**UNITED            STATES**

** SECURITIES            AND EXCHANGE COMMISSION**

**WASHINGTON,            D.C. 20549**

**FORM            10-K/A**

**(Mark          One)**

| **(X)** | **ANNUAL                    REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE                    SECURITIES EXCHANGE ACT OF 1934** |
|---------|--------------------------------------------------------------------------------------------------------------------------------|

**OR**

| **( )** | **TRANSITION                    REPORT PURSUANT TO SECTION 13 OR 15(d) OF                    THE SECURITIES EXCHANGE ACT OF                    1934**  |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **For                    the fiscal year ended December 31, 2005** | **Commission                    file number 2-28286**                 |
|--------------------------------------------------------------------|-----------------------------------------------------------------------|
|                                                               |                                                                  |
| **The                    Bureau of National Affairs, Inc.**        |                                                                  |
|                                                               |                                                                  |
| **A                    Delaware Corporation**                      | **53-0040540**(I.R.S.                    Employer Identification No.) |
|                                                               |                                                                  |
| **1231                    25th St., N. W.,**                       | **(202)                    452-4200**                                 |
| **Washington,                    D.C. 20037**                      | (telephone                    number)                                 |

**Securities          Registered pursuant to Section 12(b) of the Act:**

**Securities          registered pursuant to Section 12(g) of the Act**

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**EXPLANATORY          NOTE**

|                                                  |   |                                |   |                           |    |         |    |    |         |    |    | Retained  |    |
|-------------------------------------------------------|--------|-------------------------------------|--------|--------------------------------|---------|--------------|---------|---------|--------------|---------|---------|----------------|---------|
|                                                  |   |                                |   |                           |    |         |    |    |         |    |    | Earnings       |    |
|                                                  |   | Net                    Income  |   | At                    Dec. 31, |    |
|                                                  |   |                                | 2005   |                           |    | 2004         |    |    | 2003         |    |    | 2002           |    |   | 2001 |   |   |  2000 |   |
| Previously                  reported             |   |  $                             | 24,082 |                           |  $ | 22,559       |    |  $ | 16,085       |    |  $ | 14,377         |    |  $ | 13,262 |   |  $ | 84,604 |   |
| Pre-tax                    adjustments:          |   |                                |   |                           |    |         |    |    |         |    |    |           |    |   |   |   |   |   |   |
| License                    royalties             |   |                                | 667    |                           |    |  3,367  |    |    |  (215   | )  |    |  (3,819   | )  |   | --- |   |   |   |   |
| Software                                              |   |                                | (456   | )                              |    |  (1,694 | )  |    | 370          |    |    |  (973     | )  |   |  (935 | )  |   | (7,645 | )  |
| Others                                           |   |                                | (69    | )                              |    |  (60    | )  |    |  (188   | )  |    |  (74      | )  |   | (630 | )  |   |   |   |
| Total                  pre-tax adjustments  |   |                                | 142    |                           |    |  1,613  |    |    |  (33    | )  |    |  (4,866   | )  |   |  (1,565 | )  |   |  (7,645 | )  |
| Related tax                  effects        |   |                                | 68     |                           |    |  694    |    |    |  (23    | )  |    |  (1,945   | )  |   |  (588 | )  |   |  (2,905 | )  |
| Net                  after-tax adjustments       |   |                                | 74     |                           |    |  919    |    |    |  (10    | )  |    | (2,921         | )  |   |  (977 | )  |   |  (4,740 | )  |
| Restated                                         |   |  $                             | 24,156 |                           |  $ |  23,478 |    | $  |  16,075 |    |  $ |  11,456   |    |  $ |  12,285 |   |  $ |  79,864 |   |

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Table                of Contents

**DOCUMENTS        INCORPORATED BY REFERENCE**

| **TABLE****OF CONTENTS**                          |
|---------------------------------------------------|
|                                              |   |   |
| .                                                 |   | Page                  No. |
|                                              | PART                  I. |   |
| Item                  1.                          | Business | 4 |
| Item                  1A.     | Risk                Factors |  5 |
| Item                1B.                           | Unresolved                Staff Comments |  6 |
| Item                  2.                          | Properties | 6 |
| Item                  3.                          | Legal                  Proceedings | 6 |
| Item                  4.                          | Submission                  of Matters to a Vote                  of Security Holders  | 7 |
| Item                  X.                          | Executive                  Officers of the                  Registrant  | 7 |
|                                              |   |   |
|                                              | PART                  II. |   |
| Item                  5.                          | Market                  for the Registrant's Common Stock and                  Related Security |   |
|                                              | Holder                  Matters | 9 |
| Item                  6.                     | Selected                  Financial Data and Selected                  Quarterly Data. | 10 |
| Item                  7.                     | Management's                  Discussion and Analysis of Financial Condition                  and |   |
|                                              | Results                  of Operations | 12 |
| Item7a                                       | Quantitative                  and Qualitative Disclosures About                  Market Risk | 17 |
| Item                  8.                     | Financial                  Statements and Supplementary                  Data | 19 |
| Item                  9.                     | Changes                  in and Disagreements with                  Accountants on Accounting |   |
|                                              | and                  Financial                  Disclosure | 49 |
| Item                  9a.                    | Controls                  and Procedures | 49 |
| Item                  9b.                    | Other                  Information | 50 |
|                                              |   |   |
|                                              | PART                  III. |   |
| Item                  10.                    | Directors                  and Executive Officers of                  Registrant | 51 |
| Item                  11.                    | Executive                  Compensation | 51 |
| Item                  12.                    | Security                  Ownership of Beneficial Owners and                  Management | 51 |
| Item                  13.                    | Certain                  Relationships and Related                  Transactions | 51 |
| Item                  14.                    | Principal                  Accounting Fees and                  Services | 51 |
|                                              |   |   |
|                                              | PART                  IV. |   |
| Item                  15.                    | Exhibits,                  Financial Statement Schedules, and Report on                  Form 8-K | 52 |
|                                              |   |   |
| SIGNATURES                                        |   | 54 |
|                                              |   |   |
| EXHIBIT                  INDEX                    |    | 55 |

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Business

**Business        of BNA and Subsidiary Companies**

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Risk        Factors

**Negative        Economic Conditions**

**Competition**

**Technological        Changes**

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**Legal        And Regulatory Changes**

**Distribution        Arrangements**

**Employment        Costs**

Unresolved        Staff Comments

Properties

Legal        Proceedings

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Submission        of Matters to a Vote of        Security Holders

EXECUTIVE        OFFICERS OF THE        REGISTRANT

| Name                                   | Age    |   | Present                    position and prior experience                                                             |
|---------------------------------------------|--------|--------|----------------------------------------------------------------------------------------------------------------------|
| Cynthia                    J. Bolbach       | 58     |   | Vice                  President and Corporate Secretary                                                              |
|                                        |   |   |     Corporate                    Secretary since 1995                                            |
|                                        |   |   |     and                    vice president since 2002. Joined                                     |
|                                        |   |   |     BNA                    in 1972                                                               |
|                                        |   |   |                                                                                                                 |
| Eunice                    L. Bumgardner     | 45     |   | Vice                    President & General                    Counsel        |
|                                        |   |   |     Vice                    president since 1996 and                                             |
|                                        |   |   |     general                    counsel since 1995. Joined                                        |
|                                        |   |   |     BNA                    in 1994.                                                              |
|                                        |   |   |                                                                                                                 |
| Carol                    A. Clark      | 49     |   | Vice                    President                                                 |
|                                        |   |   |     Vice                    president since 2001                                                 |
|                                        |   |   |     Previously                    served as Technology Director                                  |
|                                        |   |   |     since                    1997. Joined BNA in 1983.                                           |
|                                        |   |   |                                                                                                                 |
| Sandra                    C. Degler    | 66     |   | Chairman                    of the Board                                                                             |
|                                        |   |   |     Chairman                    since 2004 and vice chairman                                     |
|                                        |   |   |     since                    1998. Served as president of                                        |
|                                        |   |   |     Tax                    Management Inc. from 1983 to 2000.                                    |
|                                        |   |   |     Joined                    BNA in 1963.                                                       |
|                                        |   |   |                                                                                                                 |
| George                    J. Korphage       | 59     |   | Vice                    President and Chief Financial Officer                                                        |
|                                        |   |   |     Vice                    President since 1988 and chief financial                             |
|                                        |   |   |     officer                    since 1989. Joined BNA in 1972.                                   |
|                                        |   |   |                                                                                                                 |
| Gilbert                  S. Lavine          | 54     |   | Treasurer                                                                                                            |
|                                        |   |   |     Treasurer                  since 1998.  Joined BNA in 1985.                             |
|                                        |   |   |                                                                                                                 |
| Gregory                  C. McCaffery  | 45     |   |  Vice                  President and Chief Operating Officer                                                    |
|                                        |   |   |      Vice                  president since 2000 and chief operating                    |
|                                        |   |   |      officer                  since 2003.  Joined BNA in                  1986         |

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EXECUTIVE            OFFICERS OF THE            REGISTRANT

| Name                            | Age    |   | Present                    position and prior experience                              |
|--------------------------------------|--------|--------|---------------------------------------------------------------------------------------|
|                                 |   |   |                                                                                  |
| James                    R. Schneble | 51     |   | Controller                                                                            |
|                                 |   |   |     Controller                    since 1990. Joined BNA in 1985. |
|                                 |   |   |                                                                                  |
| Robert                    L. Velte   | 58     |   | Vice                    President                                                     |
|                                 |   |   |     Vice                    President since 1995. Joined BNA in   |
|                                 |   |   |     1976.                    Retired in December 2005             |
|                                 |   |   |                                                                                  |
| Paul                    N. Wojcik    | 57     |   | Vice                    Chairman, President and Chief                                 |
|                                 |   |   | Executive                    Officer                                                  |
|                                 |   |   |     Elected                    vice chairman in 2004,             |
|                                 |   |   |     president                    in 1995 and CEO in 1997.         |
|                                 |   |   |     Joined                    BNA in 1972.                        |

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Market for the        Registrant's Common Stock and Related Security Holder Matters

| Stock                      Price                                                                                                             |   |   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|
|         January                      1, 2004                      - March 21, 2004         |   | $      | 11.25  |   |
|         March                      22, 2004                      - September 19, 2004      |   |   | 11.75  |   |
|         September                      20,                      2004 - March 20, 2005      |   |   | 12.00  |   |
|         March                      21, 2005                      - September 18, 2005      |   |   | 12.75  |   |
|         September                      19,                      2005 - December 31, 2005   |   |   | 13.00  |   |

| Record                  Date and Dividend Amount                                    |   |   |   |   |
|-------------------------------------------------------------------------------------|--------|--------|--------|--------|
|         March                  20, 2004     |   | $      | .15    |   |
|         September                  18, 2004 |   |   | .16    |   |
|         March                  19, 2005     |   |   | .16    |   |
|         September                  17, 2005 |   |   | .16    |   |

|                                                                                   |   |  Total                  Number    |      |  Average                         |   |
|----------------------------------------------------------------------------------------|--------|----------------------------------------|-----------|---------------------------------------|--------|
|                                                                                   |   |  of                   Shares |      |  Price                           |   |
|  Four-Week                Period                                                  |   | Purchased                              |      |  Paid                  per Share |   |
|     September                11, 2005 - October 8, 2005            |   |                                   | 188,570   |                                  | $      | 13.00 |   |
|     October                9, 2005 - November 5, 2005              |   |                                   | 114,417   |                                  | $      | 13.00 |   |
|     November                6, 2005 - December 3, 2005             |   |                                   | 205,774   |                                  | $      | 13.00 |   |
|     December  4,                2005 - December 31, 2005 |   |                                   | 1,020,759 |                                  | $      | 13.00 |   |

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Selected      Financial Data

