The following note appeared in the 2002 Annual Repor t of Mercer International Inc.

2002 2001 2000 Net income (loss) available to shareholders of beneficial interest i(6,322) i(2,823) i32,013 BEPS weighted average number of shares outstanding – basic 16,774,515 16,874,899 16,778,962 Effect of dilutive securities:

Options — — 365,528 Weighted average number of shares outstanding – diluted 16,774,515 16,874,899 17,144,490 For 2002 and 2001 options and warrants were not included in the computation of diluted earnings per share because they were antidilutive. Warrants were not dilutive in 2000.

Explain

(a) why the BEPS shares were weighted and

(b) what is meant by antidilutive.