Classmates.com 2004 Annual Report Download - page 71

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A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
A company's internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in
reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance
that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and
directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the company's assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of
any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or
that the degree of compliance with the policies or procedures may deteriorate.
As described in "Management's Report on Internal Control Over Financial Reporting", management has excluded Classmates Online, Inc.
and its subsidiaries from its assessment of internal control over financial reporting as of December 31, 2004 because it was acquired by the
Company in a purchase business combination in November 2004. We have also excluded Classmates Online, Inc. from our audit of internal
control over financial reporting. Classmates Online, Inc. is a wholly-owned subsidiary of the Company whose total assets and total revenues
represent 31% and 2%, respectively, of the related consolidated financial statement amounts as of and for the year ended December 31, 2004.
/s/ PricewaterhouseCoopers LLP
Los Angeles, California
March 15, 2005
F-3