**The      Bureau of National Affairs, Inc.**

**Consolidated      Operating and Financial Summary:      2005-2001**

|                                                                              |   |  2005    |    | 2004     |   | 2003     |   | 2002     |    | 2001     |   |
|-----------------------------------------------------------------------------------|--------|---------------|---------|---------------|--------|---------------|--------|---------------|---------|---------------|--------|
|                                                                              |   | (Restated)(a) |    | (Restated)(a) |   | (Restated)(a) |   | (Restated)(a) |    | (Restated)(a) |   |
|                                                                              |   |          |    |          |   |          |   |          |    |          |   |
| Operating                  Revenues for the year ended December 31,               |   | $             | 329,036 |          | $      | 322,604       |   | $             | 311,962 |          | $      | 304,831 |   | $ | 304,973 |   |
| Operating                  Expenses                                               |   |          | 286,992 |          |   | 283,039       |   |          | 286,445 |          |   | 281,807 |   |   | 291,639 |   |
| Operating                  Profit                                                 |   |          | 42,044  |          |   | 39,565        |   |          | 25,517  |          |   | 23,024 |   |   | 13,334 |   |
| Non-operating                  Income :                                           |   |          |    |          |   |          |   |          |    |          |   |   |   |   |   |   |
|     Investment                  Income                        |   |          | 4,132   |          |   | 3,713         |   |          | 4,644   |          |   | 6,235 |   |   | 8,119 |   |
|     Interest                  Expense                         |   |          | (5,907  | )             |   | (5,620        | )      |          | (5,710  | )             |   | (5,829 | ) |   | (6,000 | ) |
|     Other                  Income (Expense)                   |   |          | (28     | )             |   | (44           | )      |          | 724     |          |   | 191 |   |   | 4,421 |   |
| Income                  Before Income Taxes and                                   |   |          |    |          |   |          |   |          |    |          |   |   |   |   |   |   |
|     Cumulative                  Effect of Accounting Change   |   |          | 40,241  |          |   | 37,614        |   |          | 25,175  |          |   | 23,621 |   |   | 19,874 |   |
| Income                  Taxes                                                     |   |          | 16,085  |          |   | 14,136        |   |          | 9,100   |          |   | 7,725 |   |   | 7,589 |   |
| Income                  from Operations                                           |   |          | 24,156  |          |   | 23,478        |   |          | 16,075  |          |   | 15,896 |   |   | 12,285 |   |
| Cumulative                  Effect of Accounting Change (b)                       |   |          | ---     |          |   | ---           |   |          | ---     |          |   | (4,440 | ) |   | --- |   |
| Net                  Income                                                       |   | $             | 24,156  |          | $      | 23,478        |   | $             | 16,075  |          | $      | 11,456 |   | $ | 12,285 |   |
| Profit                  Margins (% of revenues):                                  |   |          |    |          |   |          |   |          |    |          |   |   |   |   |   |   |
| Operating                  Profit                                                 |   |          | 12.8    |          |   | 12.3          |   |          | 8.2     |          |   | 7.6 |   |   | 4.4 |   |
| Earnings                  (c)                                                     |   |          | 7.3     |          |   | 7.3           |   |          | 5.2     |          |   | 5.2 |   |   | 4.0 |   |
| Earnings                  Per Share from Operations                               |   | $             | .77     |          | $      | .72           |   | $             | .46     |          | $      | .44 |   | $ | .32 |   |
| Cumulative                  Effect of Accounting Change (b)                       |   |          | ---     |          |   | ---           |   |          | ---     |          |   | (.12 | ) |   | --- |   |
| Total                  Earnings Per Share                                         |   | $             | .77     |          | $      | .72           |   | $             | .46     |          | $      | .32 |   | $ | .32 |   |
| Dividends                  Per Share                                              |   | $             | .32     |          | $      | .31           |   | $             | .30     |          | $      | .30 |   | $ | .30 |   |
| Balance                  Sheet Data, as of December 31,:                          |   |          |    |          |   |          |   |          |    |          |   |   |   |   |   |   |
|     Total                  Assets                             |   | $             | 321,711 |          | $      | 324,413       |   | $             | 336,741 |          | $      | 346,964 |   | $ | 380,967 |   |
|     Long-Term                  Debt                           |   |          | 55,000  |          |   | 62,500        |   |          | 70,000  |          |   | 75,000 |   |   | 84,000 |   |
| Employee                  Data:                                                   |   |          |    |          |   |          |   |          |    |          |   |   |   |   |   |   |
|     Number                  of Employees                      |   |          | 1,729   |          |   | 1,802         |   |          | 1,878   |          |   | 1,999 |   |   | 2,121 |   |
|     Total                  Employment Costs                   |   | $             | 177,138 |          | $      | 172,595       |   | $             | 174,363 |          | $      | 166,005 |   | $ | 162,060 |   |
| Stockholder                  Data at Year-End:                                    |   |          |    |          |   |          |   |          |    |          |   |   |   |   |   |   |
|     Number                  of Stockholders                   |   |          | 1,673   |          |   | 1,711         |   |          | 1,786   |          |   | 1,834 |   |   | 1,807 |   |
|     Common                  Shares Outstanding (in thousands) |   |          | 30,204  |          |   | 31,719        |   |          | 33,653  |          |   | 34,922 |   |   | 37,492 |   |

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|                                  |   |  Quarter                Ended 2005 |
|---------------------------------------|--------|-----------------------------------------|
|                                  |   | March                26            |   | June                18  |   | September                10  |   | December                31  |   |
|                                  |   | As                                 |   |   |   | As  |   |   |   | As  |   |   |   | As  |   |   |   |
|                                  |   | Reported                           |   | Restated  |   | Reported  |   | Restated  |   |  Reported  |   |  Restated  |   |  Reported |   |  Restated  |   |
| Revenues                         |   | $                                       | 70,247 |   | $ | 72,475 |   | $ | 70,677 |   | $ | 74,622 |   | $ | 76,326 |   | $ | 76,464 |   | $ | 111,780 |   | $ | 105,475 |   |
| Gross              Profit        |   |                                    | 31,125 |   |   | 33,136 |   |   | 30,712 |   |   | 34,231 |   |   | 36,604 |   |   | 36,301 |   |   | 54,771 |   |   | 49,615 |   |
| Net              Income          |   |                                    | 3,957 |   |   | 5,102 |   |   | 3,496 |   |   | 5,483 |   |   | 6,592 |   |   | 6,393 |   |   | 10,037 |   |   | 7,178 |   |
|                                  |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings              Per Share  |   | $                                       | .13 |   | $ | .16 |   | $ | .11 |   | $ | .17 |   | $ | .21 |   | $ | .20 |   | $ | .32 |   | $ | .23 |   |

|                                  |   |  Quarter                Ended 2004 |
|---------------------------------------|--------|-----------------------------------------|
|                                  |   | March                27                 |   | June                19 |   | September                11 |   | December                31  |   |
|                                  |   | As                                 |   |   |   | As  |   |   |   | As  |   |   |   | As  |   |   |   |
|                                  |   | Reported                           |   | Restated  |   | Reported  |   | Restated  |   |  Reported  |   |  Restated  |   |  Reported |   |  Restated  |   |
| Revenues                         |   | $                                       | 69,913 |   | $ | 71,532 |   | $ | 69,901 |   | $ | 72,276 |   | $ | 72,994 |   | $ | 71,760 |   | $ | 108,448 |   | $ | 107,036 |   |
| Gross              Profit        |   |                                    | 31,143 |   |   | 32,498 |   |   | 31,744 |   |   | 33,820 |   |   | 34,755 |   |   | 33,202 |   |   | 52,314 |   |   | 52,029 |   |
| Net              Income          |   |                                    | 3,701 |   |   | 4,415 |   |   | 3,435 |   |   | 4,542 |   |   | 5,954 |   |   | 5,047 |   |   | 9,469 |   |   | 9,474 |   |
|                                  |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings              Per Share  |   | $                                       | .11 |   | $ | .13 |   | $ | .11 |   | $ | .14 |   | $ | .18 |   | $ | .16 |   | $ | .29 |   | $ | .29 |

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Management's      Discussion and Analysis of Financial Condition and Results of      Operations

**Overview**

**RESTATEMENT        OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS**

|                                                |   |  2005 |   |  2004 |   |  2003 |   |
|-----------------------------------------------------|--------|------------|--------|------------|--------|------------|--------|
| Revenues                                            |   |       |   |       |   |       |   |
| Publishing                (license royalties)  |   | $          | 597    |       | $      | 3,306      |   | $ | (403 | )  |
| Software                                       |   |       | (592   | )          |   | (1,958     | )      |   | 540 |   |
| Total                                          |   | $          | 5      |       |   | 1,348      |   | $ | 137 |   |
|                                                |   |       |   |       |   |       |   |   |   |   |
| Operating                Profit                |   |       |   |       |   |       |   |   |   |   |
| Publishing                (license royalties)  |   | $          | 597    |       | $      | 3,306      |   | $ | (403 | )  |
| Software                                       |   |       | (455   | )          |   | (1,693     | )      |   | 370 |   |
| Total                                          |   | $          | 142    |       | $      | 1,613      |   | $ | (33 | ) |
|                                                |   |       |   |       |   |       |   |   |   |   |
| Net                Income                      |   | $          | 74     |       | $      | 919        |   | $ | (10 | ) |
| Earnings                Per Share              |   | $          | 0.00   |       | $      | 0.03       |   | $ | (0.00 | ) |

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**Results      of      Operations****.  **

**2005      vs. 2004**

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** **

**2004      vs. 2003**

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**Cash      Flows, Liquidity, and Financial Resources**

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|                                          |   | Payments                Due by Period |    |
|-----------------------------------------------|--------|---------------------------------------|---------|
|  Contractual                Obligations: |   |  Total                           |    | Less                than1                Year |   | 1-3Years |   | 4-5Years |   | After                5Years |   |
| Term                Debt                      |   | $                                     | 78,956  |   | $ | 12,304 |   | $ | 28,354 |   | $ | 25,071 |   | $ | 13,227 |   |
| Operating                Leases               |   |                                  | 12,053  |   |   | 6,457 |   |   | 4,336 |   |   | 1,200 |   |   | 60 |   |
| Planned                pension contributions  |   |                                  | 14,000  |   |   | 14,000 |   |   | --- |   |   | --- |   |   | --- |   |
| Deferred                Real Estate Tax       |   |                                  | 6,760   |   |   | --- |   |   | 6,760 |   |   | --- |   |   | --- |   |
| Total                                         |   | $                                     | 111,769 |   | $ | 32,761 |   | $ | 39,450 |   | $ | 26,271 |   | $ | 13,287 |   |

**Critical      Accounting Policies**

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**Accounting      Pronouncements**

*Accounting Changes and Error Corrections—a          replacement of APB Opinion No. 20 and FASB Statement No. 3*

*Accounting          for Stock-Based Compensation.**Accounting for Stock Issued to Employees*

Quantitative And Qualitative      Disclosures About Market      Risk

|  Expected              Maturity Date |   | 2006   |   | 2007   |   | 2008   |   | 2009   |   | 2010   |   | Thereafter |   |
|-------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|
|                                      |   |   |   |   |   |   |   |   |   |   |   |       |   |
| Municipal                Bonds            |   | $      | 10,059 |   | $      | 24,431 |   | $      | 7,143  |   | $      | 7,990      |   | $ | 2,128 |   | $ | 34,486 |   |
| Average                Interest Yield     |   |   | 5.0%   |   |   | 5.0%   |   |   | 6.1%   |   |   | 5.3%       |   |   | 4.7% |   |   | 4.8% |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |
|                                      |   |   |   |   |   |   |   |   |   |   |   |       |   |   |   |   |   |   |   |
| Corporate                Debt             |   | $      | 1,672  |   | $      | 3,570  |   |   | ------ |   |   | ------     |   |   | ------ |   |   | ------ |   |
| Average                Interest Yield     |   |   | 4.6%   |   |   | 6.4%   |   |   |   |   |   |       |   |   |   |   |   |   |   |

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Financial      Statements and Supplementary Data

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**Report      of Independent Registered Public Accounting Firm**

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| ·   | The                    Company’s policies and procedures did not provide for a sufficiently                    detailed, periodic review by the Company’s accounting group of the                    software division’s operations to provide adequate knowledge of the extent                    of post-sale support in order to account for revenues in accordance                    with                    generally accepted accounting                    principles. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The                    Company lacked adequate personnel with technical expertise to                    identify                    complex sales transactions that require an in-depth technical                    accounting                    analysis to ensure that revenues are accounted for in accordance                    with                    generally accepted accounting                    principles. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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**THE      BUREAU OF NATIONAL AFFAIRS, INC.**

