Webhire, Inc., incorporated in 1982, develops, markets, implements and supports Internet-based recruitment management solutions. The Company's solutions enable organizations to strategically manage their talent acquisition process. Webhire's products provide a range of solutions including managing the creation and approval process of job requisitions, the sourcing of candidates through job board postings, resume pool searches, operation of the customer's employment Website, activity management of candidates throughout the hiring process and the creation of internal and external reports to monitor the effectiveness of the recruiting process. The Company delivers products and services including Webhire Recruiter, Corporate Edition, a recruitment management solution designed for enterprise-level organizations, and Webhire Recruiter, Professional Edition, designed for small to medium-sized organizations. Webhire also continues to support Webhire Enterprise, its prior generation of client/server-based products. The Company delivers its Internet solutions to customers using a Web subscription services model that provides direct access for subscribers via a standard Web browser. Webhire Enterprise, the Company's enterprise recruiting solution, is sold through both the application service provider (ASP) model and also as licensed software. The Company also offers a complete range of options to optimize the entire hiring process, including the Webhire Corporate Career Center, Webhire Employee Referral Program, Webhire Recruiter, Manager's Access and Webhire Agent. Webhire has augmented its internal development efforts with technology acquisitions and strategic third-party relationships. In July 1999, the Company purchased Hireworks, Inc, a developer of resume searching technology that automatically searches the Internet for resumes, matching them against customer-specified criteria. In December 1999, Webhire acquired the technology assets of HR Sites International, a developer of an Internet job posting platform that provided automated connections to online job boards and career sites. These technologies have been enhanced and are integrated into the Webhire Recruiter product line. The Company's Internet-based recruiting services enable organizations to recruit more efficiently in the labor market. Webhire's services reduce the time and effort required to locate candidates on the Internet, provide tools that help corporate recruiters and hiring managers identify the best possible talent for open positions and enable the management of the entire staffing process online in a user-friendly and cost-efficient manner. Since the Company's primary solutions are provided to employers over the Internet, start-up times and extensive information technology (IT) infrastructure requirements are eliminated. Webhire provides several services that enable corporate recruiters to directly obtain candidates from the Internet. The Company, as a result of its business arrangements with Headhunter.net and other partners, provides customers with access to large pools of candidate resumes on the Internet. As of November 2001, there were over 1.6 million resumes accessible for targeted searching through the Company's proprietary recruiting solutions. Webhire, as a result of its acquisition of HireWorks, Inc., also offers an automated intelligent search agent that conducts resume searching and ranking across the Internet. It is estimated that over eight million resumes are accessible through the Company's agent technology. The creation of a private online electronic database of resumes is central to Webhire's candidate management solutions. In connection with its scanning partners, the Company processes paper resumes and faxed resumes using optical character recognition technologies and processes resumes sent via e-mail or directly over the Internet with its own proprietary resume processing software. Webhire processed approximately four million resumes during 2001. The processed resumes are stored online in secure databases that are acces

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