The Company applies APB Opinion No. 25 in accounting for its share option plans. The exercise price of the options is established generally based on the estimated fair value of the underlying shares at grant date. For options granted prior to the initial public offering, the fair value was determined by taking into consideration the per share price at which the most recent sale of equity securities was made by Euronet to investors. For options granted after the initial public offering, the fair value is determined by the market price of the share at the date of grant. However, in contemplation of the initial public offering in March 1997, compensation expense was recognized in 1996 relating to all options granted during the fourth quarter of 1996. Such compensation expense was calculated as the excess of the fair market value of the underlying shares (determined as $4.22, which is the cash price per share at which GE Capital subscribed for pre f e rred shares of Euronet in F e b ru a ry 1997) over the exercise price of $2.14 per share. Euronet re c o rded $4,172,000 of compensation expense in the 1997 consolidated financial statements and an additional compensation expense of $343,000 with respect to these options was recognized over the re m a i n i n g vesting period of such options. Of this amount, $0, $127,000 and $108,000 has been expensed in the years ended December 31, 2000, 1999 and 1998, re s p e c t i v e l y.  The following table provides the fair value of options granted during 2000, 1999 and 1998 together with a description of the assumptions used to calculate the fair value using the Black-Scholes pricing model: Had the Company determined compensation cost based on the fair value at the grant date for its stock options under SFAS No. 123, E u ro n e t ’s net loss and net loss per share would have increased to the amounts indicated below: P ro forma impact reflects only options granted since December 31, 1994. There f o re, the full impact of calculating compensation cost for stock options under SFAS No. 123 is not reflected in the pro forma amounts presented above because compensation cost is reflected over the options’ vesting periods and compensation cost for options granted prior to January 1, 1995 is not considered.  4 0 We i g h t e d - We i g h t e d - Av e r a g e We i g h t e d - Av e r a g e C o n t r a c t u a l Average  Range of Number of E x e rc i s e R e m a i n i n g N u m b e r E x e rcise  E x e rcise Prices S h a re s P r i c e Life (years) E x e rc i s a b l e P r i c e 0 - 1 . 3 9 3 5 9 , 5 0 6 $ 0 . 7 3 3 . 5 3 5 9 , 5 0 6 $ 0 . 7 3 1 . 4 0 - 2 . 7 9 1 , 5 5 3 , 7 0 3 2 . 1 1 6 . 0 1 , 5 2 9 , 3 4 3 2 . 1 2 2 . 8 0 - 4 . 1 8 7 1 , 4 7 1 3 . 3 3 7 . 1 3 2 , 1 4 3 3 . 3 2 4 . 1 9 - 5 . 5 8 7 4 7 , 2 0 8 5 . 0 0 7 . 9 1 9 6 , 1 8 6 5 . 0 0 5 . 5 9 - 6 . 9 7 1 , 1 9 0 , 3 9 6 6 . 3 8 8 . 0 1 9 4 , 9 7 1 5 . 9 0 6 . 9 8 - 8 . 3 6 4 4 1 , 8 0 0 8 . 0 5 8 . 8 8 , 8 0 0 8 . 0 0 8 . 3 6 - 9 . 7 6 2 2 , 0 0 0 8 . 6 9 9 . 6 0 0 9 . 7 7 - 1 1 . 1 5 6 2 , 0 0 4 1 0 . 5 7 5 . 3 3 5 , 3 1 7 1 0 . 6 2 1 1 . 1 6 - 1 2 . 5 4 4 3 , 9 2 4 1 1 . 6 0 6 . 4 2 7 , 3 6 8 1 1 . 6 0 1 2 . 5 5 - 1 3 . 9 4 9 2 , 4 9 6 1 3 . 9 4 5 . 8 5 8 , 2 9 4 1 3 . 9 4 4 , 5 8 4 , 5 0 8 $ 4 . 6 5 6 . 9 2 , 4 4 1 , 9 2 8 $ 3 . 0 0 At December 31, 2000, the range of exercise prices, weighted-average remaining contractual life and number exercisable of outstanding options was as follows: Year ended December 31, 2 0 0 0 1 9 9 9 1 9 9 8 Expected volatility 8 2 . 0 % 1 0 0 % 1 0 0 % Average risk–free rate 7 . 2 1 % 6 . 6 1 % 8 . 8 0 % Average expected lives 5 years 5 years 5 years Weighted–average fair value (per share ) $ 5 . 2 7. $ 1 . 7 1. $ 3 . 5 1. Year ended December 31, 2 0 0 0 1 9 9 9 1 9 9 8 (in thousands, except per share data) Net loss–as re p o rt e d $ ( 4 9 , 5 5 1 ) $ ( 3 0 , 9 1 5 ) $ ( 2 8 , 3 7 5 ) Net loss–pro form a $ ( 5 0 , 2 8 0 ) $ ( 3 2 , 6 0 6 ) $ ( 2 9 , 0 6 7 ) Loss per share–as re p o rt e d $ ( 3 . 0 0 ) $ ( 2 . 0 3 ) $ ( 1 . 8 7 ) Loss per share – p ro form a $ ( 3 . 0 5 ) $ ( 2 . 1 4 ) $ ( 1 . 9 1 )