**CONSOLIDATED      STATEMENTS OF INCOME**

**YEARS      ENDED DECEMBER 31, 2005, 2004, AND 2003**

|                                                                           |   |   | 2005         |   |   | 2004         |   |   | 2003         |   |
|--------------------------------------------------------------------------------|--------|--------|-------------------|--------|--------|-------------------|--------|--------|-------------------|--------|
|                                                                           |   |   | (Restated)*  |   |   | (Restated)*  |   |   | (Restated)*  |   |
| **Operating                Revenues**(Note                3)** **         |   | $      | 329,036           |   | $      | 322,604           |   | $      | 311,962           |   |
| **Operating                Expenses**                                          |   |   |              |   |   |              |   |   |              |   |
|     (Notes                3,4,9, and 11):                  |   |   |              |   |   |              |   |   |              |   |
|     Editorial,                production, and distribution |   |   | 175,753           |   |   | 171,055           |   |   | 171,777           |   |
|     Selling                                                |   |   | 52,389            |   |   | 55,296            |   |   | 56,689            |   |
|     General                and administrative              |   |   | 58,850            |   |   | 56,688            |   |   | 57,979            |   |
| **Total                Operating Expenses**                                    |   |   | 286,992           |   |   | 283,039           |   |   | 286,445           |   |
| **Operating                Profit**                                            |   |   | 42,044            |   |   | 39,565            |   |   | 25,517            |   |
| **Non-Operating                Income (Expense):**                             |   |   |              |   |   |              |   |   |              |   |
|     Investment                income (Note 5)              |   |   | 4,132             |   |   | 3,713             |   |   | 4,644             |   |
|     Interest                expense (Note 10)              |   |   | (5,907            | )      |   | (5,620            | )      |   | (5,710            | )      |
|     Other                income (expense) (Note 6)         |   |   | (28               | )      |   | (44               | )      |   | 724               |   |
| **Total                Non-Operating Income (Expense)**                        |   |   | (1,803            | )      |   | (1,951            | )      |   | (342              | )      |
| **Income                Before Income Taxes**                                  |   |   | 40,241            |   |   | 37,614            |   |   | 25,175            |   |
| Provision                for income taxes (Note 8)                             |   |   | 16,085            |   |   | 14,136            |   |   | 9,100             |   |
| **Net                Income**                                                  |   | $      | 24,156            |   | $      | 23,478            |   | $      | 16,075            |   |
| **Earnings                Per Share** (Note                12)            |   | $      | .77               |   | $      | .72               |   | $      | .46               |   |

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Table          of Contents

**THE      BUREAU OF NATIONAL AFFAIRS, INC.**

**CONSOLIDATED      BALANCE SHEETS**

**DECEMBER      31, 2005 AND 2004**

**ASSETS**

|                                                                                 |   | December                31,    |         |
|--------------------------------------------------------------------------------------|--------|-----------------------------------------------|--------------|
|                                                                                 |   |  2005                                    |         |  2004 |   |
|                                                                                 |   | (Restated)*                                   |         | (Restated)* |   |
| **Current                Assets:**                                                   |   |                                          |         |   |   |   |   |
|     Cash                and cash equivalents (Note 5)            |   | $                                             | 9,056        |   | $ | 8,442 |   |
|     Short-term                investments (Note 5)               |   |                                          | 11,731       |   |   | 11,752 |   |
|     Receivables                (Note 9)                          |   |                                          | 37,825       |   |   | 30,898 |   |
|     Inventories                (Note 9)                          |   |                                          | 3,206        |   |   | 3,535 |   |
|     Prepaid                expenses                              |   |                                          | 5,327        |   |   | 5,007 |      |
|     Deferred                selling expenses (Note 3)            |   |                                          | 4,675        |   |   | 3,707 |   |
|     Deferred                income                taxes (Note 8) |   |                                          | 10,969  |   |   | 13,173 |   |
| **Total                Current Assets**                                              |   |                                          | 82,789       |   |   | 76,514 |   |
| **Marketable                Securities**(Note                5)                      |   |                                          | 97,898       |   |   | 99,817 |   |
| **Property                and Equipment**(Note                9)                     |   |                                          | 26,709       |   |   | 28,297 |   |
| **Deferred                Income Taxes**(Note                8)                      |   |                                          | 21,436       |   |   | 22,955 |   |
| **Goodwill**(Note                7)                                                  |   |                                          | 73,366       |   |   | 73,452 |   |
| **Intangible                and Other Assets**(Note                9)                |   |                                          | 19,513       |   |   | 23,378 |   |
| **    Total                Assets**                              |   | $                                             | 321,711      |   | $ | 324,413 |   |

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Table          of Contents

**THE      BUREAU OF NATIONAL AFFAIRS, INC.**

**CONSOLIDATED      BALANCE SHEETS**

**DECEMBER      31, 2005 AND 2004**

**LIABILITIES      AND STOCKHOLDERS’ EQUITY**

|                                                                                                        |   |  December                31, |           |
|-------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|----------------|
|                                                                                                        |   |  2005                        |           |  2004 |   |
|                                                                                                        |   | (Restated)*                       |           | (Restated)* |   |
| **Current                Liabilities:**                                                                     |   |                              |           |   |   |   |   |
|     Current                portion of long-term debt (Note 10)                          |   | $                                 | 7,500          |   | $ | 7,500 |   |
|     Payables                and                accrued liabilities (Note 9)             |   |                              | 51,146         |   |   | 44,963 |   |
|     Deferred                revenues (Note 3)                                           |   |                              | 131,593        |   |   | 125,605 |   |
| **    Total                Current Liabilities**                                        |   |                              | 190,239        |   |   | 178,068 |   |
| **Long-Term                Debt,**                less current portion (Note 10)                            |   |                              | 55,000         |   |   | 62,500 |   |
| **Postretirement                Benefits,**                less current portion (Note 4)                    |   |                              | 66,475         |   |   | 67,518 |   |
| **Other                Liabilities**                                                                        |   |                              | 8,473          |   |   | 8,682 |   |
| **Total                Liabilities**                                                                        |   |                              | 320,187        |   |   | 316,768 |   |
| **Commitments                and Contingencies** (Notes                11 and 12)                      |   |                              |           |   |   |   |   |
| **Stockholders’                Equity** (Note                12):                                |   |                              |           |   |   |   |   |
|     Common                stock issued, $1.00 par value --                              |   |                              |           |   |   |   |   |
|         Class                A                - 30,000,000 shares   |   |                              | 30,000         |   |   | 30,000 |   |
|         Class                B                - 24,634,865 shares   |   |                              | 24,635         |   |   | 24,635 |   |
|         Class                C                - 2,531,680 shares    |   |                              | 2,532          |   |   | 2,532 |   |
|     Additional                paid-in capital                                           |   |                              | 22,730         |   |   | 15,910 |   |
|     Retained                earnings                                                    |   |                              | 114,330        |   |   | 100,301 |   |
|     Treasury                stock,                at cost - 26,962,894 shares           |   |                              |           |   |   |   |   |
| in                2005 and 25,448,032 in 2004                                                               |   |                              |  (192,610 | )  |   |  (166,154 | )  |
|     Elements                of                other comprehensive income (loss):        |   |                              |           |   |   |   |   |
|         Net                unrealized gain on marketable securities |   |                              | 569            |   |   | 629 |   |
|         Foreign                currency translation adjustment      |   |                              | (65            | ) |   | (208 | ) |
|         Minimum                pension liability adjustment         |   |                              | (597           | ) |   | --- |   |
| **Total                Stockholders’ Equity**                                                         |   |                              | 1,524          |   |   | 7,645 |   |
| **Total                Liabilities and Stockholders’ Equity**                                         |   | $                                 | 321,711        |   | $ | 324,413 |   |

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Table          of Contents

**THE      BUREAU OF NATIONAL AFFAIRS, INC.**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

**YEARS      ENDED DECEMBER 31, 2005, 2004, AND 2003**

|                                                                                                           |   |  2005  |                          |  2004  |   |  2003  |   |
|----------------------------------------------------------------------------------------------------------------|--------|-------------|-------------------------------|-------------|--------|-------------|--------|
|                                                                                                           |   | (Restated)* |                          | (Restated)* |   | (Restated)* |   |
|                                                                                                           |   |        |                          |        |   |        |   |
| **Cash                Flows from Operating Activities:**                                                       |   |        |                          |        |   |        |   |   |   |   |
|     Net                income                                                              |   | $           | 24,156                        |        | $      | 23,478      |   | $ | 16,075 |   |
|     Adjustments                to                reconcile net income to net               |   |        |                          |        |   |        |   |   |   |   |
|         cash                provided by operating activities-          |   |        |                          |        |   |        |   |   |   |   |
|         Depreciation                and amortization                   |   |        | 9,762                         |        |   | 10,282      |   |   | 14,292 |   |
|         Deferred              income              taxes                |   |        |     4,091 |        |   | 578         |   |   | (2,414 | )  |
|         (Gain)                on sales of securities                   |   |        | (347                          | )           |   | (314        | )      |   | (1,174 | ) |
|         (Gain)                loss on disposals of assets              |   |        | 28                            |        |   | 44          |   |   | (724 | ) |
|         Capitalized                interest                            |   |        | --                            |        |   | (367        | )      |   | (195 | ) |
|         Others                                                         |   |        | 1,937                         |        |   | 1,140       |   |   | 1,079 |   |
|     Changes                in operating assets and liabilities -                      |   |        |                          |        |   |        |   |   |   |   |
|         Receivables                                                    |   |        | (7,981                        | )           |   | 1,990       |   |   | 2,984 |      |
|         Deferred                revenues                               |   |        | 5,988                         |        |   | (4,136      | )      |   | (4,417 | ) |
|         Payables                and                accrued liabilities |   |        | (161                          | )           |   | 1,754       |   |   | 1,822 |   |
|         Postretirement                benefits                         |   |        | 3,649                         |        |   | 2,333       |   |   | 3,923 |   |
|         Deferred                selling expenses                       |   |        | (968                          | )           |   | 1,131       |   |   | 1,190 |   |
|         Inventories                                                    |   |        | 329                           |        |   | 267         |   |   | (207 | ) |
|         Other                assets and liabilities - net              |   |        | (1,067                        | )           |   | 249         |   |   | 377 |   |
| Net                cash provided by operating activities                                                       |   |        | 39,416                        |        |   | 38,429      |   |   | 32,611 |   |
| **Cash                Flows from Investing Activities:**                                                       |   |        |                          |        |   |        |   |   |   |   |
|     Purchase                of                equipment and furnishings                    |   |        | (1,776                        | )           |   | (1,706      | )      |   | (903 | ) |
|     Capitalized                software                                                    |   |        | (1,160                        | )           |   | (3,884      | )      |   | (3,347 | ) |
|     Building                improvements                                                   |   |        | --                            |        |   | (69         | )      |   | (585 | ) |
|     Business                purchase price adjustments                                     |   |        | 86                            |        |   | 400         |   |   | (447 | ) |
|     Proceeds                from                sales of assets                            |   |        | --                            |        |   | 175         |   |   | 523 |   |
|     Purchase                of                publishing assets                            |   |        | --                            |        |   | (102        | )      |   | (136 | ) |
|     Investment              security sales and maturities                                  |   |        | 57,282                        |        |   | 83,806      |   |   | 122,471 |   |
|     Investment              securities purchases                                           |   |        | (55,971                       | )           |   | (89,811     | )      |   | (113,473 | ) |
| Net                cash provided by (used for) investing activities                                       |   |        | (1,539                        | )           |   | (11,191     | )      |   | 4,103 |   |

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Table          of Contents

**THE      BUREAU OF NATIONAL AFFAIRS, INC.**

**CONSOLIDATED      STATEMENTS OF CASH FLOWS**

**YEARS      ENDED DECEMBER 31, 2005, 2004, AND 2003**

|                                                                                |   |  2005  |    |  2004  |   |  2003  |   |
|-------------------------------------------------------------------------------------|--------|-------------|---------|-------------|--------|-------------|--------|
|                                                                                |   | (Restated)* |    | (Restated)* |   | (Restated)* |   |
| **Cash                Flows from Financing Activities:**                            |   |        |    |        |   |        |   |   |   |   |
|     Sales                of capital stock to employees          |   |        | 11,479  |        |   | 7,118       |   |   | 8,497 |   |
|     Purchases                of                treasury stock   |   |        | (31,115 | )           |   | (29,242     | )      |   | (22,782 | ) |
|     Dividends                paid                               |   |        | (10,127 | )           |   | (10,160     | )      |   | (10,471 | ) |
|     Repayment                of                borrowings       |   |        | (7,500  | )           |   | (5,000      | )      |   | (5,000 | ) |
|     Net                cash (used for) financing activities     |   |        | (37,263 | )           |   | (37,284     | )      |   | (29,756 | ) |
| **Net                Increase (Decrease) in Cash and Cash Equivalents**             |   |        | 614     |        |   | (10,046     | )      |   | 6,958 |   |
| **Cash                and Cash Equivalents,** beginning                of year |   |        | 8,442   |        |   | 18,488      |   |   | 11,530 |   |
| **Cash                and Cash Equivalents,**end                of year             |   | $           | 9,056   |        | $      | 8,442       |   | $ | 18,488 |   |
|                                                                                |   |        |    |        |   |        |   |   |   |   |
|                                                                                |   |        |    |        |   |        |   |   |   |   |
| **Supplemental                Cash Flow Information:**                              |   |        |    |        |   |        |   |   |   |   |
| Interest                paid                                                        |   | $           | 5,480   |        | $      | 5,588       |   | $ | 5,597 |   |
| Income                taxes paid                                                    |   |        | 12,229  |        |   | 13,650      |   |   | 10,325 |   |

