In addition to the PartnerShops opened or contracted in 1999 and listed previously in this report, we have a PartnerShop in Ithaca, New York, operated by The Learning Web and three in New York City, two operated by Common Ground (www.commonground.org), a nonprofit housing and training organization, and one by the Postgraduate Center for Mental Health. We also have two PartnerShops in San Francisco operated by Juma Ventures (www.jumaventures.org), a nonprofit youth services organization. Juma also operates a satellite business selling ice cream at San Francisco’s ballparks.

At the end of 1999, we had 128 owners (independent operators, not corporations) in our franchise system. Fifteen percent of our independent owners were women and people of color, compared to 9 percent in 1998.

In 1999 the total amount spent by franchisees on community-based efforts was $343,076 or 13% of the annual 4% marketing fee as compared to $356,080 or 14% in 1998.

At the 1999 Franchise meeting in San Diego, participants completed a daylong volunteer project for the San Diego Center for Children, a nonprofit organization serving children and families. The project included painting, carpeting and landscaping.

There was no franchise-related litigation against the Company in 1999.