Consolidated Statements of Stockholders’ Equity (in thousands) Balance, December 31, 2001 116,130 $ 1,158 – $ – $ 38,746 $ 59,046 $ (158) $ 98,792 Translation Adjustment – – – – – – (27) (27) Exercise of Stock Options 6,222 60 – – 18,852 – – 18,912 Tax Benefit related to Stock Plans – – – – 12,111 – – 12,111 Employee Stock Purchase Plan 168 6 – – 1,125 – – 1,131 Net Income – – – – – 34,562 – 34,562 Balance, December 31, 2002 122,520 1,224 – – 70,834 93,608 (185) 165,481 Translation Adjustment – – – – – – 4,185 4,185 Exercise of Stock Options 5,958 60 – – 21,828 – – 21,888 Tax Benefit related to Stock Plans – – – – 22,299 – – 22,299 Employee Stock Purchase Plan 196 2 – – 2,362 – – 2,364 Compensatory Grants – – – – 488 – – 488 Net Income – – – – – 57,365 – 57,365 Balance, December 31, 2003 128,674 1,286 – – 117,811 150,973 4,000 274,070 Translation Adjustment – – – – – – 5,649 5,649 Exercise of Stock Options 5,263 53 – – 31,071 – – 31,124 Tax Benefit related to Stock Plans – – – – 36,799 – – 36,799 Employee Stock Purchase Plan 240 3 – – 5,641 – – 5,644 Net Income – – – – – 100,243 – 100,243 Balance, December 31, 2004 134,177 $ 1,342 – $ – $ 191,322 $251,216 $ 9,649 $ 453,529 Accumulated Additional Other Class A Common stock (1) Class B Common stock Paid-in Retained Comprehensive Shares Amount Shares Amount Capital (1) Earnings Income (Loss) Total 30 $^{(1)}$Restated to reflect 2-for-1 stock split effected by a 100% stock dividend paid on June 17, 2004. The accompanying notes are an integral part of the consolidated financial statements. COGNIZANT ANNUAL REPORT 2004