rules.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Purchase
contracts</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Acquisition of Class&nbsp;A common shares
under a purchase contract.</FONT></I><FONT size="2"> You
generally will not recognize gain or loss on the purchase of our
Class&nbsp;A common shares under a purchase contract, except
with respect to any cash paid instead of a fractional share of
our Class&nbsp;A common shares. Your aggregate initial tax basis
in the shares of our Class&nbsp;A common shares acquired under a
purchase contract generally should equal (1)&nbsp;the purchase
price paid for those shares, including the portion of the issue
price of the related PEPS Unit that is allocated to such
purchase contract, less (2)&nbsp;the portion of such purchase
price allocable to any fractional share. The holding period for
Class&nbsp;A common shares acquired under a purchase contract
will commence on the day after the day you acquire the shares.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Early settlement of purchase
contract.</FONT></I><FONT size="2"> You will not recognize gain
or loss on the receipt of a senior note, Treasury securities or
your share of the Treasury portfolio upon early settlement of a
purchase contract, and your tax basis in, and holding period
for, the senior note, Treasury securities or the Treasury
portfolio will not be affected by the early settlement.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Termination of purchase
contract.</FONT></I><FONT size="2"> If a purchase contract
terminates, you will recognize gain or loss equal to the
difference between the amount realized (if any) upon the
termination and your adjusted tax basis in the purchase contract
at the time of the termination. In general, such gain or loss
will be U.S.-source for U.S. foreign tax credit purposes. The
gain or loss generally will be capital gain or loss and will be
long-term capital gain or loss if you held the purchase contract
for more than one year immediately before such termination.
Long-term capital gains of individuals are eligible for reduced
rates of taxation. The deductibility of capital losses is
subject to limitations. You will not recognize gain or loss on
the receipt of a senior note, Treasury securities or Treasury
portfolio upon termination of the purchase contract, and you
will have the same adjusted tax basis in the senior note,
Treasury securities or Treasury portfolio as before such
termination.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Ownership
of Class&nbsp;A common shares acquired under a purchase
contract</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Distributions. </FONT></I><FONT size="2">The
gross amount of distributions you receive on your Class&nbsp;A
common shares, if any, will generally be treated as dividend
income to you if the distributions are made from our current and
accumulated earnings and profits, calculated according to U.S.
federal income tax principles. Such income will be includible in
your gross income as ordinary income on the day you actually or
constructively receive it. Because we are not a U.S.
corporation, you will not be entitled to claim a dividends
received deduction, generally allowed to U.S. corporations in
respect of dividends received from other U.S. corporations, with
respect to distributions you receive from us. To the extent that
the amount of any distribution exceeds our current and
accumulated earnings and profits for a taxable year, the
distribution will first be treated as a tax-free return of
capital, causing a reduction in your adjusted basis in the
Class&nbsp;A common shares, and the balance of the distribution
in excess of your adjusted basis will be taxed as capital gain
recognized on a
</FONT>

<P align="center"><FONT size="2">227
</FONT>
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<DIV align="left">
<FONT size="2">subsequent disposition of the shares. The
reduction in basis caused by the tax-free return of capital will
increase the amount of gain, or decrease the amount of loss, you
will recognize on any subsequent disposition of your
Class&nbsp;A common shares. If, for U.S. federal income tax
purposes, we are classified as a United States-owned foreign
corporation, distributions made to you with respect to your
Class&nbsp;A common shares that are taxable as dividends
generally will be treated for U.S. foreign tax credit purposes
as:
</FONT>
</DIV>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">foreign source passive income or, in the case of
    some holders, foreign source financial services income, and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">U.S. source income,
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">in proportion to our earnings and profits in the
year of such distribution allocable to foreign and U.S. sources,
respectively. For this purpose, we will be treated as a United
States-owned foreign corporation so long as stock representing
50% or more of the voting power or value of our shares is owned,
directly or indirectly, by U.S. persons.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Foreign personal holding company.
</FONT></I><FONT size="2">A foreign corporation will be
classified as a foreign personal holding company
(&#147;FPHC&#148;) if:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">at any time during the corporation&#146;s taxable
    year, five or fewer individuals who are United States citizens
    or residents own, directly or indirectly (or by virtue of
    certain ownership attribution rules), more than 50% of the
    corporation&#146;s stock by either voting power or value which
    we refer to as the shareholder test; and
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the corporation receives at least 60% of its
    gross income, or 50% after the initial year of qualification, as
    adjusted, for the taxable year from certain passive sources,
    including any income from certain personal service contracts,
    which we refer to as the income test.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If we or one or more of our non-United States
subsidiaries were classified as a foreign personal holding
company, you and some indirect holders would be required,
regardless of your percentage ownership, to include in income as
a dividend, your pro rata share of our, or our relevant
non-United States subsidiary&#146;s, undistributed foreign
personal holding company income if you were a holder on the last
day of our taxable year or, if earlier, the last day on which we
satisfied the shareholder test. Such pro rata share would
depend, in part, on the proportion of the year for which we, or
one or more of our non-United States subsidiaries, were a
foreign personal holding company. If you own, directly or
indirectly, 5% or more by value of our Class&nbsp;A common
shares, you will be required to include in your return
information about the income, expenses and other specified items
of the applicable company.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Because of the application of complex ownership
attribution rules, we are likely to meet the shareholder test
during our first tax year, and possibly in later years.
Additionally, we may satisfy the income test and be treated as a
foreign personal holding company, although we intend to manage
our affairs so as to minimize the percentage of foreign personal
holding company income in our gross income for all applicable
tax years. However, even if we are classified as a foreign
personal holding company, subject to the discussion of our
non-United States subsidiaries below, we do not anticipate
having any material amounts of undistributed foreign personal
holding company income.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, because of the application of
complex ownership attribution rules, our non-United States
subsidiaries are likely to meet the shareholder test in a given
year. It is also possible that one or more of our non-United
States subsidiaries will meet the income test in a given year
and be treated as a foreign personal holding company. If one or
more of our non-United States subsidiaries is a foreign personal
holding company, then any undistributed foreign personal holding
company income of those subsidiaries generally would be deemed
paid to us or you as a dividend, with the result that you
generally would be required to include currently your ratable
share of such deemed dividend as undistributed foreign personal
holding company income. Any such income inclusion would result
in a corresponding increase in your tax basis in our
Class&nbsp;A common shares. However, we intend to manage the
affairs of our non-United States subsidiaries so as to attempt
to avoid or minimize having income imputed to you under these
rules, to the extent this is consistent with our business goals,
although there can be no assurance in this regard.
</FONT>

<P align="center"><FONT size="2">228
</FONT>

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<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Depending on a variety of factors, it is possible
that we or any of our non-United States subsidiaries that are
foreign personal holding companies may cease to be classified as
foreign personal holding companies in the future, although there
can be no assurance in this regard.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Disposition of Class&nbsp;A common shares.
</FONT></I><FONT size="2">When you sell or otherwise dispose of
your Class&nbsp;A common shares you will recognize capital gain
or loss in an amount equal to the difference between the amount
you realize for the shares and your adjusted tax basis in them.
For foreign tax credit limitation purposes, this gain or loss
will generally be treated as U.S.-source. If you are an
individual and the Class&nbsp;A common shares being sold or
otherwise disposed of have been held by you for more than one
year, your gain recognized will be taxed at a maximum tax rate
of 20%. Your ability to deduct capital losses is subject to
limitations.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I><FONT size="2">Adjustment to settlement
rate.</FONT></I><FONT size="2"> In the event we make
distributions to our shareholders that are treated for U.S.
federal income tax purposes as dividends, you might be treated
as receiving a constructive dividend from us, if (1)&nbsp;the
settlement rate is adjusted and, as a result of that adjustment,
your proportionate interest in our assets or earning and profits
is increased and (2)&nbsp;the adjustment is not made pursuant to
a bona fide, reasonable anti-dilution formula. An adjustment in
the settlement rate would not be considered made pursuant to
such a formula if the adjustment were made to compensate you for
certain taxable distributions with respect to our common stock.
Thus, under some circumstances, an increase in the settlement
rate might give rise to a taxable dividend to you even though
you would not receive any cash. We do not presently anticipate
that we will make any distributions to our shareholders which
are treated for U.S. federal income tax purposes as dividends.
</FONT>

<P align="left">
<B><FONT size="2">Treasury PEPS Units</FONT></B>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Substitution
of Treasury securities to create Treasury PEPS
Units</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If you hold PEPS Units and deliver Treasury
securities in substitution for senior notes, you generally will
not recognize gain or loss upon the delivery of the Treasury
securities or the release of the senior notes from the pledge
arrangement. You will continue to include in income any interest
payments with respect to the senior notes you continue to hold,
and your tax basis in, and holding period for, the senior notes
and the purchase contracts will not be affected by the delivery
and release.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ownership
of Treasury securities</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">You, by acquiring Treasury PEPS Units, agree to
be treated as the owner, for U.S. federal, state and local
income and franchise tax purposes, of the Treasury securities
that are part of the Treasury PEPS Unit that you own.
Accordingly, you will be required to recognize income, gain and
loss with respect to the Treasury securities in the same manner
as if you held them directly. You are urged to consult with your
tax advisor regarding the acquisition, ownership and disposition
of the Treasury securities.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Substitution
of senior notes to recreate PEPS Units</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If you hold Treasury PEPS Units and deliver
senior notes to recreate PEPS Units, you generally will not
recognize gain or loss upon the delivery of the senior notes or
the release of the Treasury securities. You will continue to
include in income any interest, original issue discount or
acquisition discount otherwise includible with respect to the
Treasury securities and the senior notes, and your tax basis in,
and holding period for, the Treasury securities, the senior
notes and the purchase contract will not be affected by the
delivery and release.
</FONT>

<P align="left">
<B><FONT size="2">Tax or accounting event redemption</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">A tax or accounting event redemption will be a
taxable event. You will generally recognize capital gain or loss
in an amount equal to the difference between (1)&nbsp;the
redemption price of the senior notes (whether paid directly to
you or applied to the purchase of the Treasury portfolio on
behalf of holders of the PEPS Units), except to the extent of
amounts paid in respect of accrued but unpaid interest not
previously included in income, which will be taxable as such,
and (2)&nbsp;your adjusted tax basis in the senior notes.
Capital gains of
</FONT>

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</FONT>
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<DIV align="left">
<FONT size="2">individuals derived in respect of capital assets
held for more than one year are taxed up to a maximum tax rate
of 20%. Your ability to deduct capital losses is subject to
limitations.
</FONT>
</DIV>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasury
portfolio</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">You, by acquiring PEPS Units, agree to be treated
as the owner, for U.S. federal state and local income and
franchise tax purposes, of that portion of the Treasury
portfolio that is a part of the PEPS Units that you own. You
will be required to include in income any amount earned on your
pro rata share of the Treasury portfolio for all U.S. federal,
state and local income and franchise tax purposes. You are urged
to consult your tax advisor regarding the tax treatment of the
acquisition, ownership and disposition of the Treasury portfolio.
</FONT>

<P align="left">
<B><FONT size="2">Sale or disposition of PEPS Units or Treasury
PEPS Units</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Upon a disposition of PEPS Units or Treasury PEPS
Units, you will be treated as having sold, exchanged or disposed
of the purchase contracts and senior notes or Treasury
securities or applicable interest in the Treasury portfolio, as
the case may be, that constitute the PEPS Units or Treasury PEPS
Units. You generally will have capital gain or loss equal to the
difference between the portion of your proceeds allocable to the
purchase contracts and the senior notes or Treasury securities
or applicable interest in the Treasury portfolio, as the case
may be, and your respective tax basis in the purchase contracts
and the senior notes or Treasury securities or applicable
interest in the Treasury portfolio. See &#147;&#151;PEPS
Units&#151; Senior notes&#151; Sale, exchange or other
disposition of senior notes.&#148;
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If the disposition of a PEPS Unit or Treasury
PEPS Unit occurs when the purchase contract has a negative value
to you, you will be considered to have received additional
consideration for the senior note or Treasury securities or
applicable interest in the Treasury portfolio in an amount equal
to such negative value and to have paid such amount to be
released from your obligation under the purchase contract. You
should consult your tax advisor regarding a disposition of a
PEPS Unit or Treasury PEPS Unit at a time when the purchase
contract has a negative value.
</FONT>

<P align="left">
<B><FONT size="2">Information reporting and backup
withholding</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Unless you are an exempt recipient such as a
corporation, (1)&nbsp;payments under the PEPS Units, Treasury
PEPS Units, senior notes, purchase contracts, Treasury
securities or applicable interest in the Treasury portfolio or
our Class&nbsp;A common shares, (2)&nbsp;the proceeds received
with respect to a fractional share of our common stock upon the
settlement of a purchase contract and (3)&nbsp;the proceeds
received from the sale, exchange or other disposition of PEPS
Units, Treasury PEPS Units, senior notes, purchase contracts,
Treasury securities or applicable interest in the Treasury
portfolio or our Class&nbsp;A common shares may be subject to
information reporting and may be subject to U.S. federal backup
withholding at the applicable rate if you fail to supply an
accurate taxpayer identification number or otherwise fail to
comply with applicable U.S. information reporting or
certification requirements. Amounts withheld under the backup
withholding rules may be allowed as a refund or a credit against
your U.S. federal income tax liability provided the required
information is furnished to the IRS.
</FONT>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Section&nbsp;406 of the Employee Retirement
Income Security Act of 1974, as amended (&#147;ERISA&#148;) and
Section&nbsp;4975 of the Internal Revenue Code of 1986, as
amended (the &#147;Code&#148;), prohibit pension, profit-sharing
or other employee benefit plans, as well as individual
retirement accounts, Keogh plans and other plans subject to
Section&nbsp;4975 of the Code (&#147;Plans&#148;), from engaging
in certain transactions involving &#147;plan assets&#148; with
persons who are &#147;parties in interest&#148; under ERISA or
&#147;disqualified persons&#148; under the Code (&#147;Parties
in Interest&#148;) with respect to such Plans. As a result of
the business of Monday Ltd and its related entities, both it and
Monday Finance SA and Monday SCA could be Parties in Interest
with respect to many Plans. Where this is the case, the purchase
and holding of the PEPS Units by or on behalf of the Plan could
result in prohibited transactions under Section&nbsp;406(a)(1)
of ERISA and Section&nbsp;4975(c)(1) of the Code, unless
exemptive relief were available. In this regard, the U.S.
Department of Labor has issued the following prohibited
transaction class exemptions (&#147;PTCEs&#148;) that may apply
to the acquisition and holding of the PEPS Units and the
underlying component instruments and transactions:
PTCE&nbsp;96-23 (relating to transactions determined by in-house
asset managers), PTCE&nbsp;95-60 (relating to transactions by
insurance company general accounts), PTCE&nbsp;91-38 (relating
to transactions by bank collective investment trusts),
PTCE&nbsp;90-1 (relating to transactions by insurance company
separate accounts) or PTCE&nbsp;84-14 (relating to transactions
determined by qualified professional asset managers). There can
be no assurance, however, that all of the conditions of any such
exemption will be satisfied.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Accordingly, each purchaser or holder of the PEPS
Units or any interest therein will be deemed to have represented
by its purchase and holding thereof that (a)&nbsp;it is not a
Plan or an entity whose underlying assets include &#147;plan
assets&#148; by reason of any Plan&#146;s investment in the
entity (collectively, &#147;Plan Investors&#148;) and is not
purchasing the PEPS Units on behalf of or with &#147;plan
assets&#148; of any Plan Investor or (b)&nbsp;its purchase,
holding and disposition of the PEPS Units and the underlying
component instruments, and its involvement in the transactions
contemplated by the PEPS Units, will not involve any non-exempt
prohibited transactions under ERISA or the Code or other similar
laws. This representation will be deemed to be made at each
moment from and including the date of acquisition of the PEPS
Units through and including the date of disposition of the PEPS
Units and each component instrument. A purchase of the PEPS
Units by a Plan Investor will be deemed to constitute an
approval of the terms of all of the actions and transactions
described in this prospectus taken by, effected by or involving
Monday Ltd, Monday Finance SA, Monday SCA, their related
entities and the remarketing agent.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Employee benefit plans that are governmental
plans (as defined in Section&nbsp;3(32) of ERISA), certain
church plans (as defined in Section&nbsp;3(33) of ERISA) and
foreign plans (as described in Section&nbsp;4(b)(4) of ERISA)
are not subject to the prohibited transaction rules of ERISA or
the Code, but may be subject to similar rules under other
applicable laws or documents.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Due to the complexity of the applicable rules, it
is particularly important that fiduciaries or other persons
considering purchasing the PEPS Units on behalf of or with
&#147;plan assets&#148; of any Plan Investor consult with their
counsel regarding the relevant provisions of ERISA and the Code
and the availability of exemptive relief under PTCE&nbsp;96-23,
95-60, 91-38, 90-1 or 84-14. Parties who purchase and hold the
PEPS Units and become involved in the actions and transactions
contemplated under the PEPS Units accept sole responsibility for
ensuring that such actions and transactions do not involve
non-exempt prohibited transactions under ERISA, the Code or
similar laws or an unauthorized delegation of fiduciary
authority with respect to assets of a Plan Investor. The sale of
the PEPS Units to a Plan Investor is in no respect a
representation by Monday Ltd, any related entity or the
underwriters that the PEPS Units meet all relevant legal
requirements with respect to investments by Plan Investors
generally or any particular Plan Investor, or that the PEPS
Units are appropriate for Plan Investors generally or any
particular Plan Investor.
</FONT>

<P align="center"><FONT size="2">231
</FONT>

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

<!-- link2 "UNDERWRITERS" -->
<DIV align="left"><A NAME="061"></A></DIV>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the terms and subject to the conditions
contained in an underwriting agreement dated the date of this
prospectus, the underwriters named below, for whom Morgan
Stanley&nbsp;&#38; Co. Incorporated is acting as representative,
have severally agreed to purchase, and Monday Ltd, Monday SCA
and Monday Finance SA have agreed to sell to them, severally,
the respective number of PEPS Units set forth 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="81%"><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="3" align="center" nowrap><B><FONT size="1">Number of</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Name</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">PEPS Units</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 valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Morgan Stanley &#38; Co. Incorporated
    </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">Goldman, Sachs &#38; Co.&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 valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Lehman Brothers 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">Merrill Lynch, Pierce, Fenner &#38; Smith<BR>
    Incorporated
    </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">Banc of America Securities LLC
    </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">Credit Suisse First Boston Corporation
    </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">Salomon Smith Barney 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">SG Cowen Securities Corporation
    </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">UBS Warburg LLC
    </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 underwriters are offering the PEPS Units
subject to their acceptance of the PEPS Units from us and
subject to prior sale. The underwriting agreement provides that
the obligations of the several underwriters to pay for and
accept delivery of the PEPS Units offered by this prospectus are
subject to the approval of specified legal matters by their
counsel and to other conditions. These conditions include a
condition that our separation be completed prior to the closing
of this offering and a condition that the initial public
offering of our Class&nbsp;A common shares be consummated
simultaneously. The underwriters are obligated to take and pay
for all of the PEPS Units offered by this prospectus if any such
units are taken. However, the underwriters are not required to
take or pay for the PEPS Units covered by the over-allotment
option described below.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The underwriters initially propose to offer a
portion of the PEPS Units directly to the public at the public
offering price listed on the cover page of this prospectus and a
portion to some dealers at a price that represents a concession
not in excess of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per PEPS Unit
under the public offering price. Any underwriter may allow, and
such dealers may reallow, a concession not in excess of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;per PEPS Unit to other
underwriters or dealers. After the initial offering of the PEPS
Units, the offering price and other selling terms may from time
to time be varied by the representative.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The underwriting discounts and commissions to be
paid by us, which are expected to be a fixed percentage of the
offering price, are set forth in the following table:
</FONT>

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

<TR>
    <TD width="56%"><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="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="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Underwriting</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Net Proceeds</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Price to</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Discounts and</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">to Monday</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Public</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Commissions</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Finance&nbsp;SA</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">Per PEPS Unit
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25.00</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</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">Total
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</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">We expect that the offering expenses payable by
us in connection with this offering, other than the underwriting
discounts and commissions, will be approximately
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have granted to the underwriters an option,
exercisable for 30 days from the date of this prospectus,
subject to certain limitations, to purchase up to an aggregate
of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;additional
PEPS Units at the public offering price listed on the cover page
of this prospectus, less underwriting discounts and commissions.
The underwriters may exercise this option solely for the purpose
of covering over-allotments, if any, made in connection with the
offering of PEPS Units by this prospectus. To the extent this
option is exercised, each underwriter will become obligated,
subject to specified conditions, to purchase the same percentage
of
</FONT>

<P align="center"><FONT size="2">232
</FONT>

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

<DIV align="left">
<FONT size="2">additional PEPS Units as the number listed next
to the underwriter&#146;s name in the preceding table bears to
the total number of PEPS Units listed next to the names of all
underwriters in the preceding table.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">If the underwriters&#146; option is exercised in
full, the total price to the public would be
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million, the
total underwriting discounts and commissions would be
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
the total proceeds to us would be
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We, our shareholders, employees, service
providers, partners, officers and directors who received
Class&nbsp;A common shares in our separation will agree, without
the prior written consent of Morgan Stanley&nbsp;&#38; Co.
Incorporated on behalf of the underwriters, not to, during the
period ending 180&nbsp;days after the date of this prospectus:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">offer, pledge, sell, contract to sell, sell any
    option or contract to purchase, purchase any option or contract
    to sell, grant any option, right or warrant to purchase, lend,
    exchange, redeem or otherwise transfer or dispose of, directly
    or indirectly, any Class&nbsp;A common shares or Class&nbsp;X
    common shares or any securities convertible into or exercisable
    or exchangeable for Class&nbsp;A common shares or Class&nbsp;X
    common shares, or any shares of capital stock of Monday SCA or
    any securities convertible into or exercisable or exchangeable
    for capital stock of Monday SCA, or
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">enter into any swap or other arrangement that
    transfers to another, in whole or in part, any of the economic
    consequences of ownership of the Class&nbsp;A common shares,
    Class&nbsp;X common shares or any securities convertible into or
    exercisable or exchangeable for Class&nbsp;A common shares,
    Class&nbsp;X common shares or capital stock of Monday SCA,
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<FONT size="2">whether any such transaction described above is
to be settled by delivery of Class&nbsp;A common shares,
Class&nbsp;X common shares, capital stock of Monday SCA or such
other securities, in cash or otherwise.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, the PricewaterhouseCoopers firms and
their partners and shareholders taking part in the concurrent
Class&nbsp;A common shares offering will each agree not to enter
into any such transaction for a period of up to two years after
the date of the closing of the concurrent Class&nbsp;A common
shares offering according to the following schedule:
</FONT>

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

<TR>
    <TD width="74%"><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>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amount of Class&nbsp;A</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Period of time following the closing of the</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">common shares that</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">concurrent Class&nbsp;A common shares offering</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">may be sold</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>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Less than six months
    </FONT></DIV>
    </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</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">Between 6&nbsp;months and 12&nbsp;months
    </FONT></DIV>
    </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 align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Between 12&nbsp;months and 18&nbsp;months
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">50</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">Between 18&nbsp;months and 24&nbsp;months
    </FONT></DIV>
    </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>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">More than 24&nbsp;months
    </FONT></DIV>
    </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>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The restrictions described in the preceding two
paragraphs do not apply to:
</FONT>
<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the sale of the PEPS Units to the underwriters,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the sale of Class&nbsp;A common shares to the
    underwriters for the concurrent Class&nbsp;A common shares
    offering,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">our issuance of up
    to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;million Class&nbsp;A
    common shares upon the exercise of an option or warrant or the
    exchange, redemption or conversion of a security outstanding on
    the date of the closing of the concurrent Class&nbsp;A common
    shares offering of which the underwriters have been advised in
    writing prior to the date of this prospectus, including
    exchanges of Monday SCA Class&nbsp;I common shares and exchanges
    of exchangeable shares issued by one of Monday SCA&#146;s
    subsidiaries for shares of Class&nbsp;A common shares, provided
    that, except as otherwise agreed in writing by Morgan
    Stanley&nbsp;&#38; Co. Incorporated on behalf of the
    underwriters, such shares are subject to the terms of the
    restrictions described above,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">our issuance of Class&nbsp;A common shares in
    connection with an exercise of a purchase contract underlying a
    PEPS Unit,
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">233
</FONT>

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<P>

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

<TR>
    <TD width="3%"></TD>
    <TD width="4%"></TD>
    <TD width="93%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">issuance pursuant to the rollup agreements of our
    Class&nbsp;A common shares, Monday SCA Class&nbsp;I common
    shares and exchangeable shares of one of Monday SCA&#146;s
    subsidiaries in exchange for shares of our subsidiaries,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">the granting by us of awards with respect to not
    more than &nbsp;&nbsp;million shares of Class&nbsp;A common
    shares to officers, directors, consultants or employees,
    including any person providing services through a personal
    service company, under the benefit plans described in this
    prospectus, provided that these awards are not exercisable prior
    to the end of the 180-day lock-up described above,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">any transaction required under the proposed
    independence relief no-action letter from the SEC described in
    this prospectus,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">issuance of a number of shares not exceeding
    11.5% of the Class&nbsp;A common shares to be outstanding
    immediately following the closing of the concurrent Class&nbsp;A
    common shares offering, assuming all Monday SCA Class&nbsp;I
    common shares and exchangeable shares issued by one of Monday
    SCA&#146;s subsidiaries then outstanding are redeemed or
    exchanged for newly issued Class&nbsp;A common shares on a
    one-for-one basis, in each case in connection with acquisitions,
    including any acquisitions of the consulting business of a
    PricewaterhouseCoopers firm, provided that the recipient of such
    shares agrees to be bound by the restrictions described above,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">any transfer by a selling shareholder of Monday
    SCA Class&nbsp;I common shares or exchangeable shares of one of
    Monday SCA&#146;s subsidiaries, provided that the transferee of
    any such shares agrees to be bound by the restrictions described
    above,
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">with respect to each of the exceptions listed
    above, the issuance by Monday SCA of the same number of shares
    of its equity to Monday&nbsp;Ltd or
    </FONT></TD>
</TR>

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

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2"> &#149;</FONT></TD>
    <TD align="left">
    <FONT size="2">some transfers by our partners, officers and
    directors for estate planning purposes, provided that the
    transferee of any such shares agrees to be bound by the
    restrictions described above.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In order to facilitate the offering of the PEPS
Units, the underwriters may engage in transactions that
stabilize, maintain or otherwise affect the price of the PEPS
Units. Specifically, the underwriters may sell more PEPS Units
than they are obligated to purchase under the underwriting
agreement, creating a short position in the PEPS Units for their
own account. A short sale is covered if the short position is no
greater than the number of PEPS Units available for purchase by
the underwriters under the over-allotment option. The
underwriters can close out a covered short sale by exercising
the over-allotment option or purchasing PEPS Units in the open
market. In determining the source of PEPS Units to close out a
covered short sale, the underwriters will consider, among other
things, the open market price of the PEPS Units compared to the
price available under the over-allotment option. The
underwriters may also sell PEPS Units in excess of the
over-allotment option, creating a naked short position. The
underwriters must close out any naked short position by
purchasing PEPS Units in the open market. A naked short position
is more likely to be created if the underwriters are concerned
that there may be downward pressure on the price of the PEPS
Units in the open market after pricing that could adversely
affect investors who purchase PEPS Units in this offering. As an
additional means of facilitating this offering, the underwriters
may bid for, and purchase, PEPS Units in the open market to
stabilize the price of the PEPS Units. The underwriting
syndicate may reclaim selling concessions allowed to an
underwriter or a dealer for distributing the PEPS Units in this
offering, if the syndicate repurchases previously distributed
PEPS Units to cover syndicate short positions or to stabilize
the price of the PEPS Units. Any of these activities may raise
or maintain the market price of the PEPS Units above independent
market levels or prevent or retard a decline in the market price
of the PEPS Units. The underwriters are not required to engage
in these activities, and may end any of these activities at any
time.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">From time to time, some of the underwriters and
their affiliates have provided, and will continue to provide,
investment banking services to us and the PricewaterhouseCoopers
network of firms. Morgan Stanley&nbsp;&#38; Co. Incorporated
advised the PricewaterhouseCoopers firms on the reorganization
of its business, including the sale of Unifi, its U.S. human
resources business; the sale of portions of its financial
advisory services business, including its U.S. corporate value
consulting business; the proposed disposal of its business
processing management services business; and the attempted sale
of our business, which was not
</FONT>

<P align="center"><FONT size="2">234
</FONT>
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<DIV align="left">
<FONT size="2">consummated. Morgan Stanley&nbsp;&#38; Co.
Incorporated received usual and customary fees for this advice.
Some of the underwriters for this offering also are acting as
underwriters of the concurrent Class&nbsp;A common shares
offering.
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We, Monday SCA, Monday Finance SA and the
underwriters have agreed to indemnify each other against some
liabilities, including liabilities under the Securities Act.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Neither the lead manager nor any of the
underwriters participating in pricing activities are audit
clients or affiliates of audit clients of the
PricewaterhouseCoopers network of firms. Some other syndicate
members of the underwriters may be clients or affiliates of
audit clients of the PricewaterhouseCoopers network of firms.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Morgan Stanley DW Inc., an affiliate of Morgan
Stanley&nbsp;&#38; Co. Incorporated, through Morgan Stanley
Online, its online service, may be a member of the syndicate and
engage in electronic offers, sales and distributions of the
shares being offered.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Prior to this offering, there has been no public
market for the PEPS Units. We will apply to have the PEPS Units
approved for listing on the New York Stock Exchange. We have
been advised by the underwriters that they intend to make a
market in the PEPS Units. The underwriters are not obligated to
do so and may discontinue their market making at any time
without notice. We can provide no assurance as to the liquidity
of any trading market for the PEPS Units.
</FONT>

<!-- link1 "LEGAL MATTERS" -->
<DIV align="left"><A NAME="062"></A></DIV>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The validity of the issuance of the purchase
contracts and the underlying Class&nbsp;A common shares offered
by this prospectus will be passed upon for us by Conyers
Dill&nbsp;&#38; Pearman, Hamilton, Bermuda. The validity of the
issuance of the senior notes offered by this prospectus will be
passed upon for us by Linklaters Loesch, Luxembourg. Certain
legal matters of United States and New York law will be passed
upon for us by Davis Polk&nbsp;&#38; Wardwell, New York, New
York. Appleby Spurling &#38; Kempe, Hamilton, Bermuda, will pass
upon the validity of the issuance of the purchase contracts and
the underlying Class&nbsp;A common shares offered by this
prospectus for the underwriters. Beghin &#38; Feider en
association avec Allen &#38; Overy, Luxembourg, will pass for
the underwriters upon the validity of the issuance of the senior
notes offered by this prospectus. Certain legal matters of
United States and New York law will be passed upon for the
underwriters by Hughes Hubbard &#38; Reed&nbsp;LLP, New York,
New York. Hughes Hubbard &#38; Reed LLP has provided, and will
continue to provide, legal services to firms in the
PricewaterhouseCoopers network of firms and their affiliates
from time to time for which they have received, and will
receive, customary fees and reimbursement of expenses.
</FONT>

<!-- link1 "EXPERTS" -->
<DIV align="left"><A NAME="063"></A></DIV>

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

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Our combined financial statements as of
June&nbsp;30, 2000 and 2001, and for each of the three years in
the period ended June&nbsp;30, 2001, included in this prospectus
have been audited by Deloitte&nbsp;&#38; Touche LLP, independent
auditors, as stated in their reports appearing in this
prospectus, and have been included in reliance upon the reports
of Deloitte&nbsp;&#38; Touche LLP given upon their authority as
experts in accounting and auditing.
</FONT>

<P align="center"><FONT size="2">235
</FONT>
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<!-- link1 "WHERE YOU CAN FIND MORE INFORMATION" -->
<DIV align="left"><A NAME="064"></A></DIV>

<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 of 1933, as
amended, with respect to our PEPS Units offered hereby. This
prospectus does not contain all of the information set forth in
the registration statement, as amended, and the exhibits to the
registration statement, as amended, to which reference is hereby
made. Some items are omitted in accordance with the rules and
regulations of the SEC. With respect to each contract, agreement
or other document filed as an exhibit to the registration
statement, as amended, reference is made to such exhibit for a
more complete description of the matter involved and statements
contained in this prospectus that are not necessarily complete
are qualified in all respects by such reference. The
registration statement, and any amendments to the registration
statement, and the exhibits to the registration statement filed
by us with the SEC may be inspected at the public reference
facilities of the SEC listed below.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a result of this offering, Monday Ltd and
Monday SCA will be subject to the informational requirements of
the Securities Exchange Act of 1934, as amended, and in
accordance therewith will file reports, proxy statements and
other information with the SEC. Such reports, proxy statements
and other information can be inspected and copied at the public
reference facilities maintained by the SEC at its principal
offices at Room&nbsp;1024, 450 Fifth Street, N.W.,
Washington,&nbsp;D.C. 20549. Please call the SEC at
1-800-SEC-0330 for further information on the operation of the
public reference rooms. Copies of such information may be
obtained from the Public Reference Section of the SEC at
450&nbsp;Fifth Street, N.W., Washington, D.C.&nbsp;20549 at
prescribed rates. The Commission also maintains a World Wide Web
site (http://www.sec.gov) that contains reports, proxy and
information statements and other information regarding
registrants that file electronically with the&nbsp;SEC.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We intend to furnish holders of our PEPS Units
and Treasury PEPS Units with annual reports containing combined
financial statements audited by independent accountants,
beginning with the fiscal year ending June&nbsp;30, 2002. We
also intend to furnish other reports as we may determine or as
required by law. We also maintain an Internet site at
http://www.monday.com. Our website and the information it
contains or that is connected to it shall not be deemed to be
incorporated into this prospectus or the registration statement
of which the prospectus forms a part.
</FONT>

<P align="center"><FONT size="2">236
</FONT>

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

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

<DIV align="center">
<B><FONT size="2">(A Business Unit of the PricewaterhouseCoopers
Network of Firms)</FONT></B>
</DIV>

<DIV>&nbsp;</DIV>

<!-- link1 "INDEX TO COMBINED FINANCIAL STATEMENTS" -->
<DIV align="left"><A NAME="065"></A></DIV>

<DIV align="center">
<B><FONT size="2">INDEX TO COMBINED 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="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">Page</FONT></B></TD>
</TR>

<TR>
    <TD align="center" nowrap><B><FONT size="1">Interim Financial Reporting</FONT></B></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">Combined Balance Sheets at June&nbsp;30, 2001 and
    (unaudited) March&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">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">Combined Income Statements Before Partner
    Distributions and Benefits (unaudited) for the nine months ended
    March&nbsp;31, 2001 and 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">F-3</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">Combined Statements of Cash Flows (unaudited) for
    the nine months ended March&nbsp;31, 2001 and 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">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">Notes to the Combined Financial Statements
    (unaudited)
    </FONT></DIV>
    </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>
    <TD colspan="5"><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">Annual Financial Statements</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>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Independent Auditors&#146; Report
    </FONT></DIV>
    </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-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">Combined Balance Sheets at June&nbsp;30, 2000 and
    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">F-11</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">Combined Income Statements Before Partner
    Distributions and Benefits for the years ended June&nbsp;30,
    1999, 2000 and 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">F-12</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">Combined Statements of Cash Flows for the years
    ended June&nbsp;30, 1999, 2000 and 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">F-13</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">Combined Statements of Changes in the PwC Network
    Investment and Comprehensive Income for the years ended
    June&nbsp;30, 1999, 2000 and 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">F-14</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 the Combined 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-15</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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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

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

<DIV align="center">
<B><FONT size="2">(A Business Unit of the PricewaterhouseCoopers
Network of Firms)</FONT></B>
</DIV>

<DIV>&nbsp;</DIV>

<!-- link1 "COMBINED BALANCE SHEETS" -->
<DIV align="left"><A NAME="066"></A></DIV>

<DIV align="center">
<B><FONT size="2">COMBINED BALANCE SHEETS</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(In thousands)</FONT></B>
</DIV>

<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="63%"><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="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>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">June 30,</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">March 31,</FONT></B></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>
</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>
</TR>

<TR>
    <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 valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="11" 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>
</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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">110,204</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">115,193</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">Short-term investments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,151</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">13,724</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 receivable (net of allowances of $84,262
    and $60,267 at June&nbsp;30, 2001 and March&nbsp;31, 2002,
    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">1,264,946</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,013,310</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">Unbilled receivables
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">154,001</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">188,774</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">Amounts due from the PwC Network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,446</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">58,024</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">Prepaid 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">90,225</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">108,566</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>

</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 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">1,634,973</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,497,591</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>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Investments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,360</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,746</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">137,619</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">145,451</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">Goodwill, 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">151,063</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">117,908</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">Other non-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">55,484</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">41,472</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>

</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 non-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">353,526</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">309,577</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>

</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 assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,988,499</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,807,168</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>

</TR>

<TR>
    <TD colspan="11" align="center" valign="top">
    <B><FONT size="2">Liabilities and PwC Network
    Investment</FONT></B></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">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>
</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 payable and accrued liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">161,611</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">183,106</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">Accrued payroll and related benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">103,365</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">95,183</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">Short-term bank borrowings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29,223</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">71,611</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">Current portion of 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">6,506</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,103</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">Amounts due to the PwC Network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,019,051</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">891,505</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>

</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 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">1,319,756</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,245,508</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>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long-term 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>
</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">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">49,888</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">52,455</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">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">115,821</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">79,950</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>

</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 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">165,709</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">132,405</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">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>
</TR>

<TR>
    <TD colspan="11"><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">PwC Network investment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">503,034</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">429,255</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>

</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 and the PwC Network investment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,988,499</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,807,168</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>

</TR>

</TABLE>
</CENTER>

<P align="left">
<I><FONT size="2">The accompanying notes are an integral part of
these financial statements.</FONT></I>

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

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

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

<DIV align="center">
<B><FONT size="2">(A Business Unit of the PricewaterhouseCoopers
Network of Firms)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">COMBINED INCOME STATEMENTS</FONT></B>

<DIV align="center">
<B><FONT size="2">BEFORE PARTNER DISTRIBUTIONS AND
BENEFITS</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(In thousands)</FONT></B>
</DIV>

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

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="67%"><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="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="7"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Nine Months Ended</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">March&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></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">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</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">(Unaudited)</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">Revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,637,753</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,005,260</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 services*
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,891,832</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,524,357</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">Reimbursables and subcontractor 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">1,141,532</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,041,011</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 cost of services*
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,033,364</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,565,368</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">Selling, general and administrative 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">1,157,117</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">965,839</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">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">42,995</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44,817</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">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">404,277</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">429,236</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 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">1,914</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,544</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">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">(44,914</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">(33,616</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">Other income&nbsp;(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">(7,910</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">98</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">Income before partner distributions and benefits*
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">353,367</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">400,262</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>

<DIV align="left">
<HR size="1" width="15%" 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">Excludes payments for partner distributions and
    benefits
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<I><FONT size="2">The accompanying notes are an integral part of
these financial statements.</FONT></I>

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

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

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

<DIV align="center">
<B><FONT size="2">(A Business Unit of the PricewaterhouseCoopers
Network of Firms)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">COMBINED STATEMENTS OF CASH FLOWS</FONT></B>

<DIV align="center">
<B><FONT size="2">(In thousands)</FONT></B>
</DIV>

<CENTER>
<TABLE width="70%" 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="63%"><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>
</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">Nine Months Ended</FONT></B></TD>
</TR>

<TR>
    <TD colspan="4"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">March 31,</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" 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>
</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">(Unaudited)</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>
</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">Income before partner distributions and benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">353,367</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">400,262</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 to net cash provided by
    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>
</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">86,874</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">82,188</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">Net realized (gain)/loss on disposal of
    investments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,911</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(98</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">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">3,940</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,646</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">Allowance for bad debts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">63,680</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,109</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">Changes in assets and 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>
</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">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">(13,925</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">230,526</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">Unbilled receivables
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,612</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(34,773</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">Amounts due from the PwC Network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">489</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(45,578</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">Prepaid 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">(2,203</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">(18,341</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">Other 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">(18,489</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">14,012</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">Accounts payable and accrued 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">56,898</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,495</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">Accrued payroll and related benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,246</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">(8,182</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">Amounts due to the PwC Network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">141,092</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(55,953</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>

</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">Net cash provided by 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">692,000</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">620,313</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 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>
</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">Purchase 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">(74,356</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">(49,593</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 sale 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">722</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">152</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">Purchases of investments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(4,831</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</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 sale of investments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,509</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">813</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">Purchase of available for sale 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">(5,155</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">Proceeds from sale of available for sale
    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">11,051</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="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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net cash 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">(69,060</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">(48,650</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>

</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>
</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">Amounts due to the PwC Network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">115,153</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">(79,039</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 line of credit and issuance of
    short-term bank borrowings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,114</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">52,789</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">Payments on line of credit and short-term bank
    borrowings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(60,483</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">(11,101</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">(56,660</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">(35,871</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">Proceeds from issuance of 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">17,218</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,742</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">Payments on 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">(15,854</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">(5,878</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">Activity in PwC Network investment, 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">(635,476</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">(493,368</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>

</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">Net cash used in 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">(602,988</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">(565,726</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>

</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Effect of foreign exchange rate changes on 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">4,058</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(948</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>

</TR>

<TR>
    <TD colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Net increase 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">24,010</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">4,989</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 and cash equivalents, beginning of 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">74,352</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">110,204</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 colspan="4" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Cash and cash equivalents, end of period
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">98,362</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">115,193</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="left">
<I><FONT size="2">The accompanying notes are an integral part of
these financial statements.</FONT></I>

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

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

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

<DIV align="center">
<B><FONT size="2">(A Business Unit of the PricewaterhouseCoopers
Network of Firms)</FONT></B>
</DIV>

<DIV>&nbsp;</DIV>

<!-- link2 "NOTES TO THE COMBINED FINANCIAL STATEMENTS" -->
<DIV align="left"><A NAME="067"></A></DIV>

<DIV align="center">
<B><FONT size="2">NOTES TO THE COMBINED FINANCIAL
STATEMENTS</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(In thousands)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(unaudited)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basis of
Presentation</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The accompanying unaudited interim combined
financial statements of PwC Consulting are prepared pursuant to
the rules and regulations of the Securities and Exchange
Commission (&#147;SEC&#148;) and accounting principles generally
accepted in the United States of America (&#147;U.S. GAAP&#148;)
regarding interim reporting. As such, these unaudited interim
combined financial statements do not include all the information
and disclosures required by U.S. GAAP for annual financial
statements and should be read in conjunction with the annual
combined financial statements and notes thereto included within
this prospectus. These unaudited interim combined financial
statements do reflect all adjustments (consisting solely of
normal, recurring adjustments) which are, in the opinion of
management, necessary for a fair presentation of results for
these periods.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">These combined financial statements include the
financial position, results of operations and cash flows of all
firms that comprise the PricewaterhouseCoopers network of firms
around the world (the &#147;PwC Network&#148;) which have
management consulting and technology services that are under
common management oversight. PwC Consulting&#146;s management
consulting and technology services include strategic change,
customer relationship management, financial management, human
capital, supply chain and operations, information technology and
application management and business process management services.
All material inter-firm balances and transactions have been
eliminated. These combined financial statements have been
derived from the overall books and records of the PwC Network.
Accordingly, assumptions and allocations have been made which
are estimates, as further described in Note&nbsp;4 of PwC
Consulting&#146;s annual combined financial statements included
within this prospectus and Note&nbsp;4 within these unaudited
interim combined financial statements. Management believes that
the assumptions and allocations underlying these financial
statements are reasonable. Management does not believe, however,
that it is practical to estimate what these expenses would have
been had PwC Consulting operated as an independent entity,
including any expenses associated with obtaining any of these
services from unaffiliated entities. As a result, the combined
financial statements presented do not reflect the assets and
liabilities or income before partner distributions and benefits
had PwC Consulting operated as a separate corporate entity. The
results of operations for the nine months ended March&nbsp;31,
2002, are not necessarily indicative of the results that may be
expected for the fiscal year ending June&nbsp;30, 2002.
</FONT>

<P align="left">
<B><FONT size="2">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive
Income</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The components of comprehensive income for the
nine month periods ended March&nbsp;31, 2001 and 2002,
respectively, are as follows:
</FONT>

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

<TR>
    <TD width="74%"><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="4%"><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>
</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">Income before partner distributions and benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">353,367</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">400,262</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">Foreign currency translation adjustments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,058</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(948</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Unrealized (losses) gains on available for sale
    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">(19,180</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">6,573</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 align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Total comprehensive income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">338,245</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">405,887</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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Activity in the PwC Network investment, net for
the nine months ended March&nbsp;31, 2001 and 2002 was $629,952
and $479,666, respectively.
</FONT>

<P align="left">
<B><FONT size="2">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment
Reporting</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Operating segments are defined as components of
an enterprise for which separate financial information is
regularly available and evaluated by the chief operating
decision maker, or decision making group, in deciding how to
allocate resources and in assessing performance. PwC
Consulting&#146;s chief operating decision making
</FONT>

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

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

<DIV align="center">
<B><FONT size="2">PwC CONSULTING</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(A Business Unit of the PricewaterhouseCoopers
Network of Firms)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO THE COMBINED FINANCIAL
STATEMENTS&#151;(Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In thousands)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(unaudited)</FONT></B>
</DIV>

<P align="left">
<FONT size="2">group is the PwC Consulting Global Executive
Committee, which is chaired by the PwC Consulting Chief
Executive Officer.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">PwC Consulting&#146;s reportable operating
segments are the following four geographic units: the Americas,
comprised of the United States, Canada and Mexico; EMEA,
comprised of Europe, the Middle East and Africa; Asia Pacific,
principally comprised of Japan, Australia and East Asia; and
SOACAT, principally comprised of Brazil, Argentina, Chile and
Columbia. These geographical units are managed separately and
represent countries or regions in which PwC Consulting serves
clients in that part of the world.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">PwC Consulting evaluates performance of its
operating segments based on &#147;contribution to profit,&#148;
a measure that excludes certain global and other costs from
operating income. In general, the accounting policies for the
operating segments are the same as those described in the
summary of significant accounting policies as disclosed in PwC
Consulting&#146;s annual combined financial statements and notes
included within this prospectus, except for those noted and
shown in the reconciliations below. Expenses are allocated to
PwC Consulting by the PwC Network pursuant to the policies in
Note&nbsp;4 of PwC Consulting&#146;s annual combined financial
statements included within this prospectus. There are no
material inter-segment revenues.
</FONT>

<P align="left">
<B><FONT size="2">Net Revenues*</FONT></B>

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

<TR>
    <TD width="70%"><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="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></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Nine Months Ended</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">March&nbsp;31,</FONT></B></TD>
</TR>

<TR>
    <TD></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">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</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">Americas
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,393,721</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,957,882</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">EMEA
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,570,096</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,543,517</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">Asia Pacific
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">373,597</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">362,124</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">SOACAT
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">77,248</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">62,136</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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,414,662</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,925,659</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">
<HR size="1" width="15%" 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">Net of reimbursable expenses and subcontractor
    costs.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Contribution to Profit</FONT></B>

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

<TR>
    <TD width="74%"><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="4%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

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

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Nine Months Ended</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">March 31,</FONT></B></TD>
</TR>

<TR>
    <TD></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">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</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">Americas
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">364,546</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">444,897</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">EMEA
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">352,558</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">288,089</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">Asia Pacific
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">38,783</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,634</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">SOACAT
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,334</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">726</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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">757,221</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">767,346</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-6
</FONT>

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

<DIV align="center">
<B><FONT size="2">PwC CONSULTING</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(A Business Unit of the PricewaterhouseCoopers
Network of Firms)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO THE COMBINED FINANCIAL
STATEMENTS&#151;(Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In thousands)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(unaudited)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">Depreciation &#38; Amortization</FONT></B>

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

<TR>
    <TD width="75%"><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>
</TR>

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

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Nine Months Ended</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">March 31,</FONT></B></TD>
</TR>

<TR>
    <TD></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">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</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">Americas
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,882</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">13,859</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">EMEA
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,619</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">26,192</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">Asia Pacific
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,694</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">7,248</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">SOACAT
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">610</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,220</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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">58,805</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">48,519</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">Interest Expense</FONT></B>

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

<TR>
    <TD width="75%"><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>
</TR>

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

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Nine Months Ended</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">March 31,</FONT></B></TD>
</TR>

<TR>
    <TD></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">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</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">Americas
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30,076</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,085</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">EMEA
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29,911</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,414</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">Asia Pacific
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,387</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,561</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">SOACAT
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,526</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,852</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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">66,900</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">52,912</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>

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

<TR>
    <TD width="70%"><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="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></TD>
    <TD></TD>
    <TD colspan="7"></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">Nine Months Ended</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">March 31,</FONT></B></TD>
</TR>

<TR>
    <TD></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">2001</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2002</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">Segment net revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,414,662</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,925,659</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">Global adjustments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,879</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">17,481</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">Reclassification of the allowance for bad debts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">63,680</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,109</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">Reimbursables and subcontractor 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">1,141,532</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,041,011</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 align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Combined revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,637,753</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,005,260</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>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="9"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Segment contribution to profit
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">757,221</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">767,346</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">Global 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">(304,890</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">(188,543</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">Global PwC Network allocations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(116,500</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">(133,696</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</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 adjustments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">68,446</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(15,871</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">Combined operating income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">404,277</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">429,236</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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Global adjustments represent internal reconciling
items related to revenues between the PwC Network and PwC
Consulting which have not been allocated to the operating
segments. For internal reporting purposes, the allowance for bad
debts is included in revenues. This differs from combined
revenues as the allowance for bad debts is included in selling,
general and administrative expenses.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Global costs represent global PwC Consulting
costs that have not been allocated to the operating segments.
These include global training, service and support staff, and
business development activities. Global PwC Network allocations
represent allocations which are not included in the calculation
of contribution profit reviewed by the chief operating decision
making group. These allocations include global financial
management
</FONT>

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

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

<DIV align="center">
<B><FONT size="2">PwC CONSULTING</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(A Business Unit of the PricewaterhouseCoopers
Network of Firms)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO THE COMBINED FINANCIAL
STATEMENTS&#151;(Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In thousands)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(unaudited)</FONT></B>
</DIV>

<P align="left">
<FONT size="2">costs and global marketing costs. Other
adjustments primarily represent adjustments to conform the
internal measure of contribution to profit to U.S.&nbsp;GAAP.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">With respect to depreciation and amortization,
the difference between the segment totals and the combined
totals relates to the amortization of goodwill that has not been
allocated to the operating segments. Goodwill allocated to the
operating segments consists of acquisitions initiated by the
operating segments. Goodwill not allocated to the operating
segments consists primarily of the goodwill associated with the
merger of firms in the Coopers &#38; Lybrand and Price
Waterhouse networks as discussed in Note&nbsp;3 of PwC
Consulting&#146;s annual combined financial statements included
within this prospectus.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">With respect to segment interest expense, the
amount allocated to the operating segments is an imputed amount.
It is used to measure the operating segment&#146;s ability to
manage accounts receivable, based primarily on accounts
receivable outstanding for the operating segment. This differs
from the combined interest expense which represents the interest
expense allocated to PwC Consulting by the PwC Network based on
short-term and long-term debt as discussed in Note&nbsp;4 of PwC
Consulting&#146;s annual combined financial statements included
within this prospectus.
</FONT>

<P align="left">
<B><FONT size="2">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transactions
with the PwC Network</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For the nine months ended March&nbsp;31, 2001 and
2002, revenues included approximately $178,362 and $113,232,
respectively, related to professional services provided to other
PwC Network business units. Additionally, included in cost of
services is approximately $131,362 and $78,232, respectively,
related to professional services received from other PwC Network
business units.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The PwC Network provides various services and
infrastructure to member firms in a country or a region and on a
global basis to PwC Consulting including occupancy, technology
services, finance and planning, human resources, marketing and
business development, risk management and practice protection,
firm-wide management and new product development. Historically,
the methods of allocating these centralized costs to PwC
Consulting include relative revenues, headcount, square footage
or other bases. Total allocated costs for these services
approximate $635,000 for the nine months ended March&nbsp;31,
2001.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Effective July&nbsp;1, 2001, on a
country-by-country or regional basis, the PwC network agreed to
certain arrangements relating to the provision of these various
services to PwC Consulting by the PwC Network which were
historically performed on a centralized basis for the benefit of
all PwC Network business units and allocated to PwC Consulting.
In addition, certain marketing and business development, risk
management and other management activities previously provided
centrally by the PwC Network and allocated to PwC Consulting
became the direct responsibility of PwC Consulting as a result
of the transfer of the related personnel and cost management
responsibilities.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">These services agreements include the following
functions: occupancy, technology services, finance and planning,
human resources, training and risk management and practice
protection. Under the services agreements, the PwC Network
allocates such costs to PwC Consulting on the basis of actual
usage (specific identification), when available, or a reasonable
substitute such as relative revenues, headcount, square footage
or other bases. The allocation of costs to PwC Consulting for
such services is based on the actual costs incurred by the PwC
Network.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In addition, the costs of certain other services
and activities provided by the PwC Network, including firmwide
management, the PwC Network brand management and marketing, and
other services related to running a multidisciplinary
professional services partnership, are allocated to PwC
Consulting. The allocation of these costs to PwC Consulting was
mutually agreed upon by the PwC Network and PwC Consulting and
is based on the relative benefit received from the related
activities. The methods of allocating these costs include
</FONT>

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

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

<DIV align="center">
<B><FONT size="2">PwC CONSULTING</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(A Business Unit of the PricewaterhouseCoopers
Network of Firms)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO THE COMBINED FINANCIAL
STATEMENTS&#151;(Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In thousands)</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(unaudited)</FONT></B>
</DIV>

<P align="left">
<FONT size="2">net revenues, headcount or other bases which
management considers to be reasonable. The allocation of costs
to PwC Consulting for such services is based on the actual costs
incurred by the PwC Network.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">All of the services and infrastructure provided
by the PwC Network to PwC Consulting are charged to the income
statement with a corresponding credit directly to the &#147;PwC
Network investment&#148; account, on the basis that cash
generated by PwC Consulting is distributed to the PwC Network
for the settlement of commonly incurred liabilities,
acquisitions of common assets, and distributions to the PwC
Network partners. The amounts charged by the PwC Network to PwC
Consulting for the provision of services under the service
agreements described above approximate $335,000 for the nine
months ended March&nbsp;31, 2002. The amounts allocated by the
PwC Network to PwC Consulting for certain other services and
activities described above approximate $175,000. The
implementation of the new arrangements of allocating costs for
services provided by the PwC Network to PwC Consulting increased
income before partner distributions and benefits by $26,000 for
the nine month period ended March&nbsp;31, 2002.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under the prior method of allocating costs for
services provided by the PwC Network to PwC Consulting, the
total allocation to PwC Consulting would approximate $536,000.
</FONT>

<P align="left">
<B><FONT size="2">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee
Benefit Plans</FONT></B>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Defined
Benefit Retirement and Postretirement Benefit
Plans</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The cost allocated to PwC Consulting for defined
benefit plans included within cost of services is approximately
$28,000 and $30,000 for the nine months ended March&nbsp;31,
2001 and 2002, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For the nine months ended March&nbsp;31, 2001 and
2002, PwC Consulting recognized approximately $7,000 and
$11,000, respectively, of expense related to postretirement
benefits.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Defined
Contribution Plans</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The costs allocated to PwC Consulting for defined
contribution plans included in compensation are approximately
$28,127 and $34,243 for the nine months ended March&nbsp;31,
2001 and 2002, respectively.
</FONT>

<P align="center"><FONT size="2">F-9
</FONT>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center">
<B><FONT size="2">INDEPENDENT AUDITORS&#146; REPORT</FONT></B>

<P align="left">
<FONT size="2">To PwCC Limited* and its Board of
</FONT>

<DIV align="left">
<FONT size="2">Directors, to the Partners of
</FONT>
</DIV>

<DIV align="left">
<FONT size="2">PricewaterhouseCoopers International Limited
</FONT>
</DIV>

<DIV align="left">
<FONT size="2">and its member firms and to
</FONT>
</DIV>

<DIV align="left">
<FONT size="2">Monday SCA
</FONT>
</DIV>

<DIV align="left">
<FONT size="2">c/o PricewaterhouseCoopers LLP
</FONT>
</DIV>

<DIV align="left">
<FONT size="2">New York, NY
</FONT>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We have audited the accompanying combined balance
sheets of PwC Consulting, the management consulting and
technology services businesses of the firms that comprise the
PricewaterhouseCoopers network of firms around the world (the
&#147;PwC Network&#148;) that are under common management, as of
June&nbsp;30, 2000 and 2001, and the related combined income
statements before partner distributions and benefits, cash flows
and changes in the PwC Network investment and comprehensive
income for the three years in the period ended June&nbsp;30,
2001. These financial statements are the responsibility of PwC
Consulting&#146;s management. Our responsibility is to express
an opinion on these financial statements based on our audits.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">We conducted our audits in accordance with
auditing standards generally accepted in the United States of
America. Those standards 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. An audit also includes
assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In our opinion, such combined financial
statements present fairly, in all material respects, the
combined financial position of PwC Consulting as of
June&nbsp;30, 2000 and 2001, and the combined results of its
operations before partner distributions and benefits and its
combined cash flows for the three years in the period ended
June&nbsp;30, 2001 in conformity with accounting principles
generally accepted in the United States of America.
</FONT>

<P align="left">
<FONT size="2">Deloitte&nbsp;&#38; Touche LLP
</FONT>

<DIV align="left">
<FONT size="2">New York, New York
</FONT>
</DIV>

<DIV align="left">
<FONT size="2">May&nbsp;1, 2002 (June&nbsp;30, 2002 as to the
anticipated issuance of
</FONT>
</DIV>

<DIV align="left">
<FONT size="2">Premium Equity Participating Security Units
</FONT>
</DIV>

<DIV align="left">
<FONT size="2">as described in Note&nbsp;13)
</FONT>
</DIV>

<DIV align="left">

</DIV>

<P align="left">
<HR size="1" width="25%" align="left" noshade>

<DIV align="left">
<FONT size="2">*PwCC Limited changed its name to Monday Ltd on
June&nbsp;10, 2002. <BR>
</FONT>
</DIV>

<P align="center"><FONT size="2">F-10
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

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

<DIV align="center">
<B><FONT size="2">(A Business Unit of the PricewaterhouseCoopers
Network of Firms)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">COMBINED BALANCE SHEETS</FONT></B>

<DIV align="center">
<B><FONT size="2">(In thousands)</FONT></B>
</DIV>

<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="62%"><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="7%"><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="7"></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">June 30,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" 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">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</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>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="7" align="center" valign="top">
    <B><FONT size="2">Assets</FONT></B></TD>
    <TD><FONT size="2">&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">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>
</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">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">74,352</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">110,204</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">Short-term investments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44,174</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,151</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">Accounts receivable (net of allowances of $44,781
    and $84,262 at June&nbsp;30, 2000 and 2001, 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">1,337,636</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,264,946</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">Unbilled receivables
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">252,068</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">154,001</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">Amounts due from the PwC Network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,286</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,446</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">Prepaid 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">97,460</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">90,225</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>

</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 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">1,830,976</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">1,634,973</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>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Investments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,809</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">9,360</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">99,097</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">137,619</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">Goodwill, 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">214,584</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">151,063</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">Other non-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">43,558</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">55,484</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>

</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 non-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">368,048</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">353,526</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>

</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 assets
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,199,024</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,988,499</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>

</TR>

<TR>
    <TD colspan="7" align="center" valign="top">
    <B><FONT size="2">Liabilities and PwC Network
    Investment</FONT></B></TD>
    <TD><FONT size="2">&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">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>
</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 payable and accrued liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">153,166</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">161,611</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">Accrued payroll and related benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">87,207</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">103,365</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">Short-term bank borrowings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">74,819</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29,223</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">Current portion of 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">11,814</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,506</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">Amounts due to the PwC Network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,085,443</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,019,051</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>

</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 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">1,412,449</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,319,756</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>

</TR>

<TR>
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Long-term 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>
</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">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">41,088</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">49,888</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">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">178,269</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">115,821</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>

</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 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">219,357</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">165,709</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">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>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">PwC Network investment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">567,218</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">503,034</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>

</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 and the PwC Network investment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,199,024</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,988,499</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>

</TR>

</TABLE>
</CENTER>

<P align="left">
<I><FONT size="2">The accompanying notes are an integral part of
these financial statements.</FONT></I>

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

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

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

<DIV align="center">
<B><FONT size="2">(A Business Unit of the PricewaterhouseCoopers
Network of Firms)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">COMBINED INCOME STATEMENTS</FONT></B>

<DIV align="center">
<B><FONT size="2">BEFORE PARTNER DISTRIBUTIONS AND
BENEFITS</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(In thousands)</FONT></B>
</DIV>

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

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="56%"><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>
    <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>
</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">Year Ended June 30,</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">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>
</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">Revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,230,609</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,130,959</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">7,481,003</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 services*
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,964,870</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,501,153</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">3,825,639</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">Reimbursables and subcontractor 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">1,212,798</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">1,341,290</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,516,429</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>

</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 cost of services*
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,177,668</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,842,443</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,342,068</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">Selling, general and administrative 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">1,408,261</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,595,085</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,586,126</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">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">46,946</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">54,911</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">57,007</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>

</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">597,734</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">638,520</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">495,802</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 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">2,816</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,918</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,553</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">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">(34,816</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">(47,918</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">(58,553</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">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">&#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">11,619</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">(15,618</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 colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Income before partner distributions and benefits*
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">565,734</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">604,139</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">424,184</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>

</TR>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="15%" 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">Excludes payments for partner distributions and
    benefits.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<I><FONT size="2">The accompanying notes are an integral part of
these financial statements.</FONT></I>

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

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

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

<DIV align="center">
<B><FONT size="2">(A Business Unit of the PricewaterhouseCoopers
Network of Firms)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">COMBINED STATEMENTS OF CASH FLOWS</FONT></B>

<DIV align="center">
<B><FONT size="2">(In thousands)</FONT></B>
</DIV>

<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="55%"><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>
    <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="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">Year Ended June 30,</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">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>
</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 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">Income before partner distributions and benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">565,734</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">604,139</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">424,184</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 to net cash provided by
    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">87,384</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">96,421</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">121,652</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">Net realized (gain)/loss on disposal of
    investments
    </FONT></DIV>
    </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">(11,619</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">15,618</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">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">24,879</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,337</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,908</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">Allowance for bad debts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">56,803</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,216</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">94,419</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">Noncash 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">(282</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">(6,486</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">(250</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">Changes in assets and 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>
    <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">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">(257,246</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">(255,706</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">(46,235</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">Unbilled receivables
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(178,472</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">78,273</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">101,662</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">Amounts due from the PwC Network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(11,211</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">11,775</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">12,223</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">Prepaid 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">(7,017</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">(53,323</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">7,231</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">Other 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">(577</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">(7,651</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">(11,734</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">Accounts payable and accrued 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">62,078</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">23,931</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">8,541</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">Accrued payroll and related benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,600</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">19,707</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">16,158</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">Amounts due to the PwC Network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,320</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">50,795</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">28,176</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><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">Net cash provided by 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">365,993</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">582,809</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">780,553</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">Purchase of business, net of cash acquired
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(45,372</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">(23,530</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">(2,800</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">Purchase 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">(51,002</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">(77,227</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">(116,584</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 sale 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">59</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,336</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">879</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">Purchases of investments
    </FONT></DIV>
    </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">(4,042</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">(5,395</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 sale of investments
    </FONT></DIV>
    </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">3,863</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">Purchase of available for sale 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">(12,960</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">(5,155</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 sale of available for sale
    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">23,724</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">Net cash 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">(96,315</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">(102,423</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">(101,468</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">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">Amounts due to the PwC Network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">90,150</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">141,549</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">(92,871</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 line of credit and issuance of
    short-term bank borrowings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,377</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44,707</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">56,181</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">Payments on line of credit and short-term bank
    borrowings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(5,498</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">(12,109</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">(101,077</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">114,160</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,474</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">(62,448</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">Proceeds from issuance of 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">5,365</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">49,502</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,967</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">Payments on 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">(1,095</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">(2,854</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">(8,175</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">Activity in PwC Network investment, 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">(485,670</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">(669,444</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">(451,844</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><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">Net cash used in 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">(261,211</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">(446,175</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">(649,267</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">Effect of foreign exchange rate changes on 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">(988</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">805</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,034</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 increase 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">7,479</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">35,016</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">35,852</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 and cash equivalents, beginning of 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">31,857</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">39,336</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">74,352</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 and cash equivalents, end of 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">39,336</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">74,352</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">110,204</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">Supplementary cash flow information:
    </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 paid on PwC Consulting specific debt
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,235</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">4,434</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">14,285</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="left">
<I><FONT size="2">The accompanying notes are an integral part of
these financial statements.</FONT></I>

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

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

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

<DIV align="center">
<B><FONT size="2">(A Business Unit of the PricewaterhouseCoopers
Network of Firms)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">COMBINED STATEMENTS OF CHANGES IN THE PwC
NETWORK INVESTMENT AND</FONT></B>

<DIV align="center">
<B><FONT size="2">COMPREHENSIVE INCOME</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(In thousands)</FONT></B>
</DIV>

<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="47%"><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="7%"><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="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"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Accumulated</FONT></B></TD>
    <TD></TD>
    <TD colspan="3"></TD>
</TR>

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

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

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Investment</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Income/(Loss)</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Investment</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">Balances as of June&nbsp;30, 1998
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">490,684</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</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">490,684</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">Components of comprehensive income:
    </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">Income before partner distributions and benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">565,734</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">565,734</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">Foreign currency translation adjustment
    </FONT></DIV>
    </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">(988</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">(988</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><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</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 comprehensive 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">&#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">564,746</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">Activity in the PwC Network investment, 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">(486,786</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">(486,786</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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Balances at June&nbsp;30, 1999
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">569,632</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(988</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">568,644</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">Components of comprehensive income:
    </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">Income before partner distributions and benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">604,139</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></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">604,139</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">Foreign currency translation adjustment
    </FONT></DIV>
    </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">805</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">805</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">Unrealized gain on available for sale 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">10,629</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,629</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><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</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 comprehensive 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">&#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">615,573</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">Activity in PwC Network investment, 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">(616,999</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">(616,999</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" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Balance at June&nbsp;30, 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">556,772</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">10,446</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">567,218</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">Components of comprehensive income:
    </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">Income before partner distributions and benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">424,184</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">&#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">424,184</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">Foreign currency translation adjustment
    </FONT></DIV>
    </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">6,034</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,034</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">Unrealized loss on available for sale 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">(10,067</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">(10,067</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><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</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 comprehensive 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">&#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">420,151</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">Activity in PwC Network investment, 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">(484,335</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">(484,335</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 colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Balances at June&nbsp;30, 2001
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">496,621</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,413</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">503,034</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">
<I><FONT size="2">The accompanying notes are an integral part of
these financial statements.</FONT></I>

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

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

<DIV align="center">
<B><FONT size="2">(A Business Unit of the PricewaterhouseCoopers
Network of Firms)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO THE COMBINED FINANCIAL
STATEMENTS</FONT></B>

<DIV align="center">
<B><FONT size="2">(In thousands, except share data)</FONT></B>
</DIV>

<P align="left">
<B><FONT size="2">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nature of
Operations</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">PwC Consulting refers to the management
consulting and technology services businesses of the firms that
comprise the PricewaterhouseCoopers network of firms around the
world (the &#147;PwC Network&#148;) that are under common
management. PwC&#146;s Consulting&#146;s management consulting
and technology services include strategic change, customer
relationship management, financial management, human capital,
supply chain and operations, information technology and
application management and business process management services.
PwC Consulting provides management consulting and technology
services, including business process management services, to
businesses, governments and other organizations. The PwC
Consulting business is comprised of the various PwC Consulting
businesses of each of the respective PwC Network firms, as more
fully described below. PwC Consulting has businesses around the
world with the most significant operations in the United States,
United Kingdom and Germany.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">As a business unit of the PwC Network, the
majority of the individual PwC Consulting businesses (in terms
of revenues, expenses and assets) are conducted as separate
businesses within the respective PwC firms, with such businesses
having no separate legal status. Certain individual PwC
Consulting businesses in various countries operate through
separate legal entities. Accordingly, the assets associated with
PwC Consulting that are presented in the accompanying combined
balance sheets are by and large legally subject to all the
obligations of the respective firms in the PwC Network, not
solely to the liabilities appearing in the accompanying combined
balance sheets.
</FONT>

<P align="left">
<B><FONT size="2">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basis of
Presentation</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The combined financial statements of PwC
Consulting are prepared in accordance with accounting principles
generally accepted in the United States of America (&#147;U.S.
GAAP&#148;). The combined financial statements include the
financial position, results of operations and cash flows of all
firms in the PwC Network which have management consulting and
technology services businesses that are under common management
oversight. All material inter-firm balances and transactions
have been eliminated.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">These combined financial statements have been
derived from the books and records of the PwC Network.
Accordingly, assumptions and allocations have been made which
are estimates. See Note&nbsp;4 for a discussion of allocated
costs and the PwC Network&#146;s investment. Management believes
that the assumptions and allocations underlying these financial
statements are reasonable. Management does not believe, however,
that it is practical to estimate what these expenses would have
been had PwC Consulting operated as an independent entity,
including any expenses associated with obtaining any of these
services from unaffiliated entities. Additionally, all of the
PwC Network firms are either a partnership where earnings are
allocable to its partners and principals or a corporation
operated in a manner similar to that of a partnership. Also,
partnership distributions are not executive compensation in the
customary sense of that term because partnership distributions
are comprised of distributions of current earnings. As a result,
it is not practical to differentiate the ownership components of
distributions to partners and shareholders from the compensation
components of such distributions. As a result, the combined
financial statements presented do not reflect the assets and
liabilities or income before partner distributions and benefits
had PwC Consulting operated as a separate public company.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>The
Merger of Coopers &#38; Lybrand and Price Waterhouse Global
Networks</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Effective July&nbsp;1, 1998, substantially all of
the various professional services firms comprising the global
networks of Coopers&nbsp;&#38; Lybrand and Price Waterhouse
combined on a country-by-country or regional basis and
established a new global network of combined firms that comprise
PwC. The PwC Network adopted a
</FONT>

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

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<DIV align="center">
<B><FONT size="2">PwC CONSULTING</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(A Business Unit of the PricewaterhouseCoopers
Network of Firms)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO THE COMBINED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In thousands, except share data)</FONT></B>
</DIV>

<P align="left">
<FONT size="2">coordinated strategy, branding and standard of
operations on a global basis under a common global management
team.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">These combinations of partners&#146; book capital
interests have been accounted for as a combination at
predecessor basis as of the date of combination. Individual
firms representing over 80% of PwC Consulting revenues were in
the form of partnerships prior to and following the
combinations. In the combinations of these partnerships neither
predecessor partner group received a partnership interest that
represents a fair value residual equity interest in the combined
partnerships. Partners rights are limited to the amount of their
book capital contributed and any allocated but undistributed
profits. These partners continued to maintain their same book
capital account in the combined partnership and agreed to share
profits in the combined firm on the same basis as prior to the
combination.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The remaining firms were primarily in the form of
corporations and the combinations were deemed to be an
acquisition of one firm by the other as purchases under the
Accounting Principles Board&#146;s (APB)&nbsp;Opinion&nbsp;16,
&#147;Business Combinations.&#148; The determination of the
accounting acquirer in each country was determined based on the
number of partners in the respective firms and the relative
sizes of the firms. The purchase price for such transactions was
based on the estimated fair value of the deemed acquired entity
based on values established in comparable transactions.
Additionally, in one country, the firms agreed to join the PwC
Network without a legal combination in their respective country.
These firms, while not material, are included at their
historical basis of accounting.
</FONT>

<P align="left">
<B><FONT size="2">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Summary of
Significant Accounting Policies</FONT></B>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash
and Cash Equivalents</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Cash and cash equivalents include demand deposits
and highly liquid investments with an original maturity of three
months or less including time deposits of $27,122 and $41,430 at
June&nbsp;30, 2000 and 2001, respectively. The amounts reflected
in these financial statements only reflect cash and cash
equivalents that are in accounts dedicated to PwC Consulting.
Cash transactions within most countries or regions, however, are
managed on a centralized basis in that country or region and
settled through &#147;Amounts due to the PwC Network&#148; or
&#147;Amounts due from the PwC Network&#148;. Accordingly, these
financial statements do not include cash balances for PwC
Consulting in those countries or regions in which PwC Consulting
does not have a separate cash management function.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fair
Value of Financial Instruments</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">With the exception of marketable securities, all
financial instruments, principally accounts receivable, unbilled
receivables, accounts payable and debt, are stated at historical
cost, which approximates fair value due generally to either
their short-term nature or the variable-rate interest terms of
these instruments. Marketable securities are recorded at fair
value.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property
and Equipment, net</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Property and equipment directly utilized by PwC
Consulting (other than facilities costs) are stated at
historical cost less accumulated depreciation. Depreciation is
computed using the straight-line method over the estimated
useful lives of the assets ranging from three to ten years.
Leasehold improvements are amortized on a straight-line basis
over the remaining useful life of the property or the remaining
term of the lease if shorter. The cost and accumulated
depreciation for property and equipment sold, retired, or
otherwise disposed of are relieved from the accounts, and
resulting gains or losses are reflected in income.
</FONT>

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

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<DIV align="center">
<B><FONT size="2">PwC CONSULTING</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(A Business Unit of the PricewaterhouseCoopers
Network of Firms)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO THE COMBINED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In thousands, except share data)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The PwC Network allocates to PwC Consulting its
applicable portion of facilities costs incurred by the PwC
Network. See Note&nbsp;4 for a discussion of allocated costs.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capitalized
Software Costs</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">PwC Consulting capitalizes certain internal use
computer software costs, after technological feasibility has
been established, which are amortized using the straight-line
method over the economic useful lives of the related software,
not to exceed 5&nbsp;years. The combined balance sheets include
in property and equipment, net capitalized computer software
costs of $40,239 and $45,768 and the corresponding accumulated
amortization of $8,477 and $18,485, as of June&nbsp;30, 2000 and
2001, respectively. Amortization expense totals $1,864, $4,925
and $11,269 for the years ended June&nbsp;30, 1999, 2000 and
2001, respectively.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;Goodwill and Impairment of Long-Lived
Assets</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The cost of acquired companies in excess of the
fair value of net assets acquired at acquisition date is
recorded as goodwill and amortized on a straight line basis over
its estimated useful life, ranging from five to ten years. For
the business combinations between C&#38;L and PW firms accounted
for as a purchase, the excess of purchase price over the fair
value of the net assets acquired was approximately $150,000 and
was recorded as goodwill at the date of such transactions. See
Note 2 for a discussion of the business combinations between
Coopers &#38; Lybrand and Price Waterhouse networks. The merger
in one additional country was consummated as of January&nbsp;1,
2000, which resulted in merger-related goodwill of approximately
$52,000. These amounts are being amortized on a straight-line
basis over five years. The pro forma effect on income before
partner distributions and benefits, assuming the combination of
all Coopers &#38; Lybrand and Price Waterhouse firms had
occurred as of July&nbsp;1, 1999 would increase amortization
expense by approximately $10,000 and $5,000 for the years ended
June&nbsp;30, 1999 and 2000, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Management assesses the impairment of goodwill
and long-lived assets whenever events or significant changes in
circumstances indicate that the carrying value may not be
recoverable. Factors that management considers important that
would cause an impairment review to be performed include
significant underperformance relative to historical results or
to forecasted operating results and significant negative
industry or economic trends. If management determines that the
carrying value of goodwill or long-lived assets may be
potentially impaired based on the existence of one or more of
the previously mentioned factors, the asset is reviewed for
recoverability by comparing the carrying amount of the asset to
the estimated undiscounted future cash flows expected to be
generated by the asset. If the undiscounted cash flows are not
sufficient to fully recover the value of the asset, management
recognizes an impairment loss to the extent that the carrying
value exceeds the fair value. Fair value is based on discounted
estimated future cash flows.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">PwC Consulting investments comprise primarily
public corporate equity securities attributable to PwC
Consulting operations. At June&nbsp;30, 2000 and 2001, all of
PwC Consulting&#146;s marketable securities are classified as
available for sale and included in short-term investments in the
accompanying combined balance sheets. Declines in fair value of
individual securities below their cost that are other than
temporary result in write-downs in the combined income statement
before partner distributions and benefits of the individual
securities to their fair value. Unrealized gains and losses on
these investments are included within other comprehensive income
in the accompanying combined statements of changes in PwC
Network investment and comprehensive income. The cost of
securities sold is determined on an average cost basis.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">PwC Consulting also has certain other minority
investments in nonpublicly traded companies. These investments
are included in non-current investments in the accompanying
combined balance sheets and are
</FONT>

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

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<DIV align="center">
<B><FONT size="2">PwC CONSULTING</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(A Business Unit of the PricewaterhouseCoopers
Network of Firms)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO THE COMBINED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In thousands, except share data)</FONT></B>
</DIV>

<P align="left">
<FONT size="2">carried at cost as PwC Consulting does not
exercise significant influence over the management of these
companies. PwC Consulting monitors these investments for
declines in value and when those declines are considered to be
other than temporary, the carrying value is reduced through a
charge to income. There were no impairment losses on investments
for the years ended June&nbsp;30, 1999 and 2000. During the year
ended June&nbsp;30, 2001, $4,403 is recorded as a loss in the
combined income statement before partner distributions and
benefits as a result of impairments to reduce the carrying value
of investments to PwC Consulting&#146;s estimate of fair value.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision
for Taxes</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Income tax provisions are generally not required
in these financial statements as the firms in the PwC Consulting
Network are primarily in partnership form and the tax effects
accrue directly to its partners. For those limited firms whose
income tax is payable, the expenses associated with those taxes
is reflected in selling, general and administrative costs.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenue
Recognition</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Revenues include all amounts billable to clients.
Revenues are principally recognized as services are provided by
partners and employees of PwC Consulting and subcontractors
working under the authority of PwC Consulting. Revenues are
recognized in the period in which services are rendered.
Reimbursements, including those relating to travel and other
out-of-pocket expenses, as well as subcontractor fees and
expenses are also included in revenues. The impact of revisions
to engagement revenues recognized to date from changes in
expected revenue is recorded in the period in which these
changes become known.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Losses on contracts are recognized during the
period in which the loss first becomes probable and reasonably
estimable. Contract losses are determined to be the amount by
which the estimated service costs of the contract exceed the
estimated total revenues that will be generated by the contract.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Unbilled receivables represent revenues for
services rendered and expenses incurred that have not yet been
billed.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">PwC Consulting also derives revenues from
engagements with incentive-based contracts and other contracts
that condition fees on the ability to deliver certain defined
goals. Revenues from such engagements are insignificant and are
not recognized until a defined goal or milestone is met.
Revenues from computer hardware and software resales, software
licenses and related maintenance fees are not significant.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost
of Services</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Cost of services includes employee compensation
and related benefits for client service staff, the costs of
their recruitment and continuing training, and an allocation of
information technology costs attributable to these staff. Costs
related to research and development activities are expensed as
incurred.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling,
General and Administrative Expenses</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Selling, general and administrative expenses
include general and administrative costs incurred by the PwC
Network and allocated to PwC Consulting and costs incurred
directly by the various countries or regions within PwC
Consulting. Selling, general and administrative costs include
compensation and benefits for non-client service and practice
support personnel; infrastructure expenses including: rent,
depreciation and amortization; legal and professional insurance
costs; new business development activities; information
technology not attributable to client service staff; marketing,
advertising and other firmwide costs.
</FONT>

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

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<DIV align="center">
<B><FONT size="2">PwC CONSULTING</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(A Business Unit of the PricewaterhouseCoopers
Network of Firms)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO THE COMBINED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In thousands, except share data)</FONT></B>
</DIV>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Advertising
Costs</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Advertising costs incurred are expensed in the
period in which the advertising takes place. Total advertising
expenses are $33,079, $10,585 and $22,123 for the years ended
June&nbsp;30, 1999, 2000 and 2001, respectively.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allocated
Costs and Partner Distributions</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The PwC Network provides various services and
infrastructure to member firms in a country or region and on a
global basis. The costs of these services are allocated to PwC
Consulting on bases PwC Consulting management believes to be
reasonable. See Note&nbsp;4 for a discussion of allocated costs.
Additionally, all of the PwC firms are either a partnership
where earnings are allocable to its partners and principals or a
corporation operated in a manner similar to that of a
partnership. Also, partnership distributions are not executive
compensation in the customary sense of that term because
partnership distributions are comprised of distributions of
current earnings. As a result, it is not practical to
differentiate the ownership components of distributions to
partners and shareholders from the compensation components of
such distributions. Accordingly, distributions and benefits for
services rendered by partners and shareholders have not been
reflected in the combined income statements before partner
distributions and benefits.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Earnings
per Share</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">PwC Consulting operates as a series of
partnerships and corporations. There is no single capital
structure upon which to calculate earnings per share
information. Accordingly, earnings per share information is not
presented.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign
Currency Translation</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Assets and liabilities of operations whose
functional currency is other than the United States dollar are
translated at year-end exchange rates. Revenues and expenses of
those operations are translated using average exchange rates
during the period. Foreign currency translation adjustments are
accumulated as a separate component of other comprehensive
income.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit
Risk</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">PwC Consulting provides professional services to
a diversified client base throughout the world. PwC Consulting
performs ongoing credit evaluations of its clients and generally
does not require collateral. Accounts receivables are reviewed
on a periodic basis and an allowance for bad debts is recorded
where such amounts are determined to be uncollectible. Due to
the large number of client accounts and the diversified client
base, across many industries and countries, management does not
believe that a significant concentration of credit risk loss
exists.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Use
of Estimates</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The preparation of financial statements in
conformity with U.S.&nbsp;GAAP requires management to make
estimates and assumptions that affect the reported amounts of
assets and liabilities or the disclosure of contingent assets
and liabilities at the date of these combined financial
statements and reported revenues and expenses during the
reporting period. Actual results could differ from those
estimates.
</FONT>

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

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<DIV align="center">
<B><FONT size="2">PwC CONSULTING</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(A Business Unit of the PricewaterhouseCoopers
Network of Firms)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO THE COMBINED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In thousands, except share data)</FONT></B>
</DIV>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounting
Developments</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In June&nbsp;1998, the Financial Accounting
Standards Board (&#147;FASB&#148;) issued Statement of Financial
Accounting Standard No.&nbsp;133 (&#147;SFAS 133&#148;),
&#147;Accounting for Derivative Instruments and Hedging
Activities&#148; and was adopted by PwC Consulting on
July&nbsp;1, 2000. This statement requires that an entity
recognize all derivatives as either assets or liabilities and
measure those instruments at fair value. The accounting for
changes in the fair value of a derivative instrument depends on
its intended use and the resulting designation. The adoption of
this statement did not have a material impact on these combined
financial statements as PwC Consulting does not have any
material derivative instruments.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In June&nbsp;2001, the FASB approved Statements
of Financial Accounting Standards No.&nbsp;141, &#147;Business
Combinations&#148; (&#147;SFAS&nbsp;141&#148;), and
No.&nbsp;142, &#147;Goodwill and Other Intangible Assets&#148;
(&#147;SFAS&nbsp;142&#148;), which are effective July&nbsp;1,
2001 and July&nbsp;1, 2002, respectively, for PwC Consulting.
SFAS&nbsp;141 requires that the purchase method of accounting be
used for all business combinations initiated after June&nbsp;30,
2001. Under SFAS&nbsp;142, amortization of goodwill will cease.
In lieu of amortization, PwC Consulting will be required to
perform an initial impairment review of goodwill as of
July&nbsp;1, 2002 and an annual impairment review thereafter.
PwC Consulting is in the process of studying the effects of the
application of SFAS&nbsp;142 and cannot predict at this time
whether or not a material impairment charge will be recorded.
Goodwill amortization was $46,946, $54,911 and $57,007 for the
years ended June&nbsp;30, 1999, 2000 and 2001, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In August&nbsp;2001, the FASB issued Statement of
Financial Accounting Standard No.&nbsp;144, &#147;Accounting for
the Impairment or Disposal of Long-Lived Assets&#148;
(&#147;SFAS&nbsp;144&#148;), which addresses financial
accounting and reporting for the impairment or disposal of
long-lived assets and supersedes SFAS No.&nbsp;121,
&#147;Accounting for the Impairment of Long-Lived Assets and for
Long-Lived Assets to be Disposed of,&#148; and the accounting
and reporting provisions of APB Opinion No.&nbsp;30,
&#147;Reporting the Results of Operations for a Disposal of a
Segment of a Business.&#148; SFAS&nbsp;144 is effective for PwC
Consulting beginning July&nbsp;1, 2002. PwC Consulting does not
expect that the adoption will have a significant impact on its
combined financial position and results of operations.
</FONT>

<P align="left">
<B><FONT size="2">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transactions
with the PwC Network</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">In the normal course of business, PwC Consulting
enters into engagements with other PwC Network business units.
Related party revenues include the billing for professional
services provided by PwC Consulting to other PwC Network
business units. The cost of the PwC Consulting services may
ultimately be charged to a third party client or may be to
support an internal infrastructure project. In addition, PwC
Consulting may use the professional services of other PwC
Network business units.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">For the years ended June&nbsp;30, 1999, 2000 and
2001, revenues includes approximately $160,100, $328,600 and
$240,500, respectively, related to professional services
provided to other PwC Network business units. Additionally, cost
of services includes $177,800, $173,100 and $177,500,
respectively, related to professional services received from
other PwC Network business units. These related party
transactions are settled within the &#147;PwC Network
investment.&#148;
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Internal
Costs and Expenses within the PwC Network</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The PwC Network provides various services and
infrastructure to member firms in a country or region and on a
global basis to PwC Consulting including occupancy, technology
services, finance and planning, human resources, marketing and
business development, risk management and practice protection,
firm-wide management, and new product development. These service
and infrastructure costs are charged to the income statement
with a corresponding credit directly to the &#147;PwC Network
investment&#148; account, on the basis that
</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="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PwC CONSULTING</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(A Business Unit of the PricewaterhouseCoopers
Network of Firms)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO THE COMBINED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In thousands, except share data)</FONT></B>
</DIV>

<P align="left">
<FONT size="2">cash generated by PwC Consulting is available to
the PwC Network for the settlement of commonly incurred
liabilities, acquisitions of common assets and distributions to
PwC Network partners. The methods of allocating these
centralized costs to PwC Consulting include relative revenues,
headcount, square footage or other bases. Total allocated costs
approximate $815,000, $1,044,000 and $876,000 for the years
ended June&nbsp;30, 1999, 2000 and 2001, respectively, and are
included in the accompanying combined income statements before
partner distributions and benefits as follows: cost of services
$131,000, $163,000 and $138,000, selling, general and
administrative expenses of $652,000, $835,000 and $682,000 and
net interest expense of $32,000, $46,000 and $56,000,
respectively, for the years ended June&nbsp;30, 1999, 2000 and
2001.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Cash receipts which PwC Consulting generates are
collected by the PwC Network in the majority of countries or
regions. Such cash is generally managed via common cash pools in
each country or region for all lines of service within the PwC
Network. Cash generated by PwC Consulting that is managed by the
PwC Network has not been reflected in these combined financial
statements.
</FONT>

<P align="left">
<B><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Costs
and Expenses with Employees and Allocated Debt</I></FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">PwC Consulting funds its operations from
internally generated cash flows, funds provided by other
businesses of the firms in the PwC Network and bank borrowings,
loans, or other debt, including bank borrowings, loans, or other
debt of the PwC Network. In most countries or regions, a firm in
the PwC Network incurs and settles accounts payable on a
centralized basis and allocates a portion of its short-term and
long-term funding to support the operations of PwC Consulting.
As a result, certain accounts payable and accrued liabilities
are allocated based on the ratio of PwC Consulting non-employee
expenses to total non-employee expenses for these PwC Network
firms. Short-term and long-term debt are allocated to PwC
Consulting based on the ratio of PwC Consulting accounts
receivable and unbilled receivables relative to total accounts
receivable and unbilled receivables for these PwC Network firms.
Interest is allocated to debt but is not allocated to other
allocated liabilities, such as accounts payable, accrued
liabilities, accrued payroll and related benefits. Interest
relating to allocated debt is allocated on a monthly basis using
the ratio of PwC Consulting revenues to total revenues of the
PwC Network firms. These allocated amounts have been included in
&#147;Amounts due to the PwC Network&#148; in the accompanying
combined balance sheets and are comprised of:
</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="67%"><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="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="7"></TD>
</TR>

<TR>
    <TD colspan="2"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">June 30,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></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">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</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 valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accounts payable and accrued liabilities
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">321,441</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">290,503</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">Accrued payroll and related benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">250,544</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">307,961</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">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">513,458</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">420,587</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">Amounts due to the PwC Network
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,085,443</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,019,051</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">5.&nbsp;&nbsp;Investments</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following is a summary of securities
available for sale:
</FONT>

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

<TR>
    <TD width="47%"><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="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="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"></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Unrealized</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Unrealized</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Fair</FONT></B></TD>
</TR>

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Cost</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Gains</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Losses</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Value</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">
    <FONT size="2">June&nbsp;30, 2000
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,545</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,260</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(631</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44,174</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">June&nbsp;30, 2001
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,589</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">705</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(143</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,151</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">F-21
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PwC CONSULTING</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(A Business Unit of the PricewaterhouseCoopers
Network of Firms)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO THE COMBINED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In thousands, except share data)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Investments held as available for sale are
recorded within short-term investments. There were no realized
gains or losses in fiscal 1999. In fiscal year 2000, PwC
Consulting recorded gross realized gains of $11,619 and no
losses. For the year ended June&nbsp;30, 2001, gross realized
gains of $10,629 and gross realized losses of $23,016 on the
disposal of investments are recorded in the income statement
before partner distributions and benefits as other expense.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">PwC Consulting also has certain other minority
investments in non-publicly traded companies. These
non-marketable securities are carried at cost and recorded as
non-current investments in the combined balance sheets. For the
year ended June&nbsp;30, 2001, gross realized gains of $1,359
and gross realized losses of $4,591 on disposal and impairment
of investments are recorded in the combined income statement
before partner distributions and benefits as other expense.
</FONT>

<P align="left">
<B><FONT size="2">6.&nbsp;&nbsp;Property and Equipment,
net</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Property and equipment, net of accumulated
depreciation, consists of the following:
</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="70%"><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>
</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">June 30,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></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">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</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 valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Equipment
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">156,648</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">189,287</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">Furniture
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,613</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36,095</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">Property and 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">22,161</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">45,568</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">Less 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">(101,325</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">(133,331</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 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">Property and equipment, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">99,097</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">137,619</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">Depreciation expense was $40,438, $41,510 and
$64,645 for the years ended June&nbsp;30, 1999, 2000 and 2001,
respectively.
</FONT>

<P align="left">
<B><FONT size="2">7.&nbsp;&nbsp;Goodwill, net</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Goodwill, net of accumulated amortization,
consists of the following:
</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="69%"><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>
</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">June 30,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></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">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</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 valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Goodwill
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">333,695</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">328,487</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">Less accumulated 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">(119,111</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">(177,424</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 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">Goodwill, net
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">214,584</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">151,063</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">8.&nbsp;&nbsp;Accrued Payroll and Related
Benefits</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Accrued payroll and related benefits consists of
the following:
</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="72%"><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>
</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">June 30,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="2"></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">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</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 valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Accrued payroll and other employee benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">18,318</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,612</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">Accrued bonuses
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">48,835</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">59,809</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">Accrued vacation
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">20,054</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">23,944</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 accrued payroll and related benefits
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">87,207</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">103,365</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="center"><FONT size="2">F-22
</FONT>

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

<DIV align="center">
<B><FONT size="2">PwC CONSULTING</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(A Business Unit of the PricewaterhouseCoopers
Network of Firms)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO THE COMBINED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In thousands, except share data)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">PwC Consulting has various performance driven
bonus plans whereby employees are awarded cash bonuses based,
generally, upon the performance of their country or region as
well as their own individual performance against predefined
goals. Bonuses are generally earned and recognized within a
given fiscal year and paid in the following fiscal year. Payroll
and related benefits for partners and shareholders have not been
reflected in the combined income statements before partner
distributions and benefits.
</FONT>

<P align="left">
<B><FONT size="2">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-Term
Bank Borrowings and Long-Term Debt</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Short-term bank borrowings and long-term debt
relate to those countries in which PwC Consulting operates in a
separate legal form within the applicable country or region, and
consist of the following:
</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="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="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>
</TR>

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

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" align="center" nowrap><B><FONT size="1">June 30,</FONT></B></TD>
</TR>

<TR>
    <TD colspan="3"></TD>
    <TD></TD>
    <TD colspan="7" 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">2000</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">2001</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>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="3" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Short-term bank borrowings
    </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="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Credit line
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">44,340</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</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><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Bank borrowings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">30,026</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29,223</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">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">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 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>

</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 short-term bank borrowings
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">74,819</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">29,223</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>

</TR>

<TR>
    <TD colspan="3" 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><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&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">Bank loans
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">51,242</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">53,219</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">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">1,660</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,175</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">Less current portion
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(11,814</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">(6,506</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>

</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 long-term debt
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">41,088</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">49,888</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>

</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Annual maturities of long-term debt of PwC
Consulting for the next five years ending June&nbsp;30 are as
follows:
</FONT>

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

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="84%"><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>
</TR>

<TR valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2002
    </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">6,506</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">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">11,493</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">2004
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">10,755</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">15,402</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">10,533</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">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">1,705</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 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 align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">56,394</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">At June&nbsp;30, 2000, PwC Consulting had an
outstanding revolving credit agreement in Japan that provided
for borrowings up to $47,000 with interest rates determined at
the time of the borrowing. Interest rates ranged from .81% to
..85% and 1.04% to 1.38% for the year ended June&nbsp;30, 1999
and 2000, respectively. The weighted average interest rate at
June&nbsp;30, 1999 and 2000 was .83% and 1.09%, respectively.
The available credit was $22,895 and $2,660 as of June&nbsp;30,
1999 and 2000, respectively. During 2001, this revolving credit
agreement matured and was replaced with long-term financing.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Short-term bank borrowings consists of
uncollateralized arrangements with interest rates which ranged
from 3.70% to 9.75%, 6.00% to 12.75%, and 5.00% to 23.00% for
the years ended June&nbsp;30, 1999, 2000 and 2001, respectively.
The weighted average interest rates as of June&nbsp;30, 1999,
2000 and 2001 were 6.71%, 7.51% and 7.54%, respectively.
</FONT>

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

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

<DIV align="center">
<B><FONT size="2">PwC CONSULTING</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(A Business Unit of the PricewaterhouseCoopers
Network of Firms)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO THE COMBINED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In thousands, except share data)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Long-term bank loans consists of uncollateralized
loans with interest rates that ranged from 3.70% to 9.75% for
the year ended June&nbsp;30, 1999 and a weighted average rate of
6.84%. Rates for the year ended June&nbsp;30, 2000 ranged from
4.13% to 9.75% with a weighted average rate of 5.50%. Rates for
the year ended June&nbsp;30, 2001 ranged from 4.97% to 13.40%
with a weighted average rate of 7.17% at June&nbsp;30, 2001.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Other debt at June&nbsp;30, 2000 consists
primarily of mortgage notes with interest rates ranging from
3.50% to 4.50% and a weighted average interest rate of 4.24%.
</FONT>

<P align="left">
<B><FONT size="2">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commitments
and Contingencies</FONT></B>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Litigation</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The PwC Network as well as PwC Consulting is
involved in litigation arising in the ordinary course of
business, some of which relate to PwC Consulting operations.
Some of the actions and proceedings have been brought on behalf
of various claimants and certain of these claimants seek damages
of unspecified amounts. The firms within the PwC Network have
established a series of captive insurance companies to provide
for its self-insurance needs. The insurance provided by these
captive insurance companies covers, on a firm-by-firm basis,
liability relating to professional services performed by
PwC&nbsp;Consulting as well as professional services performed
by all other business units within the PwC Network. As part of
the Separation (as described in Note&nbsp;13), a portion of each
firm&#146;s total professional liability insurance coverage has
been designated to cover liability relating to professional
services provided by PwC Consulting. Management believes that
any potential losses will not exceed the designated amounts
covered by the captive insurance companies. Following the
Separation, the Company intends to replace the insurance
coverage provided by these captive insurance companies with a
combination of self-insurance and professional liability
insurance from commercial sources. While the ultimate outcome of
this litigation cannot be predicted with certainty, it is the
opinion of management that the resolution of such litigation
will not have a material adverse effect on the combined balance
sheet, income statement before partner distributions and
benefits or cash flow.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Leases</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The firms within the PwC Network have obligations
under long-term, noncancelable, operating lease agreements,
principally for office space and data processing equipment,
including personal computers, some of which relate to PwC
Consulting operations. Certain agreements are subject to
periodic escalation charges for increases in real estate taxes
and other charges. Renewal options are available on the majority
of the office leases. Facility leases for office space utilized
exclusively by PwC Consulting represent commitments of PwC
Consulting.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Minimum rental commitments on PwC Consulting
specific facilities, net of minimum sublease rental income,
under noncancelable leases for the five succeeding years ending
June&nbsp;30 and in the aggregate thereafter are set forth below:
</FONT>

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

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="83%"><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 valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">2002
    </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">52,826</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">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">38,415</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">2004
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">31,723</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">30,138</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">25,866</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">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">94,027</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 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 align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">272,995</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="center"><FONT size="2">F-24
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PwC CONSULTING</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(A Business Unit of the PricewaterhouseCoopers
Network of Firms)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO THE COMBINED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In thousands, except share data)</FONT></B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Rent expense, including allocated amounts,
approximates $144,200, $167,200 and $167,900 for the years ended
June&nbsp;30, 1999, 2000 and 2001, respectively.
</FONT>

<P align="left">
<B><FONT size="2">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employee
Benefit Plans</FONT></B>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Defined
Benefit Retirement and Postretirement Benefit
Plans</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Historically, all of the employees of the various
firms in the PwC Network, including those in PwC Consulting,
participated in various benefit and retirement plans sponsored
by the firms. The costs with respect to these plans are
allocated among all of the lines of service within the PwC
Network and PwC Consulting. For purposes of these combined
financial statements, the firms within the PwC Network retain
and therefore do not allocate the assets and liabilities
relating to these plans, except for certain plans with
liabilities of approximately $3,000 and $4,700 as of
June&nbsp;30, 2000 and 2001, respectively. The cost allocated to
PwC Consulting for defined benefit plans included within cost of
services is approximately $35,000, $41,000 and $38,000 for the
years ended June&nbsp;30, 1999, 2000 and 2001, respectively.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Additionally, the firms within the PwC Network
have unfunded postretirement benefit plans that provide medical
and life insurance for eligible retirees, employees and
dependents, as well as postemployment benefits that include
severance benefits upon involuntary separation from the PwC
Network. The PwC Network has retained these plans and therefore,
for purposes of these combined financial statements, the assets
and liabilities of these plans are not allocated to PwC
Consulting, except for certain postretirement benefit plans with
current liabilities of approximately $400 and $300 and
non-current liabilities of $30,500 and $44,900 at June&nbsp;30,
2000 and 2001, respectively. For the year ended June&nbsp;30,
1999, 2000 and 2001, PwC Consulting recognized approximately
$5,700, $9,100 and $13,400, respectively, of expense related to
postretirement benefits.
</FONT>

<P align="left">
<B><I><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Defined
Contribution Plans</FONT></I></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The PwC Network firm in the United States
sponsors savings plans (the &#147;Savings Plans&#148;) that are
available to all United States employees who meet certain
eligibility requirements. The Savings Plans are 401(k) based
plans that allow employees to contribute up to the maximum limit
established by law ($10.0, $10.5 and $10.5 for calendar years
1999, 2000 and 2001, respectively). The PwC Network provides
matching contributions under the terms of the plans.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Employees in the PwC Network firms outside the
United States are covered by various defined contribution plans,
the majority of which are government sponsored. These plans
include both postretirement and savings plan benefits.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The costs allocated to PwC Consulting for defined
contribution plans included in compensation was approximately
$31,300, $45,000 and $41,500 for the years ended June&nbsp;30,
1999, 2000 and 2001, respectively.
</FONT>

<P align="left">
<B><FONT size="2">12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment
Reporting</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Operating segments are defined as components of
an enterprise for which separate financial information is
regularly available and evaluated by the chief operating
decision maker, or decision making group, in deciding how to
allocate resources and in assessing performance. PwC
Consulting&#146;s chief operating decision making group is the
PwC Consulting Global Executive Committee, which is chaired by
the PwC Consulting Chief Executive Officer.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">PwC Consulting&#146;s reportable operating
segments are the following four geographic units: the Americas,
comprised of the United States, Canada and Mexico; EMEA,
comprised of Europe, the Middle East and
</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="#toc">Table of Contents</A></H5><P>

<DIV align="center">
<B><FONT size="2">PwC CONSULTING</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(A Business Unit of the PricewaterhouseCoopers
Network of Firms)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO THE COMBINED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In thousands, except share data)</FONT></B>
</DIV>

<P align="left">
<FONT size="2">Africa; Asia Pacific, principally comprised of
Japan, Australia and East Asia; and SOACAT, principally
comprised of Brazil, Argentina, Chile and Columbia. These
geographical units are managed separately and represent
countries in which PwC Consulting serves clients in that part of
the world.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">PwC Consulting evaluates performance of its
operating segments based on &#147;contribution to profit,&#148;
a measure that excludes certain global and other costs from
operating income. In general, the accounting policies for the
operating segments are the same as those described in the
summary of significant accounting policies, except for those
noted and shown in the reconciliations below. Expenses are
allocated to PwC Consulting by the PwC Network pursuant to the
policies in Note&nbsp;4. There are no material inter-segment
revenues.
</FONT>

<P align="left">
<B><FONT size="2">Net Revenues*</FONT></B>

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

<TR>
    <TD width="59%"><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>
    <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>
</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">Year Ended June 30,</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">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>
</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">Americas
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,758,050</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,253,338</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">3,116,301</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">EMEA
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,824,343</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,004,983</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,120,157</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">Asia Pacific
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">314,450</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">425,308</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">497,894</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">SOACAT
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">111,383</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">131,765</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">112,147</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><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,008,226</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,815,394</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">5,846,499</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>

<DIV align="left">
<HR size="1" width="15%" 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">Revenues net of reimbursables and subcontractor
    costs.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Contribution to Profit</FONT></B>

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

<TR>
    <TD width="59%"><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>
    <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>
</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">Year Ended June 30,</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">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>
</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">Americas
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">547,236</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">773,970</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">504,821</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">EMEA
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">418,512</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">438,713</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">458,131</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">Asia Pacific
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,854</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">36,809</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">41,582</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">SOACAT
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,996</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">15,676</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">14,496</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><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,003,598</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,265,168</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">1,019,030</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">
<B><FONT size="2">Depreciation &#38; Amortization</FONT></B>

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

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">Year Ended June 30,</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">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>
</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">Americas
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">11,778</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,340</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">29,864</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">EMEA
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">19,554</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">21,905</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">39,887</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">Asia Pacific
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,105</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">8,034</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">9,137</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">SOACAT
    </FONT></DIV>
    </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">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">613</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><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">38,686</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">56,020</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">79,501</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="center"><FONT size="2">F-26
</FONT>

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

<DIV align="center">
<B><FONT size="2">PwC CONSULTING</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(A Business Unit of the PricewaterhouseCoopers
Network of Firms)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO THE COMBINED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In thousands, except share data)</FONT></B>
</DIV>

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

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

<TR>
    <TD></TD>
    <TD></TD>
    <TD colspan="11" align="center" nowrap><B><FONT size="1">Year Ended June 30,</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">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>
</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">Americas
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">33,389</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">37,265</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">39,615</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">EMEA
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">32,198</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">37,339</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">38,214</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">Asia Pacific
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">3,245</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,222</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,904</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">SOACAT
    </FONT></DIV>
    </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">1,152</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">2,124</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><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">68,832</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">80,978</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">86,857</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>

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

<TR>
    <TD width="59%"><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>
    <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>
</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">Year Ended June 30,</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">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>
</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">Segment net revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,008,226</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">5,815,394</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">5,846,499</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">Global adjustments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(47,218</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">(50,941</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">23,656</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">Reclassification of allowance for bad debts
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">56,803</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">25,216</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">94,419</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">Reimbursables and subcontractor 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">1,212,798</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">1,341,290</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,516,429</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">Combined revenues
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">6,230,609</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">7,130,959</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">7,481,003</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">Segment contribution to profit
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,003,598</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">1,265,168</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">1,019,030</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">Global 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">(331,302</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">(456,565</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">(382,836</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">Global PwC Network allocations
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(128,000</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">(167,000</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">(182,000</FONT></TD>
    <TD align="left" valign="bottom" nowrap><FONT size="2">)</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 adjustments
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">53,438</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">(3,083</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">41,608</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">Combined operating income
    </FONT></DIV>
    </TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">597,734</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
    <TD align="right" valign="bottom" nowrap><FONT size="2">638,520</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">495,802</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;
<FONT size="2">Global adjustments represent internal reconciling
items related to revenues between the PwC Network and PwC
Consulting which have not been allocated to the operating
segments. For internal reporting purposes, the allowance for bad
debts is included in revenues. This differs from combined
revenues as the allowance for bad debts is included in selling,
general and administrative expenses.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Global costs represent global PwC Consulting
costs that have not been allocated to the operating segments.
These include global training, service and support staff, and
business development activities. Global PwC Network allocations
represent allocations which are not included in the calculation
of contribution profit reviewed by the chief operating decision
making group. These allocations include global financial
management costs and global marketing costs. Other adjustments
primarily represent adjustments to conform the internal measure
of contribution to profit to U.S. GAAP.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">With respect to depreciation and amortization,
the difference between the segment totals and the combined
totals relates to the amortization of goodwill that has not been
allocated to the operating segments. Goodwill allocated to the
operating segments consists of acquisitions initiated by
countries or regions of PwC&nbsp;Consulting. Goodwill not
allocated to the operating segments consists primarily of the
goodwill associated with the merger of firms in the Coopers and
Lybrand and Price Waterhouse networks as discussed in
Note&nbsp;3.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">With respect to segment interest expense, the
amount allocated to the operating segments is an imputed amount.
It is used to measure the operating segment&#146;s ability to
manage accounts receivable, based primarily on accounts
receivable outstanding for the operating segment. This differs
from the combined interest expense
</FONT>

<P align="center"><FONT size="2">F-27
</FONT>

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<DIV align="center">
<B><FONT size="2">PwC CONSULTING</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(A Business Unit of the PricewaterhouseCoopers
Network of Firms)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO THE COMBINED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In thousands, except share data)</FONT></B>
</DIV>

<P align="left">
<FONT size="2">which represents the interest expense allocated
to PwC Consulting by the PwC Network based on short-term and
long-term debt as discussed in Note&nbsp;4.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">PwC Consulting conducts business in two countries
that individually comprise greater than 10% of revenues and
long-lived assets within the last three years. As presented in
the net revenue by segment table above, revenues net of
reimbursables and subcontractor costs for the United States were
$2,541,900, $2,993,083 and $2,895,243 and for the United Kingdom
were $749,295, $771,531 and $732,144 for the years ended
June&nbsp;30, 1999, 2000 and 2001 respectively. Long-lived
assets, which represent property and equipment, net of
accumulated depreciation for the United States were $36,855,
$41,359 and $51,616 as of June&nbsp;30, 1999, 2000 and 2001,
respectively. For the United Kingdom, long-lived assets were
$1,759 and $15,821 as of June&nbsp;30, 2000 and 2001. Long-lived
assets were not allocated to the United Kingdom in 1999.
</FONT>

<P align="left">
<B><FONT size="2">13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsequent
Events</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Effective July&nbsp;1, 2001, on a
country-by-country or regional basis, the PwC Network agreed to
certain arrangements relating to the provision of various
services to PwC Consulting by the PwC Network which were
historically performed on centralized basis for the benefit of
all PwC Network business units. The charges for these services
are allocated according to use or consumption based on actual
direct costs, where available, plus overhead costs. These
agreements have no impact on the combined financial position,
results of operations, or cash flows of PwC Consulting for the
three years ended June&nbsp;30, 2001.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">On January&nbsp;31, 2002, the PwC Network
announced its intention to separate PwC Consulting into a
separate company called Monday Ltd, formerly known as PwCC
Limited (the &#147;Company&#148;). Firms in the PwC Network have
elected to transfer their businesses to the Company or its
subsidiaries in exchange for equity of the Company or its
subsidiaries, as described below pursuant to rollup agreements.
We refer to this transfer and exchange and the related
transactions as the &#147;Separation.&#148; The Company
anticipates making an initial public offering (the
&#147;Offering&#148;) in the summer of 2002, which will consist
of a sale by some of the firms in the PwC Network and their
partners or shareholders, of all or a portion of the
Company&#146;s Class&nbsp;A common shares owned by these firms
and will include an issuance of Premium Equity Participating
Security Units by the Company, Monday SCA and Monday SCA&#146;s
indirect wholly-owned finance subsidiary, Monday Finance&nbsp;SA.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company is a Bermuda corporation formed on
March&nbsp;27, 2002, and currently is owned by Codan Trust
Company Limited (the &#147;Trustee&#148;), as trustee of The
PwCC Limited Purpose Trust, a special purpose trust that has
been established under the laws of Bermuda. The Company will
have no material activities, assets or liabilities until the
completion of the Separation. In connection with the formation
of the Company, 60,000 Class&nbsp;A common shares, par value
U.S.$1.00 per share, were issued to the Trustee. Prior to the
Separation, the Company&#146;s memorandum of association will be
amended to provide for the issuance of Class&nbsp;A common
shares to firms in the PwC Network and their partners or
shareholders that transfer their management consulting and
technology services businesses to the Company as well as
Class&nbsp;X common shares and preferred stock purchase rights.
Class&nbsp;X common shares will have full voting power but will
have no economic rights, such as rights to dividends or
distributions by the Company. Class&nbsp;X common shares
initially will be held by some of the partners of PwC Consulting
that become employees of the Company or one of its subsidiaries
and hold equity in a subsidiary of the Company. Class X common
shares may also be held by some of the partners or shareholders
of the PricewaterhouseCoopers firms that receive equity in a
subsidiary of the Company as part of the Separation in the event
they do not fully liquidate their holdings in the Company and
its subsidiaries as a result of the Offering. The equity in one
of these subsidiaries is redeemable at the shareholder&#146;s
option for cash or, at the option of the subsidiary, for
Class&nbsp;A common shares on a one-for-one
</FONT>

<P align="center"><FONT size="2">F-28
</FONT>

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<DIV align="center">
<B><FONT size="2">PwC CONSULTING</FONT></B>
</DIV>

<DIV align="center">
<B><FONT size="2">(A Business Unit of the PricewaterhouseCoopers
Network of Firms)</FONT></B>
</DIV>

<P align="center">
<B><FONT size="2">NOTES TO THE COMBINED FINANCIAL
STATEMENTS&nbsp;&#151;&nbsp;(Continued)</FONT></B>

<DIV align="center">
<B><FONT size="2">(In thousands, except share data)</FONT></B>
</DIV>

<P align="left">
<FONT size="2">basis. One other subsidiary will issue
exchangeable shares that are exchangeable into Class&nbsp;A
common shares on a one-for-one basis at the election of a
shareholder.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Company also expects to adopt a shareholder
rights plan prior to the Offering. The delivery of a
Class&nbsp;A common share or a Class&nbsp;X common share also
will constitute the delivery of a preferred stock purchase right
associated with such share. These rights may have anti-takeover
effects in that the existence of the rights may defer a
potential acquiror from making a takeover proposal or a tender
offer.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Prior to the Separation, the Company or its
subsidiaries will enter into a number of agreements relating to
some business processing and infrastructure services that the
PwC Network will provide to the Company after the Separation.
These agreements will take effect following the Separation for
periods up to three years. In general, the Company will be
provided these services at the cost incurred by the various
firms in the PwC Network in providing these services, which the
Company believes is consistent with the bases upon which costs
have been allocated to PwC Consulting since July&nbsp;1, 2001.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Under these services agreements, the firms in the
PwC Network will provide PwC Consulting the same or similar
services PwC Consulting receives prior to the Separation. The
types of services the Company will continue to receive include
infrastructure, knowledge management, human resources, training,
finance and accounting, and other services, except as described
below. The Company may also receive financial reporting services
from some of these firms. In general, the Company will be able
to terminate its agreements with the PwC Network on relatively
short notice, but may face termination costs in some
circumstances. Costs that have been allocated to the Company in
the past that will no longer be charged following the Separation
include costs associated with firm-wide management, risk
management and practice protection, marketing and business
development, interest expense and taxes.
</FONT>

<P align="center"><FONT size="2">F-29
</FONT>

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<P align="center">
<FONT size="2">[LOGO]
</FONT>

<DIV>&nbsp;</DIV>

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<P align="center">
<B><FONT size="2">PART II</FONT></B>

<P align="center">
<B><FONT size="2">INFORMATION NOT REQUIRED IN
PROSPECTUS</FONT></B>

