During December 1997, the Company sold the land and building it owned at its
Albany, Oregon facility and entered into a leaseback arrangement.

As a consequence of executing its acquisition strategy, the Company has
assumed the debt obligations of the acquired companies to three banks.
During the first two quarters of fiscal 1998, the Company used the proceeds
from the aforementioned transactions to reduce current bank debt obligations
by $1,038,000.

Subsequent to December 31, 1997, the Company entered into an equipment lease
facility with a financial institution.  The facility permits the Company to
enter into lease arrangements up to an aggregate amount of $600,000.  The
Company anticipates to partially use this facility to upgrade its computer
equipment and administrative network. The Company granted the lessor stock
purchase warrants to purchase 5,000 shares of its common stock for $5.50 per
share.  The warrants expire in February 2003.

Subsequent to December 31, 1997, the Company secured a $4,000,000 term loan
with a financial institution.  The loan is secured by substantially all
assets of the Company.  The loan bears interest at the rate of 11.5% per
annum.  The loan is due in February 2003.  No principal payments are required
until maturity.  The Company granted the lender stock purchase warrants to
purchase 250,000 shares of its common stock for $5.50 per share.  The
warrants expire in February 2003.  Under the terms of this facility,
additional warrants may be granted if the outstanding principal is not repaid
prior to July 1999.  The loan arrangement provides for an additional
borrowing in the amount of up to $2,000,000 under certain terms and
conditions.  Proceeds will be used to extinguish senior bank debt, for
working capital purposes associated with Y2KOne-TM-  start-up costs and for
potential acquisitions.  At February 16, 1998, no principal has been drawn
under this facility.

As a result of these transactions and arrangements, the Company's working
capital position improved from $168,000 at June 30, 1997 to $8,131,000 at
December 31, 1997.