ASSETS

Current assets:

Cash and cash equivalents

Restricted short term investments

Accounts receivable, less allowance for doubtful accounts of $965 and $1,309 at March 31, 2004 and December 31, 2003, respectively

Advances to SLM

Deferred tax assets

Prepaid expenses

Notes receivable

Other current assets

Total current assets

Property and equipment, net

Intangible assets, net

Goodwill

Deferred tax assets

Other noncurrent assets

Total assets

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Current maturities of long-term debt

Accounts payable and accrued liabilities

Client payouts and reserves

Deferred revenue

Total current liabilities

Long-term debt, less current portion

Deferred revenue

Other non-current liabilities

Deferred tax liability

Total liabilities

Minority interest

Shareholders’ equity:

Preferred stock, no par value; 1,000,000 shares authorized; 100,000 and 101,569 shares issued and outstanding at March 31, 2004 and December 31, 2003, respectively

Common stock, no par value; 50,000,000 shares authorized; 20,279,636 and 20,230,980 shares issued and outstanding at March 31, 2004 and December 31, 2003, respectively

Retained deficit

Accumulated other comprehensive loss

Total shareholders’ equity

Total liabilities and shareholders’ equity

(a)

December 31,

2003

December 31,

2003

Revenues:

Financial institution services

Merchant services

Customer reimbursements

Total revenues

Costs of services:

Costs of financial institution services

Costs of merchant services

Customer reimbursements

Selling, general and administrative expenses

Depreciation and amortization

Impairment Charge

Total operating expenses

Operating income

Interest expense

Other (expense) income, net

Income (loss) before provision (benefit) for income taxes, equity in loss of affiliate, and minority interest

Provision (benefit) for income taxes

Equity in loss of affiliate

Minority interest

Net income (loss) before preferred dividends

Preferred dividends

Net income attributable to common shareholders

Net income per common share:

Basic:

Income from continuing operations before discontinued operations and preferred dividends

Preferred dividends

Net income attributable to common shareholders

Diluted

Income from continuing operations before discontinued operations and preferred dividends

Preferred dividends

Net income attributable to common shareholders

Weighted average shares outstanding:

Basic

Diluted

(a)

Three Months Ended
March 31,

2004

(b)

Adjustments

Three Months Ended
March 31,

2004

Revenues:

Financial institution services

Customer reimbursements

Total revenues

Costs of services:

Costs of financial institution services

Customer reimbursements

Selling, general and administrative expenses

Depreciation and amortization

Total operating expenses

Operating income

Other (expense) income, net

Income before provision for income taxes, equity in loss of affiliates, minority interest and discontinued operations

Provision for income taxes

Minority interest

Income from continuing operations before discontinued operations and preferred dividends

Discontinued operations

Loss from discontinued operations, net of income tax benefit of $(789) in 2004

Gain on disposal from discontinued operations net of income tax expense of $3,156 in 2004

Income (loss) from discontinued operations

Net income before preferred dividends

Preferred dividends

Net income attributable to common shareholders

Net income per common share:

Basic:

Income from continuing operations before discontinued operations and preferred dividends

Income (loss) from discontinued operations

Preferred dividends

Net income attributable to common shareholders

Diluted

Income from continuing operations before discontinued operations and preferred dividends

Income (loss) from discontinued operations

Preferred dividends

Net income attributable to common shareholders

Weighted average shares outstanding:

Basic

Diluted