text: **Foreign Exchange Exposure**
  
  In 2000, 30% of the Company’s revenues were generated in Poland and Hungary, as compared to 27% in 1999 and 73% in 1998. The 2000 
  f i g u re has increased due to the increase in revenues for the Polish operations. In Hungary the majority of revenues received are denominated in 
  Hungarian Forint and in Poland, the majority of revenues are denominated in Polish Zloty. However the majority of these foreign curre n c y 
  denominated contracts are linked either to inflation or the retail price index. While it remains the case that a significant portion of the Company’s 
  e x p e n d i t u res are made in or are denominated in U.S. Dollars the Company is also striving to achieve more of its expenses in local currencies to 
  match its revenues. 
  
  The Company estimates that a further 10% depreciation in foreign exchange rates of the Deutsche Mark, Hungarian Forint, Polish Zloty and the 
  British Pound Sterling against the U.S. dollar, would have the combined effect of a $7.1 million decrease in the re p o rted net loss. This was 
  estimated using 10% of the Company’s net losses after adjusting for unusual impairment and other items including U.S. dollar denominated or 
  indexed expenses. The Company believes that this quantitative measure has inherent limitations. It does not take into account any govern m e n t a l 
  actions or changes in either customer purchasing patterns or the Company’s financing or operating strategies. 