<P align="left">
<B><FONT size="2">Item&nbsp;13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
Expenses of Issuance and Distribution.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following table sets forth the fees and
expenses to be paid in connection with the issuance and
distribution for the securities being registered hereunder.
Except for the SEC registration fee, the NASD fee and the NYSE
fee, all amounts are estimates. Most of these fees and expenses
are being paid for by the selling shareholders for the
concurrent Class&nbsp;A common share offering.
</FONT>

<CENTER>
<TABLE width="60%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="84%"><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>
</TR>

<TR>
    <TD colspan="2" align="center" nowrap><B><FONT size="1">Description</FONT></B></TD>
    <TD></TD>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">Amount</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 valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Securities and Exchange Commission registration
    fee
    </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>

<TR>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">New York Stock Exchange 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 valign="bottom" bgcolor="#EEEEEE">
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">National Association of Securities Dealers, Inc.
    filing 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">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 valign="bottom" bgcolor="#EEEEEE">
    <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>
    <TD colspan="2" align="left" valign="top">
    <DIV style="margin-left:10px; text-indent:-10px">
    <FONT size="2">Printing and engraving 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 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">Miscellaneous 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"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</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><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">
<B><FONT size="2">Item&nbsp;14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indemnification
of Directors and Officers.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The bye-laws of Monday Ltd provide for
indemnification of the Registrant&#146;s officers and directors
against all liabilities, loss, damage or expense incurred or
suffered by such party as an officer or director of Monday Ltd.
This indemnification shall not extend to any matter which would
render it void pursuant to the Companies Act 1981 of Bermuda.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The Companies Act provides that a Bermuda company
may indemnify its directors and officers in respect of any loss
arising or liability attaching to them as a result of any
negligence, default, breach of duty or breach of trust of which
they may be guilty in relation to the company in question.
However, the Companies Act also provides that any provision,
whether contained in the company&#146;s bye-laws or in a
contract or arrangement between the company and the director or
officer, indemnifying a director or officer against any
liability which would attach to him in respect of his fraud or
dishonesty will be void.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The directors and officers of Monday Ltd are
covered by directors&#146; and officers&#146; insurance policies
maintained by Monday Ltd.
</FONT>

<P align="left">
<B><FONT size="2">Item&nbsp;15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recent
Sales of Unregistered Securities.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">Monday Ltd was incorporated under the laws of
Bermuda under the name PwCC Limited on March&nbsp;27, 2002. Its
name was changed to Monday Ltd on June&nbsp;10, 2002. In
connection with our separation from the PricewaterhouseCoopers
network of firms, Monday Ltd and some of its subsidiaries expect
to issue equity to some of the firms in the
PricewaterhouseCoopers network and some of their partners and
shareholders, including our partners, in consideration of their
transfer of management consulting and technology services
businesses to us, Monday SCA or one of Monday SCA&#146;s
subsidiaries. A list of the PricewaterhouseCoopers firms or, in
some cases, their partners and shareholders, and the number of
Class&nbsp;A common shares, Class&nbsp;X common shares, Monday
SCA Class&nbsp;I common shares or shares of one of
Monday&nbsp;SCA&#146;s subsidiaries they have received or will
receive is set forth on Exhibit&nbsp;99.2 to this registration
statement. We have also indicated the date or expected date and
type of consideration paid or contributed or to be paid or
contributed for the issuance of these securities. Some of the
shares issued or to be issued to the PricewaterhouseCoopers
firms are expected to be transferred to our partners in
connection with their withdrawal from these firms. We also
</FONT>

<P align="center"><FONT size="2">II-1
</FONT>
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<DIV align="left">
<FONT size="2">expect to issue, on or immediately prior to the
closing of the concurrent offerings,
approximately &nbsp;&nbsp;million Class&nbsp;A common shares to
holders of Monday SCA Class&nbsp;I common shares in exchange for
an equal number of their Monday SCA Class&nbsp;I common
Class&nbsp;A common shares, which shares will then be sold in
the concurrent Class&nbsp;A common shares offering. These
issuances were or will be exempt from registration under the
Securities Act of 1933, as amended, pursuant to
Section&nbsp;4(2) thereof because such issuances did not or will
not involve any public offering of securities.
</FONT>
</DIV>

<P align="left">
<B><FONT size="2">Item&nbsp;16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits
and Financial Statement Schedules.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(a)&nbsp;Exhibits:
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">The following exhibits are filed pursuant to
Item&nbsp;601 of Regulation&nbsp;S-K.
</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="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="85%"><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>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">No.</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Description</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><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="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">2.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Monday Ltd Rollup Agreement*
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">2.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Monday SCA Rollup 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="left" valign="top">
    <FONT size="2">Memorandum of Association of Monday Ltd to be in
    effect as of the closing of this 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="left" valign="top">
    <FONT size="2">Bye-laws of Monday Ltd to be in effect as of the
    closing of this offering*
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Constitution of Monday Finance&nbsp;SA
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Articles of Incorporation of Monday SCA to be in
    effect as of the closing of this 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="left" valign="top">
    <FONT size="2">Specimen Class&nbsp;A common share certificate
    </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="left" valign="top">
    <FONT size="2">Form of Rights Agreement*
    </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="left" valign="top">
    <FONT size="2">Specimen PEPS Unit certificate
    </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="left" valign="top">
    <FONT size="2">Form of Indenture among Monday Finance&nbsp;SA,
    Monday&nbsp;SCA, as guarantor, and Bank of New&nbsp;York, as
    trustee, relating to the senior notes due 2008 of Monday Finance
    SA
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Purchase Contract Agreement
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Pledge Agreement
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Senior Note (Included in Exhibit&nbsp;4.4)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of PEPS Unit (Included in Exhibit&nbsp;4.5)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.10</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Treasury PEPS Unit (Included in
    Exhibit&nbsp;4.5)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Remarketing Agreement
    </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="left" valign="top">
    <FONT size="2">Opinion of Conyers Dill &#38; Pearman re legality
    of the PEPS Units being registered
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">5.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Opinion of Linklaters
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">9.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Monday Ltd Voting Agreement*
    </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="left" valign="top">
    <FONT size="2">Form of Rollup Agreements (filed as
    Exhibits&nbsp;2.1 and 2.2 hereto)
    </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="left" valign="top">
    <FONT size="2">[reserved]
    </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="left" valign="top">
    <FONT size="2">2003 Share 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="left" valign="top">
    <FONT size="2">2003 Non-Management Share 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="left" valign="top">
    <FONT size="2">[reserved]
    </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="left" valign="top">
    <FONT size="2">Form of Redemption and Non-Competition Agreement*
    </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="left" valign="top">
    <FONT size="2">Form of Transition Services Agreement*
    </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="left" valign="top">
    <FONT size="2">Form of Shareholders Agreement*
    </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="left" valign="top">
    <FONT size="2">Form of Assignment and Assumption Agreement*
    </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="left" valign="top">
    <FONT size="2">Form of Sublease Agreement*
    </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="left" valign="top">
    <FONT size="2">Form of Master License Agreement*
    </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="left" valign="top">
    <FONT size="2">Form of Underwriting Agreement for the concurrent
    Class&nbsp;A common shares offering***
    </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="left" valign="top">
    <FONT size="2">Form of Monday SCA Transfer Rights Agreement*
    </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="left" valign="top">
    <FONT size="2">Executive Agreement for Gregory D. Brenneman*
    </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="left" valign="top">
    <FONT size="2">Executive Agreement for Thomas C. O&#146;Neill*
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center"><FONT size="2">II-2
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">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="85%"><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>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">No.</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Description</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><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="left" valign="top">
    <FONT size="2">Executive Agreement for Willard W. Brittain*
    </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="left" valign="top">
    <FONT size="2">Executive Agreement for Michael S. Collins*
    </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="left" valign="top">
    <FONT size="2">Executive Agreement for David V. Dockray*
    </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="left" valign="top">
    <FONT size="2">Executive Agreement for Frank S. Sowinski*
    </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="left" valign="top">
    <FONT size="2">Monday Consulting US, Inc. Deferred Compensation
    Plan*
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">12.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Statement of computation of ratio of earnings to
    fixed charges****
    </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="left" valign="top">
    <FONT size="2">List of Subsidiaries of Monday Ltd
    </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="left" valign="top">
    <FONT size="2">Consent of Deloitte &#38; Touche LLP****
    </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="left" valign="top">
    <FONT size="2">Power of Attorney (included on signature page to
    the Registration Statement)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">25</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form&nbsp;T-1 Statement of Eligibility under the
    Trust Indenture Act of 1939 of The Bank of New York, as Trustee
    under the Indenture
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">99.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">[reserved]
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">99.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">List of PricewaterhouseCoopers firms, Partners
    and Shareholders and Amount of Equity Received*
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="15%" align="left" noshade>
</DIV>

<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">&nbsp;&nbsp;&nbsp;*&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference from the exhibit of the
    same number contained in Monday Ltd&#146;s Registration
    Statement on Form&nbsp;S-1 (Registration No.&nbsp;333-87408) as
    filed with the Commission.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp;&nbsp;**&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference from Exhibit&nbsp;10.5
    contained in Monday Ltd&#146;s Registration Statement on
    Form&nbsp;S-1 (Registration No.&nbsp;333-87408) as filed with
    the Commission.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">&nbsp;***&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference from Exhibit&nbsp;1.1
    contained in Monday Ltd&#146;s Registration Statement on
    Form&nbsp;S-1 (Registration No.&nbsp;333-87408) as filed with
    the Commission.
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD><FONT size="2">****&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Filed herewith.
    </FONT></TD>
</TR>

</TABLE>

<P align="left">
<B><FONT size="2">Item&nbsp;17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Undertakings.</FONT></B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(a)&nbsp;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
underwriter to permit prompt delivery to each purchaser.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(b)&nbsp;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 foregoing provisions, or otherwise, the
Registrant has been advised that in the opinion of the SEC, such
indemnification is against public policy as expressed in the 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 Act and will be governed by the final adjudication of such
issue.
</FONT>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size="2">(c)&nbsp;The undersigned Registrant hereby
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 purpose of determining any liability
    under the Securities Act of 1933, the information omitted from
    the form of prospectus filed as part of this registration
    statement in reliance upon Rule&nbsp;430A and contained in a
    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 part of this registration statement as
    of the time it was declared effective.
    </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 of 1933, 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 <I>bona fide</I> offering
    thereof.
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">II-3
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">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 has duly caused this registration
statement to be signed on its behalf by the undersigned, thereto
duly authorized, in the city of New York, State of New York, on
July&nbsp;3, 2002.
</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">MONDAY LTD
    </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="left">
    <FONT size="2">/s/ GREGORY D. BRENNEMAN
    </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">Gregory D. Brenneman
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    <FONT size="2">President and Chief Executive Officer
    </FONT></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 hereby constitutes and
appoints Ronald B. Hauben his or her true and lawful
attorneys-in-fact and agents with full power of substitution and
resubstitution, for him or her and in his or her name, place and
stead, any and all capacities, to sign any and all amendments,
including post-effective amendments, of and supplements to this
registration statement, or any related registration statement
filed pursuant to Rule&nbsp;462(b) under the Securities Act of
1933, and to file the same with all exhibits thereto and other
documents in connection therewith, with the SEC, granting unto
such attorneys-in-fact and agents full power and authority to do
and perform each and every act and thing requisite and necessary
to be done in and about the premises, to all intents and
purposes and as fully as they might or could do in person,
hereby ratifying and confirming all that such attorneys-in-fact
and agents, or his or her substitute, may lawfully 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, this registration statement has been signed by the
following persons in the capacities and on the date indicated.
</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="38%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="38%"><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="3"></TD>
    <TD></TD>
    <TD></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>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Date</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>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ GREGORY D. BRENNEMAN<BR>
    <HR size="1" noshade>Gregory D. Brenneman
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">President and Chief Executive Officer (Principal
    Executive Officer)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">July&nbsp;3, 2002
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ J. FRANK BROWN<BR>
    <HR size="1" noshade>J. Frank Brown
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">July&nbsp;3, 2002
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ JON F. DANSKI<BR>
    <HR size="1" noshade>Jon F. Danski
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Chief Accounting Officer<BR>
    (Principal Accounting Officer)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">July&nbsp;3, 2002
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ THOMAS A. LEIPZIG<BR>
    <HR size="1" noshade>Thomas A. Leipzig
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">July&nbsp;3, 2002
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ THOMAS CHARLES O&#146;NEILL<BR>
    <HR size="1" noshade>Thomas Charles O&#146;Neill
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Chairman of the Board of Directors
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">July&nbsp;3, 2002
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ FRANK S. SOWINSKI<BR>
    <HR size="1" noshade>Frank S. Sowinski
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Chief Financial Officer<BR>
    (Principal Financial Officer)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">July&nbsp;3, 2002
    </FONT></TD>
</TR>

</TABLE>
</CENTER>
<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">MONDAY LTD
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Authorized Representative in the United States
    </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="left">
    <FONT size="2">/s/ RONALD B. HAUBEN
    </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">Ronald B. Hauben
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    <FONT size="2">General Counsel and Corporate Secretary
    </FONT></TD>
</TR>

</TABLE>

<P align="center"><FONT size="2">II-4
</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">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 has duly caused this registration
statement to be signed on its behalf by the undersigned, thereto
duly authorized, in the city of New York, State of New York, on
July&nbsp;3, 2002.
</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">MONDAY SCA
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">BY:&nbsp;MONDAY LTD.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">ITS GENERAL PARTNER
    </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="left">
    <FONT size="2">/s/ GREGORY D. BRENNEMAN
    </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">Gregory D. Brenneman
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    <FONT size="2">President and Chief Executive Officer
    </FONT></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 hereby constitutes and
appoints Ronald B. Hauben his or her true and lawful
attorneys-in-fact and agents with full power of substitution and
resubstitution, for him or her and in his or her name, place and
stead, any and all capacities, to sign any and all amendments,
including post-effective amendments, of and supplements to this
registration statement, or any related registration statement
filed pursuant to Rule&nbsp;462(b) under the Securities Act of
1933, and to file the same with all exhibits thereto and other
documents in connection therewith, with the SEC, granting unto
such attorneys-in-fact and agents full power and authority to do
and perform each and every act and thing requisite and necessary
to be done in and about the premises, to all intents and
purposes and as fully as they might or could do in person,
hereby ratifying and confirming all that such attorneys-in-fact
and agents, or his or her substitute, may lawfully 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, this registration statement has been signed by the
following persons in the capacities and on the date indicated.
</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="38%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="38%"><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="3"></TD>
    <TD></TD>
    <TD></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>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Date</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>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ GREGORY D. BRENNEMAN<BR>
    <HR size="1" noshade>Gregory D. Brenneman
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">President and Chief Executive Officer (Principal
    Executive Officer)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">July&nbsp;3, 2002
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ J. FRANK BROWN<BR>
    <HR size="1" noshade>J. Frank Brown
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">July&nbsp;3, 2002
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ JON F. DANSKI<BR>
    <HR size="1" noshade>Jon F. Danski
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Chief Accounting Officer<BR>
    (Principal Accounting Officer)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">July&nbsp;3, 2002
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ THOMAS A. LEIPZIG<BR>
    <HR size="1" noshade>Thomas A. Leipzig
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">July&nbsp;3, 2002
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ THOMAS CHARLES O&#146;NEILL<BR>
    <HR size="1" noshade>Thomas Charles O&#146;Neill
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Chairman of the Board of Directors
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">July&nbsp;3, 2002
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ FRANK S. SOWINSKI<BR>
    <HR size="1" noshade>Frank S. Sowinski
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Chief Financial Officer<BR>
    (Principal Financial Officer)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">July&nbsp;3, 2002
    </FONT></TD>
</TR>

</TABLE>
</CENTER>
<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">MONDAY SCA
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">BY:&nbsp;MONDAY LTD.
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">ITS GENERAL PARTNER
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Authorized Representative in the United States
    </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="left">
    <FONT size="2">/s/ RONALD B. HAUBEN
    </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">Ronald B. Hauben
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    <FONT size="2">General Counsel and Corporate Secretary
    </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="#toc">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 has duly caused this registration
statement to be signed on its behalf by the undersigned, thereto
duly authorized, in the city of New York, State of New York, on
July&nbsp;3, 2002.
</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">MONDAY FINANCE SA
    </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="left">
    <FONT size="2">/s/ GREGORY D. BRENNEMAN
    </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">Gregory D. Brenneman
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    <FONT size="2">President and Chief Executive Officer
    </FONT></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 hereby constitutes and
appoints Ronald B. Hauben his or her true and lawful
attorneys-in-fact and agents with full power of substitution and
resubstitution, for him or her and in his or her name, place and
stead, any and all capacities, to sign any and all amendments,
including post-effective amendments, of and supplements to this
registration statement, or any related registration statement
filed pursuant to Rule&nbsp;462(b) under the Securities Act of
1933, and to file the same with all exhibits thereto and other
documents in connection therewith, with the SEC, granting unto
such attorneys-in-fact and agents full power and authority to do
and perform each and every act and thing requisite and necessary
to be done in and about the premises, to all intents and
purposes and as fully as they might or could do in person,
hereby ratifying and confirming all that such attorneys-in-fact
and agents, or his or her substitute, may lawfully 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, this registration statement has been signed by the
following persons in the capacities and on the date indicated.
</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="38%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
    <TD width="38%"><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="3"></TD>
    <TD></TD>
    <TD></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>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Date</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>
    <TD></TD>
    <TD align="center" nowrap><HR size="1" noshade></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ GREGORY D. BRENNEMAN<BR>
    <HR size="1" noshade>Gregory D. Brenneman
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">President and Chief Executive Officer (Principal
    Executive Officer)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">July&nbsp;3, 2002
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ J. FRANK BROWN<BR>
    <HR size="1" noshade>J. Frank Brown
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">July&nbsp;3, 2002
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ JON F. DANSKI<BR>
    <HR size="1" noshade>Jon F. Danski
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Chief Accounting Officer<BR>
    (Principal Accounting Officer)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">July&nbsp;3, 2002
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ THOMAS A. LEIPZIG<BR>
    <HR size="1" noshade>Thomas A. Leipzig
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Director
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">July&nbsp;3, 2002
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ THOMAS CHARLES O&#146;NEILL<BR>
    <HR size="1" noshade>Thomas Charles O&#146;Neill
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Chairman of the Board of Directors
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">July&nbsp;3, 2002
    </FONT></TD>
</TR>

<TR>
    <TD colspan="7"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
    <TD colspan="3" align="center" valign="top">
    <FONT size="2">/s/ FRANK S. SOWINSKI<BR>
    <HR size="1" noshade>Frank S. Sowinski
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">Chief Financial Officer<BR>
    (Principal Financial Officer)
    </FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top">
    <FONT size="2">July&nbsp;3, 2002
    </FONT></TD>
</TR>

</TABLE>
</CENTER>
<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">MONDAY FINANCE SA
    </FONT></TD>
</TR>

<TR>
    <TD>&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    <FONT size="2">Authorized Representative in the United States
    </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="left">
    <FONT size="2">/s/ RONALD B. HAUBEN
    </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">Ronald B. Hauben
    </FONT></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="center">
    <FONT size="2">General Counsel and Corporate Secretary
    </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="#toc">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="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="85%"><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>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">No.</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Description</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><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="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">2.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Monday Ltd Rollup Agreement*
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">2.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Monday SCA Rollup 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="left" valign="top">
    <FONT size="2">Memorandum of Association of Monday Ltd to be in
    effect as of the closing of this 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="left" valign="top">
    <FONT size="2">Bye-laws of Monday Ltd to be in effect as of the
    closing of this offering*
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3.3</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Constitution of Monday Finance SA
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">3.4</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Articles of Incorporation of Monday SCA to be in
    effect as of the closing of this 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="left" valign="top">
    <FONT size="2">Specimen Class&nbsp;A common share certificate
    </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="left" valign="top">
    <FONT size="2">Form of Rights Agreement*
    </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="left" valign="top">
    <FONT size="2">Specimen PEPS Unit certificate
    </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="left" valign="top">
    <FONT size="2">Form of Indenture among Monday Finance SA, Monday
    SCA, as guarantor, and the Bank of New York, as trustee,
    relating to the senior notes due 2008 of Monday Finance SA
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.5</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Purchase Contract Agreement
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.6</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Pledge Agreement
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.7</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Senior Note (Included in Exhibit&nbsp;4.4)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.8</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of PEPS Unit (Included in Exhibit 4.5)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.10</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Treasury PEPS Unit (Included in Exhibit
    4.5)
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">4.11</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Remarketing Agreement
    </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="left" valign="top">
    <FONT size="2">Opinion of Conyers Dill &#38; Pearman re legality
    of the PEPS Units being registered
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">5.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Opinion of Linklaters
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">9.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form of Monday Ltd Voting Agreement*
    </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="left" valign="top">
    <FONT size="2">Form of Rollup Agreements (filed as
    Exhibits&nbsp;2.1 and 2.2 hereto)
    </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="left" valign="top">
    <FONT size="2">[reserved]
    </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="left" valign="top">
    <FONT size="2">2003 Share 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="left" valign="top">
    <FONT size="2">2003 Non-Management Share 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="left" valign="top">
    <FONT size="2">[reserved]
    </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="left" valign="top">
    <FONT size="2">Form of Redemption and Non-Competition Agreement*
    </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="left" valign="top">
    <FONT size="2">Form of Transition Services Agreement*
    </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="left" valign="top">
    <FONT size="2">Form of Shareholders Agreement*
    </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="left" valign="top">
    <FONT size="2">Form of Assignment and Assumption Agreement*
    </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="left" valign="top">
    <FONT size="2">Form of Sublease Agreement*
    </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="left" valign="top">
    <FONT size="2">Form of Master License Agreement*
    </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="left" valign="top">
    <FONT size="2">Form of Underwriting Agreement for the concurrent
    Class&nbsp;A common shares offering***
    </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="left" valign="top">
    <FONT size="2">Form of Monday SCA Transfer Rights Agreement*
    </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="left" valign="top">
    <FONT size="2">Executive Agreement for Gregory D. Brenneman*
    </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="left" valign="top">
    <FONT size="2">Executive Agreement for Thomas C. O&#146;Neill*
    </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="left" valign="top">
    <FONT size="2">Executive Agreement for Willard W. Britain*
    </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="left" valign="top">
    <FONT size="2">Executive Agreement for Michael S. Collins*
    </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="left" valign="top">
    <FONT size="2">Executive Agreement for David V. Dockray*
    </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="left" valign="top">
    <FONT size="2">Executive Agreement for Frank S. Sowinski*
    </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="left" valign="top">
    <FONT size="2">Monday Consulting VS, Inc. Deferred Compensation
    Plan*
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">12.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Statement of computation of ratio of earnings to
    fixed charges****
    </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="left" valign="top">
    <FONT size="2">List of Subsidiaries of Monday Ltd
    </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="left" valign="top">
    <FONT size="2">Consent of Deloitte &#38; Touche LLP****
    </FONT></TD>
</TR>

</TABLE>
</CENTER>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">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="85%"><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>
</TR>

<TR>
    <TD colspan="3" align="center" nowrap><B><FONT size="1">No.</FONT></B></TD>
    <TD></TD>
    <TD align="center" nowrap><B><FONT size="1">Description</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><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="left" valign="top">
    <FONT size="2">Power of Attorney (included on signature page to
    the Registration Statement)**
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">25</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">Form T-1 Statement of Eligibility under the Trust
    Indenture Act of 1939 of The Bank of New York, as Trustee under
    the Indenture
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">99.1</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">[reserved]
    </FONT></TD>
</TR>

<TR>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="right" valign="top" nowrap><FONT size="2">99.2</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top">
    <FONT size="2">List of PricewaterhouseCoopers firms, Partners
    and Shareholders and Amount of Equity Received*
    </FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="15%" align="left" noshade>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="2%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD><FONT size="2">*&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference from the exhibit of the
    same number contained in Monday Ltd&#146;s Registration
    Statement on Form&nbsp;S-1 (Registration No.&nbsp;333-87408) as
    filed with the Commission.
    </FONT></TD>
</TR>

</TABLE>
<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">Incorporated by reference from Exhibit&nbsp;10.5
    contained in Monday Ltd&#146;s Registration Statement on
    Form&nbsp;S-1 (Registration No.&nbsp;333-87406) as filed with
    the Commission.
    </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">***&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Incorporated by reference from Exhibit&nbsp;1.1
    contained in Monday Ltd&#146;s Registration Statement on
    Form&nbsp;S-1 (Registration No.&nbsp;333-87408) as filed with
    the Commission.
    </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">****&nbsp;</FONT></TD>
    <TD align="left">
    <FONT size="2">Filed herewith.
    </FONT></TD>
</TR>

