|UNITED STATESSECURITIES
AND EXCHANGE COMMISSION


Washington, D.C. 20549


FORM 10-Q


(Mark One)
|-------------------------------------------------------------------------------------------------

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

| | For
the quarterly period ended March 31, 2003
| | ---------------------------------------------

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

| | For
the transition period from      to
| | --------------------------------------

|Commission File Number
0-28536



NEW CENTURY EQUITY
HOLDINGS CORP.(Exact name of registrant as
specified in its charter)
|-------------------------------------------------------------------------------------------------------------------------

|Delaware
      (State or other jurisdiction of
      incorporation or organization)                     |  | 74-2781950
      (I.R.S. Employer 
      Identification Number)
|------------------------------------------------------------------------------------------------------- |  | ---------------------------------------------------------------
|                                                                                                        |  |                                                                
|10101 Reunion
      Place, Suite 450, San Antonio, Texas
      (Address of principal executive offices) |  | 78216
      
      (Zip code)                                  

|(210) 302-0444(Registrants
telephone number, including area code)


Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by
Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter periods that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90 days. |X| Yes
|_| No


Indicate
by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of
the Exchange Act). |_| Yes |X| No


Indicated
below is the number of shares outstanding of the registrants only class of common
stock at April 24, 2003:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Title of Class                      |  | Number of
      Shares
      Outstanding | 
| | ----------------------------------- |  | ---------------------------------------- | 
| |                                     |  |                                          | 
| | Common
      Stock, $0.01 par value |  | 34,217,620                               | 

|
|

|NEW CENTURY EQUITY
HOLDINGS CORP. AND SUBSIDIARIES


INDEX
|----------------------------------------------------------

|                                                                                      | PAGE
|------------------------------------------------------------------------------------- | ----
|                                                                                      |     
|PART
      I FINANCIAL INFORMATION                                                    |     
|                                                                                      |     
|Item
      1. Interim Condensed Consolidated Financial Statements                     |     
|                                                                                      |     
|Condensed
      Consolidated Balance Sheets  March 31, 2003 (Unaudited)              |     
|and
      December 31, 2002                                                           | 3   
|                                                                                      |     
|Unaudited
      Condensed Consolidated Statements of Operations  For the Three       |     
|Months
      ended March 31, 2003 and 2002                                            | 4   
|                                                                                      |     
|Unaudited
      Condensed Consolidated Statements of Cash Flows  For the Three       |     
|Months
      ended March 31, 2003 and 2002                                            | 5   
|                                                                                      |     
|Notes
      to Interim Condensed Consolidated Financial Statements (Unaudited)        | 6   
|                                                                                      |     
|Item 2.
      Managements Discussion and Analysis of Financial Condition and Results |     
|of
      Operations                                                                   | 10  
|                                                                                      |     
|Item 3.
      Quantitative and Qualitative Disclosure about Market Risk               | 12  
|                                                                                      |     
|Item 4.
      Controls and Procedures                                                 | 12  
|                                                                                      |     
|PART
      II OTHER INFORMATION                                                       |     
|                                                                                      |     
|Item 1.
      Legal Proceedings                                                       | 13  
|                                                                                      |     
|Item 6.
      Exhibits and Reports on Form 8-K                                        | 13  
|                                                                                      |     
|SIGNATURE                                                                             | 14  
|                                                                                      |     
|CERTIFICATIONS                                                                        | 15  

|2
|-

|PART I FINANCIAL
INFORMATIONItem 1. Interim Condensed Consolidated Financial StatementsNEW CENTURY EQUITY
HOLDINGS CORP. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands, except
share data)
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                                      | March
      31,
      2003 |         | December
      31,
      2002 |  
|--------------------------------------------------------------------- | -------------------------- | ------- | ----------------------------- | -
|                                                                      |                            |         |                               |  
|                                                                      | (Unaudited)                |         |                               |  
|                                                                     
|ASSETS                                                               
|                                                                      |                            |         |                               |  
|Current
      assets:                                                 |                            |         |                               |  
|Cash
      and cash equivalents                                       | $                          | 8,068   |                               | $
|Accounts
      receivable                                             |                            | 25      |                               |  
|Prepaid
      and other assets                                        |                            | 394     |                               |  
|Net
      current assets from discontinued operations                 |                            |        |                               |  
|                                                                      |                            |         |                               |  
|                                                                      |                            |         |                               |  
|Total
      current assets                                            |                            | 8,487   |                               |  
|Property
      and equipment, net                                     |                            | 207     |                               |  
|Other
      non-current assets                                        |                            | 53      |                               |  
|Investments
      in affiliates                                       |                            | 8,769   |                               |  
|                                                                      |                            |         |                               |  
|                                                                      |                            |         |                               |  
|Total
      assets                                                    | $                          | 17,516  |                               | $
|                                                                      |                            |         |                               |  
|                                                                      |                            |         |                               |  
|LIABILITIES
      AND STOCKHOLDERS EQUITY                           
|                                                                      |                            |         |                               |  
|Current
      liabilities:                                            |                            |         |                               |  
|Accounts
      payable                                                | $                          | 23      |                               | $
|Accrued
      liabilities                                             |                            | 527     |                               |  
|Net
      current liabilities from discontinued operations            |                            | 40      |                               |  
|                                                                      |                            |         |                               |  
|                                                                      |                            |         |                               |  
|Total
      current liabilities                                       |                            | 590     |                               |  
|Other
      non-current liabilities                                   |                            |        |                               |  
|                                                                      |                            |         |                               |  
|                                                                      |                            |         |                               |  
|Total
      liabilities                                               |                            | 590     |                               |  
|Commitments
      and contingencies                                   |                            |        |                               |  
|Stockholders
      equity:                                           |                            |         |                               |  
|Preferred
      stock, $0.01 par value, 10,000,000 shares authorized; |                            |         |                               |  
|no
      shares issued or outstanding                                 |                            |        |                               |  
|Common
      stock, $0.01 par value, 75,000,000 shares authorized;    |                            |         |                               |  
|34,217,620
      shares issued and outstanding                        |                            | 342     |                               |  
|Additional
      paid-in capital                                      |                            | 70,346  |                               |  
|Accumulated
      deficit                                             |                            | (53,762 | )                             |  
|                                                                      |                            |         |                               |  
|                                                                      |                            |         |                               |  
|Total
      stockholders equity                                      |                            | 16,926  |                               |  
|                                                                      |                            |         |                               |  
|                                                                      |                            |         |                               |  
|Total
      liabilities and stockholders equity                      | $                          | 17,516  |                               | $
|                                                                      |                            |         |                               |  