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Table          of Contents

**THE      BUREAU OF NATIONAL AFFAIRS, INC.**

**CONSOLIDATED      STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY AND COMPREHENSIVE      INCOME**

**YEARS      ENDED DECEMBER 31, 2005, 2004, AND 2003**

|                                                                                                                                                |   |  (Restated)* |                           |   |   |            |   |   |             |   |   | (Restated)*  |    |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------------------------------|--------|--------|-----------------|--------|--------|------------------|--------|--------|-------------------|---------|
|                                                                                                                                                |   |              | Comprehensive                  |   |   |  Capital   |   |   |  Additional |   |   | (Restated)*  |    |   |   |   |   |  Accum.                Other |   |
|                                                                                                                                                |   |              |  Income                   |   |   |  Stock     |   |   |  Paid-In    |   |   |  Retained    |    |   |  Treasury |   |   |  Comprehensive |   |
|                                                                                                                                                |   |              |  (Note                13) |   |   | Issued          |   |   |  Capital    |   |   |  Earnings    |    |   |  Stock |   |   |  Income |   |
| **Balance,                January 1, 2003, as Reported**                                                                                            |   |              |                                |   | $      | 57,167          |   | $      | 5,863            |   | $      | 90,017            |    | $ | (119,698 | ) | $ | (1,890 | ) |
| Effect                of Restatement                                                                                                           |   |              |                           |   |   |  ---  |   |   | ---         |   |   | (8,638            | )  |   | ---  |   |   | 275  |   |
| **Balance,              January 1, 2003 (Restated)**                                                                                                |   |              |                           |   |   | 57,167     |   |   | 5,863       |   |   | 81,379            |    |   | (119,698 | ) |   | (1,615 | ) |
| Net                Income                                                                                                                           |   | $                 | 16,075                         |   |   | ---             |   |   | ---              |   |   | 16,075            |    |   | --- |   |   | --- |   |
| Other                Comprehensive Income, net of tax:                                                                                              |   |              |                                |   |   |                 |   |   |                  |   |   |                   |    |   |  |   |   |  |   |
|      Unrealized gain                on marketable                securities        |   |              | 1,794                          |   |   | ---             |   |   | ---              |   |   | ---               |    |   | --- |   |   | 1,794 |   |
|     Currency                translation adjustment                                                                              |   |              | (79                            | )      |   | ---             |   |   | ---              |   |   | ---               |    |   | --- |   |   | (79 | ) |
| Comprehensive                Income                                                                                                                 |   | $                 | 17,790                         |   |   |                 |   |   |                  |   |   |                   |    |   |  |   |   |  |   |
| Sales                of Class A treasury shares to employees                                                                                        |   |              |                                |   |   | ---             |   |   | 5,487            |   |   | ---               |    |   | 3,010 |   |   | --- |   |
| Repurchases                of shares                                                                                                                |   |              |                                |   |   | ---             |   |   | ---              |   |   | ---               |    |   | (22,782 | ) |   | --- |   |
| Cash                dividends--$.30 per share                                                                                                       |   |              |                                |   |   | ---             |   |   | ---              |   |   | (10,471           | )       |   | --- |   |   | --- |   |
| **Balance,                December 31, 2003 (Restated)**                                                                                            |   |              |                                |   |   | 57,167          |   |   | 11,350           |   |   | 86,983            |    |   | (139,470 | ) |   | 100 |   |
| Net                Income                                                                                                                           |   | $                 | 23,478                         |   |   | ---             |   |   | ---              |   |   | 23,478            |    |   | -- |   |   | --- |   |
| Other                Comprehensive Income, net of tax:                                                                                              |   |              |                                |   |   |                 |   |   |                  |   |   |                   |    |   |  |   |   |  |   |
|     Unrealized                gain                on marketable securities                                                      |   |              | 371                            |   |   | ---             |   |   | ---              |   |   | ---               |    |   | --- |   |   | 371 |   |
|     Currency                translation adjustment                                                                              |   |              | (50                            | )      |   | ---             |   |   | ---              |   |   | ---               |    |   | --- |   |   | (50 | ) |
| Comprehensive                Income                                                                                                                 |   |  $           | 23,799                         |   |   |                 |   |   |                  |   |   |                   |    |   |  |   |   |  |   |
| Sales                of Class A treasury shares to employees                                                                                        |   |              |                                |   |   | ---             |   |   | 4,560            |   |   | ---               |    |   | 2,558 |   |   | --- |   |
| Repurchases                of shares                                                                                                                |   |              |                                |   |   | ---             |   |   | ---              |   |   | ---               |    |   | (29,242 | ) |   | --- |   |
| Cash                dividends--$.31 per share                                                                                                       |   |              |                                |   |   | ---             |   |   | ---              |   |   | (10,160           | )       |   | --- |   |   | --- |   |
| **Balance,                December 31, 2004 (Restated)**                                                                                            |   |              |                                |   |   | 57,167          |   |   | 15,910           |   |   | 100,301           |    |   | (166,154 | ) |   | 421 |   |
| Net                Income                                                                                                                           |   | $                 | 24,156                         |   |   | ---             |   |   | ---              |   |   | 24,156            |    |   | --- |   |   | --- |   |
| Other                Comprehensive Income, net of tax:                                                                                              |   |              |                                |   |   |                 |   |   |                  |   |   |                   |    |   |  |   |   |  |   |
|     Unrealized                (loss) on marketable securities                                                                   |   |              | (60                            | )      |   | ---             |   |   | ---              |   |   | ---               |    |   | --- |   |   | (60 | ) |
|     Currency                translation adjustment                                                                              |   |              | 143                            |   |   | ---             |   |   | ---              |   |   | ---               |    |   | --- |   |   | 143 |   |
|     Minimum                pension liability adjustment                                                                         |   |              | (597                           | )      |   | ---             |   |   | ---              |   |   | ---               |    |   | --- |   |   | (597 | ) |
| Comprehensive                Income                                                                                                                 |   | $                 | 23,642                         |   |   |                 |   |   |                  |   |   |                   |    |   |  |   |   |  |   |
| Sales                of Class A treasury shares to employees                                                                                        |   |              |                                |   |   | ---             |   |   | 6,820            |   |   | ---               |    |   | 4,659 |   |   | --- |   |
| Repurchases                of shares                                                                                                                |   |              |                                |   |   | ---             |   |   | ---              |   |   | --                |    |   | (31,115 | ) |   | --- |   |
| Cash                dividends--$.32 per share                                                                                                       |   |              |                                |   |   | ---             |   |   | ---              |   |   | (10,127           | )       |   | --- |   |   | --- |   |
| **Balance,                December 31, 2005 (Restated)**                                                                                            |   |              |                                |   | $      | 57,167          |   | $      | 22,730           |   | $      | 114,330           |    | $ | (192,610 | ) | $ | (93 | ) |

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Table          of Contents

|                                                 |   |  For                the Years Ended December 31, |
|------------------------------------------------------|--------|-------------------------------------------------------|
|                                                 |   |  2005                                       |   |  2004  |   |  2003 |   |
|  Comprehensive              Income Data:        |   | As                                                    |   |   |   | As |   |   |   | As  |   |   |   |
|                                                 |   | Previously                                            |   | As |   | Previously |   | As           |   | Previously |   | As  |   |
|                                                 |   | Reported                                              |   | Restated |   | Reported  |   | Restated  |   | Reported  |   | Restated  |   |
| Operating              Revenues                      |   |  $                                               | 329,030 |   |  $ | 329,036 |   |  $ | 321,256 |   |  $ | 322,604 |   |  $ | 311,824 |   |  $ | 311,962 |   |
| Editorial,              production, and distribution |   |                                                  | 175,818 |   |   | 175,753 |   |   | 171,300 |   |   | 171,055 |   |   | 171,597 |   |   | 171,777 |   |
| Selling                                              |   |                                                  | 52,460 |   |   | 52,389 |   |   | 55,316 |   |   | 55,296 |   |   | 56,698 |   |   | 56,689 |   |
| Total                Operating Expense               |   |                                                  | 287,128 |   |   | 286,992 |   |   | 283,304 |   |   | 283,039 |   |   | 286,274 |   |   | 286,445 |   |
| Operating              Profit                        |   |                                                  | 41,902 |   |   | 42,044 |   |   | 37,952 |   |   | 39,565 |   |   | 25,550 |   |   | 25,517 |   |
| Income              Before Income Taxes              |   |                                                  | 40,099 |   |   | 40,241 |   |   | 36,001 |   |   | 37,614 |   |   | 25,208 |   |   | 25,175 |   |
| Provision              for income taxes              |   |                                                  | 16,017 |   |   | 16,085 |   |   | 13,442 |   |   | 14,136 |   |   | 9,123 |   |   | 9,100 |   |
| Net              Income                              |   |                                                  | 24,082 |   |   | 24,156 |   |   | 22,559 |  |   | 23,478 |   |   | 16,085 |   |   | 16,075 |   |
| Comprehensive              Income                    |   |                                                  | 23,568 |   |   | 23,642 |   |   | 22,880 |   |   | 23,799 |   |   | 17,800 |   |   | 17,790 |   |
| Earnings              Per Share                      |   |  $                                               | .77 |   |  $ | .77 |   |  $ | .69 |   |  $ | .72 |   |  $ | .46 |   |  $ | .46 |   |

|                                                            |   |  December                31, 2005 |    | December                31, 2004  |   |
|-----------------------------------------------------------------|--------|----------------------------------------|---------|----------------------------------------|--------|
| Balance              Sheet Data:                           |   | As                Previously      |    | As                                |   | As                Previously  |   | As  |   |
|                                                            |   | Reported                          |    | Restated                          |   | Reported  |   | Restated  |   |
| Assets:                                                    |   |                                   |    |                                   |   |   |   |   |   |   |   |   |   |
| Receivables                                                |   | $                                      | 37,740  |                                   | $      | 37,825 |   | $ | 30,827 |   | $ | 30,898 |   |
| Prepaid              expenses                                   |   |                                   | 4,118   |                                   |   | 5,327 |   |   | 3,864 |   |   | 5,007 |   |
| Deferred              selling expenses                     |   |                                   | 4,371   |                                   |   | 4,675 |   |   | 3,474 |   |   | 3,707 |   |
| Deferred              income taxes                         |   |                                   | 6,418   |                                   |   | 10,969 |   |   | 8,554 |   |   | 13,173 |   |
| Total                Current Assets                        |   |                                   | 76,640  |                                   |   | 82,789 |   |   | 70,448 |   |   | 76,514 |   |
| Total                Assets                                     |   |                                   | 315,562 |                                   |   | 321,711 |   |   | 318,347 |   |   | 324,413 |   |
| Liabilities              and Stockholders'Equity:          |   |                                   |    |                                   |   |   |   |   |   |   |   |   |   |
| Deferred              revenues                             |   |                                   | 118,064 |                                   |   | 131,593 |   |   | 112,085 |   |   | 125,605 |   |
| Total                Current Liabilities                   |   |                                   | 176,710 |                                   |   | 190,239 |   |   | 164,548 |   |   | 178,068 |   |
| Total                Liabilities                                |   |                                   | 306,658 |                                   |   | 320,187 |   |   | 303,248 |   |   | 316,768 |   |
| Retained earnings                                     |   |                                   | 121,985 |                                   |   | 114,330 |   |   | 108,030 |   |   | 100,301 |   |
| Net              unrealized gain on marketable securities  |   |                                   | 294     |                                   |   | 569 |   |   | 354 |   |   | 629 |   |
| Total                Stockholders' Equity                  |   |                                   | 8,904   |                                   |   | 1,524 |   |   | 15,099 |   |   | 7,645 |   |
| Total                Liabilities and Stockholders'Equity   |   |                                   | 315,562 |                                   |   | 321,711 |   |   | 318,347 |   |   | 324,413 |   |