</TABLE>
</BODY>
</HTML>
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REGISTRATION STATEMENT ON FORM S-1
Table of Contents
As filed with the Securities and Exchange
Commission on July 3, 2002
Registration
No. 333-
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form S-1
REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933
Monday Ltd
Monday SCA
Monday Finance SA
(Exact name of registrant as specified in its
charter)
Bermuda
8742
98-0374046
Luxembourg
8742
Luxembourg
8742
(State or other jurisdiction of
incorporation or organization)
(Primary Standard Industrial
Classification Code Number)
(I.R.S. Employer
Identification Number)
Monday Ltd
Clarendon House
2 Church Street
Hamilton HM 11, Bermuda
(441) 295-5950
Monday SCA
398 route d'Esch
L-1471 Luxembourg
Luxembourg
Monday Finance SA
398 route d'Esch
L-1471 Luxembourg
Luxembourg
(Address, including zip code, and telephone
number, including area code, of registrant's principal
executive offices)
Ronald B. Hauben
Monday Ltd
11 Madison Avenue
New York, NY 10010
(646) 598-2420
(Name, address, including zip code, and
telephone number, including area code, of agent for
service)
Copies to:
Julie T. Spellman
Cravath, Swaine & Moore
Worldwide Plaza
825 Eighth Avenue
New York, New York 10019
(212) 474-1000
Jeffrey Small
Luciana Fato
Davis Polk & Wardwell
450 Lexington Avenue
New York, New York 10017
(212) 450-4000
Candace K. Beinecke
Kenneth A. Lefkowitz
Hughes Hubbard & Reed LLP
One Battery Park Plaza, 12th Floor
New York, New York 10004
(212) 837-6000
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 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
Title of each class
Proposed maximum
Amount of
of securities to be registered
aggregate offering price(1)(2)
registration fee
Premium Equity Participating Security Units (PEPS
    Units)
$100,000,000
$9,200
Monday Finance SA Senior Notes due 2008(3)
Class A common shares, par value $0.0001 per
    share (including preferred shares purchase rights(4))(5)
$100,000,000
$9,200
Purchase Contracts(6)
Monday SCA Senior Notes Guarantees(7)
(1)
Estimated solely for the purpose of calculating
    the registration fee pursuant to Rule 457(o) under the
    Securities Act of 1933. The proposed maximum offering price
    includes amounts attributable to PEPS Units that the
    underwriters may purchase to cover over-allotments, if any.
(2)
Exclusive of accrued interest, if any.
(3)
The Monday Finance SA Senior Notes are offered as
    a component of the PEPS Units for no additional consideration.
(4)
Rights initially will trade together with
    Class A common shares. The value attributable to the
    rights, if any, is reflected in the market price of the
    Class A common shares.
(5)
Class A common shares of Monday Ltd to be issued
    to the holders of PEPS Units upon settlement of the Purchase
    Contracts, for a purchase price of $25 per unit. The actual
    number of Class A common shares to be issued will not be
    determined until the date of settlement of the related PEPS
    Units.
(6)
The Purchase Contracts are offered as a component
    of the PEPS Units for no additional consideration.
(7)
The Senior Notes Guarantees are offered as a
    component of the Monday Finance SA Senior Notes for no
    additional consideration.
The registrant hereby amends this registration
statement on such date 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 Securities and Exchange 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 we are not
soliciting offers to buy these securities in any state where the
offer or sale is not permitted.
PROSPECTUS (Subject to
Completion)
Issued                 ,
2002
Units
Monday Ltd
Monday SCA
Monday Finance SA
% PEPS
SM
Units
(Premium Equity Participating Security Units
– PEPS
SM
Units)
Each PEPS Unit consists of a purchase
contract issued by Monday Ltd and a $25 principal
amount          %
senior note due 2008 issued by Monday Finance SA, an indirect
wholly-owned subsidiary of Monday SCA which is a majority-owned
subsidiary of Monday Ltd. Monday SCA has agreed to absolutely,
irrevocably and unconditionally guarantee the payment of
principal, interest, additional amounts, if any, and premium, if
any, on the senior notes.
•
The purchase contract will obligate you to
    purchase from Monday Ltd, no later
    than                   ,
    2006, for a price of $25 in cash, the following number of Monday
    Ltd's Class A common shares, subject to antidilution
    adjustments:
–
if the average closing price of Monday
    Ltd's Class A common shares over the 20-trading day
    period ending on the third trading day prior
    to                   ,
    2006 equals or exceeds
    $         ,      shares;
–
if the average closing price of our
    Class A common shares over the same period is less than
    $                  but
    greater than
    $         , a
    number of shares having a value, based on the 20-trading day
    average closing price, equal to
    $         ;
    and
–
if the average closing price of our
    Class A common shares over the same period is less than or
    equal to
    $         ,      shares.
•
Monday Finance SA will pay interest,
    initially quarterly, on the senior notes, initially at a rate
    of          % per
    year.
•
The senior notes will be remarketed as
    described in this prospectus. Following a successful
    remarketing, the interest rate will be reset and interest will
    become payable semi-annually.
•
The senior notes and related guarantee will
    be pledged as collateral for your obligation under the purchase
    contract.
This offering of PEPS Units is being made
concurrently with, and is contingent upon, the initial public
offering of Monday Ltd's Class A common shares,
pursuant to a separate prospectus. We have applied to have our
Class A common shares approved for listing on the New York
Stock Exchange under the symbol "MN."
We will apply to have the PEPS Units
approved for listing on the New York Stock Exchange under the
symbol
"         ."
Investing in the PEPS Units involves
risks. See "Risk Factors" beginning on page 29 of
this prospectus.
Underwriting
Net
Discounts
Proceeds to
and
Monday
Price to Public
Commissions
Finance SA
Per PEPS Unit(1)
$25.00
$
$
Total
$
$
$
(1)
Plus accrued interest
    from                 ,
    2002, if settlement occurs after that date.
Monday Ltd, Monday SCA and Monday Finance SA
have granted the underwriters the right to purchase up
to                   additional
PEPS Units to cover over-allotments.
The Securities and Exchange Commission and
state securities regulators have not approved or disapproved
these securities, or determined if this prospectus is truthful
or complete. Any representation to the contrary is a criminal
offense.
Morgan Stanley & Co. Incorporated expects
to deliver the PEPS Units to purchasers
on              ,
2002.
MORGAN STANLEY
GOLDMAN, SACHS &
CO.
LEHMAN
    BROTHERS
MERRILL LYNCH &
    CO.
BANC OF AMERICA
SECURITIES LLC
CREDIT SUISSE FIRST
    BOSTON
SALOMON SMITH
    BARNEY
SG COWEN
UBS WARBURG
,
2002
Table of Contents
[Artwork]
TABLE OF CONTENTS
SUMMARY
THE OFFERING
THE OFFERING--EXPLANATORY DIAGRAMS
RISK FACTORS
DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS
USE OF PROCEEDS
DIVIDEND POLICY
CAPITALIZATION
ACCOUNTING TREATMENT
DILUTION
AUDITOR INDEPENDENCE RULES, THE ENRON SITUATION AND THE PROPOSED SEC NO-ACTION LETTER
SELECTED FINANCIAL DATA
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
BUSINESS
MANAGEMENT
ARRANGEMENTS WITH THE PRICEWATERHOUSECOOPERS NETWORK OF FIRMS
ARRANGEMENTS WITH OUR PARTNERS
PRINCIPAL AND SELLING SHAREHOLDERS IN THE CONCURRENT CLASS A COMMON SHARES OFFERING
DESCRIPTION OF THE PEPS UNITS
Creating Treasury PEPS Units
Recreating PEPS Units
Current Payments
Payment of Additional Amounts
Voting and Certain Other Rights
Listing of the Securities
Miscellaneous
DESCRIPTION OF THE PURCHASE CONTRACTS
Purchase of Common Shares
Remarketing
Early Settlement
Notice to Settle with Cash
Early Settlement Upon Cash Merger
Anti-Dilution Adjustments
Termination
Pledged Securities and Pledge Agreement
Book-Entry System
CERTAIN PROVISIONS OF THE PURCHASE CONTRACTS, THE PURCHASE CONTRACT AGREEMENT AND THE PLEDGE AGREEMENT
General
Modification
No Consent to Assumption
Consolidation, Amalgamation, Merger, Sale or Conveyance
Title
Replacement of PEPS Unit or Treasury PEPS Unit Certificates
Governing Law
Information Concerning the Purchase Contract Agent
Information Concerning the Collateral Agent
DESCRIPTION OF THE SENIOR NOTES
General
Guarantees
Interest
Market Rate Reset
Optional Remarketing
Put Option upon a Failed Remarketing
Payment of Additional Amounts on the Senior Notes
Optional Redemption--Special Events
Events of Default
Consolidation, Merger and Sale of Assets
Agreement by Purchasers of Certain Tax Treatment
Book-Entry and Settlement
DESCRIPTION OF SHARE CAPITAL
SHARES ELIGIBLE FOR FUTURE SALE
UNDERWRITERS
LEGAL MATTERS
EXPERTS
WHERE YOU CAN FIND MORE INFORMATION
INDEX TO COMBINED FINANCIAL STATEMENTS
COMBINED BALANCE SHEETS
NOTES TO THE COMBINED FINANCIAL STATEMENTS
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS
CONSENT OF DELOITTE & TOUCHE LLP
Table of Contents
TABLE OF CONTENTS
Page
Summary
1
Risk Factors
29
Disclosure Regarding Forward-Looking Statements
49
Use of Proceeds
50
Dividend Policy
51
Capitalization
52
Accounting Treatment
54
Dilution
55
Our Organizational Structure
56
Auditor Independence Rules, the Enron Situation
    and the Proposed SEC No-Action Letter
61
Selected Financial Data
64
Unaudited Pro Forma Combined Financial Statements
66
Ratio of Earnings to Fixed Charges
80
Management's Discussion and Analysis of
    Financial Condition and Results of Operations
81
Business
111
Management
147
Arrangements with the PricewaterhouseCoopers
    Network of Firms
163
Arrangements with Our Partners
175
Principal and Selling Shareholders in the
    Concurrent Class A Common Shares Offering
184
Description of the PEPS Units
187
Description of the Purchase Contracts
192
Certain Provisions of the Purchase Contracts, the
    Purchase Contract Agreement and the Pledge Agreement
202
Description of the Senior Notes
205
Description of Share Capital
212
Shares Eligible for Future Sale
222
Material Income Tax Consequences
225
ERISA Considerations
231
Underwriters
232
Legal Matters
235
Experts
235
Where You Can Find More Information
236
Index to Combined Financial Statements
F-1
You should rely only on the information contained
in this prospectus. We have not authorized anyone to provide you
with information different from that contained in this
prospectus. We are offering to sell, and seeking offers to buy,
our      % Premium Equity Participating
Security Units, or PEPS Units, only in jurisdictions where
offers and sales are permitted. The information contained in
this prospectus is accurate only as of the date of this
prospectus, regardless of the time of delivery of this
prospectus or of any sale of our PEPS Units.
We have not taken any action to permit a public
offering of the PEPS Units outside the United States or to
permit the possession or distribution of this prospectus outside
the United States. Persons outside the United States who come
into possession of this prospectus must inform themselves about
and observe any restrictions relating to the offering of the
PEPS Units and the distribution of this prospectus outside the
United States.
Consent under the Bermuda Exchange Control Act
1972, and its related regulations, has been obtained from the
Bermuda Monetary Authority for the issue and transfer of the
securities issued hereunder by Monday Ltd to and between
non-residents of Bermuda for exchange control purposes provided
our Class A common shares remain listed on an appointed
stock exchange, which includes the New York Stock Exchange.
Prior to this offering, this prospectus will be filed with the
Registrar of Companies in Bermuda in accordance with Bermuda
law. In granting such consent and in accepting this prospectus
for filing, neither the Bermuda Monetary Authority nor the
Registrar of Companies in Bermuda accepts responsibility for our
financial soundness or the correctness of any of the statements
made or opinions expressed in this prospectus.
i
Table of Contents
This prospectus is not prepared, and may not be
used, in connection with a public offer or an admission to
listing in Luxembourg within the meaning of the law of
December 23, 1998 on the supervision of the markets of
financial assets and has not been submitted to the Commission de
Surveillance du Secteur Financier for approval. This prospectus
may not be distributed to the public, and the PEPS Units may not
be publicly offered for sale, purchase or barter, in Luxembourg
and no steps may be taken which constitute or result in a public
offering of the PEPS Units in Luxembourg.
Until                ,
2002, 25 days after the date of this prospectus, all
dealers that buy, sell or trade our PEPS Units, whether or not
participating in this offering, may be required to deliver a
prospectus. This delivery requirement is in addition to the
dealers' obligation to deliver a prospectus when acting as
underwriters and with respect to their unsold allotments or
subscriptions.
This prospectus contains trademarks, service
marks and registered marks of Monday Ltd, its subsidiaries, the
PricewaterhouseCoopers network of firms and other companies, as
indicated. This prospectus also contains the service mark
"PEPS Units," which is a service mark of Morgan
Stanley & Co. Incorporated. All rights reserved.
ii
Table of Contents
SUMMARY
The following is a summary of the most significant aspects of
this offering to potential investors. In addition to this
summary, we urge you to read the entire prospectus carefully,
especially the risks of investing in
our            %
Premium Equity Participating Security Units, or PEPS Units,
discussed under "Risk Factors," our unaudited pro
forma combined financial statements and notes to these
statements and the audited and unaudited combined financial
statements and notes to these statements of PwC Consulting, a
business unit of the PricewaterhouseCoopers firms, which we
refer to as our combined financial statements.
Monday Ltd
Overview
We are one of the world's leading providers of management
consulting and technology services. We help our clients pursue
and implement key strategic, process and technology initiatives
designed to enhance their growth, profitability and
competitiveness. We believe that one of our core strengths is
our ability to integrate our strategic advice with our business
and technology skills and services to help our clients achieve
measurable results. As described more fully below, our business
is currently owned by the separately-owned partnerships and
corporations that comprise the global PricewaterhouseCoopers
network of firms. Immediately prior to the closing of this
offering and the concurrent Class A common shares offering,
which we refer to collectively as the concurrent offerings,
substantially all of the PricewaterhouseCoopers firms that have
a management consulting and technology services business will
transfer these businesses to us in exchange for our Class A
common shares or equity in one of our subsidiaries. The firms in
the PricewaterhouseCoopers network intend to fully dispose of
these Class A common shares and any equity in our
subsidiaries as a result of the concurrent Class A common
shares offering.
We operate globally with a consistent approach to serving our
clients, which allows us to execute complex engagements on a
global, regional and local basis. Our clients include many of
the world's largest and most successful organizations,
including many of the world's largest governments and
government agencies. Upon the closing of the concurrent
offerings, we expect to have approximately 33,000 employees with
offices in 52 countries or territories. We provide our
clients with solutions to their challenges by building teams
that combine industry-specific knowledge in five industry groups
covering 20 industry sectors with expertise in our seven core
service areas, which we refer to as our solution areas. We
principally track and manage our business according to the four
geographic regions listed below, which we refer to as theatres.
Our geographic theatres, industry groups, including industry
sectors, and solution areas are set forth below.
1
Table of Contents
Geographic Theatres
Americas
EMEA
Asia Pacific
SOACAT
Canada
Mexico
United States
Austria
Belgium
Czech Republic
Denmark
Finland
France
Germany
Hungary
Iceland
India
Republic of Ireland
Israel
Italy
Kenya
Latvia
Lebanon
Lithuania
Netherlands
Nigeria
Norway
Pakistan
Poland
Portugal
Russia
South Africa
Spain
Sweden
Switzerland
Turkey
Ukraine
United Arab Emirates
United Kingdom
Australia
People's Republic of China
Hong Kong
Indonesia
Japan
Korea
Malaysia
New Zealand
Philippines
Singapore
Taiwan
Thailand
Argentina
Brazil
Chile
Colombia
Venezuela
Industry Groups
Information,
Government
Financial
Communications
Energy
Products
and Services
Services
and Entertainment
and Utilities
Pharmaceuticals
Consumer Packaged Goods
Technology
Industrial Products
Automotive
Retail
Government
Defense
Aviation
Posts and Surface
Transport
Banking
Capital Markets
Insurance
Investment Management
Communications
Entertainment and Media
Hospitality and Leisure
Oil and Gas
Utilities
Mining
Solution Areas
Develop
Deliver
Operate
Strategic Change
Customer Relationship Management
Financial Management
Human Capital
Supply Chain and Operations
Information Technology
Application Management and Business Process
    Management
We group our services into the following three broad categories:
•
develop, which is developing business, technology and change
    strategies for our clients,
•
deliver, which is designing and implementing technology-based
    business processes and solutions, and
•
operate, which is our application management and business
    process management services offering which we intend to grow.
Our seven solution areas in these three broad categories serve
as the means by which we group the various types of services
that we offer to our clients. For example, our customer
relationship management solution area is comprised of our
partners and employees that have specific skills and
2
Table of Contents
experiences in helping clients manage and strengthen their
customer relationships. Our solution areas also encompass the
technologies, such as software applications developed by other
companies, that we help our clients implement or operate. Our
industry groups, on the other hand, represent the way that we
manage and strengthen our client relationships by understanding
the specific needs of clients in particular industries.
Although we currently provide services to our clients in each of
the seven solution areas listed above, which are more fully
described in "Business—Our Services—Solution
Areas," our application management and business process
management services, in terms of revenues, historically have not
been as large as the revenues from our other solution areas.
Application management and business process management services
are types of outsourcing services. Our application management
services are ongoing maintenance and development services for
software applications used by our clients, such as finance and
accounting applications. We have been providing application
management services since 1991. Our business process management
services are services provided by us to our clients in which
entire processes, such as accounting and financial reporting
processes, are administered by us rather than by our
clients' staff. Historically, our business process
management services, which have been provided since 1995, have
not been operated together with the other management consulting
and technology services businesses being transferred to us as
part of our separation from the PricewaterhouseCoopers network
of firms. We intend to significantly expand the services we
offer in our operate category over time, including by expanding
our application management or business process management
services into new industries or into areas in which we believe
our core expertise in business processes may give us a
competitive advantage, such as customer relationship management
services. In order to expand our outsourcing services, we will
need, among other things, to hire new partners and client
service staff who have skills and capabilities that are
different from the skills and capabilities of most of our
current partners and client service staff.
Our Growth Strategy
We are committed to becoming the global service provider of
choice for clients seeking to transform their businesses to
become more profitable and competitive. To transform a business,
we feel that we must help a client realize significant and
lasting change throughout its organization or within an
important functional area. To achieve our goal, we are pursuing
the growth initiatives described below.
•
Deliver Comprehensive Solutions to Our Clients.
We
    continuously look for opportunities to provide our clients with
    comprehensive strategies and solutions, particularly those that
    help to transform businesses and organizations. We believe our
    focus on increasing, developing and penetrating the base of
    clients where we have the greatest opportunity to provide these
    services is important to our growth.
•
Pursue the Benefits of Independence.
Because of
    our affiliation with the auditing practice of the
    PricewaterhouseCoopers network of firms, audit clients of
    PricewaterhouseCoopers firms are increasingly limiting or
    denying us opportunities to provide our services for them.
    Following the closing of the concurrent Class A common
    shares offering, we will no longer be restricted by rules and
    regulations regarding auditor independence. Accordingly, we will
    seek to expand our services to businesses and organizations that
    are audited by PricewaterhouseCoopers firms. We
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also plan to implement other business strategies that we have
    been unable to pursue due to auditor independence-related
    constraints, which are described in "Auditor Independence
    Rules, the Enron Situation and the Proposed SEC No-Action
    Letter."
•
Expand Our Application Management and Business Process
    Management Services.
We plan to grow our existing
    application management and business process management services,
    which is one of our solution areas described under
    "Business—Our Services—Solution Areas." We
    believe growing these outsourcing services is important to our
    strategy of providing comprehensive services to our clients.
•
Expand Our Other Service Offerings.
In addition to
    growing our outsourcing business, we also intend to grow other
    existing service offerings, including our systems integration
    services. We also plan to continue our investment in our
    solution set development program, which is described under
    "Business—Solution Sets."
•
Improve Operational Efficiency.
We plan to reduce
    overlapping functions and business processes and to outsource
    functions that are not critical to our operations. We believe
    that we will have significant opportunities over time to improve
    operational efficiency as a result of our transition from a
    series of legally separate firms within the
    PricewaterhouseCoopers network to a single, integrated
    organization.
•
Increase Our Alliance and Client Collaboration.
We
    plan to continue our collaborative efforts with clients and
    expand our alliance relationships to develop cost-effective
    solutions that may be deployed to multiple clients.
•
Increase Awareness of New Brand.
We changed our
    legal name on June 10, 2002, and will begin operating under
    our new brand name upon our separation, which we believe will
    help to reinforce the public awareness of our separation from
    the PricewaterhouseCoopers network of firms and lead to
    additional new business opportunities.
•
Continue to Develop Our Client Service Staff.
Our
    most valuable assets are our client service staff and the
    building, renewing and sharing of knowledge, skills and
    experiences among them. We will continue to focus on the
    development of our client service staff and the implementation
    of a recruiting and training strategy designed to allow us to
    realize our growth objectives.
Selected Risk Factors
Some of the most significant risks affecting our business or
relating to ownership of the PEPS Units and their underlying
components are described below. Please see "Risk
Factors" for a more detailed discussion of these risks and
for other risks.
•
Our Revenues Are Declining.
We expect our net
    revenues to decline in the last quarter of fiscal year 2002,
    which ends on June 30, 2002, and at least the first quarter
    of fiscal year 2003 as compared to the sequentially prior
    quarter. In addition, we expect our net revenues to be lower, on
    a year over year basis, for at least a few quarters after the
    closing of this offering.
•
We Are Affected by Economic Conditions.
The
    current and any future economic downturn may put competitive
    pressures on our fees and constrain our ability to obtain new
    engagements. This could cause our revenues and profitability to
    decline.
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•
We May Not Be Successful at Expanding Our
    Services.
To successfully expand our application
    management and business process management services, we will
    need, among other things, to hire new partners and client
    service staff who have skills and capabilities that are
    different than the skills and capabilities of most of our
    current partners and client service staff. Accordingly, we may
    not be successful in implementing our strategy to grow these
    services.
•
Our Industry is Highly Competitive and is
    Changing.
Our future success, including our ability to
    grow, depends on our ability to compete effectively and to
    respond appropriately to changing competitive conditions.
•
We May Lose Business as a Result of Our
    Separation.
Our separation from the
    PricewaterhouseCoopers firms may result in a loss of referrals
    from PricewaterhouseCoopers firms that historically have been
    important to our business.
•
Expenses Relating to Our Separation and Restructuring Will
    Lower Our Net Income.
In connection with our separation
    and transition to a corporate structure and restructuring
    activities, we have incurred or will incur charges relating to a
    number of nonrecurring items during fiscal years 2002, 2003 and
    2004. These charges include costs relating to our separation,
    such as transfer taxes, costs associated with changing and
    marketing our new name and costs associated with creating
    separate systems and processes. We expect those costs, in the
    aggregate, to be between $200 million and
    $300 million. We also will recognize compensation expense
    in the first quarter of fiscal year 2003 of approximately
    $117 million from the grant of restricted share units and
    the sale of Class A common shares to our partners. In
    addition, we expect to record a charge of approximately
    $40 million in the fourth quarter of fiscal year 2002 and
    $60 million to $100 million in the first quarter of
    fiscal year 2003 in connection with restructuring activities.
•
Our Stock Price May Decline Due to a Large Number of
    Outstanding Shares Eligible for Future Sale, Including Shares
    Held by PricewaterhouseCoopers Firms after the Concurrent
    Offerings, if any.
The sale of a substantial amount
    of our Class A common shares, or the possibility of these
    sales, may adversely affect the market price of our Class A
    common shares. Although the PricewaterhouseCoopers firms intend
    to dispose of all of their equity in us as a result of the
    concurrent Class A common shares offering, if these firms
    continue to own any of our equity after the closing of the
    concurrent Class A common shares offering, they will be
    required to divest our equity within five years. In addition, we
    will be issuing a significant number of our Class A common
    shares no later
    than                       ,
    2006 in connection with the settlement of the purchase
    contracts. These sales, or the possibility of these sales, may
    depress the market price for our Class A common shares.
•
Holders of PEPS Units or Treasury PEPS Units Assume the
    Risk that the Market Value of Our Class A Common Shares May
    Decline.
Holders of PEPS Units or Treasury PEPS Units
    have an obligation pursuant to the purchase contracts to buy our
    Class A common shares. Assuming an offering price in the
    concurrent Class A common shares offering of
    $           ,
    if the applicable market value is less than
    $           ,
    the aggregate market value of the Class A common shares
    issued to you on the purchase contract settlement date will be
    less than the effective price paid by you for such Class A
    common shares on the date of this prospectus.
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•
The Opportunity for Equity Appreciation Provided by an
    Investment in the PEPS Units or Treasury PEPS Units Will Be
    Directly Affected by the Trading Price of Our Class A
    Common Shares.
Your opportunity for equity appreciation
    afforded by investing in PEPS Units or Treasury PEPS Units is
    less than your opportunity for equity appreciation if you
    invested directly in our Class A common shares. Assuming an
    offering price in the concurrent Class A common shares
    offering of $     , the market value of
    each Class A common share you receive pursuant to a
    purchase contract on the purchase contract settlement date will
    only exceed the effective price per share of
    $     paid by you for our Class A
    common shares on the date of this prospectus if the applicable
    market value of the Class A common shares exceeds
    $                      .
    In this event you would receive on the contract settlement date
    only
    approximately            %
    of the Class A common shares you would have received if you
    had made a direct investment in our Class A common shares
    on the date of this prospectus.
Our Relationship with the PricewaterhouseCoopers Network of
Firms
Until our separation from the PricewaterhouseCoopers network of
firms, which will occur immediately prior to the closing of the
concurrent offerings, our business will continue to be part of
the management consulting and technology services businesses of
firms in the PricewaterhouseCoopers network of firms around the
world. This network of firms is a group of separate firms that
provide various services, including accounting, auditing and tax
services as well as management consulting and technology
services, to businesses and other organizations. Although these
firms share a name, a common management oversight team and
common strategies and operational standards, most of the firms
in the PricewaterhouseCoopers network are owned by their local
partners or shareholders. As part of our separation, management
consulting and technology services businesses representing
approximately 95% of our revenues for the fiscal year ended
June 30, 2001, will be transferred to us pursuant to a
number of agreements that we have entered into with some of the
PricewaterhouseCoopers firms or the partners or shareholders of
some of these firms, which we refer to as rollup agreements. In
a number of countries, we have entered into rollup agreements
directly with the partners or shareholders of some of the
PricewaterhouseCoopers firms because these partners or
shareholders directly own either the assets of, or equity in, a
management consulting and technology services business that is
being transferred to us. The countries are Australia, Belgium,
France, Iceland, Italy, Pakistan, Portugal, Sweden and
Switzerland.
The aggregate number of Class A common shares we will issue
to firms that are transferring their management consulting and
technology services businesses, or in some cases their partners
and shareholders,
is          million,
which, assuming an estimated initial public offering price of
$     , will have an aggregate value of
approximately
$         billion.
The allocation of these shares among the PricewaterhouseCoopers
firms was based upon an agreed methodology taking into account a
variety of factors, including expenses incurred by firms for the
general benefit of the PricewaterhouseCoopers network of firms
in connection with our separation, the net book value of the
businesses contributed to us and the relative value of the
businesses contributed to us. In connection with their
withdrawal from their respective PricewaterhouseCoopers firms,
our partners will receive
approximately          million
of these Class A common shares, which will have an
estimated aggregate value of approximately
$         million.
Approximately       million shares
issued to one of the PricewaterhouseCoopers firms will be
purchased by Monday Ltd or one of its subsidiaries immediately
after the closing of the concurrent offerings, resulting in
approximately             million
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shares outstanding. For purposes of calculating the number of
Class A common shares and value of these shares in the
prior sentences, we have treated all shares issued by our
subsidiaries in connection with our separation, other than those
owned by us or our subsidiaries, as if they had been redeemed or
exchanged on a one-for-one basis for our Class A common
shares. We refer in this prospectus to the transfers of these
businesses and the related actions as our separation or the
separation transaction. Firms in the PricewaterhouseCoopers
network and their partners and shareholders intend to fully
dispose of our Class A common shares and equity of our
subsidiaries as a result of the concurrent Class A common
shares offering.
The rollup agreements include noncompetition arrangements,
various conditions to closing and termination rights. The rollup
agreements also include various representations and warranties,
which will not survive the closing of our separation, and
covenants. Under the terms of the noncompetition arrangements,
the PricewaterhouseCoopers firms generally will be restricted
from competing with us for a period of 5 years following
our separation. The term of the noncompetition arrangements may
be of shorter duration in some countries due to legal
restrictions on enforceability. These firms will be able,
however, to offer agreed upon types of management consulting and
technology services, such as human resources services, to any
client, including through existing consulting and advisory
services businesses that are not being transferred to us. In
addition, the PricewaterhouseCoopers firms will be permitted to
provide all management consulting and technology services for
clients that have less than a specified amount of annual
revenues in the particular country where services will be
provided. In our three largest countries in terms of revenues,
the country-specific amounts are $400 million in the United
States, $1 billion in the United Kingdom and
$1 billion in Germany. These firms, however, will not be
permitted to provide any of the management consulting and
technology services they are otherwise restricted from providing
pursuant to the noncompetition arrangements if those clients
have $5 billion or more in aggregate annual consolidated
worldwide revenues. The rollup agreements also provide that in
the event a PricewaterhouseCoopers firm enters into a rollup
agreement with us but fails to close under the agreement prior
to the closing of the concurrent Class A common shares
offering, we will be required to close under the agreement at
any time up to one year after the closing of the concurrent
Class A common shares offering if, in the good faith
discretion of the board of PricewaterhouseCoopers International
Limited, an extension of no more than one year is granted to the
firm. PricewaterhouseCoopers International Limited is the global
coordinating entity for the PricewaterhouseCoopers network of
firms.
Prior to our separation, we also will enter into related
agreements with various PricewaterhouseCoopers firms, including
agreements that govern various transition services these firms
will provide us for a period of up to three years. These
services will be provided at cost and include finance and
accounting information services, information technology and
software services and the provision of office space.
For a more detailed description of the terms of our separation
and these agreements, including the noncompetition arrangements,
please see "Arrangements with the PricewaterhouseCoopers
Network of Firms."
Auditor Independence Rules, the Enron Situation and the
Impact on Our Business
The primary purpose of the concurrent Class A common shares
offering is to ensure that we will no longer be subject to the
rules and regulations governing the independence of auditors from
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their clients and to eliminate any perceived conflicts of
interest. Because the PricewaterhouseCoopers network of firms
performs audit services for many of our current and prospective
clients and industry vendors, we are currently restricted from
performing services for some clients and implementing some of
our growth strategies. Some audit clients also have policies
against using their audit firm to provide significant non-audit
services, such as management consulting and technology services.
In June 2000, the Securities and Exchange Commission
proposed new rules regarding auditor independence and a rule
requiring most public companies to disclose in their annual
proxy statements information such as fees related to the
non-audit services provided by their auditor during the most
recent fiscal year. Final rules based on this proposal became
effective in February 2001. Beginning in late 2000, we
began experiencing an increase in the number of clients that
either limit our opportunities to bid for new engagements or
prohibit us entirely from bidding for new engagements because
they are audited by a PricewaterhouseCoopers firm. In addition,
some of our existing engagements with PricewaterhouseCoopers
audit clients have been reduced in scope. These clients have
been primarily United States and foreign companies with
securities listed or traded on United States securities markets,
although we are now experiencing increased independence-related
constraints outside the United States as well.
The recent high profile bankruptcy filing by the Enron
Corporation has increased further the attention boards of
directors and the marketplace pay to auditor independence. In
the Enron situation, governmental authorities and the media are
investigating whether the management consulting fees paid to
Arthur Andersen compromised its role as Enron's independent
auditor. The independence disclosure rules and the fallout from
the perceived conflicts of interest in the Enron situation are
significantly limiting our ability to compete.
While we believe we are experiencing the adverse effects of the
independence-related issues and the Enron situation worldwide,
we have been most significantly affected in the United States.
We believe the difficulty we are having obtaining new
engagements in the United States from audit clients of
PricewaterhouseCoopers firms is evidenced by a recent trend in
our new bookings from these clients in our Americas theatre,
which is comprised principally of our United States business.
Bookings is the amount we expect to realize in net revenues over
the life of an engagement for which we have entered into a
contract with our client. We estimate that our average monthly
bookings from clients that we have identified as audit clients
of PricewaterhouseCoopers firms were approximately 57% lower in
the Americas theatre in the fiscal quarter ended March 31,
2002, as compared to the six months ended December 31,
2001. Please see "Management's Discussion and Analysis
of Financial Condition and Results of
Operations—Overview—Auditor Independence Rules, the
Enron Situation and the Impact on Our Business" for a more
detailed discussion of the calculation of this estimate.
We expect the level of new business we are awarded from
PricewaterhouseCoopers audit clients worldwide will continue to
decline through at least the remainder of fiscal year 2002, with
a possibility of reversal beginning only after we complete our
separation. Accordingly, we believe that our separation from the
PricewaterhouseCoopers network of firms as a result of the
concurrent Class A common shares offering will provide
significant growth opportunities for our business. Our ability
to capitalize on these opportunities will depend, among other
things, on the successful maintenance or, in some cases,
reestablishment of our relationships with these clients and
obtaining
8
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new engagements from these clients on a timely basis. In
addition, while we believe that independence-related issues are
a significant reason for our declining revenues, with the
greatest impact being in our most recent fiscal quarter ended
March 31, 2002, we believe that the effects of the global
economic downturn have been more significant contributing
factors to the overall decline in our revenues through
March 31, 2002. Accordingly, our separation alone may not
prevent our revenues from continuing to decline.
Please see "Auditor Independence Rules, the Enron Situation
and the Proposed SEC No-Action Letter" and
"Management's Discussion and Analysis of Financial
Condition and Results of Operations— Overview— Auditor
Independence Rules, the Enron Situation and the Impact on Our
Business" for a more detailed discussion of the auditor
independence rules, the Enron situation and the impact on our
business.
Information about Us and Our Partners
Monday Ltd was incorporated under the laws of Bermuda on
March 27, 2002. Monday Ltd changed its name from PwCC
Limited to Monday Ltd on June 10, 2002. The principal
executive office of Monday Ltd is in Hamilton, Bermuda, and its
telephone number in Bermuda is (441) 295-5950. Monday SCA was
organized under the laws of Luxembourg on April 4, 2002.
Monday Finance SA was organized under the laws of Luxembourg on
July 1, 2002. Monday SCA changed its name from PwC
Consulting SCA to Monday SCA on June 10, 2002. The
principal executive office of each of Monday SCA and Monday
Finance SA is in Luxembourg, Luxembourg. Their telephone number
in Luxembourg is
(352)         -           .
In addition, we have major offices in the world's leading
business centers, including Atlanta, Chicago, Dallas, Frankfurt,
Hong Kong, London, Madrid, New York, Paris, Philadelphia,
San Francisco, São Paulo, Sydney, Tokyo and
Toronto. Our Internet address is www.monday.com. Information
contained on this site is not a part of this prospectus.
We use the term "our partners" in this prospectus to
refer to the partners and shareholders of some of the firms in
the PricewaterhouseCoopers network who will become our senior
employees upon the completion of our separation. These employees
generally will retain the title "partner" within our
company following the concurrent Class A common shares
offering. Where the context permits, the term also refers to our
employees and others who in the future are named as
"partner" in this sense. In using the term
"partner" or "partners," we do not mean to
imply they are partners in the legal sense or any intention of
the parties to create a separate legal entity, such as a
partnership.
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Our Organizational Structure and Shareholders
Our organizational structure following our separation is
expected to be as shown in the diagram below. This diagram
includes our principal subsidiary, Monday SCA, which is a
Luxembourg partnership limited by shares. We are the general
partner, or manager, of Monday SCA. This diagram does not
display any of our other subsidiaries or any of Monday
SCA's subsidiaries, other than Monday Finance SA which is a
Luxembourg corporation and has no material activities, assets,
other than any potential loans it may make to Monday SCA and its
subsidiaries, or liabilities, other than liabilities in respect
of the senior notes issued as part of the PEPS Units.
Under the rollup agreements described above, firms in the
PricewaterhouseCoopers network, or their partners or
shareholders, that transfer their management consulting and
technology services businesses to us generally will exchange
their interests in these businesses for our Class A common
shares or Class I common shares of Monday SCA. The type of
equity these firms, or their partners or shareholders, will
receive depends on the particular country in which the firm is
located. Our partners in Canada also will be receiving
exchangeable shares of one of Monday SCA's
subsidiaries in connection with our separation, which shares
will be exchangeable into our Class A common shares on a
one-for-one basis. Holders of Monday SCA Class I common
shares or exchangeable shares of one of Monday SCA's
subsidiaries will have the right to purchase for nominal
consideration a number of our Class X common shares, which
have the same voting rights as our Class A common shares
but no economic rights, equal to the number of Monday SCA
Class I common shares or exchangeable shares that they
receive.
Described below is our expected equity ownership following our
separation, in each case calculated assuming all Monday SCA
Class I common shares and all exchangeable shares issued by
one of Monday SCA's subsidiaries that are not owned by us
or our subsidiaries have been redeemed
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or exchanged on a one-for-one basis for our Class A common
shares. These percentages reflect both economic interests and
voting interests.
•
Our partners will own
    approximately      % of our
    Class A common shares, not including Class A common
    shares to be issued in respect of restricted share units, or
    approximately      % if the
    underwriters exercise their over-allotment option in full. Our
    partners will enter into the voting agreement described below.
•
Our public shareholders will own
    approximately      % of our
    Class A common shares, or
    approximately      % if the
    underwriters exercise their over-allotment option in full.
The PricewaterhouseCoopers firms and their partners and
shareholders intend to dispose of all of their equity in us as a
result of the concurrent Class A common shares offering. In
the event, however, these firms and their partners and
shareholders continue to hold any of our Class A common
shares or equity in our subsidiaries, they will be subject to
voting and other restrictions as described under
"Arrangements with the PricewaterhouseCoopers Network of
Firms—Shareholders Agreement." The percentage of our
Class A common shares that these firms and their partners
and shareholders will be permitted to hold immediately following
the closing of the concurrent Class A common shares
offering will be equal to or less than the percentage set forth
in a no-action letter that we expect the Securities and Exchange
Commission to issue in connection with our separation. The
no-action letter, if granted as currently proposed by us, would
provide that the SEC would take no action to attribute our
business activities following the closing of the concurrent
Class A common shares offering to the
PricewaterhouseCoopers firms so long as these firms hold less
than a specified percentage of our equity and other specified
conditions are met. We have proposed that this percentage be
less than 20% of our Class A common shares outstanding
immediately following the closing of the concurrent Class A
common shares offering, calculated as if all Monday SCA
Class I common shares and all exchangeable shares issued by
one of Monday SCA's subsidiaries had been redeemed or
exchanged on a one-for-one basis for our Class A common
shares.
Firms in the PricewaterhouseCoopers network that are not
transferring a management consulting and technology services
business to us will fall into one of the following categories.
•
Firms with no management consulting and technology
    services businesses.
If these firms enter into
    noncompetition agreements with us, we will give them a cash
    payment.
•
Firms not invited to transfer their management consulting
    and technology services businesses to us.
Except as
    described below, if these firms agree to enter into
    noncompetition agreements with us and wind down their management
    consulting and technology services businesses that would not be
    allowed to compete with us pursuant to the terms of the
    noncompetition agreements, we will give them a cash payment.
    Otherwise, they will lose the right to use the
    PricewaterhouseCoopers name in connection with their management
    consulting and technology services businesses, and we will be
    free to compete with them. In the case of firms with business
    process management services businesses that are not being
    transferred to us, these businesses will remain with the
    PricewaterhouseCoopers firms and continue to be operated.
    Excluding business process management services businesses, the
    management consulting and technology services businesses of
    firms not invited to transfer these businesses represented
    approximately 2% of our revenues for fiscal
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year 2001. The business process management services businesses
    not being transferred to us represented approximately 3% of our
    revenues for fiscal year 2001.
•
Firms electing to transfer their management consulting and
    technology services businesses to us but which are unable to
    satisfy participation conditions at the time of the concurrent
    Class A common shares offering.
The board of the
    global coordinating entity for the PricewaterhouseCoopers
    network of firms, in its good faith discretion, has the right
    under the rollup agreements to allow these firms to complete the
    transfer to us within a period of time, not to exceed one year,
    following the closing of the concurrent Class A common
    shares offering. If this board grants such an extension, we are
    required to close the transfer during the extension period
    pursuant to the terms of the rollup agreement. If this board
    does not grant such an extension or if a PricewaterhouseCoopers
    firm ultimately fails to consummate a transfer within the
    extension period, the firm will be asked to enter into a
    noncompetition agreement with us, to wind down its management
    consulting and technology services business that would not be
    allowed to compete with us pursuant to the terms of the
    noncompetition agreement and to execute a shareholders
    agreement, if applicable. If the firm enters into these
    arrangements with us, we will give them a cash payment or
    Class A common shares, at our discretion, which shares
    would be in an amount less than the firm would have received if
    it had transferred its management consulting and technology
    services business to us. If the firm fails to enter into these
    arrangements with us, the firm may no longer use the
    PricewaterhouseCoopers name in connection with its management
    consulting and technology services business, and we will be free
    to compete with the firm. We currently expect that the
    PricewaterhouseCoopers firm in China will transfer its
    management consulting and technology services business to us
    after the closing of the concurrent Class A common shares
    offering due to regulatory reasons.
The amount of consideration to be paid to the
PricewaterhouseCoopers firms that enter into a noncompetition
agreement with us will depend on a variety of factors, including
the size of the particular PricewaterhouseCoopers firms. The
total compensation paid to these firms is not expected to exceed
$      million.
Our partners will enter into a voting agreement with each other
and us that, among other things, will provide that a separate,
preliminary vote of our partners will be conducted prior to any
vote of our shareholders. The effect of the voting agreement is
that most of our Class A common shares and our Class X
common shares held by our partners will be voted as a single
block. Because our partners will hold
approximately      % of the aggregate
voting power of our Class A common shares and our
Class X common shares, or      %
if the underwriters' over-allotment option is exercised in
full, following the closing of this offering, the decision of
our partners holding our Class A common shares and our
Class X common shares subject to the voting agreement
likely would have a significant effect on any shareholder vote,
including a vote with respect to any offer to acquire us. Our
partners have agreed not to approve any acquisition transaction
unless two-thirds of our partners vote to approve the
transaction.
Please see "Our Organizational Structure,"
"Arrangements with the PricewaterhouseCoopers Network of
Firms," "Arrangements With Our Partners,"
"Principal and Selling Shareholders in the Concurrent
Class A Common Shares Offering," "Description of
the PEPS Units" and "Description of Share
Capital" for additional information about our
organizational structure and shareholders.
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THE OFFERING
In this section, the words "we", "us" and
"our" refer only to Monday Ltd and not to any of its
subsidiaries.
What are the components of a PEPS Unit?
Each PEPS Unit consists of a purchase contract issued by us and,
initially, a $25 principal amount senior note
due                                  ,
2008 issued by Monday Finance SA. Monday Finance SA is an
indirect wholly-owned subsidiary of Monday SCA, which is our
majority-owned subsidiary. Monday SCA has agreed to absolutely,
irrevocably and unconditionally guarantee the payment of
principal, interest, additional amounts, if any, and premium, if
any, on the senior notes. We refer to the senior notes due 2008
issued by Monday Finance SA and the related guarantee by Monday
SCA collectively as the senior notes. The senior note that is a
component of each PEPS Unit is owned by you, but it will be
pledged to us to secure your obligations under the purchase
contract. If a special event redemption occurs, as described in
this prospectus, the applicable ownership interest in the
Treasury portfolio will replace the senior note as a component
of each PEPS Unit and will be pledged to us to secure your
obligations under the related purchase contract.
What is a purchase contract?
Each purchase contract underlying a PEPS Unit obligates the
holder of the purchase contract to purchase, and obligates us to
sell,
on                                  ,
2006, which we refer to as the purchase contract settlement
date, for $25 in cash, a number of our newly issued Class A
common shares equal to the settlement rate. The settlement rate
will be calculated, subject to adjustment under the
circumstances set forth under "Description of the Purchase
Contracts—Anti-dilution Adjustments," as follows:
•
if the applicable market value of our Class A common shares
    is equal to or greater than the threshold appreciation price of
    $                      ,
    the settlement rate will
    be                       ;
•
if the applicable market value of our Class A common shares
    is less than the threshold appreciation price but greater than
    the reference price of
    $                      ,
    the settlement rate will be equal to $25 divided by the
    applicable market value; and
•
if the applicable market value is less than or equal to the
    reference price of
    $                      ,
    the settlement rate will
    be                       .
"Applicable market value" means the average of the
closing price per share of our Class A common shares on
each of the twenty consecutive trading days ending on the third
trading day immediately preceding the purchase contract
settlement date. The "reference price" is the initial
public offering price of our Class A common shares.
Can I settle the purchase contract early?
You may settle a purchase contract at any time
following                                  ,
2003 (12 calendar months following the initial public offering
of our Class A common shares) through the fifth business
day immediately preceding the purchase contract settlement date
using cash, in which
case                 of
our Class A common shares will be issued pursuant to the
purchase contract. In addition, if we are involved in a merger
in which at least 30% of the consideration for our Class A
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common shares consists of cash or cash equivalents, then each
holder of a purchase contract will have the right to accelerate
and settle the purchase contract at the settlement rate in
effect immediately prior to the closing of the cash merger. You
may settle purchase contracts early only in integral multiples
of 40 purchase contracts.
Your early settlement right is subject to the condition that if
required under the U.S. federal securities laws, we have a
registration statement under the Securities Act of 1933 in
effect covering the Class A common shares deliverable upon
settlement of a purchase contract. We will use our reasonable
best efforts to have a registration statement in effect covering
such Class A common shares if so required by U.S. federal
securities laws.
What are the components of a Treasury PEPS Unit?
Each Treasury PEPS Unit consists of a purchase contract and a
Treasury security. The Treasury security is a 2.5% undivided
beneficial interest in a zero-coupon U.S. Treasury security with
a principal amount of $1,000 that matures
on                 ,
2006 (Cusip
No.                 ).
The Treasury security that is a component of each Treasury PEPS
Unit will be owned by the holder of the Treasury PEPS Unit, but
it will be pledged to us to secure the holder's obligations
under the purchase contract.
How can I create Treasury PEPS Units from PEPS Units?
Each holder of PEPS Units will have the right, at any time on or
prior to the fifth business day immediately preceding the
purchase contract settlement date, to substitute for the related
senior notes or, if the Treasury portfolio has replaced the
senior notes as a result of a special event redemption,
applicable ownership interests in the Treasury portfolio, as the
case may be, Treasury securities with a total principal amount
at maturity equal to the aggregate principal amount of the
senior notes or applicable ownership interests in the Treasury
portfolio for which substitution is being made. This
substitution will create Treasury PEPS Units, and the applicable
senior notes or applicable ownership interests in the Treasury
portfolio, as the case may be, will be released to the holder.
Because Treasury securities are issued in multiples of $1,000,
holders of PEPS Units may make this substitution only in
integral multiples of 40 PEPS Units. However, if the
Treasury portfolio has replaced the senior notes, holders of
PEPS Units may make substitutions only in multiples
of                  PEPS
Units.
How can I recreate PEPS Units from Treasury PEPS Units?
Each holder of Treasury PEPS Units will have the right, at any
time on or prior to the fifth business day immediately preceding
the purchase contract settlement date, to substitute senior
notes or, if the Treasury portfolio has replaced the senior
notes as a result of a special event redemption, applicable
ownership interests in the Treasury portfolio for the related
Treasury securities held by the collateral agent, in an
aggregate principal amount of such senior notes or applicable
ownership interest in the Treasury portfolio, as the case may
be, equal to the aggregate principal amount at maturity of the
Treasury securities. This substitution would recreate PEPS
Units, and the applicable Treasury securities would be released
to the holder. Because Treasury securities are issued in
integral multiples of $1,000, holders of Treasury PEPS Units may
make these substitutions only in integral multiples of 40
Treasury PEPS Units. However, if the Treasury portfolio has
replaced the
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senior notes, holders of the Treasury PEPS Units may make
substitutions only in integral multiples
of                 Treasury
PEPS Units.
What payments am I entitled to as a holder of PEPS Units?
Holders of PEPS Units will receive quarterly cash distributions
consisting of interest payments on the senior notes payable by
Monday Finance SA or distributions on the applicable
ownership interest in the Treasury portfolio, in each case at
the rate
of            %
per year.
Are the interest payments deferrable?
No. Monday Finance SA may not defer interest payments on the
senior notes.
What are the payment dates for the PEPS Units?
The payments described above in respect of the PEPS Units will
be payable quarterly in arrears
on                       ,                       ,                       and                       of
each year,
commencing                       ,
2002. These payments will be payable to but excluding the
earlier of the purchase contract settlement date and the most
recent quarterly payment date on or before any early settlement
of the related purchase contracts.
What payments will I be entitled to if I create Treasury PEPS
Units?
Holders of Treasury PEPS Units will not be entitled to receive
any cash distributions. However, original issue discount will
accrue on each related Treasury security.
What is remarketing?
Remarketing allows PEPS Units holders to satisfy their
obligations under the related purchase contracts by reselling
the senior notes which are a component of the PEPS Units through
the remarketing agent and using the proceeds of the remarketing
to pay the purchase price under the related purchase contracts.
Unless the Treasury portfolio has replaced the senior notes as a
component of the PEPS Units, if a PEPS Unit holder fails to
notify the purchase contract agent on or prior to the fifth
business day immediately preceding the purchase contract
settlement date of its intention to pay cash to satisfy its
obligation under the related purchase contracts, or fails to
deliver such cash on or prior to the fourth business day
immediately preceding the purchase contract settlement date, the
senior notes that are a component of such PEPS Unit will be
remarketed on the third business day immediately preceding the
purchase contract settlement date, unless a condition to the
remarketing is not satisfied. The remarketing agent will use its
reasonable best efforts to remarket the notes, bearing the reset
rate described below, at a price that results in proceeds of
approximately 100.25% of the aggregate principal amount of the
senior notes remarketed. However, the remarketing shall be
considered successful if the resulting proceeds are at least
equal to 100% of such aggregate principal amount.
Upon a successful remarketing, the portion of the proceeds equal
to the aggregate principal amount of the senior notes remarketed
will automatically be applied to satisfy in full the PEPS Unit
holders' obligations to purchase our Class A common
shares under the related purchase contracts. If any proceeds
remain after satisfying such obligations, the remarketing agent
will deduct as a
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remarketing fee an amount not exceeding 25 basis points (.25%)
of the aggregate principal amount of the senior notes remarketed
and remit any remaining proceeds for the benefit of the holders.
What happens if the senior notes are not successfully
remarketed?
If the remarketing of the senior notes fails because the
remarketing agent cannot obtain a price of at least 100% of the
total principal amount of the senior notes remarketed or because
a condition precedent to the remarketing has not been satisfied,
the interest rate on the senior notes will not be reset.
Following a failed remarketing, we will exercise our rights as a
secured party to retain the senior notes pledged as collateral
or dispose of them in accordance with applicable law. Following
such action, the PEPS Units holders' obligations to
purchase our Class A common shares under the related
purchase contracts on the purchase contract settlement date will
be satisfied in full. Following a failed remarketing, holders of
senior notes that are not part of PEPS Units will have the right
to put the senior notes to Monday Finance SA
on                       ,
2006 (the date six weeks following the purchase contract
settlement date), upon at least three business days' prior
notice at a price per senior note of $25, plus accrued and
unpaid interest and additional amounts, if any.
If I am holding a senior note as a separate security can I
participate in the remarketing?
Holders of senior notes that are not components of PEPS Units
may elect, in the manner described in this prospectus, to have
their senior notes included in the remarketing by the
remarketing agent.
Besides participating in a remarketing, how else may I
satisfy my obligations under the purchase contracts?
Holders of PEPS Units or Treasury PEPS Units may satisfy their
obligations, or their obligations will be terminated, under the
purchase contracts as follows:
•
through early settlement by the delivery of cash to the purchase
    contract agent at any time
    following                       ,
    2003 (12 calendar months following the initial public
    offering of our Class A common shares) through the fifth
    business day immediately preceding the purchase contract
    settlement date; provided that at such time, if so required
    under the U.S. federal securities laws, there is in effect a
    registration statement covering the Class A common shares
    to be delivered in respect of the purchase contracts being
    settled;
•
in the case of holders of PEPS Units, unless the Treasury
    portfolio has replaced the senior notes as a component of the
    PEPS Units, by settling the related purchase contracts with cash
    on the fourth business day immediately preceding the purchase
    contract settlement date, pursuant to prior notification to the
    purchase contract agent;
•
in the case of holders of Treasury PEPS Units, or PEPS Units if
    the Treasury portfolio has replaced the senior notes as a
    component of the PEPS Units, through the automatic application
    of the proceeds of the disposition of the Treasury securities or
    the Treasury portfolio, as the case may be; or
•
without any further action, upon the termination of the purchase
    contracts as a result of our bankruptcy, insolvency or
    reorganization.
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What interest payments will I receive on the senior notes?
Interest on the senior notes will be payable initially at the
annual rate of      % per year to, but
excluding, the reset effective date, which will be the third
business day following the date of a successful remarketing of
the senior notes, and will be paid quarterly in arrears.
Following a reset of the interest rate, the interest rate on the
senior notes will equal the reset rate from, and including, the
reset effective date to, but
excluding,                 ,
2008 (the maturity date of the senior notes) and interest will
be paid semi-annually in arrears. If there is not a successful
remarketing of the senior notes, the interest rate will not be
reset and the senior notes will continue to bear interest at the
initial interest rate, payable quarterly in arrears.
What are the payment dates on the senior notes?
Interest on the senior notes initially will be payable quarterly
in arrears on
each                       ,                       ,                       and                       ,
commencing                       ,
2002. Following a successful remarketing, interest on the senior
notes will be payable semi-annually in arrears on
each                       and                       ,
commencing                       ,
2007 (the date six months following the purchase contract
settlement date).
What is the reset rate?
The reset rate will be the interest rate determined by the
remarketing agent as the rate the senior notes should bear in
order for the senior notes remarketed to have an approximate
aggregate market value on the remarketing date of 100.25% of the
aggregate principal amount of such senior notes. The reset rate
will become effective three business days following the date of
a successful remarketing. The interest rate on the senior notes
will not be reset if there is not a successful remarketing.
The reset rate may not, however, exceed the maximum rate, if
any, permitted by applicable law.
When may the senior notes be redeemed?
The senior notes are redeemable at the option of Monday Finance
SA, in whole but not in part, upon the occurrence and
continuation of a tax event or an accounting event. Following
any such redemption of the senior notes, which we refer to as a
special event redemption, prior to the purchase contract
settlement date, the redemption price for the senior notes that
are a component of PEPS Units will be paid to the collateral
agent, who will purchase the Treasury portfolio and remit any
remaining proceeds to the holders. Thereafter, the applicable
ownership interest in the Treasury portfolio will replace the
senior notes as a component of PEPS Units and will be pledged to
us. Holders of senior notes that are not a component of PEPS
Units will receive the redemption price paid in such special
event redemption.
What is the Treasury portfolio?
The Treasury portfolio is a portfolio of zero-coupon U.S.
Treasury securities consisting of:
•
interest or principal strips of U.S. Treasury securities that
    mature on or prior to the business day immediately preceding the
    purchase contract settlement date in an aggregate amount equal
    to the principal amount of the senior notes included in the PEPS
    Units, and
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•
with respect to each scheduled payment date for the senior notes
    that occurs after the special event redemption date and on or
    before the purchase contract settlement date, interest or
    principal strips of U.S. Treasury securities that mature on or
    prior to the business day immediately preceding that payment
    date in an aggregate amount equal to the aggregate interest
    payment that would be due on that payment date on the aggregate
    principal amount of the senior notes included in the PEPS Units.
What is the ranking of the senior notes?
The senior notes will rank equally and ratably with all of the
other unsecured and unsubordinated obligations of Monday Finance
SA. The indenture under which the senior notes will be issued
will not limit the ability of Monday Finance SA to issue or
incur other debt or issue preferred stock or prohibit the
creation of liens on its assets. See "Description of the
Senior Notes."
What is the guarantee from Monday SCA?
Monday SCA will agree in the senior note indenture to
absolutely, irrevocably and unconditionally guarantee the
payment of principal, interest, additional amounts, if any, and
premium, if any, on the senior notes. The guarantee of the
senior notes will rank equally and ratably with all of the other
unsecured and unsubordinated obligations of Monday SCA. Because
Monday SCA is a holding company that derives all of its income
from its operating subsidiaries, the guarantee of the senior
notes will be effectively subordinated to liabilities of,
including any debt and preferred stock which may be incurred or
issued by, those subsidiaries. The senior note indenture will
not limit the ability of Monday SCA or its subsidiaries to incur
or issue debt or preferred stock or prohibit the creation of
liens on their assets. See "Description of the Senior
Notes—Guarantees." Despite its holding company nature,
Monday SCA is not a holding company within the meaning of
Luxembourg's Law of 31st July 1929.
What are the U.S. federal and other income tax consequences
related to the PEPS Units and the Treasury PEPS Units?
Luxembourg
Tax Considerations
Under current Luxembourg law, no income, withholding or other
taxes or stamp or other duties are imposed in Luxembourg upon
the issue, transfer or sale of the senior notes or on any
payments under the senior notes, except, in some circumstances,
to holders that for Luxembourg tax purposes are resident in or
have a permanent establishment in Luxembourg.
Bermuda
Tax Considerations
Under current Bermuda law, no income, withholding or other taxes
or stamp or other duties are imposed in Bermuda upon the issue,
transfer or sale of the purchase contracts or Class A
common shares issued under the purchase contracts or on any
payments on Class A common shares, except, in some
circumstances, to persons ordinarily resident in Bermuda.
United
States Federal Income Tax Considerations for U.S. Holders
Because a PEPS Unit will consist of a purchase contract and a
senior note, the purchase price of each PEPS Unit will be
allocated between the purchase contract and the senior note in
proportion to their relative fair market values at the time of
purchase. We expect that as of the date of issuance
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of the PEPS Units, the fair market value of each purchase
contract will be
$           and
the fair market value of each senior note will
be $           .
If a holder owns PEPS Units, such holder will include in gross
income interest payments on the senior notes when such interest
is paid or accrued in accordance with the holder's regular
method of tax accounting. In addition, under the allocation
described above of the purchase price of a PEPS Unit between the
related senior note and purchase contract, the principal amount
of the senior note will be greater than the portion of the
purchase price allocated to the senior note, and the senior note
will thus be considered for U.S. federal income tax purposes to
have been issued with original issue discount, in an amount
equal to such excess. You will be required to include this
original issue discount in income for U.S. federal income tax
purposes as it accrues over the period from the original issue
date through the reset effective date, in accordance with a
constant-yield method based on a compounding of interest.
If a holder owns Treasury PEPS Units or PEPS Units when the
Treasury portfolio has replaced the senior notes, such holder
will be treated as the owner of the applicable Treasury
securities for United States federal income tax purposes and
will be taxed accordingly on interest income, including original
issue discount and acquisition discount, gain and loss realized
with respect to such securities.
Because there is no statutory, judicial or administrative
authority directly addressing the tax treatment of PEPS Units or
instruments similar to PEPS Units, each holder is urged to
consult its own tax advisor concerning the tax consequences of
an investment in PEPS Units.
FOR ADDITIONAL INFORMATION, SEE "MATERIAL INCOME TAX
CONSEQUENCES" IN THIS PROSPECTUS, STARTING ON
PAGE      .
Will the PEPS Units be listed on a stock exchange?
We will apply to list the PEPS Units on the New York Stock
Exchange under the symbol
"           ."
Neither the Treasury PEPS Units nor the senior notes will
initially be listed and we do not have any obligation or current
intention to apply for a separate listing of either of those
securities.
Are there conditions to the closing of this offering of the
PEPS Units?
The closing of this offering of PEPS Units is conditioned upon
the successful closing of the initial public offering of our
Class A common shares, which are offered pursuant to a
separate prospectus. See "—Concurrent Class A
Common Shares Offering" below.
What are the uses of proceeds from the offering?
Monday Finance SA will distribute or loan the net proceeds of
this offering to Monday SCA, or entities controlled by Monday
SCA, which will use such proceeds (1) to pay separation and
transaction expenses, (2) to acquire businesses from
PricewaterhouseCoopers firms in several countries, (3) as
consideration for the receipt of noncompetition agreements from
several PricewaterhouseCoopers firms and (4) for general
corporate purposes. See "Use of Proceeds."
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THE OFFERING—EXPLANATORY DIAGRAMS
The following diagrams demonstrate some of the key features of
the purchase contracts, PEPS Units, Treasury PEPS Units and
senior notes and the transformation of PEPS Units into Treasury
PEPS Units and senior notes.
The following diagrams assume that the senior notes are
successfully remarketed and the interest rate on the senior
notes is reset on the third business day immediately preceding
the purchase contract settlement date.
Purchase Contracts
PEPS Units and Treasury PEPS Units both include a purchase
contract under which the investor agrees to purchase our
Class A common shares at the end of four years.
(1)
The "reference price" is
    $                ,
    which is the initial public offering price of our Class A
    common shares.
(2)
The "threshold appreciation price" is
    $                .
(3)
If the applicable market value of our
    Class A common shares is less than or equal to the
    reference price, the number of shares to be delivered will be
    calculated by dividing $25 by the reference price.
(4)
If the applicable market value of our
    Class A common shares is between the reference price and
    the threshold appreciation price, the number of shares to be
    delivered will be calculated by dividing $25 by the applicable
    market value.
(5)
If the applicable market value of our
    Class A common shares is equal to or greater than the
    threshold appreciation price, the number of shares to be
    delivered will be calculated by dividing $25 by the threshold
    appreciation price.
(6)
The "applicable market value" means the
    average of the closing price per share of our Class A
    common shares on the 20 consecutive trading days ending on the
    third trading day immediately preceding the purchase contract
    settlement date.
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PEPS Units
A PEPS Unit consists of two components as described below:
Purchase Contact
Senior Note
(Owed to Holder of
PEPS Unit by Monday Ltd)
Class A Common Shares
(Owed to Holder of
PEPS Unit by Monday
Finance SA)
% per annum
paid quarterly
guaranteed by Monday SCA
(reset in connection with
remarketing and
paid semi-annually
thereafter)
(Owed to Monday Ltd by
Holder of PEPS Unit)
$25 at Settlement
(end of year 4)
(Owed to Holder of
PEPS Unit by Monday
Finance SA)
$25 at Maturity
(end of year 6)
guaranteed by Monday
SCA
•
The holder owns the senior note but will pledge it to us to
    secure its obligations under the purchase contract.
•
If the Treasury portfolio has replaced the senior notes as a
    result of a special event redemption, the applicable ownership
    interest in the Treasury portfolio will be a component of a PEPS
    Unit and will be pledged to us to secure the holder's
    obligations under the purchase contract.
•
Following a successful remarketing of the senior notes, interest
    on the senior notes will be paid semi-annually at the reset rate.
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Treasury PEPS Units
A Treasury PEPS Unit consists of two components as described
below:
Purchase Contract
Zero Coupon
Treasury Security
(Owed to Holder of
Treasury PEPS Unit by
Monday Ltd)
Class A Common Shares
(Owed to Monday Ltd by Holder of
Treasury PEPS Unit)
$25 at Settlement
(end of year 4)
(Owed to Holder of
Treasury PEPS Unit)
$25 at Maturity
(end of year 4)
•
The investor owns the Treasury security but will pledge it to us
    to secure its obligations under the purchase contract.
Senior Notes
Senior notes have the terms described below:
Senior Note
(Owed to Holder of
Senior Note by Monday
Finance SA)
% per annum
paid quarterly
guaranteed by Monday SCA
(reset in connection with
remarketing and paid
semi-annually thereafter)
________________________________________________________________________________
(Owed to Holder of
Senior Note by Monday
Finance SA)
$25 at Maturity
(end of year 6)
guaranteed by Monday SCA
________________________________________________________________________________
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Transforming PEPS Units into Treasury PEPS Units and Senior
Notes
•
To create a Treasury PEPS Unit, the investor separates a PEPS
    Unit into its components—the purchase contract and the
    senior note—and then combines the purchase contract with a
    zero-coupon Treasury security that matures concurrently with the
    maturity of the purchase contract.
•
The investor owns the Treasury security but will pledge it to us
    to secure its obligations under the purchase contract.
•
The Treasury security together with the purchase contract
    constitutes a Treasury PEPS Unit. The senior note, which is no
    longer a component of the PEPS Unit, is tradable as a separate
    security.
•
If the Treasury portfolio has replaced the senior notes as a
    component of the PEPS Units, and a holder of a PEPS Unit creates
    a Treasury PEPS Unit, the applicable ownership interest in the
    Treasury portfolio, rather than the senior notes, will be
    released to such holder.
•
The investor can also transform Treasury PEPS Units and senior
    notes into PEPS Units. Following that transformation, the
    Treasury security, which is no longer a component of the
    Treasury PEPS Unit, is tradable as a separate security.
•
The transformation of PEPS Units into Treasury PEPS Units and
    senior notes, and the transformation of Treasury PEPS Units and
    senior notes into PEPS Units, requires certain minimum amounts
    of securities, as more fully described in this prospectus.
Concurrent Class A Common Shares Offering
The closing of this offering of PEPS Units is conditioned upon
the successful closing of the concurrent initial public offering
of our Class A common shares, which are offered pursuant to
a separate prospectus. Unless the underwriters exercise their
over-allotment option, we will not receive any proceeds from the
concurrent initial public offering of our Class A common
shares, which are being sold by firms in the
PricewaterhouseCoopers network and partners and shareholders of
some of those firms.
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Assumptions
Unless otherwise indicated, all information contained in this
prospectus:
•
assumes no exercise of the underwriters' option in the
    concurrent Class A common shares offering to purchase
    approximately             million
    Class A common shares to cover over-allotments;
•
does not take into account
    approximately            million
    Class A common shares reserved for issuance under benefit
    plans for our partners, other employees and directors, including
    approximately          million
    restricted Class A common shares and Class A common
    shares underlying restricted share units granted to our partners
    and
    approximately             million
    Class A common shares issuable upon exercise of options to
    be granted to our directors and most of our employees upon the
    closing of this offering; and
•
does not take into account
    approximately             million
    Class A common shares, or up
    to             million
    Class A common shares in total if the underwriters for this
    offering exercise their option to purchase additional PEPS Units
    in full, reserved for issuance upon the settlement of the
    purchase contracts.
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SUMMARY HISTORICAL AND PRO FORMA COMBINED FINANCIAL DATA
The following tables set forth summary historical and pro forma
combined financial data for Monday Ltd and Monday SCA derived
from our audited combined financial statements at June 30, 2000
and 2001, and for fiscal years ended June 30, 1999, 2000
and 2001, our unaudited combined balance sheet at March 31,
2002, our unaudited combined income statements before partner
distributions and benefits for the nine months ended
March 31, 2001 and 2002, and the unaudited pro forma
combined financial statements of Monday Ltd and Monday SCA, in
each case, together with the accompanying notes to these
statements. We have included unaudited historical summary and
pro forma combined financial data for both Monday Ltd and Monday
SCA because our PEPS Units are comprised of purchase contracts
issued by Monday Ltd and senior notes issued by Monday Finance
SA, a wholly owned indirect subsidiary of Monday SCA. Monday SCA
is guaranteeing the Monday Finance SA senior notes. The
principal difference between the historical summary and pro
forma combined financial data for Monday Ltd and Monday SCA
relates to the minority interest of some of our partners in
Monday SCA. The tables also include net revenues, which is
revenues after deducting reimbursables and subcontractor costs,
for these periods. Our fiscal year ends on June 30.
Our business will be comprised of the management consulting and
technology services businesses to be transferred to us
immediately prior to the closing of the concurrent Class A
common shares offering by some of the firms in the
PricewaterhouseCoopers network of firms, or by the partners or
shareholders of some of these firms, as part of our separation
from the network. The combined financial statements and notes to
these statements, however, contain historical financial results
and assets and liabilities for management consulting and
technology services businesses of firms in the
PricewaterhouseCoopers network that are not being transferred to
us as part of our separation. Accordingly, the historical
financial information set forth below includes the financial
results and assets and liabilities of businesses that Monday Ltd
or Monday SCA, as the case may be, will not own after our
separation, which financial results and assets and liabilities
are not material to Monday Ltd or Monday SCA, as the case may
be. Please see "Arrangements with the
PricewaterhouseCoopers Network of Firms" for a description
of our separation and the unaudited pro forma combined financial
statements of Monday Ltd and Monday SCA and notes to these
statements for a pro forma presentation of the financial results
of our business, which excludes the financial results and assets
and liabilities of management consulting and technology services
businesses that we will not own after our separation.
The historical financial results and assets and liabilities of
the businesses being transferred to Monday Ltd and Monday SCA as
part of our separation contained in our combined financial
statements do not reflect what Monday Ltd's and Monday
SCA's financial results and assets and liabilities in the
future as separate public companies will be or what their
financial results and assets and liabilities in the future as
separate public companies would have been had they been separate
public companies with these businesses during the periods
presented for various reasons. For example, compensation for our
partners was not reflected in combined income statements before
partner distributions and benefits as an expense. Please see the
unaudited pro forma combined financial statements of Monday Ltd
and Monday SCA and notes to these statements,
"Management's Discussion and Analysis of Financial
Condition and Results of Operations" and our combined
financial statements and notes to these statements for a more
detailed discussion of these reasons.
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The unaudited pro forma combined income statement data for the
year ended June 30, 2001, and the nine months ended
March 31, 2001 and 2002, was prepared as if our separation
and the related transactions described below, including the
concurrent offerings, had occurred as of July 1, 2000. The
unaudited pro forma combined balance sheet data was prepared as
if our separation and the related transactions had occurred as
of March 31, 2002. The unaudited pro forma combined
financial statements give pro forma effect to a number of items,
including the following:
•
our separation and the related transactions described under
    "Arrangements with the PricewaterhouseCoopers Network of
    Firms,"
•
the retention by the PricewaterhouseCoopers network of firms of
    debt included in "Amounts due to the PwC Network" in
    the combined financial statements,
•
compensation and benefits under our new compensation structure
    that we would have paid to partners had we been a corporation in
    the historical periods,
•
provision for corporate income taxes,
•
the exclusion of the financial results and assets and
    liabilities of the management consulting and technology services
    businesses of PricewaterhouseCoopers firms that are not being
    transferred to us as part of our separation, which are not
    material to us, and
•
the concurrent offerings.
The pro forma adjustments are based upon available information
and assumptions that we believe are reasonable. Please see the
notes to the unaudited pro forma combined financial statements
of Monday Ltd and Monday SCA for a more detailed discussion of
how the adjustments described above are presented in the
unaudited pro forma combined financial statements of Monday Ltd
and Monday SCA. The unaudited pro forma combined income
statements do not give effect to one-time events directly
attributable to our transition to a corporate structure and
related transactions because of their nonrecurring nature. This
summary pro forma combined financial data is illustrative only
and does not purport to represent what the financial position
and results of operations of Monday Ltd and Monday SCA actually
would have been had our separation and related transactions
occurred on the dates indicated or what their future performance
as separate public companies will be.
You should read the summary historical and pro forma combined
financial data in conjunction with "Management's
Discussion and Analysis of Financial Condition and Results of
Operations," the unaudited pro forma combined financial
statements of Monday Ltd and Monday SCA and notes to these
statements and our combined financial statements and notes to
these statements.
26
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MONDAY LTD
SUMMARY HISTORICAL AND PRO FORMA COMBINED FINANCIAL DATA
Pro Forma
Pro Forma
Historical
as adjusted
Historical
as adjusted
Nine Months
Nine Months
Year Ended
Ended
Ended
Year Ended June 30,
June 30,
March 31,
March 31,
1999
2000
2001
2001
2001
2002(3)
2002
(in thousands, except per share data)
Income Statement Data:
Revenues
$
6,230,609
$
7,130,959
$
7,481,003
$
$
5,637,753
$
5,005,260
$
Cost of services(1)
2,964,870
3,501,153
3,825,639
2,891,832
2,524,357
Reimbursables and subcontractor costs
1,212,798
1,341,290
1,516,429
1,141,532
1,041,011
Total cost of services(1)
4,177,668
4,842,443
5,342,068
4,033,364
3,565,368
Selling, general and administrative expenses(1)
1,408,261
1,595,085
1,586,126
1,157,117
965,839
Goodwill amortization
46,946
54,911
57,007
42,995
44,817
Operating income(1)
597,734
638,520
495,802
404,277
429,236
Interest income
2,816
1,918
2,553
1,914
4,544
Interest expense
(34,816
)
(47,918
)
(58,553
)
(44,914
)
(33,616
)
Other income (expense)
—
11,619
(15,618
)
(7,910
)
98
Income before partner distributions and benefits
$
565,734
$
604,139
$
424,184
$
353,367
$
400,262
Income before income taxes
Provision for income tax
Income (loss) before minority interest
Minority interest
Net income (loss)
$
$
Earnings per share data:
Earnings per share:
basic
$
$
diluted
$
$
Weighted average number shares:
basic
diluted
Other Data:
Net revenues(2)
$
5,017,811
$
5,789,669
$
5,964,574
$
$
4,496,221
$
3,964,249
$
Pro Forma
Historical
as adjusted
As of
As of
As of
June 30,
March 31,
March 31,
2000
2001
2002
2002
(in thousands)
Balance Sheet Data:
Cash and cash equivalents
$
74,352
$
110,204
$
115,193
$
Working capital
418,527
315,217
252,083
Goodwill, net
214,584
151,063
117,908
Total assets
2,199,024
1,988,499
1,807,168
Amounts due to the PwC Network
1,085,443
1,019,051
891,505
Long-term liabilities
219,357
165,709
132,405
PwC Network investment
567,218
503,034
429,255
Shareholders' equity
—
—
—
(1)
Other than the "Pro Forma as adjusted"
    columns, excludes payments for partner distributions and
    benefits.
(2)
Net revenues are revenues after deducting
    reimbursables and subcontractor costs.
(3)
As of July 1, 2001, new arrangements were
    established for sharing cost between the various lines of
    business in the PricewaterhouseCoopers network of firms. See
    Note 4 to our unaudited financial statements for the period
    ended March 31, 2002.
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MONDAY SCA
SUMMARY HISTORICAL AND PRO FORMA COMBINED FINANCIAL DATA
Pro Forma
Pro Forma
Historical
as adjusted
Historical
as adjusted
Nine Months
Nine Months
Year Ended
Ended
Ended
Year Ended June 30,
June 30,
March 31,
March 31,
1999
2000
2001
2001
2001
2002(3)
2002
(in thousands, except per share data and ratio)
Income Statement Data:
Revenues
$
6,230,609
$
7,130,959
$
7,481,003
$
$
5,637,753
$
5,005,260
$
Cost of services(1)
2,964,870
3,501,153
3,825,639
2,891,832
2,524,357
Reimbursables and subcontractor costs
1,212,798
1,341,290
1,516,429
1,141,532
1,041,011
Total cost of services(1)
4,177,668
4,842,443
5,342,068
4,033,364
3,565,368
Selling, general and administrative expenses(1)
1,408,261
1,595,085
1,586,126
1,157,117
965,839
Goodwill amortization
46,946
54,911
57,007
42,995
44,817
Operating income(1)
597,734
638,520
495,802
404,277
429,236
Interest income
2,816
1,918
2,553
1,914
4,544
Interest expense
(34,816
)
(47,918
)
(58,553
)
(44,914
)
(33,616
)
Other income (expense)
—
11,619
(15,618
)
(7,910
)
98
Income before partner distributions and benefits
$
565,734
$
604,139
$
424,184
$
353,367
$
400,262
Income before income taxes
Provision for income tax
Net income (loss)
$
$
Other Data:
Net revenues(2)
$
5,017,811
$
5,789,669
$
5,964,574
$
$
4,496,221
$
3,964,249
$
Ratio of earnings to fixed charges(4)
8.03
7.06
4.95
5.31
6.51
Pro Forma
Historical
as adjusted
As of
As of
As of
June 30,
March 31,
March 31,
2000
2001
2002
2002
(in thousands)
Balance Sheet Data:
Cash and cash equivalents
$
74,352
$
110,204
$
115,193
$
Working capital
418,527
315,217
252,083
Goodwill, net
214,584
151,063
117,908
Total assets
2,199,024
1,988,499
1,807,168
Amounts due to the PwC Network
1,085,443
1,019,051
891,505
Long-term liabilities
219,357
165,709
132,405
PwC Network investment
567,218
503,034
429,255
Shareholders' equity
—
—
—
(1)
Other than the "Pro Forma as adjusted"
    columns, excludes payments for partner distributions and
    benefits.
(2)
Net revenues are revenues after deducting
    reimbursables and subcontractor costs.
(3)
As of July 1, 2001, new arrangements were
    established for sharing cost between the various lines of
    business in the PricewaterhouseCoopers network of firms. See
    Note 4 to our unaudited financial statements for the period
    ended March 31, 2002.
(4)
For purposes of calculating ratio of earnings to
    fixed charges, (i) earnings for the nine months ended
    March 31, 2000 and 2001 and the fiscal years ended
    June 30, 1999, 2000 and 2001 represent income before
    partner distributions and benefits and income taxes,
    (ii) earnings on a pro forma basis for the nine months
    ended March 31, 2002 and the fiscal year ended
    June 30, 2001 represent income before income taxes, and
    (iii) fixed charges represent interest expense and such
    portion of rental expenses which represents an appropriate
    interest factor.
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Table of Contents
RISK FACTORS
You should carefully consider the following risk
factors and all the other information contained in this
prospectus before investing in the PEPS Units. The trading price
of the PEPS Units, the Treasury PEPS Units, our Class A
common shares and the senior notes, could decline due to any of
these risks, and you may lose all or part of your investment.
Risks Related to Our Business
Our revenues have been declining and are
expected to continue to decline through at least part of fiscal
year 2003, and our separation from the PricewaterhouseCoopers
network of firms may not prevent our revenues from continuing to
decline.
If we do not successfully maintain or, in some
cases, reestablish relationships with our clients that have
limited our services or denied us opportunities to bid for new
engagements because they are audit clients of firms in the
PricewaterhouseCoopers network, our separation may not result in
an increase in revenues. Most of these audit clients are using
our competitors to perform the services that we were not allowed
to perform or for which we were not allowed to bid. Accordingly,
we generally will not be able to regain these lost engagements
or gain any additional, or add-on, work relating to these lost
engagements. We cannot assure you that after the closing of the
concurrent offerings we will be able to successfully obtain new
engagements from these clients. The more time that passes during
which these independence-related issues continue to constrain
our business, the more that the quality of our relationships
with these clients will deteriorate. In addition, opportunities
to bid for engagements with these clients after the closing of
the concurrent offerings will depend on our clients' budget
cycles and involve varying lead times, depending on the industry
sector and the service offering involved.
Furthermore, some clients have informed us that
they will not view us as being separate from the
PricewaterhouseCoopers network until the PricewaterhouseCoopers
firms fully liquidate their ownership in us and our
subsidiaries. Accordingly, if the PricewaterhouseCoopers firms
and their partners do not dispose of all of their equity in us
and our subsidiaries, we expect to continue to experience
negative effects on our business from independence-related
issues even though the SEC may have issued a no-action letter
stating that they will not take any action to attribute our
business activities to the PricewaterhouseCoopers firms so long
as specified conditions are met. We cannot predict to what
extent this continuing ownership, if any, would affect us.
Even if we are successful in maintaining or, in
some cases, reestablishing our relationships with most of these
clients, we expect our net revenues to decline in the last
quarter of fiscal year 2002 and at least the first quarter of
fiscal year 2003 as compared to the sequentially prior quarter.
In addition, we expect our net revenues to be lower, on a year
over year basis, for at least a few quarters after the closing
of the concurrent offerings. Because our revenues in any fiscal
year are dependent in part on bookings made during previous
fiscal years, we expect to experience the negative effects of
independence-related issues on our revenues beyond fiscal year
2003. Bookings are the amount we expect to realize in revenues
after deducting reimburseables and subcontracting costs, which
we refer to as net revenues, over the life of an engagement for
which we have entered into a contract with our client.
In addition, while we believe that
independence-related issues are a significant reason for our
declining revenues, with the greatest impact being in our most
recent fiscal quarter ended March 31, 2002, we believe that
the effects of the global economic downturn described below have
been more significant contributing factors to the overall
decline in our revenues through March 31, 2002. In
addition, we are undertaking a comprehensive review of our
operations around the world. As part of the restructuring plan
that will result from this review, we expect to reduce the
number of our partners and other senior staff. Although we
expect to focus our restructuring efforts on administrative and
other non-client functions, we also will decrease the number of
partners and other senior staff with client responsibilities,
which may adversely affect our ability to generate new
engagements. Accordingly, our separation alone may not prevent
our revenues from continuing to decline. We also have described
below other risks related to our business and our separation
that may cause
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Table of Contents
our revenues to continue to decline. Our
profitability will decline if our revenues decline and we are
unable to adequately reduce our costs.
Please see "Auditor Independence Rules, the
Enron Situation and the Proposed SEC No-Action Letter" for
a general description of the laws, rules and regulations
regarding auditor independence and see "Management's
Discussion and Analysis of Financial Condition and Results of
Operations— Overview— Auditor Independence Rules, the
Enron Situation and the Impact on Our Business" for a more
detailed description of these rules and the Enron situation and
their impact on our business, including our bookings and
historical and expected revenues.
Because our fees and our ability to obtain
new engagements are affected by economic conditions, the current
economic downturn and future economic downturns may cause our
revenues and profitability to decline.
Our fees and our ability to obtain new
engagements depend on the level of business activity of our
clients, which in turn is affected by economic conditions. We
cannot predict the impact that the current global economic
downturn will have on our future revenues nor can we predict
when economic conditions will improve. Our businesses in the
United States, the United Kingdom and Germany historically have
provided a substantial part of our revenues and income before
partner distributions and benefits, which means that our
revenues and profitability are particularly affected by economic
conditions in these three countries. During an economic
downturn, our clients and potential clients often reduce or
defer existing contracts and delay entering into new
engagements. In general, companies also reduce the amount of
spending on information technology products and services during
difficult economic times, resulting in limited implementations
of new technology and smaller engagements. Because there are
fewer engagements in a downturn, competition usually increases
and fees generally decline as competitors, particularly
companies with significant financial resources, decrease rates
to maintain or increase their market share in our industry. Our
gross margin, which is our revenues less our cost of services
including reimbursables and subcontractor costs, also may
decline in an economic downturn due to lower utilization of our
client service personnel, which means fewer billable hours per
employee, and pressure on the rates we charge. A decline in
gross margin typically causes our profitability to decline.
During fiscal year 2001, we began experiencing a
significant reduction in the demand for our management
consulting and technology services and increased competition for
engagements, which we believe principally is the result of the
effects of the general downturn in the United States and
worldwide economies. This reduction in demand has continued into
fiscal year 2002. Please see "Management's Discussion
and Analysis of Financial Condition and Results of
Operations—Overview—Recent Trends in Our
Business" and "Management's Discussion and
Analysis of Financial Condition and Results of
Operations—Results of Operations" for a discussion of
the financial impact of the global economic downturn on our
revenues and profitability in fiscal years 2001 and 2002.
Because we do not currently have the skills
and capabilities to fully implement our growth strategy to
expand our application management and business process
management services, we may not be successful in implementing
this strategy, which may adversely affect our profitability and
cause us to be at a competitive disadvantage.
Although we have been providing application
management and business process management services since 1991
and 1995, respectively, we have limited experience in providing
these types of outsourcing services to clients on the scale and
in the industries and solution areas contemplated by our growth
strategy. Accordingly, we must expand and build our internal
organization significantly to achieve our growth strategy. There
are well established competitors providing these services that
have greater financial resources than we do. To successfully
build these services, we will need to hire new partners and
client service staff who have skills and capabilities that are
different than the skills and capabilities of most of our
current partners and client service staff. Accordingly, we may
not be successful in implementing our strategy to grow these
services, which may adversely affect our profitability and may
cause us to be at a competitive disadvantage relative to some of
our largest competitors. In addition, our gross margin may
decline as a result of the lower margins that are customary in
the outsourcing industry or actions we take to grow market
share. Our application management services are ongoing
maintenance and development services for software applications
used by
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Table of Contents
clients, such as finance and accounting
applications that control accounts payable, accounts receivable,
inventory tracking and general ledger processing functions. Our
business process management services are services provided by us
to our clients in which entire processes, such as accounting and
financial reporting processes, are administered and operated by
us rather than by our clients' staff. Application
management and business process management services are types of
outsourcing services. Historically, our business process
management services have not been operated together with the
other management consulting and technology services businesses
being transferred to us as part of our separation.
If we cannot maintain or expand our
strategic alliances, we may not be able to implement part of our
growth strategy, and our revenues and profitability may
decline.
We generate a substantial portion of our revenues
from engagements that include the implementation of software
developed by companies with which we have non-exclusive
strategic alliances, including Oracle Corporation, PeopleSoft,
Inc., SAP AG and Siebel Systems, Inc. In addition, the growth of
our outsourcing services will depend upon our ability to
continue our existing alliances and enter into new alliances
with information technology outsourcing companies. The loss of
any of these relationships or the inability to enter into new
relationships could adversely affect our ability to realize part
of our growth strategy and could cause our revenues and
profitability to decline. Our alliances, including our strategic
alliances, are relationships with technology companies and
companies in other fields that extend our capabilities and
service offerings. Our alliances generally include one or more
of the following cooperative elements or agreements:
•
resale arrangements, in which technology vendors
    provide us with the ability to offer discounts to our clients on
    hardware and software,
•
development arrangements, in which we agree to
    jointly develop new capabilities for existing products or
    services,
•
joint marketing arrangements,
•
access to demonstration software licenses, which
    allow us to use software from our vendors as part of our
    development and marketing activities,
•
access to or discounts on training programs and
•
arrangements to dedicate client service staff and
    other resources to building the alliance relationship.
Although we have entered into agreements with
most of the companies with which we have strategic alliances,
many aspects of our relationship with those companies are not
subject to written agreements.
If one or more of the companies with which we
have strategic alliances terminates our alliance, decides not to
renew or extend our relationship or forms closer or preferred
arrangements with our competitors, we may lose important
benefits, although in the case of hardware or software companies
we would continue to be able to deploy or implement their
products. These benefits include the generation of leads for new
engagements, the opportunity to resell products at attractive
rates and the opportunity to provide input for the development
of new products and services. We could lose these relationships
for a number of reasons, some of which are outside our control,
including business combinations between our competitors and
companies with which we have alliance relationships and the
companies with which we have relationships increasing their
direct competition with us.
Because our engagements often require us to
make initial estimates of required resources and costs which may
not be accurate, some of our engagements may not be
profitable.
Our revenues from engagements principally have
been based on the hours incurred in providing services and our
related expenses. We sometimes face client relationship
limitations on our ability to recover for unanticipated effort
and expense, even if the terms of our contracts permit us to
recover for these costs. As part of the expansion of our
outsourcing services, we plan to enter into fixed-price
contracts which may have terms of five years or more. With
fixed-price contracts, our fees are determined at the beginning
of an engagement regardless of the actual time we spend. We face
the risk that our estimates of the time and expense required to
complete the project that we used to set our fees are
inaccurate, resulting in an increased
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Table of Contents
risk that these contracts may be unprofitable. As
part of our strategy to grow our outsourcing business, we also
plan to enter into a greater number of contracts where our
revenues are linked to the cost savings realized by our clients.
We previously were limited in our ability to enter into these
types of contracts because of auditor independence-related
constraints. Our increased use of these arrangements may
increase the risk that our engagements are not profitable.
The management consulting and technology
services industry is highly competitive, and if we do not
compete effectively, our revenues and profitability may
decline.
Our industry is highly fragmented and
competitive, and our future success, including our ability to
grow, depends on our ability to compete effectively. We compete
against a number of different types of businesses, as described
in "Business— Competition." Because we will begin
operating under our new brand upon our separation, most of our
competitors will have greater brand recognition following the
closing of the concurrent offerings, which may harm our ability
to compete. In addition, the competitive conditions in our
industry are changing. If we do not respond appropriately to
these changes, our revenues and profitability may be adversely
affected, and we may not realize part of our growth strategy.
These competitive changes include the changes described below.
•
Most of our major competitors that were privately
    owned are now publicly owned or are divisions or subsidiaries of
    publicly owned companies. Accordingly, these competitors now
    have access to financial resources to grow their businesses that
    were unavailable to them several years ago. Some of our
    competitors have greater financial resources than we do, which
    may allow them to offer their services at lower prices to obtain
    greater market share or make greater investments in the
    development of new services.
•
Outsourcing services are becoming increasingly
    important to many businesses and organizations. We have
    occasionally lost bids in the past due to our limited ability to
    provide outsourcing services. Some of our competitors currently
    have much larger, stronger and more mature outsourcing
    businesses than we do. If we are unable to successfully grow our
    outsourcing services, we will be at a competitive disadvantage
    in obtaining engagements to provide outsourcing services. We
    also may face difficulty in winning new engagements from these
    businesses and organizations for other management consulting and
    technology services because of the competitive advantage a
    provider of outsourcing services has as a result of its role in
    day-to-day operations, greater visibility within the
    organization and potentially greater access to decision makers
    and information about a client's needs and plans.
•
Many businesses and organizations are
    implementing preferred provider programs that rationalize, or
    reduce, the number of management consulting and technology
    services providers from which they receive services. To become
    or remain one of these preferred providers, in our experience
    these businesses and organizations generally are requiring
    service providers to provide a broad range of services and
    solutions. If we are unable to provide a broad range of services
    and solutions, including outsourcing services, we may be
    constrained in our ability to become or remain a preferred
    provider of these businesses and organizations. In addition to
    outsourcing services, we need to develop stronger capabilities
    in systems integration services, primarily in Europe, in order
    to compete effectively for engagements that require these
    services, particularly engagements that help transform a
    business and outsourcing engagements.
•
Technology companies, including some of the
    largest hardware and software companies, increasingly are
    providing technology services to businesses and organizations.
    We have alliance relationships with many of these companies, and
    our relationships with these companies may be adversely affected
    as they increasingly compete with us for client engagements.
•
The fallout from the Enron Corporation bankruptcy
    may result in further changes and consolidation in our industry.
    We cannot predict what effect those changes will have on our
    ability to compete.
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We will face competition from the
PricewaterhouseCoopers firms, which may result in confusion
among our clients and industry vendors and reduce our
revenues.
Although we have entered into noncompetition
arrangements with the PricewaterhouseCoopers firms, following
our separation we will face some competition from these firms.
Pursuant to the terms of these arrangements, these firms will be
able to offer some management consulting and technology
services, such as most human resources services, to any client,
including through existing consulting and advisory services
businesses that are not being transferred to us. In addition,
the PricewaterhouseCoopers firms will be permitted to provide
all management consulting and technology services for clients
that have less than a specified amount of annual revenues in the
particular country where the services will be provided. In our
three largest countries in terms of revenues, the
country-specific revenue amounts are $400 million in the
United States, $1 billion in the United Kingdom and
$1 billion in Germany. These firms, however, will not be
permitted to provide any of the restricted management consulting
and technology services if those clients have $5 billion or
more in aggregate annual consolidated worldwide revenues. The
PricewaterhouseCoopers firms will continue to be able to offer
these services under the PricewaterhouseCoopers name. These
firms will not be permitted to use the
"PricewaterhouseCoopers Consulting" or "PwC
Consulting" name, although they will be able to continue to
use names they currently use that include "Consulting"
in the title. This competition may result in confusion among our
clients and industry vendors. In addition, because they will
compete with us, we may receive fewer leads from
PricewaterhouseCoopers firms, even for companies to whom they
are not permitted to provide consulting services, following the
closing of the concurrent offerings.
We believe that our business in Europe will be
most affected by this competition and the loss of these leads.
We believe that competition from the PricewaterhouseCoopers
firms in Europe may be greater than competition elsewhere in the
world because of the presence of existing consulting and
advisory practices in some of these firms that are not being
transferred to us in connection with our separation. These
practices, which historically have not been operated together
with the businesses being transferred to us, could provide the
PricewaterhouseCoopers firms with a base upon which to increase
competition with us, to the extent permitted by the
noncompetition arrangements. In addition, we believe that leads
for new engagements from other PricewaterhouseCoopers business
units, such as the audit and accounting businesses, have
recently been more important to our business in Europe, as
compared to elsewhere in the world. This is because of the more
fragmented nature of the European market, which we estimate has
resulted in a greater number of engagements with smaller clients
in Europe as compared to elsewhere in the world. Please see
"Arrangements with the PricewaterhouseCoopers Network of
Firms" for a more complete description of the
noncompetition arrangements between us and the
PricewaterhouseCoopers firms and a description of the practices
that are not being transferred to us.
If we fail to continuously offer innovative
services and keep pace with changes in technology, our fees and
our ability to obtain new engagements will be adversely affected
and our revenues and profitability will decline.
Our business depends, in part, on our ability to
anticipate industry, business and technology trends that help
businesses to become more competitive and profitable. To remain
competitive, we will need to continue to develop new services
and ideas for our clients that distinguish us from our
competitors. We also will need to identify new and evolving
technologies that will gain acceptance in the marketplace and
develop alliance relationships with new leaders in technology as
they emerge. If we fail to accomplish these objectives, we may
be unable to compete effectively for new engagements, which may
cause our revenues and profitability to decline. We may also
invest resources in new services that are not competitive or
that do not gain wide acceptance from our clients, which may
cause our profitability to decline. When providing innovative
services that distinguish us from our competitors, we generally
are able to obtain higher margin fees. Over time, however, as
our competitors begin to offer services which we may have
developed or pioneered, we typically experience decreases in the
amount of fees we can charge for these services.
Our profitability will suffer if we are not
able to maintain our fees and utilization rates and control our
costs.
Our gross margin, and therefore our
profitability, is primarily a function of hours charged to
clients by our client service staff, the average rate charged
per hour of services provided, the number of our client service
33
Table of Contents
staff and their related compensation and benefits
and our utilization rate. Our utilization rate is the number of
hours charged to clients by our client service staff divided by
the total available working hours for all our client service
staff. Accordingly, if we are not able to maintain an
appropriate utilization rate for our client service staff or
increase or maintain the fees we charge for our services, we
will not be able to sustain our gross margin and our
profitability will suffer. For example, labor laws in some of
the countries in which we operate constrain our ability to
downsize our workforce if there is less demand for our services,
which would cause our utilization rate to decline in these
countries. Our profitability is also a function of our ability
to control our costs and improve our efficiency. Please see
"Management's Discussion and Analysis of Financial
Condition and Results of Operations— Financial Statement
Presentation" for a more detailed discussion of the factors
which affect our fees, utilization rates and costs.
If we fail to attract, hire and retain
qualified personnel, we may not be able to successfully develop
and market our services or efficiently manage our
business.
Our success is largely dependent on our ability
over time to hire and retain large numbers of talented people.
In particular, to implement our growth strategy, over time we
will need to attract and retain additional skilled client
service staff, particularly employees with strong technology
skills. If we are unable to do so, we may not realize our growth
objectives, and we may not be able to maintain or increase our
revenues and profitability. To attract new client service staff
and retain our current client service staff, we may have to
increase our compensation levels in the future, which may reduce
our profitability. We recently have reduced our recruiting
activities and spending and may have difficulty reinstating our
prior level of recruiting activities to hire sufficient numbers
of employees to meet our growth objectives. In the United
States, we also have delayed the start date of new employees and
rescinded offers that were given in 2001 to some undergraduate
and graduate school students, which may adversely affect our
recruiting efforts in the near term. In addition, our voluntary
turnover rate likely will increase in the event that the global
economy improves, resulting in additional demands on our
recruiting resources. In fiscal years 2001 and 2002, we
implemented a number of initiatives, including headcount
reductions, reductions in employee compensation and reductions
in training costs, to control our costs. These initiatives and
other factors, such as the auditor independence-related
constraints under which we will continue to operate until the
closing of the concurrent offerings, have had an adverse affect
on the morale of our client service staff and may adversely
affect retention and recruiting in the future.
If the price of our Class A common
shares declines or underperforms, our ability to recruit, retain
and motivate our partners and other key employees may be
adversely affected.
In connection with our separation, our partners
will receive our equity, or equity in one or more of our
subsidiaries, in lieu of the interests in the partnerships and
corporations that they currently hold. We also will be granting
restricted share units, stock options and other equity-based
compensation to our partners in light of a reduction in the cash
component of their total target income. In the event that the
price of our Class A common shares declines or
underperforms, we may have difficulty in attracting new partners
and client service staff and retaining our current partners and
client service staff. We cannot assure you that the
noncompetition agreements we will enter into with our partners
will be sufficiently broad to prevent them from leaving us for
our competitors or other opportunities. In addition, we may not
be able to enforce these agreements in some countries. Please
see "Management— Partner Compensation" for a more
detailed description of partner compensation.
Because our client engagements may be
terminated on short notice, we may experience unexpected
declines in revenues and profitability.
When engagements are cancelled or terminated, we
lose the related revenues and we may face difficulty in
eliminating costs associated with the engagement in a timely
manner, which may reduce our profitability. We face
terminations, cancellations and delays that are the result of
factors outside of our control, such as the financial condition
of our clients or the economic climate generally. For example,
several of our existing engagements were suspended indefinitely
or cancelled following the events of September 11, 2001. We
believe that the majority of our contracts can be terminated by
our clients on short notice and without significant penalty. The
advance notice of termination required for contracts of shorter
duration and lower revenues is as
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short as 30 days. Longer-term, larger and
more complex contracts generally require a longer notice period
for termination and may include an early termination charge to
be paid to us. In addition, most of our larger engagements are
comprised of various project stages, which provide for a series
of logical termination points if a client decides to abandon or
delay a project or to use a competitor for additional stages of
a project.
Our profitability may decline due to
financial and operational risks inherent in worldwide
operations.
In fiscal year 2001, we derived approximately 52%
of our net revenues from services performed in the United
States, Canada and Mexico and 36% from services performed in
Europe, the Middle East and Africa. We derived approximately 8%
and 2% of our fiscal year 2001 net revenues, respectively, from
services performed in Asia Pacific and in South America and
Central America. Because of our extensive worldwide operations,
we face a number of financial and operational risks that may
hinder our ability to improve profitability, including the
following:
•
the lack of local recognition of our new brand,
    which will cause us to spend significant amounts of time and
    money to build a brand identity,
•
the costs of integrating and managing global
    operations,
•
difficulties in collecting payments in some
    countries,
•
restrictions on the movement of cash and other
    assets,
•
differences in, and uncertainties arising from,
    local business culture and practices,
•
multiple, and sometimes conflicting, laws and
    regulations, including tax laws,
•
political, social and economic instability,
•
international political and trade tensions,
•
price controls or restrictions on exchanges of
    foreign currencies and
•
currency exchange fluctuations.
In the past we have incurred costs or experienced
disruptions due to the factors described above and expect to do
so in the future. For example, our revenues have fluctuated
based on changes in currency exchange rates. The countries in
which we operate also impose a range of restrictions on our
employment policies that increase our operating costs in some of
these countries relative to others. For example, labor laws in
some of the countries in which we operate may restrict our
ability to enforce the reductions in compensation we expect our
partners to accept in fiscal year 2003.
Because we changed our name on
June 10, 2002, our existing and potential clients, industry
vendors, recruiting candidates and investors may not recognize
our new brand, which may cause our revenues and profitability to
decline.
We changed our legal name on June 10, 2002,
and will begin operating under our new brand upon our
separation. Because we have previously marketed our business
under the PricewaterhouseCoopers name, our existing and
potential clients, industry vendors and investors generally may
not recognize our new brand. Our name change also may cause
difficulties in recruiting qualified personnel. For example, in
some countries, such as the United Kingdom, we believe the
PricewaterhouseCoopers name is particularly valuable to our
recruiting process. We cannot predict the impact of the change
in trademarks and trade names on our business. We plan to incur
approximately $110 million of marketing expenses by the end
of fiscal year 2003 to build a new brand identity. If we fail to
build a strong new brand recognition, our revenues and
profitability may decline.
If our clients are dissatisfied with our
services, we may face costs to remedy the complaint, legal
liability and damage to our reputation, which could adversely
affect our ability to obtain new engagements.
Our reputation is critical to the success of our
business. Because we help clients with complex and important
challenges and opportunities, we must maintain a high degree of
client satisfaction to generate new engagements. Accordingly,
any claim against us involving the quality of our services may
be more damaging
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than similar claims against businesses in other
industries. In the event a client is dissatisfied with our
performance, we usually take action, which may be costly, to
remedy or mitigate the complaint. For example, we have performed
additional or remedial work for clients at discounted rates or
for no fee. In some circumstances, we also have foregone
revenues for work that has been completed. In addition, although
we typically include in our contracts provisions to limit our
exposure to legal claims relating to our services and the
applications we develop, these provisions may not protect us or
may not be enforceable in all cases.
Because our ability to protect our
intellectual property is limited, we could lose valuable assets
and the value of our services could decline, which may cause our
revenues and profitability to decline.
Our intellectual property consists primarily of
the building, renewing and sharing of knowledge among our client
service staff, such as our training materials, reusable
methodologies and techniques and expertise developed through our
engagements and other activities. The unauthorized use of our
intellectual property by third parties or the independent
development by third parties of similar intellectual property
could cause the value of our services to decline significantly,
which would likely result in downward pressure on our fees and
loss of opportunities to competitors. If we resort to legal
proceedings to enforce our intellectual property rights, the
proceedings could be burdensome and expensive, and the outcome
would be uncertain. We have only a limited ability to protect
our intellectual property. Our limited protection efforts may be
unsuccessful and unauthorized parties may copy or infringe upon
aspects of our intellectual property. Our competitors also may
independently develop similar methodologies, techniques and
expertise, and we may have no claim against them.
We may be subject to intellectual property
litigation and infringement claims, which could cause us to
incur significant expenses or prevent us from providing our
services.
We cannot be sure that our services do not
infringe upon the intellectual property rights of others. We
also cannot be sure that the products that we use and implement
at our clients do not infringe upon the intellectual property
rights of others. Any claims or litigation in this area, whether
we ultimately win or lose, could be time-consuming, may injure
our reputation, may result in costly delays or may require us to
enter into economically unfavorable royalty or licensing
arrangements. We also may be prevented from offering important
services to our clients. In our contracts, we often agree to
indemnify our clients for any liability resulting from the
alleged infringements of the intellectual property rights of
third parties. The amount of these indemnities may be greater
than the revenues we receive from a client.
Because Monday Ltd's chief executive
officer and chief financial officer recently assumed their
current responsibilities, and our other senior executives do not
have experience in managing a public company, we may have
difficulties in successfully operating our
business.
Monday Ltd's chief executive officer and
chief financial officer recently assumed their current
responsibilities. As a result, the results of our operations
reflected in the financial statements contained in this
prospectus do not reflect their leadership or guidance of our
business. In addition, other than Monday Ltd's new chief
executive officer and new chief financial officer, our senior
executives do not have experience in operating a public company.
We cannot assure you that the lack of experience operating a
public company or the lack of experience of our top two
executives in managing our business will not cause disruptions
in our operations or communications with the marketplace.
Risks that Relate to Our Separation from the
PricewaterhouseCoopers Network of Firms
The historical and pro forma combined
financial information in this prospectus may not be
representative of our results as a separate public company and,
therefore, may not permit you to predict our company's
costs of operations.
Our historical financial information is not, and
our pro forma combined financial information may not be,
indicative of our results of operations, financial position and
cash flows as a separate public company, primarily due to the
factors described below.
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•
The historical financial information in this
    prospectus does not reflect the added costs that we will incur
    as a separate public company, such as for new systems to operate
    as a separate public company when the transition services
    agreements terminate, nor does it reflect the resulting changes
    that will occur in our capital structure and operations, such as
    changes in how we fund our operations. To the extent some of
    these costs, such as costs to establish an investor relations
    department, are reflected in the unaudited pro forma combined
    financial statements, they are estimates which may differ from
    actual costs.
•
Because we historically operated through entities
    taxed as partnerships in many countries, including the United
    States, prior to our transition to a corporate structure, we
    have not paid, on a historical basis, a material amount of taxes
    on our earnings at an entity level. In addition, historically we
    have not paid salaries to our partners, who will be our
    employees, from a legal and accounting standpoint, after this
    offering. As a result, in preparing our unaudited pro forma
    combined financial statements we deducted and charged to
    earnings the estimated income taxes based on estimated tax rates
    in jurisdictions in which we operate, which may differ from our
    actual tax rates in the future. We also estimated compensation
    and benefit costs for our partners, which may differ from actual
    costs for various reasons, including our need to hire additional
    client service staff over time to implement parts of our growth
    strategy.
•
Our historical and pro forma combined financial
    statements in this prospectus reflect allocations of expenses
    among the various firms in the PricewaterhouseCoopers network
    and between our business and the other businesses of these
    firms. These services actually could be more expensive for us in
    the future as a public company than is shown in our historical
    and pro forma combined financial statements. We also may face
    costs associated with the termination of our transition services
    if we request services that require additional investment or
    expenditures by the PricewaterhouseCoopers firms that have not
    been fully reimbursed at the time of termination. In addition,
    we may lose benefits relating to the size of the combined
    PricewaterhouseCoopers firms, such as purchasing power when
    buying products and services from vendors.
•
Our historical combined financial statements and
    notes to these statements contain historical financial results
    and assets and liabilities for management consulting and
    technology services businesses of firms in the
    PricewaterhouseCoopers network that are not being transferred to
    us as part of our separation.
Please see our unaudited pro forma combined
financial statements, "Management's Discussion and
Analysis of Financial Condition and Results of Operations"
and our combined financial statements for a more detailed
discussion of the factors set forth above.
Because we have received benefits from our
relationship with the PricewaterhouseCoopers firms in the past,
our separation could adversely affect our revenues and
profitability.
Our business historically has benefited from
referrals from the audit, tax and other businesses within the
PricewaterhouseCoopers network. While many parts of our business
are being adversely affected by the auditor independence issues
discussed in this prospectus, the leads we receive from the
audit, tax and other businesses historically have been an
important part of our business. These leads are particularly
important for engagements with smaller clients, many of which
are not publicly traded companies. Following the closing of the
concurrent offerings, the PricewaterhouseCoopers firms and their
partners and shareholders will no longer have the same
incentives to provide us with leads regarding new engagements,
and we will not be able to pay them referral fees as long as
they own any of our equity. We cannot assure you that these
leads will continue following the closing of the concurrent
offerings and, accordingly, our revenues and profitability may
be adversely affected. We believe that our business in Europe
will be most affected by the loss of these leads from the
PricewaterhouseCoopers firms. We believe that leads for new
engagements from other PricewaterhouseCoopers business units,
such as the audit and accounting businesses, have recently been
more important to our business in Europe, as compared to
elsewhere in the world. This is because of the more fragmented
nature of the European market, which we estimate has resulted in
a greater number of engagements with smaller clients in Europe
as compared to elsewhere in the world.
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Because our business currently is part of
the businesses of separate firms which have their own governance
and management, we may experience difficulty in implementing our
growth strategy as we transition to a corporate
structure.
From time to time in the past, we have
experienced difficulty in implementing our common business
strategies and standards, including our risk management
practices, and creating a consistent operating model across the
world due to differences in culture and ownership. Prior to our
separation from the PricewaterhouseCoopers network, we have had
to develop our common approaches by reaching consensus among the
firms in the PricewaterhouseCoopers network, particularly the
firms in Europe. Following our separation, we will need to
realign quickly the priorities of our partners so that they act
as employees for the benefit of our company as a whole and not
merely for the benefit of their country or region. Even after
our separation, however, we will need to ensure that our common
business model takes into account the differences that exist in
our business around the world. If we are not able to reconcile
these needs, we may not be able to effectively implement a part
of our growth strategy.
Charges related to a number of nonrecurring
items in fiscal years 2002, 2003 and 2004 will substantially
lower our net income, and this effect in the fiscal quarter
ending September 30, 2002, will be particularly
significant.
In connection with our separation and transition
to a corporate structure and restructuring activities, we have
incurred or will incur charges relating to a number of
nonrecurring items during fiscal years 2002, 2003 and 2004.
These include costs relating to our separation, such as transfer
taxes, costs associated with changing and marketing our new name
and costs associated with creating separate systems and
processes. We expect these costs, in the aggregate, to be
between $200 million and $300 million. We also will
recognize compensation expense in the first quarter of fiscal
year 2003 of approximately $117 million from the grant of
restricted share units and the sale of Class A common
shares to our partners. In addition, we expect to record a
charge of approximately $40 million in the fourth quarter
of fiscal year 2002 and $60 million to $100 million in
the first quarter of fiscal year 2003 in connection with
restructuring activities. Please see "Management's
Discussion and Analysis of Financial Condition and Results of
Operations—Overview—Accounting Matters relating to Our
Separation and Transition to a Public Company" for a more
detailed description of these charges.
Because we will rely on the
PricewaterhouseCoopers firms for important transition services,
we face a number of significant risks.
Following our separation from the
PricewaterhouseCoopers network, we will continue to rely on the
PricewaterhouseCoopers network of firms for many important
services and support functions. We have described the
significant risks we believe may be associated with our
transition services agreements below.
•
Some of the services and support functions to be
    provided by the PricewaterhouseCoopers network of firms are
    critical to our ability to manage our business. For example, we
    will rely on these firms to perform important accounting and
    financial information services for us for up to three years
    following the closing of this offering. We also may rely on some
    of these firms for additional financial reporting services to
    assist us in meeting our public disclosure obligations. These
    firms do not operate a single combined financial accounting and
    reporting system. Instead, we will be relying on a large number
    of separate firms to provide us with the information we require
    to fulfill our public disclosure obligations. If the quality or
    timeliness of the services we receive from the
    PricewaterhouseCoopers firms is not satisfactory, we may not be
    able to effectively operate our business and we may face
    difficulty in reporting our financial performance on a timely
    basis, which could adversely affect investor confidence and may
    result in a decrease in the price of our Class A common
    shares.
•
There will be significant limitations on the
    liability that firms in the PricewaterhouseCoopers network will
    have in connection with the provision of services under the
    transition services agreements. In general, the maximum
    aggregate liability of a PricewaterhouseCoopers firm will be
    limited to an amount equal to six months of fees payable to the
    PricewaterhouseCoopers firm under the transition services
    agreements signed by the particular PricewaterhouseCoopers firm.
    Our damages from a
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breach of these agreements, however, by the
    PricewaterhouseCoopers firm, could materially exceed its
    liability under these agreements. The PricewaterhouseCoopers
    firms will not have joint and several liability for breaches of
    the agreements, which means that a PricewaterhouseCoopers firm
    will not be responsible for breaches by another
    PricewaterhouseCoopers firm. Accordingly, if a
    PricewaterhouseCoopers firm breaches its agreement to perform
    transition services for us, we may not have an effective means
    to seek remedy or receive adequate compensation for the breach.
•
Each PricewaterhouseCoopers firm has agreed to
    use commercially reasonable efforts to secure third party
    consents that are needed to provide us with services we have
    historically received. We cannot assure you that these third
    party consents will be secured, and if they are secured, what,
    if any, consent fee will be required by a consenting third
    party. We will bear some or all of any costs, expenses and fees
    required to secure any third party consent. If a third party
    consent necessary to provide us services cannot be secured and
    an alternative supplier cannot be employed, the
    PricewaterhouseCoopers firms may not be able to provide some
    services to us, which could prevent us from effectively
    operating our business.
We have no history operating as a separate
public company, and we may be unable to make, or may incur
significant costs in making, the changes necessary to operate as
a separate public company.
With respect to the transition services to be
provided to us by the PricewaterhouseCoopers firms, we will need
to build systems and support functions to perform these services
internally or enter into agreements with others to provide these
services prior to the expiration of the transition services
agreements, which generally have three year terms. The cost to
build these systems and support functions or to acquire these
services from others may be more costly than the cost of
services provided by the PricewaterhouseCoopers network, which
may result in a decline in our profitability. Even if we build
the systems and support functions to perform these services
internally prior to the expiration of the transition services
agreements, our implementation of the new systems and support
functions or the transition of data from the
PricewaterhouseCoopers network systems to our systems may not be
successful, which could adversely affect investor confidence and
may result in a decrease in the price of our Class A common
shares. Please see "Arrangements with the
PricewaterhouseCoopers Network of Firms" for a more
detailed description of the services that will be provided by
the PricewaterhouseCoopers network of firms and the transition
services agreements.
Risks That Relate to Ownership of Our
Class A Common Shares Deliverable Upon Settlement of the
Purchase Contracts
Our quarterly revenues and other financial
results are likely to vary from quarter to quarter in future
periods, which may cause the price of our Class A common
shares to decline.
Our quarterly financial results, including
revenues, gross margin and operating income, have varied
significantly in the past and are likely to vary significantly
in the future. For example, during the last seven quarters, our
operating income ranged from $55 million for the fiscal
quarter ended September 30, 2000, to $226 million for
the fiscal quarter ended March 31, 2001. The beginning or
ending of multiple large engagements, for example, during a
fiscal quarter could cause our revenues, gross margin and
operating income to vary considerably from one fiscal quarter to
the next. We also experience seasonal variations in our revenues
because we tend to book new engagements at particular times of
the year, such as during the first three months of each calendar
year when our clients' new budgets generally become
available, and because there are fewer available work days in
some quarters as a result of traditional holiday and vacation
patterns. Please see "Management's Discussion and
Analysis of Financial Condition and Results of Operations—
Quarterly Results of Operations" and "Business—
Business Development and Marketing— Sales Process" for
more information on our quarterly results and the seasonal
variations in our business.
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Because there has not been any public
market for our Class A common shares, the market price and
trading volume of our Class A common shares may be
volatile, and you may not be able to resell your shares at or
above the price you paid or are deemed to have paid upon
settlement of the purchase contract.
Prior to the closing of the concurrent
Class A common shares offering, there has been no trading
market for our Class A common shares. We cannot predict the
extent to which investors' interest will lead to a liquid
trading market or whether the market price of our Class A
common shares will be volatile, and you may have difficulty
reselling your Class A common shares. The price of our
Class A common shares after the concurrent Class A
common shares offering as well as after your receipt of
Class A common shares upon settlement of the purchase
contracts may fluctuate widely, depending upon many factors,
including:
•
the perceived prospects for the management
    consulting and technology services industry in general,
•
differences between our actual financial and
    operating results and those expected by investors,
•
changes in the share price of public companies
    with which we compete,
•
news about our industry and our competitors,
•
changes in general economic or market conditions
    and
•
broad market fluctuations.
Our Class A common shares may trade at
prices significantly below the initial public offering price. In
addition, when the market price of a company's common
equity drops significantly, stockholders often institute
securities class action lawsuits against the company. A lawsuit
against us could cause us to incur substantial costs and could
divert the time and attention of our management and other
resources.
The price of our Class A common shares
may decline due to the large number of outstanding shares
eligible for future sale to the public, including any
Class A common shares held by the PricewaterhouseCoopers
firms that must be divested within five years of the concurrent
Class A common shares offering.
Sales of substantial amounts of our Class A
common shares, or the possibility of these sales, may adversely
affect the price of our Class A common shares and may make
it more difficult for us to raise capital through the issuance
of equity securities. If firms in the PricewaterhouseCoopers
network continue to hold our equity following the closing of the
concurrent Class A common shares offering, they will be
required to completely divest themselves of all our Class A
common shares and equity in any of our subsidiaries during the
five year period following the closing of the concurrent
Class A common shares offering. The obligation by the
PricewaterhouseCoopers firms to sell or otherwise dispose of our
Class A common shares may depress the market price for our
Class A common shares. In addition, a substantial number of
shares and units relating to these shares, which will be subject
to transfer restrictions, will be held by our partners after the
closing of the concurrent Class A common shares offering,
including shares issued to our partners in redemption of their
interests in their PricewaterhouseCoopers firms, and shares to
be issued in respect of restricted share units which will be
granted to our partners as part of their compensation for fiscal
year 2003 in connection with the closing of the concurrent
Class A common shares offering. Furthermore, assuming an
offering price of $     in the
concurrent Class A common shares offering, we will issue up
to   million additional Class A common shares, or
up to   million Class A common shares if the
underwriters for this offering exercise their option to acquire
additional PEPS Units, not later
than                     ,
2006, to holders of the PEPS Units. Sales of our Class A
common shares by individual PricewaterhouseCoopers partners, by
our partners or by former holders of the PEPS Units in frequent
open market transactions may depress the market price for our
Class A common shares.
Upon the closing of the concurrent Class A
common shares offering and assuming all Class I common
shares of Monday SCA and all exchangeable shares issued by one
of Monday SCA's subsidiaries have been redeemed or
exchanged on a one-for-one basis into our Class A common
shares, there will be approximately   million of our
Class A common shares outstanding, or
approximately   million shares if the underwriters
exercise their over-allotment option in full. Of these shares,
approximately   million shares sold in the concurrent
Class A common shares offering, or
approximately   million shares if the
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underwriters exercise their over-allotment option
in full, will be freely transferable without restriction or
further registration under the Securities Act of 1933. The
remaining approximately   million shares, which
includes shares held by or on behalf of our partners and,
possibly, shares held by the PricewaterhouseCoopers firms and
their partners and shareholders, generally will be available for
future sale subject to some limitations on the timing, amount
and method of those sales imposed by regulations promulgated by
the Securities and Exchange Commission. The sale of these shares
is also subject to contractual transfer restrictions. The
Class A common shares issuable to holders of PEPS Units
generally will be freely transferable upon issuance without
restriction or further registration under the Securities Act of
1933.
As part of our separation, we will enter into a
shareholders agreement with each of the PricewaterhouseCoopers
firms receiving our Class A common shares and shares issued
by our subsidiaries. This agreement entitles these shareholders
and, in some circumstances, their partners and shareholders to
demand registration rights which require us to file a
registration statement with the SEC for the resale of shares, if
any, held by them. We also have granted them the right to
participate in some other registered offerings of our
Class A common shares that may occur from time to time.
We plan to issue a large number of rights
and options to purchase Class A common shares to our
partners and other employees that could dilute the interest of
holders of Class A common shares in us.
Upon the closing of the concurrent Class A
common shares offering we will have
approximately   million Class A common shares
available for issuance to our partners and other employees in
connection with grants of restricted Class A common shares,
restricted share units representing Class A common shares
or options under our employee benefits arrangements. At the
closing of the concurrent Class A common shares offering,
we anticipate granting approximately   million
restricted Class A common shares and restricted share units
representing Class A common shares to our partners and
options to purchase approximately   million
Class A common shares to our directors and most of our
employees.
We may need additional capital in the
future, which may not be available to us. Raising additional
capital will dilute the ownership of holders of Class A
common shares in us and may cause the market price of our
Class A common shares to fall.
We may need to raise additional funds through
public or private debt or equity financings in order to:
•
fund working capital needs,
•
launch new services and products, such as our
    outsourcing services,
•
acquire new businesses or invest in existing
    businesses,
•
expand our business into new regions and
    countries or
•
otherwise respond to competitive pressures.
Any additional capital raised through the sale of
equity will dilute the ownership percentage of holders of
Class A common shares in us and may decrease the market
price of our Class A common shares. Furthermore, any
additional financing we may need may not be available on terms
favorable to us, or at all.
In addition, we will use the proceeds of this
offering to fund separation and transaction expenses, to make
payments to some PricewaterhouseCoopers firms in connection with
our separation, to fund our working capital needs and for other
purposes as described in "Use of Proceeds" and
"Management's Discussion and Analysis of Financial
Condition and Results of Operations— Liquidity and Capital
Resources."
The terms of the voting agreement among our
partners and the anti-takeover provisions of our memorandum of
association and bye-laws and our shareholder rights agreement
could delay or prevent a change of control that you may
favor.
Our partners will enter into a voting agreement
with each other and us that, among other things, will provide
that a separate, preliminary vote of our partners will be
conducted prior to any vote of our shareholders. The effect of
the voting agreement is that most of our Class A common
shares and our Class X common shares held by our partners
will be voted as a single block. Because our partners will hold
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approximately      % of
the aggregate voting power of our Class A common shares and
our Class X common shares,
or      % if the underwriters'
over-allotment option is exercised in full, following the
closing of the concurrent Class A common shares offering,
the decision of our partners holding our Class A common
shares and our Class X common shares subject to the voting
agreement likely would have a significant effect on any
shareholder vote, including a vote with respect to any offer to
acquire us. Our partners have agreed not to approve any
acquisition transaction unless two-thirds of our partners vote
to approve the transaction.
Provisions of Monday Ltd's memorandum of
association and bye-laws and Monday Ltd's shareholder
rights agreement, which will be in effect upon completion of our
separation, also may discourage, delay or prevent a merger or
other change of control that shareholders may consider favorable
or may impede the ability of our shareholders to change our
management. The provisions of our memorandum of association and
bye-laws and our shareholder rights agreement, among other
things, will:
•
issue rights, called poison pills, to holders of
    our common shares that will make an acquisition very difficult
    without the approval of our board of directors,
•
divide our board of directors into three classes,
    with members of each class to be elected for staggered
    three-year terms,
•
limit the right of shareholders to remove
    directors,
•
regulate how shareholders may present proposals
    or nominate directors for election at annual meetings of
    stockholders and
•
authorize our board of directors to issue
    preferred shares in one or more series, without shareholder
    approval, which may have the effect of making an offer for our
    shares more expensive to the bidder.
Please see "Arrangements with Our
Partners— Monday Ltd Voting Agreement" and
"Description of Share Capital" for a description of
these agreements and provisions.
Bermuda law differs from the laws in effect
in the United States and may afford less protection to
shareholders.
Monday Ltd's corporate affairs are governed
by the Companies Act 1981 of Bermuda. The Companies Act differs
in some material respects from laws generally applicable to
United States corporations and shareholders, including the
provisions relating to interested directors, mergers and
acquisitions, takeovers, shareholder lawsuits and
indemnification of directors. Generally, the duties of directors
and officers of a Bermuda company are owed to the company only.
Shareholders of Bermuda companies generally do not have rights
to take action against directors or officers of the company and
may only do so in limited circumstances. Specifically, under
Monday Ltd's bye-laws and as permitted by Bermuda law, each
shareholder has waived any claim or right of action against
Monday Ltd's directors or officers for any action taken by
directors or officers in the performance of their duties, except
for actions involving fraud or dishonesty. Please see
"Description of Share Capital" for a description of
these restrictions. In addition, the rights of Monday Ltd's
shareholders and the fiduciary responsibilities of Monday
Ltd's directors under Bermuda law are not as clearly
established as under statutes or judicial precedent in existence
in jurisdictions in the United States, particularly the State of
Delaware. Therefore, Monday Ltd's shareholders may have
more difficulty protecting their interests than would
shareholders of a corporation incorporated in a jurisdiction of
the United States.
Potential changes to United States federal
tax and other laws could increase our effective tax rate or
could have other adverse effects on our business.
Legislation has been introduced in the United
States Congress that would reduce or eliminate the tax
advantages of corporate inversion transactions, which typically
involve a United States corporation changing its legal structure
so that it becomes owned by a new parent corporation organized
in a low-tax jurisdiction, such as Bermuda. This legislation, if
enacted, could cause these new parent corporations to be taxed
as United States corporations or could have other adverse
effects intended to deter these transactions. Other legislation
has been introduced that would impose limitations on awarding
government contracts to these companies. Any such legislation
may be enacted with retroactive effect, which may result in the
termination of existing
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contracts. If such legislation is enacted, and is
made applicable to us, our revenues and profitability would
decline.
The formation of our company will be accomplished
by the combination of separately-owned and managed businesses in
the PricewaterhouseCoopers network of firms. Based upon the
allocation of value under the rollup agreements, slightly more
than half of these businesses and their owners have never been
subject to United States income tax laws. In addition, the
United States PricewaterhouseCoopers firm and its partners
should own less than 50% of our company, even before taking into
account sales of our Class A common shares in the
concurrent Class A common shares offering, and should own a
considerably lower percentage of our company following the
closing of the concurrent Class A common shares offering.
Nevertheless, because the formation of our company has some
similarities with corporate inversion transactions, it is
possible that this legislation, if enacted, could be applicable
to the formation of our company, which could result in an
increase in the effective tax rate of our company, result in the
imposition of United States withholding taxes on any dividend
distributions by us to non-United States shareholders, reduce
our revenues from the United States government or have other
adverse effects. If any of the legislation described above were
enacted, or appears likely to be enacted, and would apply to our
company, we may decide to convert to a United States
corporation, as described in "Our Organizational
Structure."
Risks That Relate to this Offering and
Ownership of PEPS Units or Treasury PEPS Units
You assume the risk that the market value
of our Class A common shares may decline.
Although as a holder of PEPS Units or Treasury
PEPS Units you will be the beneficial owner of the related
senior notes, applicable ownership interests in the Treasury
portfolio or Treasury securities, as the case may be, you do
have an obligation pursuant to the purchase contract to buy our
Class A common shares. Prior to the purchase contract
settlement date, unless you pay cash to satisfy your obligation
under the purchase contract or the purchase contracts are
terminated due to our bankruptcy, insolvency or reorganization,
either the proceeds derived from the remarketing of the senior
notes or our foreclosure on your pledged senior notes or the
principal of the appropriate applicable ownership interest of
the Treasury portfolio when paid at maturity, in the case of
PEPS Units, or the principal of the related Treasury securities
when paid at maturity, in the case of Treasury PEPS Units, will
automatically be used on your behalf to satisfy your obligation