|The accompanying notes
are an integral part of these interim condensed consolidated financial statements.


3
|-------------------------------------------------------------------------------------------------------------

|NEW CENTURY EQUITY
HOLDINGS CORP. AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In
thousands, except per share data)
|------------------------------------------------------------------------------------------------------------------------------------------------

|                                                          | Three
      Months Ended
      March 31, |       
|--------------------------------------------------------- | ---------------------------------------- | ------
|                                                          |                                          |       
|                                                          | 2003                                     |       
|                                                          |                                          |       
|Operating
      revenues                                  | $                                        |      
|                                                          |                                          |       
|Operating
      expenses:                                 |                                          |       
|Selling,
      general and administrative expenses        |                                          | 680   
|Depreciation
      and amortization expenses              |                                          | 40    
|                                                          |                                          |       
|                                                          |                                          |       
|Operating
      loss from continuing operations           |                                          | (720  
|                                                          |                                          |       
|Other income
      (expense):                             |                                          |       
|Interest
      income, net                                |                                          | 27    
|Equity
      in net loss of affiliate                     |                                          | (647  
|Consulting
      income                                   |                                          |      
|Other
      income, net                                   |                                          | 12    
|                                                          |                                          |       
|                                                          |                                          |       
|Total other
      expense, net                            |                                          | (608  
|                                                          |                                          |       
|                                                          |                                          |       
|Net loss
      from continuing operations                 |                                          | (1,328
|                                                          |                                          |       
|Discontinued
      operations:                            |                                          |       
|Net
      loss from discontinued operations               |                                          |      
|Net
      income from disposal of discontinued operations |                                          | 147   
|                                                          |                                          |       
|                                                          |                                          |       
|Net loss                                                  | $                                        | (1,181
|                                                          |                                          |       
|                                                          |                                          |       
|Basic and
      diluted (loss) income per common share:   |                                          |       
|Net
      loss from continuing operations                 | $                                        | (0.04 
|Net
      loss from discontinued operations               |                                          |      
|Net
      income from disposal of discontinued operations |                                          | 0.01  
|                                                          |                                          |       
|                                                          |                                          |       
|Net
      loss                                            | $                                        | (0.03 
|                                                          |                                          |       
|                                                          |                                          |       
|Weighted
      average common shares outstanding          |                                          | 34,218
|                                                          |                                          |       

|The accompanying notes
are an integral part of these interim condensed consolidated financial statements.


4
|-------------------------------------------------------------------------------------------------------------

|NEW CENTURY EQUITY
HOLDINGS CORP. AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In
thousands)
|-------------------------------------------------------------------------------------------------------------------------

