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Thanks for bringing this to my attention.

CPU issued a shock profit warning in early January 2002 that served to undermine the markets` financial expectations and confidence in the company. The downgrade was primarily attributable to a weak corporate market, particularly in the UK, US, and South African markets. Similar to the 2H01A result, the January profit warning has served to reveal/highlight how highly leveraged CPU`s profitability is to the volatile segment of corporate services.

• The 2H01 result combined with the 1H02 profit warning served to undermine CPU growth expectations. Specifically, stagnating shareholder account growth indicates lower top-line growth while the adverse profit impact of declining corporate activity (IPOs, M&A, etc) served to highlight the fragility of the expectation of ongoing solid profitability growth. The 2H01 result and 1H02 profit warning is indicative of slower future growth for CPU. Hold.
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