2002 COGNIZANT FINANCIAL REVIEW Consolidated Statements of Stockholders’ Equity (in thousands) (1) See Notes 1, 7, 13, and 14. The accompanying notes are an integral part of the consolidated financial statements. 26 Class A Class B Additional Cumulative Common stock (1) Common stock (1) Paid-in Retained Translation Shares Amount Shares Amount Capital (1) Earnings Adjustment Total Balance, December 31, 1999 21,606 $216 33,870 $339 $ 25,712 $ 19,203 $ (9) $ 45,461 Translation Adjustment – – – – – – (41) (41) Exercise of Stock Options 387 3 – – 780 – – 783 Tax Benefit related to Option Exercises – – – – 1,258 – – 1,258 Employee Stock Purchase Plan 96 – – – 937 – – 937 Compensatory Grant – – – – 340 – – 340 Less Prior year charges – – – – (294) – – (294) Less Unearned portion – – – – (11) – – (11) Net Income – – – – – 17,683 – 17,683 Balance, December 31, 2000 22,089 219 33,870 339 28,722 36,886 (50) 66,116 Translation Adjustment – – – – – – (108) (108) Exercise of Stock Options 1,995 21 – – 5,117 – – 5,138 Tax Benefit related to Stock Plans – – – – 4,633 – – 4,633 Employee Stock Purchase Plan 111 – – – 842 – – 842 Compensatory Grant – – – – 340 – – 340 Less Prior year charges – – – – (329) – – (329) Net Income – – – – – 22,160 -- 22,160 Balance, December 31, 2001 24,195 240 33,870 339 39,325 59,046 (158) 98,792 Translation Adjustment – – – – – – (27) (27) Exercise of Stock Options 3,111 30 – – 18,882 – – 18,912 Tax Benefit related to Stock Plans – – – – 12,111 – – 12,111 Employee Stock Purchase Plan 84 3 – – 1,128 – – 1,131 Net Income – – – – – 34,562 – 34,562 Balance, December 31, 2002 27,390 $273 33,870 $339 $ 71,446 $ 93,608 $(185) $ 165,481