|                                                                               | Three
      Months Ended
      March 31, |       
|------------------------------------------------------------------------------ | ---------------------------------------- | ------
|                                                                               |                                          |       
|                                                                               | 2003                                     |       
|                                                                               |                                          |       
|Cash
      flows from operating activities:                                    |                                          |       
|Net loss
      from continuing operations                                      | $                                        | (1,328
|Adjustments
      to reconcile net loss from continuing operations to net cash |                                          |       
|(used
      in) provided by operating activities:                              |                                          |       
|Depreciation
      and amortization expenses                                   |                                          | 40    
|Equity
      in net loss of affiliate                                          |                                          | 647   
|Changes
      in operating assets and liabilities:                             |                                          |       
|(Increase)
      decrease in accounts receivable                               |                                          | (16   
|Increase
      in prepaid and other assets                                     |                                          | (64   
|(Decrease)
      increase in accounts payable                                  |                                          | (7    
|(Decrease)
      increase in accrued liabilities                               |                                          | (24   
|Increase
      in other liabilities and other noncash items                    |                                          | 136   
|                                                                               |                                          |       
|                                                                               |                                          |       
|Net cash
      (used in) provided by continuing operating activities           |                                          | (616  
|Net cash
      provided by (used in) discontinued operating activities         |                                          | 180   
|                                                                               |                                          |       
|                                                                               |                                          |       
|Net cash
      (used in) provided by operating activities                      |                                          | (436  
|                                                                               |                                          |       
|Cash flows
      from investing activities:                                    |                                          |       
|Purchases
      of property and equipment                                      |                                          |      
|Investments
      in affiliates                                                |                                          | (200  
|Other
      investing activities                                               |                                          |      
|                                                                               |                                          |       
|                                                                               |                                          |       
|Net cash
      used in investing activities                                    |                                          | (200  
|                                                                               |                                          |       
|Cash flows
      from financing activities:                                    |                                          |       
|Proceeds
      from issuance of common stock                                   |                                          |      
|                                                                               |                                          |       
|                                                                               |                                          |       
|Net cash
      provided by financing activities                                |                                          |      
|                                                                               |                                          |       
|                                                                               |                                          |       
|Net decrease
      in cash and cash equivalents                                |                                          | (636  
|Cash and
      cash equivalents, beginning of period                           |                                          | 8,704 
|                                                                               |                                          |       
|                                                                               |                                          |       
|Cash and
      cash equivalents, end of period                                 | $                                        | 8,068 
|                                                                               |                                          |       
|                                                                               |                                          |       
|Supplemental
      disclosure of financial information:                        |                                          |       
|Cash
      paid for interest                                                   | $                                        |      
|Cash
      paid for income taxes                                               | $                                        |      

|The accompanying notes
are an integral part of these interim condensed consolidated financial statements.




5
|---------------------------------------------------------------------------------------------------------------

|NEW CENTURY EQUITY
HOLDINGS CORP. AND SUBSIDIARIESNOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS(UNAUDITED)


Note 1. Basis
of Presentation


The
interim condensed consolidated financial statements included herein have been prepared by
New Century Equity Holdings Corp. and subsidiaries (collectively, the Company),
without audit, pursuant to the rules and regulations of the Securities and Exchange
Commission (SEC). Certain information and footnote disclosures normally
included in financial statements prepared in accordance with accounting principles
generally accepted in the United States of America have been condensed or omitted
pursuant to such rules and regulations. In the opinion of the Companys management,
the accompanying interim condensed consolidated financial statements reflect all
adjustments, of a normal recurring nature, that are necessary for a fair presentation of
the Companys financial position, results of operations and cash flows for such
periods. It is recommended that these interim condensed consolidated financial statements
be read in conjunction with the consolidated financial statements and the notes thereto
included in the Companys Annual Report on Form 10-K for the year ended December 31,
2002. Results of operations for the interim periods are not necessarily indicative of
results that may be expected for any other interim periods or the full fiscal year.


In
October 2000, the Company completed the sale of its Transaction Processing and Software
divisions to Platinum Holdings (Platinum) of Los Angeles, California (the
Transaction), for initial consideration of  $49.7 million. The Company may be
entitled to receive additional consideration consisting of potential royalty payments,
assuming the achievement of certain post-closing revenue targets ( $5.0 million related
to the Aptis division and  $5.0 million related to the OSC division). The post-closing
revenue targets apply to the three-year period subsequent to the Transaction. Management
continues to monitor the revenue achievements of the Aptis and OSC divisions, but does
not believe it is likely that either division will achieve the post-closing revenue
targets necessary to generate a potential royalty payment to the Company.


Note 2. Stock
Based Compensation


The
Company adopted Statement of Financial Accounting Standards (SFAS) No. 123
Accounting for Stock-Based Compensation, but elected to apply Accounting
Principles Board (APB) Opinion No. 25 Accounting for Stock Issued to
Employees and related interpretations in accounting for its stock option plans. The
following table illustrates the effect on net loss and net loss per common share had
compensation expense for the Companys stock option grants and Employee Stock
Purchase Plan (ESPP) purchases been determined based on the fair value at the
grant dates consistent with the methodology of SFAS No. 123. For purposes of the pro
forma disclosures, the estimated fair value of options is amortized to pro forma
compensation expense over the options vesting periods.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                                                             | Three
      months ended March 31, |       
| | ----------------------------------------------------------- | ---------------------------------- | ------
| | (in thousands,
      except per share data)                 | 2003                               |       
| |                                                             |                                    |       
| | Net
      loss, as reported                                 | $                                  | (1,181
| | Less: Total
      stock based employee compensation expense |                                    |       
| | determined
      under fair value based method for all      |                                    |       
| | awards,
      net of related tax effects                    |                                    | (10   
| |                                                             |                                    |       
| |                                                             |                                    |       
| | Pro forma
      net loss                                    | $                                  | (1,191
| |                                                             |                                    |       
| |                                                             |                                    |       
| | Basic and
      diluted loss per common share:              |                                    |       
| | Net
      loss, as reported                                 | $                                  | (0.03 
| | Pro
      forma net loss                                    | $                                  | (0.03 

|6
|-

|Note 3.
Investments in Affiliates


Investments
in affiliates is comprised of the following:
|--------------------------------------------------------------------------------------------