to purchase a specified number of shares of our Class A
common shares. The market value of the Class A common
shares received by you on the purchase contract settlement date
may not be equal to or greater than the effective price of $25
paid by you for our Class A common shares on the date of
this prospectus. Assuming an offering price in the concurrent
Class A common shares offering of
$     , which would also be the
reference price, if the applicable market value of the
Class A common shares is less than
$     , the aggregate market value of
the Class A common shares issued to you on the purchase
contract settlement date will be less than the effective price
paid by you for such Class A common shares on the date of
this prospectus. Accordingly, you assume the risk that the
market value of the Class A common shares may decline, and
that the decline could be substantial.
The opportunity for equity appreciation
provided by an investment in the PEPS Units or Treasury PEPS
Units is less than that provided by a direct investment in our
Class A common shares.
Your opportunity for equity appreciation afforded
by investing in the PEPS Units or Treasury PEPS Units is less
than your opportunity for equity appreciation if you directly
invested in our Class A common shares. This opportunity is
less because, assuming an offering price in the concurrent
Class A common shares offering of
$     , the market value of the
Class A common shares you receive pursuant to a purchase
contract on the purchase contract settlement date, assuming that
the market value is the same as the applicable market value of
the Class A common shares, will only exceed the effective
price of $25 paid by you for such Class A common shares on
the date of this prospectus if the applicable market value of
the Class A common shares exceeds the threshold
appreciation price of
$                    ,
which represents an appreciation of
approximately           %
over the assumed reference price of
$     . In this event, you would
receive on the purchase contract settlement date only
approximately           %
(the percentage equal to $25 divided by the threshold
appreciation
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price) of the Class A common shares that you
would have received if you had made a direct investment in our
Class A common shares on the date of this prospectus.
The trading prices for the PEPS Units and
Treasury PEPS Units will be directly affected by the trading
price of our Class A common shares.
The trading prices of PEPS Units and Treasury
PEPS Units in the secondary market will be directly affected by
the trading price of our Class A common shares (for which
no trading market exists prior to the closing of the concurrent
Class A common shares offering), the general level of
interest rates and our credit quality. It is impossible to
predict whether the price of the Class A common shares or
interest rates will rise or fall. Trading prices of the
Class A common shares will be influenced by our operating
results and prospects and by economic, financial and other
factors. In addition, general market conditions, including the
level of, and fluctuations in the trading prices of stocks
generally, and sales of substantial amounts of Class A
common shares by us or others in the market after the offering
of the PEPS Units, or the perception that such sales could
occur, could affect the price of our Class A common shares.
See "Risks That Relate to Ownership of Our Class A
Common Shares Deliverable Upon Settlement of the Purchase
Contracts." Fluctuations in interest rates may give rise to
arbitrage opportunities based upon changes in the relative value
of the Class A common shares underlying the purchase
contracts and of the other components of the PEPS Units. Any
such arbitrage could, in turn, affect the trading prices of the
PEPS Units, Treasury PEPS Units, senior notes and our
Class A common shares.
If you hold PEPS Units or Treasury PEPS
Units, you will not be entitled to any rights with respect to
our Class A common shares, but you will be subject to all
changes made with respect to our Class A common
shares.
If you hold PEPS Units or Treasury PEPS Units,
you will not be entitled to any rights with respect to our
Class A common shares, including, without limitation,
voting rights or rights to receive any dividends or other
distributions on the Class A common shares, but you will be
subject to all changes affecting the Class A common shares.
You will only be entitled to rights on the Class A common
shares if we deliver Class A common shares pursuant to the
purchase contracts and the applicable record date, if any, for
the exercise of rights occurs after the date such shares are
issued. For example, in the event that an amendment is proposed
to Monday Ltd's memorandum of association or bye-laws
requiring stockholder approval and the record date for
determining the stockholders of record entitled to vote on the
amendment occurs prior to delivery of the Class A common
shares, you will not be entitled to vote on the amendment,
although you will nevertheless be subject to any changes in the
powers, preferences or special rights of our Class A common
shares.
We may issue additional Class A common
shares and thereby materially and adversely affect the price of
our Class A common shares.
The number of Class A common shares that you
are entitled to receive under the purchase contracts is subject
to adjustment for certain stock splits and combinations, stock
dividends and certain other actions by us that modify our
capital structure. We will not adjust the number of Class A
common shares that you are to receive for other events,
including offerings of Class A common shares for cash by us
or in connection with acquisitions or sales of our Class A
common shares by our partners or partners or member firms of the
PricewaterhouseCoopers network or issuances of Class A
common shares in exchange for shares of Monday SCA. We are not
restricted from issuing additional Class A common shares
during the term of the purchase contracts and have no obligation
to consider your interests for any reason. Any issuance of
additional Class A common shares or sales of Class A
common shares by our partners or partners or member firms of the
PricewaterhouseCoopers network, may materially and adversely
affect the price of our Class A common shares and, because
of the relationship of the number of shares to be received on
the purchase contract settlement date to the price of the
Class A common shares, may also adversely affect the
trading price of PEPS Units or Treasury PEPS Units.
The secondary market for the PEPS Units or
Treasury PEPS Units may be illiquid.
It is not possible to predict how PEPS Units,
Treasury PEPS Units or senior notes will trade in the secondary
market or whether the market will be liquid or illiquid. There
is currently no secondary market for
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either our PEPS Units or our Treasury PEPS Units.
We will apply to list the PEPS Units on the New York Stock
Exchange. We do not have any obligation or current intention to
apply for a separate listing of the Treasury PEPS Units or the
senior notes. There can be no assurance as to the liquidity of
any market that may develop for the PEPS Units, the Treasury
PEPS Units or the senior notes, or of your ability to sell these
securities or whether a trading market, if it develops, will
continue. In addition, in the event you or others were to
substitute Treasury securities for senior notes or senior notes
for Treasury securities, thereby converting PEPS Units to
Treasury PEPS Units or Treasury PEPS Units to PEPS Units, as the
case may be, the liquidity of PEPS Units or Treasury PEPS Units
could be adversely affected. There can be no assurance that the
PEPS Units will not be delisted from the New York Stock Exchange
or that trading in the PEPS Units will not be suspended as a
result of the creation of Treasury PEPS Units, which could cause
the number of PEPS Units to fall below the requirement for
listing securities on the New York Stock Exchange.
You may not be able to exercise your right
to settle a purchase contract prior to the purchase contract
settlement date unless a registration statement under the
Securities Act of 1933 is in effect covering the Class A
common shares deliverable upon early settlement of a purchase
contract.
Your early settlement right is subject to the
condition that, if required under the U.S. federal securities
laws, we have a registration statement under the Securities Act
of 1933 in effect covering the Class A common shares
deliverable upon early settlement of a purchase contract.
Although we have agreed to use our reasonable best efforts to
have such a registration statement in effect if so required by
U.S. federal securities laws, any failure or inability to
maintain an effective registration statement covering such
Class A common shares may prevent or delay an early
settlement.
Your rights to the pledged securities will
be subject to our security interest.
Although you will be the beneficial owner of the
related senior notes, applicable ownership interests in the
Treasury portfolio or Treasury securities, as applicable, those
securities will be pledged to the collateral agent to secure
your obligations under the related purchase contracts. Thus,
your rights to the pledged securities will be subject to our
security interest. Therefore, for so long as the related
purchase contract remains in effect, you will not be allowed to
withdraw your pledged securities except by substituting
collateral to create Treasury PEPS Units or recreate PEPS Units,
as described in this prospectus.
The delivery of senior notes, applicable
ownership interests in the Treasury portfolio and Treasury
securities upon termination of the purchase contract is subject
to potential delay.
The purchase contracts provide for automatic
termination if certain bankruptcy, insolvency or reorganization
events occur with respect to Monday Ltd. If the purchase
contracts terminate upon one of those events, your rights and
obligations under your purchase contract will also terminate,
including your obligation to pay for and your right to receive
our Class A common shares. The pledge agreement provides
that upon termination of the purchase contracts your senior
notes, applicable ownership interests in the Treasury portfolio
and Treasury securities will be released from the pledge
arrangement. Notwithstanding an automatic termination of the
purchase contract, procedural delays may affect the timing of
the delivery to you of your senior notes, applicable ownership
interests in the Treasury portfolio and Treasury securities
being held as collateral under the pledge agreement if we are
the subject of a bankruptcy proceeding.
The senior notes may be redeemed upon the
occurrence of a tax event or an accounting event.
Monday Finance SA may redeem the senior notes, on
not less than 30 days' nor more than 60 days'
prior written notice, in whole but not in part, at any time
before                     ,
2008 if a tax event or an accounting event occurs and continues
under the circumstances described in this prospectus under
"Description of the Senior Notes—Optional
Redemption—Special Events." If Monday Finance SA
exercises this option, it will redeem the senior notes for cash
at the redemption amount plus overdue interest and additional
amounts, if any, which we refer to as the redemption price. If
the special event redemption occurs before the purchase contract
settlement date, the redemption price payable to you as a holder
of PEPS Units will be distributed to the collateral agent, who
in turn will purchase the Treasury portfolio and will remit the
remainder of the redemption price, if any, to each holder of
senior notes. The applicable ownership interests in the Treasury
portfolio will then be substituted for the senior notes as
collateral to secure your obligations under the related
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purchase contracts. If your senior notes are not
components of PEPS Units, you will receive the redemption price
directly. There can be no assurance as to the impact on the
market price for the PEPS Units if the applicable ownership
percentage of the Treasury portfolio is substituted as
collateral in place of any senior notes so redeemed. A
redemption following a tax event or an accounting event will be
a taxable event to the holders of the senior notes for
U.S. Federal income tax purposes.
The United States federal income tax
consequences of the purchase, ownership and disposition of the
PEPS Units are unclear.
No statutory, judicial or administrative
authority directly addresses the treatment of the PEPS Units or
instruments similar to the PEPS Units for United States federal
income tax purposes. As a result, the United States federal
income tax consequences of the purchase, ownership and
disposition of PEPS Units are not entirely clear. For example,
our senior notes may be treated as a "contingent payment
debt instrument" under Treasury regulations. In such case,
the timing, character and treatment for foreign tax credit
purposes of your gain, income or loss with respect to the PEPS
Units could be affected. You should consult your tax adviser
regarding the consequences of purchasing, owning and disposing
of PEPS Units in your particular situation. Please see
"Material Income Tax Consequences" for a more detailed
description of the United States federal income tax consequences
of purchasing, owning and disposing of the PEPS Units.
The purchase contract agreement will not be
qualified under the Trust Indenture Act and the obligations of
the purchase contract agent are limited.
The purchase contract agreement between us and
the purchase contract agent will not be qualified as an
indenture under the Trust Indenture Act of 1939, and the
purchase contract agent will not be required to qualify as a
trustee under the Trust Indenture Act. Thus, you will not have
the benefit of the protection of the Trust Indenture Act with
respect to the purchase contract agreement or the purchase
contract agent. The protections generally afforded the holder of
a security issued under an indenture that has been qualified
under the Trust Indenture Act include:
•
disqualification of the indenture trustee for
    "conflicting interests," as defined under the Trust
    Indenture Act;
•
provisions preventing a trustee that is also a
    creditor of the issuer from improving its own credit position at
    the expense of the security holders immediately prior to or
    after a default under such indenture; and
•
the requirement that the indenture trustee
    deliver reports at least annually with respect to certain
    matters concerning the indenture trustee and the securities.
The trading price of the senior notes may
not fully reflect the value of their accrued and unpaid
interest.
The senior notes may trade at a price that does
not fully reflect the value of their accrued but unpaid
interest. If you dispose of your senior notes between record
dates for interest payments, you will be required to include in
gross income the daily portions of original issue discount
through the date of disposition in income as ordinary income,
and to add this amount to your adjusted tax basis in the senior
notes disposed of. To the extent the selling price is less than
your adjusted tax basis, you will recognize a loss.
Monday SCA and Monday Finance SA have no
independent operations and their ability to meet their
respective obligations is dependent on the performance of the
subsidiaries of Monday SCA and their ability to transfer
funds to Monday SCA and Monday
Finance SA.
Monday Finance SA is a finance subsidiary with no
independent operations and no purpose other than to issue the
senior notes. Monday Finance SA intends to lend the proceeds it
receives from this offering to Monday SCA or other entities
controlled by Monday SCA. The ability of Monday Finance SA to
meet its obligations under the senior notes will be dependent on
the receipt of interest and principal payments from these
inter-company loans.
Monday SCA is a holding company that will derive
substantially all of its income from its subsidiaries. The
ability of Monday SCA to meet its obligations under the
guarantee of the senior notes will be dependent
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on the performance of its subsidiaries and on the
receipt of dividends, distributions or other transfers of funds
from its direct and indirect subsidiaries. As a result, the
guarantee of the senior notes will be effectively subordinated
to liabilities of, including any debt and preferred stock which
may be incurred or issued by, those subsidiaries, as well as to
liabilities of Monday SCA secured by assets of
Monday SCA, to the extent of the value of those assets. The
senior note indenture will not limit the ability of Monday SCA
or its subsidiaries to incur or issue debt or issue preferred
stock or prohibit the creation of liens on their respective
assets.
Monday SCA's subsidiaries are separate and
distinct legal entities. Monday SCA's subsidiaries, other
than Monday Finance SA, have no obligation to pay any amounts
due on the senior notes or to provide Monday SCA or Monday
Finance SA with funds to pay their respective obligations,
whether by dividends, distributions, loans or other payments,
except to the extent Monday SCA or Monday Finance SA makes loans
to them. In addition, any payment of dividends, distributions,
loans or advances by Monday SCA's subsidiaries to Monday
SCA or Monday Finance SA, could be subject to statutory or
contractual restrictions. Payments to Monday SCA by its
subsidiaries will also be contingent upon such
subsidiaries' earnings and business considerations.
Holders of PEPS Units or senior notes will have
no direct claim against any subsidiary of Monday Ltd other than
Monday SCA and Monday Finance SA. Except to the extent it is a
recognized creditor with claims against one of its subsidiaries,
the right of Monday SCA to receive any assets of any of its
subsidiaries upon their liquidation or reorganization, and
therefore the right of the holders of PEPS Units or senior notes
to participate in those assets, will be effectively subordinated
to the claims of creditors, trade creditors and preferred
stockholders of that subsidiary and any other subsidiary that is
a direct or indirect parent of that subsidiary. In addition,
even if Monday SCA or Monday Finance SA were a creditor of any
of Monday SCA's subsidiaries, the rights of Monday SCA or
Monday Finance SA, as the case may be, as a creditor would be
subordinate to any liabilities secured by a security interest in
the assets of that subsidiary, to the extent of the value of
these assets, and any indebtedness of that subsidiary senior to
that held by Monday SCA or Monday Finance SA, as the case may be.
Luxembourg insolvency laws to which Monday
Finance SA and Monday SCA may be subject may not be as favorable
to you as U.S. insolvency laws.
Due to the nature of Luxembourg's insolvency
laws, the ability of the holders of the senior notes to protect
their interests may be more limited than would be the case under
U.S. bankruptcy laws. This is because liabilities in respect of
the senior notes or the guarantees by Monday SCA of the senior
notes in the event of a winding up will be paid after payment of
all secured debts, the cost of liquidation and certain debts of
Monday SCA or Monday Finance SA which are entitled to priority
under Luxembourg law. Such preferential debts include the
following, among others:
•
money owed to Luxembourg tax authorities, for
    example, in respect of income tax deducted at source,
•
value added tax and certain other taxes and
    duties owed to Luxembourg Customs and Excise,
•
social security contributions and
•
renumeration owed to employees.
If the bankruptcy administrator can show that
"preference" has been given to any person by
defrauding rights of creditors generally regardless of when the
transaction giving fraudulent preference to a party occurred or
if certain "abnormal" transactions have been effected
during a relevant suspect period of six months prior to the date
of bankruptcy, a court has the power, among other things, to
void the preferential or abnormal transaction. This provision of
Luxembourg insolvency law may affect transactions entered into
or payments made by Monday SCA or Monday Finance SA during the
period before liquidation or administration.
Under Luxembourg law, there is no consolidation
of the assets and liabilities of a group of companies in the
event of bankruptcy. Each individual company thus will be
treated separately by a bankruptcy administrator appointed by
the relevant court. The assets of Monday SCA's subsidiaries
would be first used to satisfy the debts of each respective
subsidiary and only the remaining surplus, if any, of a
subsidiary would benefit its parent company or the creditors of
its parent company. As a result, your ability to protect your
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interests as a creditor of Monday Finance SA or
Monday SCA may not be as strong under Luxembourg law as it might
be under U.S. law or the laws of other countries.
Monday Ltd is registered in Bermuda and
each of Monday SCA and Monday Finance SA is registered in
Luxembourg, and a large part of their respective assets will be
located outside the United States. As a result, their
securityholders may not be able to enforce civil liability
provisions of the federal or state securities laws of the United
States.
Monday Ltd is organized under the laws of
Bermuda, and each of Monday SCA and Monday Finance SA is
organized in Luxembourg, and a large part of their respective
assets will be located outside the United States. As a result,
it may not be possible to enforce court judgments obtained in
the United States against Monday Ltd, Monday SCA or Monday
Finance SA based on the civil liability provisions of the
federal or state securities laws of the United States in
Bermuda, Luxembourg or in countries other than the United States
where they will have assets. In addition, there is some doubt as
to whether the courts of Bermuda, Luxembourg and other countries
would recognize or enforce judgments of United States courts
obtained against Monday Ltd, Monday SCA or Monday Finance SA or
their respective directors or officers based on the civil
liabilities provisions of the federal or state securities laws
of the United States or would hear actions against us or those
persons based on those laws. We have been advised by our legal
advisors in Bermuda and Luxembourg that the United States does
not currently have a treaty with Bermuda or Luxembourg,
providing for the reciprocal recognition and enforcement of
judgments in civil and commercial matters. Therefore, a final
judgment for the payment of money rendered by any federal or
state court in the United States based on civil liability,
whether or not based solely on United States federal or state
securities laws, would not automatically be enforceable in
Bermuda or Luxembourg. Similarly, those judgments may not be
enforceable in countries other than the United States.
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DISCLOSURE REGARDING FORWARD-LOOKING
STATEMENTS
This prospectus contains forward-looking
statements that are based on current expectations, estimates,
forecasts and projections about our business and the industry in
which we operate, management's beliefs and assumptions made
by management. Such statements include, in particular,
statements about our plans, strategies and prospects and
statements about the industry groups and industry sectors we
serve and the solution areas we offer, in each case under the
headings "Summary," "Risk Factors,"
"Dividend Policy," "Our Organizational
Structure," "Auditor Independence Rules, the Enron
Situation and the Proposed SEC No-Action Letter,"
"Unaudited Pro Forma Combined Financial Statements,"
"Management's Discussion and Analysis of Financial
Condition and Results of Operations," "Business,"
"Management," "Arrangements with the
PricewaterhouseCoopers Network of Firms," "Description
of the PEPS Units," "Description of the Purchase
Contracts," "Certain Provisions of the Purchase
Contracts, the Purchase Contract Agreement and the Pledge
Agreement," "Description of the Senior Notes,"
"Description of Share Capital," "Shares Eligible
for Future Sale," "Material Income Tax
Consequences" and "ERISA Considerations." Words
such as "may," "will," "should,"
"could," "expects," "anticipates,"
"intends," "plans," "believes,"
"seeks," "estimates," variations of such
words and similar expressions are intended to identify such
forward looking statements. These statements are not guarantees
of future performance or development and involve risks,
uncertainties and assumptions that are difficult to predict.
Therefore, actual outcomes and results may differ materially
from what is expressed or forecasted in such forward-looking
statements. Except as required under the federal securities laws
and the rules and regulations of the Securities and Exchange
Commission, we do not have any intention or obligation to update
publicly any forward-looking statements after we distribute this
prospectus, whether as a result of new information, future
events or otherwise.
This prospectus also contains information
concerning the management consulting and information technology
services industry that is forward-looking in nature and is based
on a variety of assumptions regarding the ways in which this
industry will develop. This information includes estimated
growth statistics based on the third-party sources cited in this
prospectus. The assumptions underlying the information on our
industry have been derived from information currently available
to us and from third-party sources. If any one or more of these
assumptions are incorrect, the development of our industry,
including estimated growth, may differ from those described in
this prospectus. While we do not know what impact any such
differences may have on our business, our future results of
operations and financial condition and the market price of the
PEPS Units, Treasury PEPS Units, senior notes and our
Class A common shares, may be materially adversely
affected. In addition, we generally cannot assure you that the
forward-looking information regarding our industry, including
estimated growth, will be achieved, whether or not these
assumptions are correct.
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USE OF PROCEEDS
We estimate that Monday Finance SA will receive
net proceeds from this offering of approximately
$        million, or
approximately
$        million if the
underwriters for this offering exercise their option to purchase
additional PEPS Units in full. We will not receive any proceeds
from the sale of our Class A common shares in the
concurrent Class A common shares offering, except to the
extent the underwriters exercise their over-allotment option. In
the event the underwriters exercise their over-allotment option
in full, we estimate that we would receive approximately
$        million in net
proceeds from the concurrent Class A common shares
offering, which reflects an assumed initial public offering
price of
$            per
share and also reflects the deduction of the estimated
underwriting discounts and commissions and estimated offering
expenses payable by us and our subsidiaries. We intend to use
any net proceeds we may receive as a result of the concurrent
Class A common shares offering to acquire additional
Class I common shares in Monday SCA.
Monday SCA and Monday Ltd's other
subsidiaries will use any net proceeds to us of the concurrent
offerings to do the following:
•
pay approximately
    $    million of separation and transaction
    expenses, such as transfer taxes,
•
pay approximately
    $      million to acquire the
    PricewaterhouseCoopers management consulting and technology
    services business in India and to purchase Monday SCA
    Class I common shares owned by the PricewaterhouseCoopers
    firm is Spain pursuant to the terms of the applicable rollup
    agreements,
•
pay approximately $  million to
    PricewaterhouseCoopers firms that are not contributing
    management consulting and technology services businesses to us
    in connection with noncompetition agreements we are entering
    into with them and
•
use the remainder for general corporate purposes,
    including to fund working capital.
We have granted an over-allotment option to the
underwriters at their request. We also have granted an
over-allotment option to the underwriters for the concurrent
Class A common shares offering. Under our current business
plan, we do not require the proceeds from the sale of the PEPS
Units or our Class A common shares that would result from
the exercise of these options. Accordingly, if either option is
exercised by the applicable underwriters, we currently intend to
use the net proceeds generated as a result to repurchase, or
have one of our subsidiaries repurchase, our Class A common
shares from time to time in open market transactions pursuant to
a repurchase plan to be adopted by our board of directors in
accordance with applicable securities laws. Because we will have
significant flexibility in applying the net proceeds of the
over-allotment options, if exercised, you may not agree with the
choices we make in using these proceeds.
Pending specific application of the net proceeds,
we intend to invest them in short-term marketable securities.
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DIVIDEND POLICY
We do not anticipate paying any dividends on our
Class A common shares in the foreseeable future. We also do
not anticipate that our principal subsidiary, Monday SCA, will
make any distributions on its Class I common shares or
Class II common shares. We currently intend to retain our
future earnings for use in the operation and expansion of our
business. In addition, we may from time to time enter into
financing agreements that contain financial covenants and
restrictions, some of which may limit our ability or the ability
of Monday SCA to pay dividends or make distributions.
Accordingly, you may need to sell your Class A common
shares received upon settlement of the purchase contracts to
realize a return on your investment. You may not be able to sell
your shares at or above the price you paid or were deemed to pay
for them upon settlement of the purchase contracts.
Any future determination to pay dividends will be
at the discretion of our board of directors and will depend upon
our results of operations, financial condition and ability to
receive distributions from Monday SCA. Any such determination
also will depend upon our cash requirements, prospects and other
factors our board of directors deems relevant. If we pay any
dividends to our shareholders, we will pay them pro rata based
on economic interest. Accordingly, holders of our Class X
common shares, which have a voting interest but no economic
interest, will not share in any dividend. Holders of PEPS Units
or Treasury PEPS Units will not be entitled to receive any
dividend with a record date prior to the date the Class A
common shares are issued upon settlement of the purchase
contracts.
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CAPITALIZATION
The following tables set forth cash and cash
equivalents and combined capitalization for Monday Ltd and
Monday SCA as of March 31, 2002, on a Historical and
Pro Forma as adjusted basis.
•
The "Historical" column reflects our
    cash and cash equivalents and our capitalization as of
    March 31, 2002, on a historical basis.
•
The "Pro Forma as adjusted" column
    reflects cash and cash equivalents and capitalization as of
    March 31, 2002, and gives effect to the pro forma
    adjustments to our combined financial statements for our
    separation and related transactions, including the concurrent
    offerings. The tables below reflect the receipt from the sale of
    the PEPS Units of estimated net proceeds of
    $        million. We
    will not receive any of the net proceeds from the concurrent
    Class A common shares offering unless the underwriters
    exercise their over-allotment option.
The tables below should be read in conjunction
with "Management's Discussion and Analysis of
Financial Condition and Results of Operations," the
unaudited pro forma combined financial statements of Monday Ltd
and Monday SCA and notes to these statements and our
combined financial statements and notes to these statements.
Monday Ltd
As of
March 31, 2002
Pro Forma
Historical
as adjusted
(in thousands,
except share data)
(unaudited)
Cash and cash equivalents
$
115,193
$
Short-term bank borrowings and current portion of
    long-term debt
$
75,714
$
Long-term debt and other long-term liabilities
132,405
Monday Finance SA Senior Notes due 2008
—
Minority interests
—
Invested equity/ shareholders' equity
Class A common shares, par value $0.0001 per
    share, 2 billion shares
    authorized,       million shares
    issued and outstanding pro forma as adjusted
—
Class X common shares, par value $0.0001 per
    share, 2 billion shares
    authorized,      million shares issued
    and outstanding pro forma as adjusted
—
Restricted share units (relating to Class A
    common shares),     million units issued and
    outstanding pro forma as adjusted
—
Restricted Class A common shares
—
Deferred compensation
—
Additional paid-in capital
—
Retained earnings
—
PwC Network investment
429,255
Accumulated other comprehensive income (loss)
—
Total PwC Network investment/ shareholders'
    equity
429,255
Total capitalization
$
637,374
$
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On a historical basis, the amount of net
investment in our combined business by firms in the
PricewaterhouseCoopers network was recorded as PwC Network
investment in our combined financial statements.
Monday SCA
As of
March 31, 2002
Pro Forma
Historical
as adjusted
(in thousands,
except share data)
(unaudited)
Cash and cash equivalents
$
115,193
$
Short-term bank borrowings and current portion of
    long-term debt
$
75,714
$
Long-term debt and other long-term liabilities
132,405
Monday Finance SA Senior Notes due 2008
—
Invested equity/ shareholders' equity
Class I common shares, par value $0.0001 per
    share,            shares
    authorized,       million shares
    issued and outstanding pro forma as adjusted
—
Class II common shares, par value
    $      per
    share,            shares
    authorized,    shares issued and outstanding pro
    forma as adjusted
—
Restricted share units (relating to Class A
    common shares),     million units issued and
    outstanding pro forma as adjusted
—
Restricted Class A common shares
—
Deferred compensation
—
Additional paid-in capital
—
Retained earnings
—
PwC Network investment
429,255
Accumulated other comprehensive income (loss)
—
Total PwC Network investment/ shareholders'
    equity
429,255
Total capitalization
$
637,374
$
On a historical basis, the amount of net
investment in our combined business by firms in the
PricewaterhouseCoopers network was recorded as PwC Network
investment in our combined financial statements.
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ACCOUNTING TREATMENT
The net proceeds from the sale of the PEPS Units
will be allocated between the purchase contracts and the senior
notes on our financial statements based on their relative fair
value. Any resultant discount on the senior notes will be
amortized as an adjustment of interest expense over the life of
the senior notes. The relative fair value of the purchase
contracts will be recorded as a credit to additional paid-in
capital.
The purchase contracts are forward transactions
in our Class A common shares. Upon settlement of the
purchase contract, we will receive $25 on that purchase contract
and will issue the requisite number of our Class A common
shares. The $25 that we receive will be credited to Class A
common shareholders' equity.
Before the issuance of our Class A common
shares upon settlement of the purchase contracts, the purchase
contracts will be reflected in our diluted earnings per share
calculations using the treasury stock method. Under this method,
the number of our Class A common shares used in calculating
diluted earnings per share (based on the settlement rate applied
at the end of the reporting period) is deemed to be increased by
the excess, if any, of the number of shares that would be issued
upon settlement of the purchase contracts over the number of
shares that could be purchased by us in the market (at the
average market price during the period) using the proceeds
receivable upon settlement. Consequently, we anticipate that
there will be no dilutive effect on our earnings per share
except during periods when the average market price of our
Class A common shares is above
$          ,
the threshold appreciation price.
The Emerging Issues Task Force of the Financial
Accounting Standards Board is expected to consider a proposal
related to accounting for certain securities and financial
instruments, including securities such as the PEPS Units. The
current proposals being considered include rulemaking that, if
adopted, could result in periodic "marking to market"
of the purchase contracts, causing periodic charges or credits
to income. The outcome and timing of the EITF rulemaking is
uncertain.
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DILUTION
At March 31, 2002, Monday Ltd's pro
forma, as adjusted, net tangible book value was approximately
$    million, or approximately
$    per Class A common share. Net
tangible book value per Class A common share represents
total combined tangible assets less total combined liabilities,
divided by the aggregate number of Class A common shares
outstanding, assuming all Monday SCA Class I common shares
and all exchangeable shares issued by one of Monday SCA's
subsidiaries have been redeemed or exchanged on a one-for-one
basis for our Class A common shares. Class A common
shares outstanding include
approximately     million Class A
common shares underlying grants of restricted share units but do
not include approximately      million
Class A common shares issuable pursuant to options,
approximately     million unvested
restricted Class A common shares and up
to      million Class A common
shares, or       million
Class A common shares if the underwriters for this offering
exercise their over-allotment option in full that are issuable
pursuant to purchase contracts in connection with the this
offering. Assuming an estimated initial public offering price of
$     per share, new investors in our
Class A common shares in the concurrent Class A common
shares offering will experience an immediate dilution of
approximately $      per share. We
are unable to predict the dilution an investor in our PEPS Units
may experience when a purchase contract is settled.
As of March 31, 2002, there were no options
or restricted share units outstanding with respect to our
Class A common shares. We expect to issue restricted share
units and options to purchase our Class A common shares in
connection with the concurrent Class A common shares
offering. Pursuant to this offering, we also will enter into
purchase contracts that will require us to sell, and holders of
these units to purchase, additional Class A common shares
no later
than                               ,
2006. To the extent that any Class A common shares
represented by restricted share units are distributed, any
options are granted and exercised or the purchase contracts are
exercised, there will be dilution to new investors.
If the underwriters' over-allotment options
to purchase our Class A common shares and the PEPS Units
are exercised in full, the pro forma, as adjusted, net tangible
book value per share after giving effect to the concurrent
offerings would be approximately $    per
share and, assuming an estimated initial public offering price
of $     per share, new investors in
our Class A common shares would experience an immediate
dilution of approximately $     per
share.
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OUR ORGANIZATIONAL STRUCTURE
General
Monday Ltd is a Bermuda holding company that
currently has no material activities, assets or liabilities.
Monday SCA is a Luxembourg partnership limited by shares that is
owned by us, which also currently has no material activities,
assets or liabilities. Monday Ltd is the sole general partner,
or manager, of Monday SCA and therefore controls it and
includes, or consolidates, its operations into our financial
statements. As manager of Monday SCA, Monday Ltd has broad
powers to direct and manage the activities and affairs of Monday
SCA. These powers include:
•
the sole authority to institute and direct court
    proceedings and to negotiate, settle and compromise disputes on
    behalf of Monday SCA,
•
the power to perform all acts and enter into and
    perform all contracts on behalf of Monday SCA that we deem
    necessary, advisable or useful in connection with Monday
    SCA's business and
•
the power to make any tax elections with respect
    to Monday SCA.
Monday SCA will reimburse Monday Ltd for all of
its expenses relating to its management of Monday SCA. In
addition, Monday Ltd may receive a remuneration from Monday SCA
for performing its management duties. Monday Ltd have not
entered into any fee arrangements for performing those duties at
this time. Monday Ltd anticipates that remuneration in the
future, if any, would not be material. Following our separation,
we will operate our business principally through subsidiaries of
Monday SCA, the equity of which initially will be our only
material asset.
Monday Finance SA is a Luxembourg corporation
that is indirectly wholly-owned by Monday SCA, which also has no
material activities, assets, other than any potential loans it
may make to Monday SCA and its subsidiaries, or liabilities,
other than liabilities in respect of the senior notes issued as
part of the PEPS Units.
Our Separation
Pursuant to the terms of the rollup agreements,
firms in the PricewaterhouseCoopers network that are
transferring management consulting and technology services
businesses to us, or in some cases partners or shareholders of
those firms, will receive Class A common shares or Monday
SCA Class I common shares in connection with our separation
and will sell Class A common shares in the concurrent
Class A common shares offering. The nature of the
consideration to be received by each firm reflects the manner in
which it will contribute its business to us, which was
determined primarily based on tax considerations. In a number of
countries, we have entered into rollup agreements directly with
the partners or shareholders of some of the
PricewaterhouseCoopers firms because these partners or
shareholders directly own either the assets of, or equity in, a
management consulting and technology services business that is
being transferred to us. The countries are Australia, Belgium,
France, Iceland, Italy, Pakistan, Portugal, Sweden and
Switzerland. The allocation of shares among partners or
shareholders in those countries where PricewaterhouseCoopers
partners or shareholders are participating directly in this
offering has been based on the respective ownership interests of
those partners or shareholders in the business being sold as
their PricewaterhouseCoopers firm, as applicable.
The firms expected to receive Class A common
shares are those with operations principally in Canada, Central
Africa, China, Denmark, East Asia, Germany, Korea, Iceland, the
Middle East, New Zealand, Pakistan, Portugal, South Africa,
South America, Switzerland, the United Kingdom, the United
States and Venezuela. The United States firm also will receive
Monday SCA Class I common shares. Our partners in Canada
also will be receiving exchangeable shares of one of Monday
SCA's subsidiaries in connection with our separation, which
shares will be exchangeable into our Class A common shares
on a one-for-one basis. These businesses will be transferred,
directly or indirectly, by us to Monday SCA in exchange for a
number of its Class I common shares equal to the number of
Class A common shares that we issued to the firms in the
PricewaterhouseCoopers network or their partners or
shareholders. We will have the right, but not the
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obligation, to contribute proceeds from future
issuances of our Class A common shares to Monday SCA in
exchange for additional Monday SCA Class I common shares.
The firms expected to receive Monday SCA
Class I common shares are those with operations principally
in Australia, Belgium, Central and Eastern Europe, Denmark,
Finland, France, Ireland, Italy, Japan, Mexico, the Netherlands,
Norway, Spain, Sweden and the United States. Holders of Monday
SCA Class I common shares or exchangeable shares of one of
Monday SCA's subsidiaries will have the right to purchase
for nominal consideration a number of our Class X common
shares, which have the same voting rights as our Class A
common shares but no economic rights, equal to the number of
Monday SCA Class I common shares or exchangeable shares
that they receive. PricewaterhouseCoopers firms, to the extent
these firms continue to own equity in our subsidiaries following
the closing of the concurrent Class A common shares
offering, will not be able to exercise this right under the
restrictions that are likely to be imposed as a condition to the
proposed SEC no-action letter, which is described in this
prospectus. The exchangeable shares of one of Monday SCA's
subsidiaries are exchangeable into Class A common shares on
a one-for-one basis. Subject to some exceptions, Monday SCA
Class I common shares are redeemable, upon request of a
holder, at any time for cash, although Monday SCA has the right
to deliver our Class A common shares on a one-for-one
basis, subject to adjustment for certain dilutive actions, in
lieu of cash. In addition, we may intercede and directly
exchange our Class A common shares for Monday SCA
Class I common shares that a shareholder has elected to
have redeemed.
PricewaterhouseCoopers firms, or in some cases
partners or shareholders of these firms, that receive
Class A common shares or Monday SCA Class I common
shares in connection with our separation will be selling
Class A common shares in the concurrent Class A common
shares offering. In order to participate in the concurrent
Class A common shares offering, immediately prior to the
closing of the concurrent Class A common shares offering,
selling PricewaterhouseCoopers firms, or their partners or
shareholders, to the extent they hold equity in Monday SCA, will
have a portion of their Monday SCA Class I common shares
exchanged on a one-for-one basis for our Class A common
shares. In consideration of their withdrawal from the various
PricewaterhouseCoopers firms, our partners also will receive
some of the Class A common shares or Monday SCA
Class I common shares from these firms or, for our Canadian
partners, exchangeable shares of one of Monday SCA's
subsidiaries directly from the subsidiary being transferred to
us. The allocation of these shares among our partners will be
made on a firm-by-firm basis and will be based on a variety of
factors, including ownership and seniority. Our partners
generally will not be participating in the concurrent
Class A common shares offering. Through a combination of
distribution to our partners and sales as a result of this
offering, the PricewaterhouseCoopers firms intend to fully
dispose of their holdings in us. Assuming the
PricewaterhouseCoopers firms, or their partners or shareholders,
fully liquidate their holdings in us and our subsidiaries as a
result of this offering, only our partners and we will hold
Monday SCA common shares or exchangeable shares in our other
subsidiaries following the closing of the concurrent
Class A common shares offering.
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Organizational Structure
Our organizational structure following our
separation is expected to be as shown in the diagram below. This
diagram does not display any of our subsidiaries, other than
Monday SCA, or any of Monday SCA's subsidiaries, other than
Monday Finance SA.
Described below is our expected equity ownership
following our separation, in each case calculated assuming all
Monday SCA Class I common shares and all exchangeable
shares issued by one of Monday SCA's subsidiaries that are
not owned by us or our subsidiaries have been redeemed or
exchanged on a one-for-one basis into our Class A common
shares. These percentages reflect both economic interests and
voting interests.
•
Our partners will own
    approximately      % of our
    Class A common shares, not including Class A common
    shares to be issued in respect of restricted share units, or
    approximately      % if the
    underwriters exercise their over-allotment option in full.
•
Our public shareholders will own
    approximately      % of our
    Class A common shares, or
    approximately      % if the
    underwriters exercise their over-allotment option in full.
In the event the PricewaterhouseCoopers firms and
their partners and shareholders do not dispose of all of their
Class A common shares in the concurrent Class A common
shares offering, including Class A common shares that would
be received upon a redemption or exchange of Monday SCA
Class I common shares, the PricewaterhouseCoopers firms and
some of their partners and shareholders will continue to hold
some of our Class A common shares or Monday SCA
Class I common shares. In the event these firms continue to
hold any of these shares, they will be subject to voting and
other restrictions as described under "Arrangements with
the PricewaterhouseCoopers Network of Firms—Shareholders
Agreement." The percentage of our Class A common
shares that these firms and their partners and shareholders will
be permitted to hold immediately following the closing of the
concurrent Class A common shares offering will be equal to
or less than the percentage set forth in a no-action letter that
we expect the SEC to issue in connection with our separation.
The no-action letter, if granted as currently proposed by us,
would provide that the SEC would take no action to attribute our
business activities following the closing of the concurrent
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Class A common shares offering to the
PricewaterhouseCoopers firms so long as these firms hold less
than a specified percentage of our equity and other specified
conditions are met. We have proposed that this percentage be
less than 20% of our Class A common shares outstanding
immediately following the closing of the concurrent Class A
common shares offering, calculated as if all Monday SCA
Class I common shares and all exchangeable shares issued by
one of Monday SCA's other subsidiaries had been redeemed or
exchanged on a one-for-one basis for our Class A common
shares.
Monday SCA Share Capital
The following is a brief description of the share
capital of Monday SCA, including the principal economic and
legal differences among the shares.
•
The Monday SCA Class I common shares
    represent limited partnership interests in Monday SCA.
•
Monday SCA Class II Series I common
    shares represent general partnership interests, and holders of
    Class II Series I common shares are jointly and
    severally liable with Monday SCA for all of Monday SCA's
    liabilities that cannot be met out of its assets.
•
Monday SCA Class II Series II through
    Series XX common shares represent limited partnership
    interests in Monday SCA.
•
Holders of Monday SCA Class I common
    shares, in the aggregate, are entitled to 95% of any dividend
    paid by Monday SCA. Holders of Monday SCA Class II
    common shares, regardless of series, in the aggregate, are
    entitled to 5% of any dividend paid by Monday SCA.
Following the closing of the concurrent
offerings, we will hold all of the Class II common shares
of Monday SCA. For all purposes under Luxembourg law and the
Monday SCA articles of incorporation, any Monday SCA
Class I common shares owned by us will be treated as Monday
SCA Class II Series I common shares, except for
purposes of share transfers and redemptions. As a result, we
will receive a smaller percentage of dividends than the
percentage to which we would otherwise be entitled. In order to
compensate us for this reduced percentage, Monday SCA
Class II Series II through Series XX common
shares are redeemable for cash for an amount that depends upon
the aggregate dividend amount paid on Monday SCA common shares.
Please see "Description of Share Capital— Description
of Monday SCA Common Shares" for a more detailed
description.
Other Structural Considerations
Although we currently do not anticipate that we
will declare any dividends in the foreseeable future, we expect
that any dividends we may declare will be paid based on economic
ownership in us and our subsidiaries. After our separation, we
will have no material activities, assets or liabilities other
than our holdings in Monday SCA and our obligations under the
purchase contracts underlying the PEPS Units. Because we will be
permitted to acquire and hold assets and incur liabilities at
various levels of our organizational structure, however, there
may be differences between dividends paid on our Class A
common shares and distributions made with respect to Monday SCA
Class I common shares. For example, we may acquire a
business at the Monday Ltd level and decide not to transfer the
business to Monday SCA, which may result in additional cash flow
at the Monday Ltd level. Conversely, we may incur indebtedness
only at the Monday Ltd level, which could cause expenses to be
incurred at the Monday Ltd level that may not be reimbursed by
Monday SCA. In addition, distributions paid by Monday SCA will
be subject to Luxembourg withholding taxes, which vary based
upon the residence of a shareholder. Therefore, we may not
receive the same distribution from Monday SCA on account of our
Monday SCA Class I common shares or Class II common
shares, on a net after-tax basis, as another holder of Monday
SCA Class I common shares, such as one of our partners. We
expect to minimize withholding taxes by receiving payments for
redemption of our Monday SCA Class II common shares in lieu
of most ordinary distributions, as described in the prior
paragraph.
As described in "Risk Factors—
Potential changes to United States federal tax and other laws
could increase our effective tax rate or could have other
adverse effects on our business," there is some possibility
that legislation may be enacted in the United States that could
have adverse effects on our company. If such
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legislation is enacted, or appears likely to be
enacted, and would apply to our company, we may decide to
convert to a United States corporation, either by electing under
Delaware law to be a Delaware corporation or merging into a
Delaware corporation. Under our bye-laws, the conversion into a
Delaware corporation by election under Delaware law could be
effected by our board of directors without shareholder approval.
Any decision to merge into a Delaware corporation, however,
would be subject to shareholder approval.
Please see "Arrangements with the
PricewaterhouseCoopers Network of Firms,"
"Arrangements With Our Partners," "Description of
Share Capital" and "Description of PEPS Units"
for additional information about our corporate structure.
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AUDITOR INDEPENDENCE RULES, THE ENRON
SITUATION
AND THE PROPOSED SEC NO-ACTION
LETTER
Auditor Independence Rules and the Enron
Situation
The United States federal securities laws,
including the rules and regulations promulgated by the
Securities and Exchange Commission under these laws, require
that an independent accountant certify the financial statements
that a public reporting company submits to the SEC. Other
jurisdictions also have laws, rules and regulations regarding
the independence of accountants from audit clients. Until our
separation from the PricewaterhouseCoopers network of firms, our
business will continue to be subject to and constrained by these
laws, rules and regulations because of the accounting and
auditing businesses that are conducted by the firms in the
PricewaterhouseCoopers network.
Rule 2-01 of Regulation S-X under the
Securities Act, which was amended effective February 2001,
provides that the SEC will not recognize an accountant as
independent from an audit client unless the accountant is, and
appears to a reasonable investor to be, capable of exercising
objective and impartial judgment on all issues encompassed
within the accountant's engagement. In addition to this
general standard, Rule 2-01 also sets forth a number of
non-exclusive circumstances, including various relationships
between an accountant and an audit client and services performed
by an accountant for an audit client, which the SEC views as
inconsistent with the general standard for independence. At the
time Rule 2-01 was amended in February 2001, the SEC
also amended the proxy disclosure rules to require disclosure of
the fees paid by a public reporting company to its principal
accountants for audit and non-audit services. The following
summary sets forth some of these circumstances which have
limited our business and describes the new proxy disclosure
rules. This summary, however, is not intended to be a full
description of Rule 2-01, as amended, the proxy disclosure
rules or any other SEC rules and regulations regarding the
independence of accountants.
•
Relationships.
Rule 2-01 provides that an
    accountant will not be independent from an audit client if the
    accountant enters into financial, employment or business
    relationships with the audit client. For example, subject to
    some exceptions, an accountant may not lend money to or
    otherwise have a financial interest in an audit client. An
    accountant also may not enter into business relationships, such
    as joint ventures or strategic alliances, with an audit client.
    Accordingly, because of these restrictions, we have been limited
    in our ability to form alliances, enter into resale
    arrangements, form joint ventures or enter into contingent fee
    or risk-sharing arrangements with audit clients of firms in the
    PricewaterhouseCoopers network and affiliates of these clients.
•
Non-audit Services.
Rule 2-01 provides that the
    performance by an accountant of some non-audit services for an
    audit client is incompatible with independent status. For
    example, an accountant will not be independent from an audit
    client if, at any point during an audit period, the accountant
    directly or indirectly operates or supervises the operation of
    the client's information systems or manages the
    client's local area computer network. In addition, unless
    conditions designed to ensure independence are satisfied, the
    SEC will not recognize an accountant as independent if the
    accountant designs or implements a hardware or software system,
    such as an enterprise resource planning system, that aggregates
    financial data or generates information that is significant to
    the client's financial statements taken as a whole. As a
    general matter, most of the management consulting and technology
    services we currently provide are not restricted. We have been
    limited, however, in providing some services, such as
    outsourcing, because of these restrictions.
•
Public Disclosure Requirements.
The proxy disclosure rules require
    that a public reporting company's annual proxy statement
    include disclosure setting forth the fees billed by the
    company's principal accountants for audit and non-audit
    services. Fees for non-audit services must be disclosed
    separately from fees for audit services, and fees relating to
    the design or implementation of hardware or software financial
    reporting systems, as described above, also must be separately
    disclosed. In addition, a company must disclose whether its
    audit committee has considered whether the provision of
    non-audit services by its accountants is compatible with
    maintaining the independence of its accountants. Because of
    these disclosure requirements, boards of directors are becoming
    increasingly hesitant to allow their accountants to perform
    significant non-audit services.
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In addition to the SEC rules and regulations,
state accounting licensing boards in the United States and
regulatory organizations outside the United States as well as
the professional ethics rules of the accounting profession in
many places around the world impose similar restrictions on the
ability of accounting firms to enter into relationships or
perform some non-audit services for audit clients.
Although we believe independence-related concerns
are most prominent for companies with securities listed or
traded on United States securities markets, many other countries
in which we operate also have laws, rules and regulations
regarding the independence of accountants from audit clients.
The United Kingdom, for example, has required disclosure of fees
for audit and non-audit services since 1989. The European
Commission, in preparation for the issuance of a formal
recommendation to European Union member states regarding
statutory auditor independence, published a paper in
December 2000 which proposed a set of fundamental
independence principles and specific independence requirements.
These formal recommendations and specific requirements are
similar to, and in some cases stricter than, the SEC auditor
independence and disclosure rules. In response to the Enron
situation described below, many jurisdictions outside of the
United States also are considering new laws, rules and
regulations that would restrict further the ability of
accounting firms to provide non-audit services to their audit
clients or require disclosure of audit and non-audit fees.
In response to the recent high profile bankruptcy
filing by the Enron Corporation in December 2001,
government authorities, the media, boards of directors and
shareholders also are paying considerable attention to the
relationships between public reporting companies and their
auditors. In the case of Enron, governmental authorities and the
media are investigating whether the management consulting fees
paid to Arthur Andersen compromised its role as Enron's
independent accountants. There also are a number of bills
pending in the United States House of Representatives and the
United States Senate which, if enacted, would prohibit or
further restrict the provision of non-audit services to a public
reporting company by its accountants. In addition, shareholders,
particularly pension funds affiliated with labor unions, have
begun proposing shareholder resolutions that, if adopted, would
prevent a company's accountants from performing non-audit
services. In February 2002, for example, approximately 40%
of the votes cast at The Walt Disney Company's annual
shareholders meeting supported a proposal that would have
prevented its accountants, PricewaterhouseCoopers LLP, from
providing Disney with non-audit services in the future. Although
Disney's board of directors originally opposed the
initiative, Disney indicated, prior to its annual meeting, that
it would adopt the measure regardless of the shareholder vote,
citing public sentiment and shareholder reaction. Similar
proposals are pending at other large, multinational public
reporting companies.
Please see "Management's Discussion and
Analysis of Financial Condition and Results of
Operations—Overview—Auditor Independence Rules, the
Enron Situation and the Impact on Our Business" for a
description of the impact that the auditor independence rules
and the Enron situation are having on our business.
The Proposed Securities and Exchange
Commission No-Action Letter
In connection with our separation,
PricewaterhouseCoopers LLP, the United States firm, has
submitted a request for an independence-related no-action letter
from the Securities and Exchange Commission. The no-action
letter, if issued as currently proposed by us, would provide
that the SEC would take no action to attribute our business
activities following the closing of the concurrent Class A
common shares offering to the firms in the
PricewaterhouseCoopers network. As a result, the restrictions on
our scope of services and business relationship described above
and in this prospectus would no longer apply to us after our
separation and the completion of the concurrent Class A
common shares offering.
As part of the separation transaction, we have
agreed to comply with the requirements of the proposed no-action
letter. We also will grant the firms in the
PricewaterhouseCoopers network contractual rights, such as
registration rights, that these firms will require in order to
comply with the terms of the proposed no-action letter, if these
firms continue to hold our equity following the closing of the
concurrent Class A common shares offering. A description of
the agreements that contain these provisions are described in
"Arrangements with the PricewaterhouseCoopers Network of
Firms."
62
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The following is a summary of some of the
conditions that the SEC likely would require in connection with
the issuance of the proposed no-action letter. The conditions
listed below are not the full set of conditions that would be
applicable if the SEC issues the proposed no-action letter and
focus only on the provisions which we believe could materially
affect us or our business.
•
The SEC will not take any action to attribute our
    business activities to the PricewaterhouseCoopers firms if,
    after giving effect to the closing of the concurrent
    Class A common shares offering, the firms in the
    PricewaterhouseCoopers network and their partners, shareholders
    and pension funds for partners own less than 20% of our
    outstanding Class A common shares, calculated assuming all
    Monday SCA Class I common shares have been redeemed by
    Monday SCA in exchange for our Class A common shares and
    any exchangeable shares issued by our subsidiaries have been
    exchanged for our Class A common shares, in each case on a
    one-for-one basis. Any remaining Class A common shares or
    Monday SCA Class I common shares held by these firms and
    their partners and shareholders following the closing of the
    concurrent Class A common shares offering would be required
    to be sold or otherwise disposed of prior to the fifth
    anniversary of the closing of the concurrent Class A common
    shares offering. Any shares owned, however, by partners and
    shareholders of a PricewaterhouseCoopers firm that are freely
    transferable under the Securities Act of 1933 and are not
    subject to a lock-up or other transfer restrictions would not be
    attributed to the PricewaterhouseCoopers firms.
•
We would be entitled to use the name "PwC
    Consulting" only for a period of four years commencing with
    the closing of the concurrent Class A common shares
    offering. The right to use the name "PwC Consulting"
    during this period would be subject to a number of important
    conditions, including our obligation to clearly designate our
    business as not being owned by or affiliated with the firms in
    the PricewaterhouseCoopers network. Although we will have the
    right to use the name "PwC Consulting" for this period
    of time, we changed our name in June 2002 and will begin
    operating under our new brand upon our separation. Please see
    "Business—Business Development and Marketing" for
    information regarding our new name and our marketing plans for
    our new name.
•
The PricewaterhouseCoopers firms would be able to
    refer clients to us but would be under no obligation to do so.
    Likewise, we would be able to refer clients to firms in the
    PricewaterhouseCoopers network but would be under no obligation
    to do so. The PricewaterhouseCoopers network firms would not be
    permitted to designate us as a preferred provider of services.
    We also would not be able to pay referral fees or other
    compensation to PricewaterhouseCoopers firms, nor would they be
    able to pay referral fees or other compensation to us.
•
Any transition services agreements entered into
    by a PricewaterhouseCoopers firm and us would provide that
    transition services will be provided to us at the cost of the
    services provided. In general, the terms of these agreements
    would not exceed three years.
•
We would continue to be able to occupy office
    space that we currently share with a PricewaterhouseCoopers
    firm, so long as our offices clearly are distinguishable from
    the offices of the PricewaterhouseCoopers firms with which we
    share space. In general, at the end of a lease for any shared
    space, we would need to relocate or enter into a lease for our
    space directly with owner of the property.
•
We and the PricewaterhouseCoopers firms would
    enter into, and comply with, the terms of the noncompete
    arrangements contained in the agreements relating to our
    separation.
The terms and conditions of the final no-action
letter, if issued by the Securities and Exchange Commission, may
materially differ from the terms and conditions of the proposed
no-action letter, including those discussed above.
63
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SELECTED FINANCIAL DATA
The following table sets forth our selected
financial data derived from our audited combined financial
statements as of and for the fiscal years ended June 30,
1999, 2000 and 2001, our unaudited combined balance sheet as of
March 31, 2002, and our unaudited combined income
statements before partner distributions and benefits for the
nine months ended March 31, 2001 and 2002. The selected
financial data should be read in conjunction with our unaudited
pro forma combined financial statements and notes to these
statements, "Management's Discussion and Analysis of
Financial Condition and Results of Operations" and our
combined financial statements and notes to these statements.
Our business will be comprised of the management
consulting and technology services businesses to be transferred
to us prior to the closing of the concurrent offerings by some
of the firms in the PricewaterhouseCoopers network of firms or
by the partners or shareholders of some of these firms as part
of our separation. Our combined financial statements and notes
to these statements, however, contain historical financial
results and assets and liabilities for management consulting and
technology services businesses of firms in the
PricewaterhouseCoopers network that are not being transferred to
us as part of our separation. Accordingly, the historical
financial information set forth below includes the financial
results and assets and liabilities of businesses that we will
not own after our separation, which financial results and assets
and liabilities are not material to us. Please see
"Arrangements with the PricewaterhouseCoopers Network of
Firms" for a description of our separation and our
unaudited pro forma combined financial statements and notes to
these statements for a pro forma presentation of the financial
results of our business, which excludes the financial results
and assets and liabilities of management consulting and
technology services businesses that we will not own after our
separation.
The historical financial results and assets and
liabilities of the businesses being transferred to us as part of
our separation contained in our combined financial statements do
not reflect what our financial results and assets and
liabilities in the future as a separate public company will be
or what our financial results and assets and liabilities would
have been had we been a separate public company with these
businesses during the periods presented for various reasons. For
example, compensation for our partners was not reflected in our
combined income statements before partner distributions and
benefits as an expense. Please see our unaudited pro forma
combined financial statements and notes to these statements,
"Management's Discussions and Analysis of Financial
Condition and Results of Operations" and our combined
financial statements and notes to these statements for a more
detailed discussion of these reasons.
We have not provided selected financial data for
any period preceding the formation of the PricewaterhouseCoopers
network of firms. As further described in the notes to our
combined financial statements, the PricewaterhouseCoopers
network of firms was formed on July 1, 1998, through the
combination of the Coopers & Lybrand and Price Waterhouse
global networks. Prior to July 1, 1998, these global
networks were independent of each other, had operational and
management structures that were not similar, did not have
economic arrangements between them that are comparable to the
arrangement established within the PricewaterhouseCoopers
network and were not under common management. Accordingly, we
believe that there is no accounting basis for combining the
individual firms that comprised these networks in order to
provide information prior to the combination. Each of the
separate firms comprising these networks generally had differing
reporting year ends, maintained its own books and records and
had differing accounting policies and methodologies.
Consequently, comparable financial information for each of the
firms within these networks cannot be reliably produced without
unreasonable effort or expense, and even if such information
could be produced, we believe it would not provide meaningful
information because the information would need to be presented
on a disaggregated basis for many of the individual firms.
64
Table of Contents
Nine Months Ended
Fiscal Year Ended June 30,
March 31,
1999
2000
2001
2001
2002(2)
(in thousands)
Income Statement Data:
Revenues
$
6,230,609
$
7,130,959
$
7,481,003
$
5,637,753
$
5,005,260
Cost of services(1)
2,964,870
3,501,153
3,825,639
2,891,832
2,524,357
Reimbursables and subcontractor costs
1,212,798
1,341,290
1,516,429
1,141,532
1,041,011
Total cost of services(1)
4,177,668
4,842,443
5,342,068
4,033,364
3,565,368
Selling, general and administrative expenses(1)
1,408,261
1,595,085
1,586,126
1,157,117
965,839
Goodwill amortization
46,946
54,911
57,007
42,995
44,817
Operating income(1)
597,734
638,520
495,802
404,277
429,236
Interest income
2,816
1,918
2,553
1,914
4,544
Interest expense
(34,816
)
(47,918
)
(58,553
)
(44,914
)
(33,616
)
Other income (expense)
—
11,619
(15,618
)
(7,910
)
98
Income before partner distributions and benefits
$
565,734
$
604,139
$
424,184
$
353,367
$
400,262
As of June 30,
As of
March 31,
1999
2000
2001
2002
(in thousands)
Balance Sheet Data:
Cash and cash equivalents
$
39,336
$
74,352
$
110,204
$
115,193
Working capital
430,969
418,527
315,217
252,083
Goodwill, net
191,506
214,584
151,063
117,908
Total assets
1,870,368
2,199,024
1,988,499
1,807,168
Amounts due to the PwC Network
888,879
1,085,443
1,019,051
891,505
Long-term liabilities
174,672
219,357
165,709
132,405
PwC Network investment
568,644
567,218
503,034
429,255
(1)
Excludes payments for partner distributions and
    benefits.
(2)
As of July 1, 2001, new arrangements were
    established for sharing cost between the various lines of
    business in the PricewaterhouseCoopers network of firms. See
    Note 4 to our unaudited financial statements for the period
    ended March 31, 2002.
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UNAUDITED PRO FORMA COMBINED FINANCIAL
STATEMENTS
The unaudited pro forma combined financial
statements of Monday Ltd and Monday SCA reported below should be
read in conjunction with our "Management's Discussion
and Analysis of Financial Condition and Results of
Operations" and our combined financial statements and the
notes to these statements. We have included unaudited pro forma
combined financial statements for both Monday Ltd and Monday SCA
because our PEPS Units are comprised of purchase contracts
issued by Monday Ltd and senior notes issued by Monday Finance
SA, a wholly owned indirect subsidiary of Monday SCA. Monday SCA
is guaranteeing the Monday Finance SA senior notes. The
principal difference between the unaudited pro forma combined
financial statements for Monday Ltd and Monday SCA relates to
the minority interest of some of our partners in Monday SCA. The
following unaudited pro forma combined balance sheets as of
March 31, 2002, and unaudited pro forma combined income
statements for the nine months ended March 31, 2002, and
for the fiscal year ended June 30, 2001, have been derived
from our unaudited and audited combined financial statements.
The unaudited pro forma combined financial statements are
illustrative only and do not purport to represent what the
financial position and results of operations of Monday Ltd and
Monday SCA actually would have been had our separation and
related transactions described below occurred on the dates
indicated or what our future performance as a separate public
company will be.
The unaudited pro forma combined income
statements were prepared as if our separation and the related
transactions described below, including the concurrent
offerings, had occurred as of July 1, 2000. The unaudited
pro forma combined balance sheets were prepared as if our
separation and the related transactions had occurred as of
March 31, 2002. The unaudited pro forma combined financial
statements give pro forma effect to a number of factors,
including the following:
•
our separation and the related transactions
    described under "Arrangements with the
    PricewaterhouseCoopers Network of Firms,"
•
the retention by the PricewaterhouseCoopers
    network of firms of debt included in "Amounts due to the
    PwC Network" in the combined financial statements,
•
compensation and benefits under our new
    compensation structure that we would have paid to partners had
    we been a corporation in the historical periods,
•
provision for corporate income taxes, which has
    been determined based on Monday Ltd's status as a Bermuda
    company and which may change as a result of proposed United
    States tax legislation or in the event we decide to convert to a
    United States corporation, the net effect of which for the
    periods presented would be as described in note (e) to the
    unaudited pro forma combined financial statements,
•
the exclusion of the financial results and assets
    and liabilities of the management consulting and technology
    services businesses of PricewaterhouseCoopers firms that are not
    being transferred to us as part of our separation, which are not
    material to us, and
•
the concurrent offerings.
The pro forma adjustments are based upon
available information and assumptions that we believe are
reasonable. Please see the notes to our unaudited pro forma
combined financial statements for a more detailed discussion of
the adjustments described above and how they are presented in
our unaudited pro forma combined financial statements.
Our unaudited pro forma combined income
statements do not give effect to one-time events directly
attributable to our transition to a corporate structure and
related transactions because of their nonrecurring nature. These
one-time events include the following transactions and related
tax effects that are expected to occur in the latter part of
fiscal year 2002 and fiscal year 2003:
•
costs of approximately $6.5 million associated
    with our transition to a corporate structure, primarily
    consisting of indirect taxes, such as capital and stamp duty,
    imposed on the transfer of assets,
•
compensation costs to be incurred immediately
    following the closing of the concurrent Class A common
    shares offering of approximately $117 million resulting
    from the grant of fully vested
66
Table of Contents
restricted share units representing Class A
    common shares to our partners and sales at nominal value of
    Class A common shares to our partners in connection with
    the concurrent Class A common shares offering,
•
recognition of income tax assets, net, of
    approximately $143 million resulting from our transition to
    a corporate structure and
•
marketing expenses of approximately
    $110 million to change our name and build a new brand
    identity.
In addition, the unaudited pro forma combined
financial statements do not give effect to other separation
transaction costs, such as creating separate systems and
processes.
67
Table of Contents
Monday Ltd
Unaudited Pro Forma Combined Balance
Sheet
As of March 31, 2002
Pro forma
Pro forma
adjustments—
adjustments—
excluded
transition to a
Adjustments for
Pro forma
Historical
operations(a)
corporate structure
Pro forma
the offerings
as adjusted
(in thousands)
Assets
Current assets
Cash and cash equivalents
$
115,193
$
(41,462
)
$
—
$
73,731
$
(o)
$
(p)
Short-term investments
13,724
—
—
13,724
Accounts receivable
1,013,310
(43,604
)
—
969,706
Unbilled receivables
188,774
(2,179
)
—
186,595
Amounts due from the PwC Network
58,024
(62
)
(57,962
)(g)
—
Prepaid and other current assets
108,566
(5,085
)
—
103,481
Deferred tax assets
—
—
188,754
(f)
223,457
34,703
(i)
—
Total current assets
1,497,591
(92,392
)
165,495
1,570,694
Investments
4,746
—
—
4,746
Property and equipment, net
145,451
(23,584
)
—
121,867
Goodwill, net
117,908
(25,134
)
—
92,774
Other non-current assets
41,472
(5,761
)
—
35,711
(o)
Deferred tax assets
—
—
12,600
(c)
12,600
(q)
—
(f)
—
(q)
Total non-current assets
309,577
(54,479
)
12,600
267,698
Total assets
$
1,807,168
$
(146,871
)
$
178,095
$
1,838,392
$
$
Liabilities and PwC Network investment and
    Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities
$
183,106
$
(30,900
)
$
6,500
(h)
$
241,706
$
$
66,000
(j)
17,000
(f)
Accrued payroll and related benefits
95,183
(6,765
)
86,757
(i)
175,175
(q)
—
(q)
Short-term bank borrowings
71,611
(28,485
)
—
43,126
Current portion of long-term debt
4,103
(800
)
—
3,303
Amounts due to the PwC Network
891,505
(28,924
)
(345,821
)(g)
516,760
Total current liabilities
1,245,508
(95,874
)
(169,564
)
980,070
Long-term liabilities
Long-term debt
52,455
(20,773
)
—
31,682
Monday Finance SA senior notes due 2008
—
—
—
—
(o)
Other long-term liabilities
79,950
(318
)
—
79,632
Retirement benefits
—
—
31,499
(c)
31,499
Deferred tax liabilities
—
—
28,546
(f)
28,546
Total long-term liabilities
132,405
(21,091
)
60,045
171,359
Minority interest
—
—
—
(m)
—
(m)
PwC Network investment
429,255
(29,906
)
287,859
(g)
—
(12,038
)(l)
(675,170
)(k)
Shareholders' equity
Series A junior preferred shares(s)
—
—
Class A common shares(t)
—
(n)
—
(m)
Class X common shares(u)
—
(n)
—
Restricted share units (related to Class A
    common shares)(v)
(q)
Restricted Class A common shares
(q)
Deferred compensation
(q)
Additional paid-in capital
(31,499
)(c)
556,914
(m)
—
(f)
(p)
(86,757
)(i)
675,170
(k)
—
(m)
—
(n)
—
(q)
Retained earnings
12,600
(c)
118,011
(q)
143,208
(f)
(6,500
)(h)
34,703
(i)
(66,000
)(j)
—
(q)
Accumulated other comprehensive income
12,038
(l)
12,038
Total shareholders' equity
—
—
686,963
686,963
Total liabilities and shareholders' equity
$
1,807,168
$
(146,871
)
$
178,095
$
1,838,392
$
$
The accompanying notes are an integral part of
these financial statements.
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Table of Contents
Monday Ltd
Unaudited Pro Forma Combined Income
Statement
Fiscal Year Ended June 30, 2001
Pro forma
adjustments—
Pro forma
transition
adjustments—
to a
Adjustments
excluded
corporate
for the
Pro forma
Historical
operations(a)
structure
Pro forma
offerings
as adjusted
(in thousands, except per share data)
Revenues
$
7,481,003
$
(332,861
)
$
—
$
7,148,142
$
$
Cost of services
3,825,639
(300,818
)
442,088
(b)
4,000,396
32,111
(c)
1,376
(d)
Reimbursables and subcontractor costs
1,516,429
(16,703
)
—
1,499,726
Total cost of services
5,342,068
(317,521
)
475,575
5,500,122
Selling, general and administrative expenses
1,586,126
(82,992
)
78,016
(b)
1,502,268
(q)
5,667
(c)
(56,549
)(d)
(28,000
)(e)
Goodwill amortization
57,007
(5,396
)
—
51,611
Operating income
495,802
73,048
(474,709
)
94,141
Interest income
2,553
—
—
2,553
Interest expense
(58,553
)
2,996
39,764
(g)
(15,793
)
(o)
Other income (expense)
(15,618
)
—
—
(15,618
)
Income before income taxes
424,184
76,044
(434,945
)
65,283
Provision for income taxes
—
—
85,595
(e)
85,595
(o)(q)
Income before minority interest
424,184
76,044
(520,540
)
(20,312
)
Minority interest
—
—
—
(m)
—
(m)
Income before partner distributions and benefits
$
424,184
Net income (loss)
$
76,044
$
(520,540
)
$
(20,312
)
$
$
Earnings per share:
basic
$
(r)
diluted
$
(r)
Weighted average number of shares:
basic
(r)
diluted
(r)
The accompanying notes are an integral part of
these financial statements.
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Table of Contents
Monday Ltd
Unaudited Pro Forma Combined Income
Statement
Nine Months Ended March 31, 2002
Pro forma
Pro forma
adjustments—
adjustments—
excluded
transition to a
Adjustments for
Pro forma
Historical
operations(a)
corporate structure
Pro forma
the offerings
as adjusted
(in thousands, except per share data)
Revenues
$
5,005,260
$
(223,643
)
$
—
$
4,781,617
$
$
Cost of services
2,524,357
(201,967
)
331,429
(b)
2,672,562
24,477
(c)
(5,734
)(d)
Reimbursables and subcontractor costs
1,041,011
(14,996
)
—
1,026,015
Total cost of services
3,565,368
(216,963
)
350,172
3,698,577
Selling, general and administrative expenses
965,839
(48,951
)
58,487
(b)
948,447
(q)
4,320
(c)
(18,178
)(d)
(13,070
)(e)
Goodwill amortization
44,817
(3,997
)
—
40,820
Operating income
429,236
46,268
(381,731
)
93,773
Interest income
4,544
(5
)
—
4,539
Interest expense
(33,616
)
1,476
24,955
(g)
(7,185
)
(o)
Other income (expense)
98
—
—
98
Income before income taxes
400,262
47,739
(356,776
)
91,225
Provision for income taxes
—
66,765
(e)
66,765
(o)(q)
Income before minority interest
400,262
47,739
(423,541
)
24,460
Minority interest
—
—
—
(m)
—
(m)
Income before partner distributions and benefits
$
400,262
Net income (loss)
$
47,739
$
(423,541
)
$
24,460
$
$
Earnings per share:
basic
$
(r)
diluted
$
(r)
Weighted average number of shares:
basic
(r)
diluted
(r)
The accompanying notes are an integral part of
these financial statements.
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Table of Contents
Monday SCA
Unaudited Pro Forma Combined Balance
Sheet
As of March 31, 2002
Pro forma
Pro forma
adjustments—
adjustments—
excluded
transition to a
Adjustments for
Pro forma
Historical
operations(a)
corporate structure
Pro forma
the offerings
as adjusted
(in thousands)
Assets
Current assets
Cash and cash equivalents
$
115,193
$
(41,462
)
$
—
$
73,731
$
(o)
$
(p)
Short-term investments
13,724
—
—
13,724
Accounts receivable
1,013,310
(43,604
)
—
969,706
Unbilled receivables
188,774
(2,179
)
—
186,595
Amounts due from the PwC Network
58,024
(62
)
(57,962
)(g)
—
Prepaid and other current assets
108,566
(5,085
)
—
103,481
Deferred tax assets
—
—
188,754
(f)
223,457
34,703
(i)
—
Total current assets
1,497,591
(92,392
)
165,495
1,570,694
Investments
4,746
—
—
4,746
Property and equipment, net
145,451
(23,584
)
—
121,867
Goodwill, net
117,908
(25,134
)
—
92,774
Other non-current assets
41,472
(5,761
)
—
35,711
(o)
Deferred tax assets
—
—
12,600
(c)
12,600
(q)
—
(f)
—
(q)
Total non-current assets
309,577
(54,479
)
12,600
267,698
Total assets
$
1,807,168
$
(146,871
)
$
178,095
$
1,838,392
$
$
Liabilities and PwC Network investment and
    Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities
$
183,106
$
(30,900
)
$
6,500
(h)
$
241,706
$
$
66,000
(j)
17,000
(f)
Accrued payroll and related benefits
95,183
(6,765
)
86,757
(i)
175,175
(q)
—
(q)
Short-term bank borrowings
71,611
(28,485
)
—
43,126
Current portion of long-term debt
4,103
(800
)
—
3,303
Amounts due to the PwC Network
891,505
(28,924
)
(345,821
)(g)
516,760
Total current liabilities
1,245,508
(95,874
)
(169,564
)
980,070
Long-term liabilities
Long-term debt
52,455
(20,773
)
—
31,682
Monday Finance SA senior notes due 2008
—
—
—
—
(o)
Other long-term liabilities
79,950
(318
)
—
79,632
Retirement benefits
—
—
31,499
(c)
31,499
Deferred tax liabilities
—
—
28,546
(f)
28,546
Total long-term liabilities
132,405
(21,091
)
60,045
171,359
PwC Network investment
429,255
(29,906
)
287,859
(g)
—
(12,038
)(l)
(675,170
)(k)
Shareholders' equity
Class I common shares(w)
—
(n)
—
Class II common shares(x)
—
(n)
—
Restricted share units (related to Class A
    common shares)(v)
(q
)
Restricted Class A common shares
(q
)
Deferred compensation
(q
)
Additional paid-in capital
(31,499
)(c)
556,914
(p)
—
(f)
(86,757
)(i)
675,170
(k)
— (n
)
—
(q)
Retained earnings
12,600
(c)
118,011
143,208
(f)
(6,500
)(h)
34,703
(i)
(66,000
)(j)
— (q
)
Accumulated other comprehensive income
12,038
(l)
12,038
Total shareholders' equity
—
—
686,963
686,963
Total liabilities and shareholders' equity
$
1,807,168
$
(146,871
)
$
178,095
$
1,838,392
$
$
The accompanying notes are an integral part of
these financial statements.
71
Table of Contents
Monday SCA
Unaudited Pro Forma Combined Income
Statement
Fiscal Year Ended June 30, 2001
Pro forma
adjustments—
Pro forma
transition
Adjustments
adjustments—
to a
for
excluded
corporate
the
Pro forma
Historical
operations(a)
structure
Pro forma
offerings
as adjusted
(in thousands, except per share data)
Revenues
$
7,481,003
$
(332,861
)
$
—
$
7,148,142
$
$
Cost of services
3,825,639
(300,818
)
442,088
(b)
4,000,396
32,111
(c)
1,376
(d)
Reimbursables and subcontractor costs
1,516,429
(16,703
)
—
1,499,726
Total cost of services
5,342,068
(317,521
)
475,575
5,500,122
Selling, general and administrative expenses
1,586,126
(82,992
)
78,016
(b)
1,502,268
(q)
5,667
(c)
(56,549
)(d)
(28,000
)(e)
Goodwill amortization
57,007
(5,396
)
—
51,611
Operating income
495,802
73,048
(474,709
)
94,141
Interest income
2,553
—
—
2,553
Interest expense
(58,553
)
2,996
39,764
(g)
(15,793
)
(o)
Other income (expense)
(15,618
)
—
—
(15,618
)
Income before income taxes
424,184
76,044
(434,945
)
65,283
Provision for income taxes
—
—
85,595
(e)
85,595
(o)(q)
Income before partner distributions and benefits
$
424,184
Net income (loss)
$
76,044
$
(520,540
)
$
(20,312
)
$
$
The accompanying notes are an integral part of
these financial statements.
72
Table of Contents
Monday SCA
Unaudited Pro Forma Combined Income
Statement
Nine Months Ended March 31, 2002
Pro forma
Pro forma
adjustments—
adjustments—
excluded
transition to a
Adjustments for
Pro forma
Historical
operations(a)
corporate structure
Pro forma
the offerings
as adjusted
(in thousands, except per share data)
Revenues
$
5,005,260
$
(223,643
)
$
—
$
4,781,617
$
$
Cost of services
2,524,357
(201,967
)
331,429
(b)
2,672,562
24,477
(c)
(5,734
)(d)
Reimbursables and subcontractor costs
1,041,011
(14,996
)
—
1,026,015
Total cost of services
3,565,368
(216,963
)
350,172
3,698,577
Selling, general and administrative expenses
965,839
(48,951
)
58,487
(b)
948,447
(q)
4,320
(c)
(18,178
)(d)
(13,070
)(e)
Goodwill amortization
44,817
(3,997
)
—
40,820
Operating income
429,236
46,268
(381,731
)
93,773
Interest income
4,544
(5
)
—
4,539
Interest expense
(33,616
)
1,476
24,955
(g)
(7,185
)
(o)
Other income (expense)
98
—
—
98
Income before income taxes
400,262
47,739
(356,776
)
91,225
Provision for income taxes
—
66,765
(e)
66,765
(o)(q)
Income before partner distributions and benefits
$
400,262
Net income (loss)
$
47,739
$
(423,541
)
$
24,460
$
$
The accompanying notes are an integral part of
these financial statements.
73
Table of Contents
NOTES TO UNAUDITED PRO FORMA COMBINED
FINANCIAL STATEMENTS
(unaudited)
(in thousands, except share and per share
data)
Monday Ltd currently has no material assets other
than Class I and Class II common shares in its
subsidiary, Monday SCA. As the sole general partner of Monday
SCA and as a result of its majority voting and economic interest
in Monday SCA, Monday Ltd will control Monday SCA's
management and operations and, accordingly, will consolidate
Monday SCA's results in its financial statements. Monday
Ltd's and Monday SCA's transition to a corporate
structure will be accounted for on a carryover basis.
(a)
Reflects adjustments necessary to remove the
    historical results of operations and assets and liabilities of
    the business process outsourcing operations and the management
    consulting and technology services businesses of firms in the
    PricewaterhouseCoopers network that are not being transferred to
    us as part of our separation.
(b)
Reflects adjustments for compensation and benefit
    costs totaling $389,916 and $520,104 for the nine months ended
    March 31, 2002, and for the fiscal year ended June 30,
    2001, respectively, that we would have paid to our partners
    under our new compensation structure had we been a corporation
    during the historical periods. Benefit costs are medical, dental
    and payroll taxes, all of which are based on estimated costs
    that would have been incurred had these benefits been in place
    during the historical periods. As we have operated in historical
    periods as a series of separate partnerships and corporations,
    compensation for our partners was not reflected in our combined
    income statements before partner distributions and benefits as
    an expense. As a result, our compensation and benefits expense
    has not reflected most payments for services rendered by
    partners. Following the closing of the concurrent offerings, we
    will include payments for services rendered by our partners in
    compensation and benefits expense. The new compensation
    structure to be adopted by us upon completion of the concurrent
    offerings is comprised of both cash and equity components and a
    benefits program to be adopted as of the closing of the
    concurrent offerings. The cash component will consist of a fixed
    element and a variable cash incentive element. The fixed and
    variable elements of the cash component and the benefits have
    been reflected in these adjustments. Compensation does not
    include the fair value of fully vested restricted share units
    representing Class A common shares to be granted at the
    time of the concurrent offerings to all of our partners because
    of their nonrecurring nature.
Compensation and benefit costs of partners have
    been allocated 85% to cost of services and 15% to selling,
    general and administrative expense for the nine months ended
    March 31, 2002 and for the fiscal year ended June 30,
    2001, based upon the estimated number of partners involved in
    each activity.
(c)
Reflects an adjustment for pension expense
    totalling $28,797 and $37,778 for the nine months ended
    March 31, 2002, and for the fiscal year ended June 30,
    2001, respectively, under our partner pension plans that we plan
    to implement following the closing of the concurrent offerings.
    The specific terms of these plans, which may vary based on local
    legal requirements, have not yet been finalized. We have,
    however, determined the aggregate cost of these plans, which we
    do not expect to materially change as we finalize the terms of
    these plans. We would have incurred this expense with respect to
    our partners had we been a separate public company during the
    historical periods. Since we have operated in historical periods
    as a series of separate partnerships and corporations, pension
    payments to our partners was not reflected in our combined
    income statements before partner distributions and benefits as
    an expense. As a result, our compensation and benefits expense
    has not reflected most payments for pension benefits paid to our
    partners. Following the closing of the concurrent offerings, we
    will include pension costs for our partners in compensation and
    benefits expense. An adjustment of $31,499 was made to recognize
    a pension liability for certain of our partners covered by
    existing pension plans that will be transferred to us in
    connection with our separation. A deferred income tax asset of
    $12,600 has been recorded related to these accrued benefits.
74
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NOTES TO UNAUDITED PRO FORMA COMBINED
FINANCIAL STATEMENTS—(Continued)
Partner pension expense has been allocated 85% to
    cost of services and 15% to selling, general and administrative
    expense for the nine months ended March 31, 2002 and for
    the fiscal year ended June 30, 2001, based upon the
    estimated number of partners involved in each activity.
(d)
We currently receive services from various firms
    in the PricewaterhouseCoopers network for which costs are
    incurred and accumulated and charged to us and the other
    businesses conducted by the PricewaterhouseCoopers firms using
    an allocation methodology. These services include infrastructure
    and support services such as occupancy, technology services,
    knowledge management, human resources, training, finance and
    accounting information services, marketing and business
    development, risk management and practice protection and
    firm-wide management. Most of these costs are included within
    our selling, general and administrative expenses. Prior to
    July 1, 2001, our share of these costs was allocated to us
    using various bases including relative revenues, headcount,
    square footage and other measures. Beginning July 1, 2001,
    we entered into arrangements with the PricewaterhouseCoopers
    firms to allocate these costs differently. Under these
    arrangements, the PricewaterhouseCoopers network allocates costs
    to us on the basis of actual costs, when available, or a
    reasonable substitute, such as relative revenues, headcount,
    square footage or other bases.
Prior to our separation from the
    PricewaterhouseCoopers network of firms, we or our subsidiaries
    will enter into a number of agreements relating to some of our
    basic processing and infrastructure services that the
    PricewaterhouseCoopers firms will provide to us. These
    agreements will take effect following our separation for periods
    of up to three years. In general, we will be provided these
    services at the cost incurred by the various
    PricewaterhouseCoopers firms in providing these services, which
    we believe is consistent with the bases upon which costs have
    been allocated to us since July 1, 2001.
The types of services we will continue to receive
    include infrastructure, technology solutions, knowledge
    management, human resources, training, finance and accounting
    information services and other services. In general, we will be
    able to terminate our agreements with the PricewaterhouseCoopers
    firms on relatively short notice, but we may face termination
    costs in some circumstances. Please see "Arrangements with
    the PricewaterhouseCoopers Network of Firms—Transition
    Services Agreements" for a description of the terms and
    conditions of these agreements.
The cost of services to be incurred after our
    separation are expected to approximate the cost of services
    charged under the arrangements in effect from July 1, 2001,
    to the completion of this offering and be less than the service
    costs incurred under the arrangements prior to July 1,
    2001. The total decrease in costs is $35,563, ($4,556) of which
    reflects an increase in cost of services and $40,119 of which
    reflects a decrease in selling, general and administrative costs
    for the year ended June 30, 2001.
Our business process management services business
    has historically operated on a stand-alone basis and has
    separately incurred and recorded technology services, human
    resources, finance and accounting, marketing and business
    development, risk management and practice protection costs. In
    addition, we have been charged for firm-wide management,
    technology services, human resources, finance and accounting,
    marketing and business development, risk management and practice
    protection services by the PricewaterhouseCoopers network of
    firms based on an allocation methodology. Because some of these
    allocated costs fully duplicate costs allocated to the other
    management consulting and technology services businesses and our
    business process management services business will no longer be
    charged for these costs under the transition services agreements
    upon our separation from the PricewaterhouseCoopers network of
    firms, we have made a pro forma adjustment to eliminate such
    duplicate allocated costs amounting to $23,912 ($5,734 related
    to cost of services, $18,178 related to selling, general and
    administrative costs) and $19,610 ($3,180 related to cost of
    services, $16,430 related to selling, general and administrative
    costs) for the nine months ended March 31, 2002, and for
    the fiscal year ended June 30, 2001, respectively.
(e)
Reflects an adjustment for an estimated income
    tax provision as if we had operated in a corporate structure.
    Pro forma income tax totals $66,765 and $85,595 for the nine
    months ended March 31, 2002, and for the fiscal year ended
    June 30, 2001, respectively, after pro forma adjustments to
    eliminate actual
75
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NOTES TO UNAUDITED PRO FORMA COMBINED
FINANCIAL STATEMENTS—(Continued)
entity-level taxes incurred prior to our
    separation for the nine months ended March 31, 2002, and
    the fiscal year ended June 30, 2001, of $13,070 and
    $28,000, respectively. The pro forma effective income tax rate
    reflects a number of non-deductible items, including goodwill
    amortization expense, the non-deductible portion of meals and
    entertainment expense and non-deductible operating losses. As a
    series of separate partnerships and corporations, we generally
    were not subject to income taxes. However, some countries were
    subject to income taxes in their local jurisdictions, which
    historically have been reflected in selling, general and
    administrative costs. The effective tax rate in the periods
    presented would not be materially affected if we were organized
    in the United States instead of Bermuda. If Monday Ltd were
    organized in the United States instead of Bermuda, we estimate
    that we would have incurred additional tax expense of $344 and
    $478 for the fiscal year ended June 30, 2001, and the nine
    months ended March 31, 2002, respectively. As a result, pro
    forma as adjusted tax expense would have been
    $          and
    $          for
    the fiscal year ended June 30, 2001, and the nine months
    ended March 31, 2002, respectively.
(f)
Reflects an adjustment to establish deferred
    income tax assets and liabilities and current income taxes
    payable in connection with the transition to a corporate
    structure. Adjustment includes $188,754 related to future
    current income tax benefits, $28,546 related to future
    non-current income tax liabilities and $17,000 of current income
    taxes payable that resulted from our transition to a corporate
    structure. An adjustment of
    $                               relates
    to future income tax benefits arising from our separation from
    the PricewaterhouseCoopers network of firms.
(g)
Reflects an adjustment of $345,821 for the
    retention by the PricewaterhouseCoopers network of firms of debt
    included in amounts due to the PwC Network and an adjustment of
    $57,962 for the termination of amounts due from the PwC Network.
    In addition, an adjustment to eliminate $24,955 and $39,764 for
    the nine months ended March 31, 2002, and for the fiscal
    year ended June 30, 2001, respectively, of related interest
    expense. We expect to enter into new credit facilities following
    the concurrent offerings. However, we believe that our cash flow
    from operations, cash transferred to us as part of our
    separation and net proceeds from this offering will be
    sufficient to meet our cash needs for the twelve months after
    separation. Amounts will remain due to the
    PricewaterhouseCoopers firms related to accounts payable,
    accrued payroll and other accrued liabilities after our
    separation.
(h)
Reflects an adjustment for estimated transaction
    costs totaling $6,500 consisting primarily of indirect taxes
    such as capital and stamp duty imposed on the transfer of assets
    in connection with our transition to a corporate structure.
(i)
Reflects an adjustment to recognize accrued
    benefits for our partners consisting of accrued vacation of
    $55,000 and accrued severance of $31,757 upon our separation. A
    deferred income tax asset of $34,703 has been recorded related
    to these accrued benefits.
(j)
Reflects a net adjustment of $66,000 for the
    estimated costs totaling $110,000 to be incurred in fiscal years
    2002 and 2003 to change our name and build a new brand identity,
    net of a related reduction of current taxes payable of $44,000.
    Current taxes payable has been reduced to take account of the
    tax benefit to be realized when the costs associated with
    rebranding are incurred. The unaudited pro forma combined income
    statements do not reflect any significant costs associated with
    rebranding expenses as no material costs relating to rebranding
    were incurred in the periods presented.
(k)
Reflects the transfer of $675,170 from PwC
    Network investment to additional paid-in capital.
(l)
Reflects adjustment of $12,038 to transfer
    accumulated other comprehensive income, which principally is
    comprised of foreign currency translation adjustments and
    unrealized gains and losses on available for sale securities,
    from PwC Network investment to shareholders' equity.
(m)
Reflects an initial
    assumed      % minority interest
    ownership for Class I common shares in Monday SCA held by
    or on behalf of our partners, firms in the
    PricewaterhouseCoopers network and partners and shareholders of
    some other firms in the network, if applicable, and for
    exchangeable shares issued by a subsidiary of Monday SCA held by
    our partners located in Canada immediately prior to the closing
    of this offering. The minority interest percentage will be
    reduced to        % because
    Monday Ltd will exchange its Class A common shares for most
    of the outstanding Monday SCA Class I common shares
76
Table of Contents
NOTES TO UNAUDITED PRO FORMA COMBINED
FINANCIAL STATEMENTS—(Continued)
other than those held by or on behalf of our
    partners, on a one-for-one basis immediately prior to the
    closing of this offering. In addition, Monday SCA will redeem
    the Monday SCA Class I common shares held by the
    PricewaterhouseCoopers firm, or its partners or shareholders, in
    Spain immediately after the closing of this offering at a price
    per share equal to the initial offering price of Monday
    Ltd's Class A common shares. Also reflects the assumed
    issuance to Monday Ltd of
    the       Monday SCA Class I
    common shares that will be issued in connection with the
    delivery of
    the                     Monday
    Ltd Class A common shares
    underlying                  fully
    vested restricted share units for purposes of the pro forma
    minority interest and earnings per share calculations. The
    amount of the adjustment reflected on the unaudited pro forma
    combined balance sheet is net of the increase in book value that
    results from our separation from the PricewaterhouseCoopers
    network of firms.
(n)
Reflects the issuance
    of                        Class A
    common shares
    and                      Class X
    common shares in Monday Ltd to PricewaterhouseCoopers firms or
    their partners or shareholders in the Monday Ltd unaudited pro
    forma combined balance sheet.
Reflects the issuance
of                          Class I
common shares and 229 Class II common shares in Monday SCA
to Monday Ltd and PricewaterhouseCoopers firms or their partners
or shareholders in the Monday SCA unaudited pro forma combined
balance sheet.
(o)
Adjustment to record issuance of
    $               of
    Monday Finance SA Senior Notes due 2008 to the public, which
    results in net proceeds of
    $               and
    an estimated related interest expense of 5.75%, plus
    amortization of debt issuance costs which will be amortized over
    6 years, of
    $            and
    $          for
    the nine months ended March 31, 2002, and for the fiscal
    year ended June 30, 2001, respectively.
(p)
Adjustment to record cash payments totaling
    $            to
    PricewaterhouseCoopers firms, or their partners or shareholders.
    This amount includes a payment to the PricewaterhouseCoopers
    firm in India in exchange for its management consulting and
    technology services business and the redemption of the Monday
    SCA Class I common shares held by the
    PricewaterhouseCoopers firm, or its partners or shareholders, in
    Spain immediately following the closing of this offering. It
    also reflects payments to various PricewaterhouseCoopers firms
    that do not have, or are not transferring to us, a management
    consulting and technology services business in exchange for
    entering into a noncompetition agreement with us. Although we
    have not yet entered into a noncompetition agreement with any of
    these firms, the adjustment reflects the assumption that we will
    enter into a noncompetition agreement with each of these firms.
(q)
Adjustment reflects the grant of restricted share
    units and restricted shares and the sale of Class A common
    shares to our partners and directors. We recognize compensation
    expense for share-based compensation awards in accordance with
    Accounting Principles Board Opinion No. 25,
    "Accounting for Stock Issued to Employees." Under the
    measurement principles of APB No. 25 and Financial
    Interpretation Number 44, "Accounting for Certain
    Transactions Involving Stock Compensation— an
    Interpretation of APB 25," we will recognize
    compensation expense of $117,000
    (                  restricted
    share units that vest upon grant
    and             Class A
    common shares sold at nominal value, based upon the assumed
    initial offering price of $     per
    share plus
    $            in
    payroll taxes) and a deferred income tax benefit of
    $               .
    Monday Ltd will also
    issue                restricted
    shares to its new Chief Executive Officer and Chief Financial
    and Administrative Officer and our other executive management in
    respect of future services. These restricted shares will vest
    pro-rata over three years and will be expensed over the vesting
    period. See "Management— Partner Compensation"
    for a more detailed description of our partner compensation.
77
Table of Contents
NOTES TO UNAUDITED PRO FORMA COMBINED
FINANCIAL STATEMENTS—(Continued)
(r)
For the purposes of the pro forma earnings per
    share calculation in the Monday Ltd unaudited pro forma combined
    income statement, the weighted average shares outstanding, basic
    and diluted, were calculated as set forth below:
Pro forma as adjusted
Fiscal Year Ended
Nine Months Ended
June 30, 2001
March 31, 2002
Common share issuances
Basic
Diluted
Basic
Diluted
Class A common shares
Monday SCA Class I common shares
Exchangeable shares
Restricted Class A common shares
Restricted share units (relating to Class A
    common shares)
Class A common share options
Weighted average shares outstanding
Basic and diluted earnings per share in the
    Monday Ltd unaudited pro forma combined income statement are
    calculated as set forth below:
Pro forma as adjusted
Nine Months
Fiscal Year Ended
Ended
Basic earnings per share
June 30, 2001
March 31, 2002
Net income (loss)
$
$
Weighted average shares outstanding
Basic earnings per share
$
$
Pro forma as adjusted
Nine Months
Fiscal Year Ended
Ended
Diluted earnings per share
June 30, 2001
March 31, 2002
Net income (loss)
$
$
Adjustments:
Minority interest
Income (loss) before minority interest
Weighted average shares outstanding
Diluted earnings per share
$
$
78
Table of Contents
NOTES TO UNAUDITED PRO FORMA COMBINED
FINANCIAL STATEMENTS—(Continued)
(s)
Reflects 1,000,000,000 shares authorized,
    zero shares issued and outstanding and zero shares issued
    and outstanding pro forma and zero shares issued and outstanding
    pro forma as adjusted.
(t)
Reflects par value of $0.0001 per share,
    2,000,000,000 shares
    authorized,                           shares
    issued and outstanding pro forma
    and                             shares
    issued and outstanding pro forma as adjusted.
(u)
Reflects par value of $0.0001 per share,
    2,000,000,000 shares
    authorized,                        shares
    issued and outstanding pro forma
    and                        shares
    issued and outstanding pro forma as adjusted.
(v)
Reflects                     restricted
    share units issued and outstanding pro forma as adjusted.
(w)
Reflects par value of
    $          per
    share,                      shares
    authorized,                          shares
    issued and outstanding pro forma
    and                          shares
    issued and outstanding pro forma as adjusted.
(x)
Reflects par value of
    $                    per
    share, 229 shares authorized, 229 shares issued and
    outstanding pro forma and 229 shares issued and outstanding
    pro forma as adjusted.
79
Table of Contents
RATIO OF EARNINGS TO FIXED CHARGES
AND
PRO FORMA RATIO OF EARNINGS TO FIXED
CHARGES
The following table shows the ratio of earnings
to fixed charges and the pro forma ratio of earnings to fixed
charges for Monday SCA and its subsidiaries on a consolidated
basis. The following table does not show the ratio of earnings
to fixed charges for Monday Finance SA on a stand-alone basis
because it is not meaningful.
The pro forma ratio of earnings to fixed charges
was derived from our audited and unaudited financial statements
and was prepared as if our separation and the related
transactions had occurred as of July 1, 2000. The pro forma
ratio of earnings to fixed charges is illustrative only and does
not purport to represent what the ratio of earnings to fixed
charges actually would have been had our separation and related
transactions occurred on the dates indicated or what Monday
SCA's future performance as a separate public company will
be. The pro forma ratio of earnings to fixed charges give pro
forma effect to a number of items including the following:
•
our separation and the related transactions
    described under "Arrangements with the
    PricewaterhouseCoopers Network of Firms,"
•
the retention by the PricewaterhouseCoopers
    network of firms of debt included in "Amounts due to the
    PwC Network" in the combined financial statements,
•
compensation and benefits under our new
    compensation structure that we would have paid to partners had
    we been a corporation in the historical periods
•
the exclusion of the financial results of the
    management consulting and technology services businesses of
    PricewaterhouseCoopers firms that are not being transferred to
    us as part of our separation, which are not material to us and
•
the concurrent offerings.
For purposes of computing the ratio of earnings
to fixed charges and pro forma earnings to fixed charges:
•
earnings for the nine months ended March 31,
    2001 and 2002 and the fiscal years ended June 30, 1999,
    2000 and 2001 represent income before partner distributions and
    benefits and income taxes,
•
earnings on a pro forma basis for the nine months
    ended March 31, 2002 and the fiscal year ended
    June 30, 2001 represent income before income taxes, and
•
fixed charges represent interest expense and such
    portion of rental expense which represents an appropriate
    interest factor.
Historical
Pro Forma
as adjusted
Pro Forma
as adjusted
Historical
Nine
Months
Year
Ended
Nine
Months
Year Ended June 30,
Ended
March 31,
Ended
June 30,
March 31,
1999
2000
2001
2001
2001
2002
2002
Ratio of earnings to fixed charges
8.03
7.06
4.95
5.31
6.51
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MANAGEMENT'S DISCUSSION AND
ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
You should read the following discussion in
conjunction with our unaudited pro forma combined financial
statements and related notes and our combined financial
statements and related notes. Our fiscal year ends on
June 30. This Management's Discussion and Analysis of
Financial Condition and Results of Operations contains
forward-looking statements. Please see "Disclosure
Regarding Forward-Looking Statements" for a discussion of
the uncertainties, risks and assumptions associated with these
statements. Because Monday Ltd has no material activities,
assets or liabilities other than its holding in Monday SCA and
pursuant to the purchase contracts, the following Management
Discussion and Analysis of Financial Conditions and Results of
Operations also applies to Monday SCA, which has agreed to
absolutely, irrevocably and unconditionally guarantee the
payment of principal, interest, additional amounts, if any, and
premium, if any, on the senior notes issued by Monday Finance SA.
Overview
We are one of the world's leading providers
of management consulting and technology services. We operate
globally with a consistent approach to serving our clients,
which allows us to execute complex engagements on a global,
regional and local basis. We principally track and manage our
business according to the following four geographic units, which
we refer to as theatres: the Americas, EMEA, Asia Pacific and
SOACAT. The countries that comprise these theatres are listed
under "Business—Overview." We achieve our
consistent approach through the application of our common
methodologies, training programs and our operating model. Our
client service staff in each theatre specialize in one of five
industry groups and one of seven service areas, which we refer
to as our solution areas.
Separation
from the PricewaterhouseCoopers Network of Firms
Monday Ltd was incorporated on March 27,
2002, and currently has no material activities, assets or
liabilities. Until our separation from the
PricewaterhouseCoopers network, which will occur immediately
prior to the closing of the concurrent Class A common
shares offering, our business will continue to be part of the
management consulting and technology services businesses of
firms in the PricewaterhouseCoopers network. The
PricewaterhouseCoopers network of firms is a group of separate
firms that provide various services, including accounting,
auditing and tax services as well as management consulting and
technology services, to businesses and other organizations.
Although these firms share a name, a common management oversight
team and common strategies and operational standards, most of
the firms in the PricewaterhouseCoopers network are owned by
their local partners or shareholders. As part of our separation,
management consulting and technology services businesses
representing approximately 95% of our revenues for fiscal year
2001 will be transferred to us. Excluding business process
management businesses, the management consulting and technology
services businesses not being transferred to us represented
approximately 2% of our revenues for fiscal year 2001.
PricewaterhouseCoopers firms with these businesses are being
asked to enter into noncompetition agreements with us and wind
down their management consulting and technology services
businesses that would not be allowed to compete with us pursuant
to the terms of the noncompetition agreement in exchange for a
cash payment. The business process management services
businesses that are not being transferred to us represented
approximately 3% of our revenues for fiscal year 2001. These
businesses will remain with the PricewaterhouseCoopers firms and
continue to be operated.
The aggregate number of Class A common
shares we will issue to these firms in connection with the
concurrent Class A common shares offering, or in some cases
their partners and shareholders,
is              million,
which, assuming an estimated initial public offering price of
$            ,
will have an aggregate value of approximately
$             billion.
The allocation of these shares among the PricewaterhouseCoopers
firms was based upon an agreed methodology taking into account a
variety of factors, including expenses incurred by firms for the
general benefit of PricewaterhouseCoopers network of firms, the
net book value of the businesses contributed to us and the
relative value of the businesses contributed to us. In
connection with their withdrawal from their respective
PricewaterhouseCoopers firms, our partners will receive
approximately
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million
of these Class A common shares, which will have an
estimated aggregate value of approximately
$           million.
Approximately            million
shares issued to one of the PricewaterhouseCoopers firms will be
purchased by us or one of our subsidiaries immediately after the
closing of the concurrent offerings, resulting in
approximately         million
shares outstanding. For purposes of calculating the number of
Class A common shares and value of these shares in the
prior sentences, we have treated all shares issued by our
subsidiaries in connection with our separation, other than those
owned by Monday Ltd or its subsidiaries, as if they had been
redeemed or exchanged on a one-for-one basis for our
Class A common shares.
The management consulting and technology services
businesses being transferred to us are a result of a combination
on July 1, 1998, of the Coopers & Lybrand and Price
Waterhouse global accounting, tax and consulting networks. As
part of this combination, substantially all of the individual
Coopers & Lybrand and Price Waterhouse firms merged.
The transactions did not result in a legal combination of the
separate individual firms of Coopers & Lybrand and Price
Waterhouse into one legal firm on a global basis with separate
subsidiary partnerships, but rather resulted in the combination
of the various partnerships on a country-by-country or
region-by-region basis and the establishment of a network of
combined firms which sought to coordinate strategy, branding and
standards of operation on a global basis under a common
management oversight team. The various firms that make up the
PricewaterhouseCoopers network generally hold their respective
management consulting and technology services businesses as
unincorporated business units within the respective firms or, in
some cases, as subsidiary entities of the respective firms.
Because of our transition to a corporate
structure and for the reasons described in this section, the
historical financial results and assets and liabilities of the
businesses being transferred to us as part of our separation
contained in our combined financial statements do not reflect
what our financial results and assets and liabilities in the
future as a separate public company will be or what our
financial results and assets and liabilities would have been had
we been a separate public company with these businesses during
the periods presented. In addition, our combined financial
statements reflect the historical financial position, results of
operations and cash flows of all the management consulting and
technology services businesses of the PricewaterhouseCoopers
network of firms, including the businesses which will not be
owned by us. Furthermore, upon our separation, we will operate
as a public company in an environment that is different from the
environment that we have operated in during the periods
presented in our combined financial statements, particularly
with respect to the independence-related issues described below.
We have discussed below some items, transactions
or situations that will affect our financial statements when we
operate as a public company and are not reflected in our
combined financial statements. In particular, in connection with
our separation and transition to a corporate structure, we will
incur charges relating to a number of nonrecurring items during
fiscal years 2002 and 2003. As a result, we expect these items
to substantially reduce our net income for fiscal years 2002 and
2003 and that this effect will be particularly significant in
the fiscal quarter ending September 30, 2002. Please refer
to our unaudited pro forma combined financial statements and
notes to these statements for a pro forma presentation of the
financial results and assets and liabilities of our business
which gives pro forma effect to, among other things, some
aspects of our transition to a corporate structure such as
reflecting compensation and benefits to our partners, and the
exclusion of management consulting and technology services
businesses that are not being transferred to us.
Recent Trends
in Our Business
The level of economic activity in the geographic
theatres, countries and regions we serve is the primary factor
affecting our revenues. In addition, changes in the industry and
business environment and practices of our clients drive the
demand for the management consulting and technology services we
provide. The worldwide economic downturn which began in fiscal
year 2001 has affected the operations of many of our clients
leading them to reduce their spending on management consulting
and technology services projects. In addition, since late 2000
we have faced increasing difficulty in winning new engagements
from clients that are audited by PricewaterhouseCoopers firms
due to rules and regulations regarding the independence of
accountants from audit clients and the additional attention
being paid to auditor independence as a result of
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the Enron situation. These factors have
negatively impacted our results of operations for fiscal year
2001 and the first three quarters of fiscal year 2002.
In the first three quarters of fiscal year 2002,
we experienced a substantial decline in the level of our new
business activity for both audit clients of
PricewaterhouseCoopers firms and non-audit clients, as measured
by bookings. Bookings is the amount we expect to realize in net
revenues over the life of an engagement for which we have
entered into a contract with our client. We believe that this
decline is primarily due to the following factors:
•
the impact of the Enron situation and the new
    auditor independence rules, as discussed below,
•
reduced demand generally for management
    consulting and technology services and
•
increased competition for new engagements.
Although new bookings are indicative of future
net revenues expected to be derived from our new engagements,
changes in the level of our net revenues lag changes in the
level of our new bookings. The period in which we will recognize
net revenues from a new engagement varies depending on the type
and duration of each engagement. We estimate that our net
revenues in any fiscal year, historically, have been comprised
primarily of bookings in the current fiscal year, the prior
fiscal year and, to a much lesser extent, the fiscal year
preceding the prior fiscal year. As a result, we expect the
decline in our new bookings will cause our net revenues to
decline in the last quarter of fiscal year 2002 and at least the
first quarter of fiscal year 2003 as compared to the
sequentially prior quarter. In addition, we expect that net
revenues will be lower, on a year over year basis, for at least
a few quarters after the closing of the concurrent offerings.
Auditor Independence Rules, the Enron
    Situation and the Impact on Our Business
We believe we are experiencing the adverse
effects of the independence-related issues and the Enron
situation worldwide. We have described the auditor independence
rules, the Enron situation and more details of the impact on our
business under "Auditor Independence Rules, the Enron
Situation and the Proposed SEC No-Action Letter" and
"Business—Auditor Independence Rules, the Enron
Situation and the Impact on Our Business." We believe the
impact on our business from independence-related issues and the
Enron situation is illustrated by the difficulty we are having
obtaining new engagements in the United States, where we have
been most significantly affected to date, from audit clients of
PricewaterhouseCoopers firms, as evidenced by a recent trend in
our new bookings to these clients in our Americas theatre.
Historically, we have not identified within our bookings system,
as described below, whether a client also is an audit client of
a PricewaterhouseCoopers firm. However, in order to better
measure the effect of the auditor independence rules and the
Enron situation in the Americas theatre, we have identified the
audit or non-audit status for clients generating approximately
90% of the new bookings in the Americas theatre that have been
entered into our bookings system since July 1, 2001. We
estimate that average monthly new bookings to clients in the
Americas theatre that we have identified as audit clients of
PricewaterhouseCoopers firms were approximately 57% lower in the
fiscal quarter ended March 31, 2002, as compared to the six
months ended December 31, 2001. We expect the level of new
business we are awarded from PricewaterhouseCoopers audit
clients worldwide will continue to decline through at least the
remainder of fiscal year 2002, with a possibility of reversal
beginning only after we complete our separation.
We expect that we will experience the negative
effects of independence-related issues on our revenues beyond
fiscal year 2003, primarily for three reasons. First, we believe
that it may take six to twelve months for us to reestablish our
working relationships with affected clients and identify new
opportunities to provide our services. This timing is due in
part to our clients' budget cycles and the varying lead
times for obtaining engagements. Our competitors have had
opportunities to strengthen their relationships through the work
and new engagements we were denied. Second, as discussed above,
our net revenues lag new bookings. Accordingly, we will not
experience an increase in net revenues from new engagements to
PricewaterhouseCoopers audit clients after the completion of
this offering for a period of time after new bookings are made.
Third, a significant portion of our bookings in any year is from
engagements that are add-on phases to existing engagements. At
the time we close the concurrent offerings, we will have had
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substantially reduced bookings from these clients
for at least seven months. As a result, net revenues in future
fiscal years will be adversely affected by depressed bookings in
fiscal year 2002 and the first part of fiscal year 2003. Our
profitability will decline if our net revenues decline and we
are unable to adequately reduce our costs.
We track the level of our new business activity
through a bookings system, which is accessible by our client
service staff on a worldwide basis. This system also tracks
potential bookings for engagements that we are pursuing. While
we use this system as an important day-to-day management tool,
it is not a financial accounting system. Future net revenues for
an engagement may not match the amount of bookings reflected in
the bookings system for a number of reasons, including
inaccurate estimates of work required to complete an engagement,
alteration in the scope of an engagement and cancellation or
termination of an engagement. Although our level of bookings is
an indication of how our business is performing, we do not
characterize our bookings, or our engagement contracts
associated with new bookings, as backlog because our engagements
can generally be cancelled or terminated on short notice.
Services
the PricewaterhouseCoopers Firms Provide to Us
We currently receive services from various firms
in the PricewaterhouseCoopers network for which costs are
incurred and accumulated and charged to us and the other
businesses conducted by the PricewaterhouseCoopers firms using
allocation methodologies. These services include infrastructure
and support services such as occupancy, technology services and
software and processing services, knowledge management, human
resources, training, finance and accounting information
services, marketing and business development, risk management
and practice protection and firm-wide management. Most of these
costs are included in our selling, general and administrative
expenses. Prior to July 1, 2001, our share of these costs
was allocated to us using various bases designed to estimate
actual costs, including relative revenues, headcount, square
footage and other measures. Beginning July 1, 2001, we
entered into arrangements with the PricewaterhouseCoopers firms
to allocate these costs according to use or consumption based on
actual direct costs, when available, plus overhead costs. When
actual direct costs are not available, costs are allocated based
on an estimate of actual costs. Other firm-wide infrastructure
costs are allocated to us primarily on the basis of headcount.
The PricewaterhouseCoopers firms will no longer charge us after
our separation for the costs of services we can provide
internally or costs no longer relevant to our operations as a
separate public company.
Prior to our separation, we or our subsidiaries
will enter into a number of agreements relating to some of our
basic processing and infrastructure services that the
PricewaterhouseCoopers firms will provide to us. These
agreements will take effect following our separation for periods
of up to three years. In general, we will be provided these
services at the cost incurred by the various
PricewaterhouseCoopers network of firms in providing these
services, which we believe is consistent with the bases upon
which costs have been allocated to us since July 1, 2001.
The types of services we will continue to receive include
infrastructure, technology solutions, knowledge management,
human resources, training, finance and accounting information
services and other services. In general, we will be able to
terminate our agreements with the PricewaterhouseCoopers firms
on relatively short notice, but we may face termination costs in
some circumstances. Please see "Arrangements with the
PricewaterhouseCoopers Network of Firms— Transition
Services Agreements" for a description of the terms and
conditions of these agreements. Costs that have been allocated
to us in the past that will no longer be charged to us following
our separation include costs associated with firm-wide
management, risk management and practice protection, marketing
and business development, interest expense and taxes.
Accounting
Matters Relating to Our Separation and Transition to a Public
Company
Interest Expense.
In a number of countries and
regions, the management consulting and technology services
businesses in the PricewaterhouseCoopers network are operated
through legal entities that are separate and distinct from the
other PricewaterhouseCoopers businesses in the same country or
region. In these countries or regions, some of these separate
businesses have their own long-term or short-term borrowings
from banks. We generally plan to retain or renew these
borrowings following our separation. In other countries and
regions, the PricewaterhouseCoopers firms historically have
incurred debt that has been
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used to partially fund our operations, and we
have been allocated our share of the debt and corresponding
interest expense incurred by the PricewaterhouseCoopers firms.
As a public company, our interest expense may be higher or lower
than that reflected in our combined income statement before
partner distributions and benefits and will be dependent on our
future cash needs and the terms we can obtain on existing and
additional debt facilities.
Benefit Obligations.
Our partners and other employees
generally have been included in various retirement and
postretirement benefit plans as well as other employee benefit
plans, such as health insurance, sponsored by the various
PricewaterhouseCoopers firms. The cost of these plans for
employees, excluding partners, is allocated to us from the
PricewaterhouseCoopers network of firms based on headcount. This
cost is included in cost of services in our combined statements
of income before partner distributions and benefits. The costs
of these benefits for our partners are not included in our
combined statements of income before partner distributions and
benefits. The PricewaterhouseCoopers firms will retain most of
the liabilities accrued under these plans through the date of
our separation, including the retirement and post retirement
plans, for our partners and employees. The assets and
liabilities of these plans for our partners and for our
non-partner employees are not reflected in our combined balance
sheets, except the assets and liabilities of these plans for
non-partner employees in effect in Norway and Belgium, which
will be transferred to us on completion of our separation.
There are a limited number of benefit plans
established exclusively for partners and employees of the
management consulting and technology services businesses in the
PricewaterhouseCoopers network of firms that will be transferred
to us on completion of our separation, as reflected in our
unaudited pro forma combined financial statements. We will
establish new employee benefit plans for our partners and other
employees to be in effect after the concurrent Class A
common shares offering. To the extent required in the future
under applicable professional accounting standards, the assets,
liabilities and costs of these plans will be recognized in our
financial statements.
Income Taxes.
The majority of the management
consulting and technology services businesses being transferred
to us are currently part of entities that are organized as
partnerships. Under this structure, we have not historically
incurred significant corporate income tax since taxes related to
income earned by the partnership are the responsibility of the
individual partners. Therefore, our combined financial
statements do not reflect the current and deferred income tax
liabilities that we would have incurred as a corporation.
Historically, when we have incurred tax expense at an entity
level, we have reflected these expenses in selling, general and
administrative costs. Following our separation and our
transition to a public company, we will be subject to corporate
tax on our income and will record the related current and
deferred income tax assets or liabilities.
Partnership Income before Partner
Distributions.
Our combined
financial statements reflect the combination of the management
consulting and technology services businesses of partnerships
and corporations in the PricewaterhouseCoopers network of firms.
Historically, partners have received distributions of income
that include indistinguishable components of ownership and
compensation, rather than salaries. Accordingly, our combined
income statements before partner distributions and benefits do
not reflect any compensation for services rendered by our
partners. Upon the completion of our separation, partner
compensation will consist of both cash and equity components and
employee benefits under programs that will be adopted upon our
separation. The related costs generally will be reflected in our
income statement as cost of services.
Stock Options, Restricted Share Units and
Grants of Class A Common Shares.
At the time of the closing of the
concurrent Class A common shares offering, we will grant
restricted share units representing Class A common shares
to our partners. We also will grant Class A common shares,
instead of issuing restricted share units, to some of our newly
admitted partners. In addition, for regulatory reasons, we will
sell Class A common shares to our partners in Korea for
nominal consideration, in lieu of issuing an equivalent number
of Class A common shares, in connection with the transfer
to us of the management consulting and technology services
business in Korea. We will recognize compensation expense in the
first quarter of fiscal year 2003 of approximately
$117 million from these restricted share unit awards, which
will be fully vested at
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the closing of this offering, and these sales of
Class A common stock. See "Management— Partner
Compensation" for a description of the restricted share
unit awards. At the closing of the concurrent Class A
common shares offering and in the future, we plan to grant stock
options as incentives to our employees. We generally will not
recognize compensation expense upon the granting of these
options because the exercise price of these options will be
equal to the price of our Class A common shares at the date
of grant or because the options are not issued under a
compensation option plan. As we grant stock options, the number
of Class A common shares outstanding for purposes of
calculating our earnings per Class A common share will
increase.
Separation and Transaction Costs.
In connection with our separation,
we have incurred or will incur a number of one-time expenses in
the last two quarters of fiscal year 2002 and in fiscal years
2003 and 2004 relating to our transition to a public company. We
expect these costs to be in the range of $200 million to
$300 million, of which we anticipate approximately $16
million to be in fiscal year 2002. These costs relate to:
•
changing and marketing our new name, estimated to
    be between $100 million to $120 million,
•
creating separate systems and website
    development, excluding capitalized costs, estimated to be
    between $50 million to $100 million,
•
infrastructure development costs, estimated to be
    between $40 million to $60 million and
•
transfer taxes, estimated to be between
    $10 million to $20 million.
These amounts are based on estimates and
assumptions that management believes are reasonable. It is
possible, however, that total actual amounts may be higher or
lower.
Restructuring
Charge.
We currently are
undertaking a comprehensive review of our operations around the
world with a view toward improving our profitability and
business performance by aligning our available client service
and supporting resources more closely with market demand for our
services.
As a part of our restructuring plan, we have
committed to, and have communicated and begun to implement,
plans in the fourth quarter of fiscal year 2002 for headcount
reductions in our staff in several jurisdictions in Europe, the
Middle East and Africa. We expect to record a charge of
approximately $40 million in the fourth quarter of fiscal
year 2002 in connection with appropriately aligning our
resources. We expect that this charge will result in usage of
cash, which will be funded through an increase in amounts due to
the PricewaterhouseCoopers network of firms.
Also as a part of our restructuring plan, on a
global basis we expect to reduce the number of our partners and
other senior staff. We anticipate that we will make this
reduction through a combination of voluntary terminations,
including early retirement programs, and involuntary
terminations. This aspect of the plan will involve up to 200 of
our partners and other senior staff. We plan on completing these
steps in the first two quarters of fiscal year 2003. After this
part of our restructuring plan is finalized and we have
committed to, and have communicated and begun to implement, this
part of our plan, we expect to record a charge in the first
quarter of fiscal year 2003 estimated to be between
$60 million to $100 million. We expect that this
charge will result in usage of cash, which will be funded
through cash flows from operations.
On an ongoing basis, we will continue to align
our resources with market demand. As we continue to evaluate
opportunities to improve our operational effectiveness, we may
from time to time take additional charges.
Expanded Service Initiatives.
We plan to grow our application
management and business process management services. Contracts
for these services generally have longer terms, generate larger
fees and require significantly greater up-front capital and
infrastructure investments than other parts of our business.
These engagements also often have contingent fee arrangements
tied to cost savings or other performance measures. These
activities will result in greater amounts of financial risk to
us resulting from:
•
a more complex estimation process for recognizing
    revenues on contingent fee arrangements,
•
an increased risk of change to estimates of
    engagement profitability on longer-term contracts,
•
an increased credit risk associated with longer
    term contracts and
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•
an amount of loss possible from an unprofitable
    engagement due to the significance of up-front capitalized costs.
Our gross margin may decline as a result of the
lower margins that are customary in the outsourcing industry or
actions we take to increase market share.
Critical Accounting Policies and
Estimates
We believe our most critical accounting policies
or principles upon which significant judgments and estimates are
used in the preparation of our combined financial statements
include revenue recognition, the determination of allowance for
bad debts and unbilled receivables and goodwill impairment.
Revenue
Recognition.
We recognize revenues
as we perform services for our clients. Revenues are primarily
recognized based on hours worked and, where applicable,
reimbursables and subcontractor costs incurred. Periodically, we
review ongoing engagements to assess our estimates of expected
revenue per hour. If we determine that the estimated revenue per
hour has changed on an engagement, we adjust the revenues
recognized to date for the cumulative effect of the change. The
adjusted revenue per hour is then used to recognize revenues
over the remainder of the engagement. Circumstances that could
cause our revenue per hour to change include:
•
changes in estimates of time required to complete
    an engagement,
•
changes in the mix of staff expertise required
    for the engagement,
•
changes in or amendments to the engagement
    contract, and
•
changes in other circumstances.
Our long-term business process management
services contracts represent approximately 1%, 3% and 7% of our
revenues for the years ending June 30, 1999, 2000 and 2001,
respectively, and 7% and 8% for the nine months ended
March 31, 2001 and 2002, respectively. These revenues are
recognized as services are performed in accordance with the
engagement contracts. Where estimated cost of services are
expected to exceed estimated total revenues of the contract, we
recognize a loss at that time. Business process management
services contracts are generally large, multi-year duration
contracts.
We have a few contracts where an insignificant
amount of revenues is contingent on achievement of a milestone,
such as cost savings.
Allowance for Bad
Debts.
We record an allowance for
uncollectible accounts receivable based on their age and
specific identification. Generally, amounts greater than
270 days past due are fully reserved and balances greater
than 180 days past due are reserved at 50%. These
percentages are based on historical collection percentages and
bad debt experience. We also provide for allowances on specific
accounts receivable balances before they are greater than
180 days past due where such amounts are determined to be
uncollectible. These allowances are evaluated and adjusted as
more information about the ultimate collectability of the
receivable becomes known. Unbilled receivables are reserved when
collectability is doubtful on a specific identification basis.
If our hours charged and expenses are not paid by our clients,
future provisions against the collectability of those
receivables will be incurred. Receivables past due greater than
180 days and 270 days were $33 million and
$75 million, respectively, at June 30, 2001, and
$23 million and $68 million, respectively, at
March 31, 2002.
Goodwill Impairment.
We assess the impairment of
goodwill whenever events or significant changes in circumstances
indicate that the carrying value may not be recoverable. Factors
which we consider important that would cause us to perform an
impairment review include significant underperformance relative
to historical results or to forecasted operating results and
significant negative industry or economic trends. If we
determine that the carrying value of goodwill may not be
recoverable based on the existence of one of these factors, then
we will assess impairment based on a projection of undiscounted
future cash flows related to the business or businesses acquired
and measure the amount of impairment based on fair value. Net
goodwill was $118 million at March 31, 2002.
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Statement of Financial Accounting Standards
No. 142 will be effective for us as of July 1, 2002.
At that time, we will cease to amortize goodwill that exists as
of June 30, 2002. Goodwill amortization amounted to
$47 million, $55 million and $57 million for the
fiscal years ended June 30, 1999, 2000 and 2001,
respectively, and $43 million and $45 million for the nine
months ended March 31, 2001 and 2002, respectively. In lieu
of amortization, we will be required to perform an initial
impairment review of our goodwill as of July 1, 2002, and
an annual impairment review thereafter. We are in the process of
studying the effects of the application of SFAS 142, and we
cannot predict whether or not a material impairment charge will
be recorded.
Allocated
Costs.
We currently receive
services from various firms in the PricewaterhouseCoopers
network for which costs are incurred and accumulated and charged
to us and the other businesses conducted by the
PricewaterhouseCoopers firms using an allocation methodology.
These services include infrastructure and support services such
as occupancy, technology services, knowledge management, human
resources, training, finance and accounting information
services, marketing and business development, risk management
and practice protection and firm-wide management. Most of these
costs are included within our selling, general and
administrative expenses. Prior to July 1, 2001, our share
of these costs was allocated to us using various bases including
relative revenues, headcount, square footage and other measures.
Beginning July 1, 2001, we entered into
arrangements with the PricewaterhouseCoopers firms to allocate
these costs. Under these arrangements, we are charged for use or
consumption based on actual direct costs when available, plus
overhead costs. When actual direct costs are not available,
costs are allocated based on factors designed to estimate actual
costs. Other firm-wide infrastructure costs are allocated to us
primarily on the basis of headcount. The PricewaterhouseCoopers
firms will no longer charge us after our separation for the
costs of services we provide internally or costs no longer
relevant to our operations as a separate public company.
Different methodologies are acceptable for
allocating costs. We believe that the allocation methodologies
are reasonable. Utilizing a different methodology from the
method described above could result in different amounts of
allocated costs. We cannot practically estimate what these costs
would have been if we had operated independent of the
PricewaterhouseCoopers firms, including any costs associated
with obtaining services from unaffiliated entities.
Segments
Operating segments are defined as components of
an enterprise for which separate financial information is
regularly available and evaluated by the chief operating
decision maker, or decision making group, in deciding how to
allocate resources and in assessing performance. Our reportable
operating segments are the four geographic units described
above, which we refer to as theatres. Geographic theatres are
managed on the basis of revenues after deducting reimbursables
and subcontractor costs, or net revenues, because management
believes it is a better indicator of performance than revenues
including reimbursables and subcontractor costs. Generally, cost
of services for each theatre have similar characteristics and
are subject to the same drivers, pressures and challenges. Most
operating expenses apply to all segments. The relationship of
expenses to net revenues, however, may vary between segments.
Historically, we have tracked our segments using a financial
measure called contribution to profit. Contribution to profit is
based on operating income and excludes the cost of employees not
assigned to segments, centralized training program and
development costs and worldwide business development initiatives
as well as other infrastructure and firm-wide management costs
not allocated to segments.
Financial Statement Presentation
Revenues.
We
derive substantially all of our revenues from contracts for
management consulting and technology services that we perform
for our clients. We also derive a portion of our revenues that
is not significant from the resale of technology products to our
clients. Revenues are recognized as described above under
"—Critical Accounting Policies and Estimates—
Revenue Recognition." Reimbursables and subcontractor
costs, including those relating to travel and other
out-of-pocket expenses, and other similar
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third-party costs, such as the cost of hardware
and software resale, are included in revenues and an equivalent
amount of reimbursables and subcontractor costs are included in
our cost of services.
Each contract has different terms based on the
scope, deliverables and complexity of the engagement. Contracts
for business process management services are typically large
dollar, long duration contracts. Currently, most of our
contracts do not have incentive-based or other pricing terms
that condition our fee on our ability to deliver defined goals.
In the future, we plan to enter into engagements that include
new types of fee arrangements, such as arrangements where we
would receive a share of cost savings realized as a result of
our work. Revenue recognition under these contracts will
generally be based on the facts and circumstances of each
contract.
Most of our contracts are terminable by our
clients on short notice and without penalty. Normally, if a
client terminates a project, the client remains obligated to pay
for services performed and reimbursable expenses incurred by us
through to the date of termination.
Cost of Services.
Cost of services represents the
direct costs incurred to provide services to our clients.
Historically, these costs include compensation and benefits for
client service staff, other than our partners, and recruiting
and training costs. These costs also include staff training
materials, technology and technology support costs. After our
separation, compensation and the cost of benefits for our client
service partners also will be included in cost of services. The
primary drivers of cost of services are the number of our client
service staff and their compensation. We attempt to manage our
workforce to enable us to meet the anticipated level of demand
for our services.
Reimbursables and Subcontractor Costs.
Reimbursables are amounts charged
to clients for expenses we incur in delivering services to our
clients. Our client service staff are required to live away from
home for periods of time and primarily incur these expenses
during these periods, including expenses for travel,
accommodation, meals and other cost-of-living expenses.
Reimbursables also include facilities and equipment expenses
incurred for a particular engagement. Subcontractor costs are
incurred when we engage client service staff who are not
directly employed by us to help deliver services to our clients.
Gross Profit.
We define our gross profit as net
revenues less cost of services. Our gross profit is primarily a
function of hours charged to clients by our client service
staff, the average rate charged per hour of services provided,
the number of our client service staff and their related
compensation and benefits and our utilization rate. Our
utilization rate is the number of hours charged to clients by
our client service staff divided by the total available working
hours of all our client service staff. Historically, partner
distributions have not been included in cost of services.
Following our separation, however, compensation and the costs of
benefits for our partners will be included in cost of services.
The hourly rates we are able to charge for our
services are affected by a number of factors, including:
•
introduction of new services or products by us or
    our competitors,
•
general economic conditions,
•
our clients' perception of our ability to
    add value through our services and
•
competition, including pricing policies of our
    competitors.
Our utilization rates are also affected by
several factors, including:
•
our ability to transition employees from
    completed projects to new engagements,
•
our ability to forecast demand for our services
    and thereby maintain an appropriate number of client service
    staff to serve forecasted demand,
•
our ability to manage headcount turnover and
•
seasonal trends, primarily as a result of our
    hiring cycle and holiday and summer vacations.
Selling, General and Administrative
Expenses.
Selling, general and
administrative expenses are costs incurred in supporting our
client service staff as well as costs of marketing,
infrastructure, business
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management and other support. Historically, a
significant portion of selling, general and administrative
expenses have been represented by an allocation of costs
incurred by the PricewaterhouseCoopers firms in the coordination
and management of the global network.
Contribution to Profit.
For operating segment purposes, we
have historically measured our results based on net revenues
less costs of services and selling, general and administrative
costs, excluding allocated and other global costs.
Operating Income.
Operating income is income from
revenues after subtracting cost of services, selling, general
and administrative expenses and goodwill amortization.
Interest Income.
Interest income is interest earned
on cash and cash equivalents.
Interest Expense.
Interest expense is interest
incurred on our short and long-term external debt and
historically, interest incurred on debt allocated to us by
PricewaterhouseCoopers firms.
Other Income (Expense).
Other income
(expense) primarily consists of realized gains
(losses) on investment transactions.
Results of Operations
The following table sets forth the percentage of
revenues represented by items in our combined income statements
for the periods presented. Payments for partner distributions
and benefits are not included in any line item.
Nine Months
Year Ended
Ended
June 30,
March 31,
1999
2000
2001
2001
2002
Revenues
100
%
100
%
100
%
100
%
100
%
Cost of services
48
49
51
51
50
Reimbursables and subcontractor costs
19
19
20
20
21
Total cost of services
67
68
71
71
71
Selling, general and administrative expenses
22
22
21
21
19
Goodwill amortization
1
1
1
1
1
Operating income
10
9
7
7
9
Interest income
–
–
–
–
–
Interest expense
(1
)
(1
)
(1
)
(1
)
(1
)
Other income (expense)
–
–
–
–
–
Income before partner distributions and benefits
9
%
8
%
6
%
6
%
8
%
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We provide services in four geographic theatres.
The following table provides financial information for each of
these operating segments. Net revenues in the table below and
for purposes of discussion in our management's discussion
and analysis are revenues after deducting reimbursables and
subcontractor costs. Gross margin in the table below is gross
profit as a percentage of total net revenues. The
"Other" category in net revenues and in gross margin
includes net revenues, costs or other adjustments not allocated
to our operating segments.
Nine Months Ended
Fiscal Year Ended June 30,
March 31,
1999
2000
2001
2001
2002
(in thousands)
Net revenues:
Americas
$
2,758,050
$
3,253,338
$
3,116,301
$
2,393,721
$
1,957,882
EMEA
1,824,343
2,004,983
2,120,157
1,570,096
1,543,517
Asia Pacific
314,450
425,308
497,894
373,597
362,124
SOACAT
111,383
131,765
112,147
77,248
62,136
Other
9,585
(25,725
)
118,075
81,559
38,590
Total
$
5,017,811
$
5,789,669
$
5,964,574
$
4,496,221
$
3,964,249
Net revenues as a percentage of total net
    revenues:
Americas
55
%
56
%
52
%
53
%
49
%
EMEA
36
35
36
35
39
Asia Pacific
6
7
8
8
9
SOACAT
2
2
2
2
2
Other
1
—
2
2
1
Total
100
%
100
%
100
%
100
%
100
%
Gross profit:
Americas
$
1,177,293
$
1,411,941
$
1,031,039
$
845,742
$
732,786
EMEA
814,565
832,062
905,556
662,851
581,330
Asia Pacific
104,299
144,388
166,463
132,258
117,343
SOACAT
49,314
52,182
37,221
18,920
16,439
Other
(92,530
)
(152,057
)
(1,344
)
(55,382
)
(8,006
)
Total
$
2,052,941
$
2,288,516
$
2,138,935
$
1,604,389
$
1,439,892
Gross margin:
Americas
43
%
43
%
33
%
35
%
37
%
EMEA
45
41
43
42
38
Asia Pacific
33
34
33
35
32
SOACAT
44
40
33
24
26
Total gross margin:
41
%
40
%
36
%
36
%
36
%
Contribution to profit:
Americas
$
547,236
$
773,970
$
504,821
$
364,546
$
444,897
EMEA
418,512
438,713
458,131
352,558
288,089
Asia Pacific
21,854
36,809
41,582
38,783
33,634
SOACAT
15,996
15,676
14,496
1,334
726
$
1,003,598
$
1,265,168
$
1,019,030
$
757,221
$
767,346
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Nine
Months ended March 31, 2002, Compared to Nine Months ended
March 31, 2001
Revenues.
Revenues decreased by
$633 million or 11% from $5,638 million to
$5,005 million for the nine months ended March 31,
2001 and 2002, respectively. This decrease was primarily the
result of two factors. First, and most significant, was the
ongoing economic downturn that reduced demand for our services
and contributed to increased competition and a reduction in our
rates. The second principal factor was the increased difficulty
we have faced in obtaining new engagements due to heightened
focus on independence-related concerns. This increased focus is
a result of the new SEC auditor independence rules and the Enron
situation. Approximately 93% and 92% of our revenues were
recognized primarily on the basis of hours worked on engagements
for management consulting and technology services for the nine
months ended March 31, 2001 and 2002 respectively. For
these revenues, the number of hours charged by our client
service staff to clients decreased by 8% while our average rate
per hour decreased by approximately 4%. Reimbursables and
subcontractor costs as a percentage of revenues increased
marginally from 20% to 21% for the nine months ended
March 31, 2001 and 2002, respectively.
Net Revenues.
Our Americas theatre net revenues decreased by $436 million
or 18% from $2,394 million to $1,958 million for the
nine months ended March 31, 2001 and 2002, respectively.
The decrease in net revenues was primarily due to the impact of
the ongoing economic downturn and increased competition in the
