management fees payable to Service Bank. The risks and r e w a rds of ownership of the ATM network transferred to the Company as of
J a n u a ry 1, 1999, and revenues and expenses from the operation of the ATM network accrued to Euronet from that date. 
The acquisition was accounted for as a purchase; accord i n g l y, the results of operations have been included in the accompanying consolidated
financial statements since January 1, 1999. The purchase price was allocated to assets acquired in the amount of $3.5 million based on their
fair values. The excess of the purchase price over the fair value of the net assets acquired of $3.2 million was re c o rded as goodwill and is
a m o rtized over seven years. 
On August 13, 1999, Euronet USA purchased the remaining 66 2/3% interest in Dash for a consideration of $800,000 payable in 24 equal
monthly installments commencing on July 1, 1999. Euronet USA has delivered letters of credit to each of the sellers in the amount of the
e n t i re unpaid balance of the purchase price of Dash. As payments are made, the outstanding credit risk exposures related to the letters of
c redit are reduced pro p o rt i o n a t e l y. Euronet USA now owns a 100% interest in Dash. 
The acquisition was accounted for as a purchase; accord i n g l y, the results of operations have been included in the accompanying consolidated
financial statements since July 1, 1999. The purchase price was allocated to assets acquired of $680,000 based on their fair values. The
excess of the purchase price over the fair value of the net assets acquired of $120,000 has been re c o rded as goodwill and is amortized over
ten years. 
On November 30, 1998, the Company acquired the outstanding common stock of Euronet USA for purchase consideration of appro x i m a t e l y
$17.9 million (including incidental costs of $90,000 and fair value of stock options of $96,000). Euronet USA, with headquarters in Little
Rock, Arkansas, sells payment and transaction delivery systems worldwide. Its main software products include ATM and network pro c e s s i n g ,
e l e c t ronic funds transfer interfaces, electronic funds transfer switch control, credit/debit card processing and corporate cash management and
personal financial management access products. Euronet USA is the software provider to Euro n e t ’s ATM transaction processing center in
Central Europe. 
The acquisition was accounted for as a purchase; accor d i n g l y, the results of operations are included in the accompanying consolidated
financial statements since the date of acquisition. The purchase price was allocated to assets acquired ($7.5 million) and liabilities assumed
($6.0 million) based on their fair values. The excess of the purchase price over the fair value of the net assets acquired of $16.4 million was
allocated $1.0 million to in-process r e s e a rch and development (“IPRD”), $8.7 million to other identifiable intangible assets and the
remaining $6.7 million to goodwill (see Note 9). This allocation was based on independent valuations perf o rmed at the time of acquisition.
I n - p rocess re s e a rch and development was written-off to operations at the date of the acquisition. In the third quarter of 2000 the 
remaining book value of intangibles and goodwill of $11.2 million was written down in accordance with SFAS No. 121 (see Note 10). 
(5) Restricted Reserve 
The restricted re s e rve arose from the provisions of Hungarian accounting law in relation to share capital contributed in foreign currency to
Bank Tech and Administrative Services. Under these rules, a foreign currency capital contribution is re c o rded in the local accounting re c o rd s
of the companies using the rate when the capital was contributed. The foreign currency gain (or loss) which arises upon usage of the fore i g n
c u rrency is re c o rded as a separate non-distributable re s e rve.