| | (in
      thousands)                               | March
      31,
      2003 |         | December
      31,
      2002 |  
| | -------------------------------------------------- | -------------------------- | ------- | ----------------------------- | -
| |                                                    |                            |         |                               |  
| | Investment
      in Princeton eCom Corporation:    |                            |         |                               |  
| | Cash
      investments                             | $                          | 76,076  |                               | $
| | In-process
      research and development costs    |                            | (4,465  | )                             |  
| | Amortization
      and equity loss pick-up         |                            | (60,910 | )                             |  
| | Impairment
      of investment                     |                            | (1,777  | )                             |  
| | Other                                              |                            | (1,481  | )                             |  
| |                                                    |                            |         |                               |  
| | Net
      investment in Princeton eCom Corporation |                            | 7,443   |                               |  
| |                                                    |                            |         |                               |  
| | Investment
      in Sharps Compliance Corp.:       |                            |         |                               |  
| | Cash
      investments                             |                            | 970     |                               |  
| | Other                                              |                            | 2       |                               |  
| |                                                    |                            |         |                               |  
| | Net
      investment in Sharps Compliance Corp.    |                            | 972     |                               |  
| |                                                    |                            |         |                               |  
| | Investment
      in Microbilt Corp.:               |                            |         |                               |  
| | Equity
      investments                           |                            | 348     |                               |  
| | Other                                              |                            | 6       |                               |  
| |                                                    |                            |         |                               |  
| | Net
      investment in Microbilt Corp.            |                            | 354     |                               |  
| |                                                    |                            |         |                               |  
| |                                                    |                            |         |                               |  
| | Total
      investments in affiliates              | $                          | 8,769   |                               | $
| |                                                    |                            |         |                               |  

|Note 4.
Accrued liabilities



Accrued
liabilities is comprised of the following:
|---------------------------------------------------------------------------------

| | (in
      thousands)             | March
      31,
      2003 |     | December
      31,
      2002
| | -------------------------------- | -------------------------- | --- | -----------------------------
| |                                  |                            |     |                              
| | Accrued
      income taxes       | $                          | 174 |                              
| | Accrued
      vacation           |                            | 117 |                              
| | Accrued
      audit fees         |                            | 76  |                              
| | Accrued
      annual report fees |                            | 69  |                              
| | Other                            |                            | 91  |                              
| |                                  |                            |    
| |                                  |                            |     |                              
| | Total
      accrued liabilities  | $                          | 527 |                              
| |                                  |                            |    

|Note 5. Commitments
and Contingencies


During
the year ended September 30, 1999, the Company entered into an agreement to guarantee the
terms of Princeton eCom Corporations (Princeton) lease for office space
at 650 College Road East, Princeton, New Jersey. This guarantee terminates should
Princeton raise  $25.0 million of capital through an initial public offering. The
landlord of the office space has agreed, subject to lender approval, to replace the
Companys guarantee with an alternative security equal to rent payments for
approximately one year. Although no assurances can be made, it is Princetons
intention to provide sufficient security in order to eliminate the need for the Companys
guarantee. The Company does not believe it is probable that it will be required to
perform under the lease guarantee.


Note 6.
Investment in Unconsolidated Affiliate


The
Company accounts for its investment in Princeton under the equity method of accounting
(as the Company does not exhibit control over Princeton) and records the equity in net
loss of Princeton on a three-month lag. As of March 31, 2003 and December 31, 2002, the
Companys ownership percentage of the preferred stock, the outstanding stock and the
fully diluted stock of Princeton was 35.6%, 38.0% and 32.9%, respectively.


7
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Princetons
summarized balance sheets as of December 31, 2002 and September 30, 2002, are as follows:
|-----------------------------------------------------------------------------------------------------

| | (in
      thousands)                     | December
      31,
      2002 |        | September
      30,
      2002 |  
| | ---------------------------------------- | ----------------------------- | ------ | ------------------------------ | -
| |                                          |                               |        |                                |  
| | Current
      assets                     | $                             | 45,632 |                                | $
| | Non-current
      assets                 |                               | 15,986 |                                |  
| | Current
      liabilities                |                               | 42,985 |                                |  
| | Non-current
      liabilities            |                               | 1,156  |                                |  
| | Mandatorily
      redeemable convertible |                               |        |                                |  
| | preferred
      stock                    |                               | 32,442 |                                |  

|Princetons
statements of operations for the three months ended December 31, 2002 and 2001 have been
used to calculate the equity in net loss recorded in the Companys statements of
operations for the three months ended March 31, 2003 and 2002, respectively. Princetons
summarized statements of operations are as follows:
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |                            | Three
      Months Ended
      December 31, |       
| | -------------------------- | ------------------------------------------- | ------
| |                            |                                             |       
| | (in
      thousands)       | 2002                                        |       
| |                            |                                             |       
| | Total
      revenues       | $                                           | 8,640 
| | Gross profit               |                                             | 4,088 
| | Loss from
      operations |                                             | (2,119
| | Net loss                   |                                             | (1,817

|For
the three months ended December 31, 2001, loss from operations of  $20.9 million included
special charges totaling  $10.6 million. Approximately  $7.4 million of the special
charges relate to the implementation of a strategic restructuring plan to streamline
Princetons operations by reducing operating expenses primarily through workforce
reductions ( $4.1 million) and renegotiating significant contracts and leases ( $3.3
million). The additional charges relate to the write-down of a portion of the asset value
of Princetons property and equipment. The impairment was recognized as the future
undiscounted cash flows related to these assets were estimated to be insufficient to
recover the related carrying values of the property and equipment.