market that caused our competitors and clients to put pressure
on our rates. In particular, demand for services from companies
whose results were dependent on the technology industry
continued to be depressed during the first nine months of fiscal
year 2002. Net revenues also decreased as clients audited by
PricewaterhouseCoopers firms limited the level of services they
would allow us to provide following the implementation of the
SEC's new auditor independence rules and the Enron
situation. Following the terrorist attack in the United States
on September 11, 2001, clients and potential clients
delayed or cancelled planned projects and cautiously initiated
new projects, which also contributed to the decrease in net
revenues. Our clients that were most affected by the
September 11 events include governments, banks, insurance
companies, investment management companies and companies that
provide consumer services, including airlines.
Our EMEA theatre net revenues decreased
$26 million or 2% from $1,570 million to
$1,544 million for the nine months ended March 31,
2001 and 2002, respectively. The decrease in net revenues was
primarily due to the continuing effects of the economic downturn
including reduced demand for our services, increased competition
in the market and pressure from clients to reduce costs. These
factors also have begun to negatively impact our rates.
Opportunities with banks, insurance companies and clients whose
operations are dependent on the technology sector of the economy
have decreased. We also continued to experience the effect of
increased focus on independence-related concerns as clients and
potential clients began to delay and cancel projects. New
engagements resulting from the continued restructuring of
governmental entities and companies who provide utility and
telecommunications services partially offset the reduction in
net revenues.
Our Asia Pacific theatre net revenues decreased
by $12 million or 3% from $374 million to
$362 million for the nine months ended March 31, 2001
and 2002, respectively. Net revenues decreased in most
countries, with the exception of Japan, generally as a result of
the economic slowdown and the impact on our rates of increased
competition. The net revenue decrease was partially offset by a
$5 million increase in net revenue from business process
management services engagements. Net revenue increases in the
Japanese market were driven primarily by the local need for
business change, excluding banks and insurance companies and
companies providing information and communication services where
opportunities were limited.
Our SOACAT theatre net revenues decreased by
$15 million or 19% from $77 million to
$62 million for the nine months ended March 31, 2001
and 2002, respectively. The political and economic crisis in
Argentina contributed to the impact of the economic downturn in
this theatre. Stability in the Brazilian market and contracts
for revenues in United States dollars with some clients helped
partially offset the effect of the troubled economic
environment. We ceased part of our business process management
services operations during fiscal year 2001, which also
contributed to the decrease in net revenues.
Cost of Services.
Cost of services decreased by
$368 million or 13% from $2,892 million to
$2,524 million for the nine months ended March 31,
2001 and 2002, respectively. Cost of services remained constant
as a percentage of net revenues at 64% for the nine months ended
March 31, 2001 and 2002. The
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decrease in cost of services reflects our efforts
to align our resources and cost structure with the level of
market demand. We reduced average client service headcount by
approximately 2,400 to 33,400 and compensation cost in some
theatres. We also reduced other costs related to our client
service staff. Specifically, training, recruitment and
technology costs decreased by approximately $115 million,
offsetting the increase in severance costs of $44 million.
Limiting our recruiting activities contributed to a reduction in
training and orientation costs. We also achieved efficiencies in
training costs with a strategic focus on delivering training
through the Internet and concentrating on local delivery of
training, as opposed to client service staff attending programs
held internationally.
Cost of services for our Americas theatre
decreased by $323 million or 21% from $1,548 million
to $1,225 million for the nine months ended March 31,
2001 and 2002, respectively. In response to the continued
economic downturn, we reduced average client service headcount
by 17% from approximately 16,700 to approximately 13,900 for the
nine months ended March 31, 2001 and 2002, respectively.
Cost of services included severance payments of $24 million
and $37 million for the nine months ended March 31, 2001
and 2002, respectively. On average, the client service staff in
the United States accepted a 5% reduction in base salary
beginning on September 1, 2001, reflecting our effort to
align our cost structure with the level of market demand. We
also limited our recruiting activities, which resulted in a
decline in training and orientation costs. We also achieved a
significant reduction in other costs related to our client
service staff through the introduction of increased controls,
reviews and cost efficiencies.
Cost of services for our EMEA theatre increased
by $56 million or 6% from $907 million to
$963 million for the nine months ended March 31, 2001
and 2002, respectively. Average client service headcount
decreased marginally from approximately 14,100 to approximately
13,800 for the nine months ended March 31, 2001 and 2002,
respectively. Severance payments of approximately
$29 million and, in the United Kingdom, an 8% increase in
the base salary of client service staff contributed to the
increase in cost of services. Excluding the severance payments,
cost of services would have increased by 3%. The increase in
cost of services was partially offset by reductions in other
costs. Consistent with the reduction in headcount, we also
limited recruiting and training activity. We achieved a
reduction in other costs related to our client service staff
through the introduction of increased controls, reviews and cost
efficiencies.
Cost of services for our Asia Pacific theatre
increased by $3 million from $242 million to
$245 million for the nine months ended March 31, 2001
and 2002, respectively. Increases in our business process
management services engagements primarily contributed to the
increase in average client service headcount of approximately 2%
from 4,400 to 4,500 for the nine months ended March 31, 2001 and
2002. For services other than business process management
services, we reduced costs through limiting recruiting and
training. Cost of services includes severance costs of
approximately $2 million for the nine months ended
March 31, 2002.
Cost of services for our SOACAT theatre decreased
by $12 million or 21% from $58 million to
$46 million for the nine months ended March 31, 2001
and 2002, respectively. Average client service headcount
remained constant at approximately 1,100 for the nine months
ended March 31, 2001 and 2002, respectively. The reduction
in cost of services was primarily due to the devaluation of
local currencies in some markets. Costs incurred in the initial
stages of business process management contracts limited the
extent of the decrease in cost of services.
Reimbursables and Subcontractor Costs.
Reimbursables and subcontractor
costs decreased by $101 million or 9% from
$1,142 million to $1,041 million for the nine months
ended March 31, 2001 and 2002, respectively. Reimbursables
and subcontractor costs increased marginally as a percentage of
revenues from 20% to 21% for the nine months ended
March 31, 2001 and 2002, respectively.
Gross Profit.
Gross profit decreased by
$164 million or 10% from $1,604 million to
$1,440 million for the nine months ended March 31,
2001 and 2002, respectively. Gross margin remained constant at
36% for the nine months ended March 31, 2001 and 2002. Our
utilization increased by 1% from the nine months ended
March 31, 2001 to the nine months ended March 31, 2002.
Our Americas theatre gross profit decreased by
$113 million or 13% from $846 million to
$733 million for the nine months ended March 31, 2001
and 2002, respectively. Gross margin increased for the Americas
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theatre from 35% for the nine months ended
March 31, 2001 to 37% for the nine months ended
March 31, 2002.
Our EMEA theatre gross profit decreased by
$82 million or 12% from $663 million to
$581 million for the nine months ended March 31, 2001
and 2002, respectively. Gross margin decreased for the EMEA
theatre from 42% to 38% for the nine months ended March 31,
2001, and March 31, 2002 respectively.
Our Asia Pacific theatre gross profit decreased
by $15 million or 11% from $132 million to
$117 million for the nine months ended March 31, 2001
and 2002, respectively. Gross margin decreased for the Asia
Pacific theatre from 35% to 32% for the nine months ended
March 31, 2001 and 2002, respectively.
Our SOACAT theatre gross profit decreased by
$3 million or 16% from $19 million to $16 million
for the nine months ended March 31, 2001 and 2002,
respectively. Gross margin increased for the SOACAT theatre from
24% to 26% for the nine months ended March 31, 2001,
compared to the nine months ended March 31, 2002.
Selling, General and Administrative
Expenses.
Selling, general and
administrative expense decreased by $191 million or 17% from
$1,157 million to $966 million for the nine months
ended March 31, 2001 and 2002, respectively. The decrease
was primarily the result of the cost efficiency program we
implemented as demand for our services fell and by the decrease
in total costs allocated to us from the PricewaterhouseCoopers
firms. The specific focus of our cost efficiency program was to
identify cost efficiencies and increase cost consciousness,
particularly in the current economic environment. Actions we
took to reduce costs included targeted reductions of non-client
service headcount, consolidating office facilities and more
focused marketing initiatives. The reduction in selling, general
and administrative expenses reflected a decrease of
$43 million in our expense for provision of doubtful
accounts receivable from $64 million to $21 million
for the nine months ended March 31, 2001 and 2002,
respectively. We had incurred increased expenses for the
provision for doubtful accounts receivable in our fiscal year
2001 due to the business difficulties experienced by electronic
commerce, other Internet related businesses and technology
businesses.
Prior to July 1, 2001, the
PricewaterhouseCoopers firms allocated expenses to us using
allocation methods that were based on relative revenues,
headcount, square footage and other measures. The
PricewaterhouseCoopers firms agreed to alter the allocation
structure beginning July 1, 2001, with charges for services
to be allocated according to use or consumption based on actual
direct costs, where available, plus overhead costs. The adoption
of the new allocation methodology for the nine months ended
March 31, 2002, decreased our cost of central services by
approximately $20 million. Our allocation during the nine
months ended March 31, 2002, also decreased by
approximately $93 million compared to the nine months ended
March 31, 2001. This decrease was the result of reductions
in overall costs incurred by the PricewaterhouseCoopers firms.
In addition, we now directly incur some costs previously
included in the overall costs allocated to us by the
PricewaterhouseCoopers firms, which also has contributed to the
decrease.
Contribution to
Profit.
Contribution to profit
increased by $10 million from $757 to $767 million for
the nine months ended March 31, 2001 and 2002,
respectively. Improvements in contribution to profit in the
Americas theatre was offset by a deterioration in contribution
to profit in all other theatres, resulting in a marginal
increase between the nine months ended March 31, 2001 and
2002. Contribution to profit for the nine months ended
March 31, 2002, includes the effect of the adoption of the
new allocation methodology on July 1, 2001.
Our Americas theatre contribution to profit
increased by $80 million or 22% from $365 million to
$445 million for the nine months ended March 31, 2001
and 2002, respectively. The improvement in contribution to
profit was primarily due to the results of our efforts to align
our cost structure with the level of market demand, including
costs related to our client service staff and selling, general
and administrative expenses.
Our EMEA theatre contribution to profit decreased
by $65 million or 18% from $353 million to
$288 million for the nine months ended March 31, 2001
and 2002, respectively. The decrease in contribution to profit
was primarily due to a general decrease in market demand which
caused our revenues to fall. The decline in contribution to
profit also was due to the severance costs associated with our
actions to align our cost
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structure with the changing level of market
demand and costs incurred as we prepared our infrastructure to
provide some services currently provided by the
PricewaterhouseCoopers firms.
Our Asia Pacific theatre contribution to profit
decreased by $5 million or 13% from $39 million to
$34 million for the nine months ended March 31, 2001
and 2002, respectively. Our contribution to profit has declined
as cost of services increased and net revenue decreased. Growth
in our business process management services engagements required
headcount increases, contributing to the relatively high level
of cost of services.
Our SOACAT theatre contribution to profit
decreased from $1 million to less than $1 million for
the nine months ended March 31, 2001 and 2002,
respectively. The change in contribution to profit is primarily
due to the devaluation of local currencies in some markets.
Operating Income.
Operating income increased by
$25 million or 6% from $404 million to
$429 million for the nine months ended March 31, 2001
and 2002, respectively. As a percentage of net revenues
operating income increased from 9% to 11% for the nine months
ended March 31, 2001 and 2002, respectively.
Interest Expense.
Interest expense decreased by
$11 million from $45 million to $34 million for the
nine months ended March 31, 2001 and 2002, respectively.
The decrease in interest expense was primarily due to a change
in the amount of debt allocated to us by the
PricewaterhouseCoopers firms and a decrease in the balance of
direct debt with third parties.
Fiscal Year
Ended June 30, 2001, Compared to Fiscal Year ended
June 30, 2000
Revenues.
Revenues increased by
$350 million or 5% from $7,131 million for fiscal year 2000
to $7,481 million for fiscal year 2001. For services other than
business process outsourcing, our revenues were approximately
flat due to the combined effect of a general economic slowdown
which reduced demand for our services, increased competition,
lost business opportunities from the failure of electronic
commerce businesses and technology businesses and audit clients
of PricewaterhouseCoopers firms reacting to the SEC's new
auditor independence rules. The revenue increase in fiscal year
2001 reflects an increase in revenues from our business process
management services. Approximately 97% and 93% of our revenues
were recognized primarily on the basis of hours worked on
engagements for management consulting and technology services
for fiscal years 2000 and 2001 respectively. For these revenues
the number of hours charged by our client service staff to
clients decreased by 3% while our average rate charged per hour
increased by approximately 1% from fiscal year 2000 to fiscal
year 2001. Reimbursables and subcontractor costs, as a
percentage of revenues increased marginally from 19% for fiscal
year 2000 to 20% for fiscal year 2001.
Net Revenues.
Our Americas theatre net revenues decreased by $137 million
or 4% from $3,253 million for fiscal year 2000 to
$3,116 million for fiscal year 2001. The economic slowdown
and the collapse of many electronic commerce businesses and
technology businesses significantly contributed to the decrease
in our net revenues. Net revenues also were lost as audit
clients of PricewaterhouseCoopers firms in the United States
limited the level of services they would allow us to provide
following the announcement of the SEC's new independence
rules. Increases in our business process management services
engagements partially offset the decrease in net revenues. This
growth was principally driven by a business process management
services contract with a multi-national company in the oil and
gas industry sector. In addition, increased net revenues from
client engagements requiring more experienced and senior client
service staff compared to resource requirements in fiscal year
2000 also helped to limit the decline in net revenues. For these
engagements net revenues increased primarily because we charge
higher average hourly rates for our more experienced and senior
client service staff.
Our EMEA theatre net revenues increased by
$115 million or 6% from $2,005 million for fiscal year
2000 to $2,120 million for fiscal year 2001. Net revenue
growth was assisted by business reorganizations, particularly by
government entities, including those providing defense services,
leading to increased demand for large-scale engagements in some
countries. The increase in revenues was also due to increases in
our business process management services engagements. This
growth was principally driven by a significant contract with a
client in the communications industry. Demand from companies
exploring and adopting electronic commerce business models also
contributed to net revenue growth. We also had continued success
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with our banking, insurance and other financial
institution clients in the first half of fiscal year 2001. As
the economy began to slow, however, a number of these projects
were cancelled or postponed.
Our Asia Pacific theatre net revenues increased
by $73 million or 17% from $425 million for fiscal
year 2000 to $498 million for fiscal year 2001. We
responded to market demands by increasing headcount and focusing
on our business development efforts to achieve net revenue
growth. Market demand was particularly strong in Japan as local
companies strove to operate more efficiently. Our services
focused on helping Japanese companies integrate existing and
emerging technologies. We also benefited from the expansion of
the market for services in China. Growth in our business process
outsourcing engagements also contributed to increased net
revenues.
Due to the initial effects of the economic
slowdown, our SOACAT theatre net revenues decreased by
$20 million or 15% from $132 million for fiscal year
2000 to $112 million for fiscal year 2001. This decrease
reflected the continued impact of the recession in Argentina and
the lack of sustained economic growth in our largest market in
this theatre, Brazil.
Cost of Services.
Cost of services increased by
$325 million or 9% from $3,501 million for fiscal year
2000 to $3,826 million for fiscal year 2001. Cost of services
increased as a percentage of net revenues from 60% for fiscal
year 2000 to 64% for fiscal year 2001. Cost of services
increased proportionally more than net revenues for fiscal year
2001 compared to fiscal year 2000, primarily due to costs
associated with growth in our business process outsourcing
engagements. For cost of services other than those associated
with our business process outsourcing engagements two factors
contributed to increases. The first factor was the costs of
severance programs. The second factor was an increase in base
salary in some geographies prior to the business failures in the
technology and electronic commerce business markets and the
economic slowdown. Average client service staff headcount
increased by 3,200 or 10% to 35,300 for fiscal year 2001. This
headcount increase was primarily due to growth in our business
process outsourcing engagements. Other costs related to our
client service staff, specifically recruitment and technology
costs, increased by $37 million. This increase was partially
offset by a $23 million decrease in training costs.
Cost of services for our Americas theatre
increased by $244 million or approximately 13% from
$1,841 million for fiscal year 2000 to $2,085 million
for fiscal year 2001. Cost of services increased proportionally
more than net revenues in our Americas theatre for fiscal year
2001 compared to fiscal year 2000 primarily due to growth in our
business process outsourcing engagements. These engagements are
generally conducted at low margins in their early stages of the
contracts. At the beginning of fiscal year 2001, prior to
failures of electronic commerce businesses and technology
companies, we increased our client service staff salaries in
response to competition for skilled employees. The base salary
increase averaged approximately 11%. As market conditions
changed, we reduced our workforce. Cost of services includes
severance payments of approximately $20 million and
$43 million for fiscal year 2000 and fiscal year 2001,
respectively. Average client service staff headcount increased
by 500 or 3% from approximately 15,300 to approximately 15,800
for fiscal year 2000 and fiscal year 2001, respectively. This
net increase included approximately 800 involuntary headcount
reductions in fiscal year 2000 and 1,800 involuntary reductions
in fiscal year 2001.
Cost of services for our EMEA theatre increased
by $41 million or 3% from $1,173 million for fiscal
year 2000 to $1,214 million for fiscal year 2001. Average
client service staff headcount increased approximately 18% from
approximately 11,700 to approximately 13,600 for fiscal year
2000 and fiscal year 2001, respectively. Base salary in some
markets increased in response to competition for skilled
employees and to align our employee compensation to levels
consistent with market rates.
Cost of services for our Asia Pacific theatre
increased by $51 million or 18% from $281 million for
fiscal year 2000 to $332 million for fiscal year 2001. The
increase in cost of services primarily was driven by the 14%
increase in average client service staff headcount from
approximately 4,200 in fiscal year 2000 to approximately 4,800
in fiscal year 2001. Cost of services increased proportionately
more than net revenues in our Asia Pacific theatre for fiscal
year 2001 compared to 2000 primarily due to growth in our
business process outsourcing engagements.
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Cost of services for our SOACAT theatre decreased
by $5 million or 6% from $80 million for fiscal year
2000 to $75 million fiscal year 2001. Average client
service staff headcount increased by 10% from approximately
1,000 to approximately 1,100 for fiscal year 2000 and fiscal
year 2001, respectively. Cost of services did not change
proportionately to headcount as the headcount reduction did not
occur until the third quarter of fiscal year 2001. Cost of
services includes severance payments of approximately
$3 million for fiscal year 2001.
Reimbursables and Subcontractor Costs.
Reimbursables and subcontractor
costs increased $175 million or 13% from
$1,341 million for fiscal year 2000 to $1,516 million
for fiscal year 2001. Reimbursables and subcontractor costs as a
percentage of revenues increased marginally from 19% to 20% from
fiscal year 2000 to fiscal year 2001.
Gross Profit.
Gross profit decreased by
$150 million or 7% from $2,289 million for fiscal year
2000 to $2,139 million for fiscal year 2001. Gross margin
decreased from 40% in fiscal year 2001 to 36% in fiscal year
2000. Our utilization decreased by 3% from fiscal year 2000 to
fiscal year 2001.
Our Americas theatre gross profit decreased by
$381 million or 27% from $1,412 million for fiscal
year 2000 to $1,031 million for fiscal year 2001. Gross
margin decreased for the Americas theatre from 43% in fiscal
year 2000 to 33% in fiscal year 2001.
Our EMEA theatre gross profit increased by
$74 million or 9% from $832 million in fiscal year
2000 to $906 million in fiscal year 2001. Gross margin
increased for the EMEA theatre from 41% for fiscal year 2000 to
43% for fiscal year 2001.
Our Asia Pacific theatre gross profit increased
by $22 million or 15% from $144 million for fiscal
year 2000 to $166 million for fiscal year 2001. Gross
margin decreased for the Asia Pacific theatre from 34% in fiscal
year 2000 to 33% in fiscal year 2001.
Our SOACAT theatre gross profit decreased by
$15 million or 29% from $52 million for fiscal year
2000 to $37 million for fiscal year 2001. Gross margin
decreased for the SOACAT theatre from 40% in fiscal year 2000 to
33% in fiscal year 2001.
Selling, General and Administrative
Expenses.
Selling, general and
administrative expenses decreased by $9 million from
$1,595 million for fiscal year 2000 to $1,586 million
for the fiscal year 2001. The decrease was primarily related to
a reduction in allocated costs, including risk management, and
new service development and marketing costs.
Risk management expenditures in fiscal year 2001
decreased to levels consistent with fiscal year 1999 as the
PricewaterhouseCoopers firms completed the implementation of the
auditor independence monitoring system, a firm-wide project that
began in fiscal year 2000. Technology costs also returned to
levels more consistent with fiscal year 1999 as we introduced
measures, including the use of global licensing agreements, to
help us efficiently use our worldwide technology investment. In
addition, projects in relation to the upgrade and streamlining
of systems and processes were completed.
New service development and marketing costs,
which had primarily focused on establishing and promoting our
electronic commerce business capabilities, decreased as the
demand for electronic commerce business services slowed. The
overall reduction in selling, general and administrative
expenses was partially offset by an increase of $69 million
in our expense for provision of doubtful accounts receivable
from $25 million to $94 million for fiscal year 2000 and
fiscal year 2001, respectively. This increase primarily related
to the growing number of electronic commerce business and
technology business failures.
Specific costs incurred on our behalf by the
PricewaterhouseCoopers network of firms also decreased due to
streamlining the process of international transfers of our
people and the operations of the PricewaterhouseCoopers network
of firms.
Contribution to
Profit.
Contribution to profit
decreased by $246 million or 19%, from $1,265 million
for fiscal year 2000 to $1,019 million for fiscal year
2001. Contribution to profit decreases in our Americas and
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SOACAT theatres were partially offset by
increases in contribution to profit in our EMEA and Asia Pacific
theatres.
Our Americas theatre contribution to profit
decreased by $269 million or 35%, from $774 million
for fiscal year 2000 to $505 million for fiscal year 2001.
The decrease in contribution to profit is primarily due to the
increase in cost of services, accompanying a decline in net
revenues. The increase in cost of services is primarily due to
costs associated with growth in our business process management
engagements.
Our EMEA theatre contribution to profit increased
by $19 million or 4%, from $439 million for fiscal
year 2000 to $458 million for fiscal year 2001. The
increase in contribution to profit is primarily due to the
combination of an increase in net revenues from business process
management engagements and a reduction in the expense of
services allocated to us by the PricewaterhouseCoopers firms.
Our Asia Pacific theatre contribution to profit
increased by $5 million or 14% from $37 million for
fiscal year 2000 to $42 million for fiscal year 2001. The
increase in contribution to profit is primarily due to the
increase in net revenues driven by market demand, that was
partially offset by the increase in costs from headcount growth.
Our SOACAT theatre contribution to profit
decreased by $2 million, or 13%, from $16 million for
fiscal year 2000 to $14 million for fiscal year 2001. The
recession in Argentina continues to have a negative effect on
our net revenues and has primarily contributed to the decline in
contribution to profit.
Operating Income.
Operating income decreased by
$143 million or 22% from $639 million for fiscal year
2000 to $496 million for fiscal year 2001. As a percentage
of net revenues, operating income decreased from 11% for fiscal
year 2000 to 8% for fiscal year 2001.
Interest Expense.
Interest expense increased by
$11 million or 23% from $48 million in fiscal year
2000 to $59 million in fiscal year 2001 over fiscal year
2000. The increase in interest expense primarily was caused by a
change in the debt balances allocated to us by the
PricewaterhouseCoopers network of firms, the balance of debt
with third parties and changes in our weighted average cost of
debt.
Fiscal
Year Ended June 30, 2000, Compared to Fiscal Year ended
June 30, 1999
Revenues.
Revenues increased $900 million or 14% from
$6,231 million for fiscal year 1999 to $7,131 million
for fiscal year 2000. The revenue increase was the result of the
increased demand for our services as clients, explored
electronic business and new technology and implemented new
systems to address technical issues associated with the year
2000 computer problem. The realization of our marketplace
strength resulting from the merger of the Coopers &
Lybrand and Price Waterhouse global networks also contributed to
revenue growth. Approximately 99% and 97% of our revenues for
fiscal years 1999 and 2000 respectively, were recognized on the
basis of hours worked on engagements for management consulting
and technology services. For these revenues the number of hours
charged by our professional staff to clients increased by 15%
while our average rate charged per hour decreased by 2%.
Reimbursables and subcontractor costs as a percentage of
revenues remained constant at 19% for fiscal year 1999 and
fiscal year 2000.
Net Revenues.
Our Americas theatre net revenues increased by $495 million
or 18% from $2,758 million for fiscal year 1999 to $3,253
million for fiscal year 2000. Net revenue growth was driven
primarily by increased services to clients in relation to
electronic commerce business and emerging technologies. Our
clients' preparation for year 2000 issues also contributed
to net revenue growth.
Our EMEA theatre net revenues increased by
$181 million or approximately 10% from $1,824 million
for fiscal year 1999 to $2,005 million for fiscal year
2000. Deregulation of the telecommunications and utilities
industries in some geographies, followed by significant merger
and acquisitions activity, created increased demand for services
and contributed to our net revenue growth. In addition,
privatization of governmental entities and restructuring
activity also contributed to net revenue growth. New product
offerings established around transformation and electronic
business combined with our focus on multi-national client
accounts helped us establish a base of contracts with companies
who provide consumer products. We began to benefit in
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fiscal year 2000 from our work in fiscal year
1999 of focusing on strategic accounts across all market
sectors, integrating and leveraging our account teams and the
development and offering of new products.
Our Asia Pacific theatre net revenues increased
by $111 million or 35% from $314 million for fiscal
year 1999 to $425 million for fiscal year 2000. Net revenue
growth was due to an increase in demand for our services in some
geographies as companies responded to economic reforms and
market restructuring.
Net revenues in our SOACAT theatre increased by
$21 million or 19% from $111 million for fiscal year
1999 to $132 million in fiscal year 2000. Net revenue
growth was primarily due to an increase in demand for our
services from the privatization of government and
semi-government entities in some geographies.
Cost of
Services.
Cost of services
increased $536 million or 18% from $2,965 million for
fiscal year 1999 to $3,501 million for fiscal year 2000.
Cost of services increased marginally as a percentage of net
revenues from 59% for fiscal year 1999 to 60% for fiscal year
2000. To meet strong market demand for management consulting and
technology services, we increased average client service staff
headcount by approximately 3,900 or 14% from approximately
28,200 to approximately 32,100 for fiscal year 1999 and fiscal
year 2000, respectively. Other costs related to our client
service staff, specifically technology support, increased by
$71 million. This increase was partially offset by a
$33 million decrease in recruiting costs due primarily to
changes in our recruiting process.
Cost of services for our Americas theatre
increased $260 million or 16% from $1,581 million for
fiscal year 1999 to $1,841 million for fiscal year 2000.
Average client service staff headcount increased by 8% from
approximately 13,400 to approximately 14,500 for fiscal year
1999 and fiscal year 2000, respectively. Base salaries increased
in some markets, in response to competition and demand for
skilled client service staff.
Cost of services for our EMEA theatre increased
by $164 million or 16% from $1,009 million for fiscal
year 1999 to $1,173 million for fiscal year 2000. Average
client service staff headcount increased by 27% from
approximately 9,200 to approximately 11,700 for fiscal year 1999
and fiscal year 2000, respectively. The increase in cost of
services was partially attributable to our severance costs of
approximately $12 million under a program designed to
realign our skills with forecast market demand. Responding to
market demands and competition for resources, we also increased
base salaries. Growth in our business process management
services engagements contributed to increased cost of services.
Cost of services for our Asia Pacific theatre
increased by $71 million or 34% from $210 million for
fiscal year 1999 to $281 million for fiscal year 2000.
Average client service staff headcount increased by 33% from
approximately 3,200 to approximately 4,200 for fiscal year 1999
and fiscal year 2000, respectively.
Cost of services for our SOACAT theatre increased
by $18 million or 29% from $62 million for fiscal year
1999 to $80 million for fiscal year 2000. The increase in
cost of services was due to growth in our business process
outsourcing engagements and increased headcount and the
associated compensation adjustments necessary to support an
increase in net revenues.
Reimbursables and Subcontractor
Costs.
Reimbursables and
subcontractor costs increased by $128 million or 11% from
$1,213 million for fiscal year 1999 to $1,341 million
for fiscal year 2000. Reimbursables and subcontractor costs
remained constant as a percentage of revenues at 19% for fiscal
year 1999 and fiscal year 2000.
Gross Profit.
Gross profit increased by $236 million or 11% from
$2,053 million for fiscal year 1999 to $2,289 million
for fiscal year 2000. Gross margin decreased marginally from 41%
for fiscal year 1999 to 40% for fiscal year 2000. Our
utilization was relatively constant for fiscal year 1999
compared to fiscal year 2000.
Our Americas theatre gross profit increased by
$235 million or 20% from $1,177 million for fiscal
year 1999 to $1,412 million for fiscal year 2000. Gross
margin remained constant for the Americas theatre at 43% for
fiscal year 1999 and for fiscal year 2000.
Our EMEA theatre gross profit increased by
$17 million or 2% from $815 million for fiscal year
1999 to $832 million for fiscal year 2000. Gross margin
decreased for the EMEA theatre from 45% in fiscal year 1999 to
41% in fiscal year 2000.
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Our Asia Pacific theatre gross profit increased
by $40 million or 38% from $104 million for fiscal
year 1999 to $144 million for fiscal year 2000. Gross
margin increased for the Asia Pacific theatre from 33% in fiscal
year 1999 to 34% in fiscal year 2000.
Our SOACAT theatre gross profit increased by
$3 million or 6% from $49 million for fiscal year 1999
to $52 million for fiscal year 2000. Gross margin decreased
for the SOACAT theatre from 44% to 40% for fiscal year 1999 and
fiscal year 2000, respectively.
Selling, General and Administrative
Expenses.
Selling, general and
administrative expense increased by $187 million or 13%
from $1,408 million for fiscal year 1999 to
$1,595 million for fiscal year 2000. The increase was
related primarily to new service development and marketing
costs, risk management and technology.
New service development and marketing costs
increased as we focused on developing and promoting our
electronic business capabilities through training and business
development and marketing initiatives. Risk management
expenditures increased as we began the implementation, primarily
in the United States, of the PricewaterhouseCoopers firm-wide
auditor independence monitoring system to manage our compliance
with the auditor independence rules of the SEC and other
professional and regulatory organizations. Our use of technology
expanded with the introduction of new applications and the
upgrade and streamlining of finance and human resources systems
and processes. This increase in activity required an increase in
the level of technology support for employees which contributed
to increased technology expenses. Establishing and refining the
infrastructure of the PricewaterhouseCoopers network of firms
was substantially completed in fiscal year 1999 and,
accordingly, these costs decreased in fiscal year 2000. In
addition, our advertising costs decreased significantly in
fiscal year 2000 as the substantial advertising that occurred in
fiscal year 1999 to establish the PricewaterhouseCoopers network
brand was completed.
Contribution to
Profit.
Contribution to profit
increased by $261 million or 26% from $1,004 million
for fiscal year 1999 to $1,265 million for fiscal year
2000. Contribution to profit increased or remained relatively
constant across all theatres.
Our Americas theatre contribution to profit
increased by $227 million or 41% from $547 million for
fiscal year 1999 to $774 million for fiscal year 2000.
Increased demand for services from clients in relation to
electronic business primarily drove net revenue growth and
contributed to the improvement in contribution to profit.
Our EMEA theatre contribution to profit increased
by $20 million or 5% from $419 million for fiscal year
1999 to $439 million for fiscal year 2000. An increase in
net revenues was driven by a number of factors, and primarily
contributed to the improvement in contribution to profit.
Our Asia Pacific theatre contribution to profit
increased by $15 million or 68% from $22 million for
fiscal year 1999 to $37 million for fiscal year 2000. The
increase in contribution to profit was primarily due to net
revenue growth. However, this increase was partially offset by
the increases in cost of services and expenses associated with
growth in our business process outsourcing engagements.
Our SOACAT theatre contribution to profit
remained constant at $16 million for fiscal year 1999 and
fiscal year 2000. Net revenue growth offset by increases in cost
of services primarily due to the increase in headcount necessary
to support growth in our business process management services
business resulted in our contribution to profit remaining almost
flat.
Operating
Income.
Operating income increased
by $41 million or 7% from $598 million for fiscal year
1999 to $639 million for fiscal year 2000. As a percentage
of net revenues, operating income decreased marginally from 12%
for fiscal year 1999 to 11% for fiscal year 2000.
Interest
Expense.
Interest expense
increased $13 million or 37% from $35 million for
fiscal year 1999 to $48 million for fiscal year 2000.
Movement in the balance of debt allocated to us by the
PricewaterhouseCoopers network of firms and the balance of debt
with third parties were the primary causes of the increase in
interest expense.
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Compiled Industry Financial
Information
Within our geographic theatres, we deliver
services to clients in five industry groups. The following table
provides financial information for each of our industry groups
accumulated from eleven countries or geographic areas comprising
approximately 86% of our total net revenues in fiscal year 2001.
The countries or geographic areas are the United States, the
United Kingdom, Germany, Canada, Japan, the Netherlands,
Australia, Spain, Switzerland, Belgium and East Asia. This
information has been compiled from data that we have not
maintained as part of our normal financial reporting processes
and has been prepared as supplemental information for the
purpose of the presentation set forth below. The data below is
presented under the following assumptions.
•
Net revenues have been assigned to industry
    groups based on the industry in which a client operates.
•
Net revenues not identifiable to an industry
    group have been included in Industry net revenues —
    Other.
•
Cost of services for client service staff has
    been allocated to industries based on weighted average
    compensation costs. Compensation costs were determined based on
    average compensation by employee level and hours worked.
    Non-compensation cost of services has been allocated based on
    relative hours charged to the engagement.
Because net revenues in these top eleven
countries and geographic areas represent approximately 86% of
our net revenues in fiscal year 2001 and cover the countries and
geographic areas in which we have our most significant
operations, we believe that the industry group data we have
presented is a fair representation of the approximate division
of our net revenues among industry groups for fiscal year 2001.
Gross margin in the table below is gross profit as a percentage
of total industry group net revenues for the twelve countries or
geographic areas.
Fiscal Year Ended
Nine Months Ended
June 30,
March 31,
2000
2001
2001
2002
(in thousands)
Industry net revenues:
Products
$
1,624,723
$
1,698,665
$
1,291,028
$
1,091,503
Government and Services
1,131,694
1,097,742
834,401
875,357
Financial Services
975,374
884,846
683,094
488,340
Information, Communications and Entertainment
699,126
691,990
527,854
447,246
Energy and Utilities
514,843
641,473
485,955
505,283
Other
217,144
108,207
91,585
61,412
Total
$
5,162,904
$
5,122,923
$
3,913,917
$
3,469,141
Industry net revenues as a percentage of
    industry group total net revenues:
Products
31
%
33
%
33
%
31
%
Government and Services
22
21
21
25
Financial Services
19
17
18
14
Information, Communications and Entertainment
14
14
14
13
Energy and Utilities
10
13
12
15
Other
4
2
2
2
Total
100
%
100
%
100
%
100
%
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Fiscal Year Ended
Nine Months Ended
June 30,
March 31,
2000
2001
2001
2002
(in thousands)
Industry gross profit:
Products
$
645,332
$
678,357
$
518,375
$
463,959
Government and Services
411,148
309,164
244,790
304,934
Financial Services
482,946
370,428
293,462
206,195
Information, Communications and Entertainment
313,000
180,381
133,427
132,117
Energy and Utilities
125,368
222,342
145,581
136,142
Other
172,566
70,246
67,384
22,562
Total
$
2,150,360
$
1,830,918
$
1,403,019
$
1,265,909
Industry gross margin:
Products
40
%
40
%
40
%
43
%
Government and Services
36
28
29
35
Financial Services
50
42
43
42
Information, Communications and Entertainment
45
26
25
30
Energy and Utilities
24
35
30
27
Total industry gross margin
42
%
36
%
36
%
36
%
Nine Months ended March 31, 2002,
Compared to Nine Months ended March 31, 2001
Net Revenues.
Our Products industry's net
revenues decreased by $199 million or 15% from $1,291 million to
$1,092 million for the nine months ended March 31, 2001 and
2002, respectively. The decrease in net revenues was principally
concentrated in the United States and the United Kingdom and was
primarily driven by the ongoing economic downturn. The decreased
demand for our services from clients in the technology industry
sector was particularly noticeable in the United States. Loss of
opportunities in the United States due to independence
constraints also negatively impacted net revenues. Growth in our
Products industry net revenues, primarily with pharmaceutical
companies in Japan and in some areas of Europe, somewhat offset
the decrease in net revenues.
Our Government and Services industry net revenues
increased by $41 million or 5% from $834 million to $875 million
for the nine months ended March 31, 2001 and 2002,
respectively. The increase in net revenues principally occurred
in the United Kingdom and some other areas of Europe, as we
obtained a significant amount of business from the restructuring
of governmental entities. Net revenues also increased in Japan
primarily due to strong market demand and, specifically,
increased demand from companies in the airline industry.
However, net revenue growth was partially depressed by a
decrease in Government and Services industry net revenues in the
United States and Canada.
Our Financial Services industry's net
revenues decreased by $195 million or 29% from $683 million to
$488 million for the nine months ended March 31, 2001 and
2002, respectively. The ongoing economic downturn and the
terrorist attack in the United States on September 11, 2001
have contributed to the decrease in net revenues in the
financial services industry worldwide. However the experience of
this negative impact was more significant in the United States,
the United Kingdom, Japan, Switzerland and Australia. Clients in
the capital markets industry sector, particularly in the United
Kingdom reduced the scale of their larger projects.
Our Information, Communication and Entertainment
industry's net revenues decreased by $81 million or 15%
from $528 million to $447 million for the nine months ended
March 31, 2001 and 2002, respectively. The decrease in net
revenues primarily occurred in the United States, Japan and to a
lesser extent in some areas of Europe and the Asia Pacific
region. The level of client spending and, consequently, demand
from clients in this industry group declined considerably during
the last half of fiscal year 2001 continuing into fiscal year
2002.
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Our Energy and Utilities industry's net
revenues increased by $19 million, or 4%, from $486 million to
$505 million for the nine months ended March 31, 2001 and
2002, respectively. Growth in Energy and Utility industry net
revenues was driven by our business process management services
engagements. Net revenues from those contracts increased by $29
million or 20%. For services other than our business process
management services, our growth rate was flat. We experienced
decreases in net revenues primarily in the United States,
however, this was offset by increases principally in some areas
of the Asia Pacific region and Europe.
Gross Profit.
Our Products industry's gross
profit decreased by $54 million or 10% from $518 million to $464
million for the nine months ended March 31, 2001 and 2002,
respectively. Our gross margin increased from 40% to 43% for the
nine months ended March 31, 2001 and 2002, respectively as
we reduced headcount to align our cost structure with the
reduced level of market demand for our services.
Our Government and Services industry's gross
profit increased by $60 million or 24% from $245 million to $305
million for the nine months ended March 31, 2001 and 2002,
respectively. Our gross margin increased from 29% to 35%. We
aligned our headcount with market demand and improved our
utilization rate on our government engagements in the United
States.
Our Financial Services industry's gross
profit decreased by $87 million or 30% from $293 million to $206
million for the nine months ended March 31, 2001 and 2002,
respectively. Our gross margin decreased from 43% to 42%.
Continuing pricing pressure in slower economic conditions
affected our gross margin. Pricing pressure on new projects
dropped the average rate per hour in the United States and
Canada.
Our Information, Communication and Entertainment
industry's gross profit decreased from $133 million to $132
million for the nine months ended March 31, 2001 and 2002,
respectively. Our gross margin increased from 25% to 30%. Our
gross margin improved primarily due to the management of
resources relative to changing levels of market demand.
Our Energy and Utilities Industry's gross
profit decreased by $10 million or 7% from
$146 million to $136 million for the nine months ended
March 31, 2001 and 2002, respectively. Our gross margin
decreased from 30% to 27%. Pricing pressure in some regions
affected our gross margin.
Year Ended June 30, 2001, Compared to
Year Ended June 30, 2000
Net Revenues.
Our Products industry's net
revenues increased by $74 million or 5% from
$1,625 million for fiscal year 2000 to $1,699 million
for fiscal year 2001. The increase in net revenues was
principally concentrated in the United Kingdom, Japan and the
United States and was generally the result of growth in
electronic business and internet consulting engagements. The
extent of the increase in net revenues was reduced by decreased
Products industry's net revenues primarily in Germany,
Canada and Australia. Currency devaluations in both Canada and
Australia offset the extent of this decrease.
Our Government and Services industry's net
revenues decreased by $34 million or 3% from
$1,132 million for fiscal year 2000 to $1,098 million
for fiscal year 2001. Increases in net revenues from business
process outsourcing engagements of $36 million or 476%
partially offset other decreases in net revenues. Net revenues
in the United States decreased primarily as a result of declines
in net revenues from the aviation sector. The extent of the
decrease was reduced by net revenue growth in the United
Kingdom, Canada, Belgium and some areas of the Asia Pacific
region.
Our Financial Services industry's net
revenues decreased by $90 million or 9% from
$975 million for fiscal year 2000 to $885 million for
fiscal year 2001. The decrease in net revenues was primarily
experienced in the United States and the United Kingdom as
demand for services significantly declined in the last half of
fiscal year 2001. The extent of this decrease was partially
offset by net revenue growth in Switzerland and Japan.
Our Information, Communications and Entertainment
industry's net revenues decreased by $7 million from
$699 million for fiscal year 2000 to $692 million for
fiscal year 2001. The almost flat net revenues included net
revenues from business process management services contracts
increasing by $144 million or
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approximately 610%. Lost opportunities from the
failure of electronic and technology businesses combined with
the general economic slowdown reduced net revenues. The impact
of those factors was primarily experienced in the United States,
the United Kingdom and the Netherlands.
Our Energy and Utilities industry's net
revenues increased by $126 million or 24% from
$515 million for fiscal year 2000 to $641 million for
fiscal year 2001. The increase in net revenues primarily
occurred in the United States and Japan and from engagements for
business process management services.
Gross Profit.
Our Products industry's gross
profit increased by $33 million or 5% from
$645 million for fiscal year 2000 to $678 million for
fiscal year 2001. Our gross margin remained constant at 40%.
Our Government and Services industry's gross
profit decreased by $102 million or 25% from
$411 million for fiscal year 2000 to $309 million for
fiscal year 2001. Our gross margin decreased from 36% to 28% as
our business in the United States was significantly less
profitable, with gross margins falling from 42% to 26%. Our
United States practice had excess headcount during fiscal year
2001 compared to fiscal year 2000 as demand for services fell.
Our Financial Service industry's gross
profit decreased by $113 million or 23% from
$483 million for fiscal year 2000 to $370 million for
fiscal year 2001. Our gross margin decreased from 50% to 42%.
This decline was experienced globally as our headcount exceeded
falling demand for our services.
Our Information, Communications and Entertainment
industry's gross profit decreased by $133 million or
42% from $313 million for fiscal year 2000 to
$180 million for fiscal year 2001. Our gross profit was
negatively impacted by increases in expenses for provision for
doubtful accounts receivable due to the failure of electronic
commerce and technology businesses. Consequently, our gross
margin decreased from 45% to 26%.
Our Energy and Utilities industry's gross
profit increased by $97 million or 78% from $125 million for
fiscal year 2000 to $222 million for fiscal year 2001. Our gross
margin as a percentage of net revenue increased from 24% to 35%
primarily due to an improvement in margins on our business
process management services contracts.
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Quarterly Results of Operations
The following tables present quarterly combined
financial information on a historical basis for each of our most
recent six fiscal quarters. The quarterly information contains
all adjustments, which consist of normal recurring adjustments
we believe are necessary to fairly present this information. The
operating results for any quarter are not necessarily indicative
of the results for any future period.
Three Months Ended
September 30,
December 31,
March 31,
June 30,
September 30,
December 31,
March 31,
2000
2000
2001
2001
2001
2001
2002
(in thousands)
Revenues
$
1,792,178
$
1,882,419
$
1,963,155
$
1,843,251
$
1,699,232
$
1,721,101
$
1,584,927
Cost of services*
962,376
964,744
964,712
933,807
895,672
854,114
774,571
Reimbursables and subcontractor costs
363,546
379,355
398,631
374,897
369,524
375,783
295,704
Total cost of services*
1,325,922
1,344,099
1,363,343
1,308,704
1,265,196
1,229,897
1,070,275
Selling, general and administrative expenses*
397,393
400,517
359,206
429,010
310,907
334,406
320,526
Goodwill amortization
13,933
14,422
14,641
14,011
13,521
15,157
16,139
Operating income*
54,930
123,381
225,965
91,526
109,608
141,641
177,987
Interest income
638
639
638
638
638
639
3,267
Interest expense
(13,638
)
(17,639
)
(13,638
)
(13,638
)
(10,489
)
(9,140
)
(13,987
)
Other income (expense)
1,824
(386
)
(9,349
)
(7,707
)
—
(29
)
127
Income before partner distributions and benefits*
$
43,754
$
105,995
$
203,616
$
70,819
$
99,757
$
133,111
$
167,394
*
Excludes payments for partner distributions and
    benefits.
We experience some seasonal variations in our
revenues primarily for two reasons. First, we normally expect
our net revenues, which are revenues after deducting
reimbursables and sub-contractor expenses, to be relatively
lower in the first and second quarters of the year compared to
our third and fourth quarter primarily due to increased vacation
and holiday hours in our Americas and EMEA theatres. Second, we
tend to book new engagements at particular times of the year,
such as during the first three months of each calendar year when
our clients' new budgets generally become available. For
these reasons, we do experience variability in our results of
operations from quarter to quarter.
The impact of the typical seasonal factors in the
second quarter of fiscal year 2001 was minimized due to net
revenue growth that continued through the third quarter of
fiscal year 2001, primarily driven by our clients continuing to
explore electronic business and new technology solutions. In the
fourth quarter of fiscal year 2001 and continuing into the first
quarter of fiscal year 2002 net revenues were negatively
impacted by the slowdown in economies worldwide reducing demand
for our services and contributing to increased competition.
Despite the negative impact of these non-seasonal factors
continuing to depress net revenues in some countries, net
revenues increased in the second quarter of fiscal year 2002.
This increase in net revenues was driven primarily by the growth
in engagements from the continued restructuring of governmental
entities in our EMEA theatre and the demand led by the local
need for business change in the Japanese market. In the third
quarter of fiscal year 2002, our net revenues reflected the
results of the combined negative impact of the ongoing economic
downturn and the heightened focus by our clients on
independence-related concerns.
Costs of services as a percentage of net revenues
in the first through fourth quarter of fiscal year 2001 was 67%,
64%, 62% and 64% and in the first, second and third quarters of
fiscal year 2002 was 67%, 63% and 60%, respectively. Our cost of
services as a percentage of net revenues is typically higher in
the first two quarters of our fiscal year due to the seasonal
amount of vacation and holiday hours in our Americas and EMEA
theatres.
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Gross margin as a percentage of net revenues in
the first through fourth quarter of fiscal year 2001 was 33%,
36%, 38% and 36% and in the first, second and third quarters of
fiscal year 2002, 33%, 37% and 40%, respectively.
In the third quarter of fiscal year 2001 and the
first, second and third quarters of fiscal year 2002 the
decrease in selling, general and administrative expenses
relative to the other quarters was primarily due to lower
expense for provision of doubtful accounts receivable and the
positive effect of the cost efficiency initiatives that we
implemented as demand for our services fell. In the fourth
quarter of fiscal year 2001, the increase in selling, general
and administrative expenses was primarily due to an increase in
our expense for provision of doubtful accounts receivable and an
increase in costs allocated to us from the
PricewaterhouseCoopers firms.
Operating income as a percentage of net revenues
in the first through fourth quarters of fiscal year 2001 was 4%,
8%, 14% and 6% and in the first, second and third quarters of
fiscal year 2002, 8%, 11% and 14%, respectively. The significant
increase in operating income as a percentage of net revenues in
the third quarter of fiscal year 2001 and the second and third
quarters of fiscal year 2002 was primarily due to the combined
impact of the decreases in cost of services as a percentage of
net revenues and reductions in selling, general and
administrative expenses.
Liquidity and Capital Resources
Our balance of cash and cash equivalents was
$115 million at March 31, 2002, an increase of
$5 million or 5% from June 30, 2001. The balance of
cash and cash equivalents was $74 million at June 30,
2000 and $110 million at June 30, 2001, an increase of
$36 million or 49%. These balances only reflect the
management consulting and technology services businesses in the
PricewaterhouseCoopers network that are operated through legal
entities that are separate and distinct from the other
PricewaterhouseCoopers businesses in the same country or region
or are in accounts that are used exclusively by management
consulting and technology services businesses in the
PricewaterhouseCoopers network. Historically, we have funded our
liquidity and capital requirements in most countries or regions
from positive cash flow generated by our operations, from the
cash flow generated by the other PricewaterhouseCoopers
businesses as well as borrowings under credit facilities,
including credit facilities of PricewaterhouseCoopers firms.
Net cash provided by operating activities totaled
$692 million and $620 million for the nine months
ended March 31, 2001 and 2002, respectively, and
$366 million, $583 million and $781 million for
fiscal year 1999, fiscal year 2000 and fiscal year 2001,
respectively. Net cash provided by operating activities is
driven by our ability to generate cash from our normal business
activities. Net cash provided by operating activities increased
between fiscal years primarily because of the reduced growth in
accounts receivable and unbilled receivables as our revenues
declined. Our net cash provided by operating activities
decreased between interim periods primarily due to an increase
in unbilled receivables and an increase in amounts due from the
PwC network.
Our investing activities have consisted primarily
of acquisitions of property and equipment. Net cash used in
purchase of property and equipment was $74 million and
$50 million for the nine months ended March 31, 2001
and 2002, respectively, and $51 million, $77 million
and $117 million for fiscal years 1999, 2000 and 2001,
respectively. We anticipate a cash outflow of approximately
$20 million and $147 million for capital expenditures
for the last quarter of fiscal year 2002, and fiscal year 2003,
respectively. We expect our capital expenditures in fiscal year
2003 to be used primarily for technology hardware and software
and other general corporate purposes.
Net cash used in financing activities totaled
$603 million and $566 million for the nine months
ended March 31, 2001 and 2002, respectively, and
$261 million, $446 million and $649 million for
fiscal year 1999, fiscal year 2000 and fiscal year 2001,
respectively. Historically, the most significant cash outflow
has been through the activity in the PwC Network investment
account, which totaled $635 million and $493 million
for the nine months ended March 31, 2001 and 2002,
respectively, and $486 million, $669 million and
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$452 million for fiscal year 1999, fiscal
year 2000 and fiscal year 2001, respectively. The cash flows
through the PwC Network investment account represent
distributions and other transactions with our partners as well
as settlement of liabilities among the various
PricewaterhouseCoopers firms. The PwC Network investment account
will be transferred to additional paid-in capital upon our
separation.
Our working capital was $419 million, $315
million and $252 million at June 30, 2000 and 2001 and
March 31, 2002, respectively. Changes in working capital
are affected by, among other things, the timing of distributions
to our partners and levels of business activities. Working
capital at March 31, 2002 reflects the effects of
distributions routinely held back from our partners until the
last quarter of the calendar year and the decrease in our
revenues.
The following are our obligations under long-term
debt agreements and operating leases for the next five fiscal
years and thereafter at June 30, 2001:
Payment Due by Period
(in thousands)
Two to three
Four to five
Contractual Obligation
Total
One year or less
years
years
Thereafter
Long-term debt
$
56,394
$
6,506
$
22,248
$
25,935
$
1,705
Operating leases
272,995
52,826
70,138
56,004
94,027
Total contractual cash obligations
329,389
59,332
92,386
81,939
95,732
Our allocated debt included in the balance sheet
caption "Amounts due to the PwC Network" was
$350 million and other allocated amounts generally
representing accounts payable, accrued payroll and other accrued
liabilities was $542 million at March 31, 2002.
Monday Finance SA will issue, as part of this
offering,
$             million
of           %
senior notes, or up to
$             million
if the underwriters exercise their over-allotment option in
full, which will be guaranteed by Monday SCA. These senior notes
will have a maturity date
of                     ,
2008. The senior notes will be remarketed in 2006, which may
result in a new interest rate. The proceeds of the remarketing
would be paid to Monday Ltd to settle the purchase contracts. If
the remarketing of the senior notes in 2006 is not successful or
cannot be completed, Monday Ltd will be required to foreclose on
the senior notes that are part of PEPS Units in full
satisfaction of the holder's obligations under the then
outstanding purchase contracts underlying the PEPS Units.
Holders of senior notes that are no longer part of PEPS Units
will have the right to put those senior notes to Monday Finance
SA, whose obligations are guaranteed by Monday SCA, at par
plus accrued and unpaid interest.
After the closing of the concurrent Class A
common shares offering, we will no longer receive additional
funding from the PricewaterhouseCoopers firms or have access to
additional borrowings under credit facilities of the
PricewaterhouseCoopers firms. We anticipate that the
PricewaterhouseCoopers network of firms will retain and thus not
transfer to us liabilities related to allocated debt. We
anticipate that amounts that will remain due to the
PricewaterhouseCoopers firms related to accounts payable,
accrued payroll and other accrued liabilities will be in the
range of $500 million to $600 million after our separation.
These liabilities will be settled in the normal course of our
operations.
After the closing of the concurrent Class A
common shares offering, our primary short term cash needs will
be for working capital, including the amounts described above
that will be due to the PricewaterhouseCoopers network of firms
for allocated accounts payables, accrued payroll and other
accrued liabilities, and for capital expenditures and debt
service. Based on our current business plan, including our
growth strategies, we believe that we have sufficient cash
resources, including our expected credit facilities, without the
proceeds of this offering to continue in operation for the
twelve months after separation and beyond. However, in
accordance with our current business plan we propose to use the
proceeds of the this offering and cash flows from operations to
meet our primary short term cash needs, instead of drawing on our
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expected credit facilities. In the first twelve
months following separation, the proceeds of this offering will
also be used to fund separation and transaction expenses. In
addition, we will use the proceeds of this offering to acquire
the management consulting and technology services business in
India and to purchase Monday SCA Class I common shares held
by the PricewaterhouseCoopers firm in Spain pursuant to the
terms of the applicable rollup agreements and to pay for
noncompete agreements with PricewaterhouseCoopers firms that are
not contributing management consulting and technology business
to us. If our cash flows from operations are less than we expect
or our cash requirements are greater than we expect, we may need
to use our expected credit facilities or incur additional debt
under our credit facilities described below or otherwise. Our
ability to fund our cash requirements will depend on our ability
to generate cash in the future, which is subject to general
economic, financial, competitive, legislative, regulatory and
other factors that are beyond our control. Although we currently
have no commitments or specific plans to do so, we may incur
additional debt for general corporate purposes in the near term,
such as for acquisitions.
We currently have no material acquisition
commitments other than the transaction commitments constituting
the separation, and no acquisition transactions are probable at
this time. We have, however, entered into a non-binding letter
agreement with Arthur Andersen LLP to extend offers of
employment to up to 11 Arthur Andersen partners and up to 270
Arthur Andersen employees that practice in one of Arthur
Andersen's technology implementation businesses in the
United States. In addition to the non-binding nature of the
letter agreement, our offers of employment are subject to a
number of important conditions, including acceptance of the
offers of employment by a sufficient number of key persons. We
have agreed, subject to these conditions and our ability to
terminate the letter agreement for any reason, to use
commercially reasonable efforts to complete the hirings as soon
as possible, but in any event no later than August 1, 2002.
In connection with the extension of these offers, we have agreed
to pay Arthur Andersen approximately $450,000 for each partner
we hire in exchange for a release of non-compete and
non-solicitation agreements that these partners previously have
executed in connection with their status as Arthur Andersen
partners and in exchange for a non-exclusive license to
intellectual property used by these partners in serving their
clients. We will not assume any of the liabilities of Arthur
Andersen relating to this practice or any other liability of
Arthur Andersen, such as those relating to the Enron situation.
We cannot assure you, however, that claims relating to Arthur
Andersen liabilities will not be made against us should we hire
these Arthur Andersen partners and employees.
For the foreseeable future beyond the first
twelve months after this offering, based on our current business
plan, we believe our expected cash flows from operations,
together with our expected credit facilities, will be sufficient
to meet our cash needs. As we pursue our growth initiatives,
develop new solution areas and service offerings and respond to
changes in the business environment and competitive pressures,
including acquiring businesses or technologies, we may need to
raise additional funds through public or private debt or equity
financings.
Following our separation, we expect to enter into
a revolving credit facility or facilities to be available as
necessary for working capital needs and other general corporate
purposes, including an alternative source of liquidity in the
event our cash generated from operations is lower than currently
expected. We have not yet entered into an agreement with respect
to any revolving credit facility. Our existing indebtedness is
unsecured and we currently expect that any credit facility will
be unsecured and have variable interest rates as well as
customary restrictions, covenants and events of default for
unsecured facilities of this type. We do not expect compliance
with the covenants to have a material adverse affect on our
operations. Assuming an average outstanding short-term debt
balance of $250 million, the midpoint of the maximum
available credit assuming a $500 million credit facility we
expect to enter into, a one percentage point increase in the
average interest rate on the obligations, also effective for an
entire year, would increase pre-tax interest expense, and reduce
pre-tax income, by $2.5 million. We anticipate that the
total size of the credit facility or facilities into which we
will enter will be $500 million. However, we do not
anticipate the need to draw on this facility during the twelve
months after our separation.
We are evaluating our capital structure and the
effect that our separation will have on our capital structure.
We anticipate that once our separation is complete, after
considering the amount of proceeds from
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this offering, the amounts due to the
PricewaterhouseCoopers network of firms, the deferred tax
effects of the concurrent offerings and the transformation of
our business from a partnership to a corporate structure and
other items, our capital structure at separation will be
sufficient to support our level of operations in the foreseeable
future.
As noted above, we may need additional funds to
satisfy our cash requirements, however, we cannot assure you
that these funds will be available on acceptable terms, or at
all. Future indebtedness may impose restrictions and covenants
on us and could limit our ability to respond to changing market
conditions, to fund unplanned capital investments or capitalize
on business opportunities. Our existing short and long-term
borrowings are not collateralized. We may be required, however,
to provide collateral on future borrowings.
Legal Proceedings
We believe there is no litigation pending that
could have, individually or in the aggregate, a material adverse
effect on our financial position, results of operations or cash
flows. Please see "Business — Legal
Proceedings" for a more detailed discussion of legal
proceedings.
Risk Management
Market Risk.
We are exposed to market risks
associated with changes in foreign currency exchange rates,
changes in interest rates and changes in marketable security
equity prices as well as credit risks from client trade
receivables. We are not engaged in the trading of financial
instruments, derivative instruments or currency. Accordingly,
our market risks arise in the ordinary course of business. Our
market risk management and strategy is regularly reported to our
senior executives.
Foreign Currency Exchange Risk.
We have foreign currency risk
arising through the translation of local currency financial
statements into our combined United States dollar financial
statements. This risk is not currently hedged. We may consider
hedging our investments in our foreign operations in the future
but have no current plans to do so. Historically, we have had
minimal exposure in the normal course of our business to changes
in foreign currency exchange where we settle payments among
firms in the PricewaterhouseCoopers network. We have entered
into some foreign currency transactions for contracts or debt
transactions that are based in a currency other than the local
currency of our business entering into the transactions or
United States dollars. Such transactions, however, have not been
significant to our results of operations. We typically have not
entered into significant foreign exchange hedge positions on
foreign currency transactions.
After our separation, we will be managing our
cash and the associated foreign currency risks on a centralized
basis. We are currently developing policies and procedures
addressing cash management, cross border expenses and
settlements, and use of derivatives that we will utilize after
our separation. We anticipate that we will use forward foreign
exchange contracts and purchases of foreign currency options to
selectively hedge our foreign currency transactions. The purpose
of such anticipated hedging activities will primarily be to
minimize the effect of foreign exchange rate movements on the
cash flows and expenses of our foreign operations.
If foreign currency exchange rates had
appreciated against the United States dollar by 10% at
March 31, 2002, the fair value of our net financial
instruments would have increased by approximately
$52 million. Conversely, if foreign currency exchange rates
had depreciated against the United States dollar by 10% at
March 31, 2002, the fair value of our net financial
instruments would have decreased by approximately
$43 million.
Interest Rate Risk.
The interest rate risk associated
with our borrowing and investing activities during the past
three fiscal years and for the nine months ended March 31,
2002, is not material to our results of operations. We have not
determined whether we will use derivative financial instruments
to alter interest rate characteristics in the future. As we
evaluate our capital structure, level of borrowings and
financial position as a public company, we will consider the
need for the use of derivative financial instruments.
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Equity Price Risk.
We have approximately
$14 million of marketable equity securities at
March 31, 2002 that are subject to market price volatility.
These securities are classified as available-for-sale securities
and are recorded in our combined balance sheet at fair value
with unrealized gains or losses reported within the PwC Network
investment account. We also hold private or restricted stock
investments. Our marketable equity securities and private and
restricted stock investments are subject to the risk of a
decline in the fair value of those investments below cost that
is considered to be other than temporary. In that case, we would
suffer a realized loss for the reduction in value of those
securities. At March 31, 2002, the value of our privately
held securities amounted to approximately $5 million.
Credit Risk.
In the ordinary course of
business, we are exposed to credit risk from clients, which is
managed by our trade credit policy and regular monitoring for
exposures. Credit risk from accounts receivable historically has
been limited due to the number of clients and broad geographic
diversification of our client base. We have exposure in some
foreign countries where the ability to transfer cash out of the
country is limited. We do not consider this exposure to be
significant to our results of operations.
Euro Conversion
On January 1, 1999, eleven of the fifteen
member countries of the European Union established fixed
conversion rates between their existing sovereign currencies,
the legacy currencies, and one common currency, the euro. The
participating countries adopted the euro as their common
currency on January 1, 1999. The euro is now traded on
currency exchanges and may be used in business transactions. On
January 1, 2002, the participating countries issued new
euro-denominated bills and coins. The legacy currencies are
being withdrawn and will cease to be legal tender effective
June 30, 2002. During the period from January 1, 1999,
to June 30, 2002, parties may use as legal tender either
the euro or a participating country's legacy currency as
legal tender.
We have analyzed the impact of the euro
conversion on our business in a number of areas, including our
information systems, service rates, finance and banking
resources, foreign currency management, contracts and accounting
and tax. We believe, based on information available at this
time, that the introduction of the euro has not materially
impacted our financial position or the results of our operations.
We believe that the introduction of the euro and
euro pricing creates a downward effect on engagement pricing in
the EMEA theatre as euro pricing is more transparent and
comparable between the countries. However, we have taken
advantage of euro selling opportunities from system
implementation and design projects that sometimes expand into
more complete systems software migration. Opportunities in
non-euro countries, including the United Kingdom, may present
significant future growth opportunities should those countries
decide to join the European Union.
Recently Issued Accounting
Pronouncements
In June 2001, the Financial Accounting Standards
Board approved Statements of Financial Accounting Standards
No. 141, "Business Combinations," and
No. 142, "Goodwill and Other Intangible Assets,"
which are effective for us July 1, 2001 and July 1,
2002, respectively. SFAS 141 requires that the purchase method
of accounting be used for all business combinations initiated
after June 30, 2001. Under SFAS 142, amortization of
goodwill will cease. Goodwill amortization amounted to
$47 million, $55 million and $57 million for the
fiscal years ended June 30, 1999, 2000 and 2001,
respectively, and $43 million and $45 million for the
nine months ended March 31, 2001 and 2002, respectively. In
lieu of amortization, we will be required to perform an initial
impairment review of goodwill as of July 1, 2002, and an
annual impairment review thereafter. We are in the process of
studying the effects of the application of SFAS 142 and cannot
predict at this time whether or not a material impairment charge
will be recorded.
In August 2001, the Financial Accounting
Standards Board issued Statement of Financial Accounting
Standard No. 144, "Accounting for the Impairment or
Disposal of Long-Lived Assets," which addresses financial
accounting and reporting for the impairment or disposal of
long-lived assets and supersedes SFAS No. 121,
"Accounting for the Impairment of Long-Lived Assets and for
Long-Lived Assets to be Disposed of," and the accounting
and reporting provisions of APB Opinion No. 30,
"Reporting the Results of Operations for a Disposal of a
Segment of a Business." SFAS 144 is effective for PwC
Consulting beginning July 1, 2002. We do not expect that
the adoption will have a significant impact on our results of
operations.
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BUSINESS
Overview
We are one of the world's leading providers
of management consulting and technology services. We help our
clients pursue and implement key strategic, process and
technology initiatives designed to enhance their growth,
profitability and competitiveness. We believe that one of our
core strengths is our ability to integrate our strategic advice
with our business and technology skills and services to help our
clients achieve measurable results.
Our clients include many of the world's
largest and most successful organizations. In fiscal year 2001,
we performed services generating revenues after deducting
reimbursables and subcontractor costs, which we refer to as net
revenues, in excess of $500,000 for approximately:
•
45% of the 2001
Fortune
Global 500,
•
74% of the 2001
Fortune
Global 50 and
•
82% of the 2001 European
Financial Times
50.
Our clients also include many of the world's
largest governments and their respective agencies. We also serve
smaller businesses, governmental agencies and other
organizations. Our net revenues for fiscal year 2001 were
approximately $6 billion, and our net revenues for the nine
month period ended March 31, 2002, were approximately
$4 billion. None of our client relationships are exclusive.
We operate globally with a consistent approach to
serving our clients, which allows us to execute complex
engagements on a global, regional and local basis. We achieve
our consistent approach through the application of our common
methodologies, training programs and our operating model
described below. Upon our separation, we expect to have
approximately 33,000 employees with offices in 52 countries
or territories, allowing us to combine our industry and service
area expertise with knowledge of a region's language,
people and culture.
We principally track and manage our business
according to the four geographic areas listed below, which we
refer to as theatres. Within these geographic theatres, each
member of our client service staff specializes in one of our
five industry groups, which include 20 industry sectors.
Each member of our client service staff also specializes in one
of seven core service areas, which we refer to as our solution
areas.
Geographic Theatres
Americas
EMEA
Asia Pacific
SOACAT
Canada
Mexico
United States
Austria
Belgium
Czech Republic
Denmark
Finland
France
Germany
Hungary
Iceland
India
Republic of Ireland
Israel
Italy
Kenya
Latvia
Lebanon
Lithuania
Netherlands
Nigeria
Norway
Pakistan
Poland
Portugal
Russia
South Africa
Spain
Sweden
Switzerland
Turkey
Ukraine
United Arab Emirates
United Kingdom
Australia
People's Republic of China
Hong Kong
Indonesia
Japan
Korea
Malaysia
New Zealand
Philippines
Singapore
Taiwan
Thailand
Argentina
Brazil
Chile
Colombia
Venezuela
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Industry Groups
Information,
Government
Financial
Communications
Energy
Products
and Services
Services
and Entertainment
and Utilities
Pharmaceuticals
Consumer Packaged Goods
Technology
Industrial Products
Automotive
Retail
Government
Defense
Aviation
Posts and  Surface
Transport
Banking
Capital Markets
Insurance
Investment Management
Communications
Entertainment and Media
Hospitality and Leisure
Oil and Gas
Utilities
Mining
Solution Areas
Develop
Deliver
Operate
Strategic Change
Customer Relationship Management
Financial Management
Human Capital
Supply Chain and Operations
Information Technology
Application Management and Business Process
    Management
We provide our clients with solutions to their
challenges by building teams that combine industry-specific
knowledge with expertise in our core solution areas.
Until our separation from the
PricewaterhouseCoopers network of firms, which will occur
immediately prior to the closing of the concurrent offerings,
our business will continue to be part of the management
consulting and technology services businesses of
PricewaterhouseCoopers firms around the world as described under
"Summary— Our Relationship with the
PricewaterhouseCoopers Network of Firms."
Auditor Independence Rules, the Enron
Situation and the Impact on Our Business
Because the PricewaterhouseCoopers network of
firms performs audit services for many of our current and
prospective clients and industry vendors, we are currently
restricted from performing services for some clients and
implementing some of our growth strategies. Some audit clients
have policies against using their audit firm to provide
significant non-audit services, such as management consulting
and information technology services. We also have been limited
in our ability to form alliances or joint ventures with, provide
outsourcing services to, or enter into contingent fee or
risk-sharing arrangements with audit clients of
PricewaterhouseCoopers firms. As of March 2002,
PricewaterhouseCoopers' audit clients included
approximately:
•
25% of the 2001
Fortune
United States 500,
•
24% of the companies listed on the New York Stock
    Exchange and
•
17% of the companies listed on the NASDAQ
    National Market.
In June 2000, the Securities and Exchange
Commission proposed new rules regarding auditor independence and
a rule requiring most public companies to disclose in their
annual proxy statements information such as fees related to the
non-audit services provided by their auditor during the most
recent fiscal year. Final rules based on this proposal became
effective in February 2001. Beginning in late 2000, we
began experiencing an increase in the number of clients that
either limit our opportunities to bid for new engagements or
prohibit us entirely from bidding for new engagements because
they are audited by a PricewaterhouseCoopers firm. In addition,
some of our existing engagements with PricewaterhouseCoopers
audit clients have been reduced in scope. These clients have
been primarily United States and foreign companies with
securities listed or traded on United States securities markets,
although we are now experiencing increased independence-related
constraints outside the United States as well.
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The recent high profile bankruptcy filing by the
Enron Corporation has increased further the attention boards of
directors and the marketplace pay to auditor independence. In
the Enron situation, governmental authorities and the media are
investigating whether the management consulting fees paid to
Arthur Andersen compromised its role as Enron's independent
auditor. The independence disclosure rules and the fallout from
the perceived conflicts of interest in the Enron situation are
significantly limiting our ability to compete. For example, of
our approximately 100 strategic clients, which are described
below, 38 clients are PricewaterhouseCoopers' audit
clients. Of these, as of March 2002, 21 clients have
informed us that they will limit our services or that they will
not be hiring us for new engagements while we are a part of the
PricewaterhouseCoopers network of firms due to
independence-related concerns. Services provided to these
21 clients represented approximately 8% of our net revenues
for fiscal year 2001. In addition, the PricewaterhouseCoopers
firms are gaining additional audit clients due to the
difficulties faced by Arthur Andersen. For example, as of
May 30, 2002, Arthur Andersen had lost over 600 public
reporting clients as a result of the Enron situation.
PricewaterhouseCoopers LLP, the United States firm, has gained
over 100 of these companies as audit clients. Accordingly, we
believe that our separation from the PricewaterhouseCoopers
network of firms as a result of the concurrent Class A
common shares offering will provide significant growth
opportunities for our business. Our ability to capitalize on
these opportunities will depend, among other things, on the
successful maintenance or, in some cases, reestablishment of our
relationships with these clients and obtaining new engagements
from these clients on a timely basis.
Industry Opportunity
In the last decade, the pace of change in the
global business environment has increased dramatically, creating
enormous challenges and opportunities for companies globally.
Numerous forces have driven these changes including:
•
the rapid development and implementation of new
    technologies,
•
the advent and commercialization of the Internet,
•
increasing globalization of markets and
•
a global economic expansion followed by a
    recession.
To enhance their competitive position in this
increasingly complex global marketplace, companies have been
forced to re-evaluate their businesses constantly, which has
increased the demand for management consulting and technology
services worldwide. We believe that these forces of change will
continue to accelerate in the next decade and increase the
demand for the integrated global consulting and technology
services that we offer.
While the slowing global economy has softened
current demand for consulting and technology services, we
believe businesses in most industries are under increasing
pressure to take proactive steps to change and differentiate
themselves to take advantage of any improvement in market
conditions. These changes include more efficient communication,
both internally with employees and externally with customers and
suppliers, more efficient management of supply chains and better
management of risks.
To help implement these changes, we believe
clients increasingly will demand that service providers deliver
strategic advice integrated with comprehensive technology
solutions and outsourcing capabilities that create lasting and
significant change throughout their organizations. To do this,
we believe that management consulting and technology services
providers must have the ability to:
•
deliver a wide range of services across the world,
•
stay ahead of industry and technology trends,
•
manage complexity across various industries,
    service offerings and geographies,
•
have access to capital to create market-ready
    solutions and
•
combine the right set of solutions to fit their
    clients' business strategies.
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We believe that service providers who bring these
capabilities to the marketplace will succeed in helping clients
capitalize on opportunities created by the changes in an
increasingly complex global marketplace.
Our Competitive Strengths
We develop and implement solutions for some of
the world's largest and most successful businesses and
organizations. We combine our extensive industry-specific and
solution area expertise with our knowledge of a region's
people, language and culture. We have relied on a number of
competitive strengths to achieve our success, including the
strengths described below.
Long-Term,
Deep Client Relationships
We have strong client relationships with senior
executives at many of the world's leading businesses and
organizations. Based on a survey of most of our strategic
account relationship partners in late 2001, we estimate that we
have served approximately 60% of our strategic clients for over
five years and approximately 40% of our strategic clients for
over ten years. We believe that part of our success in building
these enduring relationships is due to our flexible and
collaborative approach to engagements. We tailor our approach to
each client's needs and form integrated teams with our
client service staff to transfer knowledge to and enhance our
long-term relationships with our clients.
Account
Relationship Management
We believe that one of our strengths is our
account relationship management program, which assigns the
proper business development resources to each of our clients and
prospective clients. We implemented this program in 2000 to
enhance our client relationships in anticipation of our
separation from the PricewaterhouseCoopers network. For those
clients that we expect will provide us with a substantial amount
of revenues in the future, we dedicate at least one relationship
partner and also devote a considerable amount of other resources
to manage the relationship. We refer to these clients as our
strategic clients, of which we currently have approximately 100.
We also devote considerable business development resources to
other clients for whom we expect to provide significant services
in the future, which we refer to as our managed clients. We
currently have over 300 managed clients. We also allocate, as
appropriate, business development resources to our other
clients, whom we refer to as our portfolio clients, depending on
our expectations of future work. Many of these clients are
developing or emerging companies which we believe have high
potential needs for our services.
Integrated
Approach to Serving Clients
We believe that one of our core strengths is our
ability to integrate our strategic advice with our business and
technology skills and services to help our clients achieve
measurable results. This integrated approach allows us to use
our extensive industry and solution area expertise to create and
implement strategies and solutions that are designed to achieve
well-defined, specific objectives. We believe our approach
enhances the impact that our services have on our clients, while
strengthening our relationships with them.
High
Quality Alliance Relationships
We have strategic alliance relationships with
seven leading technology providers, which are relationships that
we believe add significant value to our solutions and to our
clients. Our alliances, including our strategic alliances, are
relationships with technology companies and companies in other
fields that extend our capabilities and service offerings. The
companies with which we have strategic alliances frequently
recognize us for the value we bring to our mutual clients and
customers. We currently have strategic alliance relationships
with Oracle Corporation, PeopleSoft, Inc., SAP AG and Siebel
Systems, Inc., which are software providers, Hewlett-Packard
Company and Sun Microsystems, Inc., which are hardware and
software providers, and Electronic Data Systems Corporation,
which is a provider of information technology services. Our
strategic alliances also provide us with important leads
regarding new projects and engagements. We believe that our
alliance relationships provide us with insight into emerging
technologies and solutions. In
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addition, we work with these companies to develop
new solutions and services. We also have a number of important
relationships, which we refer to as our managed alliances, that
are typically with technology providers whose products and
services have gained acceptance with our clients. Although we
have entered into agreements with most of the companies with
which we have strategic alliances, many aspects of our
relationships with these companies are not subject to written
agreements. The types of cooperative activities and agreements
we have with our alliance members are described below under
"Our Business—Alliances."
Diversification
across Geographic Theatres and Industries
We believe our diversification across geographic
theatres and industries will allow us to take advantage of new
opportunities in changing markets as well as more effectively
deploy our resources in response to industry and regional
cycles. For example, we estimate that none of our five industry
groups provided more than approximately 33% of our net revenues
for fiscal year 2001. In addition, our engagements are
well-balanced between our United States, Canada and Mexico
theatre and our Europe, the Middle East and Africa theatre, with
net revenues from these geographic theatres representing
approximately 52% and 36%, respectively, of our net revenues for
fiscal year 2001. We also have businesses in Asia Pacific and
South America and Central America, which we believe are areas
that offer us growth opportunities. In addition, we believe that
France and Italy provide us with an opportunity to grow our
European business.
Continuous
Innovation
We seek to continuously offer innovative
solutions that anticipate industry, business and technology
trends and that help businesses to become more competitive and
profitable. Internally, we foster a culture of collaboration,
continuous skill development and knowledge sharing among our
client service staff to create an atmosphere that stimulates
innovation. As a result, we believe our client service staff
have the flexibility, knowledge and skills to quickly adapt our
solutions to new market trends. We also have a formal process
for creating and marketing new offerings that solve specific
business problems, often across geographies, industries or
sectors. We call these offerings solution sets and believe they
help transform the way many of our clients do business. We
nurture these solution sets by devoting resources and assigning
development responsibilities to specific partners. We also
actively collaborate with our clients and use our alliance
relationships to help develop new approaches, strategies and
solutions in a cost-effective manner.
Strong
Focus on Skill Development and Knowledge Sharing
We believe the building, renewing and sharing of
knowledge, skills and experiences among our client service staff
across our global business is critical to continuous innovation
and the provision of consistent, quality services to our
clients. To perpetuate and foster this strength, we develop
common methodologies and frameworks, shared work product and
standardized training programs for key business processes that
may be replicated across geographies, industries and
engagements. We have extensive programs and technologies to
capture and share knowledge among our employees, such as our
dedicated knowledge management employees whose responsibilities
include identifying and disseminating examples of innovative
services and materials throughout our organization.
Approximately 190,000 documents are continuously available
to our client service staff globally. Approximately
1,000 new documents, on average, are added to these
knowledge sharing repositories each month. We are committed to
the on-going development of our client service staff. Our
investment in fiscal year 2001 included over 1,600,000 hours of
live training and over 1,000,000 hours of remote and self-paced
learning, including programs delivered through our
ecademie
online learning system, as well as thousands of hours of
informal training and knowledge sharing.
Experienced
and Motivated Management Team
Our global management team has an average of 18
years of experience in the management consulting and technology
services industry and an average of 14 years of tenure with a
PricewaterhouseCoopers or predecessor firm. Most of these team
members have long relationships with other team members, whether
through their current positions or as a result of working
together on engagements and other matters. After the closing of
the concurrent offerings, we will continue to use the title
"partner" and preserve our client
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relationship and engagement management practices
that support our collaborative, innovative culture. All of our
partners will continue to hold substantial equity in us
following the closing of the concurrent offerings, which will
help preserve the alignment of interests and sense of ownership
and reward that have been a part of our partnership culture.
Together, our partners, following the closing of the concurrent
offerings, will hold
approximately      % our Class A
common shares, calculated assuming all Monday SCA Class I
shares and all exchangeable shares issued by one of Monday
SCA's subsidiaries have been redeemed or exchanged into our
Class A common shares.
Our Growth Strategy
We are committed to becoming the global service
provider of choice for clients seeking to transform their
businesses to become more profitable and competitive. To
transform a business, we feel that we must help a client realize
significant and lasting change throughout its organization or
within an important functional area. To become the global
service provider of choice, we are pursuing the growth
initiatives described below.
Deliver
Comprehensive Solutions to Our Clients
We continuously look for opportunities to provide
our clients with comprehensive strategies and solutions,
particularly those that help transform businesses and
organizations. To accomplish this objective, we actively review
our clients and potential clients to determine where we believe
the most significant opportunities exist to provide these
services. We devote considerable resources to understand and
focus on this client base, which we view to be important to our
business. To maximize our ability to develop comprehensive
strategies and solutions to these clients, we deploy teams of
client service staff led by industry-oriented relationship
partners supported by colleagues with skills that span all of
our solution areas. We believe that our focus on increasing,
developing and penetrating this client base is important to our
growth as well as our ability to provide services that transform
our clients.
Pursue
the Benefits of Independence
Because of our affiliation with the auditing
practice of the PricewaterhouseCoopers network of firms, audit
clients of PricewaterhouseCoopers firms are increasingly
limiting or denying us opportunities to provide our services to
them. Following the closing of the concurrent Class A
common shares offering, we will be free to pursue the following
business strategies:
•
providing more services to existing and prior
    clients that have limited our services due to our ownership by
    the PricewaterhouseCoopers network of firms,
•
seeking opportunities at companies and
    organizations that are audited by a PricewaterhouseCoopers firm,
    but which are not recent or current clients due, in part, to our
    ownership by the PricewaterhouseCoopers network of firms,
•
forming joint ventures, subcontracting
    relationships and strategic alliances with leading technology
    service providers that are currently audited by a
    PricewaterhouseCoopers firm,
•
considering, where appropriate, new types of fee
    arrangements with clients that are audited by a
    PricewaterhouseCoopers firm, such as arrangements where we would
    receive a share of cost savings realized as a result of our work
    and
•
pursuing opportunities to provide outsourcing
    services to business and organizations that are audited by a
    PricewaterhouseCoopers firm.
We believe that our separation from the
PricewaterhouseCoopers network of firms will provide us with the
opportunity to grow our business and compete for engagements
with clients where we were previously constrained by
independence-related issues.
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Expand
Our Application Management and Business Process Management
Services
We believe organizations will increasingly seek a
service provider capable of operating, either through its own
resources or through alliances, significant parts of the
solution that the service provider has designed and implemented.
To meet this need, we plan to grow our existing application
management services business, where we perform ongoing
maintenance and development services for important software
applications, such as enterprise resource planning systems,
which control functions such as financial reporting and human
resources. We also plan to grow our business process management
services, which are services provided to a business or
organization in which entire processes, like accounting and
financial reporting systems, are administered and operated by a
service provider. According to a market research report
published by Gartner, Inc. in January 2002, the market for
business process management services relating to administration,
human resources and finance is expected to grow from
approximately $60 billion in 2001 to approximately
$111 billion in 2005, a compound annual growth rate of
16.6%. In addition, once free of independence-related
constraints, we will explore forming new strategic alliances
with key providers of capital-intensive technology outsourcing
services. Our goal is to provide our outsourcing services, which
are in the initial stages of development, in conjunction with
our other solutions, so that we provide a complete set of
integrated services and solutions to our clients, allowing us to
manage the entire lifecycle of a project.
Expand
Our Other Service Offerings
In addition to growing our outsourcing business,
we also intend to grow other existing service offerings. These
service offerings include the offerings described below.
•
Broaden and Deepen Our Systems Integration
    Services.
An important part of
    many of our business solutions is the use of systems integration
    services. Systems integration is the engineering of hardware,
    operating systems and software to perform specific tasks and
    functions. We believe that the integration of legacy computer
    systems and newer packaged software products with automated
    internal and external communication systems is critical to the
    success of many of our clients. The growth of our application
    management services, for example, will be enhanced by the
    expansion of our systems integration capabilities. We plan to
    grow these resources by attracting and retaining highly
    qualified client service staff and aggressively pursuing
    relationships with cost-effective data processing and software
    programming companies that complement our systems integration
    services and help us serve our clients.
•
Invest in Solution
    Sets.
Our business is principally
    about the delivery of value-creating ideas and solutions to our
    clients. We invest in our solution set program to develop these
    new ideas. When we identify a solution that has significant
    potential for our clients, particularly across multiple
    geographic theatres and industry sectors, we invest resources to
    cultivate the new solution, often in collaboration with our
    clients or through our alliance relationships. As concepts are
    developed, we create a new offering, or solution set, for
    distribution and use by the appropriate parts of our
    organization. For each solution set, there is a partner who has
    the responsibility to develop the offering through an organized
    development cycle and to market these solution sets across
    multiple geographic theatres and industry sectors. We believe
    our approach allows us to offer advanced solutions to our
    clients in a timely and cost-effective manner.
Improve
Operational Efficiency
We believe that our transition from a series of
legally separate firms within the PricewaterhouseCoopers network
of firms into a single integrated organization will provide us
with significant opportunities to reduce overlapping functions
and business processes, particularly in Europe, and outsource
functions that are not critical to our operations. We expect
that as we replace the services we receive under the transition
services agreements with the PricewaterhouseCoopers firms, we
will improve our ability to manage our costs more
comprehensively and rigorously. To achieve improved management
of our costs, we intend to use our expertise and resources to
further transform our internal business processes and implement
technology solutions to improve productivity and profitability.
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Increase
Our Alliance and Client Collaboration
We believe that our most successful engagements
are those that have a high degree of collaboration among our
clients, alliance relationships and us. Following the closing of
the concurrent Class A common shares offering, we plan to
continue these collaborative efforts to find cost-effective
solutions that may be deployed to multiple clients. We also
believe that separation from the PricewaterhouseCoopers network
of firms will increase our ability to collaborate effectively
with many of our clients and industry vendors.
Increase
Awareness of New Brand
We changed our legal name on June 10, 2002,
and will begin operating under our new brand upon our
separation. We intend to establish our new brand as a leading
management consulting and technology services brand. We expect
to invest in the promotion of our new brand through print,
broadcast and Internet advertising and other means of marketing.
In connection with these activities, we plan to spend
approximately $110 million in the aggregate in fiscal years
2002 and 2003. We believe that our branding strategy will help
to reinforce the public awareness of our separation from the
PricewaterhouseCoopers network of firms and lead to additional
new business opportunities.
Continue
to Develop Our Client Service Staff
Our most valuable assets are our client service
staff and the building, renewing and sharing of knowledge,
skills and experiences among them. We will continue to focus on
the development of our client service staff and the
implementation of a recruiting and training strategy designed to
allow us to realize our growth objectives. We seek to foster a
collegial and collaborative work environment that attracts the
highest quality client service staff, who are critical to
maintaining our core strength of continuous innovation. To
remain competitive, we are committed to providing attractive
compensation and long-term incentives for our employees. We also
will be increasing our skills and capabilities in developing
countries, such as China, which we believe will improve the
quality of our services while reducing our cost structure. We
also will devote significant resources to training, knowledge
management and creating reusable methodologies. Our goal is to
maintain a flexible, motivated work force with the capacity to
support our other growth strategies.
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Our Services
We build our engagement teams by deploying client
service staff with the relevant industry background and solution
area expertise. To cultivate industry expertise, we structure
our business around five industry groups that cover 20 distinct
industry sectors. Our client service staff also develops
experience in one of our seven solution areas, which represent
the core of our client services. As more fully described below,
we divide these seven solution areas into three broad
categories: develop, deliver and operate. The discussion in this
section describes the services we provide. The chart below shows
how we structure our business by geographic theatre and into
industry groups and solution areas categories.
Geographic
Theatres
While we track and manage our business according
to the four geographic theatres listed below, we operate
globally with a consistent approach to serving our clients. We
achieve our consistent approach through the application of
common methodologies and training programs and our operating
model. We believe that a local presence allows us to understand
the challenges and opportunities that are unique to particular
regions and countries. We are able to serve our clients globally
through our global account management structure and
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our relationship partners. Within geographic
theatres, we have listed the countries in which we currently
have offices.
Americas
EMEA
Asia Pacific
SOACAT
Canada
Mexico
United States
Austria
Belgium
Czech Republic
Denmark
Finland
France
Germany
Hungary
Iceland
India
Republic of Ireland
Israel
Italy
Kenya
Latvia
Lebanon
Lithuania
Netherlands
Nigeria
Norway
Pakistan
Poland
Portugal
Russia
South Africa
Spain
Sweden
Switzerland
Turkey
Ukraine
United Arab Emirates
United Kingdom
Australia
People's Republic of China
Hong Kong
Indonesia
Japan
Korea
Malaysia
New Zealand
Philippines
Singapore
Taiwan
Thailand
Argentina
Brazil
Chile
Colombia
Venezuela
Each of our geographic theatres is organized into
our five industry groups and seven solution areas. Within each
of these theatres, we have industry leaders and solution area
leaders who report both to the head of the geographic theatre
and also to the global industry or solution area leaders. We
believe this approach allows us to balance the need for a global
understanding of our business with the efficiency and cost
management advantages that result from geographic accountability.
Americas
Our Americas theatre is comprised of the United
States, Canada and Mexico. The Americas theatre accounted for
approximately 52% of our net revenues for fiscal year 2001 and
49% of our net revenues for the nine-month period ended
March 31, 2002. As of March 2002, we had approximately
14,000 partners and employees in this theatre. Our business in
this theatre has been adversely impacted by the issues
surrounding auditor independence and the Enron situation. The
Americas theatre has also been negatively affected by the
general downturn in the economy and the decline in technology
spending that accelerated as a result of the events of
September 11, 2001. As a result of economic conditions, our
clients have focused on customer retention and improving
profitability. Because of these challenges, we believe our
clients expect innovation and the ability to increase value as a
result of their investment in information technology.
We serve a wide variety of clients in our
Americas theatre across all of our industry segments. Our
largest clients, in terms of net revenues for fiscal year 2001,
include many well-known names, such as the following:
• American Express Company
• Chevron Texaco
• Citigroup, Inc.
• General Motors Corporation
• Hewlett-Packard Company
• J.C. Penney Company
• Johnson & Johnson
• United States Department of Defense
• Verizon
• The Walt Disney Company
We provide a wide variety of services to our
clients in this theatre, which include services from all of our
solution areas. Pursuant to our goal of becoming the global
service provider of choice for clients seeking to transform
their businesses, we seek engagements that involve helping
clients realize significant and lasting change.
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EMEA
Our EMEA theatre is comprised of countries in
Europe, the Middle East and Africa. The EMEA theatre accounted
for approximately 36% of our net revenues for fiscal year 2001
and 39% of our net revenues for the nine-month period ended
March 31, 2002. As of March 2002, we had approximately
15,000 partners and employees in this theatre. The EMEA theatre
has been negatively affected by economic conditions in Europe
and, to a lesser extent, by auditor independence concerns. A key
factor impacting our business in this theatre is Europe's
continuing development towards an economic common market and the
corresponding regulatory changes and increasing competitive
forces facing our clients. Governments also are facing new
challenges caused by privatization and increased outsourcing of
services to private companies. In response to these challenges,
our clients increasingly are focused on reducing and controlling
costs. We believe that the wide scope of our services will allow
us to assist clients with these needs. We also believe that the
rapid development of the economies of Eastern Europe and Russia
will provide us with an opportunity for the development of
low-cost data processing and software programming resources in
those countries.
We serve a wide variety of clients in our EMEA
theatre across all of our industry segments. Our largest
clients, in terms of net revenues for fiscal year 2001, include
many well-known names, such as the following:
• Allianz AG
• Cadbury Schweppes
• ExxonMobil
• Fiat
• France Telecom
• GlaxoSmithKline plc
• Lloyds TSB
• Telefonica S.A.
• UBS AG
• UK Ministry of Defence
We believe that we develop strong relationships
with many of our clients by understanding their business needs
and by helping them to address these needs by providing a wide
range of management consulting and technology services from all
of our solution areas.
Asia
Pacific
Our Asia Pacific theatre is comprised of Japan,
Australia, Korea, China, New Zealand and other countries in East
Asia. The Asia Pacific theatre accounted for approximately 8% of
our fiscal year 2001 net revenues and 9% of our net revenues for
the nine-month period ended March 31, 2002. As of March
2002, we had approximately 5,000 partners and employees in this
theatre. While we have offices in all major commercial centers
in this region, our practice in this theatre is currently
concentrated in Japan and Australia. As a result of China's
recent entry into the World Trade Organization, we view the Asia
Pacific theatre as an emerging market that presents a number of
growth opportunities for our business. Additionally, we are
expanding our presence in selected countries which we view as
providing us access to low cost data processing and software
programming capabilities.
Our clients in this theatre include businesses of
global multinational corporations as well as significant
regional, national and governmental organizations. We believe we
help our clients by bringing both a global understanding of
business processes and procedures and a deep understanding of
issues and solutions facing organizations operating in Asia
Pacific. Some of our largest clients in this theatre, in terms
of net revenues for fiscal year 2001, include Sony, Toyota and
Telstra.
SOACAT
Our SOACAT theatre is comprised of countries in
South America and Central America. The SOACAT theatre accounted
for approximately 2% of net revenues for both fiscal year 2001
and the nine-month period ended March 31, 2002. As of March
2002, we had approximately 1,000 partners and employees in this
theatre. Our practice in this theatre had been adversely
affected by the Argentine economic crisis and by
independence-related issues, especially in Brazil. We continue
to believe, however, that there will be strategic opportunities
for us in this theatre following our separation, including the
development of low cost data processing and software programming
capabilities.
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Our largest clients, in terms of net revenues for
fiscal year 2001, in this theatre include businesses of global
multinational corporations, such as Zurich Financial and Sony,
as well as significant regional, national and governmental
organizations, such as Telecom Argentina, Souza Cruz and Ambev.
We believe we help our clients by bringing both a global
understanding of business processes and procedures and a deep
understanding of issues and solutions facing organizations
operating in South America and Central America.
Industry
Groups
Within each of our geographic theatres, we have
five industry groups, which include 20 industry sectors. Not all
sectors are represented in every theatre. The following table
sets forth a list of our industry groups and sectors.
Information,
Government
Financial
Communications
Energy
Products
and Services
Services
and Entertainment
and Utilities
Pharmaceuticals
Consumer Packaged Goods
Technology
Industrial Products
Automotive
Retail
Government
Defense
Aviation
Posts and Surface
Transport
Banking
Capital Markets
Insurance
Investment Management
Communications
Entertainment and Media
Hospitality and Leisure
Oil and Gas
Utilities
Mining
For each industry group, we provide net revenue
information for fiscal year 2001 and the nine months ended
March 31, 2002. This information has been derived from
eleven countries or geographic areas comprising
approximately 86% of our total net revenue in fiscal year 2001.
The countries or geographic areas are the United States, the
United Kingdom, Germany, Canada, Japan, the Netherlands,
Australia, Spain, Switzerland, Belgium and East Asia. Please see
"Management's Discussion and Analysis of Financial
Condition and Results of Operations — Results of
Operations" for a more detailed description of the
procedures we used to derive net revenue for our industry groups.
Products
In our Products industry group, we serve
companies that are principally involved in the manufacture and
distribution of products and related services. We subdivide this
industry group into the six industry sectors described below. We
share resources, knowledge and experiences among our teams in
each of these six industry sectors, allowing us to develop and
market solutions to clients in a timely and cost-effective
manner. While each of these sectors has unique issues, we
believe they share common market challenges including:
•
achieving revenue growth,
•
collaborating with key customers and suppliers to
    improve supply chain efficiency,
•
understanding customers and their needs,
•
creating and effectively using new Internet-based
    business operations,
•
retaining employees and reaching out to
    communities and
•
building internally or outsourcing important
    functions to support critical operations.
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The following table sets forth industry net
revenues and percentage of total industry net revenues for the
twelve countries and geographic areas described above and a
representative list of clients for the periods indicated for the
Products industry group. The clients listed below are some of
our largest clients in this industry group, in terms of net
revenues, for fiscal year 2001.
Products Industry Group
Year Ended
Nine Months Ended
June 30, 2001
March 31, 2002
Industry Net Revenues:
$
1,698,665
$
1,091,503
Percent of Total Industry Net
    Revenues:
33
%
31
%
Examples of Clients in Fiscal Year 2001
Aventis Pharma AG
Bristol-Myers Squibb
Cadbury Schweppes
Compaq Computer
Diageo Plc
General Motors Corporation
The Gillette Company
GlaxoSmithKline plc
Hewlett-Packard Company
J.C. Penney Company
Johnson & Johnson
Nestlé SA
Nike, Inc.
Novartis Pharma AG
Pfizer, Inc.
Raytheon Company
Siemens AG
Tetra Pak International SA
Toyota
Unilever
________________________________________________________________________________
Pharmaceuticals.
In our pharmaceuticals industry
sector, we serve pharmaceutical, life science, biotechnology,
and healthcare products companies that manufacture products for
the prevention and treatment of medical conditions. In fiscal
year 2001, we served 13 of the 14 pharmaceutical companies in
the 2001
Fortune
Global 500. The pharmaceutical industry
is a highly regulated and global industry that we believe will
face continued consolidation. To effectively compete in this
environment, we believe pharmaceutical companies need to achieve
two objectives: improve the efficiency and output of their
extensive research and development activities and improve their
sales and marketing processes. We have developed
industry-specific solutions to help our clients achieve these
objectives. One example of these solutions is
GXPharma,
a
software program that helps clients manage regulatory compliance
throughout the research and development cycle. Another solution,
the
Clinical Information Exchange,
helps clients manage
clinical trial data and decision making during this cycle. We
also are working with our clients to expand their use of
electronic business opportunities and usage of the Internet. For
example, in fiscal year 2001, we were engaged by a group of
leading pharmaceutical and healthcare products companies to
undertake a study called
Global Healthcare Exchange,
a
feasibility study for an industry-wide electronic marketplace.
Consumer Packaged Goods.
In our consumer packaged goods
industry sector, we serve a variety of companies including food,
beverage and tobacco companies as well as household products,
cosmetics and apparel companies. In fiscal year 2001, we served
23 of the 34 consumer packaged goods companies in the 2001
Fortune
Global 500. We believe that the consumer packaged
goods industry faces low growth, a better informed, more
demanding customer and pressure on well-known brands by private
label and other distributors. We also believe that this sector
is undergoing continued consolidation and globalization, and is
facing increased cost pressure from large retailers. We help our
clients remain competitive by increasing the efficiency of their
operations through implementing technology that allows them to
have a global view of their operations and to better collaborate
and integrate with their suppliers and customers. For example,
Procter & Gamble and we jointly designed, developed and
implemented an electronic business solution to facilitate
customer communications and use of the Internet for sales and
marketing. Our solution included the development of an Internet
site that allows existing customers to review and manage their
accounts and the consolidation of multiple Procter & Gamble
Internet sites to eliminate redundant sales efforts. We also
help develop unique solutions to industry challenges. For
example, we are a sponsor of the Auto ID effort, which is a new
technology based on a radio-frequency computer chip that allows
products to be tracked more efficiently.
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Technology Products.
In our technology products
industry sector, we serve manufacturers of computers,
semiconductors, peripherals, such as printers, and networking
equipment. In fiscal year 2001, we served 25 of the 30
technology companies in the 2001
Fortune
Global 500. We
believe that networked and collaborative models for business
operations will replace stand-alone business organizations.
These are business models that allow companies to have greater
integration with suppliers and customers. Other trends in the
industry that we believe are occurring include the increasing
pace of innovation and simpler communications-based tools
replacing many functions of the personal computer. We also see
an increasing focus on customer service and customization and
development of business-to-business connections. We help our
clients recognize new product and customer opportunities,
identify important trading members and define new operating
models. We also work with companies to develop their electronic
business distribution methods, improve their ability to respond
to changes in the market and operate using a networking model of
business.
Industrial Products.
In our industrial products
industry sector, we serve chemical companies, pulp and paper
companies and heavy manufacturers. In fiscal year 2001, we
served 39 of the 65 industrial products companies in the 2001
Fortune
Global 500. We believe that the chemicals
industry is facing a low return on capital and supply chain
inefficiencies. We also see this sector is undergoing
consolidation and globalization. We believe customer demands are
increasing, which we believe is forcing companies to focus on
the customer rather than the production process. Within the
paper industry, we believe companies are facing extreme cost
pressures. We have worked with our clients on customer service
and retention, improved order management and reduction of
working and physical capital investments. For example, currently
we are helping a major industrial products company to redesign
their main business processes and to implement software
solutions produced by SAP AG in their polymers division. The
project started in Europe and ultimately is planned to cover the
company's global business. Within the paper industry, we
worked with International Paper to redesign their human
resources function and also to transform their corporate culture
to be able to do business electronically. This project involved
developing and implementing Internet-based technologies and
supporting business processes.
Automotive.
In our automotive industry sector,
we serve vehicle manufacturers, suppliers and dealers. In fiscal
year 2001, we served 17 of the 23 motor vehicles and parts
companies in the 2001
Fortune
Global 500. We believe that
the automotive industry is undergoing globalization and
consolidation and faces increased competition, resulting in
severe cost pressures on our clients. Our client service staff
work with our clients to develop and implement solutions focused
on:
•
customer service and retention,
•
development of electronic business operations,
•
cost reduction and
•
redeployment of assets and capabilities among
    different parts of an organization.
For example, between 1998 and 2000 we helped Fiat
S.p.A to significantly reduce and control their costs. After
collecting and analyzing Fiat's cost performance across 18
countries and 87 support processes, we established key
indicators of Fiat's performance, researched internal and
external industry practices and identified opportunities for
cost reduction.
Retail.
In
our retail industry sector, we serve a wide spectrum of
retailers ranging from convenience stores to destination stores,
including supermarkets, specialty premium retailers and large
mass-merchandise discounters. In fiscal year 2001, we served 28
of the 67 retailers in the 2001
Fortune
Global 500. We
believe that the retail industry today faces increasing
globalization and consolidation and the challenges associated
with multiple, overlapping ways to reach customers. We help
retailers integrate and use new technologies and improve their
customer service to provide differentiation from their
competitors. We are also working with our clients to design and
implement electronic market solutions to increase efficiency by
serving multiple customers simultaneously. For example, in
fiscal year 2001, we helped J.C. Penney implement a
software application to manage Internet content. We also
designed and implemented a solution to use this application to
gather and analyze various information obtained through its
Internet site, such as performance information,
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the number and frequency of use of its Internet
site and the effectiveness of the company's selling and
marketing efforts.
Government and
Services
In our Government and Services industry group, we
serve companies and governmental entities that are involved
principally in labor and knowledge-intensive services. This
industry group includes the four industry sectors described
below. We believe these companies and governmental entities face
similar strategic, organizational and technological issues,
which gives us the opportunity to apply common solutions across
the group. Even in countries where regulation is diminishing,
many of our clients in this industry group continue to rely on
government-backed financing or subsidies.
The following table sets forth industry net
revenues and percentage of total industry net revenues for the
twelve countries and geographic areas described above and a
representative list of clients for the periods indicated for the
Government and Services industry group. The clients listed below
are some of our largest clients in this industry group, in terms
of net revenues, for fiscal year 2001.
Government and Services Industry Group
Year Ended
Nine Months Ended
June 30, 2001
March 31, 2002
Industry Net Revenues (in thousands):
$
1,097,742
$
875,357
Percent of Total Industry Net Revenues:
21
%
25
%
Examples of Clients in Fiscal Year 2001
American Airlines
British Airways Plc
Canadian Pacific Railways
Consignia Plc
Delta Air Lines Inc.
Department for Work and Pensions (UK)
Deutsche Lufthansa AG
Deutsche Post AG
FedEx Corporation
Government of Ontario
Home Office (UK)
Japan Airlines
Preussag AG
TPG (TNT) Post Group N.V.
UK Ministry of Defence
U.S. Department of Defense
U.S. Navy
U.S. Postal Service
United Airlines
United Parcel Service
________________________________________________________________________________
Government.
In our government industry sector,
we serve a variety of government organizations, including
national governments and international agencies as well as local
municipalities. In fiscal year 2001, we served governments in
many countries, including the United States, Canada, Australia
and all members of the European Union. We believe that the
government sector is facing new and more complex problems while
the number of governmental employees is shrinking. We believe
citizens are demanding more efficient, more convenient and more
accountable public services. We help our clients to meet these
challenges by working with them to change processes, reallocate
spending and upgrade technology to create an increasingly
electronic environment. We also work with these organizations to
outsource functions that are not critical to government
operations. For example, we are currently working with the
United Kingdom Department for Work and Pensions to build a new
multi-channel customer-focused organization that will serve the
needs of all United Kingdom pensioners. Multi-channel refers to
the multiple ways an organization can communicate or interact
with its clients or customers.
Defense.
In
our defense industry sector, we serve departments and ministries
of defense. We believe that one of the key challenges facing
defense organizations is to improve operational efficiency. To
help our clients, we develop solutions that focus on improving
efficiency and simplifying infrastructure. We also work with
defense organizations to improve their war-fighting, logistics
and business processes. Our solutions include developing
innovative solutions for the sharing of information and
integrating geographically diverse operations. For example,
beginning in 1999 and continuing through this year we have
worked closely with the United States Navy Commander in Chief,
Pacific Fleet, a command responsible for approximately 240,000
people, 200 ships and 1,400 aircraft from the West Coast of the
United States to the Persian Gulf. We helped
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the command to redesign its organizational
processes by developing Internet-based tools to improve the
efficiency of its operations and to enhance its communication
systems.
Aviation.
In
our aviation industry sector, we serve airlines, airports and
other aviation industry companies. In fiscal year 2001, we
served seven of the nine airlines listed in the 2001
Fortune
Global 500. We believe that the airline industry faces
increasing pressure to reduce costs, enhance customer
satisfaction and improve security. We also believe that airline
companies require the highest quality systems integration
solutions because of their need for real time information and
processing efficiency. In addition to systems integration
solutions, we assist airlines around the world with improving
their business processes in administrative, maintenance, repair
and operational areas. We also are offering electronic services
and solutions in the areas of operations strategy,
implementation and customer service. We are one of the
industry's key implementers of integrated enterprise
resource planning solutions, having implemented these solutions
in one-third of the 2001
Fortune
Global 500 airlines. In
addition, we currently are working closely with the new
Transportation Security Administration in the United States,
including through several of our strategic alliance
relationships. We have developed design and program concepts for
improving airline and airport security that we are applying in
our initial work.
Post and Surface Transport.
In our post and surface transport
industry sector, we serve post or mail, railroad and sea-based
transportation companies and organizations. We also serve
logistics service providers, such as warehousing and
distribution organizations. We believe that these industries are
benefiting from the speed and efficiency provided by electronic
business. We also believe, however, that the use of electronic
business makes the successful fulfillment of customer orders
more difficult. Our client service staff are providing our
clients with solutions that improve fulfillment accuracy, reduce
costs of fulfillment and simplify and increase the efficiency of
the connection between order taking and fulfillment. We also
work with companies to develop better international logistical
support. For example, in 2002, we are helping the United States
Postal Service develop a strategy for the realignment of its
international service centers and its global transportation
links. We have also assisted the United States Postal Service in
developing its overall logistics strategy as well as redefining
the processes and technologies necessary to implement this
strategy.
Financial
Services
In our Financial Services industry group, we
serve companies in the banking, insurance, capital markets and
investment management industries. In fiscal year 2001, we served
75 of the 116 financial services companies in the 2001
Fortune
Global 500. While each of these industry sectors
has unique issues, we believe they share common challenges,
including economic pressures from increased competition and an
evolving regulatory environment. Other common themes for this
industry in our experience include managing customer
relationships, managing credit risk and write-offs and
streamlining core business processes as well as complying with
increasing regulatory requirements. We share resources and
learning within this group, allowing us to develop and market
solutions to clients in a timely and cost-effective manner. Many
of our clients are active in more than one industry sector, and
we work closely as one team to apply individual skills to meet
client needs.
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The following table sets forth industry net
revenues and percentage of total industry net revenues for the
twelve countries and geographic areas described above and a
representative list of clients for the periods indicated for the
Financial Services industry group. The clients listed below are
some of our largest clients in this industry group, in terms of
net revenues, for fiscal year 2001.
Financial Services Industry Group
Year Ended
Nine Months Ended
June 30, 2001
March 31, 2002
Industry Net Revenues (in thousands):
$
884,846
$
488,340
Percent of Total Industry Net Revenues:
17
%
14
%
Examples of Clients in Fiscal Year 2001
ABN AMRO
Aetna, Inc.
Allianz AG
American Express Company
Aviva (formerly CGNU)
AXA
Bank of Montreal Group of Companies
Barclays Bank Plc
Citigroup, Inc.
Credit Suisse Group
Deutsche Bank AG
FleetBoston Financial
J.P. Morgan Chase
Lloyds TSB
Prudential Financial Company
Société Géneral
Swiss Re
UBS AG
Wells Fargo Bank
Zurich Financial Services
________________________________________________________________________________
Banking.
In
our banking industry sector, we serve commercial and savings
banks, diversified financial institutions and other lending
organizations. We believe that the rapid growth of
banking-related electronic commerce, the convergence, or coming
together of, the financial services industries and the
deregulation of the banking industry make it possible for new
entrants to effectively compete with more mature companies. To
compete effectively in this new market, we believe that banks
must effectively sell a wide range of products through multiple
points of customer contact, including telephone banking,
Internet banking and mobile services as well as card services,
automated teller machines and traditional branches. Our practice
focuses on helping banks to use new technologies to optimize the
relationships with their customers, improve shareholder value
and enhance banking operations and infrastructure management.
For example, in 2001, we assisted FleetBoston in a variety of
important projects and efforts, including the implementation of
its customer relationship management strategy in several
significant areas within the bank. FleetBoston has chosen
Siebel-
e
Finance as its primary systems solution to manage
its customer relationships. Working closely with us, FleetBoston
customized Siebel-
e
Finance applications and integrated
them into their systems, improving access to customer data and
enhancing customer service and sales and marketing abilities.
Capital Markets.
In our capital markets industry
sector, we serve both established and emerging capital market
organizations, including global investment banks. We believe
that the capital markets industry is characterized by
consolidation, cross-border trading and the need for more
efficient transaction processing. We also are seeing an evolving
regulatory and accounting environment. We are working with
several clients to implement the concept of straight-through
processing to implement one-day clearing of capital markets
transactions which would represent a major step forward in the
speed and accuracy of capital markets transaction processing. We
also help clients modernize and simplify their operations and
financial reporting processes. For example, we are currently
working with a client in the redesign of its financial reporting
systems, helping them with their electronic procurement
initiatives and reviewing the systems implications of the
client's adoption of United States generally accepted
accounting principles as its primary basis of reporting.
Insurance.
In
our insurance industry sector, we serve life insurance
companies, property and casualty and health insurance companies,
reinsurance companies and insurance brokerages. We believe
industry consolidation, new technology and reduced regulatory
barriers as well as an increased focus on risk management are
the key industry challenges and opportunities. We believe the
insurance industry also faces critical challenges as companies
introduce more points of customer contact and move more services
online.
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Clients recognize that online services will make
it possible to deliver a faster and simpler customer experience
at a significantly lower cost, but the industry remains
constrained by its existing infrastructure limitations. We work
with clients to determine their competitive strategies and to
align and implement new processes and technologies. For example,
in October 2001, we successfully implemented a
custom-developed medical underwriting application for a leading
insurance company. The application replaced an existing
paper-based system, which improved processing speed and
efficiency and reduced costs. The program was delivered
successfully in an eight month time period to support peak
processing during annual enrollments. Key objectives of the
application have already been exceeded, including achieving
automated decision making for a significant percentage of
applications and providing an underwriting rule base that is
maintained and added to by business analysts.
Investment
Management.
In our investment management industry
sector, we serve investment and wealth management organizations.
Despite a slower than expected start, we believe that consumer
demand for Internet-based financial planning services will rise.
To compete with banks and to attract and retain customers,
investment managers will need to transform their organizations
into consumer-oriented companies powered by technology. We also
perform surveys and market analysis of the wealth management and
private banking industries. We help our clients define their
strategy and develop and implement technology. We also provide
merger integration advisory services. We believe our practice
helps our clients improve internal management systems by
integrating existing technology with new systems and linking
them to their customers.
Information,
Communications and Entertainment
In our Information, Communications and
Entertainment industry group, we serve companies in the
telecommunications, entertainment and media and hospitality and
leisure industry sectors. Many of our clients have businesses in
more than one of these industry sectors, which we believe have
several common challenges and opportunities, including:
•
maximizing revenues by selling multiple products
    and services to the same customer,
•
attracting and retaining customers in an
    increasingly competitive marketplace,
•
exploiting the combination of content,
    distribution and consumer devices,
•
capitalizing on increasing consumer acceptance of
    wireless communications and mobile devices and services,
•
reducing operating costs and
•
creating an efficient, common infrastructure to
    integrate diverse operations.
By covering these industry sectors in one
industry group, we are able to better understand these common
issues by sharing resources, learning and solutions among these
sectors across the world, while also addressing the unique needs
and challenges of each sector.
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The following table sets forth industry net
revenues and percentage of total industry net revenues for the
twelve countries and geographic areas described above and a
representative list of clients for the periods indicated for the
Information, Communications and Entertainment industry group.
The clients listed below are some of our largest clients in this
industry group, in terms of net revenues, for fiscal year 2001.
Information, Communications and Entertainment Industry Group
Year Ended
Nine Months Ended
June 30, 2001
March 31, 2002
Industry Net Revenues (in thousands):
$
691,990
$
447,246
Percent of Total Industry Net Revenues:
14
%
13
%
Examples of Clients in Fiscal Year 2001
AOL Time Warner
AT&T
Bertelsmann Music Group
Bell Canada
Bell South Corporation
Cable & Wireless Plc
Deutsche Telekom AG
France Telecom
Genuity, Inc.
KPN
NTT DoCoMo, Inc.
Sodexho Inc.
Sony
Sprint Corporation
Telefonica S.A.
Telstra S.A.
Verizon
Vodafone Group Plc
The Walt Disney Company
WorldCom, Inc.
________________________________________________________________________________
Communications.
In our communications industry
sector, we serve the following types of companies:
•
traditional long distance and local telephone
    companies,
•
cable and satellite operators,
•
wireless communications providers,
•
providers of fiber-optic and other cable
    facilities, with high-bandwidth or transmission capacity,
•
Internet service providers and
•
other communication service providers, such as
    call centers, which are centers which typically manage an
    organization's interactions with customers through the
    telephone and, increasingly, using other mediums of
    communication such as electronic mail.
In fiscal year 2001, we served 20 of the 27
communications companies in the 2001
Fortune
Global 500.
We believe that communications companies face opportunities and
challenges brought on by new technologies and changing
regulation as well as new business models and rapidly changing
customer requirements. The accessibility, flexibility and
convenience of wireless devices is an example of how technology
continues to change the communications industry. We also believe
that consumers are demanding increased bundling of services and
content. As a result, in our experience, enhanced customer
relationship and content management capabilities have become key
sources of competitive advantage for leading communications
companies. To help our clients manage these challenges, our
services often involve the implementation of our customer
relationship management services, including our
CRM Accel
solution set. We also help our clients handle complex
infrastructure requirements through offerings such as our
New
World Networks
solution set. These solution sets are
described below.
Entertainment and Media.
In our entertainment and media
industry sector, we serve film, television, radio and publishing
companies. We also serve games, live entertainment and
advertising companies. In fiscal year 2001, we served seven of
the nine entertainment and media companies in the 2001
Fortune
Global 500. We believe that the delivery of
entertainment and media over the Internet and digital
production, distribution and presentation of content will
continue to drive how these companies create and offer their
services. Electronic delivery also will greatly increase the
threat of the unauthorized duplication and distribution of
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content. Our practice is focused on effective and
efficient operation of the core and traditional entertainment
and media business segments, particularly in response to
continuing merger and consolidation activity. We also help
clients assess and prepare for the impact that new technologies
will have on the way their customers obtain and enjoy content.
In addition, we have service offerings, such as our digital
rights management solution, that help our clients protect their
content.
Hospitality and Leisure.
In our hospitality and leisure
industry sector, we serve clients that operate hotels, theme
parks, gaming facilities and cruise lines. We also serve food
and beverage service providers, rental car companies and sports
and leisure businesses. Our work in hospitality and leisure
focuses on a few major themes, including enhancing guest and
customer relations, strengthening business relationships and
improving employee relationships. We also assist our clients in
their efforts to improve the overall customer experience, which
we believe is a goal shared by all of our clients in this
industry sector. The solutions we are most often asked to
provide include customer relationship management, supply chain
management and the implementation of online information-sharing
networks. For example, we have helped our clients implement new
business-to-enterprise communication networks that allow
employees to stay better informed, resulting in better
communication with customers. We also have helped clients
improve the productivity of their procurement organizations by
consolidating purchasing activities across their businesses to
reduce costs.
Energy
and Utilities
In our Energy and Utilities industry group, we
serve companies in the oil and gas, utilities and mining
industry sectors. We believe that businesses in these industry
sectors that are involved in exploration and extraction of
resources share a number of common challenges, including
management of capital intensive operations and volatile
commodity prices. Companies involved in the delivery of the
products and services of these industry sectors we believe also
share common challenges, including complex supply chain and
customer management concerns.
The following table sets forth industry net
revenues and percentage of total industry net revenues for the
twelve countries and geographic areas described above and a
representative list of clients for the periods indicated for the
Energy and Utilities industry group. The clients listed below
are some of our largest clients in this industry group, in terms
of net revenues, for fiscal year 2001.
Energy and Utilities Industry Group
Year Ended
Nine Months Ended
June 30, 2001
March 31, 2002
Industry Net Revenues (in thousands):
$
641,473
$
505,283
Percent of Total Industry Net Revenues:
13
%
15
%
Examples of Clients in Fiscal Year 2001
Amerada Hess Corporation
American Electric Power
BP Group
Centrica Plc
CEPSA
ChevronTexaco
Duke Energy
Endesa
E.ON Energie AG
ExxonMobil
LUKOIL Overseas
Marathon Oil
OAO "Gazprom"
RAG Aktiengesellschaft
Reliant Energy
Repsol YPF
Royal Dutch/Shell Group
RWE AG
Southern Company
Statoil ASA
________________________________________________________________________________
Oil and Gas.
In our oil and gas industry
sector, we serve petroleum exploration, refining and
distribution companies and petrochemical businesses. In fiscal
year 2001, we served 20 of the 37 petroleum companies in the
2001
Fortune
Global 500. We believe that consolidation in
this industry and the price volatility of oil are forcing
companies to manage their cost structures more effectively,
which includes the outsourcing of operations that are not core
to their businesses. The principal services we provide in this
industry include
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implementing financial management systems,
improving supply chains and increasing outsourcing. They also
include integrating electronic management systems and electronic
markets into traditional business models. For example, working
with SAP AG, we have developed
SAP PRA
, a production and
revenues accounting component for use in SAP's enterprise
resource planning software. This application is now a major
component of the
mySAP Oil & Gas
software solution.
This software enables our clients to manage the entire
production and revenues process. We have successfully
implemented this software at both Texaco and Marathon Oil and
are currently implementing the solution at ChevronTexaco and BP
Exploration and Productions' operations in the United
States, excluding Hawaii and Alaska, for which we are also the
finance and accounting business process outsourcing provider.
Utilities.
In
our utilities industry sector, we serve electric, gas and water
utility companies. In fiscal year 2001, we served 18 of the 28
utilities companies in the 2001
Fortune
Global 500. We
believe that this industry is characterized by deregulation,
globalization and convergence, or the coming together of
previously separate industries or industry segments. To help
clients succeed in this environment, we have developed a
business process architecture map, called
The Utilities
Jigsaw,
which describes the evolution of utility company
business processes due to deregulation. Our solutions in this
industry sector focus on improving our clients' supply
chains and integrating their information systems throughout
their operations. For example, we helped design and implement
opciona.com, the leading utility sector business-to-business
electronic market in Spain and Latin America. Opciona has
already enabled a large Spanish utility company to benefit from
lower equipment costs and reduced transaction costs for
purchasing.
Mining.
In
our mining industry sector, we serve mining companies in the
world's key mining regions. In fiscal year 2001, we served
two of the three metals and mining companies in the 2001
Fortune
Global 500. We believe that the mining industry
is characterized by increased consolidation and volatile
commodity prices. To succeed in this environment, we believe
that companies must decrease costs by improving their asset
management and procurement processes and integrating
cross-border operations. We work with mining clients on a
variety of projects, including mine planning and modeling,
operational effectiveness and physical asset management. For
example, in a recent engagement we helped redesign operations at
a client's coal mine that resulted in a substantial
reduction in unit costs and staff levels while maintaining mine
output.
Solution
Areas
We also approach our business by grouping our
services into seven services areas, which we refer to as
solution areas. We group our solution areas into the following
three broad categories:
•
develop, which is developing business, technology
    and change strategies for our clients,
•
deliver, which is designing and implementing
    technology-based business processes and solutions, and
•
operate, which is our application management and
    business process outsourcing offering which we intend to grow as
    one of our growth strategies.
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The chart set forth below illustrates how we view
our solution area offerings to clients.
Our accounting systems do not track our revenues
by solution area.
Strategic
Change
In our Strategic Change solution area, we help
our clients understand trends and other forces affecting their
industries and help design and implement strategies to better
differentiate our clients in their marketplaces. Our Strategic
Change practice is an important component of our integrated
approach to serving clients. Our Strategic Change client service
staff work closely with our functional and technical
implementation solution areas to design achievable
implementation plans for our proposed strategies. Within
Strategic Change, we divide our services into the three separate
service offerings described below.
•
Corporate and Operations
    Strategy.
We focus in this service
    offering on questions such as where to compete, including
    analyzing which products to sell and in which markets and for
    which customers to compete. We also analyze how to compete,
    including identifying a company's core strengths and
    competitive advantages. In addition, we help our clients develop
    the business models necessary to integrate their corporate
    strategies into their operations to enhance shareholder value.
•
Organization and Change
    Strategy.
We support our clients
    with organizational recommendations that help them match their
    culture, people, structures, processes and information
    technology with their corporate and operations strategy. Our
    recommendations often involve large-scale organizational
    changes. Our services also include change management and
    leadership coaching.
•
Information Technology
    Strategy.
We help our clients
    design and plan information technology architectures, or plans,
    to support their corporate strategies and to gain competitive
    advantage. We also create information technology transition
    programs that help our clients realize the full potential of
    their information technology investments.
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Customer
Relationship Management
In our Customer Relationship Management solution
area, we help our clients strengthen their customer
relationships by responding to customer needs while reducing
operational cost. We provide a range of customer relationship
management services globally, but our projects usually involve
one or more of the elements described below.
•
Vision.
We
    help our clients look at the way they interact with their
    customers and help them understand their existing
    customer-related capabilities and limitations. We use this
    process to help our clients frame a vision for the future of
    their customer relationships. In the process of creating a
    customer relationship management vision, we also identify how
    other businesses and organizations interact with customers,
    looking for processes that are the best in the marketplace. We
    then work with our clients to develop integrated plans to
    transform current operations to meet the goals that we develop
    with our clients.
•
Multi-channel.
We help our clients design and
    apply integrated technology solutions to assist them in serving
    their customers through the variety of ways, or channels, in
    which they interact with their customers. This includes product
    and service campaign management, computer-automated marketing
    management and call center operations. Our newly launched
CRM
    Accel
solution set, described below, helps us serve our
    clients by integrating traditional and new communication tools
    to efficiently and effectively target customers and customer
    needs.
•
Analytics.
We
    help our clients better understand their customers and their
    habits, needs and history. Working with our clients, we build
    insight into potential and existing customers from the various
    data sources they have available. We then use these insights to
    help our clients develop customized campaigns, products and
    services to improve their customer relationships.
An example of a recent engagement is our work at
American Airlines' customer call center. We helped American
Airlines redesign their call center processes to enable
customers to obtain information more quickly. As a result of our
work, American Airlines has substantially reduced its average
customer call time, which is resulting in significant cost
savings.
Financial
Management
In our Financial Management solution area, we
help our clients design and implement business process and
technology solutions for their finance and accounting functions.
We work closely with SAP, Oracle and PeopleSoft as well as other
technology vendors to serve the core systems needs of our
clients in this area. Our service offerings help clients address
the changing role of finance and better manage capital and
profits. We also help them increase the visibility of financial
information and maximize the benefits of technology. We
currently are focusing on three key issues facing our clients,
as described below.
•
Financial Management Strategy.
We believe that the internal
    finance function is evolving to a smaller and virtual
    organization capable of supporting new initiatives without
    compromising its traditional guardianship role. Our solutions
    include advising clients concerning finance strategy, realizing
    the benefits from process automation and profit improvement.
    They also include organizational design, training, modeling and
    measurement.
•
Continued Automation of Financial
    Processes.
We believe that
    financial technologies and an understanding of the best
    practices within an industry and marketplace are becoming
    increasingly interwoven and are helping to accelerate the
    evolution of the finance function toward a virtual organization.
    Our finance technology solutions help clients manage their
    applications and infrastructure to reduce costs and increase
    value for our clients. These solutions include core enterprise
    resource planning financial systems, systems integration and
    process engineering. They also include shared services design
    and implementation, outsourcing strategy, merger integration and
    technology selection and implementation.
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•
Effectively Managing Information.
We believe that managing
    information effectively is becoming a necessary competency of
    the finance function. In our experience, the finance function
    brings a unique perspective to informing and enabling
    intelligent business decisions. Its traditional roles in
    measuring and controlling internal performance, measuring
    customer profitability and performing competitive analysis as
    well as new roles such as measuring the performance of
    collaborative business networks provide the finance function
    with an important role in understanding and using information.
We are continually developing solutions to
improve our clients' financial management capabilities. For
example, our
iAnalytics
solution set, described below, is
designed to allow senior management to set strategy and deploy
appropriate process and technology to implement key performance
measures throughout the entire organization.
Human
Capital
In our Human Capital solution area, we help our
clients with the full lifecycle of people management. We design
human capital strategies, manage workforce knowledge and seek to
improve employee productivity through the application of
appropriate tools and technologies. We believe that attracting,
developing and retaining talented employees is essential to the
success of nearly all of our clients. We provide services in
this solution area in a wide range of areas, including the ones
described below.
•
Human Resources Process
    Improvement.
We help our clients
    develop their human capital strategy, focusing on developing and
    deploying various human resources processes and technologies to
    meet their business needs. Clients also seek our advice on
    developing electronic-based human resources processes, moving to
    shared service centers or outsourcing their human resources
    processes, people and technologies to a third party, or a
    combination of all three.
•
Learning.
We
    assist our clients in designing appropriate learning strategies.
    We also help create and deliver both traditional classroom
