Table of Contents 1 - Solutions 2 - Financial Highlights 3 - To Our Shareholders 4 - Annual Value 5 - Unique Position 6 - Industry Leaders Validation 7 - Investment Opportunity | E-Bussiness Solutions 8 - Customer Benefits | Competitions 9 - Process Industry Expertise | Internet Affect 10 - Future Growth | Vision for Future 11 - Contact Information Financials Section___________ I - Discuss/Analysis of Financial Condition & Results of Ops II - Consolidated Statements of Operations III - Consolidated Balance Sheets IV - Consolidated Statements of Cash Flows V - Statements of Stockholders’ Equity & Income VI - Notes to Consolidated Financial Statements VI.1 - Operations VI.2 - Significant Account Policies VI.3 - Restructuring and Other Changes VI.4 - Acquiisitions VI.5 - Line of Credit VI.6 - Long-Term Obligations VI.7 - 5¼% Convertible Subordinated Debentures VI.8 - Preffered Stock VI.9 - Common Stock VI.10 - Income Taxes VI.11 - Operating Leases VI.12 - Sale of Installments Receivable VI.13 - Commitments and Contingencies VI.14 - Retirement and Profit Sharing Plants VI.15 - Joint Ventures and Other Investments VI.16 - Accurued Expenses VI.17 - Related Party Transactions VI.18 - Segment and Geographic Information VII - Report of Independent Public Accountants Success Stories Section_____ Success Stories - BP Success Stories - BORDEN Success Stories - ROHM and HAAS Success Stories - DOW Success Stories - UNION CARBIDE Success Stories - PETRO VANTAGE Consolidated Balance Sheets In Thousands, Except Share Data Years ended June 30, 1999 2000         Assets       Current assets:          Cash and cash equivalents $34,039 $49,371    Short-term investments 64,662 64,161    Accounts receivable, net of reserves of $1,288 in 1999 and $1,439 in 2000 74,075 81,781    Unbilled services 16,634 21,894    Current portion of long-term installments receivable, net of unamortized          discount of $1,478 in 1999 and $1,475 in 2000 25,344 24,873    Deferred tax asset 2,752 3,300    Prepaid expenses and other current assets 12,196 16,175       Total current assets 229,702 261,555    Long-term installments receivable, net of unamortized discount    of $5,924 in 1999 and $5,831 in 2000  31,851  28,301    Property and leasehold improvements, at cost:             Land 727 727       Building and improvements 6,261 6,200       Computer equipment 36,163 39,225       Purchased software 23,449 27,580       Furniture and fixtures 11,833 13,225       Leasehold improvements 4,440 5,386       Less – Accumulated depreciation and amortization 82,873 45,875 92,343 56,250          36,998    36,093       Computer software development costs, net of accumulated amortization                of $8,967 in 1999 and $12,031 in 2000    6,011    7,026       Intangible assets, net of accumulated amortization of $9,027 in 1999 and $11,452 in 2000 9,143 8,856       Deferred tax asset    4,757    10,130       Other assets    6,561    12,984    $325,023 $364,945 Liabilities and Stockholders’ Equity       Current liabilities:            Current portion of long-term obligations $ 2,360 $ 1,327    Accounts payable 7,803 8,748    Accrued expenses 34,832 44,644    Unearned revenue 10,116 13,903    Deferred revenue 20,604 23,553       Total current liabilities 75,715 92,175 Long-term obligations, less current portion   3,155 1,923 5 1/4% Convertible subordinated debentures   86,250 86,250 Deferred revenue, less current portion   13,528 14,374 Other liabilities   625 1,025 Commitments and contingencies (Notes 11, 12, and 13)         Stockholders’ equity:            Common stock, $.10 par value             Authorized – 40,000,000 shares             Issued – 27,807,152 shares in 1999 and 29,060,428 shares in 2000 2,781 2,906    Additional paid-in capital 154,219 173,591    Accumulated deficit (8,736) (3,752)    Treasury stock, at cost – 230,430 shares of common stock (502) (502)    Accumulated other comprehensive loss (2,012) (3,045)       Total stockholders’ equity 145,750 169,198    $325,023 $364,945 The accompanying notes are an integral part of these consolidated financial statements. Table of Contents 1 - Solutions 2 - Financial Highlights 3 - To Our Shareholders 4 - Annual Value 5 - Unique Position 6 - Industry Leaders Validation 7 - Investment Opportunity | E-Bussiness Solutions 8 - Customer Benefits | Competitions 9 - Process Industry Expertise | Internet Affect 10 - Future Growth | Vision for Future 11 - Contact Information Financials Section___________ I - Discuss/Analysis of Financial Condition & Results of Ops II - Consolidated Statements of Operations III - Consolidated Balance Sheets IV - Consolidated Statements of Cash Flows V - Statements of Stockholders’ Equity & Income VI - Notes to Consolidated Financial Statements VI.1 - Operations VI.2 - Significant Account Policies VI.3 - Restructuring and Other Changes VI.4 - Acquiisitions VI.5 - Line of Credit VI.6 - Long-Term Obligations VI.7 - 5¼% Convertible Subordinated Debentures VI.8 - Preffered Stock VI.9 - Common Stock VI.10 - Income Taxes VI.11 - Operating Leases VI.12 - Sale of Installments Receivable VI.13 - Commitments and Contingencies VI.14 - Retirement and Profit Sharing Plants VI.15 - Joint Ventures and Other Investments VI.16 - Accurued Expenses VI.17 - Related Party Transactions VI.18 - Segment and Geographic Information VII - Report of Independent Public Accountants Success Stories Section_____ Success Stories - BP Success Stories - BORDEN Success Stories - ROHM and HAAS Success Stories - DOW Success Stories - UNION CARBIDE Success Stories - PETRO VANTAGE