Note 7.
Related Party Transactions


In
April 2000, the Board of Directors of the Company approved a restricted stock grant to
the Companys CEO. The restricted stock grant consists of Princeton stock equal to
2% of Princetons fully diluted shares. The restricted stock grant vests on April
30, 2003. The Company expenses the fair market value of the restricted stock grant over
the three-year period ending April 30, 2003. The Company recognized  $150,000 during the
three months ended March 31, 2003 and 2002, as compensation expense related to the stock
grant.


The
Companys CEO served as Chairman of the Board of Tanisys at the time of the Companys
investment in Tanisys and until his resignation in February 2002. A member of the Companys
Board served as Tanisys Chairman of the Board and CEO from February 2002 until
February 2003. This Board member also served as a member of Tanisys Board from
February 2002 to March 2003. This Board member received approximately  $15,000 per month
from Tanisys as compensation for services as Chairman of the Board and CEO. The Company
also appointed the Companys CFO and another one of its Board members to the
Board of Tanisys. This Board member resigned from the Board of Tanisys in February 2003
and the Companys CFO resigned from the Board of Tanisys in March 2003.


8
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|The
CEO of the Company has served on the Board of Princeton since September 1998. The CEO
served as Chairman of the Board of Princeton from January 2002 until December 2002. The
Companys CFO served as a member of the Board of Princeton from August 2001 until
June 2002.


The
Companys CEO and one of its Board members serve on the Board of Sharps
Compliance Corp. (Sharps) and did so at the time the Company invested in
Sharps. The Companys CFO was appointed CFO of Sharps in February 2003. In March
2003, Sharps began reimbursing the Company for certain expenses incurred by the Companys
CFO.


Note 8.
Discontinued Operations


In
August 2001, the Company invested  $1,060,000 in Tanisys Technology, Inc. (Tanisys).
In February 2003, the Company sold its preferred stock in Tanisys to ATE Worldwide LLC,
whose majority shareholder is a leader in the semiconductor testing equipment market. The
Company received approximately  $0.2 million in exchange for its preferred stock, which
is reported as a gain on the disposal of discontinued operations during the three months
ended March 31, 2003. Accordingly, the operations of Tanisys have been classified as
discontinued operations.


For
accounting purposes, the Company consolidated Tanisys into the financial statements of
the Company under the purchase method of accounting. As the Company consolidated Tanisys
on a three-month lag (due to the difference in fiscal year ends of the Company and
Tanisys), Tanisys balance sheet as of September 30, 2002, including adjustments
made under the purchase method of accounting, was consolidated with the Companys
balance sheet as of December 31, 2002, as follows (in thousands):
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Cash and
      cash equivalents                              | $ | 147    |  
| | ------------------------------------------------------------ | - | ------ | -
| | Accounts
      receivable, net                               |   | 454    |  
| | Inventory:                                                   |   |        |  
| | Raw
      materials                                          |   | 284    |  
| | Work
      in process                                        |   | 48     |  
| | Finished
      goods                                         |   | 84     |  
| |                                                              |   |       
| | Total
      inventory                                        |   | 416    |  
| | Prepaid
      and other assets                               |   | 90     |  
| |                                                              |   |       
| | Total
      current assets                                   |   | 1,107  |  
| | Property
      and equipment, net                            |   | 192    |  
| | Other non-current
      assets, net                          |   | 128    |  
| |                                                              |   |       
| | Total
      assets                                           | $ | 1,427  |  
| |                                                              |   |       
| |                                                              |   |        |  
| | Accounts
      payable                                       | $ | 612    |  
| | Accrued
      liabilities                                    |   | 763    |  
| | Revolving
      credit note                                  |   | 152    |  
| | Note payable
      to minority stockholders, net of discount |   | 953    |  
| |                                                              |   |       
| | Total
      current liabilities                              |   | 2,480  |  
| | Other non-current
      liabilities                          |   | 4      |  
| |                                                              |   |       
| | Total
      liabilities                                      | $ | 2,484  |  
| |                                                              |   |       
| |                                                              |   |        |  
| | Minority
      interest in consolidated affiliate            | $ | (1,100 | )
| | Accumulated
      deficit                                    | $ | (1,060 | )

|9
|-

|Tanisys statement
of operations for the three months ended December 31, 2001, including adjustments made
under the purchase method of accounting, were consolidated in the Companys
statement of operations for the three months ended March 31, 2002, as follows (in
thousands):
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Operating
      revenues                           | $ | 951  |  
| | -------------------------------------------------- | - | ---- | -
| | Cost of
      revenues                             |   | 482  |  
| |                                                    |   |     
| | Gross
      profit                                 |   | 469  |  
| | Selling,
      general and administrative expenses |   | 435  |  
| | Research
      and development expenses            |   | 530  |  
| | Depreciation
      and amortization expenses       |   | 33   |  
| |                                                    |   |     
| | Operating
      loss from discontinued operations  |   | (529 | )
| | Other income
      (expense):                      |   |      |  
| | Interest
      expense, net                        |   | (207 | )
| | Other
      expense, net                           |   | (7   | )
| | Minority
      interest in consolidated affiliate  |   | 525  |  
| |                                                    |   |     
| | Total
      other income, net                      |   | 311  |  
| |                                                    |   |     
| | Net loss                                           | $ | (218 | )
| |                                                    |   |     
| |                                                    |   |      |  
| | Net loss                                           | $ | (218 | )
| | Preferred
      stock dividend                     |   | (60  | )
| | Minority
      interest in consolidated affiliate  |   | 60   |  
| |                                                    |   |     
| | Net
      loss applicable to common stockholders   | $ | (218 | )
| |                                                    |   |     

|Advances


During
2002, the Company advanced  $43,000 to Tanisys. These advances were due to the Company
under the terms of a promissory note bearing interest at twelve percent (12%) and matured
in March 2003. This promissory note was repaid in February 2003.