    training and, working with our alliance members, Internet based
    training. We work with our clients to operate their Internet
    learning environment in a cost effective manner.
•
Business-to-Employee.
We work with our clients to integrate strategy, process and
    technology to allow them to connect easily through the Internet
    with their employees. Our service offering in this area enables
    employees to communicate, conduct and attend training and manage
    key self-service functions such as benefits administration.
•
Human Resources
    Technology.
Working with our
    strategic alliance members such as Oracle, PeopleSoft and SAP,
    we assist our clients with designing, building and implementing
    human resources systems. These systems often extend beyond human
    resources administration and payroll and include systems to
    enhance recruitment, competency and performance management and
    succession planning. They also enable our clients to perform
    these functions over the Internet.
We work to provide our clients with appropriate
advice on how to maintain and enhance their human capital. For
example, we conduct frequent marketplace surveys to help ensure
that we have up to date information on which our clients can
compare their human resources operations to the human resources
operations of their competitors.
Supply
Chain and Operations
In our Supply Chain and Operations solution area,
we help our clients improve profitability by making their supply
chain, which includes both the internal movement of inventory
and the movement of goods to and from suppliers and customers,
more effective through process improvement and the use of
advanced technologies. Our solutions help streamline new product
development and planning, make procurement more efficient and
strengthen customer and supplier relationships. Our
comprehensive supply chain services cover the areas described
below.
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•
Supply Chain
    Strategy.
We help our clients
    understand their existing supply chain by analyzing current
    processes and infrastructure. We also help design a supply chain
    strategy by looking at the practices of other companies and
    determining which processes would be advantageous for our
    clients.
•
Integrated Supply Chain
    Planning.
We help our clients
    adjust manufacturing to meet fluctuating demand through
    improvement of business processes and application of technology.
    We also help our clients collaborate, increasingly through
    electronic networks, with suppliers and customers.
•
Integrated Supply Chain Enterprise Resource
    Planning.
Through design and
    implementation of integrated technologies from technology
    providers such as Oracle, PeopleSoft and SAP, we help clients
    respond to rapidly changing conditions through efficient access
    to and exchange of information.
•
Product Lifecycle
    Management.
We provide process and
    technology solutions that integrate and simplify new product
    design, manufacture and delivery processes.
•
Procurement.
We help our clients develop capabilities to electronically
    collaborate with suppliers for efficient supply procurement and
    inventory management.
•
Logistics and
    Distribution.
We use technology
    solutions to help our clients improve efficiency through the
    integration of warehouse and transportation management processes.
Many of our services involve the use of
Internet-based technologies. For example, we have helped deploy
technologies to allow for electronic fulfillment of customer
orders, electronic procurement and collaborative forecasting
between purchasers and suppliers in several major client
organizations.
Information
Technology
Our Information Technology solution area
represents our core resource for the design and implementation
of complex information technology projects. Our client service
staff are responsible for all phases of technology
implementation, from strategic planning and design to
implementation and testing. Within this solution area, we
provide our clients with expertise in a wide range of areas,
including the areas described below.
•
Systems Integration.
We provide our clients with
    expertise in enabling hardware, operating systems and software,
    including software from multiple vendors, to function as an
    integrated solution. We also have expertise in the design and
    development of application systems with a focus on
    Internet-based and other leading technology platforms. In
    addition, we work on complex testing and configuration
    engagements, often in connection with other solution areas.
•
Data Warehousing and Data Mining.
In our data warehousing and data
    mining service offering, we focus on helping our clients find
    information in multiple computer databases and files and
    bringing the information to the user as well as helping our
    clients organize information for easy future use. For example,
    our
iAnalytics
solution set, described below, utilizes
    data warehousing and data mining technologies to find
    information that may be buried in multiple computer systems.
•
Informational Technology Business
    Management.
We help our clients
    manage their internal information technology departments and
    processes, often consulting with chief information officers and
    chief technology officers. Our goal is to help our clients
    effectively manage their procedures and tools to maximize the
    efficiency and functionality of their information technology
    departments.
•
Program Management.
Our program management specialists
    are experts in managing the complex processes of technology
    implementation. For example, we provide clients with experienced
    project and program management resources to organize and manage
    the implementation of major technology programs.
Our engagements involving Information Technology
solutions, particularly our systems integration and data
warehousing projects, usually involve large-scale strategic
planning and development followed by global or national
implementations. We maintain and renew the expertise of our
technology client service staff by focusing on the fundamentals
of methods, tools and training. The fundamentals also include
knowledge sharing and hands on experience as new technologies
emerge.
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Application
Management and Business Process Management
We currently provide a limited amount of
outsourcing services for our clients. Historically, these
services, in terms of revenues, have not been as large as our
other solution areas. We plan to grow both our application
management and business process management services in the near
future to complement our strategy and implementation strengths.
Our goal is to provide these services in conjunction with our
other solutions so that we provide a complete set of integrated
services and solutions to our clients, allowing us to manage the
entire lifecycle of a business function or application.
•
Application Management Services.
In our application management
    practice, we perform ongoing maintenance and development
    services for important software applications, such as enterprise
    resource planning systems, which control functions such as
    financial reporting and human resources. Although we currently
    provide a limited amount of these services, we plan to expand
    these services considerably.
•
Business Process Management Services.
Business process management
    services, which are services in which entire processes, like
    accounting and financial reporting systems, are administered and
    operated by a service provider, have not historically been part
    of the management consulting and technology services businesses
    which are being transferred to us as part of our separation from
    the PricewaterhouseCoopers network of firms. Following the
    closing of this offering, we plan to build our business process
    management services business to complement our strategy and
    implementation strengths. When we enter into business process
    management services contracts with a client, we or one of our
    affiliates usually hire a portion of the staff previously
    employed by the client to help perform the business process that
    we will operate for the client. As part of our separation, the
    PricewaterhouseCoopers firms are transferring a portion of their
    business process management services businesses to us, which we
    will use as a platform to build this solution offering. The
    portion of their businesses being transferred to us is a group
    of contracts, which we believe are consistent with our strategy
    to grow our outsourcing services in industries and solution
    areas where we believe we have competitive strengths. Although
    the PricewaterhouseCoopers firms will be able to compete with us
    in various agreed upon manners, we do not believe that the
    continued operation by the PricewaterhouseCoopers firms of their
    business process management services businesses will have a
    negative impact on our business process management services
    business.
To complement our application management and
business process management services, we will continue to offer
infrastructure management services to our clients, which are
services in which large-scale, capital-intensive technology
systems are owned or operated by third party technology service
providers, primarily through our strategic alliance
relationships with EDS, Intel Online Services and other
information technology outsourcing companies. Following this
offering, we will continue to rely on our existing strategic
relationships, and on new strategic relationships we may enter
into following this offering, to provide these services to
clients.
Although we have been providing application
management and business process management services since 1991
and 1995, respectively, we have limited experience in providing
these types of outsourcing services on the scale and in the
industries and solution areas contemplated by our growth
strategy. We are in the process of building the organization we
need to expand this solution area. We need to hire new client
service staff with skills and capabilities that are different
than those of our consulting partners and other consulting
client service staff. We also need to create new methodologies
to support this service offering.
We believe that our client base of many
Fortune
Global 500 companies, which we expect to be
the companies more likely to seek outsourcing services, may help
us market our services because of our existing relationships. We
intend to focus on areas of application management and business
process management services, such as financial management
services, in which we believe our core expertise in business
processes may give us a competitive advantage. We also believe
that our strong strategic alliances with leading software
companies will help us build this solution area.
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Alliances
We have many alliances, which are relationships
with technology companies and companies in other fields that
extend our capabilities and service offerings. We categorize our
alliances based on the importance of the alliance to our
business and our clients. Our most important alliances are our
strategic alliances, to which we devote considerable resources,
such as marketing, trained client service staff and
infrastructure support. We also have a number of important
relationships that we refer to as our managed alliances. These
alliances produce technologies that complement our knowledge and
skills to build value-adding solution offerings for our clients.
Most of our alliance relationships are applicable to multiple
industry groups, although some of our alliances relate to a
specific solution area or industry segment. Our alliances are
not exclusive.
We currently have strategic alliances with seven
companies. We devote significant resources to these strategic
alliances. For example, as of March 2002, we had more than
12,000 client service staff trained and experienced in
implementing one or more applications or technologies developed
by Oracle, PeopleSoft, SAP and Siebel. Our strategic alliances
also provide us with important leads regarding new projects and
engagements. In addition, we work with these companies to
develop new solutions and services.
Our alliances generally include one or more of
the following cooperative elements or agreements:
•
resale arrangements, in which technology vendors
    provide us with the ability to offer discounts to our clients on
    hardware and software,
•
development arrangements, in which we agree to
    jointly develop new capabilities for existing products or
    services,
•
joint marketing arrangements,
•
access to demonstration software licenses, which
    allow us to use software from our vendors as part of our
    development and marketing activities,
•
access to or discounts on training programs and
•
arrangements to dedicate client service staff and
    other resources to building the alliance relationship.
Although we have entered into agreements with
most of the companies with which we have strategic alliances,
many aspects of our relationships with these companies are not
subject to written agreements. These written agreements
generally have short terms, usually no more than two years, and
can be extended in most cases. Most of these agreements also can
be terminated with or without cause upon short notice. While we
believe our alliance relationships are an important part of our
strategy to offer comprehensive solutions to our clients, our
alliance agreements generally do not require us or the other
parties to provide any specified number of referrals or achieve
any particular level of revenues. In addition, our decision on
which alliance member to work with on a particular engagement is
often more heavily influenced by the needs of the specific
client or the nature of our relationship with the client than
the existence of our alliance relationship. Furthermore, these
agreements are not required in order for us to implement or
deploy the software or hardware of the companies with which we
have alliances.
The following tables set forth a description of
our strategic and managed alliance relationships.
Strategic
Alliances
Company
Alliance Description
EDS
We work with EDS to offer clients enterprise-wide
    solutions. The alliance is mainly focused around SAP outsourcing
    opportunities.
Hewlett-Packard
We work with Hewlett-Packard both as a reseller
    of their equipment and through our strategic relationship to
    provide supply chain collaboration and other solutions. The
    alliance uses Hewlett-Packard's infrastructure and platform
    strengths and our system integration and business consulting
    services.
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Company
Alliance Description
Oracle
We work with Oracle to provide enterprise
    solutions to transform our clients' businesses. These
    solutions span the entire enterprise, including customer
    relationship management, supply chain management and online
    network, or portal, solutions.
PeopleSoft
We work with PeopleSoft to help our clients
    create human resources, financial management, customer
    relationship management and supply chain solutions on various
    platforms, including through the Internet.
SAP
We work with SAP to provide solutions that help
    companies collaborate electronically with customers, suppliers,
    employees and shareholders. These systems are delivered to
    enable companies to win new business, improve responsiveness,
    lower costs and manage their business more effectively.
Siebel Systems
We work with Siebel Systems to deliver customer
    relationship management and employee relationship management
    technologies that help our clients interact effectively with
    their customers, partners and employees across multiple points
    of contact including the Internet, call centers and personal
    contact. These multiple contact points also include wireless
    communication, retail contact and dealer contact.
Sun Microsystems
We work with Sun Microsystems globally across
    many industries as a reseller of their technology and to help
    our clients develop solutions, such as customer relationship
    management, addressing critical business functions.
Managed
Alliances
Company
Alliance Description
BEA Systems
We work with BEA Systems to deliver a broad array
    of application integration services for our clients focusing on
    customer relationship management, supply chain and operations,
    human capital and financial management solutions.
Cognos
We work with Cognos to help our clients implement
    analytics-based solutions that allow our clients to maximize and
    streamline their decision-making processes, as well as to
    monitor their key measures of business performance.
Documentum
We work with Documentum to deliver
    enterprise-wide content management solutions to our clients. In
    addition, we have developed tailored solutions with Documentum
    to deliver content management functionality to meet the complex
    requirements of the pharmaceuticals industry sector.
Epicentric
We work with Epicentric to implement and manage
    portal, or online network, initiatives that provide access to
    business information and applications, allowing an enterprise to
    interact with employees, customers and suppliers in new and more
    effective ways.
i2 Technologies
We work with i2 Technologies across their entire
    product suite to build value-based business systems to improve
    our clients' supply chain and customer service
    effectiveness. We also have built a number of online public and
    private trade exchanges based on i2 Technologies software.
Informatica
We work with Informatica to help our clients
    achieve a complete view of their business and to gain insight
    that is critical for maximizing business efficiency, performance
    and profitability.
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Company
Alliance Description
Intel Online Services
We work with Intel Online Services primarily to
    provide web hosting and information technology outsourcing
    services to our clients. We also work with Intel Online Services
    to assist our clients with the fundamental processing
    infrastructure requirements needed to support their information
    technology requirements across their entire enterprise.
Manugistics
We work with Manugistics to deliver innovative
    supply chain planning and transportation management solutions to
    our clients.
Microsoft
We work with Microsoft on a variety of levels
    worldwide to deliver efficient business systems to our clients.
Solution Sets
A key component of our continuous innovation
strategy is our solution set program. This formal program
involves identification of key technology and business trends
and anticipating the challenges and opportunities they create
for our clients. We create specialized combinations of business
strategy, process change and technology to address these
challenges and opportunities. We refer to these combinations as
our Solution Sets. We believe that our Solution Sets provide us
with a quick and cost-effective means to develop reusable
solutions for our clients that we believe are advanced and
focused on the most important issues facing our clients.
This formalized innovation process involves an
ongoing process of looking at our external markets and client
organizations to find new opportunities. It also involves
allocating resources to each solution set. Each of our solution
sets is in a different stage of development, with some being
marketed actively to clients and others continuing to be
developed and refined internally or at a limited number of
clients. Costs related to solution set research and development
activities are expensed as incurred. Once a solution set is
ready to be deployed on a larger scale, we migrate the solution
to one of our seven solution areas and it becomes a standard
offering.
During the past year, we invested in a number of
solution sets which we believe are, and will continue to be,
important to the success of many of our clients. These solution
sets are described below.
•
Business-to-Enterprise.
Our
Business-to-Enterprise
solution set helps companies
    improve internal employee communication and the flow of
    information. The core of our
Business-to-Enterprise
solution set is the implementation of a company-wide online
    network, or portal, through which employees perform selected
    business processes. Some businesses and organizations have
    implemented business-to-enterprise portals to serve as the
    primary means of communication among employees. Other companies
    are using business-to-enterprise portals as the way to manage
    routine business tasks, such as time reporting by employees.
•
Collaborative Value
    Chain.
Our clients are
    consistently seeking ways to better collaborate with their
    suppliers, customers and other trading partners. Through our
    alliance with Hewlett-Packard, we have developed a set of
    process and technology solutions to allow our clients to quickly
    make improvements in this area. Our
Collaborative Value
    Chain
solutions set includes process and technology
    architecture for design and development of public and private
    online commerce centers and trade exchanges.
•
CRM Accel.
Our clients are seeking to better manage and exploit the
    multiple ways, or channels, of connecting with customers. The
CRM Accel
solution set helps a client manage the various
    ways in which it connects with its customers. The increasingly
    broad use of new communication tools such as electronic mail,
    interactive television and Internet access challenges our
    clients to monitor and respond appropriately to customer needs,
    regardless of the means of communication. Our
CRM Accel
solution set helps our clients understand how to integrate these
    new communication tools with more traditional means of
    communication. We believe the technology behind this solution
    set is particularly important for those clients who need to
    deploy a standard set of communication management processes and
    technology solutions with broad marketplace acceptance.
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•
iAnalytics.
We use the term
iAnalytics
to describe the information,
    methods and technologies needed to solve complex business
    problems. Our
iAnalytics
solution set provides our
    clients with the tools necessary to collect, combine, manage and
    distribute important information within a business. For example,
    this solution set permits a business to link corporate strategy
    with performance measures and distribute these measures
    throughout the organization.
•
Integrated
    Technologies.
Our
Integrated
    Technologies
solutions set is a combination of several of
    our key infrastructure development skills which are often used
    in our other Solutions Sets and service offerings. These skills
    include the following:
•
identifying emerging technologies and the impact
    they will have on existing businesses,
•
integrating technology from multiple providers,
    particularly technology that was never designed to work together,
•
improving the performance of existing information
    technology assets, including intangible assets, like people and
    processes, and tangible assets, such as hardware and software,
    and
•
providing hardware and software procurement
    services.
Normally, we provide these services as part of
    our broader set of client services. Taken together, however,
    these services also form our
Integrated Technologies
solution set.
•
New World
    Networks.
Our
New World
    Networks
solution set is an integrated set of customer
    management technology components for companies that provide
    communication, data handling and online services over the
    Internet. This solution set combines technology from a variety
    of commercial off-the-shelf products, including software from
    Siebel, Vitria and Syndesis, to form an integrated suite of
    services for our clients, including service connection, order
    management, billing and customer care management. By offering
    integrated functions based on commercial off-the-shelf
    solutions, we believe this solution set provides our client with
    a reliable and cost-effective way to build customer loyalty and
    brand-awareness. We have implemented this solution set at over
    160 clients.
•
Transformation.
Our
Transformation
solution set helps companies and
    organizations evolve from integrated business models to a
    portfolio of business operations. Each operating entity is
    designed to maximize use of external business alliances. The
    application of this solution set begins with a highly analytical
    financial review of a client's business and then sets a new
    value enhancing vision and operating model, establishes a change
    blue print and guides the client through the steps required for
    a successful implementation.
Business Development and Marketing
Sales
Process
Our partners promote our solutions and expertise
in the marketplace primarily through direct contact with
existing and potential clients. We currently have approximately
1,400 partners globally. Our sales resources are deployed into
the market in two primary ways. First, we dedicate partners to
establishing and building relationships with existing or
potential clients based on our expectations regarding future
revenues from the client. Our strategic clients are those
clients that we feel will benefit from substantial services from
us on a continuing basis. For these clients, we devote
considerable resources, including at least one dedicated
relationship partner and focused teams of partners and dedicated
sales staff to cultivate and manage our relationships with
executives in the company or organization. We currently have
approximately 100 strategic clients, which are selected by our
global management team.
We also have more than 300 clients for whom we
provide, or expect to provide, significant services, which we
refer to as our managed clients. We use focused teams of
partners to build relationships with these clients. Our managed
clients are selected primarily by our geographic theatre
leadership teams and are often served in only one geographic
theatre or region. Depending on our expectations of future work,
we also allocate, as
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appropriate, business development resources to
our other clients, whom we refer to as our portfolio clients.
Many of these clients are developing or emerging companies that
we believe have high growth potential.
Our second approach to promoting our services
across our geographic theatres and industry groups is focused on
our specific functional and technical specialties, services and
solutions. A majority of our partners sell in this manner to
clients in all three of our client segments, strategic, managed
and portfolio. This type of focused selling is carefully
coordinated with relationship partners and teams in our
strategic and managed accounts. In addition, our alliance
relationships provide us with important leads and the
opportunity to work together to pursue and win engagements.
In both of our primary selling approaches, we
provide clear incentives for our partners and dedicated sales
staff. Each partner, for example, has a specific plan and set of
objectives for his or her respective sales or other client
activities for the year. Our partners are paid on the basis of a
balanced scorecard of performance measures, in which the amount
of revenues generated and other client activity by the partner
are primary measures of partner contribution.
Because we tend to book new engagements at
particular times of the year, such as during the first three
months of each calendar year when our clients' new budgets
generally become available, and some of our fiscal quarters
contain fewer available work days due to traditional holiday and
vacation patterns, we experience some seasonal variations in our
revenues. Please see "Management's Discussion and
Analysis of Financial Condition and Results of
Operations—Quarterly Results of Operations" for
additional information on our quarterly results.
Our client relationships are not exclusive.
Marketing
Program
We changed our name on June 10, 2002, and
will begin operating under our new brand upon our separation. We
plan to spend approximately $110 million in the aggregate
in fiscal year 2002 and 2003 on marketing in connection with
this change. We expect to invest this amount in the promotion of
our brand through Internet, print and broadcast advertising as
well as other means of marketing. Although the proposed SEC
no-action letter would permit us to continue to use the name
"PwC Consulting" for up to four years following the
closing of this offering, we believe that changing our name at
this time provides us with several advantages. In addition to
emphasizing our separation from the PricewaterhouseCoopers
network of firms, the introduction of our new brand in this
manner provides us the opportunity to build a brand image more
appropriate for a public company. We believe that establishing a
new brand at this time is important for us to fully implement
some of our growth strategies.
Employees
As of March 2002, we had approximately 34,000
partners and employees, and we expect to have approximately
33,000 employees, including partners, following our separation.
For the fiscal year ended June 30, 2001, and for the nine
month period ended March 31, 2002, our turnover rates for
client serving employees other than partners, were 21.6% and
10.4%, respectively, excluding involuntary terminations. Our
turnover rate varies from year to year depending on various
economic conditions. For example, for the twelve months ended
December 31, 2000, our turnover rate was 25.4%, excluding
involuntary terminations, reflecting the strong marketplace
demand for people with the skills of our client service staff.
Competition
We compete for global, regional and local
engagements across and within the four geographic regions, or
theatres, in which we have operations. We are one of the
world's leading providers of management consulting and
technology services. Our industry, however, is highly fragmented
and competitive. We compete against a number of different types
of businesses, including:
•
large consulting and systems integration firms
    such as Accenture, CapGemini/ E&Y, KPMG Consulting and
    Deloitte Consulting in the areas of management consulting and
    technology services,
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•
management and strategy consulting firms such as
    Bain & Company, Booz Allen & Hamilton, Inc.,
    The Boston Consulting Group and McKinsey & Company in the
    areas of general business strategy and information technology
    strategy,
•
information technology product and service
    vendors such as IBM Global Services, Hewlett-Packard and EDS in
    the areas of information technology and systems integration
    services,
•
small specialty consulting firms, especially in
    Europe and North America, with strong regional or local
    practices or expertise in specific industry groups such as
    energy and utilities,
•
specialized Internet and electronic business
    services firms,
•
internal strategy or business development
    departments of clients and
•
internal information technology departments of
    clients, particularly with respect to our outsourcing solution
    area because these services often replace all or part of a
    company's internal information technology department.
The identities of our key competitors vary
depending on the geographic theatre or country involved except
with respect to competitors with a global presence. While there
are a large number of firms competing in our industry, there are
only a few firms with a global presence and broad service
offerings. In this category, we regularly compete globally
against Accenture and IBM Global Services.
Industry
Conditions
The competitive conditions in our industry are
changing. For example, outsourcing services are becoming more
important to many businesses and organizations. We believe our
primary competitors for our outsourcing solution area will be
Accenture, EDS and IBM Global Services. In our experience, there
is an increasing trend among some of our clients and potential
clients to move to a preferred provider structure in which they
rationalize, or reduce, the number of consultants and technology
service providers from which they receive services. We also
believe that many of these clients and potential clients will
require that their preferred providers offer a full range of
services, including outsourcing services.
There is also an increasing focus on the
independence of management consulting and technology services
providers from auditing practices. Historically, some of the
largest management consulting and technology service providers
were part of the "Big 5" accounting firm networks. All
of these accounting firm networks, however, recently have
separated, at least in part, their consulting and technology
practices from their accounting and other businesses or
announced an intention to do so. Accenture Ltd., formerly known
as Andersen Consulting, formally separated from Andersen
Worldwide and Arthur Andersen, one of the "Big 5"
accounting firm networks, in August 2000. KPMG Consulting
Inc. completed its separation from KPMG LLP, the United
States firm of another "Big 5" accounting
network, in February 2001. In addition, in 2000,
Ernst & Young's management consulting business was
sold to Cap Gemini S.A., a European information technology
services company. In June 2002, Deloitte Touche Tohmatsu
announced plans to separate Deloitte Consulting, its management
consulting practice, through a private transaction, by the end
of 2002.
We have described in more detail the changing
industry conditions set forth above and others, as well as the
risks for us as a result of these changes, under "Risk
Factors— The management consulting and technology services
industry is highly competitive, and if we do not compete
effectively, our revenues and profitability may decline."
Methods
of Competition
We believe that the principal methods of
competition in our industry are the following:
•
the quality of the client service staff to be
    assigned to the engagement,
•
a track record of executing the type of work to
    be performed in the engagement,
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•
offering services that are focused on the
    client's needs and designed to achieve measurable results,
•
price,
•
the ability to work well with a client's
    employees,
•
industry, business process and information
    technology expertise and
•
offering a broad range of services, including
    outsourcing services.
We believe our competitive strengths are all
positive factors in helping make us one of the world's
leading management consulting and technology service providers.
In addition, we believe that many of our competitors specialize
in a narrow range of services, have a more limited geographic
reach than we do, or do not have deep industry expertise. There
are a number of consultants and service providers, however, that
effectively compete with us for engagements.
Because of the independence-related issues
described in this prospectus, we currently are at a competitive
disadvantage compared with our major competitors that are not
constrained by these issues. These competitors are able to enter
into strategic alliances, joint ventures and outsourcing
arrangements with, and offer contingent fee or other
risk-sharing arrangements to, their clients, without the
constraints of independence that limit us. Their clients also do
not limit their services because of independence-related issues.
In addition, we need to develop our outsourcing solution area,
which we have been constrained in developing due in part to
independence issues. We also need to develop stronger
capabilities in systems integration services, primarily in
Europe, in order to compete effectively for engagements that
require these services, particularly engagements to transform a
business and outsourcing engagements.
Competition
with the PricewaterhouseCoopers Firms
Although we have entered into noncompetition
arrangements with the PricewaterhouseCoopers firms, following
our separation the PricewaterhouseCoopers firms will continue to
be able to offer some management consulting and technology
services, such as most human resources services, including
through existing consulting and advisory services businesses
that are not being transferred to us. In addition, the
PricewaterhouseCoopers firms will be able to offer all
management consulting and technology services to clients that
have less than a specified amount of revenues in a particular
country or region where services will be provided, which is
$400 million in the United States, $1 billion in the
United Kingdom and $1 billion in Germany. These firms,
however, will not be permitted to provide any of the restricted
management consulting and technology services if these clients
have $5 billion or more in aggregate annual worldwide
consolidated revenues. This competition may result in confusion
among our clients and industry vendors and may also further
reduce the likelihood that leads from the PricewaterhouseCoopers
firms will continue following this offering. We believe that our
business in Europe will be most affected by the loss of these
leads and competition from the PricewaterhouseCoopers firms.
Please see "Arrangements with the PricewaterhouseCoopers
Network of Firms— Rollup Agreements— Noncompetition
Arrangements" for a description of the noncompetition
agreements between us and the PricewaterhouseCoopers firms.
Intellectual Property and Knowledge
Management
Our most valuable assets are our client service
staff and the building, renewing and sharing of knowledge,
skills and experiences among them. We believe the sharing of
knowledge, skills and experiences across our global business
enables us to provide consistent, quality services to our
clients.
Our intellectual property consists of our
reusable methodologies, techniques and expertise developed
through our consulting engagements, research and other
activities as well as our industry point-of-view reports,
training materials and other publications. We believe that this
intellectual property has significant and ongoing value, but we
also believe in the need to constantly update and develop new
intellectual property to stay ahead of industry, business and
technology trends, meet the needs of our clients today and
anticipate their future needs. We also believe that the skills
and processes through which our employees develop new
intellectual property are valuable.
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Proprietary
Methods and Tools
We offer a wide variety of services to our
clients. To manage these diverse services, we apply a common
methodology, called
Ascendant
, to harmonize our offerings
and manage our engagements.
Ascendant
is our method for
delivering our services and offers extensive online guidance on
how to plan and execute each type of project. It also includes
Ascendant TEAM
, our secure Internet-based project office
and collaboration tool which allows project team members,
including clients and vendors, to share project information and
work products.
Building
and Renewing the Skills of Our Client Service
Staff
Our global training program offers a combination
of classroom, self-paced and Internet-based training courses.
Our curriculum is accessible through an Internet-based learning
network and has a catalog of over 3,500 course offerings. In
fiscal year 2001, we provided over 200,000 days of
instructor-led training to more than 41,000 participants and
more than 1,000,000 hours of Internet-based learning. Our
global training center in Tampa, Florida also provides a
state-of-the-art facility dedicated to training our client
service staff. This center, along with our six other dedicated
regional training centers and local training facilities, allow
us to provide a useful combination of classroom, local and
remote training. Our training and skill development programs
have received recognition from a variety of sources. For
example,
Training,
a professional development magazine,
has ranked us number 20 on their 2002 annual list of the
Training
Top 100, a list of companies that the
magazine identifies as having a commitment to workforce
development.
Knowledge
Management
We provide our client service staff with global
access to skills and techniques. Through our knowledge
management repositories, our client service staff worldwide have
access to our latest knowledge and best practices, reference
material and learning from recent client engagements and
industry trends. We have extensive programs and technologies to
capture and share knowledge among our employees, such as our
dedicated knowledge management employees whose responsibilities
include identifying, evaluating and disseminating examples of
innovative services and materials throughout our organization.
Approximately 190,000 documents are continuously available to
our client service staff globally. Approximately 1,000 new
documents, on average, are added for knowledge sharing each
month to these repositories. In addition, we maintain a
proprietary database of corporate benchmark data, including
detailed process performance metrics for more than 150 major
companies worldwide, which are used as input as we help clients
transform their businesses.
Intellectual
Property Protection
We rely on a combination of trademark, service
mark, copyright and trade secret laws to protect our
intellectual property along with confidentiality and non-compete
agreements with our employees. We also use these agreements to
protect the intellectual property of third parties for which we
have a license. We depend on our clients to respect the
copyright on our materials, to limit distribution of our
materials to within their organizations and to use the
intellectual property we provide for their internal business
purposes only. We generally do not require our clients to enter
into any contractual obligations, other than customary
confidentiality agreements, with respect to their use of our
intellectual property. In addition, we endeavor to limit access
to, or distribution of, all confidential information generated
in the course of our business or disclosed to us by clients or
others. Our trademarks generally are perpetual in nature.
We pursue the protection of our trademarks in the
United States and several foreign jurisdictions. Policing
unauthorized use of our copyrighted material and trademarks is
difficult and expensive. Our efforts to protect our intellectual
property rights may not deter misappropriation of our
intellectual property. In addition, our competitors may adopt
product or service names similar to ours, impeding our ability
to build brand identity and possibly leading to customer
confusion. Our competitors also may independently develop
similar methodologies, techniques and expertise, and we would
have no claim against them. We may be subject to legal
proceedings and claims from time to time relating to the
intellectual property of others in the ordinary
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course of our business. We may incur substantial
expenses in defending against these third-party infringement
claims, regardless of their merit.
The PricewaterhouseCoopers firms will transfer to
us all their right, title and interest in intellectual property
that is used either exclusively or primarily in our business. We
will grant back to the PricewaterhouseCoopers firms a perpetual,
irrevocable, royalty-free and fully-paid license to use, in a
manner consistent with previous use in any business other than
our business, intellectual property that is used primarily, but
not exclusively, in our business. The PricewaterhouseCoopers
firms will retain ownership in intellectual property that is
neither exclusively nor primarily used in our business, and they
will grant to us a perpetual, irrevocable, royalty-free and
fully paid license to use, in a manner consistent with our
previous use, the retained intellectual property to the extent
it is used in our business.
Description of Facilities
Monday Ltd's principal executive office is
in Hamilton, Bermuda. Monday SCA's and Monday Finance
SA's principal executive offices are in Luxembourg,
Luxembourg. We have offices in over 180 locations in
52 countries or territories, including offices in Atlanta,
Chicago, Dallas, Frankfurt, Hong Kong, London, Madrid, New York,
Paris, Philadelphia, San Francisco, São Paulo, Sydney,
Tokyo and Toronto. We do not own any material real property.
Substantially all of our office space is leased. We believe that
our facilities are adequate to meet our needs in the near future.
We currently share office space with the
PricewaterhouseCoopers firms and will continue to do so
following our separation. The amount of space, however, that we
share currently is less than 50% of our total leased space and
will continue to decline prior to and after our separation.
Please see "Arrangements with the PricewaterhouseCoopers
Network of Firms—Assignment and Assumption Agreements,
Sublease Agreements and Master License Agreement" for a
description of the types of arrangements we will have with these
firms.
Legal Proceedings
We are involved in a number of judicial,
administrative and arbitration proceedings concerning matters
arising in the ordinary course of our business. We do not expect
that any of these matters, individually or in the aggregate,
will have a material impact on our results of operations or
financial condition.
The United States firm of PricewaterhouseCoopers,
PricewaterhouseCoopers LLP, and several other Big 5
accounting firms and their separated management consulting
businesses are defendants in
Warmack-Muskogee Limited
Partnership v. PricewaterhouseCoopers LLP, et al.,
Case
No. E2001-504-3, Chancery Court, Miller County, Arkansas.
The purported but uncertified plaintiff class action, filed in
October 2001, seeks unspecified damages for claims relating to
the manner in which certain travel and related expenses were
charged to clients of the defendants.
PricewaterhouseCoopers LLP is also responding to a subpoena
from the Inspector General of the United States Postal Service
relating to similar issues involving government clients. We are
not a party to any litigation, nor have we received any
subpoenas, relating to these matters. Under the terms of the
rollup agreements, we have agreed to take responsibility for 25%
of the costs of PricewaterhouseCoopers LLP in responding to
these matters, including any judgments or settlement costs.
PricewaterhouseCoopers LLP and we intend vigorously to
respond to these matters, and we do not believe that the outcome
of these matters will have a material adverse effect on our
financial position, results of operations or cash flows.
One of our Indonesian businesses, PT
PricewaterhouseCoopers Indonesia Konsultan, together with the
PricewaterhouseCoopers audit and business advisory and tax and
legal services firm in Indonesia and one of its partners are
defendants in a lawsuit in the District Court of South Jakarta,
Indonesia, Case No. 111/ Pdt/ G/2002/ PN Jak.Sel. The tort
action, filed on March 7, 2002, by the Province
Administration of East Kalimantan seeks $770 million in
damages for claims relating to a statement by
PricewaterhouseCoopers in its Indonesian Mining Industry Survey
and a related statement by a PricewaterhouseCoopers partner
commenting on a legal action being brought by the Province
Administration of East Kalimantan against a
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joint venture in East Kalimantan. Neither
PT PricewaterhouseCoopers Indonesia Konsultan nor any other
entity which is a part of our company participated in any of the
actions in dispute in the litigation, and we believe that
PT PricewaterhouseCoopers Indonesia Konsultan was joined as
a defendant in this action in error. We intend to vigorously
respond to this litigation, and we do not believe that the
outcome of this matter will have a material adverse effect on
our financial position, results of operations or cash flows.
Enforceability of Civil Liabilities Against
Us
Monday Ltd is organized under the laws of Bermuda
and Monday SCA and Monday Finance SA are organized under the
laws of Luxembourg, and a large part of their respective assets
will be located outside the United States. As a result, it may
not be possible to enforce court judgments obtained in the
United States against Monday Ltd, Monday SCA or Monday Finance
SA based on the civil liability provisions of the federal or
state securities laws of the United States in Bermuda,
Luxembourg or in countries other than the United States where
they will have assets. Because of Monday Ltd's and Monday
SCA's substantial contact with the United States, and
because most of Monday Ltd's directors and officers are
residents of the United States, you will likely be able to
effect service of process within the United States on Monday
Ltd. or Monday SCA or on such persons. However, there is some
doubt as to whether the courts of Bermuda, Luxembourg and other
countries would recognize or enforce judgments of United States
courts obtained against Monday Ltd, Monday SCA or Monday Finance
SA or their respective directors or officers based on the civil
liabilities provisions of the federal or state securities laws
of the United States or would hear actions against us or those
persons based on those laws. We have been advised by our legal
advisors in Bermuda and Luxembourg that the United States does
not currently have a treaty with Bermuda and Luxembourg,
respectively, providing for the reciprocal recognition and
enforcement of judgments in civil and commercial matters.
Therefore, a final judgment for the payment of money rendered by
any federal or state court in the United States based on civil
liability, whether or not based solely on United States federal
or state securities laws, would not automatically be enforceable
in Bermuda or Luxembourg. Similarly, those judgments may not be
enforceable in countries other than the United States.
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MANAGEMENT
In this section, the words "we,"
"us" and "our" refer only to Monday Ltd and
not any of its subsidiaries.
Our Directors and Executive Officers
Each of our board of directors and the board of
directors of Monday Finance SA currently consists of three
members. All our directors currently are partners of a
PricewaterhouseCoopers firm. Prior to the completion of the
concurrent offerings, Mr. Brown and Mr. Leipzig will
resign their positions. We plan to expand the size of our board
of directors following this offering, including by appointing a
number of independent outside directors and a number of our
partners to our board of directors. It is our current
expectation, however, that a majority of our board will be
comprised of independent outside directors. Once we have
completed our director search process, we expect to have between
nine and eleven directors.
Monday SCA is a Luxembourg partnership
limited by shares and, therefore, does not have any directors or
executive officers of its own. Monday Ltd is the general
partner, or manager, of Monday SCA and its directors and
executive officers are listed below. See "Our
Organizational Structure" for a description of our
management power with respect to Monday SCA.
The following table sets forth information as to
our directors and executive officers and the directors and
officers of Monday Finance SA.
Monday
Ltd
Name
Age
Position
Gregory D. Brenneman
40
President, Chief Executive Officer and Director
    Nominee
Willard W. Brittain
54
Chief Operating Officer
J. Frank Brown
46
Deputy Chairman and Director
Michael S. Collins
49
Managing Partner, Americas theatre
Dennis J. Dall
60
Managing Partner, Asia Pacific theatre
Steven C. DeSutter
48
Senior Vice President, Corporate Communications
David V. Dockray
49
Managing Partner, EMEA theatre
Ronald B. Hauben
44
General Counsel and Corporate Secretary
Thomas A. Leipzig
58
Director
Bennett R. Machtiger
44
Senior Vice President and Chief Marketing Officer
Clive D. Newton
49
Senior Vice President, Human Resources
Thomas C. O'Neill
57
Director and Chairman of the Board
Jose Luiz T. Rossi
43
Managing Partner, SOACAT theatre
Frank S. Sowinski
46
Chief Financial and Administrative Officer
Monday
Finance SA
Name
Age
Position
Gregory D. Brenneman
40
President and Chief Executive Officer
J. Frank Brown
46
Director
Thomas A. Leipzig
58
Director
Thomas C. O'Neill
57
Director and Chairman of the Board
Frank S. Sowinski
46
Chief Financial Officer
Business
Experience and Background
Gregory D. Brenneman
is the President, Chief Executive Officer and a director nominee
of our company. He assumed his current duties in June 2002.
From May 2001 to June 2002, Mr. Brenneman was the
Chairman and Chief Executive Officer of TurnWorks, Inc., a
private equity firm he founded in 1994. From
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September 1996 to May 2001,
Mr. Brenneman was the President and Chief Operating Officer
of Continental Airlines. Prior to this he served as its Chief
Operating Officer. Prior to his positions at Continental and
TurnWorks, Inc., from 1987 to 1995 Mr. Brenneman held
various positions with Bain and Company, Inc., including partner
and a member of the Policy Committee of the Board of Directors,
where he specialized in corporate turnarounds.
Mr. Brenneman serves on the board of directors of The Home
Depot, Inc., J. Crew Group, Inc. and Automatic Data
Processing, Inc.
Willard W. Brittain
is the Chief Operating Officer of our
company. He assumed the duties of chief operating officer for
the management consulting and technology services businesses of
the PricewaterhouseCoopers network of firms in August 2000. From
July 1998 until August 2000, he was Vice Chairman of the
PricewaterhouseCoopers network of firms with responsibility for
the lines of service. From July 1997 until July 1998, he served
as the Vice Chairman of the Price Waterhouse network of firms
with responsibility for the Price Waterhouse lines of service.
From 1995 to 1997, Mr. Brittain was Vice Chairman of the United
States firm of Price Waterhouse responsible for its lines of
service. Mr. Brittain joined the Price Waterhouse firm in
the United States in 1974 and was admitted as a partner in 1983.
J. Frank Brown
currently is a director and the Deputy
Chairman of our company. Since August 2000, he has been the
Global Leader for Assurance and Business Advisory Services of
the PricewaterhouseCoopers network of firms. From July 1998 to
July 2000, Mr. Brown was the Managing Partner of
PricewaterhouseCoopers New York area offices. From April 1995 to
June 1998, Mr. Brown was the Managing Partner of the New
York area offices of Price Waterhouse. He joined the Price
Waterhouse firm in the United States in 1980 and was admitted as
a partner in 1989. Mr. Brown will resign as a director of
our company prior to the closing of this offering.
Michael S. Collins
is the Managing Partner, Americas
theatre, which includes the United States, Canada and Mexico. He
assumed his current duties for the management consulting and
technology services businesses of the PricewaterhouseCoopers
network of firms in March 2000. Prior to this, he held the
consulting leadership position of Managing Partner of the east
business unit of the PricewaterhouseCoopers firm in the United
States from July 1998 to February 2000. From July 1997 to June
1998, he was Managing Partner of the United States eastern
region of the Price Waterhouse network of firms. From July 1995
to June 1997, he was Managing Partner of the United States
southeast region of the Price Waterhouse network of firms.
Mr. Collins joined the Price Waterhouse firm in the United
States in 1985 as a partner.
Dennis J. Dall
is
the Managing Partner, Asia Pacific theatre. He assumed his
current duties for the management consulting and technology
services businesses of the PricewaterhouseCoopers network of
firms in July 1998. From January 1996 until July 1998, he served
as the Managing Partner for the Price Waterhouse firms operating
in Australia, New Zealand and Indonesia. Mr. Dall joined
the Price Waterhouse firm in Australia in 1977 and was admitted
as a partner in the same year.
Steven C. DeSutter
is the Senior Vice President of
Corporate Communications of our company. He assumed his duties
in June 2002. From August 2001 to June 2002,
Mr. DeSutter was a senior vice president at TurnWorks,
Inc., a private equity firm founded by our President and CEO,
Greg Brenneman. From February 2000 to June 2001, he
was senior vice president of marketing for Powerway Inc., an
Internet solution provider of supply chain and management
software. Prior to that, from July 1999 to
January 2000, Mr. DeSutter was the executive vice
president of Executrain, a professional IT training firm. From
May 1997 to June 1999, Mr. DeSutter was president
of ABS-QE, a global auditing and consulting firm. From
January 1978 to December 1996, Mr. DeSutter held
numerous positions with subsidiaries of British Petroleum,
including director of corporate marketing and change management,
manager of mergers and acquisitions and general manager.
David V. Dockray
is
the Managing Partner, EMEA theatre, which includes countries in
Europe, the Middle East and Africa. He assumed his current
duties for the management consulting and technology services
businesses of the PricewaterhouseCoopers network of firms in
July 2001. From July 1998 until July 2001, he was the global
leader of the Products industry group for the management
consulting and technology services business of the
PricewaterhouseCoopers network of firms. From December 1995
until July 1998, he served as the Executive Partner of the
Coopers & Lybrand consulting business in the United Kingdom.
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Mr. Dockray joined the Coopers & Lybrand
firm in the United Kingdom in 1982 and was admitted as a partner
in 1988.
Ronald B. Hauben
is
our General Counsel and Corporate Secretary. He assumed the
duties of general counsel for the management consulting and
technology services businesses of the PricewaterhouseCoopers
network of firms in July 2001. From July 1998 until July 2001,
he served as global chief corporate counsel for the
PricewaterhouseCoopers network of firms. From July 1997 to July
1998, he served as global chief corporate counsel for the Price
Waterhouse network of firms. Mr. Hauben joined the Price
Waterhouse firm in the United States in 1989 and was admitted as
a partner in 1997.
Thomas A. Leipzig
currently is a director of our
company. Since October 1998, he has been the head of the Global
Regulatory and Independence Task Force of the
PricewaterhouseCoopers network of firms and has been responsible
for the implementation of various restructuring efforts. From
October 1991 to June 1998, Mr. Leipzig headed the United
States corporate finance business of the Price Waterhouse
network of firms. He joined the Price Waterhouse firm in the
United States in 1969 and was admitted as a partner in 1979.
Mr. Leipzig will resign as a director of our company prior
to the closing of this offering.
Bennett R.
Machtiger
is the Senior Vice President
and Chief Marketing Officer of our company. He assumed his
duties in June 2002. From September 1986 to June 2002,
Mr. Machtiger worked for Young & Rubicam Inc., a member
of the WPP Group, which is a global marketing and
communications organization. While at Young & Rubicam,
Mr. Machtiger held numerous senior management positions,
including managing partner of one of Young & Rubicam's
largest client teams from January 1999 to June 2002, chief
operating officer of the Marsteller Advertising unit of Young
& Rubicam from January 1996 to December 1998 and worldwide
account managing director for another large client team from
1991 to 1995.
Clive D. Newton
is
our Senior Vice President, Human Resources. He assumed his
current duties, as Global Leader of Human Capital, for the
management consulting and technology services businesses of the
PricewaterhouseCoopers network of firms in September 2000. From
July 1998 to June 2000, he was global head of Human Resources
for the PricewaterhouseCoopers network of firms. Prior to that
he was global head of Human Resources for the management
consulting businesses of the Price Waterhouse network of firms
from July 1996 to June 1998. Mr. Newton joined the Price
Waterhouse network of firms in 1982 and was admitted as a
partner in 1989.
Thomas C. O'Neill
is a director and the Chairman of our
board of directors. From January 2002 until June 2002, he served
as our Chief Executive Officer. From July 2000 until January
2002, he served as the Chief Operating Officer of the
PricewaterhouseCoopers network of firms. From July 1998 until
July 2001, he was the Chief Executive Officer of the
PricewaterhouseCoopers firm in Canada. From July 1996 until July
1998, when the mergers of the Coopers & Lybrand and Price
Waterhouse network of firms occurred, he served as Chairman and
Chief Executive Officer of the Price Waterhouse firm in Canada.
Mr. O'Neill joined the Price Waterhouse firm in Canada
in 1967 and was admitted as a partner in 1978.
Jose Luiz T. Rossi
is the Managing Partner, SOACAT
theatre, which includes the countries in South America and
Central America. He assumed his current duties for the
management consulting and technology services businesses of the
PricewaterhouseCoopers network of firms in August 2001. From
July 1998 until August 2001, he was in charge of all the
technology services areas of the PricewaterhouseCoopers firms
operating in South America and Central America. From July 1996
until June 1998, he was responsible for the same duties for the
Price Waterhouse firms operating in South and Central America.
Mr. Rossi joined the Price Waterhouse firm in Brazil in
1986 and was admitted as a partner in 1989.
Frank S. Sowinski
is
the Chief Financial and Administrative Officer of our company.
He assumed his duties in May 2002. Prior to that,
Mr. Sowinski worked for 17 years at Dun &
Bradstreet, a leading business information provider listed on
the New York Stock Exchange. While at Dun & Bradstreet,
Mr. Sowinski held numerous senior positions in finance,
general management and marketing, including chief financial
officer of Dun & Bradstreet Corporation from November
1996 to September 1999, president of the Dun &
Bradstreet Operating Company from September 1999 to October 2000
and senior vice president of the Dun & Bradstreet
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Corporation from October 2000 to April 2001.
Mr. Sowinski serves on the board of directors of Buckeye
Pipe Line Company, LP.
Board of Directors
Upon the completion of our separation, our
bye-laws will provide for the division of our board into three
classes, as nearly equal in number as possible, with one class
to be originally elected for a term expiring at the annual
general meeting of shareholders to be held in 2003, another
class to be originally elected for a term expiring at the annual
general meeting of shareholders to be held in 2004 and the final
class to be originally elected for a term expiring at the annual
general meeting of shareholders to be held in 2005. Each
director will hold office until his or her successor is duly
elected and qualified. Commencing with the 2003 annual general
meeting of shareholders, directors elected to succeed directors
whose terms then expire will be elected for a term of three
years.
Our bye-laws provide that directors may be
removed only for cause by the affirmative vote of the holders of
at least a majority of the voting power of all voting shares
then outstanding, voting together as a single class.
All of our executive officers will be appointed
by and will serve at the discretion of our board of directors.
There are no family relationships among any of our directors and
executive officers.
Our board of directors will have three primary
committees:
•
an audit committee,
•
a compensation committee and
•
a nominating committee.
The audit committee's primary duties and
responsibilities will be:
•
assisting our board of directors with respect to
    the adequacy of our internal controls and financial reporting
    process and the reliability of our financial statements,
•
assisting our board of directors with respect to
    the independence and performance of our internal auditors and
    independent auditors,
•
assisting our board of directors with respect to
    our compliance with legal and regulatory requirements and
•
recommending to our board of directors the
    appointment of the independent auditors.
The compensation committee, or a subcommittee
established by the compensation committee, will administer our
equity-based compensation and benefits plan and will review and
approve base and incentive pay and other matters relating to the
compensation of our executive officers. The compensation
committee also will review and make recommendations to the full
board of directors regarding board compensation.
The nominating committee will make
recommendations to our board of directors regarding the size and
composition of our board of directors, recruit and recommend
candidates for election to our board of directors, appoint
committee chairs and recommend directors for committee
membership, lead succession planning efforts, particularly with
respect to our chief executive officer, and approve programs for
senior executive development.
From time to time, our board of directors may
establish other committees to facilitate the management of our
business.
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Outside Director Compensation
We have not yet paid any compensation to outside
directors. We currently anticipate that, in the future, outside
directors will receive the following compensation, including
pursuant to our 2003 Non-Employee Directors' Incentive Plan:
•
an annual retainer of $50,000,
•
an initial grant of an option to purchase 15,000
    Class A common shares upon election to our board of
    directors and
•
a grant of an option to purchase 5,000
    Class A common shares on each date of our annual meeting of
    shareholders.
We currently anticipate that options granted to
our directors will vest over four years and will generally
expire after 10 years. Other than annual retainer fees to
be paid to committee chairs, which are expected to range between
$2,500 and $7,500, we do not currently intend to pay meeting
fees or any other fees to our directors. We anticipate that our
directors will have the opportunity to defer or receive in
shares in whole or in part, all cash received as part of their
annual or committee chair retainer.
Our outside directors will be required to satisfy
minimum share ownership policies that we establish from time to
time. Our current intention is for our directors to maintain a
shareholding of at least three times their annual retainer in
the form of our Class A common shares. Our directors will
have three years from the time of appointment or election to
reach this ownership level.
Executive Compensation
In connection with our separation, our named
executive officers, as defined below, will enter into an
employment agreement with one of the businesses that will be
transferred to us. These agreements are described below.
Compensation
Prior to our separation, our business was
conducted through a series of separate partnerships and
corporations under the control of local partners and
shareholders of the PricewaterhouseCoopers firms. The
corporations were operated in a manner similar to that of a
corporation. For these partnerships, earnings were available to
their partners as partnerships distributions. Partnership
distributions are not executive compensation in the customary
sense of that term because partnership distributions are
comprised of distributions of current earnings. Therefore it is
not practical to differentiate between the ownership components
of distributions to partners and shareholders from the
compensation components of such distributions. In connection
with our separation, we are restructuring the manner in which
our partners are compensated, as described below. As a result,
historic individual compensation information for our named
executive officers does not accurately reflect the compensation
we expect our named executive officers to earn. Accordingly, the
following table will set forth the expected compensation of our
chief executive officer and our four other most highly
compensated executive officers for fiscal year 2003, which we
expect to determine in the near future. We refer to these
individuals as our named executive officers.
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Summary Compensation Table
Annual Compensation
Long Term Compensation
Awards
Payouts
Other
Restricted
Securities
Annual
Share
Underlying
All
Name and
Salary
Bonus
Compensation
Awards
Options
LTIP
Other
Principal Position
Year
(1)
($)
($)
(2)
($)
(3)
($)
(4)
(#)
(5)
Payouts
Compensation
(6)
Gregory D. Brenneman
2003
$
1,000,000
$
1,500,000
$
$
6,250,000
1,000,000
—
$
President and Chief Executive Officer
Thomas C. O'Neill
2003
900,000
300,000
—
—
Chairman of the Board
Willard W. Brittain
2003
810,000
270,000
—
—
Chief Operating Officer
Frank S. Sowinski
2003
810,000
270,000
1,500,000
—
Chief Financial and Administrative Officer
Michael S. Collins
2003
675,000
225,000
—
—
Managing Partner, Americas Theatre
David V. Dockray
2003
675,000
225,000
—
—
Managing Partner, EMEA Theatre
(7)
(1)
The information presented in this summary
    compensation table is the expected compensation for our named
    executive officers for fiscal year 2003.
(2)
Amounts in this column represent the target
    annual incentive bonus established for our named executive
    officers for our 2003 fiscal year. Amounts actually paid to our
    named executive officers could be more or less than this target
    amount based upon our performance during our 2003 fiscal year.
(3)
Amounts in this column shown for
    Messrs. Brenneman, O'Neill, Brittain, Sowinski and
    Collins represent a lump-sum work-life allowance that they will
    be entitled to receive during our 2003 fiscal year. The amount
    shown for Mr. Dockray represents an allowance that he will
    be entitled to receive during our 2003 fiscal year to cover
    expenses related to his maintenance of accommodations in London,
    as required for business purposes. In addition, pursuant to his
    executive employment agreement, Mr. Brenneman will be
    entitled to the following arrangements: an apartment in New York
    City; an office in The Woodlands, Texas; use of a private jet
    for business travel; and reimbursement of his expenses of one
    club selected by him. Pursuant to his executive employment
    agreement, Mr. Sowinski will be entitled to an apartment in
    the New York City or Philadelphia metropolitan area.
(4)
Pursuant to their executive employment
    agreements, Messrs. Brenneman and Sowinski will be entitled
    to receive an equity award at or immediately after the closing
    of the Class A common shares offering in the form of
    restricted Class A common shares which will vest pro rata
    over three years commencing on June 2, 2003, for
    Mr. Brenneman and on the first anniversary of the closing
    of the concurrent Class A common shares offering for
    Mr. Sowinski. Messrs. O'Neill, Brittain, Collins
    and Dockray also will be eligible to receive restricted share
    units in connection with the closing of this offering. Please
    see "—Partner Compensation" for a description of
    our equity awards.
(5)
Pursuant to their respective executive employment
    agreements, Mr. Brenneman will be entitled to receive an option
    to purchase 1,000,000 Class A common shares that will vest
    pro rata over four years commencing on June 2, 2003,
    and will have an exercise price equal to the initial public
    offering price of Class A common shares, and
    Mr. Sowinski will be entitled to receive an option to
    purchase our Class A common shares that will be valued at
    $3,600,000 (based on the fair market value of Class A
    common shares at the time of grant), that will vest pro rata
    over three years commencing on the first anniversary of the
    date of grant and that will have an exercise price equal to the
    fair market value of a Class A common share at the time of
    grant. The amount in this column shown for Mr. Sowinski
    assumes that the exercise price of his option will be $ ;
    however, the option will be granted 30 days after the
    closing of this offering.
(6)
Amounts in this column represent the
    contributions we expect to make on behalf of our named executive
    officers to our defined contribution retirement plans assuming
    each named executive officer made the maximum permitted employee
    contribution to such plans and the amounts described in the next
    sentence. Pursuant to their respective executive employment
    agreements, Mr. Brenneman will be entitled to receive a
    one-time allowance of $250,000 in connection with closing down
    of various businesses at TurnWorks, Inc., his private equity
    firm, and Mr. Sowinski will be entitled to receive a
    one-time signing bonus of $120,000 payable within 30 days
    after the closing of this offering. In addition, pursuant to
    Mr. Brenneman's agreement, we will pay the premium for
    one or more life insurance policies maintained by him or us on
    his behalf.
(7)
Mr. Dockray will be paid in UK pounds
    sterling. The salary and bonus amounts shown will be paid at an
    exchange rate of
    $1 = £        ,
    the reference exchange rate for June 28, 2002. The amount
    shown for "Other Annual Compensation" reflect an
    exchange rate of
    £1 = $        ,
    the reference exchange rate for June 28, 2002.
Aggregate compensation paid to key employees who
are not named executive officers may exceed that paid to the
named executive officers.
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Executive Employment
Agreements
The following description sets forth the material
terms of the employment agreements for our named executive
officers, copies of which will be filed as an exhibit to the
registration statement of which this prospectus forms a part.
Gregory D. Brenneman.
Mr. Brenneman's
executive employment agreement has a term of three years
effective as of June 2, 2002, and this term will be
extended automatically for additional three-year periods, unless
it is earlier terminated. During Mr. Brenneman's
employment with us, he will serve as our President and Chief
Executive Officer. We have agreed to cause Mr. Brenneman to
be nominated for election as a director of our board of
directors and to use our best efforts to secure his election.
Further, at any time beginning on the date of the closing of the
concurrent Class A common shares offering,
Mr. Brenneman may request to become our Chairman of the
Board, in which case we will use our best efforts to secure his
appointment. We agree that due regard will be given to
Mr. Brenneman's views in the selection of the initial
members of our board of directors.
Mr. Brenneman's base compensation will
be at least $1,000,000 per year and he will be entitled to a
target annual bonus opportunity equal to 150% of his base
salary. For the period beginning on June 2, 2002, and
ending on June 30, 2003, he will receive a guaranteed cash
bonus of $1,625,000.
In addition, Mr. Brenneman will be entitled
to receive the following awards and other compensation.
•
An equity award at the closing of the concurrent
    Class A common shares offering in the form of restricted
    Class A common shares that will vest pro rata over
    three years commencing on June 2, 2003, and will be
    valued at $6,250,000.
•
A one-time grant of an option to purchase
    1,000,000 Class A common shares that will vest pro rata
    over four years commencing on June 2, 2003, and will
    have an exercise price equal to the initial public offering
    price of our Class A common shares.
•
An annual grant of an option to purchase our
    Class A common shares that will be equal in value to 400%
    of Mr. Brenneman's base salary then in effect, based
    on the fair market value of our Class A common shares at
    the time of grant. His annual grant in the year 2003, however,
    will be an option to purchase at least 200,000 Class A
    common shares that will vest pro rata over four years
    commencing on the first anniversary of the date of grant and
    will have an exercise price equal to the fair market value of a
    Class A common share at the time of grant.
•
Participation in a long-term incentive plan that
    will be developed by the board of directors with
    Mr. Brenneman's assistance.
•
Perquisites, including those described in
    footnote (3) to the summary compensation table under
    "Management— Executive Compensation".
•
A one time allowance of $250,000 in connection
    with closing down various businesses at TurnWorks, Inc.,
    Mr. Brenneman's private equity firm.
We have also agreed to provide him with a
supplemental executive retirement plan, or SERP. Pursuant to the
SERP, Mr. Brenneman will receive a base retirement benefit
in the form of an annual single-life annuity in an amount equal
to the product of (1) 2.5% times (2) the number of his
credited years of service, defined as two times the number of
his actual years of service with us, up to 30 credited years of
service, times (3) his final average compensation. For
these purposes, final average compensation means the greater of
$2,500,000 or the average of the five highest annual cash
compensation amounts, or, if he has been employed less than five
years by us, the average over the full years of employment, paid
to him during the consecutive 10 calendar years immediately
preceding his termination of employment. Amounts payable under
any other retirement arrangement, other than benefits
attributable to elective deferrals or other contributions made
by Mr. Brenneman, will be offset against the SERP benefit.
If Mr. Brenneman's employment is
terminated by us for reasons other than death, disability or
cause, as described in the agreement, or by him with good
reason, as described below, or, after a change in control of us,
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by us for reasons other than cause or by him for
any reason, then he will be entitled to the following severance
benefits, in addition to any unpaid and owed amounts:
•
vesting of all granted options, which will remain
    exercisable until the earlier of the original expiration date of
    such options or 5 years after such termination, and
    restricted shares;
•
payment under the long-term incentive plan as if
    Mr. Brenneman had remained employed by us through the end
    of each relevant performance period, less any amounts paid to
    him under the long-term incentive plan upon the occurrence of a
    change in control of us;
•
a severance payment equal to 300% of the sum of
    (1) Mr. Brenneman's base salary then in effect
    and (2) the greater of his target annual bonus then in
    effect or his last-paid annual bonus; and
•
continued accrual of SERP benefits, welfare
    benefits and office and related services for a period of
    36 months following Mr. Brenneman's termination
    of employment,
Under Mr. Brenneman's employment
agreement, "good reason" means the assignment of
duties materially inconsistent with Mr. Brenneman's
positions, a material diminution in the nature or scope of his
authority, responsibilities or titles, our requiring without his
consent that he be permanently based outside of The Woodlands,
Texas metropolitan area, a material breach by us of any
provision of his agreement which, if correctable, remains
uncorrected, the failure to elect or reelect him to any of his
positions, including his not becoming our Chairman of the Board
if he so requests and our decision to not renew his employment
agreement.
If the closing of the concurrent Class A
common shares offering does not occur on or prior to
December 31, 2002, Mr. Brenneman may, during the
subsequent 30-day period, terminate his employment with us. In
this case, Mr. Brenneman will be entitled to receive a cash
lump sum payment of $7,500,000 and continued welfare benefits
and office and related services for a period of 36 months
following such termination.
Mr. Brenneman will be entitled to receive
life insurance providing an aggregate death benefit in an amount
at least equal to the severance payment and a payment in an
amount equal to the severance payment in the case of termination
upon disability. In addition, in connection with any payments or
provision of benefits following a change in control,
Mr. Brenneman will be entitled to receive an additional
amount necessary to offset any federal excise tax in respect of
such payments or benefits.
Mr. Brenneman has agreed not to compete with
us, solicit our current or prospective clients or solicit or
employ current or recently terminated employees for
twelve months following his termination of employment with
us. The non-competition covenants will not apply if
Mr. Brenneman declines to accept the severance payment or
otherwise returns the severance payment, or if his employment is
terminated as a result of death, disability or in connection
with a change in control.
Thomas C. O'Neill.
Mr. O'Neill's
executive employment agreement has a term of three years
effective as of our separation, and this term will be extended
automatically for additional one-year periods. During
Mr. O'Neill's employment with us, he will serve
as our Chairman of the Board, subject to Mr. Brenneman's
request to become our Chairman of the Board. His compensation
will be in accordance with our policies. His base salary will be
at least $900,000 per year and he will be entitled to a target
annual bonus opportunity of at least one-third of his base
salary. In addition, he will be entitled to receive periodic
grants of equity under our equity compensation plans then in
effect.
Mr. O'Neill has agreed not to compete
with us, solicit our current or prospective clients or solicit
or employ our employees or recently terminated employees for a
period ending on the later of three years following the date of
our separation or twelve months following his termination
of employment with us. If Mr. O'Neill were to breach
any of these non-competition covenants prior to the third
anniversary of our separation, his agreement requires that he
pay liquidated damages in an amount equal to his prior-year cash
compensation.
If Mr. O'Neill is terminated by us
without cause, he will be entitled to severance in an amount
equal to 24 months of the sum of his monthly base salary
and one-twelfth of his annual target cash incentive
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compensation, each as then in effect. Further, if
he is terminated without cause, all unvested equity grants will
become 100% vested, all equity subject to restrictions will
generally become unrestricted, he will be entitled to continued
health and welfare benefits for a period of 24 months and
he will be entitled to outplacement services. Any payment of
severance or provision of such benefits will immediately cease
if he breaches his confidentiality covenant or any of his
non-competition covenants. If Mr. O'Neill terminates
his employment for good reason, as described below, his
termination will be deemed a termination without cause. If
Mr. O'Neill is terminated without cause within
twelve months of a change in control or he terminates his
employment for good reason, then he will no longer be bound by
his non-competition covenants or the liquidated damages
provision.
Mr. O'Neill may terminate his
employment with us at any time, as long as we are given
three months' prior written notice. Upon such a
termination, Mr. O'Neill will be required to forfeit
all unvested equity grants, unless the termination is for good
reason.
Under Mr. O'Neill's employment
agreement, "good reason" means (1) at any time, a
material breach by us of our contractual obligations to him
under his agreement or under any material employee benefit plan
in which he participates or (2) within twelve months
of a change in control, a reduction in his compensation, a
material diminution in his position and responsibilities or a
relocation of his office without his consent that would result
in a longer commute, in each case as compared to prior to the
change in control.
In connection with any payments or provision of
benefits following a change in control, Mr. O'Neill
will be entitled to receive an additional amount necessary to
offset any federal excise tax in respect of such payments or
benefits, unless the aggregate value of all such payments or
benefits is less than 115% of his excise tax safe harbor, in
which case such payments and benefits will be reduced to avoid
such excise tax.
Willard W. Brittain; Michael S. Collins;
David V. Dockray.
The executive
employment agreements of Messrs. Brittain, Collins and
Dockray are similar to that of Mr. O'Neill, with the
differences described below. During their employment with us,
they will serve as our Chief Operating Officer, Managing Partner
of the Americas theatre and Managing Partner of the EMEA
theatre, respectively. The base salary of each of
Messrs. Brittain, Collins and Dockray will be at least
$810,000, $675,000 and $675,000, respectively, per year, and
each will be entitled to a target annual bonus opportunity of at
least one-third of his respective base salary.
The executive employment agreements for
Messrs. Brittain, Collins and Dockray will contain similar
non-competition covenants and liquidated damages provision as
those of Mr. O'Neill, as described above. However,
consistent with partner employment agreements entered into in
the United Kingdom, the non-competition covenants under
Mr. Dockray's employment agreement will apply for a
period of twelve months following his termination of
employment. Mr. Dockray will also be bound by the
non-competition covenants for three years after our separation
pursuant to a non-competition and indemnification agreement
similar to the redemption and non-competition agreement
described under "Arrangements with Our Partners—
Redemption and Non-Competition Agreement."
The consequences of a termination without cause
or for good reason of Messrs. Brittain, Collins and Dockray
will be the same as for Mr. O'Neill, except that the
period for severance payments and the provision of continued
health and welfare benefits will be 18 months. If any of
Messrs. Brittain, Collins and Dockray is terminated without
cause within twelve months of a change in control or he
terminates his employment for good reason, then he will no
longer be bound by his non-competition covenants. For their
purposes, "good reason" has the same meaning as it has
for Mr. O'Neill.
Each of Messrs. Brittain and Collins may
terminate his employment with us at any time, as long as we are
given three months' prior written notice. Consistent
with partner employment agreements entered into in the United
Kingdom, Mr. Dockray may terminate his employment with us
at any time, as long we are given twelve months' prior
written notice.
Frank Sowinski.
The executive employment agreement
of Mr. Sowinski is similar to those of
Messrs. Brittain and Collins, with the differences
described below. The differences reflect the fact that he joined
us in May 2002 and was not a partner of or otherwise affiliated
with the PricewaterhouseCoopers network of firms prior to that
time. During Mr. Sowinski's employment with us, he will
serve as our Chief
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Financial and Administrative Officer. For the
first year of his employment, Mr. Sowinski's base
salary will be $810,000 per year, he will receive a guaranteed
cash bonus of $270,000 and a one-time sign-on bonus in cash of
$120,000 payable within 30 days after the closing of the
concurrent Class A common shares offering.
Mr. Sowinski's guarantee of cash compensation will not
continue after the first year of his employment. After the first
year, his base salary will be at least $810,000 per year and he
will entitled to a target annual bonus opportunity of at least
one-third of his base salary.
In addition, Mr. Sowinski will be entitled
to receive the following awards.
•
An equity award immediately after the closing of
    the concurrent Class A common shares offering in the form
    of restricted Class A common shares that will vest pro rata
    over three years commencing on the first anniversary of the
    closing of the concurrent Class A common shares offering
    and will be valued at $1,500,000.
•
A one-time grant of an option to purchase our
    Class A common shares to be granted 30 days after the
    closing of the concurrent Class A common shares offering,
    that will be valued at $3,600,000, based on the fair market
    value of our Class A common shares at the time of grant,
    that will vest pro rata over three years commencing on the
    first anniversary of the date of grant and that will have an
    exercise price equal to the fair market value of a Class A
    common share at the time of grant.
•
An option to purchase our Class A common
    shares with a target value of $720,000 using our option
    valuation methodology in effect at the time of grant, where the
    actual size of the award will be based on
    Mr. Sowinski's performance, which option will be
    granted after the end of fiscal year 2003, will vest pro rata
    over three years commencing on the first anniversary of the
    date of grant and will have an exercise price equal to the fair
    market value of a Class A common share at the time of grant.
The executive employment agreement for
Mr. Sowinski will contain similar non-competition covenants
and liquidated damages provision as those of Messrs. Brittain
and Collins. However, if Mr. Sowinski were to breach any of
these non-competition covenants at any time within
18 months following his termination of employment, his
agreement requires that he pay liquidated damages in an amount
equal to 100% of his first-year guaranteed cash compensation.
The executive employment agreement of Mr. Sowinski provides
that if he is terminated without cause within 12 months of
a change in control or he terminates his employment with good
reason, then he will no longer be bound by his non-competition
covenants. For his purposes, "good reason" has the
same meaning as it has for Messrs. O'Neill, Brittain,
Collins and Dockray.
If Mr. Sowinski's employment is
terminated without cause or for good reason, the consequences
will be the same as for Messrs. Brittain and Collins. If
Mr. Sowinski voluntarily terminates his employment on or
prior to April 25, 2003, he will be required to repay his
sign-on bonus and his grant of restricted Class A common
shares will be forfeited.
In addition, if, within six months from
May 30, 2002, when Mr. Brenneman joined us,
(1) Mr. Sowinski is terminated without cause,
(2) other than for cause, his responsibilities and duties
are significantly reduced or the terms and conditions of his
employment are significantly and adversely modified or
(3) his office is relocated outside of New York City or
Philadelphia, resulting in a commute that would exceed his
current commute, and, as a consequence, he resigns from his
employment with us, Mr. Sowinski will be entitled to
receive, within 30 days of the occurrence of any such event:
•
a severance payment of $1,080,000;
•
vesting of all granted restricted shares and
    options;
•
continued employee benefits for a period of
    twelve months;
•
retention of his sign-on bonus; and
•
access to office and outplacement services for a
    reasonable period of time as necessary.
Further, if the closing of the concurrent
Class A common shares offering does not occur, or we are
otherwise unable to obtain relief from our independence
obligations, on or prior to December 31, 2002,
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Mr. Sowinski may, during the subsequent
30-day period, terminate his employment with us, in which case
he will no longer be bound by his non-competition covenants.
Partner Compensation
Employment
Agreements
In connection with our separation, each of our
partners has entered into an employment agreement with one of
the businesses that will be transferred to us. These agreements
will become effective on the date of our separation.
Compensation
As a public company, we will no longer distribute
our earnings directly to our partners. Following the concurrent
offerings, the annual compensation of our partners will consist
of both cash and equity components and a benefits program to be
adopted as of the closing of the concurrent offerings. The cash
component will consist of a fixed element and a variable cash
incentive element. Our policy for compensation of our continuing
partners following the concurrent offerings is that our
continuing partners will take an average reduction in the cash
component of their total target income for the applicable fiscal
year of approximately 20%, generally ranging for individual
partners from 5% to 30% and for executive officers from 30% to
50%. Partners with the highest income generally will have the
greatest percentage reductions. Our board of directors will
approve total target income for each fiscal year. Although our
partners have entered into employment agreements providing that
they will receive compensation in accordance with our
compensation policy, labor laws in some countries in which we
operate may restrict our ability to enforce these reductions. In
light of the reduction in the cash component of our
partners' total target income, we intend to make fiscal
year 2003 grants of restricted share units or other awards that
function in an equivalent manner, which we also refer to as
restricted share units, to our partners under the 2003 Share
Incentive Plan described below in connection with the closing of
this offering. Each of these units will represent the right to
receive one Class A common share and will be fully vested
at the closing of the concurrent offerings. It is expected that
Class A common shares underlying the units will have a
value at the time of grant equal to the approximate aggregate
reduction to our partners' cash compensation for fiscal
year 2003. Actual grants made to individual partners will be
based on that partner's actual reduction in the cash
component of his or her total target income. The Class A
common shares underlying the units will be deliverable to our
partners according to the schedule set forth below.
Shares underlying
restricted share
units delivered
Years after the closing of
to partners
this offering
20%
1 year
20%
2 years
20%
3 years
15%
4 years
25%
The later of 5 years
and termination of
employment or service with us.
All of the Class A common shares underlying
the restricted share units will be delivered to our partners, or
their estates, who, before the fifth anniversary of the closing
of the concurrent Class A common shares offering, die,
become disabled while employed by us, or while in a service
relationship with us, or terminate employment or service with us
at or after age 55. For any other partner who ceases to be our
employee or provide services during the five year period after
the date of our separation, the Class A common shares
underlying their restricted share units will not be delivered to
them until five years after the date of our separation.
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For periods after fiscal year 2003, the equity
component will consist of stock options exercisable for
Class A common shares. These options will be subject to
vesting conditions that require continued employment or service
with us and, in some cases, the achievement of specified
performance targets. We expect that after fiscal year 2003, the
value of stock option grants will, in the aggregate, comprise
20% of our partners' total target income. Actual stock
option grants will be based on, among other things, market
conditions, our performance and individual performance. Changes
to our compensation policy must be approved by a majority of our
independent directors.
Retirement
Programs
As of the closing of this offering, our partners,
including our executive officers, will cease participating in
the retirement plans of the PricewaterhouseCoopers firms and
will begin to participate in new retirement programs established
by us and our affiliates. We are in the process of determining
the terms of the retirement programs that we will put in place,
which may vary depending on local legal requirements.
Our named executive officers in the United
States, with the exception of Mr. Collins, will participate
in our tax-qualified cash balance retirement plan and our
nonqualified cash balance plan. Under the cash balance formula,
each of Messrs. Brenneman, O'Neill, Brittain and
Sowinski will have a bookkeeping account that will be credited
each pay period with 3.5% of eligible pay, which generally
includes base pay, overtime, bonuses and deferrals under our
deferred compensation plan and our other plans, but excluding
sign-on bonuses and equity compensation. In addition, each of
their accounts will be credited with earnings based on a
specified interest rate. For the tax-qualified plan, the
interest rate will be the same rate as for 10-year U.S. Treasury
securities, and for the nonqualified plan, the interest rate
will be the tax-qualified rate plus 1%. The estimated annual
benefits payable upon retirement at normal retirement age for
each of Messrs. Brenneman, O'Neill, Brittain and
Sowinski are set forth below.
Name
Estimated Annual Benefit
Gregory D. Brenneman
$
Thomas C. O'Neill
Willard W. Brittain
Frank S. Sowinski
Non-Competition; Transfer
Restrictions
Our executive officers, along with our other
partners, have agreed to non-competition and related
arrangements and limitations on their ability to transfer the
Class A common shares, the Class X common shares,
Monday SCA Class I common shares or the exchangeable shares
of one of Monday SCA's subsidiaries they received in
connection with our separation. These arrangements are described
in "Arrangements with Our Partners."
2003 Share Incentive Plan
The following description sets forth the material
terms of our 2003 Share Incentive Plan, which we refer to as our
share incentive plan, and which has been filed as an exhibit to
the registration statement of which this prospectus forms a part.
General
The share incentive plan permits the grant of
nonqualified stock options, restricted shares, restricted share
units, share appreciation rights and other share-based awards to
all employees or service providers of Monday Ltd and our
affiliates, as well as individuals in anticipation of their
becoming employees or service providers. Awards may also, in the
discretion of the compensation committee, be made in assumption
of or in substitution for outstanding awards previously granted
by a company acquired by us or with which we combine. The
maximum number of Class A common shares in the aggregate
that may be subject to awards
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under our share incentive plan, 2003
Non-Management Share Option Plan, which we refer to as our
non-management share option plan, and the 2003 Non-Employee
Directors, Incentive Plan, which we refer to as our
directors' incentive plan, will not exceed  million.
Class A common shares underlying substitute awards granted
in connection with an acquisition of a company will not count
against the maximum number of Class A common shares
available for awards under our share incentive plan. In
addition, our Class A common shares purchased on the open
market by a direct or indirect subsidiary may be used to satisfy
awards, and these repurchased shares will not count against the
maximum number of Class A common shares available for
awards under any share incentive plan, non-management share
option plan or non-employee directors' incentive plan.
Unless approved by a majority of our independent directors, the
number of Class A common shares, which are newly issued or
purchased by a direct or indirect subsidiary, granted or subject
to awards granted under the share incentive plan, non-management
share option plan and directors' incentive plan in fiscal
years 2003 and 2004, including Class A common shares
subject to restricted share units granted to our partners and
options granted to our other employees at the time of this
offering, will not be more than   million. These
limits, as well as the number of shares subject to outstanding
awards, the exercise price of outstanding awards and other award
terms, are subject to appropriate adjustment on account of share
splits, share dividends, mergers, recapitalizations and other
significant events relating to our Class A common shares.
Our Class A common shares that are covered by awards that
expire, terminate, lapse or are cancelled will again be
available for the grant of awards under the share incentive
plan. Our Class A common shares issued under the share
incentive plan will consist of newly issued Class A common
shares or shares that are purchased by a direct or indirect
subsidiary.
Administration
The share incentive plan will be administered by
the compensation committee of our board of directors, which may
delegate its duties and powers in whole or in part as it
determines. After the closing of the concurrent offerings, the
compensation committee will be comprised of independent
directors. Our board of directors, however, may, in its sole
discretion, take any action delegated to the committee as it
deems necessary. The compensation committee will have the sole
discretion to determine the participants to whom awards may be
granted under the share incentive plan and the manner in which
these awards will vest. Awards will be granted in numbers and at
times during the term of the share incentive plan as the
compensation committee shall determine. The compensation
committee will be authorized to interpret the share incentive
plan, to establish, amend and rescind any rules and regulations
relating to the share incentive plan and to make any other
determinations that it deems necessary or desirable for the
administration of the share incentive plan. The compensation
committee will be able to correct any defect, supply any
omission or reconcile any inconsistency in the share incentive
plan in the manner and to the extent the compensation committee
deems necessary or desirable.
Options
The compensation committee will determine the
exercise price for each option, which, except in the case of a
substitute award made in connection with an acquisition of a
company, must be no less than the fair market value of our
Class A common shares on the date the option is granted. In
general, a participant may exercise an option by written notice
and payment of the exercise price in one of the following ways:
•
in cash,
•
by the transfer of a number of our Class A
    common shares already owned by the participant for at least six
    months, or another period as established in accordance with
    United States generally accepted accounting principles, with a
    fair market value equal to the exercise price,
•
in a combination of cash and the transfer of a
    number of our Class A common shares already owned by the
    participant for at least six months, or another period as
    established in accordance with United States generally accepted
    accounting principles, with a fair market value equal to the
    exercise price or
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•
through the delivery of irrevocable instructions
    to a broker to sell our Class A common shares obtained upon
    the exercise of the options and deliver promptly to us an amount
    out of the proceeds of the sale equal to the exercise price for
    the Class A common shares being purchased.
Restricted
Share Units, Restricted Shares and Other Share-Based
Awards
The compensation committee may grant awards of
restricted share units, restricted shares and other share-based
awards that are valued in whole or in part by reference to, or
are otherwise based on the fair market value of, our
Class A common shares. The restricted share units,
restricted shares and other share-based awards will be subject
to the terms and conditions established by the compensation
committee.
Share
Appreciation Rights
The compensation committee may grant share
appreciation rights independent of, or in connection with, an
option. The exercise price per share of a share appreciation
right will be determined by the compensation committee.
Generally, each share appreciation right will entitle a
participant upon exercise to an amount equal to the excess of
the fair market value on the exercise date of one Class A
common share over the product of the exercise price per share
multiplied by the number of Class A common shares covered
by the share appreciation right. The exercise of a share
appreciation right granted in connection with an option will
extinguish the related option. Payment will be made in
Class A common shares, valued at fair market value, in cash
or partly in Class A common shares and partly in cash, all
as determined by the compensation committee.
Transferability
Unless otherwise determined by the compensation
committee, awards granted under the share incentive plan are not
transferable other than by will or by the laws of descent and
distribution.
Change
in Control
In the event of a change in control, unless
specifically provided otherwise in an award document,
outstanding awards will become fully vested and exercisable and
any restrictions applicable to awards will automatically lapse.
The compensation committee may provide for the cancellation of
an award and payment of cash or other consideration to the
holder of the award in consideration for such cancellation.
Amendment
and Termination
Our board of directors will be able to amend,
alter or discontinue the share incentive plan at any time. Our
board of directors may not make, however, any amendment,
alteration or discontinuation that would impair in a material
manner any of the rights of a participant under any awards
previously granted without the participant's consent. In
addition, our board of directors may not increase the number of
our Class A common shares reserved for purposes of the
share incentive plan without the approval of our shareholders
and, until June 30, 2005, without the approval of a
majority of our independent directors.
2003 Non-Management Share-Based Plan
The following description sets forth the material
terms of our non-management share plan, which has been filed as
an exhibit to the registration statement of which this
prospectus forms a part.
General
The maximum number of Class A common shares
in the aggregate that may be subject to awards under our
non-management share plan, share incentive plan and
directors' incentive plan will not
exceed   million. The number of Class A common
shares subject to outstanding awards, the exercise price of
outstanding awards and other award terms, are subject to
appropriate adjustment on account of share splits, share
dividends, mergers, recapitalizations and other significant
events relating to our Class A common shares.
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Our Class A common shares that are covered
by awards that expire, terminate, lapse or are cancelled will
again be available for the grant of awards under our
non-management share plan. In addition, our Class A common
shares purchased on the open market by a direct or indirect
subsidiary may be used to satisfy awards, and these repurchased
shares will not count against the maximum number of Class A
common shares available for awards under any share incentive
plan, non-management share plan or non-employee directors'
incentive plan. Our Class A common shares issued under the
non-management share plan will consist of newly issued
Class A common shares or shares that are purchased by a
direct or indirect subsidiary.
Administration
The non-management share plan will be
administered by the compensation committee of our board of
directors, which may delegate its duties and powers in whole or
in part as it determines. Our board of directors, however, may,
in its sole discretion, take any action delegated to the
committee as it deems necessary. The compensation committee will
be authorized to interpret the non-management share plan, to
establish, amend and rescind any rules and regulations relating
to the non-management share plan and to make any other
determinations that it deems necessary or desirable for the
administration of the non-management share plan.
Eligibility
We currently expect that each of our employees
and service providers and employees and service providers of
some of our affiliates who do not have the title of a
"partner" or a title of comparable dignity will be
eligible to participate in the non-management share plan,
subject to applicable laws in each jurisdiction.
Awards
We will grant each participant an option to
purchase our Class A common shares that have an aggregate
fair market value, as determined on the date of grant of such
option, equal to approximately 10% of the average base salary of
all participants in his or her level. No participant, however,
will be granted an option to purchase our Class A common
shares that have an aggregate fair market value, as determined
on the date of grant, in excess of $25,000. The exercise price
per Class A common share under an option will be no less
than 85% of the fair market value of a Class A common share
on the date the option is granted. The term of each option will
be no greater than 27 months from the date of grant and,
subject to the compensation committee's discretion and
adjustments required by applicable law, each option generally
will vest in three equal installments on the ninth, eighteenth
and twenty-sixth month anniversaries of the date of grant. An
option may be exercised for all or any part of the Class A
common shares for which it is then exercisable for a period of
30 days from the date it vests. Any vested options that have not
been exercised during this 30-day period will be automatically
forfeited unless there has been a change in control.
Change
in Control
In the event of a change in control, unless
specifically provided otherwise in an award document,
outstanding options will become fully vested and exercisable and
any restrictions applicable to options will automatically lapse.
The compensation committee may provide for the cancellation of
an option and payment of cash or other consideration to the
holder of the option in consideration for such cancellation.
Amendment
and Termination
Our board of directors may amend, alter or
discontinue the non-management share plan. Our board of
directors may not, however, amend, alter or discontinue the
non-management share plan in a manner that would increase the
number of Class A common shares authorized for the
non-management share option plan without the approval of our
shareholders and, until June 30, 2005, without the approval
of a majority of our independent directors. In addition, without
a participant's consent our board of directors may
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not amend, alter or discontinue the
non-management share plan in a manner that would materially
impair the participant's rights or obligations under any
option granted under the plan.
The non-management share plan will terminate upon
the earlier of the termination of the non-management share plan
by our board of directors or the third anniversary of the
effective date of the plan.
2003 Non-Employee Directors' Incentive
Plan
We intend to adopt an incentive plan for our
outside directors.
Further Share Plans for Employees or Service
Providers outside the United States
Our board of directors or compensation committee
also may establish further employee share plans for employees or
service providers outside of the United States, which will be
based upon our share incentive plan and non-management share
plan but modified to take account of tax, legal and exchange
control requirements outside the United States. All allocations
will count against the maximum number of Class A common
shares that may be subject to awards granted under our share
incentive plan and non-management share plan.
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ARRANGEMENTS WITH THE PRICEWATERHOUSECOOPERS
NETWORK OF FIRMS
In connection with our separation from the
PricewaterhouseCoopers network of firms, substantially all of
these firms with management consulting and technology services
businesses will transfer to us, directly or indirectly, the
assets and liabilities comprising these businesses in separate
transactions. For more information regarding the assets and
liabilities being transferred to us in these transactions, see
our unaudited pro forma combined financial statements and notes
to these statements. In addition, the businesses being
transferred to us do not include some PricewaterhouseCoopers
consulting or advisory services businesses that historically
have not been operated together with the businesses being
transferred to us. Instead, they have been more integrated or
associated with other businesses within the
PricewaterhouseCoopers network of firms. These other consulting
or advisory services businesses include:
•
global risk management services, which include
    small-scale enterprise resource planning software
    implementations, security consulting, project management and
    data management services,
•
treasury and credit risk management services for
    financial services companies, which include some packaged
    software implementation services, and
•
financial advisory services for companies
    involved in reorganizations and bankruptcies, which include
    business process consulting services.
The assets and liabilities and results of
operations of these other businesses are not included in our
financial statements.
We will issue our equity or equity of our
subsidiaries to various firms in the PricewaterhouseCoopers
network, and partners or shareholders of some other firms in the
network, in connection with our separation in a variety of ways.
Firms in the PricewaterhouseCoopers network, or their partners
or shareholders, transferring their management consulting and
technology services businesses to us will exchange their
interests in these businesses for our equity or equity of our
subsidiaries. Some firms may receive cash in exchange for their
interests. Other firms of the PricewaterhouseCoopers network
will fall into one of the following categories:
•
Firms with no management consulting and
    technology services businesses.
If
    these firms enter into noncompetition agreements with us, we
    will give them a cash payment.
•
Firms not invited to transfer their
    management consulting and technology services businesses to
    us.
Except as described below, if
    these firms agree to enter into noncompetition agreements with
    us and wind down their management consulting and technology
    services businesses that would not be allowed to compete with us
    pursuant to the terms of the noncompetition agreements, we will
    give them a cash payment. Otherwise, they will lose the right to
    use the PricewaterhouseCoopers name in connection with their
    management consulting and technology services businesses, and we
    will be free to compete with them. In the case of firms with
    business process management services businesses that are not
    being transferred to us, these businesses will remain with the
    PricewaterhouseCoopers firms and continue to be operated.
    Excluding business process management services businesses, the
    management consulting and technology services businesses of
    firms not invited to transfer these businesses represented
    approximately 2% of our revenues for fiscal year 2001. The
    business process management services businesses not being
    transferred to us represented approximately 3% of our revenues
    for fiscal year 2001.
•
Firms electing to transfer their management
    consulting and technology services businesses to us but which
    are unable to satisfy participation conditions at the time of
    the concurrent Class A common shares
    offering.
The board of the global
    coordinating entity for the PricewaterhouseCoopers network of
    firms, in its good faith discretion, has the right under the
    rollup agreements to allow these firms to complete the transfer
    to us within a period of time, not to exceed one year, following
    the closing of the concurrent Class A common shares
    offering. If this board grants such an extension, we are
    required to close the transfer during the extension period
    pursuant to the terms of the rollup agreement. If this board
    does not grant such an extension or if a PricewaterhouseCoopers
    firm ultimately fails to consummate a transfer within the
    extension period, the firm will be asked to enter into a
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noncompetition agreement with us, to wind down
    its management consulting and technology services business that
    would not be allowed to compete with us pursuant to the terms of
    the noncompetition agreement and to execute a shareholders
    agreement if applicable. If the firm enters into these
    arrangements with us, we will give them a cash payment or
    Class A common shares, at our discretion, which shares
    would be in an amount less than the firm would have received if
    it had transferred its management consulting and technology
    services business to us. If the firm fails to enter into these
    arrangements with us, the firm may no longer use the
    PricewaterhouseCoopers name in connection with its management
    consulting and technology services business, and we will be free
    to compete with the firm. We currently expect that the
    PricewaterhouseCoopers firm in China will transfer its
    management consulting and technology services business to us
    after the closing of this offering due to regulatory reasons.
The amount of consideration to be paid to the
PricewaterhouseCoopers firms that enter into a noncompetition
agreement with us will depend on a variety of factors, including
the size of the particular PricewaterhouseCoopers firms. The
total compensation paid to these firms is not expected to exceed
$  million.
In connection with our separation, we or one of
our subsidiaries have entered or will enter into the following
agreements with firms in PricewaterhouseCoopers network, which
are described below in more detail:
•
Rollup Agreements,
•
Business Process Management Services Transfer
    Agreement,
•
Transition Services Agreements,
•
Redemption and Non-Competition Agreements,
•
Shareholders Agreement,
•
Assignment and Assumption Agreements,
•
Sublease Agreements and
•
Master License Agreements.
In addition, the firms in the
PricewaterhouseCoopers network will enter into country-specific
agreements necessary to implement the local structure of the
separation transaction. A form of each of the agreements
described below has been filed as an exhibit to the registration
statement of which this prospectus forms a part. In the
aggregate, we expect that, following our separation, we will
continue to owe the PricewaterhouseCoopers firms between
$500 million and $600 million relating to accounts
payable, accrued payroll and other accrued liabilities.
For purposes of the following summaries of these
agreements, the reference to "date of our separation"
means the date on which a PricewaterhouseCoopers firm transfers
its management consulting and technology services business to
us, some of which may occur after the closing of the concurrent
offerings.
Rollup Agreements
Each firm in the PricewaterhouseCoopers network
that will participate in our separation has entered into a
rollup agreement with us or Monday SCA pursuant to which,
shortly before the closing of the concurrent offerings, the firm
will place its management consulting and technology services
business in escrow. In a number of countries, we have entered
into rollup agreements directly with the partners or
shareholders of some of the PricewaterhouseCoopers firms because
these partners or shareholders directly own either the assets
of, or equity in, a management consulting and technology
services business that is being transferred to us. The countries
include Australia, Belgium, France, Iceland, Italy, Pakistan,
Portugal, Sweden and Switzerland. Immediately prior to the
closing of the concurrent offerings, the management consulting
and technology services businesses being transferred to us will
be released to us from escrow. As a result of our separation, our
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partners will withdraw from their respective
PricewaterhouseCoopers firms and, along with the other employees
of the management consulting and technology services businesses,
will become our employees or employees of one of our
subsidiaries.
The respective rollup agreements have
substantially similar terms and provide for, among other things,
the transfer from these firms to us, directly or indirectly, of
the assets and liabilities which together will comprise our
business. Changes necessary to reflect the local structure of
the separation transaction in a specific country and other local
requirements or agreements that are unique to different
jurisdictions are provided in a local structure term sheet for
each firm, which is attached to that firm's rollup
agreement as an exhibit.
Separation
from the PricewaterhouseCoopers Network
Each PricewaterhouseCoopers firm participating in
our separation will transfer the assets and liabilities
comprising its management consulting and technology services
business, or exchange the equity interests in entities holding
these assets, for our equity or equity of one of our
subsidiaries. The aggregate number of Class A common shares
we will issue to these firms, or in some cases their partners
and shareholders,
is       million, which, assuming
an estimated initial public offering price of
$     , will have an aggregate value of
approximately $      billion. In
connection with their withdrawal from their respective
PricewaterhouseCoopers firms, our partners will receive
approximately      million of these
Class A common shares, which will have an estimated
aggregate value of approximately
$    million.
Approximately     million shares issued to
one of the PricewaterhouseCoopers firms will be purchased by
Monday Ltd or one of its subsidiaries immediately after the
closing of the concurrent offerings, resulting in
approximately       million shares
outstanding. For purposes of calculating the number of
Class A common shares and value of these shares in the
prior sentences, we have treated all shares issued by our
subsidiaries in connection with our separation as if they had
been redeemed or exchanged on a one-for-one basis for our
Class A common shares. Some firms may receive cash in
exchange for their interests.
Each rollup agreement contains customary
representations and warranties made by us and by the
PricewaterhouseCoopers firm participating in the separation with
respect to the businesses being transferred to us. All
representations and warranties will terminate on the closing of
our separation and no party to the rollup agreement will have
liability due to any breach of representations and warranties.
Each rollup agreement also contains customary
conditions to the consummation of our separation. In addition to
the customary conditions, the rollup agreements also include a
closing condition requiring that the per share price of our
Class A common shares as set forth in the underwriting
agreement for the concurrent Class A common shares offering
is approved by at least 75% of the global board of
PricewaterhouseCoopers International Limited, which is the
global coordinating body for the PricewaterhouseCoopers network,
and a closing condition requiring that PricewaterhouseCoopers
LLP, the United States firm, receive a no-action letter from the
Securities and Exchange Commission confirming that our
activities will not be attributed to the PricewaterhouseCoopers
network for purposes of the SEC independence rules.
Each rollup agreement contains customary
covenants made for our benefit by the PricewaterhouseCoopers
firm and customary covenants made by us for the benefit of the
PricewaterhouseCoopers firm. In addition to customary covenants
relating to our actions after the concurrent offerings, the
rollup agreements contain the following covenants:
•
a covenant requiring compliance with the terms of
    the SEC no-action letter and
•
a covenant governing our and our affiliates'
    rights to use the PwC Consulting name, and a limited right to
    use the PricewaterhouseCoopers name for up to four years.
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Each PricewaterhouseCoopers firm participating in
our separation also has agreed to a covenant stating that if the
closing under its rollup agreement is not consummated, except
through no fault of the PricewaterhouseCoopers firm or as a
result of failure to obtain partner approval:
•
the firm will discontinue the use of the
    PricewaterhouseCoopers name in connection with its management
    consulting and technology services business within six months and
•
we will be permitted to compete with the firm and
    use the PricewaterhouseCoopers name in connection with our
    business.
Allocation
of Shares to the PricewaterhouseCoopers Firms
The allocation of Class A common shares and
Monday SCA Class I common shares among the
PricewaterhouseCoopers firms was based upon an agreed
methodology taking into account a variety of factors, including
the following:
•
expenses incurred by the various firms for the
    general benefit of the PricewaterhouseCoopers network of firms,
    such as transaction costs relating to our separation and global
    or regional redundancy costs,
•
the net book value of the management consulting
    and technology services businesses that are being contributed to
    us and
•
the relative value of the management consulting
    and technology services businesses being contributed to us,
    which takes into account factors such as the revenues, profits
    and growth trends of each business.
Noncompetition
Arrangements
Each of the rollup agreements contains
noncompetition arrangements among us, each participating
PricewaterhouseCoopers firm and PricewaterhouseCoopers
International Limited. For a period of five years after our
separation, we and our affiliates will not engage, directly or
indirectly, or make an equity investment in any person or enter
into a strategic alliance with any person for the purpose of
engaging, in the provision of tax, audit and other services, as
defined below. In turn, the participating PricewaterhouseCoopers
firms, PricewaterhouseCoopers International Limited and other
parties bound by the non-compete arrangements will not engage,
directly or indirectly, or make an equity investment in any
person or enter into a strategic alliance with any person for
the purpose of engaging, in the provision of consulting
services, as defined below. The term of the noncompetition
arrangements may be of shorter duration in some countries due to
legal restrictions on enforceability.
However, each rollup agreement permits each
participating PricewaterhouseCoopers firm,
PricewaterhouseCoopers International Limited and other parties
bound by the non-compete arrangements to acquire or merge with
another party that provides some consulting services accounting
for less than 50% of its total revenues as long as the
consulting services are divested no later than twelve months
after the acquisition or merger. Conversely, we may acquire or
merge with another party that provides tax, audit and other
services accounting for less than 50% of its total revenues so
long as we divest these services no later than twelve months
after the acquisition or merger. The rollup agreements also do
not prohibit the investment or the retention of an investment by
any of the restricted parties in no more than 5% of the issued
and outstanding ownership interests of a business engaged in
consulting services or tax, audit and other services, as the
case may be.
In addition, for a period of three years after
our separation, we, on the one hand, and each participating
PricewaterhouseCoopers firm, PricewaterhouseCoopers
International Limited and other parties bound by the non-compete
arrangements, on the other hand, have agreed not to solicit,
recruit, hire or encourage to leave their employment, each
other's partners or client service staff, unless such
partner or employee has not been so employed for at least
12 months. For this purpose, general solicitations or
advertisements will not be deemed to be solicitations. The term
of the nonsolicitation restrictions may be of shorter duration
in some countries due to legal restrictions on enforceability.
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The rollup agreements generally define consulting
services to include the following:
•
corporate-wide strategic planning services,
    except human resources services, tax and legal services,
    transaction services, corporate finance services and business
    recovery services,
•
large scale process services that transform and
    change multiple departments or organizations within a business
    and involve multiple applications, modules or subcomponents,
    except human resources services,
•
large scale information technology implementation
    and integration services that involve multiple departments or
    organizations within a business and involve multiple
    applications, modules or subcomponents, except risk management
    systems and treasury systems,
•
managed application solutions, comprising
    business process outsourcing, application outsourcing services,
    application services provision, information technology
    outsourcing and hosting services, except for internal audit
    services, security and compliance services, treasury, corporate
    finance, business recovery, dispute analysis and investigation
    and transactions services, tax and legal services,
    Internet-based information portal services, bookkeeping and
    company administrative services and pension benefits and human
    resources services, and
•
within a particular country or region, other
    services provided by us at a substantial level, which level
    varies by country or region, so long as the
    PricewaterhouseCoopers firm in that country or region does not
    provide these services at a substantial level in that country or
    region or the PricewaterhouseCoopers firms, taken together, do
    not provide these services at a substantial level on a worldwide
    basis, in each case immediately after giving effect to our
    separation.
Consulting services generally do not include,
however, any services to a particular client if the
client's aggregated consolidated revenues, including
revenues of other companies under common control with the
client, in the country where such services are to be performed
are less than an amount that varies depending on the country. In
the United States, the client's revenues must be less than
$400 million. In the United Kingdom and Germany, the
revenues must be less than $1 billion. In addition,
consulting services may not include any services to a particular
client if the client's aggregate annual worldwide
consolidated revenues, including revenues of other companies
under common control with the client, are $5 billion or
more. In some countries, the noncompetition arrangements do not
restrict the PricewaterhouseCoopers firms from performing
consulting services for a number of specified companies and
organizations or types of companies or organizations.
The rollup agreements generally define tax, audit
and other services to include the following:
•
attestation, including accounting, regulatory and
    audit services,
•
tax services, including consulting and compliance
    services, and legal services,
•
corporate finance, business recovery, dispute
    analysis and investigation services and transaction services,
    except corporate-wide strategic planning, information technology
    and outsourcing opportunities and merger integration and
    restructuring services and privatization services for
    international funding organizations or institutions,
•
assurance services, including risk management and
    systems assurance services, which do not include information
    technology, data warehousing, customer management, systems
    integration, world wide web services or the conduct or
    publication of surveys,
•
pension and benefit actuarial services and
•
within a particular country or region, other
    services provided by the PricewaterhouseCoopers firm at a
    substantial level, which level varies by country or region, so
    long as we do not provide these services at a substantial level
    either in the particular country or region or on a worldwide
    basis, in each case as of our separation.
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Indemnification
By the PricewaterhouseCoopers firms.
Each PricewaterhouseCoopers firm
participating in our separation will indemnify
PricewaterhouseCoopers International Limited, us and our
respective affiliates and each of our respective officers,
directors, employees, consulting partners, agents and
representatives against claims and losses arising from:
•
any breach of any obligation of the
    PricewaterhouseCoopers firm or any of its subsidiaries contained
    in the transaction agreements,
•
any of the excluded liabilities not assumed by
    us, which generally includes liabilities that do not relate to
    the management consulting and technology services businesses
    transferred to us, or
•
any of the excluded assets not transferred to us,
    which generally includes liabilities that do not relate to the
    management consulting and technology services businesses
    transferred to us.
The indemnification provisions do not cover
losses incurred due to breaches of the representations and
warranties made by the PricewaterhouseCoopers firm in the rollup
agreements or losses incurred by any of our partners with
respect to excluded taxes.
By us.
From
and after the closing of the concurrent Class A common
shares offering, we will indemnify each PricewaterhouseCoopers
firm participating in our separation, its affiliates,
PricewaterhouseCoopers International Limited and each of their
respective officers, directors, employees, partners, agents and
representatives against claims and losses arising from:
•
any breach of any of our obligations or any of
    our affiliates' obligations contained in the transaction
    agreements,
•
any of the liabilities assumed by us, which
    generally include pre-closing liabilities of the management
    consulting and technology services businesses transferred to us,
•
any of the acquired assets transferred to us or
•
the operation of the management consulting and
    technology services businesses after our separation.
We also will indemnify PricewaterhouseCoopers
International Limited, each PricewaterhouseCoopers firm
participating in our separation, their respective officers,
directors, employees, partners and agents and each person who
controls, within Section 15 of the Securities Act of 1933
or Section 20 of the Securities and Exchange Act of 1934,
against claims and losses arising from material misstatements or
omissions in the registration statement of which this prospectus
forms a part.
The indemnification provisions do not cover
losses incurred due to breaches of the representations and
warranties made by us and our subsidiaries in the rollup
agreements.
The indemnification obligations by each
PricewaterhouseCoopers firm participating in our separation, on
the one hand, and by us, on the other hand, will not terminate
except through the operation of applicable statutes of
limitation and only apply to losses in excess of available
insurance.
The rollup agreements also specify procedures
with respect to claims subject to indemnification and related
matters.
Termination
The rollup agreements may be terminated under
some circumstances. Some provisions of each rollup agreement,
including those relating to a failure to consummate the closing,
confidentiality, publicity and expenses, survive the termination
of the rollup agreements.
Net
Book Value Adjustment
Each PricewaterhouseCoopers firm participating in
our separation has agreed that its management consulting and
technology services business transferred to us by it shall have
a predetermined net book value
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at closing. The amount varies from firm to firm.
The aggregate predetermined net book value as defined in the
rollup agreements is approximately
$           million.
Within 90 days after our separation, each
PricewaterhouseCoopers firm participating in our separation will
prepare and deliver to us a closing statement stating the net
book value of the management consulting and technology services
business transferred to us by the firm.
The applicable net book value will become final
and binding on the parties on the 90th day following the
delivery of the closing statement, unless we deliver to the
PricewaterhouseCoopers firm written notice of disagreement
before this date. In this case, we and the firm will try to
resolve our differences during the next 20 business days. If we
cannot agree on the final net book value, the dispute will be
submitted to a determination by an independent accounting firm
and this determination of the net book value will become final.
Within four business days after the net book
values become final and binding on the parties, either we will
pay the firm the amount by which the net book value of the
assets contributed to us by that firm exceeds the assumed net
book value or the firm will pay us the amount by which the net
book value of these assets is less than the assumed net book
value. Any undisputed amounts will be paid once final.
Dispute
Resolution
Disputes among the parties to each rollup
agreement will be submitted to arbitration, subject to
provisions described in the local structure term sheet attached
as an exhibit to each rollup agreement.
Business Process Management Services Transfer
Agreement
In connection with our separation, some of the
PricewaterhouseCoopers firms will transfer a portion of the
PricewaterhouseCoopers business process management services
business to Monday SCA. The business to be transferred primarily
involves a group of related contracts and related assets and
liabilities. The PricewaterhouseCoopers firms that own this
business will enter into a transfer agreement with Monday SCA
pursuant to which these firms will transfer this business to
Monday SCA. Pursuant to the transfer agreement, some of the
PricewaterhouseCoopers partners involved with this business will
withdraw from their PricewaterhouseCoopers firms and become our
employees or employees of one of our subsidiaries and will
receive our Class A common shares, Monday SCA shares or
exchangeable shares of one of Monday SCA's subsidiaries in
exchange for their partnership interests.
The transfer agreement will contain
representations and warranties substantially similar to those
contained in the rollup agreements. As in the rollup agreements,
all representations and warranties will terminate on the closing
of our separation, and no parties to the transfer agreement will
have liability due to any breach of the representations and
warranties. In addition to containing conditions that are
substantially similar to the conditions in the rollup
agreements, the transfer agreement will contain a condition that
all PricewaterhouseCoopers firms party to the transfer agreement
close the transfer of their business process management services
business, unless PricewaterhouseCoopers International Limited
determines that failure to do so by a party is not material to
this business as a whole.
The PricewaterhouseCoopers firms party to the
agreement will indemnify us for liabilities relating to this
business. The noncompetition provisions in the rollup agreements
that relate to business process management services will govern
the business transferred to us and the business process
management services assets and liabilities that will remain with
the PricewaterhouseCoopers network of firms. The net book value
adjustment provisions of the transfer agreement are
substantially the same as in the rollup agreements. The closing
of the transfer of this business will occur simultaneously with
the closing of our separation.
Transition Services Agreements
Each firm in the PricewaterhouseCoopers network
that participates in our separation will enter into a transition
services agreement with us or with one of our operating units.
These transition services agreements
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are necessary to assist us to function as a
stand-alone entity until we develop our own systems and support
functions.
Services
the PricewaterhouseCoopers Firms are Providing to
Us
Under the transition services agreements, the
participating PricewaterhouseCoopers firms will provide us the
same or similar services we received prior to our separation for
a period of up to three years from the closing of the concurrent
Class A common shares offering. Our intention is to
terminate the services provided to us by the
PricewaterhouseCoopers firms as soon as is reasonably
practicable. As required by the SEC, these services will be
provided at cost. These costs will include direct costs of the
services, the overhead directly attributable to providing the
services and transaction taxes. The services provided to us by
the PricewaterhouseCoopers firms under each transition services
agreement may include a combination of:
•
infrastructure, including facilities management,
    office services, travel, procurement and physical security,
•
technology solutions, including
    telecommunications, network services, electronic security,
    application hosting, personal computer deployment and management,
•
knowledge management, including document
    retention,
•
human resources, including PeopleSoft
    Informational Systems Support,
•
training, including learning information
    repositories and course evaluations,
•
finance, including transaction processing and
    time and expense processing,
•
public company financial and accounting
    information services, including supply of information necessary
    for us to prepare our own public company reports and
•
other services, including support services, help
    desk services, enterprise application development, project
    services, event support and risk management services.
Growth
and Transition
The PricewaterhouseCoopers firms will provide us
with an increased volume of services as we undergo natural
growth in our existing markets through the offer of our existing
products. The PricewaterhouseCoopers firms also may provide us
with additional services to meet our growth needs arising on
account of changes in our structure, changes in the services
offered to our clients or our services delivery processes, but
they are not obligated to do so. In addition to paying for the
operating costs for the volume of services we will receive as of
the date of the closing of the concurrent Class A common
shares offering, we will also pay for operating, investment and
termination costs related to any increased volume or additional
services provided to us after our separation.
Performance
Levels
Under the transition services agreements, the
PricewaterhouseCoopers firms will perform the services provided
to us at the closing of the concurrent Class A common
shares offering with a level of accuracy, quality, completeness,
timeliness, priority and responsiveness that meets the level of
performance they deliver to their own operations. Any additional
services provided to us will be provided at a performance level
mutually agreed upon by the PricewaterhouseCoopers firms and us.
With regards to financial and accounting information services,
we have specified that they are to be provided with a level of
accuracy and timeliness that allow us to comply with our public
disclosure obligations.
Limitation
of Liability
Generally, under the transition services
agreements, the aggregate liability arising from disputes or
claims between us and of each of the PricewaterhouseCoopers
firms will be limited to the aggregate fees paid for services
during the six month period immediately preceding the event
giving rise to the claim, or in the case of
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an event giving rise to liability occurring
during the first six months of the transition services
agreement, the total fees budgeted to be payable during this
initial six month period.
Confidentiality
We and the PricewaterhouseCoopers firms will
agree to hold in confidence and not disclose to any third party
any confidential information received in connection with
providing or receiving services under the transition services
agreements. We and the PricewaterhouseCoopers firms will also
agree to use all confidential information received by either of
us solely in connection with the provision or receipt of
services under the transition services agreements.
Indemnification
We and the PricewaterhouseCoopers firms will
agree to indemnify, defend and hold harmless each other and any
of our directors, officers, employees, partners, principals,
successors and permitted assigns from uninsured losses arising
from, by reason of or resulting from claims by third parties
arising from, relating to or in connection with a breach of the
provisions of the transition services agreements or negligence
causing death, personal injury or damage to real or tangible
personal property or the gross negligence, fraud or reckless or
willful misconduct by the indemnifying party, except to the
extent caused by the breach, negligence or other fault of the
indemnified party or its contract personnel or any other agents
who are managed by the indemnifying party. The aggregate
liability under this indemnification of each of the
PricewaterhouseCoopers firms and us will be limited to the
aggregate fees paid for services during the twelve month period
immediately preceding the event giving rise to the claim under
each transition services agreement that it is a party to, or in
the case of an event giving rise to the claim occurring during
the first twelve months of the transition services agreement,
the total fees budgeted to be payable during this initial twelve
month period.
Assignment
Assignment of our rights and obligations under
the transition services agreements, other than to a subsidiary
existing and receiving services at the closing of the concurrent
Class A common shares offering, requires the applicable
PricewaterhouseCoopers firm's prior consent. In the event
we experience a change of control, subject to SEC approval, each
PricewaterhouseCoopers firm will thereafter be able to charge a
market price for its services under the transition services
agreements and the remaining term of the transition services
agreements may be shortened to one year from notification of the
change of control. The PricewaterhouseCoopers firms may assign
the transition services agreements to any entity without our
prior consent, but the assignment will not relieve the
PricewaterhouseCoopers firms of their obligations, and we will
not be required to incur any increased costs or taxes as a
result of any such assignment.
Termination
The transition services agreements will expire on
the third anniversary of the closing of the concurrent
Class A common shares offering unless otherwise terminated
in accordance with the transition services agreements. We may
terminate any service at any time, if we also terminate any
non-separable services. For the volume of services provided to
us, as of the closing of the concurrent Class A common
shares offering, we will not be obligated to pay any costs
related to termination if we deliver notice of such termination
to the PricewaterhouseCoopers firm providing the service
180 days prior to such termination. Upon termination, we
will have to pay investment and other termination costs relating
only to an increase in the volume of those services provided to
us as of the closing of the concurrent Class A common
shares offering and to services that are different from those we
receive as of the closing of the concurrent Class A common
shares offering. If we terminate any service with less than 180
days' notice, we will pay for any incremental costs
attributable to the failure to provide 180 days'
notice.
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Assignment and Assumption Agreements, Sublease
Agreements and Master License Agreement
While conducting business as part of the
PricewaterhouseCoopers network of firms, we have shared the use
of a significant portion of our real estate with the audit, tax
and other businesses of the PricewaterhouseCoopers network. Most
of this real estate has been leased by the firms from third
parties. Prior to the closing of the concurrent Class A
common shares offering, the right to use most of the leased real
estate we currently occupy will be transferred to us, subject to
the obtaining of any required landlord consent, through one of
the three agreements listed below.
•
Assignment and Assumption
    Agreements.
For locations where we
    use 75% or more of the entire space covered by the applicable
    lease or where we now use the predominant portion of the entire
    space covered by the applicable lease but intend to use the
    entire space, the lease will be assigned to us pursuant to an
    assignment and assumption agreement, unless it is reasonably
    agreed by us and the applicable PricewaterhouseCoopers firm to
    enter into a sublease or license agreement to avoid the need to
    seek a landlord consent or to facilitate the obtaining of any
    landlord consent. The agreement will contain customary
    provisions, including assignment of lease responsibilities
    accruing after the effective date of the assignment and
    indemnification. For locations where we use less than 75% of the
    entire space covered by the applicable lease or where we now use
    the predominant portion of the entire space covered by the
    applicable lease but intend to use the entire space, the portion
    of the space not used by us at the time of the closing of the
    concurrent Class A common shares offering will be subleased
    or licensed back to the applicable PricewaterhouseCoopers firm,
    using the form of sublease or license agreement described below.
•
Sublease
    Agreements.
If we use a portion of
    the entire space covered by the applicable lease that is less
    than 75% of the entire space, the lease for this space will not
    be assigned to us as described above and this portion is
    segregated from portions of the space used by other businesses
    of the PricewaterhouseCoopers firms, the right to use this
    portion will be transferred to us through a sublease agreement
    unless it is reasonably agreed by us and the applicable
    PricewaterhouseCoopers firm to enter into a license agreement to
    avoid having to obtain a required landlord consent or to
    facilitate obtaining any required landlord consent. The sublease
    generally will reflect the provisions of the applicable lease to
    the extent allocable to the subleased portion.
•
Master License
    Agreements.
If our use of a
    portion of the entire space covered by the applicable lease is
    intermingled with the use of other portions of the same space by
    other businesses of PricewaterhouseCoopers firms to an extent
    that the portion used by us is not segregated for the purposes
    of a sublease, and the lease for this space will not be assigned
    to us as described above, a license agreement will be used to
    license to us the right to occupy this portion of the space.
    Generally, only one master license agreement will be signed for
    each country or region. Our license agreements and the license
    fee payable as a result generally will reflect the provisions of
    the applicable lease to the extent applicable to a license and
    allocable to the licensed portion.
Redemption and Non-Competition
Agreement
See "Arrangements with Our
Partners—Redemption and Non-Competition Agreement" for
a description of this agreement.
Shareholders Agreement
Prior to the concurrent offerings, some of the
PricewaterhouseCoopers firms and partners or shareholders of
some other firms in the network will enter into a shareholders
agreement with us. This agreement is applicable only if these
firms and their partners and shareholders do not completely
liquidate their holdings in us as a result of the concurrent
Class A common shares offering.
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Covered
Shareholders and Covered Shares
In this description, the terms
"shareholder" or "shareholders" refer to
each PricewaterhouseCoopers firm and partners or shareholders of
some other firms in the network, including custodial
arrangements, that will receive or will have the right to
receive our Class A common shares, Monday SCA Class I
common shares or exchangeable shares of one of Monday SCA's
subsidiaries in our separation. The terms "share" or
"shares" refer to Monday SCA Class I common
shares issued in our separation, exchangeable shares of one of
Monday SCA's subsidiaries issued in our separation and our
Class A common shares either issued in our separation or
which the shareholders may receive upon redemption of Monday SCA
Class I common shares or upon exchange of exchangeable
shares of one of Monday SCA's subsidiaries, unless
specifically stated otherwise.
Share
Transfer Restrictions
Except with respect to a permitted transfer in
connection with a registered offering as discussed below and
other limited exceptions, the shareholders will not be permitted
to transfer any shares. Between the first and second
anniversaries of the closing of the concurrent Class A
common shares offering, in addition to any sales made pursuant
to a registration statement, PricewaterhouseCoopers firms'
partners may sell our shares, whether covered by the
shareholders agreement or not, provided that a partner may make
only one sale per each three-month period and the number of
shares sold in any one sale does not exceed 10% of the aggregate
number of shares then held by such partner. Until the first
anniversary of the closing of the concurrent Class A common
shares offering, holders of Monday SCA Class I common
shares generally will not be able to have their shares redeemed
for our Class A common shares, but PricewaterhouseCoopers
International Limited can require a redemption during this
period to comply with auditor independence rules. There will
also be a lock-up period imposed by the underwriters as
described in "Underwriters."
Registration
Rights
Registration Statements.
Subject to customary limitations
and lock-up restrictions, one time per year and, additionally,
at any time it is necessary for shareholders to divest some or
all of their Class A common shares to comply with auditor
independence rules, during the five consecutive one-year periods
following the closing of the concurrent Class A common
shares offering, we will file a registration statement under the
Securities Act of 1933 for the offering of our Class A
common shares, provided the offering meets a minimum aggregate
offering value. All shareholders will be entitled to participate
in each registration. To the extent necessary to comply with the
terms of the Securities and Exchange Commission no-action
letter, each year the PricewaterhouseCoopers network of firms
will determine the target share amount to be sold for each
PricewaterhouseCoopers firm and other shareholders that will
receive shares in our separation. If the amount of our
Class A common shares requested to be included in a
registration statement exceeds the amount that can be sold
within the price range acceptable to the shareholders holding a
majority of the shares, Class A common shares will be
included first for the shareholders who have been requested to
register their Class A common shares to meet their target
share amounts, and any additional Class A common shares
will be included on a pro rata basis. After the first
anniversary of the closing of this offering, we expect to file a
shelf registration statement covering resales of Class A
common shares subject to the shareholders agreement. Once this
shelf registration statement is effective, the demand
registration rights described in this paragraph will no longer
be applicable.
Piggyback Registration.
If at any time we propose to
register the sale of any Class A common shares for cash
under the Securities Act, subject to customary exceptions, we
will provide notice to the shareholders and include in the
registration all Class A common shares held by the
shareholders which they request to be so included. To the extent
necessary to comply with the terms of the proposed SEC no-action
letter, the PricewaterhouseCoopers International Limited board
will have the right to cause shareholders to include their
Class A common shares in any registration and to
subsequently divest the Class A common shares so
registered. To the extent the amount of Class A common
shares requested to be included in such registration statement
exceeds the amount which can be sold within a price range
acceptable to us, the Class A common shares will be
included first for the shareholders who have been requested to
register their Class A common
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shares to meet their target share amounts, and
any additional Class A common shares will be included on a
pro rata basis.
Indemnification.
In the shareholders agreement, we
generally will agree to indemnify selling shareholders for any
material misstatements or omissions contained in the prospectus
used to sell those Class A common shares and for any
violations by us of the securities laws. Our indemnification
obligations will not apply to misstatements, omissions or
violations of law which arise from information provided to us in
writing by selling shareholders or by persons who control
selling shareholders. Selling shareholders will agree to
indemnify us for any of these misstatements, omissions or
violations, but this indemnification will be limited to the
amount of net proceeds received by the shareholders in the sale.
Priority.
We
will not grant registrations rights with equal or better terms
than those granted in the shareholders agreement. The shares
covered by the shareholders agreement will have priority over
the shares of any other of our shareholders other than
shareholders exercising demand rights, if the shareholders that
are party to the shareholders agreement are exercising piggyback
rights, for inclusion in any registration statement.
Expenses.
We
have agreed to pay all expenses incurred in connection with each
registration statement described above, except for underwriting
discounts and commissions relating to Class A common shares
sold on behalf of shareholders.
Auditor Independence Rules and the Proposed
    Securities and Exchange Commission No-Action
    Letter
In order to comply with auditor independence
rules and the requirements set forth in the proposed Securities
and Exchange Commission no-action letter, to the extent that the
shareholders have not already done so, PricewaterhouseCoopers
International Limited will have the right to cause the
shareholders to dispose of all or any portion of their shares on
a pro rata basis over a 5-year period following the closing of
concurrent Class A common shares offering. Each shareholder
will agree to hold its shares in a manner which will permit
either a voluntary or mandatory timely sale of its shares in
accordance with the terms of the proposed SEC no-action letter.
One of the conditions contained in the proposed
SEC no-action letter would deem a shareholder to have disposed
of its shares when it has sold its shares to third parties
pursuant to Rule 144 of the Securities Act or an effective
registration statement or transferred its shares to its partners
or shareholders, or persons holding similar designations, so
long as these shares are freely transferable under the
Securities Act and are free from any contractual transfer
restrictions, all other requirements of the proposed SEC
no-action letter are met and the ownership of these shares is no
longer attributable to the PricewaterhouseCoopers network of
firms.
Voting
In order to comply with the auditor independence
rules and the conditions set forth in the proposed SEC no-action
letter, all our shares held by any PricewaterhouseCoopers firm
will be nonvoting.
Term
of Agreement
The shareholders agreement shall terminate with
respect to any shareholder on the date that such shareholder and
its subsidiaries no longer own any shares.
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ARRANGEMENTS WITH OUR PARTNERS
In connection with our separation from the
PricewaterhouseCoopers network of firms, our partners will enter
into one or more of the following agreements with us or one of
our subsidiaries:
•
Monday Ltd Voting Agreement,
•
Monday SCA Transfer Rights Agreement and
•
Redemption and Non-Competition Agreement.
For purposes of the following summaries of these
agreements, the reference to "date of our separation"
means the date on which a PricewaterhouseCoopers firm transfers
its management consulting and technology services business to
us, which in some cases may occur after the closing of the
concurrent offerings.
These agreements have been filed as exhibits to
the registration statement of which this prospectus forms a part.
Monday Ltd Voting Agreement
Persons and Shares Covered
We and each of our partners who own our
Class A common shares or our Class X common shares
will enter into a voting agreement. Each person who becomes a
partner in the future will also be required to enter into the
voting agreement. The parties to the voting agreement, other
than us, are referred to as covered persons. The shares covered
by the voting agreement are listed below. These shares are
referred to as covered shares.
•
Our Class X common shares that are
    beneficially owned by a partner.
•
Our Class A common shares beneficially owned
    by a partner as of, or prior to, the date of our separation.
•
Our Class A common shares acquired from us
    or acquired in order to comply with any written policy of ours
    regarding minimum share ownership, as adopted or amended from
    time to time, in either case, while being our employee or
    partner or in connection with becoming a partner.
•
Any exchangeable shares of one of Monday
    SCA's subsidiaries that are beneficially owned by a partner.
