COMPUTER TASK GROUP, INCORPORATED COMPUTATION OF DILUTED EARNINGS PER SHARE UNDER TREASURY STOCK METHOD SET FORTH IN STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO. 128 "EARNINGS PER SHARE" (amounts in thousands, except per share data) Year Ended December 31: 2002 2001 2000 1999 1998 - ---------------------- ---- ---- ---- ---- ---- Weighted-average number of shares outstanding during year ............. 16,567 16,435 16,187 16,401 16,216 Common Stock equivalents - incremental shares under stock option plans........ 328 - - 279 697 -------- ------- ------- ------- ------- Number of shares on which diluted Income (loss) per share is based ....... 16,895 16,435 16,187 16,680 16,913 Net income (loss) before cumulative effect of change in accounting principle....... $1,362 $(2,202) $(5,661) $16,701 $24,045 Cumulative effect of change in accounting principle.................... (37,038) - - - - ------------------------------------------------------------ Net income (loss)......................... $(35,676) $(2,202) $(5,661) $16,701 $24,045 ======== ======= ======= ======= ======= Basic net income (loss) per share Net income (loss) before cumulative effect of change in accounting principle....... $0.08 $(0.13) $(0.35) $1.02 $1.48 Cumulative effect of change in accounting principle.................... (2.23) - - - - ----------------------------------------------------------- Basic income (loss) per share............. $(2.15) $(0.13) $(0.35) $1.02 $1.48 ======= ======= ======= ===== ===== Diluted net income (loss) per share Net income (loss) before cumulative effect of change in accounting principle....... $0.08 $(0.13) $(0.35) $1.00 $1.42 Cumulative effect of change in accounting principle.................... (2.19) - - - - ----------------------------------------------------------- Diluted income (loss) per share........... $(2.11) $(0.13) $(0.35) $1.00 $1.42 ======= ======= ======= ===== ===== 23