Note 9. Subsequent Events


On
April 22, 2003, the Company received notice that Bristol Investments, Ltd. and Microbilt
Corporation (Microbilt) filed suit against the Company and one of its officers alleging
breach of contract and misrepresentation in conjunction with the October 2001 merger of a
former subsidiary, FIData, Inc., into Microbilt. The Company believes it has meritorious
defenses, the specified claims are without merit and intends to vigorously contest this
lawsuit.


Item 2.


This
Quarterly Report on Form 10-Q contains certain forward-looking statements as
such term is defined in the Private Securities Litigation Reform Act of 1995 and
information relating to the Company and its subsidiaries that are based on the beliefs of
the Companys management as well as assumptions made by and information currently
available to the Companys management. When used in this report, the words anticipate,
believe, estimate, expect and intend and
words or phrases of similar import, as they relate to the Company or its subsidiaries or
Company management, are intended to identify forward-looking statements. Such statements
reflect the current risks, uncertainties and assumptions related to certain factors
including, without limitation, competitive factors, general economic conditions, customer
relations, relationships with vendors, the interest rate environment, governmental
regulation and supervision, seasonality, distribution networks, products introductions
and acceptance, technological change, changes in industry practices, onetime events and
other factors described herein and in other filings made by the Company with the
Securities and Exchange Commission. Based upon changing conditions, should any one or
more of these risks or uncertainties materialize, or should any underlying assumptions
prove incorrect, actual results may vary materially from those described herein as
anticipated, believed, estimated, expected or intended. The Company does not intend to
update these forward-looking statements.


MANAGEMENTS
DISCUSSION AND ANALYSIS OF FINANCIALCONDITION AND RESULTS OF OPERATIONS


General


The
following is a discussion of the interim condensed consolidated financial condition and
results of operations for New Century Equity Holdings Corp. and subsidiaries
(collectively, the Company), for the three months ended March 31, 2003. It
should be read in conjunction with the unaudited Interim Condensed Consolidated Financial
Statements of the Company, the notes thereto and other financial information included
elsewhere in this report, and the Companys Annual Report on Form 10-K for the year
ended December 31, 2002. For purposes of the following discussion, references to year
periods refer to the Companys fiscal year ended December 31 and references to
quarterly periods refer to the Companys fiscal quarter ended March 31.


10
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Results of
Operations


Continuing Operations


Selling,
general and administrative (SG&A) expenses are comprised of all selling,
marketing and administrative costs incurred in direct support of the business operations
of the Company. For the three months ended March 31, 2003, SG&A expenses totaled
 $0.7 million, compared to  $1.0 million for the three months ended March 31, 2002. The
decrease in SG&A expenses relates to an overall reduction in expenditures and
corporate personnel. The cash portion of the SG&A expenses was  $0.5 million (total SG&A
expenses of  $0.7 million, less non-cash compensation expense of  $0.2 million) and  $0.8
million (total SG&A expenses of  $1.0 million, less non-cash compensation expense of
 $0.2 million) for the three months ended March 31, 2003 and 2002, respectively.


Net
other expense totaled  $0.7 million during the three months ended March 31, 2003,
compared to  $13.0 million during the three months ended March 31, 2002. The decrease in
net other expense for the three months ended March 31, 2003, primarily related to
decreases in the equity in net loss of affiliate and consulting income from Platinum.


Princeton


Princetons
revenues increased to  $8.6 million during the three months ended December 31, 2002, from
 $5.7 million during the three months ended December 31, 2001. The increase in revenue is
a result of an increase in the number of financial institution and biller customers
coupled with an increase in bill presentment and payment transactions. Princetons
net loss of  $1.8 million for the three months ended December 31, 2002, decreased from
the  $22.4 million net loss for the three months ended December 31, 2001, as a result of
the increase in revenues as well as the reductions made to operating expenses during
2002. The net loss for the three months ended December 31, 2001, included impairment
charges totaling  $10.6 million related to the impairment of property and equipment,
employee separations and contract settlements.


Earnings
before interest, taxes, depreciation and amortization (EBITDA) is a financial
measurement used by management and investors to assess the value of a technology-related
company such as Princeton. EBITDA is not a financial measurement pursuant to generally
accepted accounting principles (GAAP), nor is it acceptable or considered an
alternative measure of cash flows from operations under GAAP. For the three months ended
December 31, 2002, Princetons EBITDA was negative  $0.6 million (net loss of  $1.8
million, exclusive of depreciation and amortization expenses of  $1.5 million and income
tax benefit of  $0.3 million). For the three months ended December 31, 2001, Princetons
EBITDA was negative  $18.3 million (net loss of  $22.4 million, exclusive of depreciation
and amortization expenses of  $2.5 million and interest expense of  $1.6 million).