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|                                                     |   |  For                the Years Ended December 31, |
|-----------------------------------------------------|--------|-------------------------------------------------------|
|                                                |   |  2005                                       |   |  2004  |   |  2003 |   |
| Cash              Flows Data:                       |   | As                                                    |   |   |   | As |   |   |   | As  |   |   |   |
|                                                |   | Previously                                            |   | As |   | Previously |   | As           |   | Previously |   | As  |   |
|                                                |   | Reported                                              |   | Restated |   | Reported  |   | Restated  |   | Reported  |   | Restated  |   |
|                                                |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash              Flows from Operating Activities   |   |  $                                               | 24,082 |   |  $ | 24,156 |   |  $ | 22,559 |   |  $ | 23,478 |   |  $ | 16,085 |   |  $ | 16,075 |   |
| Net              Income                             |   |                                                  | 4,023 |   |   | 4,091 |   |   | (116 | )  |   | 578 |   |   | (2,390 | )  |   | (2,414 | ) |
| Deferred              income taxes                  |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Changes              in operating assets and        |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| liabilities-                                        |   |                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Receivables                                         |   |                                                  | (7,967 | ) |   | (7,981 | )  |   | 2,026 |   |   | 1,990 |   |   | 2,919 |   |   | 2,984 |   |
| Deferred              revenues                      |   |                                                  | 5,979 |   |   | 5,988 |   |   | (2,824 | )  |   | (4,136 | )  |   | (4,215 | )  |   | (4,417 | )  |
| Deferred              selling expenses              |   |                                                  | (897 | ) |   | (968 | )  |   | 1,151 |   |   | 1,131 |   |   | 1,199 |   |   | 1,190 |   |
|  Other assets              and liabilities-net |   |                                                  |  (1,001 | )  |   |  (1,067 | )  |   |  494 |   |   |  249 |   |   |  197 |   |   |  377 |   |

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Table          of Contents

|                                                    |   |  Pension                Benefits |    | Other                Postretirement  Benefits |   |
|---------------------------------------------------------|--------|---------------------------------------|---------|----------------------------------------------------|--------|
|                                                    |   | 2005                                  |    | 2004                                               |   | 2005 |   | 2004 |   |
| Change                in projected benefit obligation:  |   |                                  |    |                                               |   |   |   |   |   |
| Benefit                obligation -- January 1          |   | $                                     | 177,043 |                                               | $      | 160,697 |   | $ | 128,744 |   | $ | 87,168 |   |
| Service                cost                             |   |                                  | 7,814   |                                               |   | 7,677 |   |   | 4,936 |   |   | 4,345 |   |
| Interest                cost                            |   |                                  | 9,961   |                                               |   | 9,451 |   |   | 7,361 |   |   | 6,294 |   |
| Actuarial                loss                           |   |                                  | 3,939   |                                               |   | 6,944 |   |   | 1,948 |   |   | 34,141 |   |
| Benefits                paid                            |   |                                  | (7,868  | )                                                  |   | (7,726 | ) |   | (3,066 | ) |   | (2,816 | ) |
| Curtailments                                            |   |                                  | ---     |                                               |   | --- |   |   | --- |   |   | (388 | ) |
| Benefit                obligation -- December 31        |   |                                  | 190,889 |                                               |   | 177,043 |   |   | 139,923 |   |   | 128,744 |   |
| Change                in plan assets:                   |   |                                  |    |                                               |   |   |   |   |   |   |   |   |   |
| Fair                value of plan assets -- January 1   |   |                                  | 126,920 |                                               |   | 106,557 |   |   | 24,087 |   |   | 21,934 |   |
| Actual                return on plan assets             |   |                                  | 6,440   |                                               |   | 13,915 |   |   | 963 |   |   | 2,153 |   |
| Employer                contribution                    |   |                                  | 14,000  |                                               |   | 14,000 |   |   | --- |   |   | --- |   |
| Benefits                paid                            |   |                                  | (7,694  | )                                                  |   | (7,552 | ) |   | --- |   |   | --- |   |
| Fair                value of plan assets -- December 31 |   |                                  | 139,666 |                                               |   | 126,920 |   |   | 25,050 |   |   | 24,087 |   |
| Funded                status                            |   |                                  | (51,223 | )                                                  |   | (50,123 | ) |   | (114,873 | ) |   | (104,657 | ) |
| Unrecognized                net loss                    |   |                                  | 38,008  |                                               |   | 30,892 |   |   | 46,934 |   |   | 46,375 |   |
| Unrecognized                prior service cost          |   |                                  | 619     |                                               |   | 681 |   |   | (71 | ) |   | (125 | ) |
| Net                amount recognized                    |   | $                                     | (12,596 | )                                                  | $      | (18,550 | ) | $ | (68,010 | ) | $ | (58,407 | ) |
|                                                    |   |                                  |    |                                               |   |   |   |   |   |   |   |   |   |
| Assumed                discount rate                    |   |                                  | 5.5%    |                                               |   | 5.7% |   |   | 5.5% |   |   | 5.7% |   |
| Assumed                rate of compensation increase    |   |                                  | 4.75%   |                                               |   | 5.0% |   |   | --- |   |   | --- |   |

|                                                  |   |  Pension                Benefits  |    | Other                Postretirement Benefits                                       |   |
|-------------------------------------------------------|--------|---------------------------------------------|---------|------------------------------------------------------------------------------------|--------|
|                                                  |   |  2005                                  |    |  2004             |   |  2005     |   |  2004 |   |
| Accrued                benefit liability              |   | $                                           | (14,248 | )                                                                                  | $      | (18,550 | ) | $ | (68,010 | ) | $ | (58,407 | ) |
| Intangible                asset                       |   |                                        | 643     |                                                                               |   | --- |   |   | --- |   |   | --- |   |
| Accumulated                other comprehensive income |   |                                        | 1,009   |                                                                               |   | --- |   |   | --- |   |   | --- |   |
| Net                amount recognized                  |   | $                                           | (12,596 | )                                                                                  | $      | (18,550 | ) | $ | (68,010 | ) | $ | (58,407 | ) |

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|                             |   |     |   | Other          |   |
|----------------------------------|--------|----------|--------|----------------|--------|
|                             |   | Pension  |   | Postretirement |   |
|                             |   | Benefits |   | Benefits       |   |
| 2006                             |   | $        | 8,095  |           | $      | 3,136 |   |
| 2007                             |   |     | 8,667  |           |   | 3,647 |   |
| 2008                             |   |     | 9,421  |           |   | 4,152 |   |
| 2009                             |   |     | 10,126 |           |   | 4,778 |   |
| 2010                             |   |     | 10,989 |           |   | 5,240 |   |
| Years                2011 - 2015 |   |     | 69,599 |           |   | 36,072 |   |

|                                          |   |                Pension                Benefits |    |
|-----------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------|---------|
|                                          |   | 2005                                                                                                                      |    | 2004 |   |
| Projected                benefit obligation   |   | $                                                                                                                         | 190,889 |   | $ | 177,043 |   |
| Accumulated                benefit obligation |   |                                                                                                                      | 153,914 |   |   | 139,611 |   |
| Fair                value of plan assets      |   |                                                                                                                      | 139,666 |   |   | 126,920 |   |

|                                                           |   | 2005   |    | 2004   |   | 2003   |   |
|----------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|
| Service                cost -- benefits earned during the year |   | $      | 7,814   |   | $      | 7,677  |   | $ | 6,974 |   |
| Interest                cost                                   |   |   | 9,961   |   |   | 9,451  |   |   | 8,784 |   |
| Expected                return on plan assets                  |   |   | (10,960 | )      |   | (8,822 | )      |   | (7,042 | ) |
| Voluntary                early retirement program              |   |   | ---     |   |   | ---    |   |   | 1,760 |   |
| Amortization                of net actuarial loss              |   |   | 1,343   |   |   | 1,250  |   |   | 1,261 |   |
| Amortization                of prior service cost              |   |   | 62      |   |   | 62     |   |   | 62 |   |
| Pension                expense                                 |   | $      | 8,220   |   | $      | 9,618  |   | $ | 11,799 |   |
| Assumed                discount rate                           |   |   | 5.7%    |   |   | 6.0%   |   |   | 6.5% |   |
| Assumed                rate of compensation increase           |   |   | 5.0%    |   |   | 5.0%   |   |   | 5.0% |   |
| Expected                long-term return on plan assets        |   |   | 8.5%    |   |   | 8.5%   |   |   | 8.5% |   |

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|                                                           |   | 2005   |   | 2004   |   | 2003   |   |
|----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
| Service                cost -- benefits earned during the year |   | $      | 4,936  |   | $      | 4,345  |   | $ | 3,140 |   |
| Interest                cost                                   |   |   | 7,361  |   |   | 6,294  |   |   | 4,599 |   |
| Expected                return on plan assets                  |   |   | (2,047 | )      |   | (1,864 | )      |   | (1,382 | ) |
| Amortization                of net actuarial loss              |   |   | 2,473  |   |   | 1,393  |   |   | --- |   |
| Amortization                of prior service cost              |   |   | (54    | )      |   | (54    | )      |   | (54 | ) |
| Curtailments                                                   |   |   | ---    |   |   | (388   | )      |   | --- |   |
| Other                postretirement benefits expense           |   | $      | 12,669 |   | $      | 9,726  |   | $ | 6,303 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |
| Assumed                discount rate                           |   |   | 5.7%   |   |   | 6.0%   |   |   | 6.5% |   |
| Expected                long-term return on plan assets        |   |   | 8.5%   |   |   | 8.5%   |   |   | 8.5% |   |

|                                   |   |  Pension                Benefits  |     | Other                Postretirement Benefits |   |
|----------------------------------------|--------|---------------------------------------------|----------|---------------------------------------------------|--------|
|                                   |   | 2005                                        |     | 2004                                              |   | 2005 |   | 2004 |   |
| Equity                securities       |   |                                        | 65%      |                                              |   | 64% |   |   | 69% |   |   | 69% |   |
| Fixed                income securities |   |                                        |  29 |                                              |   | 29 |   |   | 30 |   |   | 27 |   |
| Cash                equivalents        |   |                                        |  6  |                                              |   | 7 |   |   | 1 |   |   | 4 |   |
| Total                                  |   |                                        | 100%     |                                              |   | 100% |   |   | 100% |   |   | 100% |   |

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Table          of Contents

|                                     |   |  December                31, |    |
|------------------------------------------|--------|-----------------------------------|---------|
|                                     |   | 2005                              |    | 2004 |   |
| Cash                and cash equivalents |   | $                                 | 9,056   |   | $ | 8,442 |   |
| Short-term                investments    |   |                              | 11,731  |   |   | 11,752 |   |
| Marketable                securities     |   |                              | 97,898  |   |   | 99,817 |   |
| Total                                    |   | $                                 | 118,685 |   | $ | 120,011 |   |

|                                           |   | 2005   |   | 2004   |   | 2003  |   |
|------------------------------------------------|--------|--------|--------|--------|--------|-------|--------|
| Interest                income                 |   | $      | 3,284  |   | $      | 2,859 |   | $ | 2,882 |   |
| Dividend                income                 |   |   | 501    |   |   | 540   |   |   | 588 |   |
| Net                gain on sales of securities |   |   | 347    |   |   | 314   |   |   | 1,174 |   |
| Total                                          |   | $      | 4,132  |   | $      | 3,713 |   | $ | 4,644 |   |

