At February 29, 2008 we had short-term investments in auction rate securities of approximately $15.6 million. Auction rate securities generally have long-stated maturities of 20 to 40 years. These securities have certain economic characteristics of short-term investments due to a rate-setting mechanism and the ability to liquidate them through a Dutch auction process that occurs on pre-determined intervals of less than 90 days. Due to the frequent resetting of interest rates, the carrying value of auction rate securities approximates fair value.

During the quarter ended February 29, 2008, investment banks were reporting an inability to successfully obtain subscribers for high credit quality auction rate securities. As of February 29, 2008 we held such auction rate securities with a par value totaling $10.4 million that failed in February 2008 to sell at auction. The unsuccessful auctions have resulted in the interest rate on these securities resetting at a premium interest rate every 35 days or less. In the event we need to access funds invested in these auction rate securities we would not be able to liquidate these securities until: a future auction of these securities is successful, they are refinanced and redeemed by the issuers, or a buyer is found outside of the auction process. The investments consist of student loan auction rate preferred instruments issued by various state agencies pursuant to the Federal Family Educational Loan Program (FFELP). These investments are of high credit quality and the AAA credit ratings of the investments have been reaffirmed since February 2008. These instruments are collateralized in excess of the underlying obligations, are insured by the various state educational agencies, and are guaranteed by the Department of Education as an insurer of last resort. We have the intent and the ability to hold these investments until the anticipated recovery period which we believe will be less than twelve months.