Discontinued Operations


In
February 2003, the Company sold its preferred stock in Tanisys to ATE Worldwide LLC,
whose majority shareholder is a leader in the semiconductor testing equipment market. The
Company received approximately  $0.2 million in exchange for its preferred stock, which
is reported as a gain on the disposal of discontinued operations during the three months
ended March 31, 2003.



11
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Liquidity and
Capital Resources


The
Companys cash balance decreased to  $8.1 million at March 31, 2003, from  $8.7
million at December 31, 2002. This decrease relates to the receipt of  $0.2 million from
the sale of Tanisys preferred stock, offset by the  $0.2 million invested in Sharps
and the cash portion of corporate expenses. There were no capital expenditures during
the three months ended March 31, 2003. The Company anticipates minimal capital
expenditures before acquisitions, if any, during the nine months ending December 31,
2003. The Company believes it will be able to fund future expenditures with cash on hand.


Princeton


During
the year ended September 30, 1999, the Company entered into an agreement to guarantee the
terms of Princetons lease for office space at 650 College Road East, Princeton, New
Jersey. This guarantee terminates should Princeton raise  $25.0 million of capital
through an initial public offering. The landlord of the office space has agreed, subject
to lender approval, to replace the Companys guarantee with an alternative security
equal to rent payments for approximately one year. Although no assurances can be made, it
is Princetons intention to provide sufficient security in order to eliminate the
need for the Companys guarantee. The Company does not believe it is probable that
it will be required to perform under the lease guarantee.


Item 3.
Quantitative and Qualitative Disclosure about Market Risk


The
Company is exposed to interest rate risk primarily through its portfolio of cash
equivalents and short-term marketable securities. The Company does not believe that it
has significant exposure to market risks associated with changing interest rates as of
March 31, 2003, because the Companys intention is to maintain a liquid portfolio to
take advantage of investment opportunities. The Company does not use derivative financial
instruments in its operations.


Item 4.
Controls and Procedures


Within
the ninety days prior to the date of this report, the Company carried out an evaluation,
under the supervision and with the participation of the Companys management,
including the Companys Chief Executive Officer and Chief Financial Officer, of the
effectiveness of the design and operation of the Companys disclosure controls and
procedures pursuant to Exchange Act Rule 13a-14. Based upon that evaluation, the Chief
Executive Officer and Chief Financial Officer concluded that the Companys
disclosure controls and procedures are effective in timely alerting them to material
information relating to the Company (including its consolidated subsidiaries) required to
be included in the Companys periodic SEC filings.



12
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|PART II OTHER
INFORMATION


Item 1. Legal
Proceedings


On
April 22, 2003, the Company received notice that Bristol Investments, Ltd. and Microbilt
Corporation (Microbilt) filed suit against the Company and one of its officers alleging
breach of contract and misrepresentation in conjunction with the October 2001 merger of a
former subsidiary, FIData, Inc., into Microbilt. The Company believes it has meritorious
defenses, the specified claims are without merit and intends to vigorously contest this
lawsuit.


Item 6.
Exhibits and Reports on Form 8-K
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | Exhibits:
|--- |  | ---------

| |  | 99.1 |  | Certification
of Chief Executive Officer in Accordance with Section 906 of the Sarbanes-Oxley Act
(filed herewith)
| |  | ---- |  | ------------------------------------------------------------------------------------------------------------------

| |  | 99.2 |  | Certification
of Chief Financial Officer in Accordance with Section 906 of the Sarbanes-Oxley Act
(filed herewith)
| |  | ---- |  | ------------------------------------------------------------------------------------------------------------------

|(b) |  | Current
Reports on Form 8-K:
|--- |  | ----------------------------

| | Form
     8-K, dated January 7, 2003, filed January 13, 2003, announcing the appointment
     of Stephen M. Wagner to the Companys Board of Directors.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------

| | Form
     8-K, dated February 21, 2003, filed February 26, 2003, announcing the sale of
     the Companys preferred stock in Tanisys Technology, Inc. and the      Companys
results of operations for the quarter and year ended December 31,      2003.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Form
     8-K, dated March 18, 2003, filed March 21, 2003, announcing the receipt from The
     Nasdaq Stock Market, Inc. of a 90-day extension to regain compliance with the
     minimum  $1.00 bid price per share requirement.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Items 2, 3, 4 and 5 are
not applicable and have been omitted.