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Table          of Contents

|                                  |   | AmortizedCost    |    | GrossUnrealized |   | GrossUnrealizedLosses |   | Fair        |   |
|---------------------------------------|--------|------------------|---------|-----------------|--------|-----------------------|--------|-------------|--------|
| December                31,2005  |   | (Restated)  |    | Gains           |   | (Restated)       |   | Value  |   |
| Equity                securities      |   | $                | 14,638  |            | $      | 1,085                 |   | $           | (55    | ) | $ | 15,668 |   |
| Municipal                bonds        |   |             | 86,396  |            |   | 633              |   |        | (792   | ) |   | 86,237 |   |
| Corporate                debt         |   |             | 7,722   |            |   | 53                    |   |        | (51    | ) |   | 7,724 |   |
| Total                                 |   | $                | 108,756 |            | $      | 1,771                 |   | $           | (898   | ) | $ | 109,629 |   |

|                                   |   | AmortizedCost    |    | GrossUnrealized |   | GrossUnrealizedLosses |   | Fair        |   |
|----------------------------------------|--------|------------------|---------|-----------------|--------|-----------------------|--------|-------------|--------|
| December                31, 2004  |   | (Restated)  |    | Gains      |   | (Restated)       |   | Value  |   |
| Equity                securities       |   | $                | 15,244  |            | $      | 1,081                 |   | $           | (206   | ) | $ | 16,119 |   |
| Municipal                bonds         |   |             | 91,941  |            |   | 780                   |   |        | (828   | ) |   | 91,893 |   |
| Corporate                debt          |   |             | 3,418   |            |   | 151                   |   |        | (12    | ) |   | 3,557 |   |
| Total                                  |   | $                | 110,603 |            | $      | 2,012                 |   | $           | (1,046 | ) | $ | 111,569 |   |

|                                 |   |        |   |  Gross                Unrealized Losses |   |
|--------------------------------------|--------|-------------|--------|----------------------------------------------|--------|
|                                 |   |        |   |                                         |   |  More                than |   |
|                                 |   |  Fair  |   |  Less                than               |   |  12                Months |   |
| December              31, 2005  |   | Value  |   | 12                Months                |   | (Restated)  |   |
|  Equity              Securities |   | $           | 3,187  |                                         | $      | --- |   | $ | (55 | ) |
|  Municipal              bonds   |   |        | 53,419 |                                         |   | (233 | ) |   | (559 | ) |
|  Corporate              Debt    |   |        | 5,242  |                                         |   | (27 | ) |   | (24 | ) |
|  Total                          |   | $           | 61,848 |                                         | $      | (260 | ) | $ | (638 | ) |

|                                         |   |        |   |  Gross                  Unrealized Losses |   |
|----------------------------------------------|--------|-------------|--------|------------------------------------------------|--------|
|                                         |   |        |   |                                           |   |  More                  than |   |
|                                         |   | Fair        |   |  Less                  than               |   |  12                  Months |   |
|  December                31, 2004  |   | Value  |   | 12                  Months                |   | (Restated)  |   |
|  Equity                Securities       |   | $           | 6,280  |                                           | $      | --- |   | $ | (206 | ) |
|  Municipal                bonds         |   |        | 37,366 |                                           |   | (330 | ) |   | (498 | ) |
|  Corporate                Debt          |   |        | 1,167  |                                           |   | (9 | ) |   | (3 | ) |
|  Total                                  |   | $           | 44,813 |                                           | $      | (339 | ) | $ | (707 | ) |

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Table            of Contents

|                                      |   |  Amortized     |   |  Fair  |   |
|-------------------------------------------|--------|-----------------------------------------|--------|-------------|--------|
|                                      |   |  Cost                              |   |  Value |   |
|  Within              one year        |   | $                                       | 11,812 |        | $      | 11,731 |   |
|  One              through five years |   |                                    | 45,638 |        |   | 45,261 |   |
|  Five              through ten years |   |                                    | 18,758 |        |   | 18,939 |   |
|  Over              ten years         |   |                                    | 15,480 |        |   | 15,549 |   |
|  No              fixed maturity date |   |                                    | 2,430  |        |   | 2,481 |   |
| Total                                     |   | $                                       | 94,118 |        |   | 93,961 |   |

|                                              |   | 2005   |   | 2004   |   | 2003 |   |
|---------------------------------------------------|--------|--------|--------|--------|--------|------|--------|
| Gain                on sales of publishing assets |   | $      | --     |   | $      | 59   |   | $ | 739 |   |
| Loss                on disposals of assets        |   |   | (28    | )      |   | (103 | )      |   | (15 | ) |
| Total                                             |   | $      | (28    | )      | $      | (44  | )      | $ | 724 |   |

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Table          of Contents

|                                       |   |             Publishing    |   |  Printing |   |  Software |   |  Total |   |
|--------------------------------------------|--------|------------------------------------------------------------------------------------------------------|--------|----------------|--------|----------------|--------|-------------|--------|
| Balance,              January 1, 2003      |   | $                                                                                                    | 49,998 |           | $      | 917            |   | $           | 22,867 |   | $ | 73,782 |   |
| Business              acquisition purchase |   |                                                                                                 |   |           |   |           |   |        |   |   |   |   |   |
| price                adjustments           |   |                                                                                                 | ---    |           |   | ---            |   |        | 70     |   |   | 70 |   |
| Balance,              December 31, 2003    |   |                                                                                                 | 49,998 |           |   | 917            |   |        | 22,937 |   |   | 73,852 |   |
| Business              acquisition purchase |   |                                                                                                 |   |           |   |           |   |        |   |   |   |   |   |
| price                adjustments           |   |                                                                                                 | ---    |           |   | ---            |   |        | (400)  |   |   | (400) |   |
| Balance,              December 31, 2004    |   |                                                                                                 | 49,998 |           |   | 917            |   |        | 22,537 |   |   | 73,452 |   |
| Business              acquisition purchase |   |                                                                                                 |   |           |   |           |   |        |   |   |   |   |   |
| price                adjustments           |   |                                                                                                 | ---    |           |   | ---            |   |        | (86)   |   |   | (86) |   |
| Balance,              December 31, 2005    |   | $                                                                                                    | 49,998 |           | $      | 917            |   | $           | 22,451 |   | $ | 73,366 |   |

|                                                                           |   | 2005             |   | 2004             |   | 2003             |   |
|--------------------------------------------------------------------------------|--------|------------------|--------|------------------|--------|------------------|--------|
|                                                                           |   | (Restated)  |   | (Restated)  |   | (Restated)  |   |
| Income                Statement Provision for Income Taxes                     |   | $                | 16,085 |             | $      | 14,136           |   | $ | 9,100 |   |
| Stockholders'                Equity -- Change in:                              |   |             |   |             |   |             |   |   |   |   |
| Unrealized                gain (loss) on marketable securities                 |   |             | (33    | )                |   | 199              |   |   | 963 |   |
|     Foreign                currency translation adjustment |   |             | 77     |             |   | (27              | )      |   | (43 | )     |
|     Minimum                pension liability adjustment    |   |             | (412   | )                |   | ---              |   |   | --- |   |
| Total                                                                          |   | $                | 15,717 |             | $      | 14,308           |   | $ | 10,020 |   |

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Table          of Contents

|                                    |   | 2005             |   | 2004       |   | 2003       |   |
|-----------------------------------------|--------|------------------|--------|------------|--------|------------|--------|
|                                    |   |  (Restated) |   | (Restated) |   | (Restated) |   |
| Taxes                currently payable: |   |             |   |       |   |       |   |   |   |   |
| Federal                                 |   | $                | 9,828  |       | $      | 11,132     |   | $ | 9,407 |   |
| State                and local          |   |             | 2,164  |       |   | 2,402      |   |   | 2,269 |   |
|                                    |   |             | 11,992 |       |   | 13,534     |   |   | 11,676 |   |
| Deferred                tax provision:  |   |             |   |       |   |       |   |   |   |   |
| Federal                                 |   |             | 1,549  |       |   | 325        |   |   | (2,096 | ) |
| State                and local          |   |             | 2,544  |       |   | 277        |   |   | (480 | ) |
|                                    |   |             | 4,093  |       |   | 602        |   |   | (2,576 | ) |
| Total                                   |   | $                | 16,085 |       | $      | 14,136     |   | $ | 9,100 |   |

|                                                              |   |  Percent                of Pretax Income |                  |
|-------------------------------------------------------------------|--------|-----------------------------------------------|-----------------------|
|                                                              |   | 2005                                          |                  | 2004 |   | 2003 |   |
|                                                              |   | (Restated)                               |                  | (Restated)  |   | (Restated)  |   |
| Federal                statutory rate                             |   |                                          | 35.0%                 |   |   | 35.0% |   |   | 35.0% |   |
| State                and local income taxes, net of               |   |                                          |                       |   |   |  |   |   |  |   |
|     federal                income tax benefit |   |                                          | 4.7                   |   |   |  4.5 |   |   | 4.6 |   |
| Reduction              in net deferred tax assets                 |   |                                          | 2.9                   |   |   | ---  |   |   | --- |   |
| Others                                                            |   |                                          | ---                   |   |   | 0.7 |   |   | 0.6 |   |
| Tax                exempt interest exclusion                      |   |                                          | (2.4                ) |   |   | (2.4) |   |   | (3.7) |   |
| Dividends                received exclusion                       |   |                                          | (0.2                ) |   |   | (0.2) |   |   | (0.4) |   |
| Total                                                             |   |                                          | 40.0%                 |   |   | 37.6% |   |   | 36.1% |   |

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Table          of Contents

|                                                                        |   |  December                31, |   |
|-----------------------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                                        |   | 2005                              |   | 2004 |   |
|                                                                        |   | (Restated)                   |   | (Restated)  |   |
| Deferred                tax assets:                                         |   |                              |   |   |   |
|     Other                postretirement benefits        |   | $                                 | 26,329 |   | $ | 23,676 |   |
|     Pension                benefits                     |   |                              | 1,038  |   |   | 7,602 |   |
|     Minimum                pension liability adjustment |   |                              | 412    |   |   | --- |   |
|     Inventories                                         |   |                              | 1,614  |   |   | 1,533 |   |
|    Defered              revenues                                  |   |                              | 5,126  |   |   | 5,142 |   |
|     Annual                leave                         |   |                              | 2,052  |   |   | 2,354 |   |
|     Accounts                receivable allowances       |   |                              | 720    |   |   | 603 |   |
|     Medical                claims                       |   |                              | 1,255  |   |   | 1,179 |   |
|     Others                                              |   |                              | 1,468  |   |   | 2,108 |   |
| Total                deferred tax assets                                    |   |                              | 40,014 |   |   | 44,197 |   |
| Deferred                tax (liabilities):                                  |   |                              |   |   |   |   |   |
|     Capitalized                software                 |   |                              | (3,512 | ) |   | (4,441 | ) |
|     Deferred                selling expenses            |   |                              | (1,853 | ) |   | (1,466 | ) |
|     Others                                              |   |                              | (2,244 | ) |   | (2,162 | ) |
| Total                deferred tax (liabilities)                             |   |                              | (7,609 | ) |   | (8,069 | ) |
| Net                deferred tax assets                                      |   | $                                 | 32,405 |   | $ | 36,128 |   |

----

Table          of Contents

|                                                                                    |   |  2005       |   |  2004       |   |
|-----------------------------------------------------------------------------------------|--------|------------------|--------|------------------|--------|
|                                                                                    |   | (Restated)  |   | (Restated)  |   |
|  Receivables:                                                                      |   |             |        |             |   |   |   |
|      Customers                                                 |   | $                | 37,363 |             | $      | 29,738 |   |
|      Others                                                    |   |             | 3,058  |             |   | 3,257 |   |
|      Allowance              for              doubtful accounts |   |             | (2,596 | )                |   | (2,097 | ) |
|  Total                                                                             |   | $                | 37,825 |             | $      | 30,898 |   |

|                                                                             |   | 2005   |    | 2004   |   |
|----------------------------------------------------------------------------------|--------|--------|---------|--------|--------|
| Property                and equipment, at cost:                                  |   |   |    |   |   |
|     Land                                                     |   | $      | 4,250   |   | $      | 4,250 |   |
|     Buildings                and                improvements |   |   | 51,759  |   |   | 51,759 |   |
|     Furniture                and                equipment    |   |   | 47,840  |   |   | 46,693 |   |
|     Accumulated                depreciation                  |   |   | (77,140 | )      |   | (74,405 | ) |
| Total                                                                            |   | $      | 26,709  |   | $      | 28,297 |   |

| Intangible                  and other assets                                               |   |   |    |   |   |
|--------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|
| Amortizable                  assets:                                                       |   | 2005   |    | 2004   |   |
|     Gross                  carrying amount--                           |   |   |    |   |   |   |   |
|         Software                                   |   | $      | 30,368  |   | $      | 29,208 |   |
|         Customer                  lists            |   |   | 13,733  |   |   | 13,733 |   |
|         Copyrights                                 |   |   | 9,145   |   |   | 9,145 |   |
|         Deferred                  pension expenses |   |   | 643     |   |   | --- |   |
|         Others                                     |   |   | 2,182   |   |   | 2,182 |   |
|                                                                                       |   |   | 56,071  |   |   | 54,268 |   |
| Accumulated                  amortization--                                                |   |   |    |   |   |   |   |
|         Software                                   |   |   | (19,247 | )      |   | (15,555 | ) |
|         Customer                  lists            |   |   | (12,285 | )      |   | (10,632 | ) |
|         Copyrights                                 |   |   | (4,716  | )      |   | (3,801 | ) |
|         Others                                     |   |   | (1,209  | )      |   | (1,043 | ) |
|                                                                                       |   |   | (37,457 | )      |   | (31,031 | ) |
| Net                  intangible assets                                                     |   |   | 18,614  |   |   | 23,237 |   |
| Other                  assets                                                              |   |   | 899     |   |   | 141 |   |
| Total                                                                                      |   | $      | 19,513  |   | $      | 23,378 |   |