Covered shares also include any shares received
by a covered person in exchange for or in respect of his or her
covered shares by reason of bonus issues, stock dividends, share
subdivisions, stock splits, reverse stock splits, share
consolidations, spin-offs, split-ups, recapitalizations,
combinations or exchanges of shares. Our Class A common
shares purchased by a covered person in the open market or,
subject to some limitations, in a subsequent underwritten public
offering generally will not be subject to the voting agreement.
When a covered person ceases to be our employee
for any reason other than death, the covered person will
continue to be bound by all the provisions of the voting
agreement until the covered person holds all covered shares free
from transfer restrictions described below, and thereafter he or
she will no longer be bound, in general, by the provisions,
including the voting provision, of the voting agreement.
Upon any business combination, amalgamation,
restoration, recapitalization or other extraordinary transaction
involving directly or indirectly us, Monday SCA or, as a result
of which the covered persons shall hold voting securities of an
entity other than us, Monday SCA or one of Monday SCA's
subsidiaries that has issued exchangeable shares to our
partners, the voting agreement will remain in effect with
appropriate adjustments by our partners committee, which is
described below.
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Transfer
Restrictions
By entering into the voting agreement, each
covered person will agree, among other things, to:
•
except as described below, not transfer, and to
    maintain sole beneficial ownership of, his or her covered shares
    received on or prior to the date of our separation,
•
comply with the transfer restrictions relating to
    the covered shares imposed by the lock-up provisions described
    under "Underwriters,"
•
comply with other transfer restrictions in
    connection with securities offerings when requested to do so by
    us, and
•
comply with insider trading policies.
Transfers include, among other things, any
disposition of the economic risks of ownership of covered
shares, including, with a limited exception, short sales, option
transactions and use of derivative financial instruments or
other hedging arrangements with respect to our securities.
Class A
Common Shares
Current
Partners.
Subject to complying
with the underwriters' lock-up described under
"Underwriters," a partner may transfer Class A
common shares beneficially owned by him or her to the extent
necessary to pay taxes incurred in connection with the issuance
of shares to him or her unless we make financing available, or
to the extent these shares were received as repayment of such
partner's capital account or similar amounts the partner
had previously contributed to his or her PricewaterhouseCoopers
firm or in exchange for exchangeable shares issued in respect
thereof. Class A common shares transferred for these
reasons will not be deemed to be covered shares beneficially
owned by such partner for purposes of calculating the cumulative
percentages of covered shares permitted to be sold by such
partner described below.
Furthermore, covered persons who continue to be
our employees will be permitted to transfer a percentage of the
covered shares owned by them beginning on each anniversary of
the date of our separation commencing on the first anniversary
according to the schedule set forth below.
Cumulative percentage of covered
Years after the date of our
shares permitted to be transferred
separation
20%
1 year
40%
2 years
60%
3 years
75%
4 years
100%
The later of 5 years and termination of
    employment with us
Notwithstanding the restrictions set forth above,
during the first five years after the date of our separation,
partners who terminate their employment with us at or after the
age of 55 and are not in violation of their non-competition
agreement and partners who, while an employee of ours, become
disabled, as defined in the voting agreement, will be permitted
to transfer all of the covered shares they own. All others who
cease to be our employees during the five year period after the
date of our separation will not be permitted to sell covered
shares in accordance with the table set forth above and will
instead be required to hold their covered shares until five
years after the date of our separation. Subject to complying
with the underwriters' lock-up, our partners will be
permitted to transfer Class A common shares distributed to
them in respect of the restricted share units issued in
connection with reductions in our partners' cash
compensation.
New Partners in the
Future.
Each person who becomes a
covered person after the date of the concurrent Class A
common shares offering will agree in the voting agreement to be
the sole beneficial owner of the number of Class A common
shares, or options to acquire these securities, as may be
required by us pursuant to written policies adopted by us from
time to time.
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Class X
Common Shares
Our Class X common shares may not be
transferred at any time except with our consent. Our board of
directors will delegate the authority to grant this consent to
our partners committee.
We have the right to redeem Class X common
shares at any time. We will agree in the voting agreement,
however, to do so only if, after the redemption, a holder owns
no fewer Class X common shares than the number of Monday
SCA Class I common shares plus exchangeable shares issued
by one of Monday SCA's subsidiaries held by that holder.
Subsidiary
Exchangeable Shares
Exchangeable shares issued by one of Monday
SCA's subsidiaries held by covered persons may not be
transferred at any time, except that they may be exchanged for
our Class A common shares beginning one year after
issuance. Class A common shares received in exchange,
however, will be subject to the transfer restrictions in the
voting agreement as if they were owned as of the closing of this
offering.
Subject to customary limitations, we have agreed
to file a shelf registration statement with the Securities and
Exchange Commission one year after this offering, registering
our Class A common shares issuable to covered persons in
exchange for their exchangeable shares issued by one of Monday
SCA's subsidiaries and, subject to some exceptions, to use
reasonable best efforts to maintain the effectiveness of such
registration statement until all exchangeable shares issued by
one of Monday SCA's subsidiaries held by covered persons
have been exchanged.
Other
Restrictions
If we approve in writing a covered person's
pledge of his or her covered shares to another person, or
pledgee, foreclosures by the pledgee on those shares, and any
subsequent sales of those shares by the pledgee, are not
restricted. The pledgee must give us a right of first refusal,
however, to buy those shares at the market price before they are
sold by the pledgee. Pledges of a covered person's covered
shares to us to secure obligations under the redemption and
non-competition agreement, and foreclosures or sales by us, also
are not restricted.
In addition to the restrictions set forth above,
covered persons will need to comply with applicable securities
laws in connection with any transfer and may need to deliver an
opinion of counsel in connection with any transfer.
All covered shares beneficially owned by covered
persons will, with limited exceptions, be registered in the name
of a nominee for the covered person or held in the custody of a
custodian until transfer of those shares is permitted under the
voting agreement or as otherwise determined by our partners
committee.
All transfer restrictions applicable to a covered
person under the voting agreement terminate upon death of the
covered person, other than any underwriters' lock-up
restrictions.
Voting
Under the voting agreement, prior to any vote of
our shareholders, a separate, preliminary vote of the covered
shares owned by covered persons who are our employees will be
taken on each matter upon which a vote of the shareholders is
proposed to be taken. Subsequently, all of these covered shares
will be voted in the vote of our shareholders in accordance with
the majority of the votes cast in the preliminary vote.
With respect to elections of directors, however,
all covered shares owned by covered persons who are our
employees will be voted in favor of the election of those
persons receiving the highest numbers of votes cast in the
preliminary vote. In the case of a vote for an amendment to our
memorandum of association or bye-laws, or in connection with an
amalgamation, liquidation, dissolution, sale of all or
substantially all of our property and assets or any similar
transaction with respect to us, all covered shares owned by
covered persons who are our employees will be voted against the
proposal unless at least two-thirds of the votes in the
preliminary vote are cast in favor of the proposal, in which
case all of these covered shares will be voted in favor of the
proposal.
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By signing the voting agreement, each covered
person gives our partners committee an irrevocable proxy for the
term of the voting agreement to vote his or her covered shares
on matters that are the subject of a preliminary vote in
accordance with the preliminary vote and on other matters as our
partners committee see fit in a manner consistent with the
preliminary vote.
Additional
Restrictions
The voting agreement also prevents covered
persons from engaging in the following activities while employed
by us with any person who is not a party to the voting agreement
or a director, officer or employee acting in their capacity as
such:
•
participating in a proxy solicitation with
    respect to any of our securities or securities of our
    subsidiaries,
•
depositing any covered shares in a voting trust
    or subjecting any of these shares to any voting agreement or
    arrangement,
•
forming, joining or in any way participating in a
    group that agrees to vote or dispose of any securities of ours
    or our subsidiaries in a particular manner,
•
making any announcement or responding to
    unsolicited requests for information regarding how a person
    intends to vote,
•
making any offer or proposal to acquire any of
    our securities or assets or any securities or assets of our
    subsidiaries,
•
seeking the removal of any member of our board of
    directors or any change in the composition of our board of
    directors,
•
participating in a call for any special meeting
    of our shareholders,
•
assisting, advising or encouraging any person to
    do any of the foregoing or
•
initiating or proposing any shareholder proposal.
Securities
and Exchange Commission Filings
In the event that any covered person is required
to file a report of beneficial ownership on schedule 13D or
13G of the Securities Exchange Act of 1934 with respect to
covered shares, unless otherwise directed by our partners
committee, the covered person will not file a separate report
but will file a report together with the other covered persons.
As a result of the voting agreement, we expect that a
schedule 13D will be required on behalf of all covered
persons as a group.
Term
and Amendment
The voting agreement will be in effect for
50 years from April 30, 2002, unless it is earlier
terminated by the vote of two-thirds of the votes represented by
the covered shares owned by covered persons who are our
employees. The transfer restrictions will not terminate upon the
expiration or termination of the voting agreement unless they
have been previously waived or terminated under the terms of the
voting agreement. The voting agreement generally may be amended
or waived at any time by the affirmative vote of two-thirds of
the votes represented by the covered shares owned by covered
persons who are our employees.
Any amendment or waiver that has the effect of
making our obligations under the agreement more onerous to us as
well as any amendment or waiver of the transfer restrictions
also requires our consent. Amendment or waiver of other
provisions may require additional consent. For example,
•
any amendment or waiver that has the effect of
    materially changing the rights or obligations of our partners
    committee will require the approval of our partners committee and
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•
any amendment to or waiver of the transfer
    restrictions that would make the transfer restrictions more
    onerous to a covered person will require the consent of the
    covered person.
The transfer restrictions and the other
provisions of the voting agreement may be waived at any time by
our partners committee, with our prior written consent, to
permit covered persons to:
•
participate as sellers in underwritten public
    offerings of Class A common shares and tender and exchange
    offers and share repurchase programs by us,
•
transfer covered shares to charities, including
    charitable foundations,
•
transfer covered shares held in employee benefit
    plans and
•
transfer covered shares in particular situations,
    such as to immediate family members and trusts.
Our partners committee may also amend the voting
agreement with our consent in connection with a restructuring of
our separation that results in our reorganization as a United
States or United Kingdom corporation. In addition, our partners
committee may make amendments necessary to obtain a no-action
letter from the Securities and Exchange Commission with respect
to Section 16 of the Exchange Act.
Administration
The terms and provisions of the voting agreement
will be administered by our partners committee, which generally
will consist of members of our board of directors who are also
our employees or employees of our subsidiaries holding the
"partner" title or an equivalent title and who agree
to serve as members of our partners committee. Our partners
committee will have the sole power to enforce the provisions of
the voting agreement.
We will be responsible for all the expenses of
our partners committee incurred in administering the voting
agreement. Each covered person will be responsible for his or
her own expenses incurred in connection with compliance with the
voting agreement.
Governing
Law
The voting agreement will be governed by the laws
of the state of New York.
Monday SCA Transfer Rights Agreement
Persons
and Shares Covered
Monday SCA and each of our partners who own
Monday SCA Class I common shares will enter into a transfer
rights agreement. Parties to the agreement, other than Monday
SCA, are referred to as covered persons. The Monday SCA
Class I common shares covered by the transfer rights
agreement generally include all Monday SCA Class I common
shares owned by a covered person, including shares received by
such covered person in exchange for or in respect of his or her
Class I common shares by reason of stock dividends, stock
splits, reverse stock splits, spin-offs, split-ups,
recapitalizations, combinations or exchanges of shares. The
Monday SCA Class I common shares covered by the transfer
rights agreement are referred to as covered shares.
When a covered person ceases to be our employee
for any reason other than death, the covered person will
continue to be bound by all the provisions of the transfer
rights agreement until the covered person holds all covered
shares free from transfer restrictions described below and
thereafter he or she will no longer be bound, in general, by the
provisions other than continuing provisions of the transfer
rights agreement.
Upon any business combination, amalgamation,
restoration, recapitalization or other extraordinary transaction
involving directly or indirectly us or Monday SCA as a result of
which the covered persons shall hold voting securities of an
entity other than us or Monday SCA, the transfer rights
agreement will remain in effect with appropriate adjustments
made by our partners committee.
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Transfer
Restrictions
None of the covered persons will be permitted to
request a redemption of his or her covered shares until one year
after the closing of the concurrent Class A common shares
offering. In addition, each covered person will agree, among
other things, to:
•
except as described below, not transfer, and to
    maintain sole beneficial ownership of, his or her covered shares
    received on or prior to the date of our separation,
•
comply with the transfer restrictions relating to
    the covered shares imposed by the lock-up provisions of the
    underwriting agreement with respect to the concurrent
    Class A common shares offering and
•
comply with other transfer restrictions relating
    to Monday SCA Class I common shares when requested to do so
    by Monday SCA and with the insider trading policies of Monday
    SCA.
Transfers include, among other things, exchanges
for our Class A common shares and any disposition of the
economic risks of ownership of covered shares, including, with a
limited exception, short sales, option transactions and use of
derivative financial instruments or other hedging arrangements
with respect to securities of Monday SCA.
Subject to complying with the underwriters'
lock-up, a partner may transfer covered shares beneficially
owned by him or her to the extent necessary to pay taxes
incurred in connection with the issuance of shares to him or her
unless we provide financing, or to the extent these shares were
received as repayment of such partner's capital account or
similar amounts the partner had previously contributed to his or
her PricewaterhouseCoopers firm. Shares transferred for these
reasons will not be deemed to be covered shares beneficially
owned by such partner for purposes of calculating the cumulative
percentages of covered shares permitted to be sold by such
partner described below.
Furthermore, covered persons who continue to be
our employees will be permitted to transfer a percentage of the
covered shares owned by them beginning on each anniversary of
the date of our separation commencing on the first anniversary
according to the schedule set forth below:
Cumulative percentage of covered
Years after the date of our
shares permitted to be transferred
separation
20%
1 year
40%
2 years
60%
3 years
75%
4 years
100%
The later of 5 years and termination of
    employment with us
Notwithstanding the restrictions set forth above
during the first five years after the date of our separation,
partners who terminate their employment with us at or after the
age of 55 and are not in violation of their non-competition
agreement and partners who, while an employee of ours, become
disabled, as defined in the transfer rights agreement, will be
permitted to transfer all of the covered shares they own. All
others who cease to be our employees during the five year period
after the date of our separation will not be permitted to sell
covered shares in accordance with the table set forth above and
will instead be required to hold their covered shares until five
years after the date of our separation.
If Monday SCA approves in writing a covered
person's pledge of his or her covered shares to another
person, or pledgee, foreclosures by the pledgee on those shares,
and any subsequent sales of those shares by the pledgee, are not
restricted, the pledgee must give Monday SCA a right of first
refusal, however, to buy those shares at the market price of our
Class A common shares before they are sold by the pledgee.
Pledges of a covered person's covered shares to Monday SCA
to secure obligations under the redemption and non-competition
agreement, and foreclosures or sales by Monday SCA, also are not
restricted.
In addition to the restrictions set forth above,
covered persons will need to comply with applicable securities
laws in connection with any transfer and may need to deliver an
opinion of counsel in connection with any transfer.
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All covered shares beneficially owned by covered
persons will, with limited exceptions, be registered in the name
of a nominee for the covered person or held in the custody of a
custodian until transfer of those shares is permitted under the
transfer rights agreement or as otherwise determined by our
partners committee.
All transfer restrictions applicable to a covered
person under the transfer rights agreement terminate upon death
of such covered person other than any underwriters' lock-up
restrictions.
Redemptions
By signing the transfer rights agreement, each
covered person will agree that the redemption price payable in
connection with any redemption of such covered person's
covered shares under the Articles of Incorporation of Monday SCA
may, at the option of Monday SCA, be paid in cash or
Class A common shares.
Subject to customary limitations, we have agreed
to file a shelf registration statement with the Securities and
Exchange Commission one year after the closing of the concurrent
Class A common shares offering, registering our
Class A common shares issuable to covered persons upon
redemption of their Monday SCA Class I common shares and,
subject to some exceptions, to use reasonable best efforts to
maintain the effectiveness of such registration statement until
all Monday SCA Class I common shares held by covered
persons have been redeemed.
Securities
and Exchange Commission Filings
In the event that any covered person is required
to file a report of beneficial ownership on schedule 13D
or 13G of the Securities Exchange Act of 1934 with respect
to covered shares, unless otherwise directed by the partners
committee, the covered person will not file a separate such
report but will file a report together with the other covered
persons.
Term
and Amendment
The transfer rights agreement will be in effect
for 50 years from April 30, 2002, unless it is earlier
terminated by the affirmative vote of two-thirds of the votes
represented by the covered shares owned by covered persons who
are our employees. The transfer restrictions will not terminate
upon the expiration or termination of the transfer rights
agreement unless they have been previously waived or terminated
under the terms of the agreement. The transfer rights agreement
generally may be amended or waived at any time by the
affirmative vote of two-thirds of the votes represented by the
covered shares owned by covered persons who are our employees.
Any amendment or waiver that has the effect of
making the obligations of Monday SCA under the transfer rights
agreement more onerous to Monday SCA as well as any amendment or
waiver of the transfer restrictions also require the consent of
Monday SCA. Amendment or waiver of other provisions may require
additional consent. For example,
•
any amendment or waiver that has the effect of
    materially changing the rights or obligations of our partners
    committee will require the approval of our partners committee and
•
any amendment to or waiver of the transfer
    restrictions that would make transfer restrictions more onerous
    to a covered person will require the consent of the covered
    person.
The transfer restrictions and the other
provisions of the transfer rights agreement may be waived at any
time by our partners committee, with Monday SCA's prior
written consent, to permit covered persons to:
•
participate as sellers in underwritten public
    offerings of Class I common shares and share repurchase
    programs and tender offers by Monday SCA,
•
transfer covered shares to charities, including
    charitable foundations,
•
transfer covered shares held in employee benefit
    plans and
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•
transfer covered shares in particular situations,
    such as to immediate family members and trusts.
Our partners committee may also amend the
transfer rights agreement, with the consent of Monday SCA, in
connection with a restructuring of our separation that results
in Monday Ltd being reorganized as a United States or United
Kingdom corporation and Monday SCA being reorganized under the
laws of another jurisdiction.
Administration
The terms and provisions of the transfer rights
agreement will be administered by our partners committee. Our
partners committee will have the sole power to enforce the
provisions of the transfer rights agreement.
Monday SCA will be responsible for all the
expenses of the partners committee incurred in administering the
transfer rights agreement. Each covered person will be
responsible for his or her own expenses incurred in connection
with compliance with the transfer rights agreement.
Governing
Law
The transfer rights agreement will be governed by
the laws of Luxembourg.
Redemption and Non-Competition
Agreement
Persons
Covered
We or one of our subsidiaries generally will have
entered into a redemption and non-competition agreement with
each of our partners, other than our partners in some countries,
including Australia and Germany, and other than our partners who
have joined us after the execution of the rollup agreement, as
of or prior to the date of our separation.
Restricted
Activities
Each partner who signs a redemption and
non-competition agreement generally will agree that, for a
period ending on the later of three years following the date of
our separation or twelve months following the termination of the
partner's employment with us or our affiliates, he or she
will not associate with or, in connection with such association,
engage in consulting services for any competitive enterprise or
solicit or assist any other entity in soliciting any client or
prospective client for the purposes of providing consulting
services. In addition, for this period, the partner will agree
not to perform consulting services for any client or prospective
client or interfere with or damage any relationship between us
and a client or prospective client. Each of our partners will
agree that for this period, he or she will not solicit or employ
any employee or any former employee who ceased working for us or
our affiliates within the twelve-month period before or after
the date on which the partner's employment with us or our
affiliates terminated.
Enforcement
Each of our partners who signs a redemption and
non-competition agreement generally will agree that if the
partner were to breach any provision of the redemption and
non-competition agreement, we would be entitled to equitable
relief restraining the partner from committing any such breach.
In addition, each of our partners will agree that if the partner
were to breach any provisions of the redemption and
non-competition agreement prior to the third anniversary of the
date of our separation, he or she will pay us a predetermined
amount of liquidated damages and, where permissible, that the
liquidated damages will be secured by the partner's
Class A common shares, Class X common shares, Monday
SCA Class I common shares or other equity in our
subsidiaries. Our partners will be permitted to dispose of their
pledged securities in accordance with the terms of the voting
agreement or the transfer rights agreement and to receive the
proceeds from such dispositions.
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Because the laws concerning the enforcement of
non-competition covenants and the payment of liquidated damages
vary, we may not be able to strictly enforce these terms in all
jurisdictions, and the terms, including length, of the
redemption and non-competition agreement may vary by
jurisdiction due to legal and other considerations.
Waiver
We may waive provisions of the redemption and
non-competition agreement or any portion thereof with the
consent of, and in the discretion of, our chief executive
officer or his or her designee.
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PRINCIPAL AND SELLING SHAREHOLDERS IN THE
CONCURRENT
CLASS A COMMON SHARES OFFERING
In this section, the words "we,"
"us" and "our" refer only to Monday Ltd
and not to any of its subsidiaries.
The following table sets forth information with
respect to the beneficial ownership of our Class A common
shares immediately prior to the closing of the concurrent
offerings and as adjusted to reflect the sale of our
Class A common shares in the concurrent Class A common
shares offering held by:
•
each holder who is known to us to be the
    beneficial owner of more than 5% of any class of our outstanding
    common shares,
•
each selling shareholder,
•
each of our directors and named executive
    officers and
•
all of our directors and named executive officers
    as a group.
Except as otherwise indicated, the persons or
entities listed below have sole voting and investment power with
respect to the shares beneficially owned by them. We have listed
all selling shareholders in the concurrent Class A common
shares offering that are individuals in exhibit 99.1 to the
registration statement filed in connection with the concurrent
Class A common shares offering.
In addition, "beneficial ownership" is
determined in accordance with Rule 13d-3 under the
Securities Exchange Act of 1934, pursuant to which a person or
group of persons is deemed to have "beneficial
ownership" of any common shares that such person has the
right to acquire within 60 days after the date of this
prospectus. For purposes of computing the percentage of our
outstanding common shares held by each persons named above, any
shares that such person or persons has the right to acquire
within 60 days after the date of this prospectus are deemed
to be outstanding but are not deemed to be outstanding for the
purposes of computing the percentage ownership of any other
person. We also treat all shares issued by our subsidiaries in
connection with our separation to PricewaterhouseCoopers firms,
their partners or shareholders and our partners as if they had
been redeemed or exchanged on a one-for-one basis for our
Class A common shares.
Class A
Class A
Common
Common
Shares
Shares
Beneficially
Beneficially
Owned before
Owned after
the Concurrent
Number of Class A
the Concurrent
Class A
Common Shares to
Class A
Common Shares
be Sold in
Common Shares
Offering
Class X Common
the Concurrent
Offering
Shares Beneficially
Class A Common
Name of Beneficial Owner
Number
%
Owned
Shares Offering
Number
%
PwCC Holding (Florida) LLC (United States)
PricewaterhouseCoopers United Kingdom Firm
    (United Kingdom)
PwC Deutsche Revision Aktiengesellschaft
    Wirtschaftsprufungsgesellschaft (Germany)
PricewaterhouseCoopers LLP (Canada)
PricewaterhouseCoopers Associates 2002 (Canada)
PricewaterhouseCoopers N.V. (Netherlands)
PricewaterhouseCoopers (América del Sur)
    (Uruguay)
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Class A
Class A
Common
Common
Shares
Shares
Beneficially
Beneficially
Owned before
Owned after
the Concurrent
Number of Class A
the Concurrent
Class A
Common Shares to
Class A
Common Shares
be Sold in
Common Shares
Offering
Class X Common
the Concurrent
Offering
Shares Beneficially
Class A Common
Name of Beneficial Owner
Number
%
Owned
Shares Offering
Number
%
South American Finance Corporation Ltd (Bermuda)
LHS P/S (Denmark)
PricewaterhouseCoopers Republic of Ireland Firms
    (Ireland)
PricewaterhouseCoopers DA (Norway)
Advokatfirmaet PricewaterhouseCoopers DA (Norway)
PricewaterhouseCoopers AG (Switzerland)
PwC Administration Limited (New Zealand)
Prosperita B.V. (Netherlands)
PricewaterhouseCoopers-Auditores e Consultores,
    Lda (Portugal)
PricewaterhouseCoopers-Contabilidade e
    Administração e Serviços, Lda (Portugal)
PricewaterhouseCoopers Eastern Europe B.V.
    (Netherlands)
Espiñeira, Sheldon y Asociados
    (PricewaterhouseCoopers) (Venezuela)
PricewaterhouseCoopers SA Partnership (South
    Africa)
R-Laatikko 101 Oy (Finland)
Oreo Oy (Finland)
Dyson Oy (Finland)
Titulus Oy (Finland)
Jacanta Oy (Finland)
Kesselman Consulting Price Waterhouse Coopers
    Ltd. (Israel)
PricewaterhouseCoopers Africa Limited (Mauritius)
All individual selling shareholders listed on
    Exhibit 99.1 of the prospectus filed in connection with the
    concurrent Class A common shares offering
All of our partners, as a group
Gregory D. Brenneman
Willard W. Brittain
J. Frank Brown
Michael S. Collins
Dennis J. Dall
Steven DeSutter
David V. Dockray
Ronald B. Hauben
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Class A
Class A
Common
Common
Shares
Shares
Beneficially
Beneficially
Owned before
Owned after
the Concurrent
Number of Class A
the Concurrent
Class A
Common Shares to
Class A
Common Shares
be Sold in
Common Shares
Offering
Class X Common
the Concurrent
Offering
Shares Beneficially
Class A Common
Name of Beneficial Owner
Number
%
Owned
Shares Offering
Number
%
Thomas A. Leipzig
Bennett R. Machtiger
Clive D. Newton
Thomas C. O'Neill
Jose Luiz T. Rossi
Frank S. Sowinski
All of our directors and named executive
    officers, as a group
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DESCRIPTION OF THE PEPS UNITS
In this description, the words "we,"
"us" and "our" refer only to Monday Ltd and
not to any of its subsidiaries.
We will issue the PEPS Units under the purchase
contract agreement between us and the purchase contract agent.
The PEPS Units initially will consist
of                     units
(                    units
if the underwriters exercise their over-allotment option in
full) each with a stated amount per unit equal to $25.
Each PEPS Unit will consist of a unit comprising:
(1)     a purchase
    contract under which the holder will agree to purchase from us
    not later
    than                     ,
    2006, the purchase contract settlement date, for $25, a number
    of our newly issued Class A common shares equal to the
    settlement rate described below under "Description of the
    Purchase Contracts—Purchase of Class A Common
    Shares," and
(2)     either
•
a $25 principal amount senior note
    due                     ,
    2008, issued by Monday Finance SA, an indirect wholly owned
    subsidiary of Monday SCA, that will be absolutely, irrevocably
    and unconditionally guaranteed by Monday SCA as to the payment
    of principal, interest, additional amounts, if any, and premium,
    if any; we refer to the senior notes and the related guarantees
    by Monday SCA collectively as the senior notes, or
•
following the occurrence of a special event
    redemption prior to the purchase contract settlement date, the
    applicable ownership interest in a portfolio of zero-coupon
    U.S. Treasury securities, which we refer to as the Treasury
    portfolio.
"Applicable ownership interest" means,
with respect to a PEPS Unit and the U.S. Treasury
securities in the Treasury portfolio,
(1)     a 1/40, or 2.5%,
    undivided beneficial ownership interest in a $1,000 face amount
    principal or interest strip of a U.S. Treasury security
    included in the Treasury portfolio that matures on or prior to
    the business day immediately preceding the purchase contract
    settlement date, and
(2)     for each
    scheduled interest payment date on the senior notes that occurs
    after the special event redemption date and on or before the
    purchase contract settlement date,
    a           %
    undivided beneficial ownership interest in a $1,000 face amount
    principal or interest strip of a U.S. Treasury security included
    in the Treasury portfolio that matures on or prior to the
    business day immediately preceding that interest payment date.
The purchase price of each PEPS Unit will be
allocated between the related purchase contract and the related
senior note in proportion to their respective fair market values
at the time of issuance. We expect that, at the time of
issuance, the fair market value of each senior note will be
$     and the fair market value of each
purchase contract will be $     . This
position generally will be binding on the beneficial owner of
each PEPS Unit but not on the IRS.
As long as a unit is in the form of a PEPS Unit,
the senior note or the applicable ownership interest in the
Treasury portfolio, as applicable, forming a part of the PEPS
Unit will be pledged to the collateral agent to secure the
holder's obligation to purchase Class A common shares
under the related purchase contract.
Creating Treasury PEPS Units
Each holder of PEPS Units will have the right, at
any time on or prior to the fifth business day immediately
preceding the purchase contract settlement date, to substitute
for the related senior notes or applicable ownership interests
in the Treasury portfolio held by the collateral agent,
zero-coupon Treasury securities (Cusip
No.           )
maturing
on                     ,
2006, which we refer to as Treasury securities, in a total
principal amount at maturity equal to the aggregate principal
amount of the senior notes or applicable ownership interests in
the Treasury portfolio for which substitution is being made.
This substitution will create
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Treasury PEPS Units, and the senior notes or
applicable ownership interests in the Treasury portfolio will be
released to the holder.
Each Treasury PEPS Unit will consist of a unit
with a stated amount of $25 comprising:
(1)     a purchase
    contract under which the holder will agree to purchase from us
    not later than the purchase contract settlement date, for $25, a
    number of our newly issued Class A common shares equal to
    the settlement rate, and
(2)     a 1/40, or 2.5%,
    undivided beneficial ownership interest in a Treasury security
    with a principal amount at maturity of $1,000.
Because Treasury securities are issued in
multiples of $1,000, holders of PEPS Units may make this
substitution only in integral multiples of 40 PEPS Units.
However, if the Treasury portfolio has replaced the senior notes
as a component of the PEPS Units, holders of PEPS Units may make
substitutions only in multiples
of                      PEPS
Units.
To create 40 Treasury PEPS Units, the PEPS Unit
holder will:
•
deposit with the collateral agent a Treasury
    security that has a principal amount at maturity of $1,000,
    which must be purchased in the open market at the holder's
    expense, and
•
transfer 40 PEPS Units to the purchase
    contract agent accompanied by a notice stating that the holder
    has deposited a Treasury security with the collateral agent and
    requesting the release to the holder of the 40 senior notes
    or applicable ownership interests in the Treasury portfolio
    relating to the 40 PEPS Units.
Upon the deposit and receipt of an instruction
from the purchase contract agent, the collateral agent will
release the related 40 senior notes or applicable ownership
interests in the Treasury portfolio from the pledge under the
pledge agreement, free and clear of our security interest, to
the purchase contract agent. The purchase contract agent then
will:
•
cancel the 40 PEPS Units,
•
transfer the 40 related senior notes or
    applicable ownership interests in the Treasury portfolio to the
    holder, and
•
deliver 40 Treasury PEPS Units to the holder.
The substituted Treasury security will be pledged
to the collateral agent to secure the holder's obligation
to purchase our Class A common shares under the related
purchase contracts. The related senior notes or applicable
ownership interests in the Treasury portfolio released to the
holder thereafter will trade separately from the resulting
Treasury PEPS Units.
Recreating PEPS Units
Each holder of Treasury PEPS Units will have the
right, at any time on or prior to the fifth business day
immediately preceding the purchase contract settlement date, to
substitute for the related Treasury securities held by the
collateral agent, senior notes or applicable ownership interests
in the Treasury portfolio in an aggregate principal amount equal
to the aggregate amount payable at stated maturity of the
Treasury securities for which substitution is being made. This
substitution would create PEPS Units, and the applicable
Treasury securities would be released to the holder.
Because Treasury securities are issued in
integral multiples of $1,000, holders of Treasury PEPS Units may
make this substitution only in integral multiples of
40 Treasury PEPS Units. If the Treasury portfolio has
replaced the senior notes as a component of the PEPS Units,
holders of the Treasury PEPS Units may make this substitution
only in integral multiples
of                      Treasury
PEPS Units.
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To create 40 PEPS Units, the Treasury PEPS Unit
holder will:
•
deposit with the collateral agent 40 senior
    notes or applicable ownership interests in the Treasury
    portfolio, which must be purchased in the open market at the
    holder's expense, and
•
transfer 40 Treasury PEPS Units to the purchase
    contract agent accompanied by a notice stating that the holder
    has deposited 40 senior notes or applicable ownership
    interests in the Treasury portfolio with the collateral agent
    and requesting the release to the holder of the Treasury
    security relating to the Treasury PEPS Units.
Upon the deposit and receipt of an instruction
from the purchase contract agent, the collateral agent will
release the related Treasury security from the pledge under the
pledge agreement, free and clear of our security interest, to
the purchase contract agent. The purchase contract agent will
then
•
cancel the 40 Treasury PEPS Units,
•
transfer the related Treasury security to the
    holder, and
•
deliver 40 PEPS Units to the holder.
The substituted senior notes or applicable
ownership interests in the Treasury portfolio will be pledged to
the collateral agent to secure the holder's obligation to
purchase our Class A common shares under the related
purchase contracts.
Holders that elect to substitute pledged
securities, thereby creating Treasury PEPS Units or recreating
PEPS Units, will be responsible for any fees or expenses payable
in connection with the substitution.
Current Payments
Holders of PEPS Units are entitled to receive
quarterly cash distributions consisting of interest on the
related senior notes or distributions on the applicable
ownership interests in the Treasury portfolio, as applicable,
payable at the rate of      % per year.
Holders of Treasury PEPS Units will not receive
current payments, but original issue discount will accrue on the
related Treasury securities.
Monday Finance SA's obligations with respect
to the senior notes will be unsubordinated and unsecured and
will rank on an equal basis in right of payment with all of
Monday Finance SA's other unsubordinated unsecured
obligations. Monday SCA's obligations with respect to its
guarantee of the senior notes will be unsubordinated and
unsecured and will rank on an equal basis in right of payment
with all of Monday SCA's other unsubordinated unsecured
obligations. Because neither Monday Finance SA nor Monday SCA
has any independent operations, the ability of Monday Finance SA
and Monday SCA to meet their obligations with respect to the
senior notes will be dependent on the performance of the
subsidiaries of Monday SCA and their ability to transfer funds
to Monday SCA or Monday Finance SA and Monday SCA's receipt
of dividends and other payments from its direct and indirect
subsidiaries.
Payment of Additional Amounts
Monday Finance SA will make all payments on the
senior notes, including the put price, and Monday SCA will make
any payments pursuant to the guarantee of the senior notes,
without withholding or deduction at the source for, or on
account of, any present or future taxes, fees, duties,
assessments or governmental charges of whatever nature imposed
or levied by or on behalf of the jurisdiction in which Monday
Finance SA or Monday SCA is organized (a "taxing
jurisdiction") or any political subdivision or taxing
authority thereof or therein, unless such taxes, fees, duties,
assessments or governmental charges are required to be withheld
or deducted by (x) the laws (or any regulations or rulings
promulgated thereunder) of a taxing jurisdiction or any
political subdivision or taxing authority thereof or therein or
(y) an official position regarding the application,
administration, interpretation or enforcement of any such laws,
regulations or rulings, including, without limitation, a holding
by a court of competent jurisdiction or by a taxing authority in
a taxing
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jurisdiction or any political subdivision
thereof. Monday Finance SA and Monday SCA are organized under
the laws of Luxembourg.
If a withholding or deduction by Monday Finance
SA or Monday SCA is required by the law of a taxing
jurisdiction, Monday Finance SA or Monday SCA, as the case may
be, will, subject to certain limitations and exceptions
described below, pay to the holder of any PEPS Unit or senior
note, as the case may be, such additional amounts as may be
necessary so that every net payment made to such holder in
respect thereof, after the withholding or deduction, will not be
less than the amount provided for in the senior note indenture
to be then due and payable.
Notwithstanding the foregoing, Monday Finance SA
and Monday SCA will not be required to pay any additional
amounts to a holder of a PEPS Unit or a senior note for or on
account of:
(1)  any tax, fee, duty, assessment or
    governmental charge of whatever nature which would not have been
    imposed but for the fact that such holder (a) was a
    resident, domiciliary or national of, or engaged in business or
    maintained a permanent establishment or was physically present
    in, the relevant taxing jurisdiction or any political
    subdivision thereof or otherwise had some connection with the
    relevant taxing jurisdiction other than by reason of the mere
    ownership of, or receipt of payment under, such PEPS Unit or
    senior note, (b) presented such PEPS Unit or senior note
    for payment in the relevant taxing jurisdiction or any political
    subdivision thereof, unless such PEPS Unit or senior note could
    not have been presented for payment elsewhere, or
    (c) presented such PEPS Unit or senior note for payment
    more than 30 days after the date on which the payment in respect
    of such PEPS Unit or senior note became due and payable or
    provided for, whichever is later, except to the extent that the
    holder would have been entitled to such additional amounts if it
    had presented such PEPS Unit or senior note for payment on any
    day within that 30-day period;
(2)  any estate, inheritance, gift,
    sale, transfer, personal property or similar tax, assessment or
    other governmental charge;
(3)  any tax, assessment or other
    governmental charge that is imposed or withheld by reason of the
    failure by the holder or the beneficial owner of such PEPS Unit
    or senior note to comply with any reasonable request by Monday
    Finance SA or Monday SCA addressed to the holder within
    90 days of such request (a) to provide information
    concerning the nationality, residence or identity of the holder
    or such beneficial owner or (b) to make any declaration or
    other similar claim or satisfy any information or reporting
    requirement, which is required or imposed by statute, treaty,
    regulation or administrative practice of the relevant taxing
    jurisdiction or any political subdivision thereof as a
    precondition to exemption from all or part of such tax,
    assessment or other governmental charge; or
(4)  any combination of items (1),
    (2) and (3).
In addition, Monday Finance SA and Monday SCA
will not pay additional amounts with respect to any payment of
any amounts on any such PEPS Unit or senior note to any holder
who is a fiduciary or partnership or other than the sole
beneficial owner of such PEPS Unit or senior note to the extent
such payment would be required by the laws of the relevant
taxing jurisdiction (or any political subdivision or relevant
taxing authority thereof or therein) to be included in the
income for tax purposes of a beneficiary or partner or settlor
with respect to such fiduciary or a member of such partnership
or a beneficial owner who would not have been entitled to such
additional amounts had it been the holder of the PEPS Unit or
senior note.
Voting and Certain Other Rights
Holders of purchase contracts forming part of the
PEPS Units or Treasury PEPS Units, in their capacities as such
holders, will have no voting or other rights in respect of our
Class A common shares.
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Listing of the Securities
We have applied to list the PEPS Units on the New
York Stock Exchange under the symbol
"     ." Unless and until
substitution has been made as described in "—Creating
Treasury PEPS Units," the senior note component of a PEPS
Unit will not trade separately from the PEPS Units and will
trade as a unit with the purchase contract component of a PEPS
Unit. We have no obligation or current intention to apply for a
separate listing of the Treasury PEPS Units or the senior notes.
Miscellaneous
We or our affiliates may from time to time
purchase any of the securities offered by this prospectus which
are then outstanding by tender, in the open market or by private
agreement.
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DESCRIPTION OF THE PURCHASE
CONTRACTS
This section summarizes some of the terms of the
purchase contract agreement, purchase contracts, pledge
agreement, remarketing agreement and senior note indenture. The
summary should be read together with the purchase contract
agreement, pledge agreement, remarketing agreement and senior
note indenture, forms of which have been filed as exhibits to
the registration statement of which this prospectus forms a
part. In this description, the words "we,"
"us" and "our" refer only to Monday Ltd and
not to any of its subsidiaries.
Purchase of Common Shares
Each purchase contract underlying a PEPS Unit or
Treasury PEPS Units will obligate the holder of the purchase
contract to purchase, and us to sell, on the purchase contract
settlement date, for an amount in cash equal to $25, the stated
amount of the PEPS Unit or Treasury PEPS Units, a number of our
newly issued Class A common shares equal to the
"settlement rate." The settlement rate will be
calculated, subject to adjustment under the circumstances
described in "—Anti-Dilution Adjustments," as
follows:
•
If the applicable market value is equal to or
    greater than the threshold appreciation price of
    $          ,
    which is
    approximately           %
    above the reference price of
    $          ,
    the settlement rate will
    be           ,
    which is equal to $25 divided by the threshold appreciation
    price. Accordingly, if, between the date of this prospectus and
    the period during which the applicable market value is measured,
    the market price for our Class A common shares increases to
    an amount that is higher than the threshold appreciation price,
    the aggregate market value of the shares of our Class A
    common shares issued upon settlement of each purchase contract
    will be higher than $25, assuming that the market value is the
    same as the applicable market value of our Class A common
    shares. If the market price is the same as the threshold
    appreciation price, the aggregate market value of the shares
    will be equal to $25, assuming that the market value is the same
    as the applicable market value of our Class A common shares;
•
If the applicable market value is less than the
    threshold appreciation price but greater than the reference
    price, the settlement rate will be equal to $25 divided by the
    applicable market value. Accordingly, if the market price for
    the Class A common shares increases between the date of
    this prospectus and the period during which the applicable
    market value is measured, but the market price is less than the
    threshold appreciation price, the aggregate market value of our
    Class A common shares issued upon settlement of each
    purchase contract will be equal to $25, assuming that the market
    value is the same as the applicable market value of the
    Class A common shares; and
•
If the applicable market value is less than or
    equal to the reference price, the settlement rate will
    be                ,
    which is equal to $25 divided by the reference price.
    Accordingly, if the market price for our Class A common
    shares decreases between the date of this prospectus and the
    period during which the applicable market value is measured, the
    aggregate market value of our Class A common shares issued
    upon settlement of each purchase contract will be less than $25,
    assuming that the market value is the same as the applicable
    market value of the Class A common shares. If the market
    price stays the same, the aggregate market value of the shares
    will be equal to $25, assuming that the market value is the same
    as the applicable market value of the Class A common shares.
"Applicable market value" means the
average of the closing price per share of our Class A
common shares on each of the twenty consecutive trading days
ending on the third trading day immediately preceding the
purchase contract settlement date.
"Closing price" of the Class A
common shares on any date of determination means the closing
sale price (or, if no closing price is reported, the last
reported sale price) of the Class A common shares on the
New York Stock Exchange on that date or, if the Class A
common shares are not listed for trading on the New York Stock
Exchange on any such date, as reported in the composite
transactions for the principal United States securities exchange
on which the Class A common shares are so listed. If the
Class A common shares are not so listed on a United States
national or regional securities exchange, the closing price
means the last closing sale price of the Class A common
shares as reported by the Nasdaq National Market, or, if the
Class A
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common shares are not so reported, the last
quoted bid price for the Class A common shares in the
over-the-counter market as reported by the National Quotation
Bureau or similar organization. If the bid price is not
available, the closing price means the market value of the
Class A common shares on the date of determination as
determined by a nationally recognized independent investment
banking firm retained by us for this purpose.
A "trading day" means a day on which
the Class A common shares:
•
are not suspended from trading on any national or
    regional securities exchange or association or over-the-counter
    market at the close of business, and
•
have traded at least once on the national or
    regional securities exchange or association or over-the-counter
    market that is the primary market for the trading of the
    Class A common shares.
We will not issue any fractional shares of
Class A common shares pursuant to the purchase contracts.
In lieu of fractional shares otherwise issuable (calculated on
an aggregate basis) in respect of purchase contracts being
settled by a holder of PEPS Units or Treasury PEPS Units, the
holder will be entitled to receive an amount of cash equal to
the fraction of a share times the applicable market value.
On the business day immediately preceding the
purchase contract settlement date, unless:
•
a holder of PEPS Units or Treasury PEPS Units has
    settled the related purchase contracts prior to the purchase
    contract settlement date through the early delivery of cash to
    the purchase contract agent in the manner described under
    "—Early Settlement" or "—Early
    Settlement Upon Cash Merger,"
•
a holder of PEPS Units that include senior notes
    has settled the related purchase contracts with separate cash on
    the fourth business day immediately preceding the purchase
    contract settlement date pursuant to prior notice given in the
    manner described under "—Notice to Settle with
    Cash," or
•
the purchase contracts have terminated as a
    result of an event described under "—Termination,"
then
•
in the case of PEPS Units where the Treasury
    portfolio has replaced the senior notes as a component of the
    PEPS Units, the proceeds, when paid at maturity, of the
    appropriate applicable ownership interests in the Treasury
    portfolio will automatically be applied to satisfy in full the
    holder's obligation to purchase Class A common shares
    under the related purchase contracts,
•
in the case of PEPS Units where the Treasury
    portfolio has not replaced the senior notes as a component of
    the PEPS Units and there has been a successful remarketing of
    the senior notes, the portion of the proceeds from the
    remarketing equal to the principal amount of the senior notes
    remarketed will automatically be applied to satisfy in full the
    holder's obligation to purchase Class A common shares
    under the related purchase contracts,
•
in the case of PEPS Units where the Treasury
    portfolio has not replaced the senior notes as a component of
    the PEPS Units and there has not been a successful remarketing
    of the senior notes, we will exercise our rights as a secured
    party to retain the senior notes, or the proceeds received as a
    result of any acceleration thereof, pledged as collateral or
    dispose of them in accordance with applicable law. Following
    such action, the PEPS Units holders' obligations to
    purchase our Class A common shares under the related
    purchase contracts on the purchase contract settlement date will
    be satisfied in full, and
•
in the case of Treasury PEPS Units, the principal
    amount of the related Treasury securities, when paid at
    maturity, will automatically be applied to satisfy in full the
    holder's obligation to purchase Class A common shares under
    the related purchase contracts.
The Class A common shares will then be
issued and delivered to the holder or the holder's
designee, upon presentation and surrender of the certificate
evidencing the PEPS Units or Treasury PEPS Units and payment by
the holder of any transfer or similar taxes payable in
connection with the issuance of the Class A common shares
to any person other than the holder.
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Each holder of PEPS Units or Treasury PEPS Units,
by acceptance of these securities, will be deemed to have:
•
irrevocably agreed to be bound by the terms and
    provisions of the related purchase contracts and the pledge
    agreement and to have agreed to perform its obligations
    thereunder for so long as the holder remains a holder of the
    PEPS Units or Treasury PEPS Units, and
•
duly appointed the purchase contract agent as the
    holder's attorney-in-fact to enter into and perform the
    related purchase contracts and pledge agreement on behalf of and
    in the name of the holder.
In addition, each beneficial owner of PEPS Units
or Treasury PEPS Units, by acceptance of the beneficial interest
therein, will be deemed to have agreed to treat
•
itself as the owner of the related senior notes,
    applicable ownership interests in the Treasury portfolio or the
    Treasury securities, as the case may be, and
•
the senior notes as indebtedness for all United
    States federal income tax purposes.
Remarketing
Pursuant to the remarketing agreement, unless a
special event redemption has occurred or a condition precedent
to remarketing is not satisfied, if a PEPS Unit holder fails to
notify the purchase contract agent on or prior to the fifth
business day immediately preceding the purchase contract
settlement date of its intention to pay cash to satisfy its
obligation under the related purchase contracts, or fails to
deliver such cash on or prior to the fourth business day
immediately preceding the purchase contract settlement date, the
senior notes of PEPS Unit holders will be remarketed on the
third business day immediately preceding the purchase contract
settlement date.
The remarketing agent will use its reasonable
best efforts to remarket the senior notes of PEPS Unit holders
and the senior notes of separate note holders that have decided
to participate in the remarketing at an aggregate price of
approximately 100.25% of their aggregate principal amount. The
portion of the proceeds from this remarketing equal to the
aggregate principal amount of the senior notes which are a
component of the PEPS Units will be automatically applied to
satisfy in full the PEPS Unit holders' obligations to
purchase Class A common shares.
In connection with a successful remarketing of
the senior notes, the remarketing agent will deduct, as a
remarketing fee, an amount not exceeding 25 basis points (.25%)
of the aggregate principal amount of the remarketed senior notes
from any amount of the proceeds in excess of the aggregate
principal amount of the remarketed senior notes. The remarketing
agent will then remit any remaining portion of the proceeds for
the benefit of the holders. PEPS Unit holders whose senior notes
are remarketed will not otherwise be responsible for the payment
of any remarketing fee in connection with the remarketing.
On or prior to the fifth business day preceding
the purchase contract settlement date, holders of senior notes
that are not part of PEPS Units may elect to have their senior
notes remarketed in the same manner as senior notes that are
part of PEPS Units by delivering their senior notes along with a
notice of this election to the custodial agent designated by us.
The custodial agent will hold the senior notes in an account
separate from the collateral account in which the pledged senior
notes are held. Holders of senior notes electing to participate
in the remarketing will also have the right to withdraw their
election until the fifth business day immediately preceding the
purchase contract settlement date. The proceeds of the
remarketing of senior notes that are not part of PEPS Units will
be paid to holders in cash after deduction, to the extent
permissible, of the remarketing fee.
If (1) despite using its reasonable best
efforts, the remarketing agent cannot remarket the senior notes,
other than to us, Monday SCA or Monday Finance SA, at a price
equal to or greater than 100% of the aggregate principal amount
of the senior notes remarketed, or (2) the remarketing has
not occurred because a condition precedent to the remarketing
has not been fulfilled, in each case resulting in a failed
remarketing, we will exercise our rights as a secured party to
retain the senior notes pledged as collateral or dispose of them
in accordance with applicable law. Following such action, the
PEPS Units holders' obligations to purchase our
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Class A common shares under the related
purchase contracts on the purchase contract settlement date will
be satisfied in full. Following a failed remarketing, holders of
senior notes that are not part of PEPS Units will have the right
to put the senior notes to Monday Finance SA
on                ,
2006 (the date six weeks following the purchase contract
settlement date), upon at least three business days' prior
notice at a price per senior note of $25, plus accrued and
unpaid interest and additional amounts, if any.
We will cause a notice of any failed remarketing
to be published on the second business day immediately preceding
the purchase contract settlement date by publication in a daily
newspaper in the English language of general circulation in the
City of New York, which is expected to be The Wall Street
Journal. It is a condition to the remarketing that, if required
under U.S. federal securities laws, we have a registration
statement under the Securities Act of 1933 in effect covering
the remarketing of the senior notes. If so required, we will use
our reasonable best efforts to have in effect a registration
statement with regard to the full amount of the senior notes to
be remarketed in a form that will enable the remarketing agent
to rely on it in connection with the remarketing process. It is
currently anticipated that Morgan Stanley & Co. Incorporated
will be the remarketing agent.
Early Settlement
Subject to the conditions described below, a
holder of PEPS Units or Treasury PEPS Units may settle the
related purchase contracts at any time
following                     ,
2003 (12 calendar months following the concurrent Class A
common shares offering) through the fifth business day
immediately preceding the purchase contract settlement date by
presenting and surrendering the related PEPS Unit or Treasury
PEPS Unit certificate, if they are in certificated form, at the
offices of the purchase contract agent with the form of
"Election to Settle Early" on the reverse side of such
certificate completed and executed as indicated, accompanied by
payment to us in immediately available funds of an amount equal
to $25 times the number of purchase contracts being settled.
A holder of PEPS Units may settle purchase
contracts early only in integral multiples of 40 PEPS Units. If
the Treasury portfolio has replaced the senior notes as a
component of PEPS Units, holders of the PEPS Units may settle
early only in integral multiples
of            PEPS
Units. A holder of Treasury PEPS Units may settle early only in
integral multiples of 40 Treasury PEPS Units.
So long as the PEPS Units are evidenced by one or
more global security certificates deposited with the depositary,
procedures for early settlement will also be governed by
standing arrangements between the depositary and the purchase
contract agent. The early settlement right is also subject to
the condition that if required under the U.S. federal securities
laws, we have a registration statement under the Securities Act
of 1933 in effect covering the securities deliverable upon
settlement of a purchase contract. We have agreed that, if
required under the U.S. federal securities laws, we will use our
reasonable best efforts to (1) have in effect a
registration statement covering the securities to be delivered
in respect of the purchase contracts being settled and
(2) provide a prospectus in connection therewith, in each
case in a form that may be used in connection with the early
settlement right.
Upon early settlement of the purchase contracts
related to any PEPS Units or Treasury PEPS Units:
•
except as described below in "—Early
    Settlement Upon Cash Merger" the holder will
    receive                newly
    issued Class A common shares per PEPS Unit or Treasury PEPS
    Unit, subject to adjustment under the circumstances described
    under "—Anti-Dilution Adjustments," accompanied
    by an appropriate prospectus, if required by law, and
•
the senior notes, the applicable ownership
    interests in the Treasury portfolio, or the Treasury securities,
    as the case may be, related to the PEPS Units or Treasury PEPS
    Units will be transferred to the holder free and clear of our
    security interest,
If the purchase contract agent receives a PEPS
Unit or Treasury PEPS Unit certificate, if they are in
certificated form, accompanied by the completed "Election
to Settle Early" and required immediately available funds,
from a holder of PEPS Units or Treasury PEPS Units by 5:00 p.m.,
New York City time, on a business day and all conditions to
early settlement have been satisfied, that day will be
considered the
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settlement date. If the purchase contract agent
receives the above after 5:00 p.m., New York City time, on a
business day or at any time on a day that is not a business day,
the next business day will be considered the settlement date.
Upon early settlement of purchase contracts in
the manner described above, presentation and surrender of the
certificate evidencing the related PEPS Units or Treasury PEPS
Units and payment of any transfer or similar taxes payable by
the holder in connection with the issuance of the related
Class A common shares to any person other than the holder
of the PEPS Units or Treasury PEPS Units, we will cause the
Class A common shares being purchased to be issued, and the
related senior notes, applicable ownership interests in the
Treasury portfolio or the Treasury securities, as the case may
be, securing the purchase contracts to be released from the
pledge under the pledge agreement described in
"—Pledged Securities and Pledge Agreement" and
transferred, within three business days, to the purchasing
holder or the holder's designee.
Notice to Settle with Cash
Unless the Treasury portfolio has replaced the
senior notes as a component of PEPS Units, a holder of PEPS
Units may settle the related purchase contract with separate
cash on the fourth business day immediately preceding the
purchase contract settlement date. A holder of a PEPS Unit
wishing to settle the related purchase contract with separate
cash must notify the purchase contract agent by presenting and
surrendering the PEPS Unit certificate evidencing the PEPS Unit
at the offices of the purchase contract agent with the form of
"Notice to Settle by Separate Cash" on the reverse
side of the certificate completed and executed as indicated on
or prior to 5:00 p.m., New York City time, on the fifth
business day immediately preceding the purchase contract
settlement date. If a holder that has given notice of its
intention to settle the related purchase contract with separate
cash fails to deliver the cash to the collateral agent on the
fourth business day immediately preceding the purchase contract
settlement date, the senior notes will be included in the
remarketing of senior notes occurring on the third business day
immediately preceding the purchase contract settlement date.
Early Settlement Upon Cash Merger
Prior to the purchase contract settlement date,
if we are involved in a merger in which at least 30% of the
consideration for our Class A common shares consists of
cash or cash equivalents, which we refer to as a cash merger,
then on or after the date of the cash merger, each holder of a
purchase contract will have the right to accelerate and settle
such contract at the settlement rate in effect immediately
before the cash merger, provided that at such time, if so
required under the U.S. federal securities laws, there is
in effect a registration statement covering the securities to be
delivered in respect of the purchase contracts being settled. We
refer to this right as the "merger early settlement
right." We will provide each of the holders with a notice
of the completion of a cash merger within five business days
thereof. The notice will specify a date selected by us, which
shall be between 20 and 30 business days after the date of
the notice but no later than five business days prior to the
purchase contract settlement date, by which each holder's
merger early settlement right must be exercised. The notice will
set forth, among other things, the applicable settlement rate
and the amount of the cash, securities and other consideration
receivable by the holder upon settlement. To exercise the merger
early settlement right, you must deliver to the purchase
contract agent, three business days before the early settlement
date, the certificate evidencing your PEPS Units or Treasury
PEPS Units, if they are held in certificated form, and payment
of the applicable purchase price in immediately available funds.
If you exercise the merger early settlement right, we will
deliver to you on the early settlement date the kind and amount
of securities, cash or other property that you would have been
entitled to receive if you had settled the purchase contract
immediately before the cash merger at the settlement rate in
effect at such time based on the 20 consecutive trading
days ending on the third trading day immediately preceding the
effective date of the cash merger. You will also receive the
senior notes, applicable ownership interests in the Treasury
portfolio or Treasury securities, free and clear of our security
interest. If you do not elect to exercise your merger early
settlement right, your PEPS Units or Treasury PEPS Unit will
remain outstanding and subject to normal settlement on the
purchase contract settlement date.
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A holder of PEPS Units may exercise the merger
early settlement right only in integral multiples of
40 PEPS Units. If the Treasury portfolio has replaced the
senior notes as a component of PEPS Units, holders of the PEPS
Units may exercise the merger early settlement right only in
integral multiples
of           PEPS
Units. A holder of Treasury PEPS Units may exercise the merger
early settlement right only in integral multiples of
40 Treasury PEPS Units.
The merger early settlement right is also subject
to the condition that if required under U.S. federal securities
laws, we have a registration statement under the Securities Act
of 1933 in effect covering the securities deliverable upon
settlement of a purchase contract. We have agreed that, if
required under the U.S. federal securities laws, we will
use our reasonable best efforts to (1) have in effect a
registration statement covering the securities to be delivered
in respect of the purchase contracts being settled and
(2) provide a prospectus in connection therewith, in each
case in a form that may be used in connection with the early
settlement upon a cash merger.
Anti-Dilution Adjustments
The formula for determining the settlement rate
will be subject to adjustment, without duplication, upon the
occurrence of certain events, including:
(a)     the payment of
    dividends and distributions of Class A common shares on
    Class A common shares;
(b)     the issuance to
    all holders of Class A common shares of rights, warrants,
    purchase contracts or options, other than pursuant to any
    dividend reinvestment or share purchase plans, entitling them,
    for a period of up to 45 days, to subscribe for or purchase
    Class A common shares at less than the current market price
    thereof;
(c)     subdivisions,
    splits and combinations of Class A common shares;
(d)     distributions to
    all holders of Class A common shares of evidences of our
    indebtedness, shares of capital stock, securities, cash or
    property, excluding any dividend or distribution covered by
    clause (a) or (b) above and any dividend or distribution
    paid exclusively in cash;
(e)     distributions,
    other than regular quarterly cash distributions, consisting
    exclusively of cash to all holders of Class A common shares
    in an aggregate amount that, together with (1) other
    all-cash distributions (other than regular quarterly cash
    distributions) made to all holders of Class A common shares
    within the preceding 12 months and (2) any cash and
    the fair market value, as of the expiration of the tender or
    exchange offer referred to below, of consideration payable in
    respect of any tender or exchange offer (other than
    consideration payable in respect of any odd-lot tender offer) by
    us or any of our subsidiaries for Class A common shares
    concluded within the preceding 12 months, exceeds 15% of
    our aggregate market capitalization (aggregate market
    capitalization being the product of the current market price of
    Class A common shares multiplied by the number of
    Class A common shares then outstanding) on the date of the
    distribution; and
(f)     the successful
    completion of a tender or exchange offer made by us or any of
    our subsidiaries for Class A common shares which involves
    an aggregate consideration that, together with (1) any cash
    and the fair market value of other consideration payable in
    respect of any tender or exchange offer, other than
    consideration payable in respect of any odd-lot tender offer, by
    us or any of our subsidiaries for the Class A common shares
    concluded within the preceding 12 months and (2) the
    aggregate amount of any all-cash distributions, other than
    regular quarterly cash distributions, to all holders of
    Class A common shares within the preceding 12 months,
    exceeds 15% of our aggregate market capitalization on the
    expiration of the tender or exchange offer.
The "current market price" per share of
Class A common shares on any day means the average of the
daily closing prices for the five consecutive trading days
selected by us commencing not more than 30 trading days before,
and ending not later than, the earlier of the day in question
and the day before the "ex date" with respect to
the issuance or distribution requiring the computation. For
purposes of this paragraph, the term
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"ex date," when used with respect
to any issuance or distribution, will mean the first date on
which the Class A common shares trade regular way on the
applicable exchange or in the applicable market without the
right to receive the issuance or distribution.
In the case of certain reclassifications (for
example, of common equity securities to non-common equity
securities), consolidations, mergers, sales or transfers of
assets or other transactions pursuant to which the Class A
common shares are converted into the right to receive other
securities, cash or property, which we refer to as a
reorganization event, each purchase contract then outstanding
would, without the consent of the holders of the related PEPS
Unit or Treasury PEPS Unit, as the case may be, become an
obligation to purchase only the kind of securities, cash and
other property receivable upon such reorganization event (except
as otherwise specifically provided, without any interest thereon
and without any right to dividends or distributions thereon that
have a record date that is prior to the purchase contract
settlement date) by a holder of our Class A common shares
prior to the consummation of such reorganization event. The
amount of such securities, cash and other property receivable
upon settlement of a purchase contract after the consummation of
such reorganization event will be based on the value on the
purchase contract settlement date or the early settlement date,
as the case may be, of the exchange property. The "exchange
property" means the hypothetical amount of such securities,
cash and other property that would have been received upon
consummation of the reorganization event in exchange for the
number of Class A common shares deliverable at the maximum
settlement rate immediately prior to the closing date of the
reorganization event. The actual amount of exchange property
receivable on the purchase contract settlement date will be
based on the settlement rate and the applicable market value of
the exchange property at such time. The applicable market value
of the exchange property will be determined (1) with
respect to any publicly traded securities, based on the closing
price of such securities, and (2) with respect to any other
property (other than cash), based on the value of such property,
as determined by a nationally recognized investment banking firm
retained by us for this purpose. The actual amount of exchange
property receivable on the early settlement date pursuant to an
early settlement of the purchase contracts as described under
"—Early Settlement" will be determined based on
the minimum settlement rate applicable on such early settlement
date.
If at any time we make a distribution of property
to our stockholders which would be taxable to the stockholders
as a dividend for United States federal income tax purposes
(i.e., distributions out of our current or accumulated earnings
and profits or distributions of evidences of indebtedness or
assets, but generally not stock dividends or rights to subscribe
for capital stock) and, pursuant to the settlement rate
adjustment provisions of the purchase contract agreement, the
settlement rate is increased, this increase may give rise to a
taxable dividend for United States federal income tax purposes
to holders of PEPS Units or Treasury PEPS Units.
In addition, we may make increases in the
settlement rate as our board of directors deems advisable to
avoid or diminish any income tax to holders of our capital stock
resulting from any dividend or distribution of capital stock, or
rights to acquire capital stock, or from any event treated as
such for income tax purposes or for any other reasons.
Adjustments to the settlement rate will be
calculated to the nearest 1/10,000th of a share. No adjustment
in the settlement rate will be required unless the adjustment
would require an increase or decrease of at least one percent in
the settlement rate. However, any adjustments which are not
required to be made because they would have required an increase
or decrease of less than one percent will be carried forward and
taken into account in any subsequent adjustment.
We will be required, within ten business days
following the adjustment to the settlement rate, to provide
written notice to the purchase contract agent of the occurrence
of the adjustment and a statement in reasonable detail setting
forth the method by which the adjustment to the settlement rate
was determined and setting forth the revised settlement rate.
Each adjustment to the settlement rate will
result in a corresponding adjustment to the number of
Class A common shares issuable upon early settlement of a
purchase contract. Each adjustment to the settlement rate will
also result in an adjustment to the applicable market value,
solely to determine which of
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the three clauses in the definition of settlement
rate will be applicable on the purchase contract settlement date.
Termination
The purchase contracts, and our rights and
obligations and the rights and obligations of the holders of the
PEPS Units and Treasury PEPS Units under the purchase contracts,
including the right and obligation to purchase Class A
common shares, will immediately and automatically terminate upon
the occurrence of certain events of bankruptcy, insolvency or
reorganization with respect to us. The pledge agreement provides
that, upon any termination, the collateral agent will release
the related senior notes, applicable ownership interests in the
Treasury portfolio or Treasury securities, as the case may be,
held by it to the purchase contract agent for distribution to
the holders, subject, in the case of the applicable ownership
interests in the Treasury portfolio and the Treasury securities,
to the purchase contract agent's disposition of the subject
securities for cash, and the payment of this cash to the
holders, to the extent that the holders would otherwise have
been entitled to receive less than $1,000 principal amount or
interest, as the case may be, at maturity of any such security.
Upon any termination related to a bankruptcy, however, the
release and distribution may be subject to a delay. In the event
that we become the subject of a case under Bermuda's The
Companies Act 1981 and any subsequent enactments, such delay may
occur as a result of the automatic stay of proceedings against
us and continue until such automatic stay may be lifted.
Pledged Securities and Pledge
Agreement
Pledged securities will be pledged to the
collateral agent, for our benefit, pursuant to the pledge
agreement to secure the obligations of holders of PEPS Units or
Treasury PEPS Units to purchase Class A common shares under
the related purchase contracts. The rights of holders of PEPS
Units and Treasury PEPS Units to the related pledged securities
will be subject to our security interest created by the pledge
agreement. The pledge agreement provides that if we are entitled
to exercise our rights as a secured party following a failed
marketing, we may retain the pledged securities or dispose of
them, in accordance with applicable law, in full satisfaction of
the secured obligations.
No holder of PEPS Units or Treasury PEPS Units
will be permitted to withdraw the pledged securities related to
the PEPS Units or Treasury PEPS Units from the pledge
arrangement except
•
to substitute Treasury securities for the senior
    notes or applicable ownership interests in the Treasury
    portfolio as provided for under "Description of the PEPS
    Units—Creating Treasury PEPS Units,"
•
to substitute senior notes or applicable
    ownership interests in the Treasury portfolio for the related
    Treasury securities, as provided for under "Description of
    the PEPS Units—Recreating PEPS Units," or
•
upon the termination or early settlement of the
    related purchase contracts.
Subject to the security interest and the terms of
the purchase contract agreement and the pledge agreement, each
holder of PEPS Units, unless the Treasury portfolio has replaced
the senior notes as a component of PEPS Units, will be entitled
through the purchase contract agent and the collateral agent to
all of the proportional rights of the related senior notes,
including voting and redemption rights. Each holder of Treasury
PEPS Units and each holder of PEPS Units, if the Treasury
portfolio has replaced the senior notes as a component of PEPS
Units, will retain beneficial ownership of the related Treasury
securities or the appropriate applicable ownership interests in
the Treasury portfolio, as applicable, pledged in respect of the
related purchase contracts. We will have no interest in the
pledged securities other than our security interest.
Except as described in "Certain Provisions
of the Purchase Contracts, the Purchase Contract Agreement and
the Pledge Agreement—General," the collateral agent
will, upon receipt of payments, if any, on the pledged
securities, distribute the payments to the purchase contract
agent, which will in turn distribute those payments to the
persons in whose names the related PEPS Units or Treasury PEPS
Units are registered at the close of business on the record date
immediately preceding the date of payment. Notwithstanding the
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foregoing, if cash or other securities are
received in payment of the principal amount of the senior notes,
as a result of acceleration of the senior notes or otherwise,
such cash or other securities with a value not exceeding the
aggregate principal amount of the senior notes which are a
component of the PEPS Units shall remain pledged to the
collateral agent to secure the obligations of the holders under
the purchase contracts.
Book-Entry System
The Depository Trust Company, which we refer to
along with its successors in this capacity as the depositary,
will act as securities depositary for the PEPS Units and the
Treasury PEPS Units. The PEPS Units and the Treasury PEPS Units
will be issued only as fully registered securities registered in
the name of Cede & Co., the depositary's nominee.
One or more fully registered global security certificates,
representing the total aggregate number of PEPS Units or the
Treasury PEPS Units, will be issued and will be deposited with
the depositary and will bear a legend regarding the restrictions
on exchanges and registration of transfer referred to below.
The laws of some jurisdictions may require that
some purchasers of securities take physical delivery of
securities in definitive form. These laws may impair the ability
to transfer beneficial interests in the PEPS Units or the
Treasury PEPS Units so long as the PEPS Units or the Treasury
PEPS Units are represented by global security certificates.
The depositary is a limited-purpose trust company
organized under the New York Banking Law, a "banking
organization" within the meaning of the New York
Banking Law, a member of the Federal Reserve System, a
"clearing corporation" within the meaning of the
New York Uniform Commercial Code and a "clearing
agency" registered pursuant to the provisions of
Section 17A of the Securities Exchange Act of 1934. The
depositary holds securities that its participants deposit with
the depositary. The depositary also facilitates the settlement
among participants of securities transactions, including
transfers and pledges, in deposited securities through
electronic computerized book-entry changes in participants'
accounts, thereby eliminating the need for physical movement of
securities certificates. Direct participants include securities
brokers and dealers, banks, trust companies, clearing
corporations and certain other organizations. The depositary is
owned by a number of its direct participants and by the
New York Stock Exchange, the American Stock Exchange, Inc.,
and the National Association of Securities Dealers, Inc. Access
to the depositary's system is also available to others,
including securities brokers and dealers, banks and trust
companies that clear transactions through or maintain a direct
or indirect custodial relationship with a direct participant
either directly, or indirectly. The rules applicable to the
depositary and its participants are on file with the SEC.
In the event that
•
the depositary notifies us that it is unwilling
    or unable to continue as a depositary for the global security
    certificates and no successor depositary has been appointed
    within 90 days after this notice,
•
the depositary at any time ceases to be a
    clearing agency registered under the Securities Exchange Act of
    1934 when the depositary is required to be so registered to act
    as the depositary and no successor depositary has been appointed
    within 90 days after we learn that the depositary has
    ceased to be so registered,
•
a default under the purchase contract agreement
    or the indenture for the senior notes has occurred and is
    continuing, or
•
we, in our sole discretion, determine that the
    global security certificates shall be so exchangeable,
certificates for the PEPS Units or the Treasury
PEPS Units will be printed and delivered in exchange for
beneficial interests in the global security certificates. Any
global PEPS Unit or Treasury PEPS Unit that is exchangeable
pursuant to the preceding sentence will be exchangeable for PEPS
Unit or Treasury PEPS Unit certificates registered in the names
directed by the depositary. We expect that these instructions
will be based upon directions received by the depositary from
its participants with respect to ownership of beneficial
interests in the global security certificates.
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As long as the depositary or its nominee is the
registered owner of the global security certificates, the
depositary or its nominee, as the case may be, will be
considered the sole owner and holder of the global security
certificates and all PEPS Units or Treasury PEPS Units
represented by these certificates for all purposes under the
PEPS Units or the Treasury PEPS Units and the purchase contract
agreement. Except in the limited circumstances referred to
above, owners of beneficial interests in global security
certificates
•
will not be entitled to have such global security
    certificates or the PEPS Units or the Treasury PEPS Units
    represented by these certificates registered in their names,
•
will not receive or be entitled to receive
    physical delivery of PEPS Unit or Treasury PEPS Units
    certificates in exchange for beneficial interests in global
    security certificates, and
•
will not be considered to be owners or holders of
    the global security certificates or any PEPS Units or Treasury
    PEPS Units represented by these certificates for any purpose
    under the PEPS Units or the Treasury PEPS Units or the purchase
    contract agreement.
All payments on the PEPS Units or the Treasury
PEPS Units represented by the global security certificates and
all transfers and deliveries of related senior notes, applicable
ownership interests in the Treasury portfolio, Treasury
securities and Class A common shares will be made to the
depositary or its nominee, as the case may be, as the holder of
the securities.
Ownership of beneficial interests in the global
security certificates will be limited to participants or persons
that may hold beneficial interests through institutions that
have accounts with the depositary or its nominee. Ownership of
beneficial interests in global security certificates will be
shown only on, and the transfer of those ownership interests
will be effected only through, records maintained by the
depositary or its nominee, with respect to participants'
interests, or any participant, with respect to interests of
persons held by the participant on their behalf. Procedures for
settlement of purchase contracts on the purchase contract
settlement date or upon early settlement will be governed by
arrangements among the depositary, participants and persons that
may hold beneficial interests through participants designed to
permit settlement without the physical movement of certificates.
Payments, transfers, deliveries, exchanges and other matters
relating to beneficial interests in global security certificates
may be subject to various policies and procedures adopted by the
depositary from time to time. None of us, Monday Finance SA,
Monday SCA, the purchase contract agent or any agent of ours, or
the purchase contract agent will have any responsibility or
liability for any aspect of the depositary's or any
participant's records relating to, or for payments made on
account of, beneficial interests in global security
certificates, or for maintaining, supervising or reviewing any
of the depositary's records or any participant's
records relating to these beneficial ownership interests.
Although the depositary has agreed to the
foregoing procedures in order to facilitate transfer of
interests in the global security certificates among
participants, the depositary is under no obligation to perform
or continue to perform these procedures, and these procedures
may be discontinued at any time. We will not have any
responsibility for the performance by the depositary or its
direct participants or indirect participants under the rules and
procedures governing the depositary.
The information in this section concerning the
depositary and its book-entry system has been obtained from
sources that we believe to be reliable, but we have not
attempted to verify the accuracy of this information.
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CERTAIN PROVISIONS OF THE PURCHASE CONTRACTS,
THE PURCHASE CONTRACT
AGREEMENT AND THE PLEDGE AGREEMENT
In this description, the words "we,"
"us" and "our" refer only to Monday Ltd and
not to any of its subsidiaries.
General
Distributions on the PEPS Units will be payable,
purchase contracts, and documents relating to the PEPS Units,
Treasury PEPS Units or purchase contracts, will be settled, and
transfers of the PEPS Units and Treasury PEPS Units will be
registrable at the office of the purchase contract agent in the
Borough of Manhattan, The City of New York. In addition, if the
PEPS Units and the Treasury PEPS Units do not remain in
book-entry form, payment of distributions on the PEPS Units and
the Treasury PEPS Units may be made, at our option, by check
mailed to the address of the person entitled to payment as shown
on the security register or by a wire transfer to the account
designated by such person by a prior written notice.
Class A common shares will be delivered on
the purchase contract settlement date (or earlier upon early
settlement), or, if the purchase contracts have terminated as a
result of our bankruptcy, the related pledged securities will be
delivered potentially after a delay as a result of the
imposition of the automatic stay of proceedings against us (see
"Description of the Purchase
Contracts—Termination"), in each case upon
presentation and surrender of the applicable certificate at the
office of the purchase contract agent.
If a holder of outstanding PEPS Units or Treasury
PEPS Units fails to present and surrender the certificate
evidencing the PEPS Units or Treasury PEPS Units to the purchase
contract agent on the purchase contract settlement date, the
Class A common shares issuable in settlement of the related
purchase contract will be registered in the name of the purchase
contract agent. The shares, together with any distributions,
will be held by the purchase contract agent as agent for the
benefit of the holder until the applicable certificate is
presented and surrendered or the holder provides satisfactory
evidence that the certificate has been destroyed, lost or
stolen, together with any indemnity that may be required by the
purchase contract agent and us.
If the purchase contracts have terminated prior
to the purchase contract settlement date, the related pledged
securities have been transferred to the purchase contract agent
for distribution to the holders, and a holder fails to present
and surrender the certificate evidencing the holder's PEPS
Units or Treasury PEPS Units to the purchase contract agent, the
related pledged securities delivered to the purchase contract
agent and payments on the pledged securities will be held by the
purchase contract agent as agent for the benefit of the holder
until the applicable certificate is presented or the holder
provides the evidence and indemnity described above.
The purchase contract agent will have no
obligation to invest or to pay interest on any amounts held by
the purchase contract agent pending distribution, as described
above.
No service charge will be made for any
registration of transfer or exchange of the PEPS Units or
Treasury PEPS Units, except for any tax or other governmental
charge that may be imposed in connection with a transfer or
exchange.
Modification
With certain exceptions contained in the purchase
contract agreement and the pledge agreement for modifications
that are not adverse to holders, the purchase contract agreement
and the pledge agreement will contain provisions permitting us
and the purchase contract agent or collateral agent, as the case
may be, with the consent of the holders of not less than a
majority of the purchase contracts at the time outstanding,
including consent obtained in connection with a tender or
exchange offer, to modify the terms of the purchase contracts,
the purchase contract agreement or the pledge agreement.
However, no such modification may, without the consent of the
holder of each outstanding purchase contract affected by the
modification,
•
change any payment date,
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•
change the amount or type of pledged securities
    related to the purchase contract, impair the right of the holder
    of any pledged securities to receive distributions on the
    pledged securities or otherwise adversely affect the
    holder's rights in or to the pledged securities,
•
impair the right to institute suit for the
    enforcement of the purchase contract,
•
reduce the number of Class A common shares
    purchasable under the purchase contract, increase the price to
    purchase Class A common shares upon settlement of the
    purchase contract, change the purchase contract settlement date
    or the right to early settlement or otherwise adversely affect
    the holder's rights under the purchase contract or
•
reduce the above-stated percentage of outstanding
    purchase contracts the consent of the holders of which is
    required for the modification or amendment of the provisions of
    the purchase contracts, the purchase contract agreement or the
    pledge agreement.
If any amendment or proposal referred to above
would adversely affect only the PEPS Units or the Treasury PEPS
Units, then only the affected class of holders will be entitled
to vote on the amendment or proposal, and the amendment or
proposal will not be effective except with the consent of the
holders of not less than a majority of the affected class or of
all of the holders of the affected classes, as applicable.
No Consent to Assumption
Each holder of PEPS Units or Treasury PEPS Units,
by acceptance of these securities, will under the terms of the
purchase contract agreement and the PEPS Units or Treasury PEPS
Units, as applicable, be deemed expressly to have withheld any
consent to the assumption (i.e., affirmance) of the related
purchase contracts by us or our trustee if we become the subject
of a case under the U.S. Bankruptcy Code or other similar U.S.
state or federal law providing for reorganization or liquidation.
Consolidation, Amalgamation, Merger, Sale or
Conveyance
We will covenant in the purchase contract
agreement that we will not merge with and into, amalgamate with,
consolidate with or convert into any other entity or sell,
assign, transfer, lease or convey all or substantially all of
our properties and assets to any person or entity, unless
(1) the successor entity expressly assumes our obligations
under the purchase contracts, the purchase contract agreement,
the pledge agreement and the remarketing agreement and
(2) the successor entity is not, immediately after the
merger, amalgamation, consolidation, conversion, sale,
assignment, transfer, lease or conveyance, in default of its
payment obligations under the purchase contracts, the purchase
contract agreement, the pledge agreement and the remarketing
agreement or in material default in the performance of any other
covenants under these agreements.
Title
We, the purchase contract agent and the
collateral agent may treat the registered owner of any PEPS
Units or Treasury PEPS Units as the absolute owner of the PEPS
Units or Treasury PEPS Units for the purpose of making payment
and settling the related purchase contracts and for all other
purposes.
Replacement of PEPS Unit or Treasury PEPS Unit
Certificates
In the event that physical certificates have been
issued, any mutilated PEPS Unit or Treasury PEPS Unit
certificate will be replaced by us at the expense of the holder
upon surrender of the certificate to the purchase contract
agent. PEPS Unit or Treasury PEPS Unit certificates that become
destroyed, lost or stolen will be replaced by us at the expense
of the holder upon delivery to us and the purchase contract
agent of evidence of their destruction, loss or theft
satisfactory to us and the purchase contract agent. In the case
of a destroyed, lost or stolen PEPS Unit certificate, an
indemnity satisfactory to the purchase contract agent and us may
be required at the expense of the holder of the PEPS Units or
Treasury PEPS Units evidenced by the certificate before a
replacement will be issued.
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Notwithstanding the foregoing, we will not be
obligated to issue any PEPS Unit or Treasury PEPS Unit
certificates on or after the business day immediately preceding
the purchase contract settlement date (or after early
settlement) or after the purchase contracts have terminated. The
purchase contract agreement will provide that, in lieu of the
delivery of a replacement PEPS Unit or Treasury PEPS Unit
certificate following the purchase contract settlement date, the
purchase contract agent, upon delivery of the evidence and
indemnity described above, will deliver the Class A common
shares issuable pursuant to the purchase contracts included in
the PEPS Units or Treasury PEPS Units evidenced by the
certificate, or, if the purchase contracts have terminated prior
to the purchase contract settlement date, transfer the pledged
securities included in the PEPS Units or Treasury PEPS Units
evidenced by the certificate.
Governing Law
The purchase contract agreement, the pledge
agreement and the purchase contracts will be governed by, and
construed in accordance with, the laws of the State of New York.
Information Concerning the Purchase Contract
Agent
The Bank of New York will be the purchase
contract agent. The purchase contract agent will act as the
agent for the holders of PEPS Units and Treasury PEPS Units from
time to time. The purchase contract agreement will not obligate
the purchase contract agent to exercise any discretionary
actions in connection with a default under the terms of the PEPS
Units and Treasury PEPS Units or the purchase contract agreement.
The purchase contract agreement will contain
provisions limiting the liability of the purchase contract
agent. The purchase contract agreement will contain provisions
under which the purchase contract agent may resign or be
replaced. This resignation or replacement would be effective
upon the acceptance of appointment by a successor selected by us.
The Bank of New York maintains commercial banking
relationships with us.
Information Concerning the Collateral
Agent
The Bank of New York will be the collateral
agent. The collateral agent will act solely as our agent and
will not assume any obligation or relationship of agency or
trust for or with any of the holders of the PEPS Units or
Treasury PEPS Units except for the obligations owed by a pledge
of property to the owner of the property under the pledge
agreement and applicable law.
The pledge agreement will contain provisions
limiting the liability of the collateral agent. The pledge
agreement will contain provisions under which the collateral
agent may resign or be replaced. This resignation or replacement
would be effective upon the acceptance of appointment by a
successor selected by us.
Since The Bank of New York is serving as both the
collateral agent and the purchase contract agent, if an event of
default, except an event of default occurring as a result of a
failed remarketing occurs under the purchase contract agreement
or the pledge agreement, The Bank of New York will resign as the
collateral agent, but remain as the purchase contract agent. We
will then select a new collateral agent in accordance with the
terms of the pledge agreement.
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DESCRIPTION OF THE SENIOR NOTES
The following description is a summary of the
terms of the senior notes due 2008 issued by Monday Finance SA
and guaranteed by Monday SCA. The senior notes will be issued
under an indenture dated as of the date of the original issuance
of the PEPS Units and qualified under the Trust Indenture Act,
which we refer to as the senior note indenture. The Bank of New
York will act as the indenture trustee. The terms of the senior
note indenture will be those provided in the senior note
indenture and those made part of the senior note indenture by
the Trust Indenture Act.
The descriptions in this prospectus contain a
description of certain terms of the senior notes and the senior
note indenture but do not purport to be complete, and reference
is hereby made to the senior note indenture and the form of
senior note that are or will be filed as exhibits to the
registration statement of which this prospectus forms a part and
to the Trust Indenture Act.
General
The senior notes will be Monday Finance SA's
direct, unsecured unsubordinated obligations and will rank
without preference or priority among themselves and equally with
all of Monday Finance SA's existing and future unsecured
unsubordinated indebtedness.
The senior notes initially will be issued in an
aggregate principal amount equal to $400 million. If the
over-allotment option is exercised in full by the underwriters
an additional $60 million aggregate principal amount of
senior notes will be issued. The senior note indenture does not
limit the incurrence or issuance of other secured or unsecured
debt by Monday Finance SA or Monday SCA, including secured
indebtedness.
The senior notes will not be subject to a sinking
fund provision. Unless a special event redemption occurs, the
entire principal amount of the senior notes will mature and
become due and payable, together with any accrued and unpaid
interest or additional amounts thereon,
on                     ,
2008.
Senior notes forming a part of PEPS Units will be
issued in certificated form in denominations of $25 or integral
multiples of $25 and may be transferred or exchanged at the
offices described below. Payments on senior notes issued as a
global security will be made to the depositary, a successor
depositary or, in the case that no depositary is used, to a
paying agent for the senior notes. Principal, interest and
additional amounts with respect to certificated notes will be
payable, the transfer of the senior notes will be registrable
and senior notes will be exchangeable for senior notes of other
denominations of a like aggregate principal amount, at the
corporate trust office or agency of the trustee in New York, New
York. However, at our option, payment of interest may be made by
check mailed to the address of the entitled holder or by wire
transfer to an account appropriately designated by the entitled
holder.
The senior note indenture does not contain
provisions that afford holders of the senior notes protection in
the event Monday Finance SA or Monday SCA is involved in a
highly leveraged transaction or other similar transaction that
may adversely affect such holders.
Guarantees
Monday SCA will absolutely, irrevocably and
unconditionally guarantee Monday Finance SA's obligation to
pay principal, interest, additional amounts, if any, and
premium, if any, when due on the senior notes, including the
payment of the put price. The guarantee of each senior note by
Monday SCA will be its direct, unsecured unsubordinated
obligation and will rank without preference or priority among
all such guarantees and equally with all of Monday SCA's
existing and future unsecured unsubordinated indebtedness.
Because Monday SCA is a holding company with no independent
operations, its ability to meet its obligations is dependent
upon the performance of its subsidiaries and their ability to
transfer funds to Monday SCA. Therefore, the guarantees are
effectively subordinated to debt and preferred stock incurred or
issued by Monday SCA's subsidiaries, as well as to
liabilities of Monday SCA secured by assets of Monday SCA, to
the extent of the value of those assets. The senior note
indenture does not limit the amount of debt or preferred stock
that Monday SCA or its subsidiaries may incur or issue or
prohibit the creation of liens on their respective assets.
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In the senior note indenture, Monday SCA will
waive its right to require that the indenture trustee or the
holders of senior notes exhaust their remedies against Monday
Finance SA prior to bringing suit against Monday SCA under the
guarantees. The guarantees are a guarantee of payment when due,
which means that the holder of the senior notes, as a guaranteed
party, may institute a legal proceeding directly against Monday
SCA to enforce its rights under the senior note indenture and
the guarantees without first instituting a legal proceeding
against any other person or entity. The guarantees are not a
guarantee of collection.
Interest
Each senior note will bear interest initially at
the rate of      % per year from the
original issuance date, payable quarterly in arrears
on                     ,                     ,                     and                     of
each year,
commencing                     ,
2002. Following a successful remarketing, interest on the senior
notes will be payable semi-annually in arrears on
each                     and                     ,
commencing                     ,
2007 (the date six months following the purchase contract
settlement date). Interest will be payable by check or wire
transfer to the person in whose name the senior note is
registered at the close of business on the first day of the
month in which the interest payment date falls.
The applicable interest rate on the senior notes
will be reset on the reset date to the reset rate described
below under "—Market Rate Reset." The reset date
will be the date of a successful remarketing of the senior notes
as described above under "Description of the Purchase
Contracts—Remarketing." The reset rate will become
effective on the reset effective date, which is three business
days immediately following the reset date. If there is not a
successful remarketing of the senior notes, the interest rate on
the senior notes will not be reset and interest will continue to
be paid quarterly.
The amount of interest payable on the senior
notes for any period will be computed (1) for any full
quarterly or semi-annual period on the basis of a 360-day year
of twelve 30-day months and (2) for any period shorter than
a full quarterly period, or, upon a successful remarketing, a
full semi-annual period, on the basis of a 30-day month and, for
any period less than a month, on the basis of the actual number
of days elapsed per 30-day month. In the event that any date on
which interest is payable on the senior notes is not a business
day, then payment of the interest payable on such date will be
made on the next day that is a business day (and without any
interest or other payment in respect of any such delay), except
that, if such business day is in the next calendar year, then
such payment will be made on the preceding business day.
Market Rate Reset
The reset rate will be equal to the rate that is
sufficient to allow a successful remarketing of the notes and
will be determined by the remarketing agent as the rate the
senior notes should bear in order to have an approximate market
value of 100.25%, but not less than 100%, of their principal
amount. The reset rate may not exceed the maximum rate, if any,
permitted by applicable law.
Optional Remarketing
On or prior to the fifth business day preceding
the purchase contract settlement date, holders of senior notes
that are not part of PEPS Units may elect to have their senior
notes remarketed in the same manner as senior notes that are
part of PEPS Units by delivering their senior notes along with a
notice of this election to the custodial agent designated by us.
The custodial agent will hold the senior notes in an account
separate from the collateral account in which the pledged senior
notes are held. Holders of senior notes electing to have their
senior notes remarketed will also have the right to withdraw
their election on or prior to the fifth business day immediately
preceding the purchase contract settlement date. The proceeds of
the remarketing of senior notes that are not part of PEPS Units
will be paid to holders in cash, after deduction, to the extent
permissible, of the remarketing fee. See "Description of
the Purchase Contracts—Remarketing."
Put Option upon a Failed Remarketing
If the remarketing of the senior notes has
resulted in a failed remarketing, holders of senior notes that
are not part of PEPS Units will have the right to put the senior
notes to Monday Finance SA
on                     ,
2006
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(the date six weeks following the purchase
contract settlement date), upon at least three business
days' prior notice, at a price equal to $25 per senior
note, plus accrued and unpaid interest and additional amounts,
if any. The payment of the put price is guaranteed by Monday
SCA. See "— Guarantees."
Payment of Additional Amounts on the Senior
Notes
Monday Finance SA will make all payments on the
senior notes, including the put price, and Monday SCA will make
any payments pursuant to the guarantee of the senior notes, in
each case without withholding or deduction at source for, or on
account of, any present or future taxes, fees, duties,
assessments or governmental charges of whatever nature imposed
or levied by or on behalf of the jurisdiction in which it is
organized (a "taxing jurisdiction") or any political
subdivision or taxing authority thereof or therein, unless such
taxes, fees, duties, assessments or governmental charges are
required to be withheld or deducted by (x) the laws, or any
regulations or rulings promulgated thereunder, of a taxing
jurisdiction or any political subdivision or taxing authority
thereof or therein or (y) an official position regarding
the application, administration, interpretation or enforcement
of any such laws, regulations or rulings, including, without
limitation, a holding by a court of competent jurisdiction or by
a taxing authority in a taxing jurisdiction or any political
subdivision thereof. Monday Finance SA and Monday SCA are
organized under the laws of Luxembourg.
If a withholding or deduction by Monday Finance
SA or Monday SCA, as the case may be, is required by the law of
a taxing jurisdiction, Monday Finance SA will, subject to
certain limitations and exceptions described below, pay to the
holder of any senior note such additional amounts as may be
necessary so that every net payment made to such holder in
respect thereof, after the withholding or deduction, will not be
less than the amount provided for in the senior note or the
senior note indenture to be then due and payable.
Notwithstanding the foregoing, Monday Finance SA
and Monday SCA will not be required to pay any additional
amounts to a holder of a senior note for or on account of:
(1)     any tax, fee,
    duty, assessment or governmental charge of whatever nature which
    would not have been imposed but for the fact that such holder
    (a) was a resident, domiciliary or national of, or engaged
    in business or maintained a permanent establishment or was
    physically present in, the relevant taxing jurisdiction or any
    political subdivision thereof or otherwise had some connection
    with the relevant taxing jurisdiction other than by reason of
    the mere ownership of, or receipt of payment under, such senior
    note, (b) presented such senior note for payment in the
    relevant taxing jurisdiction or any political subdivision
    thereof, unless such senior note could not have been presented
    for payment elsewhere, or (c) presented such senior note
    for payment more than 30 days after the date on which the
    payment in respect of such senior note became due and payable or
    provided for, whichever is later, except to the extent that the
    holder would have been entitled to such additional amounts if it
    had presented such senior note for payment on any day within
    that 30-day period;
(2)     any estate,
    inheritance, gift, sale, transfer, personal property or similar
    tax, assessment or other governmental charge;
(3)     any tax,
    assessment or other governmental charge that is imposed or
    withheld by reason of the failure by the holder or the
    beneficial owner of such senior note to comply with any
    reasonable request by us addressed to the holder within
    90 days of such request (a) to provide information
    concerning the nationality, residence or identity of the holder
    or such beneficial owner or (b) to make any declaration or
    other similar claim or satisfy any information or reporting
    requirement, which is required or imposed by statute, treaty,
    regulation or administrative practice of the relevant taxing
    jurisdiction or any political subdivision thereof as a
    precondition to exemption from all or part of such tax,
    assessment or other governmental charge; or
(4)     any combination
    of items (1), (2) and (3).
In addition, Monday Finance SA and Monday SCA
will not pay additional amounts with respect to any payment of
any amounts on any such senior note to any holder who is a
fiduciary or partnership or other than the sole beneficial owner
of such senior note to the extent such payment would be required
by the laws of the
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relevant taxing jurisdiction, or any political
subdivision or relevant taxing authority thereof or therein, to
be included in the income for tax purposes of a beneficiary or
partner or settlor with respect to such fiduciary or a member of
such partnership or a beneficial owner who would not have been
entitled to such additional amounts had it been the holder of
the senior note.
Optional Redemption—Special
Events
If a tax event or accounting event, each as
defined below and collectively referred to as "special
events," occurs and is continuing, Monday Finance SA may
redeem, at its option, the senior notes in whole, but not in
part, at a price equal to, for each senior note, the redemption
amount, as defined below, plus any overdue unpaid interest and
any additional amounts, which we refer to collectively as the
"redemption price," thereon to the date of redemption,
which we refer to as the special event redemption date. We refer
to Monday Finance SA's redemption of the senior notes on
the special event redemption date as a special event redemption.
If a special event redemption occurs prior to the purchase
contract settlement date, the redemption price payable in
respect of the senior notes that are a component of PEPS Units
will be distributed to the collateral agent, which in turn will
apply an amount equal to the redemption amount of such
redemption price to purchase the Treasury portfolio and remit
the remaining portion, if any, of such redemption price to the
purchase contract agent for payment to the holders of the PEPS
Units. The Treasury portfolio will be substituted for the senior
notes and the applicable ownership interests therein will be
pledged to the collateral agent for our benefit to secure PEPS
Unit holders' obligations to purchase the Class A
common shares under the related purchase contracts. The
redemption price will be paid directly to holders of senior
notes that are not part of PEPS Units. If a special event
redemption occurs after the purchase contract settlement date,
the Treasury portfolio will not be purchased and the proceeds
will be paid directly to holders of senior notes.
"Accounting event" means our
independent auditors have determined that, as a result of a
change in accounting rules after the date of issuance of the
senior notes, we must either (1) account for the purchase
contract as a derivative under SFAS 133 or (2) account for
the PEPS Units using the if-converted method under SFAS 128, and
that such accounting treatment will cease to apply upon
redemption of the senior notes.
"Tax event" means the receipt by Monday
Finance SA of an opinion of counsel, rendered by a law firm
having an internationally recognized Luxembourg tax practice, to
the effect that, as a result of any amendment to, change in or
announced proposed change in the laws, or any regulations
thereunder, of Luxembourg or any political subdivision or taxing
authority thereof or therein, or as a result of any official
administrative decision, pronouncement, judicial decision or
action interpreting or applying such laws or regulations, which
amendment or change is enacted or promulgated or which proposed
change, pronouncement, action or decision is announced on or
after the date of issuance of the senior notes, there is more
than an insubstantial increase in the risk that Monday Finance
SA or Monday SCA will be required to pay any additional amount
on the senior notes as set forth under "—Payment of
Additional Amounts on the Senior Notes," or (2) Monday
Finance SA, or Monday SCA, is, or within 90 days of the
date of such opinion will be, subject to more than a de minimis
amount of other taxes, duties or other governmental charges in
connection with any payment pursuant to the senior notes or the
guarantee of the senior notes.
"Redemption amount" means, for each
senior note, (1) prior to the purchase contract settlement
date, the product of the principal amount of such senior note
and a fraction, the numerator of which is the treasury portfolio
purchase price, as defined below, and the denominator of which
is the applicable principal amount, as defined below, and
(2) on or after the purchase contract settlement date, the
principal amount of such senior note.
"Treasury portfolio purchase price"
means the lowest aggregate price quoted by a primary
U.S. government securities dealer in New York City, a
"primary treasury dealer", to the quotation agent, as
defined below, on the third business day preceding the special
event redemption date for the purchase of the Treasury portfolio
for settlement on the special event redemption date.
"Applicable principal amount" means
either (1) if the special event redemption date occurs
prior to the purchase contract settlement date, the aggregate
principal amount of the senior notes that are part of the
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PEPS Units on the special event redemption date
or (2) if the special event redemption date occurs on or
after the purchase contract settlement date, the aggregate
principal amount of the senior notes outstanding on the special
event redemption date.
"Treasury portfolio" means, with
respect to the applicable principal amount of senior notes, a
portfolio of zero-coupon U.S. treasury securities
consisting of (1) principal or interest strips of
U.S. treasury securities that mature on or prior to the
business day immediately preceding the purchase contract
settlement date in an aggregate amount at maturity equal to the
applicable principal amount and (2) with respect to each
scheduled interest payment date on the senior notes that occurs
after the special event redemption date, principal or interest
strips of U.S. treasury securities that mature on or prior
to the business day immediately preceding that payment date in
an aggregate amount at maturity equal to the aggregate interest
payment that would be due on the applicable principal amount of
the senior notes on that payment date.
"Quotation agent" means (1) Morgan
Stanley & Co. Incorporated and its respective
successors, provided that if Morgan Stanley & Co.
Incorporated ceases to be a primary treasury dealer, we will
substitute another primary treasury dealer therefor, or
(2) any other primary treasury dealer selected by us.
Events of Default
If any event of default shall occur and be
continuing, the trustee will have the right to declare the
principal of and the interest on the senior notes, and any other
amounts payable under the senior note indenture, to be due and
payable and to enforce the other rights of the holders as
creditors with respect to the senior notes.
The following are events of default under the
senior note indenture:
•
failure to pay interest or additional amounts on
    the senior notes when due, continued for a period of
    30 days;
•
failure to pay the principal or premium, if any,
    of the senior notes when due and payable;
•
failure to pay the put price of the senior notes
    when due;
•
failure to comply, within 90 days after
    notice provided in accordance with the terms of the senior note
    indenture, with its other obligations under the senior note
    indenture; and
•
certain events of bankruptcy, insolvency or
    reorganization relating to Monday Finance SA or Monday SCA
If an event of default occurs and is continuing
with respect to the senior notes, the trustee or the holders of
at least 25% in principal amount of the outstanding senior notes
may declare the principal of and accumulated but unpaid interest
on all the senior notes to be due and payable. Upon such a
declaration, such principal and interest shall be due and
payable immediately. Notwithstanding the foregoing, if an event
of default relating to specific events of Monday Finance
SA's or Monday SCA's bankruptcy, insolvency or
reorganization occurs and is continuing, the principal of and
interest on all the senior notes will become and be immediately
due and payable without any declaration or other act on the part
of the trustee or any holders of the senior notes. Under some
circumstances, the holders of a majority in principal amount of
the then-outstanding senior notes may rescind any acceleration
and its consequences.
Subject to the provisions of the senior note
indenture relating to the duties of the trustee, if an event of
default occurs and is continuing, the trustee will be under no
obligation to exercise any of its rights or powers under the
senior note indenture at the request or direction of any of the
holders of the senior notes, unless those holders have offered
to the trustee indemnity or security satisfactory to it against
any loss, liability or
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expense. Except to enforce the right to receive
payment of principal or interest when due, no senior note holder
may pursue any remedy with respect to the senior note indenture
or the senior notes unless:
•
that holder has previously given the trustee
    notice that an event of default is continuing;
•
holders of at least 25% in principal amount of
    the outstanding senior notes have requested in writing the
    trustee to pursue the remedy;
•
those holders have offered the trustee security
    and indemnity reasonably satisfactory to it against any loss,
    liability or expense;
•
the trustee has not complied with such request
    within 60 days of receiving it with an offer of security
    and indemnity; and
•
the holders of a majority in principal amount of
    the outstanding senior notes have not given the trustee a
    direction inconsistent with such request within such 60-day
    period.
Subject to some restrictions, the holders of a
majority in principal amount of the outstanding senior notes are
given the right to direct the time, method and place of
conducting any proceeding for any remedy available to the
trustee, or of exercising any trust or power conferred on the
trustee. The trustee, however, may refuse to follow any
direction that conflicts with law or the senior note indenture
or that the trustee determines is unduly prejudicial to the
rights of any other senior note holder, or that would involve
the trustee in personal liability.
The senior note indenture provides that if a
default occurs and is continuing with respect to the senior
notes and is known to the trustee, the trustee must mail notice
of the default within 90 days after it becomes known to the
trustee to each holder of the senior notes. Except in the case
of a default in the payment of principal of or interest on any
senior note, the trustee may withhold notice if and so long as a
committee of its trust officers determines that withholding
notice is in the interests of the holders of the senior notes.
In addition, Monday Finance SA must deliver to the trustee,
within 120 days after the end of each fiscal year, an
officer's certificate indicating whether the signers
thereof know of any default that occurred during the previous
year. Monday Finance SA also is required to deliver to the
trustee, within 30 days after its occurrence, written
notice of any events which would constitute certain defaults,
their status and what action Monday Finance SA is taking or
propose to take.
Prior to the acceleration of the maturity of the
senior notes, the holders of a majority in aggregate principal
amount of the then-outstanding senior notes may on behalf of the
holders of all the senior notes waive any past default or event
of default, except:
•
a default in the payment of the principal of or
    interest on any of the senior notes; and
•
a default that cannot be waived without the
    consent of every holder of the senior notes.
A waiver will serve to end such default, to cure
any event of default, and to restore Monday Finance SA, the
trustee and holders of the affected senior notes to their former
positions and rights. No such waiver will extend to any
subsequent or other default.
Consolidation, Merger and Sale of
Assets
Each of Monday Finance SA and Monday SCA may not
(a) merge with or into or consolidate with any other
entity, or (b) sell, assign, transfer, lease or convey all
or substantially all of its properties and assets to any person,
firm or corporation, and no person shall merge with or into or
consolidate with Monday Finance SA or Monday SCA, unless:
•
Monday Finance SA or Monday SCA is the surviving
    person, or in case Monday Finance SA or Monday SCA merges with
    or into or consolidates with another entity or sells, assigns,
    transfers, leases or conveys all or substantially all of its
    properties and assets to any person, firm or corporation, the
    successor entity expressly assumes the obligations of Monday
    Finance SA or Monday SCA, as the case may be, under the senior
    notes, the guarantees, or the senior note indenture, as the case
    may be, and
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•
immediately after giving effect thereto, no event
    of default, and no event which, after notice or lapse of time or
    both, would become an event of default, shall have occurred and
    be continuing.
Agreement by Purchasers of Certain Tax
Treatment
Each senior note will provide that, by acceptance
of the senior note, the holder thereof intends that the senior
note constitutes debt and agrees to treat it as debt for United
States federal, state and local tax purposes.
Book-Entry and Settlement
Senior notes that are released from the pledge
following substitution or settlement of the purchase contracts
will be issued in the form of one or more global certificates,
which we refer to as global securities, registered in the name
of the depositary or its nominee. Except under the limited
circumstances described below, senior notes represented by the
global securities will not be exchangeable for, and will not
otherwise be issuable as, senior notes in certificated form. The
global securities described above may not be transferred except
by the depositary to a nominee of the depositary or by a nominee
of the depositary to the depositary or another nominee of the
depositary or to a successor depositary or its nominee.
The laws of some jurisdictions may require that
certain purchasers of securities take physical delivery of the
securities in certificated form. These laws may impair the
ability to transfer beneficial interests in such a global
security.
Except as provided below, owners of beneficial
interests in such a global security will not be entitled to
receive physical delivery of senior notes in certificated form
and will not be considered the holders (as defined in the senior
note indenture) thereof for any purpose under the senior note
indenture, and no global security representing senior notes
shall be exchangeable, except for another global security of
like denomination and tenor to be registered in the name of the
depositary or its nominee or a successor depositary or its
nominee. Accordingly, each beneficial owner must rely on the
procedures of the depositary or if such person is not a
participant, on the procedures of the participant through which
such person owns its interest to exercise any rights of a holder
under the senior note indenture.
In the event that
•
the depositary notifies Monday Finance SA that it
    is unwilling or unable to continue as a depositary for the
    global security certificates and no successor depositary has
    been appointed within 90 days after this notice,
•
the depositary at any time ceases to be a
    clearing agency registered under the Securities Exchange Act at
    which time the depositary is required to be so registered to act
    as the depositary and no successor depositary has been appointed
    within 90 days after we learn that the depositary has
    ceased to be so registered,
•
Monday Finance SA, in its sole discretion,
    determines that the global security certificates shall be so
    exchangeable or
•
an event of default under the senior note
    indenture has occurred and is continuing,
certificates for the senior notes will be printed
and delivered in exchange for beneficial interests in the global
security certificates. Any global security that is exchangeable
pursuant to the preceding sentence shall be exchangeable for
senior note certificates registered in the names directed by the
depositary. We expect that these instructions will be based upon
directions received by the depositary from its participants with
respect to ownership of beneficial interests in the global
security certificates.
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DESCRIPTION OF SHARE CAPITAL
In this section, the words "we,"
"us" and "our" refer only to Monday Ltd
and not to any of its subsidiaries.
The following information reflects our memorandum
of association and bye-laws as these documents will be in effect
upon closing of the concurrent offerings.
General
Our authorized share capital is divided into:
•
2,000,000,000 Class A common shares, par
    value $.0001 per share,
•
2,000,000,000 Class X common shares, par
    value $.0001 per share, and
•
1,000,000,000 preferred shares, including
    Series A Junior Preferred Shares.
Common Shares
Immediately following the closing of the
concurrent offerings, assuming no exercise of the
underwriters' over-allotment option and no redemption of
Monday SCA Class I common shares or exchange of
exchangeable shares issued by one of Monday SCA's
subsidiaries, we will have approximately   million
Class A common shares outstanding, not including
approximately   million restricted Class A common
shares and Class A common shares underlying fully-vested
restricted share units, and approximately   million
Class X common shares outstanding.
Voting
Holders of our Class A common shares, other
than PricewaterhouseCoopers firms, and holders of our
Class X common shares are entitled to one vote per share
held of record on the election of directors and on all matters
submitted to a vote of shareholders at which they are present in
person or by proxy. Upon the transfer of our Class A common
shares held by PricewaterhouseCoopers firms, these shares will
have full voting rights. Holders of our Class A common
shares and Class X common shares do not have cumulative
voting rights in the election of directors.
Class X
Rights
Each Monday SCA Class I common share and
each exchangeable share of one of Monday SCA's subsidiaries
will be issued together with a right to acquire one Class X
common share for the par value of that share, which will be
nominal. This right will be exercisable by any holder that is
not a PricewaterhouseCoopers firm. The rights will be
transferable only together with the Monday SCA Class I
common shares or exchangeable shares of one of Monday SCA's
subsidiaries in respect of which they were originally issued.
The rights will be exercised automatically upon issuance or
transfer to any person that is not a PricewaterhouseCoopers firm.
Redemption
of Class X Shares
We may, at our option, redeem at any time any
Class X common share for a redemption price equal to the
par value of the Class X common share, and we may cancel a
right to acquire a Class X common share at any time without
compensation. We will agree, however, with each holder of
Class X common shares or a right to acquire a Class X
common share not to redeem any Class X common share of a
holder or cancel any right to acquire a Class X common
share if the redemption or cancellation would reduce the number
of Class X common shares or rights to acquire Class X
common shares held by that holder to a number that is less than
the number of Monday SCA Class I common shares and
exchangeable shares of one of Monday SCA's subsidiaries
held by that holder. It is our intention to redeem Class X
common shares from time to time so that the aggregate number of
outstanding Class X common shares does not exceed the
aggregate
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number of outstanding Monday SCA Class I
common shares and exchangeable shares of Monday SCA's
subsidiaries held by any person other than us or one of our
subsidiaries.
Dividends
Each Class A common share is entitled to a
pro rata part of a dividend, if any, at the times and in the
amounts which our board of directors from time to time
determines to declare, subject to any preferred dividend rights
attaching to any preferred shares. Class X common shares
are not entitled to dividends.
Liquidation
Rights
Each Class A common share is entitled on our
liquidation to be paid a pro rata part of the value of our
assets remaining after payment of our liabilities, subject to
any preferred rights on liquidation attaching to any preferred
shares. Class X common shares are not entitled to be paid
any amount upon our liquidation.
No
Pre-emptive Rights
Holders of our Class A common shares and
Class X common shares have no pre-emptive rights.
Transfer
Class A common shares are, subject to the
restrictions and requirements described in this prospectus,
transferable by their holders. Class X common shares are
transferable by their holders only with our consent. Please read
"Arrangements with the PricewaterhouseCoopers Network of
Firms—Shareholders Agreement" and "Arrangements
with Our Partners—Monday Ltd Voting Agreement" for a
description of the transfer restrictions that apply to our
Class A common shares and Class X common shares.
Preferred Shares
We are authorized to issue 1,000,000,000
preferred shares. Our board of directors has the authority to
issue the preferred shares in one or more series and to fix the
rights, preferences, privileges and restrictions attaching to
those shares including dividend rights, conversion rights,
voting rights, redemption terms and prices, liquidation
preferences and the numbers of shares constituting any series
and the designation of any series, without further vote or
action by our shareholders. None of our preferred shares will be
outstanding upon closing of the concurrent offerings.
Any series of preferred shares could, as
determined by our board of directors at the time of issuance,
rank senior to our Class A common shares and Class X
common shares with respect to dividends, voting rights,
redemption and liquidation rights. These preferred shares are of
the type commonly known as blank-check preferred shares.
We believe that the ability of our board of
directors to issue one or more series of our preferred shares
will provide us with flexibility in structuring possible future
financings and acquisitions and in meeting other corporate needs
which might arise. Our authorized preferred shares, as well as
our Class A common shares and Class X common shares will be
available for issuance without further action by our
shareholders, unless such action is required by applicable law
or the rules of any stock exchange or automated quotation system
on which our securities may be listed or traded. The New York
Stock Exchange currently requires shareholder approval as a
prerequisite to listing shares in several instances, including
where the present or potential issuance of shares could result
in an increase of at least 20% in the total number of
Class A common shares and Class X common shares
combined, or in the amount of voting securities, outstanding. If
the approval of our shareholders is not required for the
issuance of our preferred shares or our Class A common
shares and Class X common shares, our board of directors
may determine not to seek shareholder approval.
Although our board of directors has no intention
at the present time of doing so, it could issue a series of our
preferred shares that could, depending on the terms of such
series, impede the completion of a merger, amalgamation, tender
offer or other takeover attempt. Our board of directors will
make any determination to issue such shares based on its
judgment as to the best interests of us. Our board of directors,
in so acting, could
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issue our preferred shares having terms that
could discourage an acquisition attempt through which an
acquiror may be able to change the composition of our board of
directors, including a tender offer or other transaction that
some, or a majority, of our shareholders might believe to be in
their best interests or in which shareholders might receive a
premium for their shares over the then current market price of
such shares.
Series A
Junior Preferred Shares
Upon completion of the concurrent offerings, our
Series A Junior Preferred Shares will be reserved for issue
upon exercise of rights under our rights agreement. For a more
detailed discussion of our rights agreement and our
Series A Junior Preferred Shares please see
"—Rights Agreement" below.
Anti-takeover Effects of Provisions of Our
Bye-Laws
Board
of Directors
Upon completion of the concurrent offerings, our
bye-laws will provide for the division of our board into three
classes, as nearly equal in number as possible, with one class
to be originally elected for a term expiring at the annual
general meeting of shareholders to be held in 2003, another
class to be originally elected for a term expiring at the annual
general meeting of shareholders to be held in 2004 and the final
class to be originally elected for a term expiring at the annual
general meeting of shareholders to be held in 2005. Each
director will hold office until his or her successor is duly
elected and qualified. Commencing with the 2003 annual general
meeting of shareholders, directors elected to succeed directors
whose terms then expire will be elected for a term of three
years.
Our bye-laws provide that any vacancy on our
board of directors created from an increase in the number of
directors or resulting from death, resignation,
disqualification, removal or other cause will be filled only by
the affirmative vote of a majority of the remaining directors,
so long as they constitute a quorum, and not by the
shareholders. Any directors elected will hold office for the
remainder of the full term of the class of directors in which
the vacancy occurred and until the director's successor is
duly elected and qualified. No decrease in the number of
directors constituting our board of directors will shorten the
term of any incumbent director. Our bye-laws provide that
directors may be removed only for cause by the affirmative vote
of the holders of at least a majority of the voting power of all
voting shares then outstanding, voting together as a single
class.
These provisions would preclude a third party
from removing incumbent directors and simultaneously gaining
control of our board of directors by filling the vacancies
created by removal with its own nominees. Under the classified
board provisions described above, it would take at least two
elections of directors for any individual or group to gain
control of our board of directors. Accordingly, these provisions
could discourage a third party from initiating a proxy contest,
making a tender offer or otherwise attempting to gain control of
us.
Advance
Notice Procedures for Nominating Directors by
Shareholders
Our bye-laws establish an advance notice
procedure for shareholders to make a nomination of candidates
for election as directors. Our shareholder notice procedure
provides that only persons who are nominated by, or at the
direction of, our board of directors, or in the case of an
annual general meeting by a shareholder who has given timely
written notice to our secretary prior to the meeting, at which
directors are to be elected, will be eligible for election as
our directors. Under our shareholder notice procedure, for
notice of shareholder nominations to be made at an annual
general meeting to be timely, such notice must be received by
our secretary not earlier than 120 days and not later than
90 days before the first anniversary of the preceding
year's annual general meeting, except that, if the date of
the annual general meeting is more than 30 days before or
more than 70 days after such anniversary date, then for a
notice by the shareholder to be timely it must be so delivered
not earlier than 120 days prior to the annual general
meeting and not later than the later of the 90 days prior
to the annual general meeting and 10 days after the date
the annual general meeting is announced by us.
In addition, under our shareholder notice
procedure, a shareholder's notice to us nominating a person
for election as a director must contain the information required
by our bye-laws. If the chairman of a meeting
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determines that an individual was not nominated
in accordance with our shareholder notice procedure, the
individual will not be eligible for election as a director.
Amendment
Our bye-laws provide that the affirmative vote of
the holders of at least two-thirds of our voting shares then
outstanding, voting together as a single class, is required to
amend provisions of the bye-laws relating to the number,
election and term of our directors, the nomination of director
candidates, the filling of vacancies and the removal of
directors, the rights plan, the ability of our board of
directors to issue preferred shares and the shareholder vote
required for business combinations.
Rights Agreement
Our board of directors currently expects to adopt
a rights agreement
with           ,
as rights agent, on or prior to the closing of the concurrent
Class A common shares offering. The rights agreement will
be filed as an exhibit to the registration statement of which
this prospectus forms a part. For information on how to receive
a copy of the rights agreement, please see "Where You Can
Find More Information."
Anti-takeover
Effects
The rights under the rights agreement may have
anti-takeover effects. If the rights become exercisable, the
rights will cause substantial dilution to a person or group that
attempts to acquire or merge with us in most cases. Accordingly,
the existence of rights may deter a potential acquiror from
making a takeover proposal or tender offer. The rights should
not interfere with any merger or other business combination
approved by our board of directors since we may redeem the
rights as described below and since a transaction approved by
our board of directors would not cause the rights to become
exercisable.
Exercisability
of Rights
Under the rights agreement, a right would attach
to each Class A common share and Class X common share
outstanding and, when exercisable, entitles the registered
holder to purchase from us one one-thousandth of one share of
Series A Junior Preferred Shares, par value $0.0001 per
share, at an initial purchase price of $100, subject to
customary antidilution adjustments. For a description of the
terms of our Series A Junior Preferred Shares, see
"Series A Junior Preferred Shares" below. For the
purposes of the rights agreement, an acquiring person is
generally a person or group besides our company who is the
beneficial owner of:
•
15% or more of the Class A common shares
    then outstanding or
•
our common shares which have the right to cast
    15% or more of the votes that may be cast by all such shares
    outstanding for the election of directors of our company.
For purposes of this test, we will not attribute
to any person beneficial ownership of shares held by others
solely as a result of the shareholders agreement, voting
agreement or transfer rights agreement.
The rights will not become exercisable until the
earliest of:
•
the time we learn that a person or group has
    become an acquiring person and
•
the date, if any, as may be designated by our
    board of directors following the commencement of, or the
    announcement of an intention to commence, a tender offer or
    exchange offer that would result in a person or group becoming
    an acquiring person.
Additionally, at any time a person or a group has
become an acquiring person, the flip-in or flip-over features of
the rights or, at the discretion of our board of directors, the
exchange features of the rights, may be exercised by any holder,
except for such person or group.
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"Flip
In" Feature
In the event a person or group becomes an
acquiring person, each holder of a right, except for such person
or group, will have the right to acquire, upon exercise of the
right, instead of one one-thousandth of a Series A Junior
Preferred Share, our Series A Junior Preferred Shares
having a value equal to twice the exercise price of the right,
in which case our board of directors may elect to issue our
Class A common shares in lieu of our Series A Junior
Preferred Shares. For example, assuming that the initial
purchase price of $100 is in effect on the date that the flip-in
feature of the right is exercised and the board of directors
elects to issue Class A common shares, any holder of a right,
except for the acquiring person, can exercise his or her right
by paying us $100 in order to receive from us Class A
common shares having a value equal to $200.
Exchange
Feature
At any time after a person or group becomes an
acquiring person, but is the beneficial owner of less than 50%,
of our Class A common shares then outstanding, our board of
directors may, at its option, exchange all or some of the
rights, except for those held by such person or group, for
consideration per right consisting of one-half of the securities
that would be issuable upon exercise of the right, subject to
adjustment, and cash instead of fractional shares, if any. Use
of this exchange feature means that eligible rights holders
would not have to pay a purchase price before receiving our
Class A common shares.
"Flip
Over" Feature
In the event we are acquired in a merger,
amalgamation or other business combination transaction or 50% or
more of our assets or our earning power and our subsidiaries,
taken as a whole, are sold, each holder of a right, except for
the acquiring person, will have the right to receive, upon
exercise of the right, the number of shares of the acquiring
company's capital common shares having a value equal to
twice the exercise price of the right.
Redemption
of Rights
At any time before a person becomes an acquiring
person, our board of directors may redeem all of the outstanding
rights at a nominal redemption price, subject to adjustment. The
right to exercise the rights, as described under
"—Exercisability of Rights," will terminate upon
action of the board of directors ordering redemption, and at
such time, the holders of the rights will have the right to
receive only the redemption price for each right held.
Amendment
of Rights
At any time before a person or group becomes an
acquiring person, the terms of the existing rights agreement may
be amended by our board of directors without the consent of the
holders of the rights.
At any time after a person or group becomes an
acquiring person, however, our board of directors may not adopt
amendments to the existing rights agreement without the consent
of the holders of the rights that would be adversely affected by
the amendment. Furthermore, once the rights are no longer
redeemable, our board of directors may not adopt any amendment
that would cause the rights again to be redeemable.
Termination
of Rights
If not previously exercised, the rights will
expire 10 years from the date that the rights agreement
commences, unless we earlier redeem or exchange the rights or
extend the final expiration date.
Enforceability
of Rights Agreement
Although a number of companies incorporated in
Bermuda have adopted rights agreements having the same effect as
our rights agreement, the enforceability of the provisions of
such rights agreements have not been definitively tested in the
Bermuda courts. Therefore, there is no assurance that a holder
of Class A
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common shares or Class X common shares or
the Company could enforce the exercisability of those rights as
described above under "—Rights Agreement."
Series A
Junior Preferred Shares
In connection with the creation of the rights, as
described above, our board of directors will authorize the
issuance of Series A Junior Preferred Shares.
We have designed the dividend, liquidation,
voting and redemption features of our Series A Junior
Preferred Shares so that the value of one one-thousandth of a
share of our Series A Junior Preferred Shares approximates
the value of one share of our Class A common shares.
Series A Junior Preferred Shares may only be purchased
after the rights have become exercisable, and each Series A
Junior Preferred Share:
•
is nonredeemable and junior to all other series
    of preferred shares, unless otherwise provided in the terms of
    those series of preferred shares,
•
will have a preferential dividend in an amount
    equal to the greater of $1.00 or 1,000 times any dividend
    declared on each Class A common share,
•
in the event of liquidation, will entitle its
    holder to receive a preferred liquidation payment equal to 1,000
    times the payment made per Class A common share,
•
will have 1,000 votes, voting together with our
    Class A common shares and our Class X common shares
    and any other share capital with general voting rights, and
•
in the event of any merger, consolidation or
    other transaction in which Class A common shares are
    converted or exchanged, will be entitled to receive 1,000 times
    the amount and type of consideration received per Class A
    common share.
The rights of our Series A Junior Preferred
Shares as to dividends, liquidation and voting, and in the event
of mergers and consolidations, are protected by customary
antidilution provisions.
Bermuda Law
We are an exempted company organized under the
Companies Act 1981 of Bermuda. The rights of our shareholders
including those persons who will become shareholders in
connection with this offering, are governed by Bermuda law and
our memorandum of association and bye-laws. The Companies Act
1981 of Bermuda may differ in some material respects from laws
generally applicable to United States corporations and their
shareholders. The following is a summary of the material
provisions of Bermuda law and our organizational documents.
Foreign
Exchange Controls
We have been designated by the Bermuda Monetary
Authority as a non-resident for Bermuda exchange control
purposes. This designation allows us to engage in transactions
in currencies other than the Bermuda dollar, and there are no
restrictions on our ability to transfer funds, other than funds
denominated in Bermuda dollars, in and out of Bermuda or to pay
dividends to non-Bermuda residents who are holders of our
Class A common shares.
Transfer
of Common Shares to Residents of Bermuda
The terms of the consent from the Bermuda
Monetary Authority under the Bermuda Exchange Control Act 1972
relating to the issue and transferability of our Class A
common shares restrict the issue and transfer of our shares to
and between persons who are residents of Bermuda for purposes of
the Bermuda Exchange Control Act 1972 such that residents of
Bermuda may not own more than 20% in aggregate of our shares.
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Dividends
Under Bermuda law, a company may pay dividends
that are declared from time to time by its board of directors
unless there are reasonable grounds for believing that the
company is or would, after payment, be unable to pay its
liabilities as they become due or that the realizable value of
its assets would as a result be less than the aggregate of its
liabilities and issued share capital and share premium accounts.
Voting
Rights
Under Bermuda law, except as otherwise provided
in the Companies Act 1981 of Bermuda or our bye-laws, questions
brought before a general meeting of shareholders are decided by
a majority vote of shareholders present in person or by proxy at
the meeting. Our bye-laws provide that, subject to the
provisions of the Companies Act 1981 of Bermuda, any question
proposed for the consideration of the shareholders will be
decided by a simple majority of the votes cast, except in the
case of removal of directors for cause, where a majority of the
votes outstanding is required and amendments to some provisions
of our bye-laws, where a two-thirds majority of the votes
outstanding may be required. A description of the voting rights
attaching to our Class A common shares and Class X
common shares is set out above under "—Common
Shares—Voting."
Written
Resolution of Shareholders Only by Unanimous Written
Consent
Under Bermuda law any action required or
permitted to be taken by our shareholders may only be taken by
written resolution with the consent in writing of all our
shareholders.
Rights
in Liquidation
Under Bermuda law, in the event of a liquidation
or winding up of a company, after satisfaction in full of all
claims and creditors and subject to the preferential rights
accorded to any series of preferred shares and subject to any
specific provisions of the company's bye-laws, the proceeds
of the liquidation or winding up are distributed pro rata among
the holders of common shares. Our Class X common shares,
however, will not be entitled to distribution rights.
Meetings
of Shareholders
Under Bermuda law, a company is required to
convene at least one shareholders' meeting each calendar
year. Bermuda law provides that a special general meeting may be
called by the board of directors and must be called upon the
request of shareholders holding not less than 10% of the paid-up
share capital of the company carrying the right to vote. Bermuda
law also requires that shareholders be given at least five
days' advance notice of a general meeting, but the
accidental omission to give notice to any person does not
invalidate the proceedings at a meeting. Under our bye-laws, we
must give each shareholder at least 60 days' notice of
the annual general meeting and at least 60 days'
notice of any special general meeting. In addition, our bye-laws
provide that prior to any vote by the shareholders, the board
must provide sufficient notice and information to our partners
committee in order to ensure that the partners can conduct their
preliminary vote as provided for in the voting agreement. A
description of the voting agreement is set out under
"Arrangements With Our Partners— Monday Ltd Voting
Agreement."
Under Bermuda law, the number of shareholders
constituting a quorum at any general meeting of shareholders is
determined by the bye-laws of a company. Our bye-laws provide
that the presence in person or by proxy of two or more
shareholders entitled to attend and vote and holding shares
representing more than 50% of the voting power constitutes a
quorum.
Shareholder
Proposals
Under Bermuda law, a shareholder or shareholders
who hold not less than 5% of the total outstanding voting rights
or number not less than 100 shareholders may requisition the
Company to send to shareholders entitled to receive notice of
the next annual general meeting, at the cost of the
requisitionists, notice of any
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resolution which may properly be moved together
with a statement of not more than one thousand words with
respect to the matter referred to in any proposed resolution or
business to be dealt with at that meeting. The company is only
bound to circulate such a requisition if it is received at the
registered office of the company, in the case of a requisition
requiring notice of a resolution, not less than six weeks before
the meeting and in the case of any other requisition, not less
than one week before the meeting.
Access
to Books and Records and Dissemination of
Information
Members of the general public have the right to
inspect the public documents of a company available at the
office of the Registrar of Companies in Bermuda. These documents
include a company's memorandum of association, including
its objects and powers, and most alterations to its memorandum
of association. The shareholders have the additional right to
inspect the bye-laws of the company, minutes of general meetings
and the company's audited financial statements, which must
be presented at the annual general meeting. The register of
shareholders of a company is also open to inspection by
shareholders without charge and by members of the general public
on the payment of a fee. A company is required to maintain its
share register in Bermuda but may, subject to the provisions of
Bermuda law, establish a branch register outside Bermuda. We
maintain our principal share register in Hamilton, Bermuda. A
company is required to keep at its registered office a register
of its directors and officers that is open for inspection for
not less than two hours each day by members of the public