13
|-------------------------------------------------------------------

|SIGNATURE


Pursuant
to the requirements of the Securities Exchange Act of 1934, as amended, the registrant
has duly caused this report to be signed on its behalf by the undersigned thereunto duly
authorized.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                           |  | NEW CENTURY EQUITY
      HOLDINGS CORP.
              (Registrant)                                                                                                                                                                                        
|-------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                           |  |                                                                                                                                                                                                                                                           
|Date: April
      24, 2003 |  | By:                    
      /s/ DAVID P. TUSA                             
       
      David P. Tusa Executive Vice President, Chief Financial
      Officer and Corporate Secretary
      (Duly authorized and principal financial officer)

|14
|--

|CERTIFICATION


I, Parris H. Holmes, Jr., certify
that:
|-------------------------------------------------------

|1. |  | I
have reviewed this quarterly report on Form 10-Q of New Century Equity Holdings Corp.;
|-- |  | ----------------------------------------------------------------------------------------

|2. |  | Based
on my knowledge, this quarterly report does not contain any untrue           statement of
a material fact or omit to state a material fact necessary to make           the
statements made, in light of the circumstances under which such statements           were
made, not misleading with respect to the period covered by this quarterly
          report;
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. |  | Based
on my knowledge, the financial statements, and other financial information
          included in this quarterly report, fairly present in all material respects the
          financial condition, results of operations and cash flows of the registrant as
          of, and for, the periods presented in this quarterly report;
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. |  | The
registrants other certifying officers and I are responsible for
          establishing and maintaining disclosure controls and procedures (as defined in
          Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | a) |  | designed
such disclosure controls and procedures to ensure that material           information
relating to the registrant, including its consolidated subsidiaries,           is made
known to us by others within those entities, particularly during the           period in
which this quarterly report is being prepared;
| |  | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | b) |  | evaluated
the effectiveness of the registrants disclosure controls and           procedures
as of a date within 90 days prior to the filing date of this           quarterly report
(the Evaluation Date); and
| |  | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | c) |  | presented
in this quarterly report our conclusions  about the  effectiveness  of the disclosure
 controls and procedures based          on our evaluation as of the Evaluation Date;
| |  | -- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. |  | The
registrants other certifying officers and I have disclosed, based on           our
most recent evaluation, to the registrants auditors and the audit
          committee of registrants board of directors (or persons performing the
          equivalent function):
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | a) |  | all
significant deficiencies in the design or operation of internal controls           which
could adversely affect the registrants ability to record, process,
          summarize and report financial data and have identified for the
          registrants auditors any material weaknesses in internal controls; and
| |  | -- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | b) |  | any
 fraud,  whether  or not  material,  that  involves  management  or other  employees  who
have a  significant  role in the          registrants internal controls; and
| |  | -- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. |  | The
registrants other certifying officers and I have indicated in this
          quarterly report whether or not there were significant changes in internal
          controls or in other factors that could significantly affect internal controls
          subsequent to the date of our most recent evaluation, including any corrective
          actions with regard to significant deficiencies and material weaknesses.
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Date: April
      24, 2003 |  | /s/
      PARRIS H. HOLMES JR.
      
      
      Parris H. Holmes, Jr.
      Chairman of the Board and
      Chief Executive Officer | 
|-------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------- | 

|15
|--

|CERTIFICATION


I, David P. Tusa, certify that:
|-----------------------------------------------

|1. |  | I
have reviewed this quarterly report on Form 10-Q of New Century Equity Holdings Corp.;
|-- |  | ----------------------------------------------------------------------------------------

|2. |  | Based
on my knowledge, this quarterly report does not contain any untrue           statement of
a material fact or omit to state a material fact necessary to make           the
statements made, in light of the circumstances under which such statements           were
made, not misleading with respect to the period covered by this quarterly
          report;
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|3. |  | Based
on my knowledge, the financial statements, and other financial information
          included in this quarterly report, fairly present in all material respects the
          financial condition, results of operations and cash flows of the registrant as
          of, and for, the periods presented in this quarterly report;
|-- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|4. |  | The
registrants other certifying officers and I are responsible for
          establishing and maintaining disclosure controls and procedures (as defined in
          Exchange Act Rules 13a-14 and 15d-14) for the registrant and we have:
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | a) |  | designed
such disclosure controls and procedures to ensure that material           information
relating to the registrant, including its consolidated subsidiaries,           is made
known to us by others within those entities, particularly during the           period in
which this quarterly report is being prepared;
| |  | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | b) |  | evaluated
the effectiveness of the registrants disclosure controls and           procedures
as of a date within 90 days prior to the filing date of this           quarterly report
(the Evaluation Date); and
| |  | -- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | c) |  | presented
in this quarterly report our conclusions  about the  effectiveness  of the disclosure
 controls and procedures based          on our evaluation as of the Evaluation Date;
| |  | -- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|5. |  | The
registrants other certifying officers and I have disclosed, based on           our
most recent evaluation, to the registrants auditors and the audit
          committee of registrants board of directors (or persons performing the
          equivalent function):
|-- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | a) |  | all
significant deficiencies in the design or operation of internal controls      which could
adversely affect the registrants ability to record, process,      summarize and
report financial data and have identified for the      registrants auditors any
material weaknesses in internal controls; and
| |  | -- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  | b) |  | any
 fraud,  whether  or not  material,  that  involves  management  or other  employees  who
have a  significant  role in the          registrants internal controls; and
| |  | -- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|6. |  | The
registrants other certifying officers and I have indicated in this
          quarterly report whether or not there were significant changes in internal
          controls or in other factors that could significantly affect internal controls
          subsequent to the date of our most recent evaluation, including any corrective
          actions with regard to significant deficiencies and material weaknesses.
|-- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Date: April
      24, 2003 |  | /s/ DAVID P. TUSA
       
      David P. Tusa 
      Executive Vice President, 
      Chief Financial Officer and
      Corporate Secretary | 
|-------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------- | 

|16
|--