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Table          of Contents

|                                                                                 |   | 2005   |   | 2004   |   |
|--------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|
| Inventories:                                                                         |   |   |   |   |   |
|     Materials                    and                    supplies |   | $      | 1,856  |   | $      | 2,130 |   |
|     Work                    in                    process        |   |   | 308    |   |   | 304 |   |
|     Finished                    goods                            |   |   | 1,042  |   |   | 1,101 |   |
| Total                                                                                |   | $      | 3,206  |   | $      | 3,535 |   |

|                                                                            |   | 2005   |   | 2004   |   |
|---------------------------------------------------------------------------------|--------|--------|--------|--------|--------|
| Payables                and accrued liabilities:                                |   |   |   |   |   |   |   |
|     Accounts                payable                         |   | $      | 17,833 |   | $      | 18,324 |   |
|     Employee                compensation and benefits       |   |   | 15,804 |   |   | 15,239 |   |
|     Postretirement                benefits, current portion |   |   | 15,783 |   |   | 9,439 |   |
|     Income                taxes                             |   |   | 1,726  |   |   | 1,961 |   |
| Total                                                                           |   | $      | 51,146 |   | $      | 44,963 |   |

|                                                          |   |  December                31, |   |
|---------------------------------------------------------------|--------|-----------------------------------|--------|
|                                                          |   | 2005                              |   | 2004 |   |
| Notes                payable, unsecured, 8.15%, due 2006-2010 |   | $                                 | 37,500 |   | $ | 45,000 |   |
| Notes                payable, unsecured, 6.99%, due 2007-2011 |   |                              | 25,000 |   |   | 25,000 |   |
| Total                term debt                                |   |                              | 62,500 |   |   | 70,000 |   |
| Less                current portion                           |   |                              | (7,500 | ) |   | (7,500 | ) |
| Long-term                portion                              |   | $                                 | 55,000 |   | $ | 62,500 |   |

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Table          of Contents

*. *

*Accounting for Stock Issued to        Employees*
*Accounting for Stock-Based Compensation*
* *
* *
*Accounting for        Stock-Based Compensation - Transition and Disclosure, an amendment of FASB        Statement No. 123, *

*Accounting for Stock-Based        Compensation.*
*Accounting for Stock Issued to Employees*

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Table            of Contents

|                                             |   |  Treasury                Stock Shares |       |
|--------------------------------------------------|--------|--------------------------------------------|------------|
|                                             |   | Class                A                     |       | Class                B |   | Class                C |   |
| Balance,                January 1, 2003          |   |                                       | 14,664,851 |   |   | 6,350,449 |   |   | 1,229,359 |   |
| Sales                to employees                |   |                                       | (776,526   | ) |   | --- |   |   | --- |   |
| Repurchases                                      |   |                                       | 464,773    |   |   | 717,614 |   |   | 863,228 |   |
| Conversions                of Class A to Class B |   |                                       | 1,266,913  |   |   | (1,266,913 | ) |   | --- |   |
| Balance,                December 31, 2003        |   |                                       | 15,620,011 |   |   | 5,801,150 |   |   | 2,092,587 |   |
| Sales                to employees                |   |                                       | (560,355   | ) |   | --- |   |   | --- |   |
| Repurchases                                      |   |                                       | 812,230    |   |   | 1,255,756 |   |   | 426,653 |   |
| Conversions                of Class A to Class B |   |                                       | 473,375    |   |   | (473,375 | ) |   | --- |   |
| Balance,                December 31, 2004        |   |                                       | 16,345,261 |   |   | 6,583,531 |   |   | 2,519,240 |   |
| Sales                to employees                |   |                                       | (910,735   | ) |   | --- |   |   | --- |   |
| Repurchases                                      |   |                                       | 592,751    |   |   | 1,832,846 |   |   | --- |   |
| Conversions                of Class A to Class B |   |                                       | 1,021,449  |   |   | (1,021,449 | ) |   | --- |   |
| Balance,                December 31, 2005        |   |                                       | 17,048,726 |   |   | 7,394,928 |   |   | 2,519,240 |   |

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Table          of Contents

|                                                           |   | 2005   |   | 2004   |   | 2003   |   |
|----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
| Holding                gains on securities                     |   |   |   |   |   |   |   |   |   |   |
|     arising                during the year |   | $      | 254    |   | $      | 884    |   | $ | 3,931 |   |
| Less                net gains included in net income           |   |   | 347    |   |   | 314    |   |   | 1,174 |   |
| Changes                in unrealized gains                     |   |   | (93    | )      |   | 570    |   |   | 2,757 |   |
| Less                income taxes                               |   |   | (33    | )      |   | 199    |   |   | 963 |   |
| Net                unrealized gains (losses)                   |   |   | (60    | )      |   | 371    |   |   | 1,794 |   |
| Currency                translation gains (losses)             |   |   | 220    |   |   | (77    | )      |   | (122 | ) |
| Less                income taxes                               |   |   | 77     |   |   | (27    | )      |   | (43 | ) |
| Net                currency translation gains (losses)         |   |   | 143    |   |   | (50    | )      |   | (79 | ) |
| Minimum                pension liability adjustment            |   |   | (1,009 | )      |   | ---    |   |   | --- |   |
| Less                income taxes                               |   |   | (412   | )      |   | ---    |   |   | --- |   |
| Net                minimum pension liability adjustment        |   |   | (597   | )      |   | ---    |   |   | --- |   |
| Other                comprehensive income (loss)               |   | $      | (514   | )      | $      | 321    |   | $ | 1,715 |    |

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Table          of Contents

|                                            |   | (Restated)  |    |
|-------------------------------------------------|--------|------------------|---------|
| Year                Ended December 31, 2005     |   | Publishing       |    | Printing |   | Software |   | Total |   |
| Revenues                from external customers |   | $                | 272,619 |   | $ | 31,024 |   | $ | 25,393 |   | $ | 329,036 |   |
| Intersegment                revenues            |   |             | ---     |   |   | 10,773 |   |   | 2,416 |   |   | 13,189 |   |
| Operating                profit                 |   |             | 32,666  |   |   | 3,012 |   |   | 6,366 |   |   | 42,044 |   |
| Interest                expense                 |   |             | 6,032   |   |   | 9 |   |   | --- |   |   | 6,041 |   |
| Identifiable                assets              |   |             | 275,582 |   |   | 18,427 |   |   | 47,469 |   |   | 341,478 |   |
| Depreciation                and amortization    |   |             | 7,659   |   |   | 921 |   |   | 1,182 |   |   | 9,762 |   |
| Capital                expenditures             |   |             | 2,025   |   |   | 889 |   |   | 22 |   |   | 2,936 |   |

|                                            |   | (Restated)  |    |
|-------------------------------------------------|--------|------------------|---------|
| Year                Ended December 31, 2004     |   | Publishing       |    | Printing |   | Software |   | Total |   |
| Revenues                from external customers |   | $                | 272,619 |   | $ | 26,814 |   | $ | 23,171 |   | $ | 322,604 |   |
| Intersegment                revenues            |   |             | ---     |   |   | 10,903 |   |   | 2,299 |   |   | 13,202 |   |
| Operating                profit                 |   |             | 35,034  |   |   | 392 |   |   | 4,139 |   |   | 39,565 |   |
| Interest                expense                 |   |             | 5,717   |   |   | 21 |   |   | --- |   |   | 5,738 |   |
| Identifiable                assets              |   |             | 280,213 |   |   | 17,010 |   |   | 43,892 |   |   | 341,115 |   |
| Depreciation                and amortization    |   |             | 7,636   |   |   | 871 |   |   | 1,775 |   |   | 10,282 |   |
| Capital                expenditures             |   |             | 5,375   |   |   | 350 |   |   | 36 |   |   | 5,761 |   |

|                                            |   | (Restated)  |
|-------------------------------------------------|--------|------------------|
| Year                Ended December 31, 2003     |   | Publishing       |   | Printing |   | Software |   | Total |   |
| Revenues                from external customers |   | $                | 266,045 |   | $ | 21,333 |   | $ | 24,584 |   | $ | 311,962 |   |
| Intersegment                revenues            |   |             | --- |   |   | 12,536 |   |   | 2,507 |   |   | 15,043 |   |
| Operating                profit (loss)          |   |             | 23,984 |   |   | (283 | ) |   | 1,816 |   |   | 25,517 |   |
| Interest                expense                 |   |             | 5,815 |   |   | 50 |   |   | --- |   |   | 5,865 |   |
| Identifiable                assets              |   |             | 288,372 |   |   | 17,023 |   |   | 40,132 |   |   | 345,527 |   |
| Depreciation                and amortization    |   |             | 9,034 |   |   | 901 |   |   | 4,357 |   |   | 14,292 |   |
| Capital                expenditures             |   |             | 4,759 |   |   | 183 |   |   | 476 |   |   | 5,418 |   |

|                                                          |   | (Restated)  |
|---------------------------------------------------------------|--------|------------------|
|                                                          |   | 2005             |   | 2004 |   | 2003 |   |
| Total                interest expense for reportable segments |   | $                | 6,041 |   | $ | 5,738 |   | $ | 5,865 |   |
| Elimination                of intersegment interest expense   |   |             | (134 | ) |   | (118 | ) |   | (155 | ) |
| Consolidated                interest expense                  |   | $                | 5,907 |   | $ | 5,620 |   | $ | 5,710 |   |
|                                                          |   |             |   |   |   |   |   |   |   |   |
| Total                assets for reportable segments           |   | $                | 341,478 |   | $ | 341,115 |   | $ | 345,527 |   |
| Elimination                of intersegment assets             |   |             | (19,767 | ) |   | (16,702 | ) |   | (8,786 | ) |
| Consolidated                assets                            |   | $                | 321,711 |   | $ | 324,413 |   | $ | 336,741 |   |

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Table          of Contents

| Column                  A                                    |   | Column                  B   |   | Column                  C   |   | Column                  D   |    | Column                  E |                     |
|--------------------------------------------------------------|--------|-----------------------------|--------|-----------------------------|--------|-----------------------------|---------|---------------------------|--------------------------|
|                                                         |   |                        |   | Additions                   |   |                        |    |                      |                     |
|                                                         |   |                        |   | (1)                         |   | (2)                         |    |                      |                     |   |   |
|                                                         |   |                        |   |                        |   | Charged                  to |    |                      |                     |   |   |
|                                                         |   | Balance                  at |   | Charged                  to |   | Other                       |    |                      |                     | Balance                  at |   |
|                                                         |   | Beginning                   |   | Costs                  and  |   | Accounts--                  |    | Deductions--              |                     | End                  of |   |
| Description                                                  |   | of                  Period  |   | Expenses                    |   | Describe                    |    | Describe                  |                     | Period |   |
|                                                         |   |                        |   |                        |   |                        |    |                      |                     |   |   |
| VALUATION                  ACCOUNTS DEDUCTED                 |   |                        |   |                        |   |                        |    |                      |                     |   |   |
| FROM                  ASSETS TO WHICH THEY APPLY:            |   |                        |   |                        |   |                        |    |                      |                     |   |   |
|                                                         |   |                        |   |                        |   |                        |    |                      |                     |   |   |
| Allowance                  for Doubtful Accounts Receivable: |   |                        |   |                        |   |                        |    |                      |                     |   |   |
| Year                  ended December 31, 2005                |   | $                           | 2,097  |                        | $      | 537                         |    | $                         | 190                  (a  | ) | $ | 228                  (b | ) | $ | 2,596 |   |
| Year                  ended December 31, 2004                |   |                        | 2,135  |                        |   | 917                         |    |                      | (52)                  (a | ) |   | 903                  (b | ) |   | 2,097 |   |
| Year                  ended December 31, 2003                |   |                        | 2,015  |                        |   | 755                         |    |                      | 272                  (a  | ) |   | 908                  (b | ) |   | 2,135 |   |
|                                                         |   |                        |   |                        |   |                        |    |                      |                     |   |   |   |   |   |   |   |
| Allowance                  for Obsolete Inventory:           |   |                        |   |                        |   |                        |    |                      |                     |   |   |   |   |   |   |   |
| Year                  ended December 31, 2005                |   | $                           | 561    |                        | $      | 27                          |    |                      |                     |   |   |   |   | $ | 588 |   |
| Year                  ended December 31, 2004                |   |                        | 535    |                        |   | 26                          |    |                      |                     |   |   |   |   |   | 561 |   |
| Year                  ended December 31, 2003                |   |                        | 448    |                        |   | 87                          |    |                      |                     |   |   |   |   |   | 535 |   |
|                                                         |   |                        |   |                        |   |                        |    |                      |                     |   |   |   |   |   |   |   |
| Allowance                  for Deferred Tax Assets:          |   |                        |   |                        |   |                        |    |                      |                     |   |   |   |   |   |   |   |
| Year                  ended December 31, 2005                |   | $                           | 254    |                        | $      | 19                          |    |                      |                     |   |   |  |   | $ | 273 |   |
| Year                  ended December 31, 2004                |   |                        | 293    |                        |   | (39                         | )  |                      |                     |   |   |   |   |   | 254 |   |
| Year                  ended December 31, 2003                |   |                        | 163    |                        |   | 130                         |    |                      |                     |   |   |   |   |   | 293 |   |

