The fair value of each option grant was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions used for grants in 2000, 2001 and 2002: risk free interest rate of 6.7%, 4.9% and 4.8%, respectively, expected dividend yield of 0%, expected life of 10 years and expected volatility of 70.8%, 80.7% and 77.7% respectively.

The Company may grant options ("Incentive Plan Options") to purchase up to 1,850,000 shares under the Incentive Plan and has granted options on 1,566,000 shares through December 31, 2002. Through December 31, 2002, 56,797 stock options had been exercised. A summary of the status of the Company's stock options at December 31, 2000, 2001 and 2002 is presented in the table below:

 

 

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