without charge. Bermuda law does not, however, provide a general
right for shareholders to inspect or obtain copies of any other
corporate records.
Board
of Director Actions
Under Bermuda law, the directors of a Bermuda
company owe their fiduciary duty principally to the company
rather than the shareholders. Our bye-laws provide that some
actions are required to be approved by our board of directors.
Actions must be approved by a majority of the votes present and
entitled to be cast at a properly convened meeting of our board
of directors.
Under our bye-laws and as permitted by Bermuda
law, each shareholder has waived any claim or right of action
against our directors and officers on account of any action
taken by them in the performance of their duties, except for
actions involving fraud and dishonesty. In addition, we have
agreed to indemnify our directors and officers for all liability
and expenses they may incur in the performance of their duties,
except to the extent that such liability is imposed for actions
involving fraud or dishonesty.
Amendment
of Memorandum of Association and Bye-Laws
Bermuda law provides that the memorandum of
association of a company may be amended by a resolution passed
at a general meeting of shareholders of which due notice has
been given. An amendment to the memorandum of association, other
than an amendment that alters or reduces a company's share
capital or a change of name, also requires the approval of the
Bermuda Minister of Finance, who may grant or withhold approval
at his or her discretion. Our bye-laws may be amended by our
board of directors if the amendment is approved by shareholders
by a resolution passed by the holders of a majority of the votes
cast, except in limited instances, where the approval of a
resolution requires the approval of holders of not less than
two-thirds of the voting power.
Under Bermuda law, the holders of an aggregate of
not less than 20% in par value of a company's issued share
capital of any class of issued share capital have the right to
apply to the Bermuda Court for an annulment of any amendment of
the memorandum of association adopted by shareholders at any
general meeting, other than an amendment that alters or reduces
a company's share capital or a change of name as provided
in the Companies Act 1981 of Bermuda. Where an application is
made, the amendment becomes effective only to the extent that it
is confirmed by the Bermuda Court. An application for the
annulment of an amendment of the memorandum of association must
be made within 21 days after the date on which the
resolution altering the company's memorandum of association
is passed and may be made on behalf of the persons entitled to
make the application by one or more of their number as they may
appoint in writing for the purpose. No application may be made
by persons voting in favor of the amendment.
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Appraisal
Rights and Shareholder Suits
Under Bermuda law, in the event of an
amalgamation of a Bermuda company with another company, a
shareholder of the Bermuda company who is not satisfied that
fair value has been offered for his or her shares in the Bermuda
company may apply to the Bermuda Court to appraise the fair
value of his or her shares. Under Bermuda law and our bye-laws,
an amalgamation by us with another company would require the
amalgamation agreement be approved by our board of directors and
by resolution of our shareholders.
Class actions and derivative actions are
generally not available to shareholders under Bermuda law. The
Bermuda Court, however, would ordinarily be expected to permit a
shareholder to commence an action in the name of a company to
remedy a wrong done to the company where the act complained of
is alleged to be beyond the corporate power of the company or is
illegal or would result in violation of the company's
memorandum of association or bye-laws. Furthermore,
consideration would be given by the Bermuda Court to acts that
are alleged to constitute a fraud against the minority
shareholders or, for instance, where an act requires the
approval of a greater percentage of the company's
shareholders than that which actually approved it.
When the affairs of a company are being conducted
in a manner oppressive or prejudicial to the interests of some
part of the shareholders, one or more shareholders may apply to
the Bermuda Court, which may make an order as it sees fit,
including an order regulating the conduct of the company's
affairs in the future or ordering the purchase of the shares of
any shareholder, by other shareholders or by the company.
Transfer Agent and Registrar
Mellon Investor Services LLC will serve as
transfer agent and branch registrar for our Class A common
shares in the United States.  will serve as transfer agent
and principal registrar for our Class A common shares in
Bermuda.
New York Stock Exchange Listing
We have applied to have our Class A common
shares listed on the New York Stock Exchange under the symbol
"MN."
Description of Monday SCA Common
Shares
The following information reflects the articles
of incorporation of Monday SCA as this document will be in
effect upon closing of the concurrent offerings.
General
The authorized share capital of Monday SCA is
divided into:
•
Class I
    common shares, par value
    $                    per
    share,
•
1 Class II Series I common share, par
    value
    $                    per
    share, and
•
228 Class II Series II through
    Series XX common shares, par value
    $                    per
    share, with twelve authorized shares for each of the 19 series.
Class I common shares represent limited
partnership interests in Monday SCA. Class II
Series II through Series XX common shares also represent
limited partnership interests in Monday SCA but have the right
to be redeemed as described below. Upon closing of the
concurrent offerings, we will own all issued and outstanding
Class II Series II through Series XX common
shares. The Class II Series I common share represents
a general partnership interest and must be owned by the manager
of Monday SCA. Upon closing of this offering, we will own the
only Class II Series I common share. Additionally, for
all purposes under Luxembourg law and the Monday SCA articles of
incorporation, any Class I common shares owned by us will
be treated as Class II Series I common shares, except
for purposes of share transfers and redemptions.
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Voting
Every holder of Class I common shares and
Class II common shares is entitled to one vote per share at
a meeting of shareholders. Under the articles of incorporation
of Monday SCA, shareholders may only vote on matters that
Luxembourg law requires be submitted to shareholders.
Additionally, we, as manager of Monday SCA, must consent to any
matter put to a shareholder vote.
Dividends and
Class II Common Share Redemptions
Holders of Class I common shares and
Class II common shares, with our consent, will determine
the aggregate amount of dividends that will be paid to
shareholders in respect of a financial year. Under Luxembourg
law, 5% of the annual net profits of Monday SCA must be
allocated to a reserve, until the reserve equals 10% of the
subscribed capital. Once the shareholders have determined the
total amount of dividends that will be paid, each Class I
common share entitles its holder to an equal part of 95% of the
dividend amount and each Class II common share entitles its
holder to an equal part of 5% of the dividend amount. In
addition, each Class II Series II through
Series XX common share can be redeemed for cash. A general
meeting of the shareholders, with the consent of the manager,
will determine the maximum redemption amount for which a single
series of Class II Series II through Series XX
common shares can be redeemed in respect of a financial year.
The redemption amount for Class II Series II through
Series XX common shares depends upon the aggregate dividend
amount. Accordingly, the holders of Class II Series II
through Series XX common shares will be entitled to
redemption payments only if dividends are paid to holders of
Class I common shares.
Redemption of
Class I Shares
Subject to contractual restrictions, holders of
Class I common shares, at any time beginning six months
after the closing of the concurrent Class A common shares
offering, may require Monday SCA to redeem their Class I
common shares upon 30 days notice. Monday SCA may redeem
Class I common shares for cash or, at its option, for our
Class A common shares. At any time following a request for
redemption, we may intervene and directly exchange our
Class A common shares for Class I common shares. Both
a redemption of Class I common shares for Class A
common shares or a direct exchange of these shares will be made
on a one-for-one basis, subject to adjustment to take into
account general dilutive measures, such as share splits of
Class A common shares.
Liquidation
Rights
Each Class I common share and Class II
common share entitles its holder, on liquidation of Monday SCA,
to an equal part of the value of the assets remaining after
payment of all debts and charges against Monday SCA.
Preemptive
Rights
Under Luxembourg law, holders of Class I
common shares and Class II common shares are entitled to
preemptive rights. Under the articles of incorporation for
Monday SCA, however, we, as manager, have the right to remove
the preemptive rights on shares issued under the authorized
share capital for a period of five years. This authorization may
be renewed by a general meeting of shareholders.
Transfer
Class I common shares are, subject to the
restrictions and requirements described in this prospectus,
transferable by their holders. Class II Series II
through Series XX common shares are freely transferable.
The Class II Series I common share is only
transferable if the transfer is approved by the supervisory
board of Monday SCA and two-thirds of the common shares voted at
a general meeting of shareholders.
Change of
Control Call
In the event that we undergo a change of control,
we will have the right to acquire all Class I common shares
for a price equal to the fair market value of the Class I
common shares, either by paying cash or by delivery of our
Class A common shares.
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SHARES ELIGIBLE FOR FUTURE SALE
Prior to the closing of the concurrent
Class A common shares offering, there will have been no
public market for our Class A common shares. Although we
expect to have our Class A common shares approved for
listing on the New York Stock Exchange, we cannot assure you
that there will be an active public market for our Class A
common shares. Sales of substantial amounts of our Class A
common shares, or the perception of these sales, may adversely
affect the price of our Class A common shares and impede
our ability to raise capital through the issuance of equity
securities in the future. Upon the completion of the concurrent
Class A common shares offering, assuming no exercise of the
underwriters' over-allotment option, we will have
approximately   million Class A common shares
outstanding, not including approximately   million
restricted Class A common shares and Class A common
shares underlying restricted share units. Holders of Monday SCA
Class I common shares will have the right to require Monday
SCA to redeem their shares, which redemption may be effected by
delivery of Class A common shares. In addition,
exchangeable shares issued by one of Monday SCA's
subsidiaries may be exchanged for our Class A common shares
on a one-for-one basis at the request of the holders of these
exchangeable shares. Of the outstanding number of Class A
common shares, approximately   million Class A
common shares to be sold in the concurrent Class A common
shares offering will be freely tradable without restriction or
further registration under the Securities Act of 1933. In
addition, please note the following items.
•
Approximately   million Class A
    common shares held by or on behalf of our partners will, unless
    these restrictions are waived, be subject to the transfer
    restrictions described under "Arrangements with Our
    Partners—Monday Ltd Voting Agreement" and, unless
    these restrictions are waived, will be subject to the
    underwriters' lock-up described under
    "Underwriters" and will be eligible for resale
    pursuant to Rule 144 under the Securities Act after one
    year as described below.
•
Approximately zero Class A common shares
    held by the PricewaterhouseCoopers network of firms and their
    partners and shareholders will be subject to the transfer
    restrictions described under "Arrangements with the
    PricewaterhouseCoopers Network of Firms—Shareholders
    Agreement" and, unless these restrictions are waived, will
    be subject to the underwriters' lock-up described under
    "Underwriters" and will be eligible for resale
    pursuant to Rule 144 under the Securities Act after one
    year as described below. Subject to these restrictions, the
    PricewaterhouseCoopers network of firms will dispose of its
    Class A common shares, including any shares exchangeable
    for our Class A common shares, within five years of the
    closing date of the concurrent Class A common shares
    offering to comply with conditions contained in the proposed SEC
    No-Action Letter described under "Auditor Independence
    Rules, the Enron Situation and the Proposed Securities and
    Exchange Commission No-Action Letter—The Proposed SEC
    No-Action Letter."
•
Approximately   million Class A
    common shares issuable in lieu of cash redemptions for Monday
    SCA Class I common shares and in exchange for exchangeable
    shares issued by one of Monday SCA's subsidiaries held by
    or on behalf of our partners and some of the
    PricewaterhouseCoopers network of firms and their partners and
    shareholders will, unless these restrictions are waived, be
    subject to the transfer restrictions described under
    "Arrangements with the PricewaterhouseCoopers Network of
    Firms—Shareholders Agreement" and "Arrangements
    with Our Partners—Monday Ltd Voting Agreement" and,
    unless these restrictions are waived, will be subject to the
    underwriters' lock-up described under
    "Underwriters" and will be eligible for resale
    pursuant to Rule 144 under the Securities Act one year
    after redemption or exchange as described below. We have agreed
    to file a registration statement that will permit partners to
    resell Class A common shares delivered to them as set forth
    in this paragraph without the one year holding period
    requirement.
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•
Approximately   million Class A
    common shares underlying restricted share units generally will
    be deliverable as follows:
Shares underlying
restricted share
Years after the closing of
units delivered
the concurrent Class A
to partners
common shares offering
20%
1 year
20%
2 years
20%
3 years
15%
4 years
25%
The later of 5 years
and termination of
employment or service with us.
•
Of the approximately   million
    Class A common shares subject to options described under
    "Management—2003 Share Incentive Plan,"
    approximately   million shares will become exercisable
    in four equal annual installments beginning one year after the
    date of grant and approximately   million shares will
    become exercisable in three equal annual installments beginning
    one year after the date of grant.
•
All of the approximately   million
    Class A common shares subject to options described under
    "Management— 2003 Non-Management Share Plan" will
    become exercisable in three equal installments from the date of
    grant.
•
All of the approximately   million
    Class A common shares subject to options described under
    "Management— 2003 Non-Employee Directors'
    Incentive Plan" will become exercisable in four equal
    annual installments beginning one year after the date of grant.
•
An additional   million Class A
    common shares, or awards relating to Class A common shares,
    other than those described above, will be issued or available
    for issuance on and after the closing of our separation under
    the benefit plans described in the prospectus, including grants
    of restricted Class A common shares.
•
Assuming an offering price in the concurrent
    Class A common shares offering of $ , up
    to   million of our Class A common shares, or up
    to   million Class A common shares if the
    underwriters for this offering fully exercise their
    over-allotment option to acquire additional PEPS Units, will be
    reserved for issuance in connection with the PEPS Units that are
    being offered in this offering. These Class A common shares
    may be issued at any time and from time to time on or prior
    to                          ,
    2006, and generally will be freely tradeable upon issuance
    without restriction or further registration under the Securities
    Act of 1933.
We, the selling shareholders in the concurrent
Class A common shares offering, our shareholders,
employees, partners, officers and directors who received
Class A common shares in the separation have agreed,
without the prior written consent of Morgan Stanley & Co.
Incorporated on behalf of the underwriters, not to, during the
period ending 180 days, or in some cases up to two years,
after the date of this prospectus, dispose of any Class A
common shares or securities convertible into or exchangeable for
Class A common shares, except under limited circumstances
described under "Underwriters."
To the extent not otherwise freely tradable or
able to be sold under an exemption contained in Rule 144,
we currently expect that we will file a registration statement
with the SEC in order to register the reoffer and resale of our
Class A common shares issued pursuant to the restricted
share units and options to purchase our Class A common
shares described under "Management— 2003 Share
Incentive Plan" and "Management— 2003
Non-Management Share Plan." The firms in
PricewaterhouseCoopers network, some of their partners and
shareholders and the PricewaterhouseCoopers retirement trusts
will have the right to demand that we file a registration
statement with the SEC in order to register the reoffer and
resale of our Class A
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common shares and other registerable securities
described under "Arrangements with the
PricewaterhouseCoopers Network of Firms— Shareholders
Agreement— Registration Rights." As a result, any
Class A common shares delivered or purchased pursuant to
these plans or covered under the registration rights provisions
will, subject to applicable contractual restrictions, be freely
transferable to the public unless our Class A common shares
are acquired by an "affiliate" of ours. Any
Class A common shares acquired by an "affiliate"
of ours will be transferable to the public in accordance with
Rule 144.
In general, under Rule 144 as currently in
effect, a person or persons whose shares are aggregated
together, including an affiliate, who has beneficially owned
restricted shares for at least one year is entitled to sell,
within any three-month period, a number of these shares that
does not exceed the greater of:
•
one percent of the then outstanding Class A
    common shares or
•
the average weekly trading volume in Class A
    common shares on the New York Stock Exchange during the four
    calendar weeks preceding the date on which notice of this sale
    is filed, so long as requirements concerning availability of
    public information, manner of sale and notice of sale are
    satisfied.
In addition, affiliates must comply with the
restrictions and requirements of Rule 144, other than the
one-year holding period requirement, in order to sell
Class A common shares that are not restricted securities
within the meaning of that rule. Under Rule 144(k), a
person who is not an affiliate and has not been an affiliate for
at least three months prior to the sale and who has beneficially
owned restricted shares for at least two years may resell these
shares without compliance with the foregoing requirements.
The registration rights that will be granted to
some firms in the PricewaterhouseCoopers network and some of the
PricewaterhouseCoopers partners and shareholders could, if
exercised, permit these shareholders to sell significant amounts
of Class A common shares. See "Risk Factors—
Risks That Relate to Ownership of Our Class A Common Shares
Deliverable Upon Settlement of the Purchase Contracts— The
price of our Class A common shares may decline due to the
large number of outstanding shares eligible for future sale to
the public, including any Class A common shares held by the
PricewaterhouseCoopers firms that must be divested within five
years of the concurrent Class A common shares
offering" for a description of risks relating to the
registration rights.
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MATERIAL INCOME TAX CONSEQUENCES
Luxembourg Tax Considerations
Under current Luxembourg law, no income,
withholding or other taxes or stamp or other duties are imposed
in Luxembourg upon the issue, transfer or sale of the senior
notes or on any payments under the senior notes, except, in some
circumstances, to holders that for Luxembourg tax purposes are
resident in or have a permanent establishment in Luxembourg.
Bermuda Tax Considerations
Under current Bermuda law, no income, withholding
or other taxes or stamp or other duties are imposed in Bermuda
upon the issue, transfer or sale of the purchase contracts or
Class A common shares issued under the purchase contracts
or on any payments under the purchase contracts or Class A
common shares, except, in some circumstances, to persons
ordinarily resident in Bermuda.
United States Federal Income Tax
Considerations for U.S. Holders
The following is a summary of the material United
States federal income tax consequences to U.S. holders (defined
below) of the purchase, ownership and disposition of PEPS Units,
Treasury PEPS Units, senior notes and our Class A common
shares acquired under the purchase contracts. Unless otherwise
stated, this summary applies to you only if you are an initial
holder who acquires PEPS Units at the issue price and who holds
PEPS Units, Treasury PEPS Units, senior notes and our
Class A common shares as capital assets. As used herein,
the term "U.S. holder" means an owner of PEPS Units or
Treasury PEPS Units that, for U.S. federal income tax purposes,
is:
•
an individual who is a citizen or resident of the
    United States,
•
a corporation created or organized in or under
    the laws of the United States or any political subdivision
    thereof or
•
an estate or trust the income of which is subject
    to U.S. federal income taxation, regardless of its source.
If a partnership holds PEPS Units, Treasury PEPS
Units, senior notes or our Class A common shares, the tax
treatment of a partner will generally depend upon the status of
the partner and upon the activities of the partnership. Partners
of partnerships holding any of the above instruments should
consult their tax advisors about the U.S. federal income tax
consequences of the purchase, ownership and disposition of PEPS
Units, Treasury PEPS Units, senior notes and our Class A
common shares acquired under the purchase contracts.
The tax treatment of holders varies depending on
their particular situations. This summary does not deal with
special classes of holders. For example, this summary does not
address:
•
tax consequences to U.S. holders who may be
    subject to special tax treatment, such as banks, thrifts, real
    estate investment trusts, regulated investment companies,
    insurance companies, dealers in securities or currencies and
    tax-exempt investors,
•
tax consequences to U.S. holders holding PEPS
    Units, Treasury PEPS Units, senior notes or our Class A
    common shares as part of a straddle, hedging, constructive sale,
    conversion or other integrated transaction for U.S. federal
    income tax purposes, or
•
alternative minimum tax consequences, if any.
This summary also does not discuss any state,
local or (except to the extent described under "Luxembourg
Tax Considerations" and "Bermuda Tax
Considerations") foreign tax consequences to U.S. holders.
This summary is based upon the Internal Revenue
Code of 1986, Treasury regulations (including proposed Treasury
regulations) issued under the Code, IRS rulings and
pronouncements and judicial decisions
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now in effect, all of which are subject to
change. Any such change may be applied retroactively in a manner
that could cause the tax consequences to vary materially from
the consequences described below, possibly adversely affecting
you. No statutory, administrative or judicial authority directly
addresses the treatment of PEPS Units, Treasury PEPS Units or
instruments similar to PEPS Units or Treasury PEPS Units for
U.S. federal income tax purposes. As a result, we cannot assure
you that the IRS will agree with the tax consequences described
below. We urge U.S. holders to consult their own tax advisors
with respect to the tax consequences to them of the purchase,
ownership and disposition of the PEPS Units and Treasury PEPS
Units, including the tax consequences under state, local,
foreign and other tax laws and the possible effects of changes
in U.S. federal or other tax laws.
PEPS Units
Allocation of
the purchase price
Your acquisition of a PEPS Unit will be treated
as an acquisition of the senior note and the purchase contract
constituting the PEPS Unit. The purchase price will be allocated
between the senior note and the purchase contract in proportion
to their respective fair market values at the time of purchase.
This allocation will establish your initial tax basis in the
senior note and the purchase contract. We have determined
that      % of the issue price of a
PEPS Unit is allocable to the senior note,
and      % is allocable to the purchase
contract. This position will be binding on you (but not on the
IRS) unless you explicitly disclose a contrary position in a
statement attached to your timely filed U.S. federal income tax
return for the taxable year in which you acquire PEPS Units.
Thus, absent such disclosure, you should allocate the purchase
price for PEPS Units in accordance with the foregoing. The
remainder of this discussion assumes that this allocation of the
purchase price will be respected for U.S. federal income tax
purposes.
Senior
notes
Ownership of senior
notes.
We and you, by acquiring PEPS
Units, agree to treat you as the owner, for U.S. federal, state
and local income and franchise tax purposes, of the senior notes
that are a part of the PEPS Units that you own. The remainder of
this summary assumes that you will be treated as owning the
senior notes that are a part of such PEPS Units for U.S.
federal, state and local income and franchise tax purposes.
Interest income.
The
treatment of the senior notes is not clear, as described below.
We intend to take the position and the following discussion
assumes that you will be required to include stated interest
payments on the senior notes in your income at the time the
interest is paid or accrued, in accordance with your regular
method of tax accounting.
Under the allocation described above of the issue
price of a PEPS Unit between the related senior note and
purchase contract, the principal amount of the senior note will
be greater than the portion of the purchase price allocated to
the senior note, and the senior note will thus be considered for
U.S. federal income tax purposes to have been issued with
original issue discount, in an amount equal to such excess. You
will be required to include this original issue discount in
income for U.S. federal income tax purposes as it accrues over
the period from the original issue date through the reset
effective date, in accordance with a constant-yield method based
on a compounding of interest, before you receive any payment
attributable to this income. Under this method, you generally
will be required to include in income increasingly greater
amounts of original issue discount in successive accrual periods.
Interest on the senior notes, including original
issue discount, will generally be treated for U.S. foreign tax
credit purposes as foreign-source passive income or, in the case
of some holders, foreign-source financial services income.
Sale, exchange or other disposition of senior
notes.
Upon the sale, exchange or
other disposition of senior notes (including as a result of the
remarketing thereof), you will recognize capital gain or loss in
an amount equal to the difference between your amount realized
(which does not include amounts equal to any accrued but unpaid
interest that you have not previously included in gross income,
which will be taxable as interest) and your tax basis in the
senior notes. Your tax basis in the senior notes you hold will
equal the cost
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of the senior notes, increased by the amounts of
original issue discount previously included in income. Such gain
or loss will generally be treated as U.S.-source for U.S.
foreign tax credit purposes. Gains of individuals from capital
assets held for more than one year are taxed up to a maximum
rate of 20%. Your ability to deduct capital losses is subject to
limitations. Your holding period in the senior notes will
commence on the day after the day you acquire the senior notes.
Possible alternative
characterization.
The treatment of
instruments involving a reset mechanism like that in the senior
notes is unclear. For example, it is possible that the IRS could
treat the senior notes as "contingent payment debt
instruments." Under that treatment, (1) regardless of
your regular method of tax accounting, you would be required to
use an accrual method with respect to the senior notes,
(2) interest income that accrues may exceed interest
payments actually received, (3) any gain and all or a
portion of any loss on the sale, exchange or other disposition
of the senior notes generally would be ordinary rather than
capital in nature, and (4) any gain and all or a portion of
any loss on the sale, exchange or other disposition of the
senior notes generally would be treated differently for U.S.
foreign tax credit purposes than if the intended treatment of
the senior notes were respected. You should consult your tax
advisor regarding the treatment of the senior notes, including
the possible application of the contingent debt rules.
Purchase
contracts
Acquisition of Class A common shares
under a purchase contract.
You
generally will not recognize gain or loss on the purchase of our
Class A common shares under a purchase contract, except
with respect to any cash paid instead of a fractional share of
our Class A common shares. Your aggregate initial tax basis
in the shares of our Class A common shares acquired under a
purchase contract generally should equal (1) the purchase
price paid for those shares, including the portion of the issue
price of the related PEPS Unit that is allocated to such
purchase contract, less (2) the portion of such purchase
price allocable to any fractional share. The holding period for
Class A common shares acquired under a purchase contract
will commence on the day after the day you acquire the shares.
Early settlement of purchase
contract.
You will not recognize gain
or loss on the receipt of a senior note, Treasury securities or
your share of the Treasury portfolio upon early settlement of a
purchase contract, and your tax basis in, and holding period
for, the senior note, Treasury securities or the Treasury
portfolio will not be affected by the early settlement.
Termination of purchase
contract.
If a purchase contract
terminates, you will recognize gain or loss equal to the
difference between the amount realized (if any) upon the
termination and your adjusted tax basis in the purchase contract
at the time of the termination. In general, such gain or loss
will be U.S.-source for U.S. foreign tax credit purposes. The
gain or loss generally will be capital gain or loss and will be
long-term capital gain or loss if you held the purchase contract
for more than one year immediately before such termination.
Long-term capital gains of individuals are eligible for reduced
rates of taxation. The deductibility of capital losses is
subject to limitations. You will not recognize gain or loss on
the receipt of a senior note, Treasury securities or Treasury
portfolio upon termination of the purchase contract, and you
will have the same adjusted tax basis in the senior note,
Treasury securities or Treasury portfolio as before such
termination.
Ownership
of Class A common shares acquired under a purchase
contract
Distributions.
The
gross amount of distributions you receive on your Class A
common shares, if any, will generally be treated as dividend
income to you if the distributions are made from our current and
accumulated earnings and profits, calculated according to U.S.
federal income tax principles. Such income will be includible in
your gross income as ordinary income on the day you actually or
constructively receive it. Because we are not a U.S.
corporation, you will not be entitled to claim a dividends
received deduction, generally allowed to U.S. corporations in
respect of dividends received from other U.S. corporations, with
respect to distributions you receive from us. To the extent that
the amount of any distribution exceeds our current and
accumulated earnings and profits for a taxable year, the
distribution will first be treated as a tax-free return of
capital, causing a reduction in your adjusted basis in the
Class A common shares, and the balance of the distribution
in excess of your adjusted basis will be taxed as capital gain
recognized on a
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subsequent disposition of the shares. The
reduction in basis caused by the tax-free return of capital will
increase the amount of gain, or decrease the amount of loss, you
will recognize on any subsequent disposition of your
Class A common shares. If, for U.S. federal income tax
purposes, we are classified as a United States-owned foreign
corporation, distributions made to you with respect to your
Class A common shares that are taxable as dividends
generally will be treated for U.S. foreign tax credit purposes
as:
•
foreign source passive income or, in the case of
    some holders, foreign source financial services income, and
•
U.S. source income,
in proportion to our earnings and profits in the
year of such distribution allocable to foreign and U.S. sources,
respectively. For this purpose, we will be treated as a United
States-owned foreign corporation so long as stock representing
50% or more of the voting power or value of our shares is owned,
directly or indirectly, by U.S. persons.
Foreign personal holding company.
A foreign corporation will be
classified as a foreign personal holding company
("FPHC") if:
•
at any time during the corporation's taxable
    year, five or fewer individuals who are United States citizens
    or residents own, directly or indirectly (or by virtue of
    certain ownership attribution rules), more than 50% of the
    corporation's stock by either voting power or value which
    we refer to as the shareholder test; and
•
the corporation receives at least 60% of its
    gross income, or 50% after the initial year of qualification, as
    adjusted, for the taxable year from certain passive sources,
    including any income from certain personal service contracts,
    which we refer to as the income test.
If we or one or more of our non-United States
subsidiaries were classified as a foreign personal holding
company, you and some indirect holders would be required,
regardless of your percentage ownership, to include in income as
a dividend, your pro rata share of our, or our relevant
non-United States subsidiary's, undistributed foreign
personal holding company income if you were a holder on the last
day of our taxable year or, if earlier, the last day on which we
satisfied the shareholder test. Such pro rata share would
depend, in part, on the proportion of the year for which we, or
one or more of our non-United States subsidiaries, were a
foreign personal holding company. If you own, directly or
indirectly, 5% or more by value of our Class A common
shares, you will be required to include in your return
information about the income, expenses and other specified items
of the applicable company.
Because of the application of complex ownership
attribution rules, we are likely to meet the shareholder test
during our first tax year, and possibly in later years.
Additionally, we may satisfy the income test and be treated as a
foreign personal holding company, although we intend to manage
our affairs so as to minimize the percentage of foreign personal
holding company income in our gross income for all applicable
tax years. However, even if we are classified as a foreign
personal holding company, subject to the discussion of our
non-United States subsidiaries below, we do not anticipate
having any material amounts of undistributed foreign personal
holding company income.
In addition, because of the application of
complex ownership attribution rules, our non-United States
subsidiaries are likely to meet the shareholder test in a given
year. It is also possible that one or more of our non-United
States subsidiaries will meet the income test in a given year
and be treated as a foreign personal holding company. If one or
more of our non-United States subsidiaries is a foreign personal
holding company, then any undistributed foreign personal holding
company income of those subsidiaries generally would be deemed
paid to us or you as a dividend, with the result that you
generally would be required to include currently your ratable
share of such deemed dividend as undistributed foreign personal
holding company income. Any such income inclusion would result
in a corresponding increase in your tax basis in our
Class A common shares. However, we intend to manage the
affairs of our non-United States subsidiaries so as to attempt
to avoid or minimize having income imputed to you under these
rules, to the extent this is consistent with our business goals,
although there can be no assurance in this regard.
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Depending on a variety of factors, it is possible
that we or any of our non-United States subsidiaries that are
foreign personal holding companies may cease to be classified as
foreign personal holding companies in the future, although there
can be no assurance in this regard.
Disposition of Class A common shares.
When you sell or otherwise dispose of
your Class A common shares you will recognize capital gain
or loss in an amount equal to the difference between the amount
you realize for the shares and your adjusted tax basis in them.
For foreign tax credit limitation purposes, this gain or loss
will generally be treated as U.S.-source. If you are an
individual and the Class A common shares being sold or
otherwise disposed of have been held by you for more than one
year, your gain recognized will be taxed at a maximum tax rate
of 20%. Your ability to deduct capital losses is subject to
limitations.
Adjustment to settlement
rate.
In the event we make
distributions to our shareholders that are treated for U.S.
federal income tax purposes as dividends, you might be treated
as receiving a constructive dividend from us, if (1) the
settlement rate is adjusted and, as a result of that adjustment,
your proportionate interest in our assets or earning and profits
is increased and (2) the adjustment is not made pursuant to
a bona fide, reasonable anti-dilution formula. An adjustment in
the settlement rate would not be considered made pursuant to
such a formula if the adjustment were made to compensate you for
certain taxable distributions with respect to our common stock.
Thus, under some circumstances, an increase in the settlement
rate might give rise to a taxable dividend to you even though
you would not receive any cash. We do not presently anticipate
that we will make any distributions to our shareholders which
are treated for U.S. federal income tax purposes as dividends.
Treasury PEPS Units
Substitution
of Treasury securities to create Treasury PEPS
Units
If you hold PEPS Units and deliver Treasury
securities in substitution for senior notes, you generally will
not recognize gain or loss upon the delivery of the Treasury
securities or the release of the senior notes from the pledge
arrangement. You will continue to include in income any interest
payments with respect to the senior notes you continue to hold,
and your tax basis in, and holding period for, the senior notes
and the purchase contracts will not be affected by the delivery
and release.
Ownership
of Treasury securities
You, by acquiring Treasury PEPS Units, agree to
be treated as the owner, for U.S. federal, state and local
income and franchise tax purposes, of the Treasury securities
that are part of the Treasury PEPS Unit that you own.
Accordingly, you will be required to recognize income, gain and
loss with respect to the Treasury securities in the same manner
as if you held them directly. You are urged to consult with your
tax advisor regarding the acquisition, ownership and disposition
of the Treasury securities.
Substitution
of senior notes to recreate PEPS Units
If you hold Treasury PEPS Units and deliver
senior notes to recreate PEPS Units, you generally will not
recognize gain or loss upon the delivery of the senior notes or
the release of the Treasury securities. You will continue to
include in income any interest, original issue discount or
acquisition discount otherwise includible with respect to the
Treasury securities and the senior notes, and your tax basis in,
and holding period for, the Treasury securities, the senior
notes and the purchase contract will not be affected by the
delivery and release.
Tax or accounting event redemption
A tax or accounting event redemption will be a
taxable event. You will generally recognize capital gain or loss
in an amount equal to the difference between (1) the
redemption price of the senior notes (whether paid directly to
you or applied to the purchase of the Treasury portfolio on
behalf of holders of the PEPS Units), except to the extent of
amounts paid in respect of accrued but unpaid interest not
previously included in income, which will be taxable as such,
and (2) your adjusted tax basis in the senior notes.
Capital gains of
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individuals derived in respect of capital assets
held for more than one year are taxed up to a maximum tax rate
of 20%. Your ability to deduct capital losses is subject to
limitations.
Treasury
portfolio
You, by acquiring PEPS Units, agree to be treated
as the owner, for U.S. federal state and local income and
franchise tax purposes, of that portion of the Treasury
portfolio that is a part of the PEPS Units that you own. You
will be required to include in income any amount earned on your
pro rata share of the Treasury portfolio for all U.S. federal,
state and local income and franchise tax purposes. You are urged
to consult your tax advisor regarding the tax treatment of the
acquisition, ownership and disposition of the Treasury portfolio.
Sale or disposition of PEPS Units or Treasury
PEPS Units
Upon a disposition of PEPS Units or Treasury PEPS
Units, you will be treated as having sold, exchanged or disposed
of the purchase contracts and senior notes or Treasury
securities or applicable interest in the Treasury portfolio, as
the case may be, that constitute the PEPS Units or Treasury PEPS
Units. You generally will have capital gain or loss equal to the
difference between the portion of your proceeds allocable to the
purchase contracts and the senior notes or Treasury securities
or applicable interest in the Treasury portfolio, as the case
may be, and your respective tax basis in the purchase contracts
and the senior notes or Treasury securities or applicable
interest in the Treasury portfolio. See "—PEPS
Units— Senior notes— Sale, exchange or other
disposition of senior notes."
If the disposition of a PEPS Unit or Treasury
PEPS Unit occurs when the purchase contract has a negative value
to you, you will be considered to have received additional
consideration for the senior note or Treasury securities or
applicable interest in the Treasury portfolio in an amount equal
to such negative value and to have paid such amount to be
released from your obligation under the purchase contract. You
should consult your tax advisor regarding a disposition of a
PEPS Unit or Treasury PEPS Unit at a time when the purchase
contract has a negative value.
Information reporting and backup
withholding
Unless you are an exempt recipient such as a
corporation, (1) payments under the PEPS Units, Treasury
PEPS Units, senior notes, purchase contracts, Treasury
securities or applicable interest in the Treasury portfolio or
our Class A common shares, (2) the proceeds received
with respect to a fractional share of our common stock upon the
settlement of a purchase contract and (3) the proceeds
received from the sale, exchange or other disposition of PEPS
Units, Treasury PEPS Units, senior notes, purchase contracts,
Treasury securities or applicable interest in the Treasury
portfolio or our Class A common shares may be subject to
information reporting and may be subject to U.S. federal backup
withholding at the applicable rate if you fail to supply an
accurate taxpayer identification number or otherwise fail to
comply with applicable U.S. information reporting or
certification requirements. Amounts withheld under the backup
withholding rules may be allowed as a refund or a credit against
your U.S. federal income tax liability provided the required
information is furnished to the IRS.
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ERISA CONSIDERATIONS
Section 406 of the Employee Retirement
Income Security Act of 1974, as amended ("ERISA") and
Section 4975 of the Internal Revenue Code of 1986, as
amended (the "Code"), prohibit pension, profit-sharing
or other employee benefit plans, as well as individual
retirement accounts, Keogh plans and other plans subject to
Section 4975 of the Code ("Plans"), from engaging
in certain transactions involving "plan assets" with
persons who are "parties in interest" under ERISA or
"disqualified persons" under the Code ("Parties
in Interest") with respect to such Plans. As a result of
the business of Monday Ltd and its related entities, both it and
Monday Finance SA and Monday SCA could be Parties in Interest
with respect to many Plans. Where this is the case, the purchase
and holding of the PEPS Units by or on behalf of the Plan could
result in prohibited transactions under Section 406(a)(1)
of ERISA and Section 4975(c)(1) of the Code, unless
exemptive relief were available. In this regard, the U.S.
Department of Labor has issued the following prohibited
transaction class exemptions ("PTCEs") that may apply
to the acquisition and holding of the PEPS Units and the
underlying component instruments and transactions:
PTCE 96-23 (relating to transactions determined by in-house
asset managers), PTCE 95-60 (relating to transactions by
insurance company general accounts), PTCE 91-38 (relating
to transactions by bank collective investment trusts),
PTCE 90-1 (relating to transactions by insurance company
separate accounts) or PTCE 84-14 (relating to transactions
determined by qualified professional asset managers). There can
be no assurance, however, that all of the conditions of any such
exemption will be satisfied.
Accordingly, each purchaser or holder of the PEPS
Units or any interest therein will be deemed to have represented
by its purchase and holding thereof that (a) it is not a
Plan or an entity whose underlying assets include "plan
assets" by reason of any Plan's investment in the
entity (collectively, "Plan Investors") and is not
purchasing the PEPS Units on behalf of or with "plan
assets" of any Plan Investor or (b) its purchase,
holding and disposition of the PEPS Units and the underlying
component instruments, and its involvement in the transactions
contemplated by the PEPS Units, will not involve any non-exempt
prohibited transactions under ERISA or the Code or other similar
laws. This representation will be deemed to be made at each
moment from and including the date of acquisition of the PEPS
Units through and including the date of disposition of the PEPS
Units and each component instrument. A purchase of the PEPS
Units by a Plan Investor will be deemed to constitute an
approval of the terms of all of the actions and transactions
described in this prospectus taken by, effected by or involving
Monday Ltd, Monday Finance SA, Monday SCA, their related
entities and the remarketing agent.
Employee benefit plans that are governmental
plans (as defined in Section 3(32) of ERISA), certain
church plans (as defined in Section 3(33) of ERISA) and
foreign plans (as described in Section 4(b)(4) of ERISA)
are not subject to the prohibited transaction rules of ERISA or
the Code, but may be subject to similar rules under other
applicable laws or documents.
Due to the complexity of the applicable rules, it
is particularly important that fiduciaries or other persons
considering purchasing the PEPS Units on behalf of or with
"plan assets" of any Plan Investor consult with their
counsel regarding the relevant provisions of ERISA and the Code
and the availability of exemptive relief under PTCE 96-23,
95-60, 91-38, 90-1 or 84-14. Parties who purchase and hold the
PEPS Units and become involved in the actions and transactions
contemplated under the PEPS Units accept sole responsibility for
ensuring that such actions and transactions do not involve
non-exempt prohibited transactions under ERISA, the Code or
similar laws or an unauthorized delegation of fiduciary
authority with respect to assets of a Plan Investor. The sale of
the PEPS Units to a Plan Investor is in no respect a
representation by Monday Ltd, any related entity or the
underwriters that the PEPS Units meet all relevant legal
requirements with respect to investments by Plan Investors
generally or any particular Plan Investor, or that the PEPS
Units are appropriate for Plan Investors generally or any
particular Plan Investor.
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UNDERWRITERS
Under the terms and subject to the conditions
contained in an underwriting agreement dated the date of this
prospectus, the underwriters named below, for whom Morgan
Stanley & Co. Incorporated is acting as representative,
have severally agreed to purchase, and Monday Ltd, Monday SCA
and Monday Finance SA have agreed to sell to them, severally,
the respective number of PEPS Units set forth below:
Number of
Name
PEPS Units
Morgan Stanley & Co. Incorporated
Goldman, Sachs & Co.
Lehman Brothers Inc.
Merrill Lynch, Pierce, Fenner & Smith
Incorporated
Banc of America Securities LLC
Credit Suisse First Boston Corporation
Salomon Smith Barney Inc.
SG Cowen Securities Corporation
UBS Warburg LLC
Total
The underwriters are offering the PEPS Units
subject to their acceptance of the PEPS Units from us and
subject to prior sale. The underwriting agreement provides that
the obligations of the several underwriters to pay for and
accept delivery of the PEPS Units offered by this prospectus are
subject to the approval of specified legal matters by their
counsel and to other conditions. These conditions include a
condition that our separation be completed prior to the closing
of this offering and a condition that the initial public
offering of our Class A common shares be consummated
simultaneously. The underwriters are obligated to take and pay
for all of the PEPS Units offered by this prospectus if any such
units are taken. However, the underwriters are not required to
take or pay for the PEPS Units covered by the over-allotment
option described below.
The underwriters initially propose to offer a
portion of the PEPS Units directly to the public at the public
offering price listed on the cover page of this prospectus and a
portion to some dealers at a price that represents a concession
not in excess of $     per PEPS Unit
under the public offering price. Any underwriter may allow, and
such dealers may reallow, a concession not in excess of
$     per PEPS Unit to other
underwriters or dealers. After the initial offering of the PEPS
Units, the offering price and other selling terms may from time
to time be varied by the representative.
The underwriting discounts and commissions to be
paid by us, which are expected to be a fixed percentage of the
offering price, are set forth in the following table:
Underwriting
Net Proceeds
Price to
Discounts and
to Monday
Public
Commissions
Finance SA
Per PEPS Unit
$
25.00
$
$
Total
$
$
$
We expect that the offering expenses payable by
us in connection with this offering, other than the underwriting
discounts and commissions, will be approximately
$                    .
We have granted to the underwriters an option,
exercisable for 30 days from the date of this prospectus,
subject to certain limitations, to purchase up to an aggregate
of                     additional
PEPS Units at the public offering price listed on the cover page
of this prospectus, less underwriting discounts and commissions.
The underwriters may exercise this option solely for the purpose
of covering over-allotments, if any, made in connection with the
offering of PEPS Units by this prospectus. To the extent this
option is exercised, each underwriter will become obligated,
subject to specified conditions, to purchase the same percentage
of
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additional PEPS Units as the number listed next
to the underwriter's name in the preceding table bears to
the total number of PEPS Units listed next to the names of all
underwriters in the preceding table.
If the underwriters' option is exercised in
full, the total price to the public would be
$        million, the
total underwriting discounts and commissions would be
$          and
the total proceeds to us would be
$          .
We, our shareholders, employees, service
providers, partners, officers and directors who received
Class A common shares in our separation will agree, without
the prior written consent of Morgan Stanley & Co.
Incorporated on behalf of the underwriters, not to, during the
period ending 180 days after the date of this prospectus:
•
offer, pledge, sell, contract to sell, sell any
    option or contract to purchase, purchase any option or contract
    to sell, grant any option, right or warrant to purchase, lend,
    exchange, redeem or otherwise transfer or dispose of, directly
    or indirectly, any Class A common shares or Class X
    common shares or any securities convertible into or exercisable
    or exchangeable for Class A common shares or Class X
    common shares, or any shares of capital stock of Monday SCA or
    any securities convertible into or exercisable or exchangeable
    for capital stock of Monday SCA, or
•
enter into any swap or other arrangement that
    transfers to another, in whole or in part, any of the economic
    consequences of ownership of the Class A common shares,
    Class X common shares or any securities convertible into or
    exercisable or exchangeable for Class A common shares,
    Class X common shares or capital stock of Monday SCA,
whether any such transaction described above is
to be settled by delivery of Class A common shares,
Class X common shares, capital stock of Monday SCA or such
other securities, in cash or otherwise.
In addition, the PricewaterhouseCoopers firms and
their partners and shareholders taking part in the concurrent
Class A common shares offering will each agree not to enter
into any such transaction for a period of up to two years after
the date of the closing of the concurrent Class A common
shares offering according to the following schedule:
Amount of Class A
Period of time following the closing of the
common shares that
concurrent Class A common shares offering
may be sold
Less than six months
0
%
Between 6 months and 12 months
25
%
Between 12 months and 18 months
50
%
Between 18 months and 24 months
75
%
More than 24 months
100
%
The restrictions described in the preceding two
paragraphs do not apply to:
•
the sale of the PEPS Units to the underwriters,
•
the sale of Class A common shares to the
    underwriters for the concurrent Class A common shares
    offering,
•
our issuance of up
    to       million Class A
    common shares upon the exercise of an option or warrant or the
    exchange, redemption or conversion of a security outstanding on
    the date of the closing of the concurrent Class A common
    shares offering of which the underwriters have been advised in
    writing prior to the date of this prospectus, including
    exchanges of Monday SCA Class I common shares and exchanges
    of exchangeable shares issued by one of Monday SCA's
    subsidiaries for shares of Class A common shares, provided
    that, except as otherwise agreed in writing by Morgan
    Stanley & Co. Incorporated on behalf of the
    underwriters, such shares are subject to the terms of the
    restrictions described above,
•
our issuance of Class A common shares in
    connection with an exercise of a purchase contract underlying a
    PEPS Unit,
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•
issuance pursuant to the rollup agreements of our
    Class A common shares, Monday SCA Class I common
    shares and exchangeable shares of one of Monday SCA's
    subsidiaries in exchange for shares of our subsidiaries,
•
the granting by us of awards with respect to not
    more than   million shares of Class A common
    shares to officers, directors, consultants or employees,
    including any person providing services through a personal
    service company, under the benefit plans described in this
    prospectus, provided that these awards are not exercisable prior
    to the end of the 180-day lock-up described above,
•
any transaction required under the proposed
    independence relief no-action letter from the SEC described in
    this prospectus,
•
issuance of a number of shares not exceeding
    11.5% of the Class A common shares to be outstanding
    immediately following the closing of the concurrent Class A
    common shares offering, assuming all Monday SCA Class I
    common shares and exchangeable shares issued by one of Monday
    SCA's subsidiaries then outstanding are redeemed or
    exchanged for newly issued Class A common shares on a
    one-for-one basis, in each case in connection with acquisitions,
    including any acquisitions of the consulting business of a
    PricewaterhouseCoopers firm, provided that the recipient of such
    shares agrees to be bound by the restrictions described above,
•
any transfer by a selling shareholder of Monday
    SCA Class I common shares or exchangeable shares of one of
    Monday SCA's subsidiaries, provided that the transferee of
    any such shares agrees to be bound by the restrictions described
    above,
•
with respect to each of the exceptions listed
    above, the issuance by Monday SCA of the same number of shares
    of its equity to Monday Ltd or
•
some transfers by our partners, officers and
    directors for estate planning purposes, provided that the
    transferee of any such shares agrees to be bound by the
    restrictions described above.
In order to facilitate the offering of the PEPS
Units, the underwriters may engage in transactions that
stabilize, maintain or otherwise affect the price of the PEPS
Units. Specifically, the underwriters may sell more PEPS Units
than they are obligated to purchase under the underwriting
agreement, creating a short position in the PEPS Units for their
own account. A short sale is covered if the short position is no
greater than the number of PEPS Units available for purchase by
the underwriters under the over-allotment option. The
underwriters can close out a covered short sale by exercising
the over-allotment option or purchasing PEPS Units in the open
market. In determining the source of PEPS Units to close out a
covered short sale, the underwriters will consider, among other
things, the open market price of the PEPS Units compared to the
price available under the over-allotment option. The
underwriters may also sell PEPS Units in excess of the
over-allotment option, creating a naked short position. The
underwriters must close out any naked short position by
purchasing PEPS Units in the open market. A naked short position
is more likely to be created if the underwriters are concerned
that there may be downward pressure on the price of the PEPS
Units in the open market after pricing that could adversely
affect investors who purchase PEPS Units in this offering. As an
additional means of facilitating this offering, the underwriters
may bid for, and purchase, PEPS Units in the open market to
stabilize the price of the PEPS Units. The underwriting
syndicate may reclaim selling concessions allowed to an
underwriter or a dealer for distributing the PEPS Units in this
offering, if the syndicate repurchases previously distributed
PEPS Units to cover syndicate short positions or to stabilize
the price of the PEPS Units. Any of these activities may raise
or maintain the market price of the PEPS Units above independent
market levels or prevent or retard a decline in the market price
of the PEPS Units. The underwriters are not required to engage
in these activities, and may end any of these activities at any
time.
From time to time, some of the underwriters and
their affiliates have provided, and will continue to provide,
investment banking services to us and the PricewaterhouseCoopers
network of firms. Morgan Stanley & Co. Incorporated
advised the PricewaterhouseCoopers firms on the reorganization
of its business, including the sale of Unifi, its U.S. human
resources business; the sale of portions of its financial
advisory services business, including its U.S. corporate value
consulting business; the proposed disposal of its business
processing management services business; and the attempted sale
of our business, which was not
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consummated. Morgan Stanley & Co.
Incorporated received usual and customary fees for this advice.
Some of the underwriters for this offering also are acting as
underwriters of the concurrent Class A common shares
offering.
We, Monday SCA, Monday Finance SA and the
underwriters have agreed to indemnify each other against some
liabilities, including liabilities under the Securities Act.
Neither the lead manager nor any of the
underwriters participating in pricing activities are audit
clients or affiliates of audit clients of the
PricewaterhouseCoopers network of firms. Some other syndicate
members of the underwriters may be clients or affiliates of
audit clients of the PricewaterhouseCoopers network of firms.
Morgan Stanley DW Inc., an affiliate of Morgan
Stanley & Co. Incorporated, through Morgan Stanley
Online, its online service, may be a member of the syndicate and
engage in electronic offers, sales and distributions of the
shares being offered.
Prior to this offering, there has been no public
market for the PEPS Units. We will apply to have the PEPS Units
approved for listing on the New York Stock Exchange. We have
been advised by the underwriters that they intend to make a
market in the PEPS Units. The underwriters are not obligated to
do so and may discontinue their market making at any time
without notice. We can provide no assurance as to the liquidity
of any trading market for the PEPS Units.
LEGAL MATTERS
The validity of the issuance of the purchase
contracts and the underlying Class A common shares offered
by this prospectus will be passed upon for us by Conyers
Dill & Pearman, Hamilton, Bermuda. The validity of the
issuance of the senior notes offered by this prospectus will be
passed upon for us by Linklaters Loesch, Luxembourg. Certain
legal matters of United States and New York law will be passed
upon for us by Davis Polk & Wardwell, New York, New
York. Appleby Spurling & Kempe, Hamilton, Bermuda, will pass
upon the validity of the issuance of the purchase contracts and
the underlying Class A common shares offered by this
prospectus for the underwriters. Beghin & Feider en
association avec Allen & Overy, Luxembourg, will pass for
the underwriters upon the validity of the issuance of the senior
notes offered by this prospectus. Certain legal matters of
United States and New York law will be passed upon for the
underwriters by Hughes Hubbard & Reed LLP, New York,
New York. Hughes Hubbard & Reed LLP has provided, and will
continue to provide, legal services to firms in the
PricewaterhouseCoopers network of firms and their affiliates
from time to time for which they have received, and will
receive, customary fees and reimbursement of expenses.
EXPERTS
Our combined financial statements as of
June 30, 2000 and 2001, and for each of the three years in
the period ended June 30, 2001, included in this prospectus
have been audited by Deloitte & Touche LLP, independent
auditors, as stated in their reports appearing in this
prospectus, and have been included in reliance upon the reports
of Deloitte & Touche LLP given upon their authority as
experts in accounting and auditing.
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WHERE YOU CAN FIND MORE INFORMATION
We have filed with the SEC a registration
statement on Form S-1 under the Securities Act of 1933, as
amended, with respect to our PEPS Units offered hereby. This
prospectus does not contain all of the information set forth in
the registration statement, as amended, and the exhibits to the
registration statement, as amended, to which reference is hereby
made. Some items are omitted in accordance with the rules and
regulations of the SEC. With respect to each contract, agreement
or other document filed as an exhibit to the registration
statement, as amended, reference is made to such exhibit for a
more complete description of the matter involved and statements
contained in this prospectus that are not necessarily complete
are qualified in all respects by such reference. The
registration statement, and any amendments to the registration
statement, and the exhibits to the registration statement filed
by us with the SEC may be inspected at the public reference
facilities of the SEC listed below.
As a result of this offering, Monday Ltd and
Monday SCA will be subject to the informational requirements of
the Securities Exchange Act of 1934, as amended, and in
accordance therewith will file reports, proxy statements and
other information with the SEC. Such reports, proxy statements
and other information can be inspected and copied at the public
reference facilities maintained by the SEC at its principal
offices at Room 1024, 450 Fifth Street, N.W.,
Washington, D.C. 20549. Please call the SEC at
1-800-SEC-0330 for further information on the operation of the
public reference rooms. Copies of such information may be
obtained from the Public Reference Section of the SEC at
450 Fifth Street, N.W., Washington, D.C. 20549 at
prescribed rates. The Commission also maintains a World Wide Web
site (http://www.sec.gov) that contains reports, proxy and
information statements and other information regarding
registrants that file electronically with the SEC.
We intend to furnish holders of our PEPS Units
and Treasury PEPS Units with annual reports containing combined
financial statements audited by independent accountants,
beginning with the fiscal year ending June 30, 2002. We
also intend to furnish other reports as we may determine or as
required by law. We also maintain an Internet site at
http://www.monday.com. Our website and the information it
contains or that is connected to it shall not be deemed to be
incorporated into this prospectus or the registration statement
of which the prospectus forms a part.
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PwC CONSULTING
(A Business Unit of the PricewaterhouseCoopers
Network of Firms)
INDEX TO COMBINED FINANCIAL
STATEMENTS
Page
Interim Financial Reporting
Combined Balance Sheets at June 30, 2001 and
    (unaudited) March 31, 2002
F-2
Combined Income Statements Before Partner
    Distributions and Benefits (unaudited) for the nine months ended
    March 31, 2001 and 2002
F-3
Combined Statements of Cash Flows (unaudited) for
    the nine months ended March 31, 2001 and 2002
F-4
Notes to the Combined Financial Statements
    (unaudited)
F-5
Annual Financial Statements
Independent Auditors' Report
F-10
Combined Balance Sheets at June 30, 2000 and
    2001
F-11
Combined Income Statements Before Partner
    Distributions and Benefits for the years ended June 30,
    1999, 2000 and 2001
F-12
Combined Statements of Cash Flows for the years
    ended June 30, 1999, 2000 and 2001
F-13
Combined Statements of Changes in the PwC Network
    Investment and Comprehensive Income for the years ended
    June 30, 1999, 2000 and 2001
F-14
Notes to the Combined Financial Statements
F-15
F-1
Table of Contents
PwC CONSULTING
(A Business Unit of the PricewaterhouseCoopers
Network of Firms)
COMBINED BALANCE SHEETS
(In thousands)
June 30,
March 31,
2001
2002
(Unaudited)
Assets
Current assets
Cash and cash equivalents
$
110,204
$
115,193
Short-term investments
3,151
13,724
Accounts receivable (net of allowances of $84,262
    and $60,267 at June 30, 2001 and March 31, 2002,
    respectively)
1,264,946
1,013,310
Unbilled receivables
154,001
188,774
Amounts due from the PwC Network
12,446
58,024
Prepaid and other current assets
90,225
108,566
Total current assets
1,634,973
1,497,591
Investments
9,360
4,746
Property and equipment, net
137,619
145,451
Goodwill, net
151,063
117,908
Other non-current assets
55,484
41,472
Total non-current assets
353,526
309,577
Total assets
$
1,988,499
$
1,807,168
Liabilities and PwC Network
    Investment
Current liabilities
Accounts payable and accrued liabilities
$
161,611
$
183,106
Accrued payroll and related benefits
103,365
95,183
Short-term bank borrowings
29,223
71,611
Current portion of long-term debt
6,506
4,103
Amounts due to the PwC Network
1,019,051
891,505
Total current liabilities
1,319,756
1,245,508
Long-term liabilities
Long-term debt
49,888
52,455
Other long-term liabilities
115,821
79,950
Total long-term liabilities
165,709
132,405
Commitments and contingencies
PwC Network investment
503,034
429,255
Total liabilities and the PwC Network investment
$
1,988,499
$
1,807,168
The accompanying notes are an integral part of
these financial statements.
F-2
Table of Contents
PwC CONSULTING
(A Business Unit of the PricewaterhouseCoopers
Network of Firms)
COMBINED INCOME STATEMENTS
BEFORE PARTNER DISTRIBUTIONS AND
BENEFITS
(In thousands)
Nine Months Ended
March 31,
2001
2002
(Unaudited)
Revenues
$
5,637,753
$
5,005,260
Cost of services*
2,891,832
2,524,357
Reimbursables and subcontractor costs
1,141,532
1,041,011
Total cost of services*
4,033,364
3,565,368
Selling, general and administrative expenses*
1,157,117
965,839
Goodwill amortization
42,995
44,817
Operating income*
404,277
429,236
Interest income
1,914
4,544
Interest expense
(44,914
)
(33,616
)
Other income (expense)
(7,910
)
98
Income before partner distributions and benefits*
$
353,367
$
400,262
*
Excludes payments for partner distributions and
    benefits
The accompanying notes are an integral part of
these financial statements.
F-3
Table of Contents
PwC CONSULTING
(A Business Unit of the PricewaterhouseCoopers
Network of Firms)
COMBINED STATEMENTS OF CASH FLOWS
(In thousands)
Nine Months Ended
March 31,
2001
2002
(Unaudited)
Cash flows from operating activities:
Income before partner distributions and benefits
$
353,367
$
400,262
Adjustments to reconcile to net cash provided by
    operating activities:
Depreciation and amortization
86,874
82,188
Net realized (gain)/loss on disposal of
    investments
7,911
(98
)
Loss on disposal of property and equipment
3,940
13,646
Allowance for bad debts
63,680
21,109
Changes in assets and liabilities:
Accounts receivable
(13,925
)
230,526
Unbilled receivables
15,612
(34,773
)
Amounts due from the PwC Network
489
(45,578
)
Prepaid and other current assets
(2,203
)
(18,341
)
Other assets
(18,489
)
14,012
Accounts payable and accrued liabilities
56,898
21,495
Accrued payroll and related benefits
(3,246
)
(8,182
)
Amounts due to the PwC Network
141,092
(55,953
)
Net cash provided by operating activities
692,000
620,313
Cash flows from investing activities:
Purchase of property and equipment
(74,356
)
(49,593
)
Proceeds from sale of property and equipment
722
152
Purchases of investments
(4,831
)
(22
)
Proceeds from sale of investments
3,509
813
Purchase of available for sale securities
(5,155
)
—
Proceeds from sale of available for sale
    securities
11,051
—
Net cash used in investing activities
(69,060
)
(48,650
)
Cash flows from financing activities:
Amounts due to the PwC Network
115,153
(79,039
)
Proceeds from line of credit and issuance of
    short-term bank borrowings
33,114
52,789
Payments on line of credit and short-term bank
    borrowings
(60,483
)
(11,101
)
Other long-term liabilities
(56,660
)
(35,871
)
Proceeds from issuance of long-term debt
17,218
6,742
Payments on long-term debt
(15,854
)
(5,878
)
Activity in PwC Network investment, net
(635,476
)
(493,368
)
Net cash used in financing activities
(602,988
)
(565,726
)
Effect of foreign exchange rate changes on cash
    and cash equivalents
4,058
(948
)
Net increase in cash and cash equivalents
24,010
4,989
Cash and cash equivalents, beginning of period
74,352
110,204
Cash and cash equivalents, end of period
$
98,362
$
115,193
The accompanying notes are an integral part of
these financial statements.
F-4
Table of Contents
PwC CONSULTING
(A Business Unit of the PricewaterhouseCoopers
Network of Firms)
NOTES TO THE COMBINED FINANCIAL
STATEMENTS
(In thousands)
(unaudited)
1.     Basis of
Presentation
The accompanying unaudited interim combined
financial statements of PwC Consulting are prepared pursuant to
the rules and regulations of the Securities and Exchange
Commission ("SEC") and accounting principles generally
accepted in the United States of America ("U.S. GAAP")
regarding interim reporting. As such, these unaudited interim
combined financial statements do not include all the information
and disclosures required by U.S. GAAP for annual financial
statements and should be read in conjunction with the annual
combined financial statements and notes thereto included within
this prospectus. These unaudited interim combined financial
statements do reflect all adjustments (consisting solely of
normal, recurring adjustments) which are, in the opinion of
management, necessary for a fair presentation of results for
these periods.
These combined financial statements include the
financial position, results of operations and cash flows of all
firms that comprise the PricewaterhouseCoopers network of firms
around the world (the "PwC Network") which have
management consulting and technology services that are under
common management oversight. PwC Consulting's management
consulting and technology services include strategic change,
customer relationship management, financial management, human
capital, supply chain and operations, information technology and
application management and business process management services.
All material inter-firm balances and transactions have been
eliminated. These combined financial statements have been
derived from the overall books and records of the PwC Network.
Accordingly, assumptions and allocations have been made which
are estimates, as further described in Note 4 of PwC
Consulting's annual combined financial statements included
within this prospectus and Note 4 within these unaudited
interim combined financial statements. Management believes that
the assumptions and allocations underlying these financial
statements are reasonable. Management does not believe, however,
that it is practical to estimate what these expenses would have
been had PwC Consulting operated as an independent entity,
including any expenses associated with obtaining any of these
services from unaffiliated entities. As a result, the combined
financial statements presented do not reflect the assets and
liabilities or income before partner distributions and benefits
had PwC Consulting operated as a separate corporate entity. The
results of operations for the nine months ended March 31,
2002, are not necessarily indicative of the results that may be
expected for the fiscal year ending June 30, 2002.
2.     Comprehensive
Income
The components of comprehensive income for the
nine month periods ended March 31, 2001 and 2002,
respectively, are as follows:
2001
2002
Income before partner distributions and benefits
$
353,367
$
400,262
Foreign currency translation adjustments
4,058
(948
)
Unrealized (losses) gains on available for sale
    securities
(19,180
)
6,573
Total comprehensive income
$
338,245
$
405,887
Activity in the PwC Network investment, net for
the nine months ended March 31, 2001 and 2002 was $629,952
and $479,666, respectively.
3.     Segment
Reporting
Operating segments are defined as components of
an enterprise for which separate financial information is
regularly available and evaluated by the chief operating
decision maker, or decision making group, in deciding how to
allocate resources and in assessing performance. PwC
Consulting's chief operating decision making
F-5
Table of Contents
PwC CONSULTING
(A Business Unit of the PricewaterhouseCoopers
Network of Firms)
NOTES TO THE COMBINED FINANCIAL
STATEMENTS—(Continued)
(In thousands)
(unaudited)
group is the PwC Consulting Global Executive
Committee, which is chaired by the PwC Consulting Chief
Executive Officer.
PwC Consulting's reportable operating
segments are the following four geographic units: the Americas,
comprised of the United States, Canada and Mexico; EMEA,
comprised of Europe, the Middle East and Africa; Asia Pacific,
principally comprised of Japan, Australia and East Asia; and
SOACAT, principally comprised of Brazil, Argentina, Chile and
Columbia. These geographical units are managed separately and
represent countries or regions in which PwC Consulting serves
clients in that part of the world.
PwC Consulting evaluates performance of its
operating segments based on "contribution to profit,"
a measure that excludes certain global and other costs from
operating income. In general, the accounting policies for the
operating segments are the same as those described in the
summary of significant accounting policies as disclosed in PwC
Consulting's annual combined financial statements and notes
included within this prospectus, except for those noted and
shown in the reconciliations below. Expenses are allocated to
PwC Consulting by the PwC Network pursuant to the policies in
Note 4 of PwC Consulting's annual combined financial
statements included within this prospectus. There are no
material inter-segment revenues.
Net Revenues*
Nine Months Ended
March 31,
2001
2002
Americas
$
2,393,721
$
1,957,882
EMEA
1,570,096
1,543,517
Asia Pacific
373,597
362,124
SOACAT
77,248
62,136
$
4,414,662
$
3,925,659
*
Net of reimbursable expenses and subcontractor
    costs.
Contribution to Profit
Nine Months Ended
March 31,
2001
2002
Americas
$
364,546
$
444,897
EMEA
352,558
288,089
Asia Pacific
38,783
33,634
SOACAT
1,334
726
$
757,221
$
767,346
F-6
Table of Contents
PwC CONSULTING
(A Business Unit of the PricewaterhouseCoopers
Network of Firms)
NOTES TO THE COMBINED FINANCIAL
STATEMENTS—(Continued)
(In thousands)
(unaudited)
Depreciation & Amortization
Nine Months Ended
March 31,
2001
2002
Americas
$
18,882
$
13,859
EMEA
33,619
26,192
Asia Pacific
5,694
7,248
SOACAT
610
1,220
$
58,805
$
48,519
Interest Expense
Nine Months Ended
March 31,
2001
2002
Americas
$
30,076
$
20,085
EMEA
29,911
25,414
Asia Pacific
5,387
4,561
SOACAT
1,526
2,852
$
66,900
$
52,912
Nine Months Ended
March 31,
2001
2002
Segment net revenues
$
4,414,662
$
3,925,659
Global adjustments
17,879
17,481
Reclassification of the allowance for bad debts
63,680
21,109
Reimbursables and subcontractor costs
1,141,532
1,041,011
Combined revenues
$
5,637,753
$
5,005,260
Segment contribution to profit
$
757,221
$
767,346
Global costs
(304,890
)
(188,543
)
Global PwC Network allocations
(116,500
)
(133,696
)
Other adjustments
68,446
(15,871
)
Combined operating income
$
404,277
$
429,236
Global adjustments represent internal reconciling
items related to revenues between the PwC Network and PwC
Consulting which have not been allocated to the operating
segments. For internal reporting purposes, the allowance for bad
debts is included in revenues. This differs from combined
revenues as the allowance for bad debts is included in selling,
general and administrative expenses.
Global costs represent global PwC Consulting
costs that have not been allocated to the operating segments.
These include global training, service and support staff, and
business development activities. Global PwC Network allocations
represent allocations which are not included in the calculation
of contribution profit reviewed by the chief operating decision
making group. These allocations include global financial
management
F-7
Table of Contents
PwC CONSULTING
(A Business Unit of the PricewaterhouseCoopers
Network of Firms)
NOTES TO THE COMBINED FINANCIAL
STATEMENTS—(Continued)
(In thousands)
(unaudited)
costs and global marketing costs. Other
adjustments primarily represent adjustments to conform the
internal measure of contribution to profit to U.S. GAAP.
With respect to depreciation and amortization,
the difference between the segment totals and the combined
totals relates to the amortization of goodwill that has not been
allocated to the operating segments. Goodwill allocated to the
operating segments consists of acquisitions initiated by the
operating segments. Goodwill not allocated to the operating
segments consists primarily of the goodwill associated with the
merger of firms in the Coopers & Lybrand and Price
Waterhouse networks as discussed in Note 3 of PwC
Consulting's annual combined financial statements included
within this prospectus.
With respect to segment interest expense, the
amount allocated to the operating segments is an imputed amount.
It is used to measure the operating segment's ability to
manage accounts receivable, based primarily on accounts
receivable outstanding for the operating segment. This differs
from the combined interest expense which represents the interest
expense allocated to PwC Consulting by the PwC Network based on
short-term and long-term debt as discussed in Note 4 of PwC
Consulting's annual combined financial statements included
within this prospectus.
4.     Transactions
with the PwC Network
For the nine months ended March 31, 2001 and
2002, revenues included approximately $178,362 and $113,232,
respectively, related to professional services provided to other
PwC Network business units. Additionally, included in cost of
services is approximately $131,362 and $78,232, respectively,
related to professional services received from other PwC Network
business units.
The PwC Network provides various services and
infrastructure to member firms in a country or a region and on a
global basis to PwC Consulting including occupancy, technology
services, finance and planning, human resources, marketing and
business development, risk management and practice protection,
firm-wide management and new product development. Historically,
the methods of allocating these centralized costs to PwC
Consulting include relative revenues, headcount, square footage
or other bases. Total allocated costs for these services
approximate $635,000 for the nine months ended March 31,
2001.
Effective July 1, 2001, on a
country-by-country or regional basis, the PwC network agreed to
certain arrangements relating to the provision of these various
services to PwC Consulting by the PwC Network which were
historically performed on a centralized basis for the benefit of
all PwC Network business units and allocated to PwC Consulting.
In addition, certain marketing and business development, risk
management and other management activities previously provided
centrally by the PwC Network and allocated to PwC Consulting
became the direct responsibility of PwC Consulting as a result
of the transfer of the related personnel and cost management
responsibilities.
These services agreements include the following
functions: occupancy, technology services, finance and planning,
human resources, training and risk management and practice
protection. Under the services agreements, the PwC Network
allocates such costs to PwC Consulting on the basis of actual
usage (specific identification), when available, or a reasonable
substitute such as relative revenues, headcount, square footage
or other bases. The allocation of costs to PwC Consulting for
such services is based on the actual costs incurred by the PwC
Network.
In addition, the costs of certain other services
and activities provided by the PwC Network, including firmwide
management, the PwC Network brand management and marketing, and
other services related to running a multidisciplinary
professional services partnership, are allocated to PwC
Consulting. The allocation of these costs to PwC Consulting was
mutually agreed upon by the PwC Network and PwC Consulting and
is based on the relative benefit received from the related
activities. The methods of allocating these costs include
F-8
Table of Contents
PwC CONSULTING
(A Business Unit of the PricewaterhouseCoopers
Network of Firms)
NOTES TO THE COMBINED FINANCIAL
STATEMENTS—(Continued)
(In thousands)
(unaudited)
net revenues, headcount or other bases which
management considers to be reasonable. The allocation of costs
to PwC Consulting for such services is based on the actual costs
incurred by the PwC Network.
All of the services and infrastructure provided
by the PwC Network to PwC Consulting are charged to the income
statement with a corresponding credit directly to the "PwC
Network investment" account, on the basis that cash
generated by PwC Consulting is distributed to the PwC Network
for the settlement of commonly incurred liabilities,
acquisitions of common assets, and distributions to the PwC
Network partners. The amounts charged by the PwC Network to PwC
Consulting for the provision of services under the service
agreements described above approximate $335,000 for the nine
months ended March 31, 2002. The amounts allocated by the
PwC Network to PwC Consulting for certain other services and
activities described above approximate $175,000. The
implementation of the new arrangements of allocating costs for
services provided by the PwC Network to PwC Consulting increased
income before partner distributions and benefits by $26,000 for
the nine month period ended March 31, 2002.
Under the prior method of allocating costs for
services provided by the PwC Network to PwC Consulting, the
total allocation to PwC Consulting would approximate $536,000.
5.     Employee
Benefit Plans
Defined
Benefit Retirement and Postretirement Benefit
Plans
The cost allocated to PwC Consulting for defined
benefit plans included within cost of services is approximately
$28,000 and $30,000 for the nine months ended March 31,
2001 and 2002, respectively.
For the nine months ended March 31, 2001 and
2002, PwC Consulting recognized approximately $7,000 and
$11,000, respectively, of expense related to postretirement
benefits.
Defined
Contribution Plans
The costs allocated to PwC Consulting for defined
contribution plans included in compensation are approximately
$28,127 and $34,243 for the nine months ended March 31,
2001 and 2002, respectively.
F-9
Table of Contents
INDEPENDENT AUDITORS' REPORT
To PwCC Limited* and its Board of
Directors, to the Partners of
PricewaterhouseCoopers International Limited
and its member firms and to
Monday SCA
c/o PricewaterhouseCoopers LLP
New York, NY
We have audited the accompanying combined balance
sheets of PwC Consulting, the management consulting and
technology services businesses of the firms that comprise the
PricewaterhouseCoopers network of firms around the world (the
"PwC Network") that are under common management, as of
June 30, 2000 and 2001, and the related combined income
statements before partner distributions and benefits, cash flows
and changes in the PwC Network investment and comprehensive
income for the three years in the period ended June 30,
2001. These financial statements are the responsibility of PwC
Consulting's management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits in accordance with
auditing standards generally accepted in the United States of
America. Those standards 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. An audit also includes
assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, such combined financial
statements present fairly, in all material respects, the
combined financial position of PwC Consulting as of
June 30, 2000 and 2001, and the combined results of its
operations before partner distributions and benefits and its
combined cash flows for the three years in the period ended
June 30, 2001 in conformity with accounting principles
generally accepted in the United States of America.
Deloitte & Touche LLP
New York, New York
May 1, 2002 (June 30, 2002 as to the
anticipated issuance of
Premium Equity Participating Security Units
as described in Note 13)
*PwCC Limited changed its name to Monday Ltd on
June 10, 2002.
F-10
Table of Contents
PwC CONSULTING
(A Business Unit of the PricewaterhouseCoopers
Network of Firms)
COMBINED BALANCE SHEETS
(In thousands)
June 30,
2000
2001
Assets
Current assets
Cash and cash equivalents
$
74,352
$
110,204
Short-term investments
44,174
3,151
Accounts receivable (net of allowances of $44,781
    and $84,262 at June 30, 2000 and 2001, respectively)
1,337,636
1,264,946
Unbilled receivables
252,068
154,001
Amounts due from the PwC Network
25,286
12,446
Prepaid and other current assets
97,460
90,225
Total current assets
1,830,976
1,634,973
Investments
10,809
9,360
Property and equipment, net
99,097
137,619
Goodwill, net
214,584
151,063
Other non-current assets
43,558
55,484
Total non-current assets
368,048
353,526
Total assets
$
2,199,024
$
1,988,499
Liabilities and PwC Network
    Investment
Current liabilities
Accounts payable and accrued liabilities
$
153,166
$
161,611
Accrued payroll and related benefits
87,207
103,365
Short-term bank borrowings
74,819
29,223
Current portion of long-term debt
11,814
6,506
Amounts due to the PwC Network
1,085,443
1,019,051
Total current liabilities
1,412,449
1,319,756
Long-term liabilities
Long-term debt
41,088
49,888
Other long-term liabilities
178,269
115,821
Total long-term liabilities
219,357
165,709
Commitments and contingencies
PwC Network investment
567,218
503,034
Total liabilities and the PwC Network investment
$
2,199,024
$
1,988,499
The accompanying notes are an integral part of
these financial statements.
F-11
Table of Contents
PwC CONSULTING
(A Business Unit of the PricewaterhouseCoopers
Network of Firms)
COMBINED INCOME STATEMENTS
BEFORE PARTNER DISTRIBUTIONS AND
BENEFITS
(In thousands)
Year Ended June 30,
1999
2000
2001
Revenues
$
6,230,609
$
7,130,959
$
7,481,003
Cost of services*
2,964,870
3,501,153
3,825,639
Reimbursables and subcontractor costs
1,212,798
1,341,290
1,516,429
Total cost of services*
4,177,668
4,842,443
5,342,068
Selling, general and administrative expenses*
1,408,261
1,595,085
1,586,126
Goodwill amortization
46,946
54,911
57,007
Operating income*
597,734
638,520
495,802
Interest income
2,816
1,918
2,553
Interest expense
(34,816
)
(47,918
)
(58,553
)
Other income (expense)
—
11,619
(15,618
)
Income before partner distributions and benefits*
$
565,734
$
604,139
$
424,184
*
Excludes payments for partner distributions and
    benefits.
The accompanying notes are an integral part of
these financial statements.
F-12
Table of Contents
PwC CONSULTING
(A Business Unit of the PricewaterhouseCoopers
Network of Firms)
COMBINED STATEMENTS OF CASH FLOWS
(In thousands)
Year Ended June 30,
1999
2000
2001
Cash flows from operating activities:
Income before partner distributions and benefits
$
565,734
$
604,139
$
424,184
Adjustments to reconcile to net cash provided by
    operating activities:
Depreciation and amortization
87,384
96,421
121,652
Net realized (gain)/loss on disposal of
    investments
—
(11,619
)
15,618
Loss on disposal of property and equipment
24,879
7,337
8,908
Allowance for bad debts
56,803
25,216
94,419
Noncash revenues
(282
)
(6,486
)
(250
)
Changes in assets and liabilities:
Accounts receivable
(257,246
)
(255,706
)
(46,235
)
Unbilled receivables
(178,472
)
78,273
101,662
Amounts due from the PwC Network
(11,211
)
11,775
12,223
Prepaid and other current assets
(7,017
)
(53,323
)
7,231
Other assets
(577
)
(7,651
)
(11,734
)
Accounts payable and accrued liabilities
62,078
23,931
8,541
Accrued payroll and related benefits
20,600
19,707
16,158
Amounts due to the PwC Network
3,320
50,795
28,176
Net cash provided by operating activities
365,993
582,809
780,553
Cash flows from investing activities:
Purchase of business, net of cash acquired
(45,372
)
(23,530
)
(2,800
)
Purchase of property and equipment
(51,002
)
(77,227
)
(116,584
)
Proceeds from sale of property and equipment
59
15,336
879
Purchases of investments
—
(4,042
)
(5,395
)
Proceeds from sale of investments
—
—
3,863
Purchase of available for sale securities
—
(12,960
)
(5,155
)
Proceeds from sale of available for sale
    securities
—
—
23,724
Net cash used in investing activities
(96,315
)
(102,423
)
(101,468
)
Cash flows from financing activities:
Amounts due to the PwC Network
90,150
141,549
(92,871
)
Proceeds from line of credit and issuance of
    short-term bank borrowings
21,377
44,707
56,181
Payments on line of credit and short-term bank
    borrowings
(5,498
)
(12,109
)
(101,077
)
Other long-term liabilities
114,160
2,474
(62,448
)
Proceeds from issuance of long-term debt
5,365
49,502
10,967
Payments on long-term debt
(1,095
)
(2,854
)
(8,175
)
Activity in PwC Network investment, net
(485,670
)
(669,444
)
(451,844
)
Net cash used in financing activities
(261,211
)
(446,175
)
(649,267
)
Effect of foreign exchange rate changes on cash
    and cash equivalents
(988
)
805
6,034
Net increase in cash and cash equivalents
7,479
35,016
35,852
Cash and cash equivalents, beginning of period
31,857
39,336
74,352
Cash and cash equivalents, end of period
39,336
74,352
110,204
Supplementary cash flow information:
Interest paid on PwC Consulting specific debt
$
2,235
$
4,434
$
14,285
The accompanying notes are an integral part of
these financial statements.
F-13
Table of Contents
PwC CONSULTING
(A Business Unit of the PricewaterhouseCoopers
Network of Firms)
COMBINED STATEMENTS OF CHANGES IN THE PwC
NETWORK INVESTMENT AND
COMPREHENSIVE INCOME
(In thousands)
Accumulated
The
Other
Total
PwC Network
Comprehensive
PwC Network
Investment
Income/(Loss)
Investment
Balances as of June 30, 1998
$
490,684
$
—
$
490,684
Components of comprehensive income:
Income before partner distributions and benefits
565,734
565,734
Foreign currency translation adjustment
—
(988
)
(988
)
Total comprehensive income
—
—
564,746
Activity in the PwC Network investment, net
(486,786
)
—
(486,786
)
Balances at June 30, 1999
569,632
(988
)
568,644
Components of comprehensive income:
Income before partner distributions and benefits
604,139
—
604,139
Foreign currency translation adjustment
—
805
805
Unrealized gain on available for sale securities
—
10,629
10,629
Total comprehensive income
—
—
615,573
Activity in PwC Network investment, net
(616,999
)
—
(616,999
)
Balance at June 30, 2000
556,772
10,446
567,218
Components of comprehensive income:
Income before partner distributions and benefits
424,184
—
424,184
Foreign currency translation adjustment
—
6,034
6,034
Unrealized loss on available for sale securities
—
(10,067
)
(10,067
)
Total comprehensive income
—
—
420,151
Activity in PwC Network investment, net
(484,335
)
—
(484,335
)
Balances at June 30, 2001
$
496,621
$
6,413
$
503,034
The accompanying notes are an integral part of
these financial statements.
F-14
Table of Contents
PwC CONSULTING
(A Business Unit of the PricewaterhouseCoopers
Network of Firms)
NOTES TO THE COMBINED FINANCIAL
STATEMENTS
(In thousands, except share data)
1.     Nature of
Operations
PwC Consulting refers to the management
consulting and technology services businesses of the firms that
comprise the PricewaterhouseCoopers network of firms around the
world (the "PwC Network") that are under common
management. PwC's Consulting's management consulting
and technology services include strategic change, customer
relationship management, financial management, human capital,
supply chain and operations, information technology and
application management and business process management services.
PwC Consulting provides management consulting and technology
services, including business process management services, to
businesses, governments and other organizations. The PwC
Consulting business is comprised of the various PwC Consulting
businesses of each of the respective PwC Network firms, as more
fully described below. PwC Consulting has businesses around the
world with the most significant operations in the United States,
United Kingdom and Germany.
As a business unit of the PwC Network, the
majority of the individual PwC Consulting businesses (in terms
of revenues, expenses and assets) are conducted as separate
businesses within the respective PwC firms, with such businesses
having no separate legal status. Certain individual PwC
Consulting businesses in various countries operate through
separate legal entities. Accordingly, the assets associated with
PwC Consulting that are presented in the accompanying combined
balance sheets are by and large legally subject to all the
obligations of the respective firms in the PwC Network, not
solely to the liabilities appearing in the accompanying combined
balance sheets.
2.     Basis of
Presentation
The combined financial statements of PwC
Consulting are prepared in accordance with accounting principles
generally accepted in the United States of America ("U.S.
GAAP"). The combined financial statements include the
financial position, results of operations and cash flows of all
firms in the PwC Network which have management consulting and
technology services businesses that are under common management
oversight. All material inter-firm balances and transactions
have been eliminated.
These combined financial statements have been
derived from the books and records of the PwC Network.
Accordingly, assumptions and allocations have been made which
are estimates. See Note 4 for a discussion of allocated
costs and the PwC Network's investment. Management believes
that the assumptions and allocations underlying these financial
statements are reasonable. Management does not believe, however,
that it is practical to estimate what these expenses would have
been had PwC Consulting operated as an independent entity,
including any expenses associated with obtaining any of these
services from unaffiliated entities. Additionally, all of the
PwC Network firms are either a partnership where earnings are
allocable to its partners and principals or a corporation
operated in a manner similar to that of a partnership. Also,
partnership distributions are not executive compensation in the
customary sense of that term because partnership distributions
are comprised of distributions of current earnings. As a result,
it is not practical to differentiate the ownership components of
distributions to partners and shareholders from the compensation
components of such distributions. As a result, the combined
financial statements presented do not reflect the assets and
liabilities or income before partner distributions and benefits
had PwC Consulting operated as a separate public company.
The
Merger of Coopers & Lybrand and Price Waterhouse Global
Networks
Effective July 1, 1998, substantially all of
the various professional services firms comprising the global
networks of Coopers & Lybrand and Price Waterhouse
combined on a country-by-country or regional basis and
established a new global network of combined firms that comprise
PwC. The PwC Network adopted a
F-15
Table of Contents
PwC CONSULTING
(A Business Unit of the PricewaterhouseCoopers
Network of Firms)
NOTES TO THE COMBINED FINANCIAL
STATEMENTS — (Continued)
(In thousands, except share data)
coordinated strategy, branding and standard of
operations on a global basis under a common global management
team.
These combinations of partners' book capital
interests have been accounted for as a combination at
predecessor basis as of the date of combination. Individual
firms representing over 80% of PwC Consulting revenues were in
the form of partnerships prior to and following the
combinations. In the combinations of these partnerships neither
predecessor partner group received a partnership interest that
represents a fair value residual equity interest in the combined
partnerships. Partners rights are limited to the amount of their
book capital contributed and any allocated but undistributed
profits. These partners continued to maintain their same book
capital account in the combined partnership and agreed to share
profits in the combined firm on the same basis as prior to the
combination.
The remaining firms were primarily in the form of
corporations and the combinations were deemed to be an
acquisition of one firm by the other as purchases under the
Accounting Principles Board's (APB) Opinion 16,
"Business Combinations." The determination of the
accounting acquirer in each country was determined based on the
number of partners in the respective firms and the relative
sizes of the firms. The purchase price for such transactions was
based on the estimated fair value of the deemed acquired entity
based on values established in comparable transactions.
Additionally, in one country, the firms agreed to join the PwC
Network without a legal combination in their respective country.
These firms, while not material, are included at their
historical basis of accounting.
3.     Summary of
Significant Accounting Policies
Cash
and Cash Equivalents
Cash and cash equivalents include demand deposits
and highly liquid investments with an original maturity of three
months or less including time deposits of $27,122 and $41,430 at
June 30, 2000 and 2001, respectively. The amounts reflected
in these financial statements only reflect cash and cash
equivalents that are in accounts dedicated to PwC Consulting.
Cash transactions within most countries or regions, however, are
managed on a centralized basis in that country or region and
settled through "Amounts due to the PwC Network" or
"Amounts due from the PwC Network". Accordingly, these
financial statements do not include cash balances for PwC
Consulting in those countries or regions in which PwC Consulting
does not have a separate cash management function.
Fair
Value of Financial Instruments
With the exception of marketable securities, all
financial instruments, principally accounts receivable, unbilled
receivables, accounts payable and debt, are stated at historical
cost, which approximates fair value due generally to either
their short-term nature or the variable-rate interest terms of
these instruments. Marketable securities are recorded at fair
value.
Property
and Equipment, net
Property and equipment directly utilized by PwC
Consulting (other than facilities costs) are stated at
historical cost less accumulated depreciation. Depreciation is
computed using the straight-line method over the estimated
useful lives of the assets ranging from three to ten years.
Leasehold improvements are amortized on a straight-line basis
over the remaining useful life of the property or the remaining
term of the lease if shorter. The cost and accumulated
depreciation for property and equipment sold, retired, or
otherwise disposed of are relieved from the accounts, and
resulting gains or losses are reflected in income.
F-16
Table of Contents
PwC CONSULTING
(A Business Unit of the PricewaterhouseCoopers
Network of Firms)
NOTES TO THE COMBINED FINANCIAL
STATEMENTS — (Continued)
(In thousands, except share data)
The PwC Network allocates to PwC Consulting its
applicable portion of facilities costs incurred by the PwC
Network. See Note 4 for a discussion of allocated costs.
Capitalized
Software Costs
PwC Consulting capitalizes certain internal use
computer software costs, after technological feasibility has
been established, which are amortized using the straight-line
method over the economic useful lives of the related software,
not to exceed 5 years. The combined balance sheets include
in property and equipment, net capitalized computer software
costs of $40,239 and $45,768 and the corresponding accumulated
amortization of $8,477 and $18,485, as of June 30, 2000 and
2001, respectively. Amortization expense totals $1,864, $4,925
and $11,269 for the years ended June 30, 1999, 2000 and
2001, respectively.
Goodwill and Impairment of Long-Lived
Assets
The cost of acquired companies in excess of the
fair value of net assets acquired at acquisition date is
recorded as goodwill and amortized on a straight line basis over
its estimated useful life, ranging from five to ten years. For
the business combinations between C&L and PW firms accounted
for as a purchase, the excess of purchase price over the fair
value of the net assets acquired was approximately $150,000 and
was recorded as goodwill at the date of such transactions. See
Note 2 for a discussion of the business combinations between
Coopers & Lybrand and Price Waterhouse networks. The merger
in one additional country was consummated as of January 1,
2000, which resulted in merger-related goodwill of approximately
$52,000. These amounts are being amortized on a straight-line
basis over five years. The pro forma effect on income before
partner distributions and benefits, assuming the combination of
all Coopers & Lybrand and Price Waterhouse firms had
occurred as of July 1, 1999 would increase amortization
expense by approximately $10,000 and $5,000 for the years ended
June 30, 1999 and 2000, respectively.
Management assesses the impairment of goodwill
and long-lived assets whenever events or significant changes in
circumstances indicate that the carrying value may not be
recoverable. Factors that management considers important that
would cause an impairment review to be performed include
significant underperformance relative to historical results or
to forecasted operating results and significant negative
industry or economic trends. If management determines that the
carrying value of goodwill or long-lived assets may be
potentially impaired based on the existence of one or more of
the previously mentioned factors, the asset is reviewed for
recoverability by comparing the carrying amount of the asset to
the estimated undiscounted future cash flows expected to be
generated by the asset. If the undiscounted cash flows are not
sufficient to fully recover the value of the asset, management
recognizes an impairment loss to the extent that the carrying
value exceeds the fair value. Fair value is based on discounted
estimated future cash flows.
Investments
PwC Consulting investments comprise primarily
public corporate equity securities attributable to PwC
Consulting operations. At June 30, 2000 and 2001, all of
PwC Consulting's marketable securities are classified as
available for sale and included in short-term investments in the
accompanying combined balance sheets. Declines in fair value of
individual securities below their cost that are other than
temporary result in write-downs in the combined income statement
before partner distributions and benefits of the individual
securities to their fair value. Unrealized gains and losses on
these investments are included within other comprehensive income
in the accompanying combined statements of changes in PwC
Network investment and comprehensive income. The cost of
securities sold is determined on an average cost basis.
PwC Consulting also has certain other minority
investments in nonpublicly traded companies. These investments
are included in non-current investments in the accompanying
combined balance sheets and are
F-17
Table of Contents
PwC CONSULTING
(A Business Unit of the PricewaterhouseCoopers
Network of Firms)
NOTES TO THE COMBINED FINANCIAL
STATEMENTS — (Continued)
(In thousands, except share data)
carried at cost as PwC Consulting does not
exercise significant influence over the management of these
companies. PwC Consulting monitors these investments for
declines in value and when those declines are considered to be
other than temporary, the carrying value is reduced through a
charge to income. There were no impairment losses on investments
for the years ended June 30, 1999 and 2000. During the year
ended June 30, 2001, $4,403 is recorded as a loss in the
combined income statement before partner distributions and
benefits as a result of impairments to reduce the carrying value
of investments to PwC Consulting's estimate of fair value.
Provision
for Taxes
Income tax provisions are generally not required
in these financial statements as the firms in the PwC Consulting
Network are primarily in partnership form and the tax effects
accrue directly to its partners. For those limited firms whose
income tax is payable, the expenses associated with those taxes
is reflected in selling, general and administrative costs.
Revenue
Recognition
Revenues include all amounts billable to clients.
Revenues are principally recognized as services are provided by
partners and employees of PwC Consulting and subcontractors
working under the authority of PwC Consulting. Revenues are
recognized in the period in which services are rendered.
Reimbursements, including those relating to travel and other
out-of-pocket expenses, as well as subcontractor fees and
expenses are also included in revenues. The impact of revisions
to engagement revenues recognized to date from changes in
expected revenue is recorded in the period in which these
changes become known.
Losses on contracts are recognized during the
period in which the loss first becomes probable and reasonably
estimable. Contract losses are determined to be the amount by
which the estimated service costs of the contract exceed the
estimated total revenues that will be generated by the contract.
Unbilled receivables represent revenues for
services rendered and expenses incurred that have not yet been
billed.
PwC Consulting also derives revenues from
engagements with incentive-based contracts and other contracts
that condition fees on the ability to deliver certain defined
goals. Revenues from such engagements are insignificant and are
not recognized until a defined goal or milestone is met.
Revenues from computer hardware and software resales, software
licenses and related maintenance fees are not significant.
Cost
of Services
Cost of services includes employee compensation
and related benefits for client service staff, the costs of
their recruitment and continuing training, and an allocation of
information technology costs attributable to these staff. Costs
related to research and development activities are expensed as
incurred.
Selling,
General and Administrative Expenses
Selling, general and administrative expenses
include general and administrative costs incurred by the PwC
Network and allocated to PwC Consulting and costs incurred
directly by the various countries or regions within PwC
Consulting. Selling, general and administrative costs include
compensation and benefits for non-client service and practice
support personnel; infrastructure expenses including: rent,
depreciation and amortization; legal and professional insurance
costs; new business development activities; information
technology not attributable to client service staff; marketing,
advertising and other firmwide costs.
F-18
Table of Contents
PwC CONSULTING
(A Business Unit of the PricewaterhouseCoopers
Network of Firms)
NOTES TO THE COMBINED FINANCIAL
STATEMENTS — (Continued)
(In thousands, except share data)
Advertising
Costs
Advertising costs incurred are expensed in the
period in which the advertising takes place. Total advertising
expenses are $33,079, $10,585 and $22,123 for the years ended
June 30, 1999, 2000 and 2001, respectively.
Allocated
Costs and Partner Distributions
The PwC Network provides various services and
infrastructure to member firms in a country or region and on a
global basis. The costs of these services are allocated to PwC
Consulting on bases PwC Consulting management believes to be
reasonable. See Note 4 for a discussion of allocated costs.
Additionally, all of the PwC firms are either a partnership
where earnings are allocable to its partners and principals or a
corporation operated in a manner similar to that of a
partnership. Also, partnership distributions are not executive
compensation in the customary sense of that term because
partnership distributions are comprised of distributions of
current earnings. As a result, it is not practical to
differentiate the ownership components of distributions to
partners and shareholders from the compensation components of
such distributions. Accordingly, distributions and benefits for
services rendered by partners and shareholders have not been
reflected in the combined income statements before partner
distributions and benefits.
Earnings
per Share
PwC Consulting operates as a series of
partnerships and corporations. There is no single capital
structure upon which to calculate earnings per share
information. Accordingly, earnings per share information is not
presented.
Foreign
Currency Translation
Assets and liabilities of operations whose
functional currency is other than the United States dollar are
translated at year-end exchange rates. Revenues and expenses of
those operations are translated using average exchange rates
during the period. Foreign currency translation adjustments are
accumulated as a separate component of other comprehensive
income.
Credit
Risk
PwC Consulting provides professional services to
a diversified client base throughout the world. PwC Consulting
performs ongoing credit evaluations of its clients and generally
does not require collateral. Accounts receivables are reviewed
on a periodic basis and an allowance for bad debts is recorded
where such amounts are determined to be uncollectible. Due to
the large number of client accounts and the diversified client
base, across many industries and countries, management does not
believe that a significant concentration of credit risk loss
exists.
Use
of Estimates
The preparation of financial statements in
conformity with U.S. GAAP requires management to make
estimates and assumptions that affect the reported amounts of
assets and liabilities or the disclosure of contingent assets
and liabilities at the date of these combined financial
statements and reported revenues and expenses during the
reporting period. Actual results could differ from those
estimates.
F-19
Table of Contents
PwC CONSULTING
(A Business Unit of the PricewaterhouseCoopers
Network of Firms)
NOTES TO THE COMBINED FINANCIAL
STATEMENTS — (Continued)
(In thousands, except share data)
Accounting
Developments
In June 1998, the Financial Accounting
Standards Board ("FASB") issued Statement of Financial
Accounting Standard No. 133 ("SFAS 133"),
"Accounting for Derivative Instruments and Hedging
Activities" and was adopted by PwC Consulting on
July 1, 2000. This statement requires that an entity
recognize all derivatives as either assets or liabilities and
measure those instruments at fair value. The accounting for
changes in the fair value of a derivative instrument depends on
its intended use and the resulting designation. The adoption of
this statement did not have a material impact on these combined
financial statements as PwC Consulting does not have any
material derivative instruments.
In June 2001, the FASB approved Statements
of Financial Accounting Standards No. 141, "Business
Combinations" ("SFAS 141"), and
No. 142, "Goodwill and Other Intangible Assets"
("SFAS 142"), which are effective July 1,
2001 and July 1, 2002, respectively, for PwC Consulting.
SFAS 141 requires that the purchase method of accounting be
used for all business combinations initiated after June 30,
2001. Under SFAS 142, amortization of goodwill will cease.
In lieu of amortization, PwC Consulting will be required to
perform an initial impairment review of goodwill as of
July 1, 2002 and an annual impairment review thereafter.
PwC Consulting is in the process of studying the effects of the
application of SFAS 142 and cannot predict at this time
whether or not a material impairment charge will be recorded.
Goodwill amortization was $46,946, $54,911 and $57,007 for the
years ended June 30, 1999, 2000 and 2001, respectively.
In August 2001, the FASB issued Statement of
Financial Accounting Standard No. 144, "Accounting for
the Impairment or Disposal of Long-Lived Assets"
("SFAS 144"), which addresses financial
accounting and reporting for the impairment or disposal of
long-lived assets and supersedes SFAS No. 121,
"Accounting for the Impairment of Long-Lived Assets and for
Long-Lived Assets to be Disposed of," and the accounting
and reporting provisions of APB Opinion No. 30,
"Reporting the Results of Operations for a Disposal of a
Segment of a Business." SFAS 144 is effective for PwC
Consulting beginning July 1, 2002. PwC Consulting does not
expect that the adoption will have a significant impact on its
combined financial position and results of operations.
4.     Transactions
with the PwC Network
In the normal course of business, PwC Consulting
enters into engagements with other PwC Network business units.
Related party revenues include the billing for professional
services provided by PwC Consulting to other PwC Network
business units. The cost of the PwC Consulting services may
ultimately be charged to a third party client or may be to
support an internal infrastructure project. In addition, PwC
Consulting may use the professional services of other PwC
Network business units.
For the years ended June 30, 1999, 2000 and
2001, revenues includes approximately $160,100, $328,600 and
$240,500, respectively, related to professional services
provided to other PwC Network business units. Additionally, cost
of services includes $177,800, $173,100 and $177,500,
respectively, related to professional services received from
other PwC Network business units. These related party
transactions are settled within the "PwC Network
investment."
Internal
Costs and Expenses within the PwC Network
The PwC Network provides various services and
infrastructure to member firms in a country or region and on a
global basis to PwC Consulting including occupancy, technology
services, finance and planning, human resources, marketing and
business development, risk management and practice protection,
firm-wide management, and new product development. These service
and infrastructure costs are charged to the income statement
with a corresponding credit directly to the "PwC Network
investment" account, on the basis that
F-20
Table of Contents
PwC CONSULTING
(A Business Unit of the PricewaterhouseCoopers
Network of Firms)
NOTES TO THE COMBINED FINANCIAL
STATEMENTS — (Continued)
(In thousands, except share data)
cash generated by PwC Consulting is available to
the PwC Network for the settlement of commonly incurred
liabilities, acquisitions of common assets and distributions to
PwC Network partners. The methods of allocating these
centralized costs to PwC Consulting include relative revenues,
headcount, square footage or other bases. Total allocated costs
approximate $815,000, $1,044,000 and $876,000 for the years
ended June 30, 1999, 2000 and 2001, respectively, and are
included in the accompanying combined income statements before
partner distributions and benefits as follows: cost of services
$131,000, $163,000 and $138,000, selling, general and
administrative expenses of $652,000, $835,000 and $682,000 and
net interest expense of $32,000, $46,000 and $56,000,
respectively, for the years ended June 30, 1999, 2000 and
2001.
Cash receipts which PwC Consulting generates are
collected by the PwC Network in the majority of countries or
regions. Such cash is generally managed via common cash pools in
each country or region for all lines of service within the PwC
Network. Cash generated by PwC Consulting that is managed by the
PwC Network has not been reflected in these combined financial
statements.
Costs
and Expenses with Employees and Allocated Debt
PwC Consulting funds its operations from
internally generated cash flows, funds provided by other
businesses of the firms in the PwC Network and bank borrowings,
loans, or other debt, including bank borrowings, loans, or other
debt of the PwC Network. In most countries or regions, a firm in
the PwC Network incurs and settles accounts payable on a
centralized basis and allocates a portion of its short-term and
long-term funding to support the operations of PwC Consulting.
As a result, certain accounts payable and accrued liabilities
are allocated based on the ratio of PwC Consulting non-employee
expenses to total non-employee expenses for these PwC Network
firms. Short-term and long-term debt are allocated to PwC
Consulting based on the ratio of PwC Consulting accounts
receivable and unbilled receivables relative to total accounts
receivable and unbilled receivables for these PwC Network firms.
Interest is allocated to debt but is not allocated to other
allocated liabilities, such as accounts payable, accrued
liabilities, accrued payroll and related benefits. Interest
relating to allocated debt is allocated on a monthly basis using
the ratio of PwC Consulting revenues to total revenues of the
PwC Network firms. These allocated amounts have been included in
"Amounts due to the PwC Network" in the accompanying
combined balance sheets and are comprised of:
June 30,
2000
2001
Accounts payable and accrued liabilities
$
321,441
$
290,503
Accrued payroll and related benefits
250,544
307,961
Debt
513,458
420,587
Amounts due to the PwC Network
$
1,085,443
$
1,019,051
5.  Investments
The following is a summary of securities
available for sale:
Unrealized
Unrealized
Fair
Cost
Gains
Losses
Value
June 30, 2000
$
33,545
$
11,260
$
(631
)
$
44,174
June 30, 2001
$
2,589
$
705
$
(143
)
$
3,151
F-21
Table of Contents
PwC CONSULTING
(A Business Unit of the PricewaterhouseCoopers
Network of Firms)
NOTES TO THE COMBINED FINANCIAL
STATEMENTS — (Continued)
(In thousands, except share data)
Investments held as available for sale are
recorded within short-term investments. There were no realized
gains or losses in fiscal 1999. In fiscal year 2000, PwC
Consulting recorded gross realized gains of $11,619 and no
losses. For the year ended June 30, 2001, gross realized
gains of $10,629 and gross realized losses of $23,016 on the
disposal of investments are recorded in the income statement
before partner distributions and benefits as other expense.
PwC Consulting also has certain other minority
investments in non-publicly traded companies. These
non-marketable securities are carried at cost and recorded as
non-current investments in the combined balance sheets. For the
year ended June 30, 2001, gross realized gains of $1,359
and gross realized losses of $4,591 on disposal and impairment
of investments are recorded in the combined income statement
before partner distributions and benefits as other expense.
6.  Property and Equipment,
net
Property and equipment, net of accumulated
depreciation, consists of the following:
June 30,
2000
2001
Equipment
$
156,648
$
189,287
Furniture
21,613
36,095
Property and leasehold improvements
22,161
45,568
Less accumulated depreciation
(101,325
)
(133,331
)
Property and equipment, net
$
99,097
$
137,619
Depreciation expense was $40,438, $41,510 and
$64,645 for the years ended June 30, 1999, 2000 and 2001,
respectively.
7.  Goodwill, net
Goodwill, net of accumulated amortization,
consists of the following:
June 30,
2000
2001
Goodwill
$
333,695
$
328,487
Less accumulated amortization
(119,111
)
(177,424
)
Goodwill, net
$
214,584
$
151,063
8.  Accrued Payroll and Related
Benefits
Accrued payroll and related benefits consists of
the following:
June 30,
2000
2001
Accrued payroll and other employee benefits
$
18,318
$
19,612
Accrued bonuses
48,835
59,809
Accrued vacation
20,054
23,944
Total accrued payroll and related benefits
$
87,207
$
103,365
F-22
Table of Contents
PwC CONSULTING
(A Business Unit of the PricewaterhouseCoopers
Network of Firms)
NOTES TO THE COMBINED FINANCIAL
STATEMENTS — (Continued)
(In thousands, except share data)
PwC Consulting has various performance driven
bonus plans whereby employees are awarded cash bonuses based,
generally, upon the performance of their country or region as
well as their own individual performance against predefined
goals. Bonuses are generally earned and recognized within a
given fiscal year and paid in the following fiscal year. Payroll
and related benefits for partners and shareholders have not been
reflected in the combined income statements before partner
distributions and benefits.
9.     Short-Term
Bank Borrowings and Long-Term Debt
Short-term bank borrowings and long-term debt
relate to those countries in which PwC Consulting operates in a
separate legal form within the applicable country or region, and
consist of the following:
June 30,
2000
2001
Short-term bank borrowings
Credit line
$
44,340
$
—
Bank borrowings
30,026
29,223
Other
453
—
Total short-term bank borrowings
$
74,819
$
29,223
Long-term debt
Bank loans
$
51,242
$
53,219
Other
1,660
3,175
Less current portion
(11,814
)
(6,506
)
Total long-term debt
$
41,088
$
49,888
Annual maturities of long-term debt of PwC
Consulting for the next five years ending June 30 are as
follows:
2002
$
6,506
2003
11,493
2004
10,755
2005
15,402
2006
10,533
Thereafter
1,705
Total
$
56,394
At June 30, 2000, PwC Consulting had an
outstanding revolving credit agreement in Japan that provided
for borrowings up to $47,000 with interest rates determined at
the time of the borrowing. Interest rates ranged from .81% to
..85% and 1.04% to 1.38% for the year ended June 30, 1999
and 2000, respectively. The weighted average interest rate at
June 30, 1999 and 2000 was .83% and 1.09%, respectively.
The available credit was $22,895 and $2,660 as of June 30,
1999 and 2000, respectively. During 2001, this revolving credit
agreement matured and was replaced with long-term financing.
Short-term bank borrowings consists of
uncollateralized arrangements with interest rates which ranged
from 3.70% to 9.75%, 6.00% to 12.75%, and 5.00% to 23.00% for
the years ended June 30, 1999, 2000 and 2001, respectively.
The weighted average interest rates as of June 30, 1999,
2000 and 2001 were 6.71%, 7.51% and 7.54%, respectively.
F-23
Table of Contents
PwC CONSULTING
(A Business Unit of the PricewaterhouseCoopers
Network of Firms)
NOTES TO THE COMBINED FINANCIAL
STATEMENTS — (Continued)
(In thousands, except share data)
Long-term bank loans consists of uncollateralized
loans with interest rates that ranged from 3.70% to 9.75% for
the year ended June 30, 1999 and a weighted average rate of
6.84%. Rates for the year ended June 30, 2000 ranged from
4.13% to 9.75% with a weighted average rate of 5.50%. Rates for
the year ended June 30, 2001 ranged from 4.97% to 13.40%
with a weighted average rate of 7.17% at June 30, 2001.
Other debt at June 30, 2000 consists
primarily of mortgage notes with interest rates ranging from
3.50% to 4.50% and a weighted average interest rate of 4.24%.
10.     Commitments
and Contingencies
Litigation
The PwC Network as well as PwC Consulting is
involved in litigation arising in the ordinary course of
business, some of which relate to PwC Consulting operations.
Some of the actions and proceedings have been brought on behalf
of various claimants and certain of these claimants seek damages
of unspecified amounts. The firms within the PwC Network have
established a series of captive insurance companies to provide
for its self-insurance needs. The insurance provided by these
captive insurance companies covers, on a firm-by-firm basis,
liability relating to professional services performed by
PwC Consulting as well as professional services performed
by all other business units within the PwC Network. As part of
the Separation (as described in Note 13), a portion of each
firm's total professional liability insurance coverage has
been designated to cover liability relating to professional
services provided by PwC Consulting. Management believes that
any potential losses will not exceed the designated amounts
covered by the captive insurance companies. Following the
Separation, the Company intends to replace the insurance
coverage provided by these captive insurance companies with a
combination of self-insurance and professional liability
insurance from commercial sources. While the ultimate outcome of
this litigation cannot be predicted with certainty, it is the
opinion of management that the resolution of such litigation
will not have a material adverse effect on the combined balance
sheet, income statement before partner distributions and
benefits or cash flow.
Leases
The firms within the PwC Network have obligations
under long-term, noncancelable, operating lease agreements,
principally for office space and data processing equipment,
including personal computers, some of which relate to PwC
Consulting operations. Certain agreements are subject to
periodic escalation charges for increases in real estate taxes
and other charges. Renewal options are available on the majority
of the office leases. Facility leases for office space utilized
exclusively by PwC Consulting represent commitments of PwC
Consulting.
Minimum rental commitments on PwC Consulting
specific facilities, net of minimum sublease rental income,
under noncancelable leases for the five succeeding years ending
June 30 and in the aggregate thereafter are set forth below:
2002
$
52,826
2003
38,415
2004
31,723
2005
30,138
2006
25,866
Thereafter
94,027
Total
$
272,995
F-24
Table of Contents
PwC CONSULTING
(A Business Unit of the PricewaterhouseCoopers
Network of Firms)
NOTES TO THE COMBINED FINANCIAL
STATEMENTS — (Continued)
(In thousands, except share data)
Rent expense, including allocated amounts,
approximates $144,200, $167,200 and $167,900 for the years ended
June 30, 1999, 2000 and 2001, respectively.
11.     Employee
Benefit Plans
Defined
Benefit Retirement and Postretirement Benefit
Plans
Historically, all of the employees of the various
firms in the PwC Network, including those in PwC Consulting,
participated in various benefit and retirement plans sponsored
by the firms. The costs with respect to these plans are
allocated among all of the lines of service within the PwC
Network and PwC Consulting. For purposes of these combined
financial statements, the firms within the PwC Network retain
and therefore do not allocate the assets and liabilities
relating to these plans, except for certain plans with
liabilities of approximately $3,000 and $4,700 as of
June 30, 2000 and 2001, respectively. The cost allocated to
PwC Consulting for defined benefit plans included within cost of
services is approximately $35,000, $41,000 and $38,000 for the
years ended June 30, 1999, 2000 and 2001, respectively.
Additionally, the firms within the PwC Network
have unfunded postretirement benefit plans that provide medical
and life insurance for eligible retirees, employees and
dependents, as well as postemployment benefits that include
severance benefits upon involuntary separation from the PwC
Network. The PwC Network has retained these plans and therefore,
for purposes of these combined financial statements, the assets
and liabilities of these plans are not allocated to PwC
Consulting, except for certain postretirement benefit plans with
current liabilities of approximately $400 and $300 and
non-current liabilities of $30,500 and $44,900 at June 30,
2000 and 2001, respectively. For the year ended June 30,
1999, 2000 and 2001, PwC Consulting recognized approximately
$5,700, $9,100 and $13,400, respectively, of expense related to
postretirement benefits.
Defined
Contribution Plans
The PwC Network firm in the United States
sponsors savings plans (the "Savings Plans") that are
available to all United States employees who meet certain
eligibility requirements. The Savings Plans are 401(k) based
plans that allow employees to contribute up to the maximum limit
established by law ($10.0, $10.5 and $10.5 for calendar years
1999, 2000 and 2001, respectively). The PwC Network provides
matching contributions under the terms of the plans.
Employees in the PwC Network firms outside the
United States are covered by various defined contribution plans,
the majority of which are government sponsored. These plans
include both postretirement and savings plan benefits.
The costs allocated to PwC Consulting for defined
contribution plans included in compensation was approximately
$31,300, $45,000 and $41,500 for the years ended June 30,
1999, 2000 and 2001, respectively.
12.     Segment
Reporting
Operating segments are defined as components of
an enterprise for which separate financial information is
regularly available and evaluated by the chief operating
decision maker, or decision making group, in deciding how to
allocate resources and in assessing performance. PwC
Consulting's chief operating decision making group is the
PwC Consulting Global Executive Committee, which is chaired by
the PwC Consulting Chief Executive Officer.
PwC Consulting's reportable operating
segments are the following four geographic units: the Americas,
comprised of the United States, Canada and Mexico; EMEA,
comprised of Europe, the Middle East and
F-25
Table of Contents
PwC CONSULTING
(A Business Unit of the PricewaterhouseCoopers
Network of Firms)
NOTES TO THE COMBINED FINANCIAL
STATEMENTS — (Continued)
(In thousands, except share data)
Africa; Asia Pacific, principally comprised of
Japan, Australia and East Asia; and SOACAT, principally
comprised of Brazil, Argentina, Chile and Columbia. These
geographical units are managed separately and represent
countries in which PwC Consulting serves clients in that part of
the world.
PwC Consulting evaluates performance of its
operating segments based on "contribution to profit,"
a measure that excludes certain global and other costs from
operating income. In general, the accounting policies for the
operating segments are the same as those described in the
summary of significant accounting policies, except for those
noted and shown in the reconciliations below. Expenses are
allocated to PwC Consulting by the PwC Network pursuant to the
policies in Note 4. There are no material inter-segment
revenues.
Net Revenues*
Year Ended June 30,
1999
2000
2001
Americas
$
2,758,050
$
3,253,338
$
3,116,301
EMEA
1,824,343
2,004,983
2,120,157
Asia Pacific
314,450
425,308
497,894
SOACAT
111,383
131,765
112,147
$
5,008,226
$
5,815,394
$
5,846,499
*
Revenues net of reimbursables and subcontractor
    costs.
Contribution to Profit
Year Ended June 30,
1999
2000
2001
Americas
$
547,236
$
773,970
$
504,821
EMEA
418,512
438,713
458,131
Asia Pacific
21,854
36,809
41,582
SOACAT
15,996
15,676
14,496
$
1,003,598
$
1,265,168
$
1,019,030
Depreciation & Amortization
Year Ended June 30,
1999
2000
2001
Americas
$
11,778
$
25,340
$
29,864
EMEA
19,554
21,905
39,887
Asia Pacific
6,105
8,034
9,137
SOACAT
1,249
741
613
$
38,686
$
56,020
$
79,501
F-26
Table of Contents
PwC CONSULTING
(A Business Unit of the PricewaterhouseCoopers
Network of Firms)
NOTES TO THE COMBINED FINANCIAL
STATEMENTS — (Continued)
(In thousands, except share data)
Interest Expense
Year Ended June 30,
1999
2000
2001
Americas
$
33,389
$
37,265
$
39,615
EMEA
32,198
37,339
38,214
Asia Pacific
3,245
5,222
6,904
SOACAT
—
1,152
2,124
$
68,832
$
80,978
$
86,857
Year Ended June 30,
1999
2000
2001
Segment net revenues
$
5,008,226
$
5,815,394
$
5,846,499
Global adjustments
(47,218
)
(50,941
)
23,656
Reclassification of allowance for bad debts
56,803
25,216
94,419
Reimbursables and subcontractor costs
1,212,798
1,341,290
1,516,429
Combined revenues
$
6,230,609
$
7,130,959
$
7,481,003
Segment contribution to profit
$
1,003,598
$
1,265,168
$
1,019,030
Global costs
(331,302
)
(456,565
)
(382,836
)
Global PwC Network allocations
(128,000
)
(167,000
)
(182,000
)
Other adjustments
53,438
(3,083
)
41,608
Combined operating income
$
597,734
$
638,520
$
495,802
Global adjustments represent internal reconciling
items related to revenues between the PwC Network and PwC
Consulting which have not been allocated to the operating
segments. For internal reporting purposes, the allowance for bad
debts is included in revenues. This differs from combined
revenues as the allowance for bad debts is included in selling,
general and administrative expenses.
Global costs represent global PwC Consulting
costs that have not been allocated to the operating segments.
These include global training, service and support staff, and
business development activities. Global PwC Network allocations
represent allocations which are not included in the calculation
of contribution profit reviewed by the chief operating decision
making group. These allocations include global financial
management costs and global marketing costs. Other adjustments
primarily represent adjustments to conform the internal measure
of contribution to profit to U.S. GAAP.
With respect to depreciation and amortization,
the difference between the segment totals and the combined
totals relates to the amortization of goodwill that has not been
allocated to the operating segments. Goodwill allocated to the
operating segments consists of acquisitions initiated by
countries or regions of PwC Consulting. Goodwill not
allocated to the operating segments consists primarily of the
goodwill associated with the merger of firms in the Coopers and
Lybrand and Price Waterhouse networks as discussed in
Note 3.
With respect to segment interest expense, the
amount allocated to the operating segments is an imputed amount.
It is used to measure the operating segment's ability to
manage accounts receivable, based primarily on accounts
receivable outstanding for the operating segment. This differs
from the combined interest expense
F-27
Table of Contents
PwC CONSULTING
(A Business Unit of the PricewaterhouseCoopers
Network of Firms)
NOTES TO THE COMBINED FINANCIAL
STATEMENTS — (Continued)
(In thousands, except share data)
which represents the interest expense allocated
to PwC Consulting by the PwC Network based on short-term and
long-term debt as discussed in Note 4.
PwC Consulting conducts business in two countries
that individually comprise greater than 10% of revenues and
long-lived assets within the last three years. As presented in
the net revenue by segment table above, revenues net of
reimbursables and subcontractor costs for the United States were
$2,541,900, $2,993,083 and $2,895,243 and for the United Kingdom
were $749,295, $771,531 and $732,144 for the years ended
June 30, 1999, 2000 and 2001 respectively. Long-lived
assets, which represent property and equipment, net of
accumulated depreciation for the United States were $36,855,
$41,359 and $51,616 as of June 30, 1999, 2000 and 2001,
respectively. For the United Kingdom, long-lived assets were
$1,759 and $15,821 as of June 30, 2000 and 2001. Long-lived
assets were not allocated to the United Kingdom in 1999.
13.     Subsequent
Events
Effective July 1, 2001, on a
country-by-country or regional basis, the PwC Network agreed to
certain arrangements relating to the provision of various
services to PwC Consulting by the PwC Network which were
historically performed on centralized basis for the benefit of
all PwC Network business units. The charges for these services
are allocated according to use or consumption based on actual
direct costs, where available, plus overhead costs. These
agreements have no impact on the combined financial position,
results of operations, or cash flows of PwC Consulting for the
three years ended June 30, 2001.
On January 31, 2002, the PwC Network
announced its intention to separate PwC Consulting into a
separate company called Monday Ltd, formerly known as PwCC
Limited (the "Company"). Firms in the PwC Network have
elected to transfer their businesses to the Company or its
subsidiaries in exchange for equity of the Company or its
subsidiaries, as described below pursuant to rollup agreements.
We refer to this transfer and exchange and the related
transactions as the "Separation." The Company
anticipates making an initial public offering (the
"Offering") in the summer of 2002, which will consist
of a sale by some of the firms in the PwC Network and their
partners or shareholders, of all or a portion of the
Company's Class A common shares owned by these firms
and will include an issuance of Premium Equity Participating
Security Units by the Company, Monday SCA and Monday SCA's
indirect wholly-owned finance subsidiary, Monday Finance SA.
The Company is a Bermuda corporation formed on
March 27, 2002, and currently is owned by Codan Trust
Company Limited (the "Trustee"), as trustee of The
PwCC Limited Purpose Trust, a special purpose trust that has
been established under the laws of Bermuda. The Company will
have no material activities, assets or liabilities until the
completion of the Separation. In connection with the formation
of the Company, 60,000 Class A common shares, par value
U.S.$1.00 per share, were issued to the Trustee. Prior to the
Separation, the Company's memorandum of association will be
amended to provide for the issuance of Class A common
shares to firms in the PwC Network and their partners or
shareholders that transfer their management consulting and
technology services businesses to the Company as well as
Class X common shares and preferred stock purchase rights.
Class X common shares will have full voting power but will
have no economic rights, such as rights to dividends or
distributions by the Company. Class X common shares
initially will be held by some of the partners of PwC Consulting
that become employees of the Company or one of its subsidiaries
and hold equity in a subsidiary of the Company. Class X common
shares may also be held by some of the partners or shareholders
of the PricewaterhouseCoopers firms that receive equity in a
subsidiary of the Company as part of the Separation in the event
they do not fully liquidate their holdings in the Company and
its subsidiaries as a result of the Offering. The equity in one
of these subsidiaries is redeemable at the shareholder's
option for cash or, at the option of the subsidiary, for
Class A common shares on a one-for-one
F-28
Table of Contents
PwC CONSULTING
(A Business Unit of the PricewaterhouseCoopers
Network of Firms)
NOTES TO THE COMBINED FINANCIAL
STATEMENTS — (Continued)
(In thousands, except share data)
basis. One other subsidiary will issue
exchangeable shares that are exchangeable into Class A
common shares on a one-for-one basis at the election of a
shareholder.
The Company also expects to adopt a shareholder
rights plan prior to the Offering. The delivery of a
Class A common share or a Class X common share also
will constitute the delivery of a preferred stock purchase right
associated with such share. These rights may have anti-takeover
effects in that the existence of the rights may defer a
potential acquiror from making a takeover proposal or a tender
offer.
Prior to the Separation, the Company or its
subsidiaries will enter into a number of agreements relating to
some business processing and infrastructure services that the
PwC Network will provide to the Company after the Separation.
These agreements will take effect following the Separation for
periods up to three years. In general, the Company will be
provided these services at the cost incurred by the various
firms in the PwC Network in providing these services, which the
Company believes is consistent with the bases upon which costs
have been allocated to PwC Consulting since July 1, 2001.
Under these services agreements, the firms in the
PwC Network will provide PwC Consulting the same or similar
services PwC Consulting receives prior to the Separation. The
types of services the Company will continue to receive include
infrastructure, knowledge management, human resources, training,
finance and accounting, and other services, except as described
below. The Company may also receive financial reporting services
from some of these firms. In general, the Company will be able
to terminate its agreements with the PwC Network on relatively
short notice, but may face termination costs in some
circumstances. Costs that have been allocated to the Company in
the past that will no longer be charged following the Separation
include costs associated with firm-wide management, risk
management and practice protection, marketing and business
development, interest expense and taxes.
F-29
Table of Contents
[LOGO]
Table of Contents
PART II
INFORMATION NOT REQUIRED IN
PROSPECTUS
Item 13.     Other
Expenses of Issuance and Distribution.
The following table sets forth the fees and
expenses to be paid in connection with the issuance and
distribution for the securities being registered hereunder.
Except for the SEC registration fee, the NASD fee and the NYSE
fee, all amounts are estimates. Most of these fees and expenses
are being paid for by the selling shareholders for the
concurrent Class A common share offering.
Description
Amount
Securities and Exchange Commission registration
    fee
$
New York Stock Exchange listing fee
National Association of Securities Dealers, Inc.
    filing fee
Legal fees and expenses
Accounting fees and expenses
Printing and engraving fees and expenses
Blue Sky fees and expenses
Transfer Agent fees and expenses
Miscellaneous expenses
Total
$
Item 14.     Indemnification
of Directors and Officers.
The bye-laws of Monday Ltd provide for
indemnification of the Registrant's officers and directors
against all liabilities, loss, damage or expense incurred or
suffered by such party as an officer or director of Monday Ltd.
This indemnification shall not extend to any matter which would
render it void pursuant to the Companies Act 1981 of Bermuda.
The Companies Act provides that a Bermuda company
may indemnify its directors and officers in respect of any loss
arising or liability attaching to them as a result of any
negligence, default, breach of duty or breach of trust of which
they may be guilty in relation to the company in question.
However, the Companies Act also provides that any provision,
whether contained in the company's bye-laws or in a
contract or arrangement between the company and the director or
officer, indemnifying a director or officer against any
liability which would attach to him in respect of his fraud or
dishonesty will be void.
The directors and officers of Monday Ltd are
covered by directors' and officers' insurance policies
maintained by Monday Ltd.
Item 15.     Recent
Sales of Unregistered Securities.
Monday Ltd was incorporated under the laws of
Bermuda under the name PwCC Limited on March 27, 2002. Its
name was changed to Monday Ltd on June 10, 2002. In
connection with our separation from the PricewaterhouseCoopers
network of firms, Monday Ltd and some of its subsidiaries expect
to issue equity to some of the firms in the
PricewaterhouseCoopers network and some of their partners and
shareholders, including our partners, in consideration of their
transfer of management consulting and technology services
businesses to us, Monday SCA or one of Monday SCA's
subsidiaries. A list of the PricewaterhouseCoopers firms or, in
some cases, their partners and shareholders, and the number of
Class A common shares, Class X common shares, Monday
SCA Class I common shares or shares of one of
Monday SCA's subsidiaries they have received or will
receive is set forth on Exhibit 99.2 to this registration
statement. We have also indicated the date or expected date and
type of consideration paid or contributed or to be paid or
contributed for the issuance of these securities. Some of the
shares issued or to be issued to the PricewaterhouseCoopers
firms are expected to be transferred to our partners in
connection with their withdrawal from these firms. We also
II-1
Table of Contents
expect to issue, on or immediately prior to the
closing of the concurrent offerings,
approximately   million Class A common shares to
holders of Monday SCA Class I common shares in exchange for
an equal number of their Monday SCA Class I common
Class A common shares, which shares will then be sold in
the concurrent Class A common shares offering. These
issuances were or will be exempt from registration under the
Securities Act of 1933, as amended, pursuant to
Section 4(2) thereof because such issuances did not or will
not involve any public offering of securities.
Item 16.     Exhibits
and Financial Statement Schedules.
(a) Exhibits:
The following exhibits are filed pursuant to
Item 601 of Regulation S-K.
Exhibit
No.
Description
1.1
Form of Underwriting Agreement
2.1
Form of Monday Ltd Rollup Agreement*
2.2
Form of Monday SCA Rollup Agreement*
3.1
Memorandum of Association of Monday Ltd to be in
    effect as of the closing of this offering*
3.2
Bye-laws of Monday Ltd to be in effect as of the
    closing of this offering*
3.3
Constitution of Monday Finance SA
3.4
Articles of Incorporation of Monday SCA to be in
    effect as of the closing of this offering**
4.1
Specimen Class A common share certificate
4.2
Form of Rights Agreement*
4.3
Specimen PEPS Unit certificate
4.4
Form of Indenture among Monday Finance SA,
    Monday SCA, as guarantor, and Bank of New York, as
    trustee, relating to the senior notes due 2008 of Monday Finance
    SA
4.5
Form of Purchase Contract Agreement
4.6
Form of Pledge Agreement
4.7
Form of Senior Note (Included in Exhibit 4.4)
4.8
Form of PEPS Unit (Included in Exhibit 4.5)
4.10
Form of Treasury PEPS Unit (Included in
    Exhibit 4.5)
4.11
Form of Remarketing Agreement
5.1
Opinion of Conyers Dill & Pearman re legality
    of the PEPS Units being registered
5.2
Opinion of Linklaters
9.1
Form of Monday Ltd Voting Agreement*
10.1
Form of Rollup Agreements (filed as
    Exhibits 2.1 and 2.2 hereto)
10.2
[reserved]
10.3
2003 Share Incentive Plan*
10.4
2003 Non-Management Share Plan
10.5
[reserved]
10.6
Form of Redemption and Non-Competition Agreement*
10.7
Form of Transition Services Agreement*
10.8
Form of Shareholders Agreement*
10.9
Form of Assignment and Assumption Agreement*
10.10
Form of Sublease Agreement*
10.11
Form of Master License Agreement*
10.12
Form of Underwriting Agreement for the concurrent
    Class A common shares offering***
10.13
Form of Monday SCA Transfer Rights Agreement*
10.14
Executive Agreement for Gregory D. Brenneman*
10.15
Executive Agreement for Thomas C. O'Neill*
II-2
Table of Contents
Exhibit
No.
Description
10.16
Executive Agreement for Willard W. Brittain*
10.17
Executive Agreement for Michael S. Collins*
10.18
Executive Agreement for David V. Dockray*
10.19
Executive Agreement for Frank S. Sowinski*
10.20
Monday Consulting US, Inc. Deferred Compensation
    Plan*
12.1
Statement of computation of ratio of earnings to
    fixed charges****
21.1
List of Subsidiaries of Monday Ltd
23.1
Consent of Deloitte & Touche LLP****
24.1
Power of Attorney (included on signature page to
    the Registration Statement)
25
Form T-1 Statement of Eligibility under the
    Trust Indenture Act of 1939 of The Bank of New York, as Trustee
    under the Indenture
99.1
[reserved]
99.2
List of PricewaterhouseCoopers firms, Partners
    and Shareholders and Amount of Equity Received*
*
Incorporated by reference from the exhibit of the
    same number contained in Monday Ltd's Registration
    Statement on Form S-1 (Registration No. 333-87408) as
    filed with the Commission.
**
Incorporated by reference from Exhibit 10.5
    contained in Monday Ltd's Registration Statement on
    Form S-1 (Registration No. 333-87408) as filed with
    the Commission.
***
Incorporated by reference from Exhibit 1.1
    contained in Monday Ltd's Registration Statement on
    Form S-1 (Registration No. 333-87408) as filed with
    the Commission.
****
Filed herewith.
Item 17.     Undertakings.
(a) 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
underwriter to permit prompt delivery to each purchaser.
(b) 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 foregoing provisions, or otherwise, the
Registrant has been advised that in the opinion of the SEC, such
indemnification is against public policy as expressed in the 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 Act and will be governed by the final adjudication of such
issue.
(c) The undersigned Registrant hereby
undertakes that:
(1) For purpose of determining any liability
    under the Securities Act of 1933, the information omitted from
    the form of prospectus filed as part of this registration
    statement in reliance upon Rule 430A and contained in a
    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 part of this registration statement as
    of the time it was declared effective.
(2) For the purpose of determining any
    liability under the Securities Act of 1933, 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-3
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities
Act of 1933, the registrant has duly caused this registration
statement to be signed on its behalf by the undersigned, thereto
duly authorized, in the city of New York, State of New York, on
July 3, 2002.
MONDAY LTD
By:
/s/ GREGORY D. BRENNEMAN
Gregory D. Brenneman
President and Chief Executive Officer
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each
person whose signature appears below hereby constitutes and
appoints Ronald B. Hauben his or her true and lawful
attorneys-in-fact and agents with full power of substitution and
resubstitution, for him or her and in his or her name, place and
stead, any and all capacities, to sign any and all amendments,
including post-effective amendments, of and supplements to this
registration statement, or any related registration statement
filed pursuant to Rule 462(b) under the Securities Act of
1933, and to file the same with all exhibits thereto and other
documents in connection therewith, with the SEC, granting unto
such attorneys-in-fact and agents full power and authority to do
and perform each and every act and thing requisite and necessary
to be done in and about the premises, to all intents and
purposes and as fully as they might or could do in person,
hereby ratifying and confirming all that such attorneys-in-fact
and agents, or his or her substitute, may lawfully do or cause
to be done by virtue hereof.
Pursuant to the requirements of the Securities
Act of 1933, this registration statement has been signed by the
following persons in the capacities and on the date indicated.
Signature
Title
Date
/s/ GREGORY D. BRENNEMAN
Gregory D. Brenneman
President and Chief Executive Officer (Principal
    Executive Officer)
July 3, 2002
/s/ J. FRANK BROWN
J. Frank Brown
Director
July 3, 2002
/s/ JON F. DANSKI
Jon F. Danski
Chief Accounting Officer
(Principal Accounting Officer)
July 3, 2002
/s/ THOMAS A. LEIPZIG
Thomas A. Leipzig
Director
July 3, 2002
/s/ THOMAS CHARLES O'NEILL
Thomas Charles O'Neill
Chairman of the Board of Directors
July 3, 2002
/s/ FRANK S. SOWINSKI
Frank S. Sowinski
Chief Financial Officer
(Principal Financial Officer)
July 3, 2002
MONDAY LTD
Authorized Representative in the United States
By:
/s/ RONALD B. HAUBEN
Ronald B. Hauben
General Counsel and Corporate Secretary
II-4
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities
Act of 1933, the registrant has duly caused this registration
statement to be signed on its behalf by the undersigned, thereto
duly authorized, in the city of New York, State of New York, on
July 3, 2002.
MONDAY SCA
BY: MONDAY LTD.
ITS GENERAL PARTNER
By:
/s/ GREGORY D. BRENNEMAN
Gregory D. Brenneman
President and Chief Executive Officer
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each
person whose signature appears below hereby constitutes and
appoints Ronald B. Hauben his or her true and lawful
attorneys-in-fact and agents with full power of substitution and
resubstitution, for him or her and in his or her name, place and
stead, any and all capacities, to sign any and all amendments,
including post-effective amendments, of and supplements to this
registration statement, or any related registration statement
filed pursuant to Rule 462(b) under the Securities Act of
1933, and to file the same with all exhibits thereto and other
documents in connection therewith, with the SEC, granting unto
such attorneys-in-fact and agents full power and authority to do
and perform each and every act and thing requisite and necessary
to be done in and about the premises, to all intents and
purposes and as fully as they might or could do in person,
hereby ratifying and confirming all that such attorneys-in-fact
and agents, or his or her substitute, may lawfully do or cause
to be done by virtue hereof.
Pursuant to the requirements of the Securities
Act of 1933, this registration statement has been signed by the
following persons in the capacities and on the date indicated.
Signature
Title
Date
/s/ GREGORY D. BRENNEMAN
Gregory D. Brenneman
President and Chief Executive Officer (Principal
    Executive Officer)
July 3, 2002
/s/ J. FRANK BROWN
J. Frank Brown
Director
July 3, 2002
/s/ JON F. DANSKI
Jon F. Danski
Chief Accounting Officer
(Principal Accounting Officer)
July 3, 2002
/s/ THOMAS A. LEIPZIG
Thomas A. Leipzig
Director
July 3, 2002
/s/ THOMAS CHARLES O'NEILL
Thomas Charles O'Neill
Chairman of the Board of Directors
July 3, 2002
/s/ FRANK S. SOWINSKI
Frank S. Sowinski
Chief Financial Officer
(Principal Financial Officer)
July 3, 2002
MONDAY SCA
BY: MONDAY LTD.
ITS GENERAL PARTNER
Authorized Representative in the United States
By:
/s/ RONALD B. HAUBEN
Ronald B. Hauben
General Counsel and Corporate Secretary
II-5
Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities
Act of 1933, the registrant has duly caused this registration
statement to be signed on its behalf by the undersigned, thereto
duly authorized, in the city of New York, State of New York, on
July 3, 2002.
MONDAY FINANCE SA
By:
/s/ GREGORY D. BRENNEMAN
Gregory D. Brenneman
President and Chief Executive Officer
POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each
person whose signature appears below hereby constitutes and
appoints Ronald B. Hauben his or her true and lawful
attorneys-in-fact and agents with full power of substitution and
resubstitution, for him or her and in his or her name, place and
stead, any and all capacities, to sign any and all amendments,
including post-effective amendments, of and supplements to this
registration statement, or any related registration statement
filed pursuant to Rule 462(b) under the Securities Act of
1933, and to file the same with all exhibits thereto and other
documents in connection therewith, with the SEC, granting unto
such attorneys-in-fact and agents full power and authority to do
and perform each and every act and thing requisite and necessary
to be done in and about the premises, to all intents and
purposes and as fully as they might or could do in person,
hereby ratifying and confirming all that such attorneys-in-fact
and agents, or his or her substitute, may lawfully do or cause
to be done by virtue hereof.
Pursuant to the requirements of the Securities
Act of 1933, this registration statement has been signed by the
following persons in the capacities and on the date indicated.
Signature
Title
Date
/s/ GREGORY D. BRENNEMAN
Gregory D. Brenneman
President and Chief Executive Officer (Principal
    Executive Officer)
July 3, 2002
/s/ J. FRANK BROWN
J. Frank Brown
Director
July 3, 2002
/s/ JON F. DANSKI
Jon F. Danski
Chief Accounting Officer
(Principal Accounting Officer)
July 3, 2002
/s/ THOMAS A. LEIPZIG
Thomas A. Leipzig
Director
July 3, 2002
/s/ THOMAS CHARLES O'NEILL
Thomas Charles O'Neill
Chairman of the Board of Directors
July 3, 2002
/s/ FRANK S. SOWINSKI
Frank S. Sowinski
Chief Financial Officer
(Principal Financial Officer)
July 3, 2002
MONDAY FINANCE SA
Authorized Representative in the United States
By:
/s/ RONALD B. HAUBEN
Ronald B. Hauben
General Counsel and Corporate Secretary
II-6
Table of Contents
EXHIBIT INDEX
Exhibit
No.
Description
1.1
Form of Underwriting Agreement
2.1
Form of Monday Ltd Rollup Agreement*
2.2
Form of Monday SCA Rollup Agreement*
3.1
Memorandum of Association of Monday Ltd to be in
    effect as of the closing of this offering*
3.2
Bye-laws of Monday Ltd to be in effect as of the
    closing of this offering*
3.3
Constitution of Monday Finance SA
3.4
Articles of Incorporation of Monday SCA to be in
    effect as of the closing of this offering**
4.1
Specimen Class A common share certificate
4.2
Form of Rights Agreement*
4.3
Specimen PEPS Unit certificate
4.4
Form of Indenture among Monday Finance SA, Monday
    SCA, as guarantor, and the Bank of New York, as trustee,
    relating to the senior notes due 2008 of Monday Finance SA
4.5
Form of Purchase Contract Agreement
4.6
Form of Pledge Agreement
4.7
Form of Senior Note (Included in Exhibit 4.4)
4.8
Form of PEPS Unit (Included in Exhibit 4.5)
4.10
Form of Treasury PEPS Unit (Included in Exhibit
    4.5)
4.11
Form of Remarketing Agreement
5.1
Opinion of Conyers Dill & Pearman re legality
    of the PEPS Units being registered
5.2
Opinion of Linklaters
9.1
Form of Monday Ltd Voting Agreement*
10.1
Form of Rollup Agreements (filed as
    Exhibits 2.1 and 2.2 hereto)
10.2
[reserved]
10.3
2003 Share Incentive Plan*
10.4
2003 Non-Management Share Plan
10.5
[reserved]
10.6
Form of Redemption and Non-Competition Agreement*
10.7
Form of Transition Services Agreement*
10.8
Form of Shareholders Agreement*
10.9
Form of Assignment and Assumption Agreement*
10.10
Form of Sublease Agreement*
10.11
Form of Master License Agreement*
10.12
Form of Underwriting Agreement for the concurrent
    Class A common shares offering***
10.13
Form of Monday SCA Transfer Rights Agreement*
10.14
Executive Agreement for Gregory D. Brenneman*
10.15
Executive Agreement for Thomas C. O'Neill*
10.16
Executive Agreement for Willard W. Britain*
10.17
Executive Agreement for Michael S. Collins*
10.18
Executive Agreement for David V. Dockray*
10.19
Executive Agreement for Frank S. Sowinski*
10.20
Monday Consulting VS, Inc. Deferred Compensation
    Plan*
12.1
Statement of computation of ratio of earnings to
    fixed charges****
21.1
List of Subsidiaries of Monday Ltd
23.1
Consent of Deloitte & Touche LLP****
Table of Contents
Exhibit
No.
Description
24.1
Power of Attorney (included on signature page to
    the Registration Statement)**
25
Form T-1 Statement of Eligibility under the Trust
    Indenture Act of 1939 of The Bank of New York, as Trustee under
    the Indenture
99.1
[reserved]
99.2
List of PricewaterhouseCoopers firms, Partners
    and Shareholders and Amount of Equity Received*
*
Incorporated by reference from the exhibit of the
    same number contained in Monday Ltd's Registration
    Statement on Form S-1 (Registration No. 333-87408) as
    filed with the Commission.
**
Incorporated by reference from Exhibit 10.5
    contained in Monday Ltd's Registration Statement on
    Form S-1 (Registration No. 333-87406) as filed with
    the Commission.
***
Incorporated by reference from Exhibit 1.1
    contained in Monday Ltd's Registration Statement on
    Form S-1 (Registration No. 333-87408) as filed with
    the Commission.
****
Filed herewith.