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Table              of Contents

Changes        in and        Disagreements with Accountants on Accounting and Financial        Disclosure

Controls        and        Procedures

*Internal Control -              Integrated Framework. *

----

Table                of Contents

| ·   | The                        Company’s policies and procedures did not provide for sufficiently                        detailed, periodic review by the Company's accounting group of the                        software division’s operations to provide adequate knowledge of the extent                        of post-sale support obligations in order to account for                        revenues in                        accordance with generally accepted accounting                        principles. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | The                        Company lacked adequate personnel with technical expertise                        to identify                        complex sales transactions that require an in-depth technical                        accounting                        analysis to ensure that revenues are accounted for in accordance                        with                        generally accepted accounting                        principles. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*(c)              Remediation of Material Weaknesses*

*(d)              Changes in Internal Control Over Financial Reporting. *

 

 
Other        Information

----

Table            of Contents

Directors        and Executive Officers of the Registrant

**"I. Election of Directors"**
**"Biographical Sketches of Nominees,"**

*www.bna.com*
*. *

Executive        Compensation

**"III. Executive Compensation"**
**"V. Employee Benefit Plans"**

Security Ownership        of        Beneficial Owners and Management

**"I. Election of Directors"**

Certain Relationships        and Related Transactions

**"III. Executive Compensation"**

Principal        Accounting Fees and Services

**"IV. Audit Committee Report"**

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Table            of Contents

Exhibits          and Financial Statement Schedules

| (a)                    (1)       | Financial                    Statements                                                                             | Page                                                                                                       |
|----------------------------------|---------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|
|                             | Reports                    of Independent Registered Public Accounting Firm                                         | 20                                                                                                         |
|                             |                                                                                                                |                                                                                                       |
|                             | Condolidated                    Statements of Income for the years                                                  |                                                                                                       |
|                             |     ended                    December 31, 2005, 2004 , and 2003 (restated)                      | 23                                                                                                         |
|                             | Consolidated                    Balance Sheets as of December 31, 2005                                              |                                                                                                       |
|                             | and                    2004 (restated)                                                                         |                                   24 |
|                             | Consolidated                    Statements of Cash Flows for the years                                              |                                                                                                       |
|                             | ended                    December 31, 2005, 2004 and 2003 (restated)                                           |                                   26 |
|                             | Consolidated                    Statements of Changes in Stockholder's Equity                                       |                                                                                                       |
|                             |     and                    Comprehensive Income for the years                                   |                                                                                                       |
|                             |     ended                    December 31, 2005, 2004 and 2003 (restated)                        | 28                                                                                                         |
|                             | Notes                    to Consolidated Financial Statements                                                       | 29                                                                                                         |
|                             |                                                                                                                |                                                                                                       |
|     (2)      | Financial                    Statement Schedule:                                                                    |                                                                                                       |
|      II | Valuation                    and Qualifying Accounts and Reserves                                                   |                                                                                                       |
|                             |     for                    the                    years ended December 31, 2005, 2004, and 2003 | 48                                                                                                         |

| (a)                    (3) | Exhibits                                                                                                                                       |
|----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|
|                       |                                                                                                                                           |
| 3.1                        | Certificate                    of Incorporation, as amended*                                                                                   |
|                       |                                                                                                                                           |
| 3.2                        | By                    laws, as amended.**                                                                                                      |
|                       |                                                                                                                                           |
| 11                         | Statement                    re: Computation of Per Share Earnings is contained in the                    2005                                 |
|                       | Consolidated                    financial Statements in the Notes to Consolidated  Financial                    Statements,               |
|                       | Note                  12, "Stockholders' Equity"                                                                                          |
|                       |                                                                                                                                           |
| 21                         | Subsidiaries                    of Registrant.***                                                                                              |
|                       |                                                                                                                                           |
| 23.1                  | Consent                  of Independent Registered Public Accounting Firm                                                            |
|                       |                                                                                                                                           |
| 31.1                       | Certification                    of the Chief Executive Officer pursuant to Section 302                                                        |
|                       | of                    the Sarbanes-Oxley Act of 2002, 18 U.S.C. section 1350.                                                                  |
|                       |                                                                                                                                           |
| 31.2                       | Certification                    of the Chief Financial Officer pursuant to Section 302                                                        |
|                       | of                    the Sarbanes-Oxley Act of 2002, 18 U.S.C. section 1350                                                                   |
|                       |                                                                                                                                           |
| 32.1                       | Certification                    of the Chief Executive Officer pursuant to Section 906                                                        |
|                       | of                    the Sarbanes-Oxley Act of 2002, 18 U.S.C. section 1350                                                                   |
|                       |                                                                                                                                           |
| 32.2                       | Certification                    of the Chief Financial Officer pursuant to Section 906                                                        |
|                       | of                    the Sarbanes-Oxley Act of 2002, 18 U.S.C. section 1350                                                                   |
|                       |                                                                                                                                           |
| 99.1                       | Proxy                    Statement for the Annual Meeting of security                    holders held on April 15,                    2006**** |

----

Table              of Contents

| *      | Incorporated                    by reference to the Company’s 2001 Form 10-K                                |
|--------|-------------------------------------------------------------------------------------------------------------------|
|   | Commission                    File Number 2-28286, filed on March 29, 2002.                                       |
|   | The                    exhibit number indicated above corresponds to the                                          |
|   | exhibit                    number in that filing.                                                                 |
|   |                                                                                                              |
| **     | Incorporated                    by reference to the 8K filed by the Company on                                    |
|   | September                    8, 2005. The exhibit number indicated above corresponds                              |
|   | to                    the exhibit number in that filing.                                                          |
|   |                                                                                                              |
| ***    | Filed                    herewith                                                                                 |
|   |                                                                                                              |
| ****   | Incorporated                    by reference to the Company’s Definitive Proxy Statement                    |
|   | filed                    with the SEC on March 23, 2006.                                                          |
|   |                                                                                                              |
|   | Upon                    written or oral request to the Company’s General Counsel, a                    copy |
|   | of                    any of the above exhibits will be furnished at                    cost.                     |

----

Table              of Contents

SIGNATURES

|  By:  s/Paul N. Wojcik                                                                               | By:   s/George                    J.                    Korphage                                     |
|----------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|
|          Paul N.                      Wojcik                      |          George                    J. Korphage,                        |
|          President                    and Chief Executive Officer |          Vice                    President and Chief Financial Officer |
|          Director                                                 |         (Chief                    Acounting Officer)                        |
|                                                                                                           |          Director                                                      |
|                                                                                                           |                                                                                                                |
|  Date:  12/20/06                                                                                     |  Date: 12/20/06                                                                                           |

|  By:              s/Sandra Degler                                                                       | 12/20/06       |  By:               s/Gregory C. Mcaffrey                                      | 12/20/06       |
|--------------------------------------------------------------------------------------------------------------|----------------|-----------------------------------------------------------------------------------------|----------------|
|         Sandra              C.              Degler              |  Date     |          Gregory              C. McCaffrey |  Date     |
|         Chairman              of the              Board of Directors |           |          Director                          |           |
|                                                                                                         |           |                                                                                    |           |
|  By:              s/Paul A. Blakely                                                                     |  12/20/06 |  By:                                                                          |           |
|          Paul              A.              Blakely              |  Date     |          Jonathan              Newcomb     |  Date     |
|          Director                                               |           |          Director                          |           |
|                                                                                                         |           |                                                                                    |           |
|  By:              s/Cynthia J. Bolbach                                                                  | 12/20/06       |  By:               s/Susan E. Rice                                            |  12/20/06 |
|          Cynthia              J. Bolbach                        |  Date     |          Susan                E. Rice      |  Date     |
|          Director                                               |           |          Director                          |           |
|                                                                                                         |           |                                                                                    |           |
|  By:              s/Eunice Lin Bumgardner                                                               | 12/20/06       |  By:               s/Ellen Taus                                               |  12/20/06 |
|          Eunice              Lin Bumgardner                     |  Date     |          Ellen              Taus           |  Date     |
|          Director                                               |           |          Director                          |           |
|                                                                                                         |           |                                                                                    |           |
|  By:               s/Neil R. Froemming                                                             |  12/20/06 |  By:               s/Daneil W. Toohey                                         |  12/20/06 |
|          Neil              R. Froemming                         |  Date     |          Daniel              W. Toohey     |  Date     |
|          Director                                               |           |          Director                          |           |
|                                                                                                         |           |                                                                                    |           |
|  By:              s/Gerald S. Hobbs                                                                     |  12/20/06 |  By:               s/Robert L. Velte                                          |  12/20/06 |
|          Gerald              S. Hobbs                           |  Date     |          Robert              L. Velte      |  Date     |
|          Director                                               |           |          Director                          |           |
|                                                                                                         |           |                                                                                    |           |
|  By:               s/Margaret S. Hullinger                                                         |  12/20/06 |                                                                                    |           |
|          Margaret              S. Hullinger                     |  Date     |                                                                                    |           |
|          Director                                               |           |                                                                                    |           |

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Table          of Contents

| Number                           |   | Exhibit                Description                                                                                      | Sequential                Page |
|----------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------|--------------------------------|
|                             |   |                                                                                                                    |  Number                   |
|                             |   |                                                                                                                    |                           |
| 3.1                              |   | Certificate                of Incorporation, as amended                                                                 |  *                        |
|                             |   |                                                                                                                    |                           |
|     3.2      |   | By                laws, as amended                                                                                      |  *                *       |
|                             |   |                                                                                                                    |                           |
|     11       |   | Statement                re: Computation of Per Share Earnings is contained in the                2005                  |                           |
|                             |   |     Consolidated                financial Statements in the Notes to Consolidated  Financial   |                           |
|         |   |     Statements              ,              Note 12 "Stockholders Equity,"                           | 44                             |
|                             |   |                                                                                                                    |                           |
|     21       |   | Subsidiaries                of Registrant                                                                               | 56                             |
|                             |   |                                                                                                                    |                           |
|                  23.1  |   | Consent              of Independent Registered Public              Accounting Firm                            | 57                        |
|                             |   |                                                                                                                    |                           |
|     31.1     |   | Certification                of the Chief Executive Officer pursuant to                Section 302                      |                           |
|                             |   |     of                the                Sarbanes-Oxley Act of 2002, 18 U.S.C. section 1350.        | 58                             |
|                             |   |                                                                                                                    |                           |
|     31.2     |   | Certification                of the Chief Financial Officer pursuant to                Section 302                      |                           |
|                             |   |     of                the                Sarbanes-Oxley Act of 2002, 18 U.S.C. section 1350         | 59                             |
|                             |   |                                                                                                                    |                           |
|     32.1     |   | Certification                of the Chief Executive Officer pursuant to                Section 906                      |                           |
|                             |   |     of                the Sarbanes-Oxley Act of 2002, 18 U.S.C. section 1350                        | 60                             |
|                             |   |                                                                                                                    |                           |
|     32.2     |   | Certification                of the Chief Financial Officer pursuant to                Section 906                      |                           |
|                             |   |     of                the Sarbanes-Oxley Act of 2002, 18 U.S.C. section 1350                        | 61                             |
|                             |   |                                                                                                                    |                           |
|     99.1     |   | Proxy                Statement for the Annual Meeting of security holders held on April                15, 2006*** |                           |
|                             |   |                                                                                                                    |                           |
| *                                |   | Incorporated                by reference to the Company’s 2001 Form 10-K                                          |                           |
|                             |   | Commission                File Number 2-28286, filed on March 29, 2002.                                                 |                           |
|                             |   | The                exhibit number indicated above corresponds to the                                                    |                           |
|                             |   | exhibit                number in that filing.                                                                           |                           |
|                             |   |                                                                                                                    |                           |
|  **                         |   | Incorporated              by reference to the 8-K filed by the Company                                                  |                           |
|                             |   | September              8, 2005. The exhibit number indicated above corresponds              to the            |                           |
|                             |   | exhibit              number in that filing.                                                                             |                           |
|                             |   |                                                                                                                    |                           |
|  ***                        |   | Incorporated              by reference to the Company'sDefinitive Proxy Statements                                      |                           |
|                             |   | filed                with the SEC on March 23, 2006.                                                                    |                           |
|                             |   |                                                                                                                    |                           |