text: **S t o c k h o l d e r’s Deficit**Stockholders’ deficit increased to $44.8 million at December 31, 2000 from $9.5 million at December 31, 1999. This is 
  due to the net loss for the year ended December 31, 2000 of $49.6 million which was offset by an increase in additional paid in capital of $14.4 
  million due to the sale of 1,882,723 shares of common stock for proceeds of $13.0 million, the issue of $400,000 of warrants and the exercise of 
  390,231 stock options for proceeds of $900,000. 
  
  **Year 2000 Compliance**
  
  The Company’s European and U.S. Year 2000 compliance teams re p o rted no material Year 2000 problems during the advent of the year 2000, 
  either with Euro n e t ’s own systems or the systems of its customers. The Company is unaware of any material Year 2000 complications to date. 
  
  **Impact of New Accounting Pronouncements Not Yet Adopted**
  
  **S FAS 133**The Company is re q u i red to adopt Statement of Financial Accounting Standard (SFAS) No. 133 “Accounting for Derivative 
  I n s t ruments and Hedging Activities” as amended by SFAS No. 138 for US GAAP re p o rting as of 1 January 2001. SFAS 133 and 138 establish 
  accounting and re p o rting standards for derivative instruments, including certain derivative instruments embedded in other contracts (collectively 
  re f e rred to as derivatives). 