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<SEC-DOCUMENT>0000897101-07-002356.txt : 20071109
<SEC-HEADER>0000897101-07-002356.hdr.sgml : 20071109
<ACCEPTANCE-DATETIME>20071109090450
ACCESSION NUMBER:		0000897101-07-002356
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		6
CONFORMED PERIOD OF REPORT:	20070930
FILED AS OF DATE:		20071109
DATE AS OF CHANGE:		20071109

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			HAWKINS INC
		CENTRAL INDEX KEY:			0000046250
		STANDARD INDUSTRIAL CLASSIFICATION:	WHOLESALE-CHEMICALS & ALLIED PRODUCTS [5160]
		IRS NUMBER:				410771293
		STATE OF INCORPORATION:			MN
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-07647
		FILM NUMBER:		071228454

	BUSINESS ADDRESS:	
		STREET 1:		3100 E HENNEPIN AVE
		CITY:			MINNEAPOLIS
		STATE:			MN
		ZIP:			55413
		BUSINESS PHONE:		6123316910

	MAIL ADDRESS:	
		STREET 1:		3100 EAST HENNEPIN AVENUE
		CITY:			MINNEAPOLIS
		STATE:			MN
		ZIP:			55413

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	HAWKINS CHEMICAL INC
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>hawkins074577_10q.htm
<DESCRIPTION>FORM 10-Q FOR THE QUARTER ENDED 9-30-2007
<TEXT>
<HTML>
<HEAD><TITLE>Hawkins, Inc. Form 10-Q</TITLE></HEAD>
<BODY>

<p style=' margin-bottom:6pt; margin-top:6pt;text-align:left;'><font size=2><A HREF="#toc">Table of Contents</A></FONT></P>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 2pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 1pt solid"></DIV>

<P ALIGN=CENTER><FONT SIZE=4><B>UNITED STATES<BR>
</B></FONT><FONT SIZE=4><B>SECURITIES AND
EXCHANGE COMMISSION<BR>
</B><FONT SIZE=2><B>WASHINGTON, D.C. 20549</B></FONT></FONT></P>
<HR width="20%" size=1 color=black>
<P ALIGN=CENTER><FONT SIZE=6><B>FORM 10-Q</B></FONT></P>
<HR width="20%" size=1 color=black>
<P ALIGN=CENTER><FONT SIZE=3><B>QUARTERLY REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE<BR>
SECURITIES EXCHANGE ACT OF 1934</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=3><B>For the quarterly
period ended September 30, 2007</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=3><B>Commission file
number 0-7647</B></FONT></P>
<HR width="20%" size=1 color=black><BR>
<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
 <TD WIDTH="100%" VALIGN=TOP>
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=6><B>HAWKINS, INC.</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>(Exact name of registrant as specified in
 its charter)</FONT></P>
 </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
 <TD WIDTH="45%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="54%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=3><B>MINNESOTA</B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=3><B>41-0771293</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>(State or other jurisdiction of<BR>
 incorporation or organization)</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>(I.R.S. Employer Identification No.)</FONT></P>
 </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
 <TD WIDTH="100%" VALIGN=TOP>
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=3><B>3100 EAST HENNEPIN AVENUE, MINNEAPOLIS, MINNESOTA 55413</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>(Address of principal executive offices,
 including zip code)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=3><B>(612) 331-6910</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>(Registrant&#146;s telephone number, including
 area code)</FONT></P>
 </TD>
 </TR>
</table><BR>
<HR width="20%" size=1 color=black>
<P><FONT SIZE=3>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 period that the registrant was
required to file such reports) and (2) has been subject to such filing
requirements for the past 90 days.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=3>YES&nbsp;&nbsp;&nbsp;<FONT SIZE=3 FACE=WINGDINGS>x</FONT><FONT
SIZE=3>&nbsp;&nbsp;&nbsp;&nbsp;NO&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=3 FACE=WINGDINGS>o</FONT></FONT></P>

<P><FONT SIZE=3>Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer (as defined in Rule 12b-2 of the
Exchange Act).</FONT></P>

<P ALIGN=CENTER><FONT SIZE=3>Large Accelerated Filer </FONT><FONT SIZE=3 FACE=WINGDINGS>o&nbsp;&nbsp;</FONT><FONT
SIZE=3>Accelerated Filer </FONT><FONT SIZE=3 FACE=WINGDINGS>x&nbsp;&nbsp;</FONT><FONT SIZE=3>Non-Accelerated Filer </FONT><FONT
SIZE=3 FACE=WINGDINGS>o</FONT></P>

<P><FONT SIZE=3>Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act).</FONT></P>

<P ALIGN=CENTER><FONT SIZE=3>YES&nbsp;&nbsp;&nbsp;<FONT SIZE=3 FACE=WINGDINGS>o</FONT>&nbsp;&nbsp;&nbsp;&nbsp;<FONT
SIZE=3>NO&nbsp;&nbsp;&nbsp;</FONT><FONT SIZE=3 FACE=WINGDINGS>x</FONT></FONT></P>

<P><FONT SIZE=3>Indicate the number of shares
outstanding of each of the issuer&#146;s classes of common stock, as of the latest
practicable date.</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
 <TD WIDTH="47%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="52%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>CLASS</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=2>OUTSTANDING
 AT NOVEMBER 9, 2007</FONT></P>
 </TD>
 </TR>
 <TR style="font-size:1 px">
 <TD COLSPAN="2" VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;


 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=3>Common
 Stock, par value $.05 per share</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=3>10,264,084</FONT></P>
 </TD>
 </TR>
</table>
<BR>

<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 1pt solid"></DIV>
<DIV style="FONT-SIZE: 1pt; WIDTH: 100%; BORDER-BOTTOM: black 2pt solid"></DIV>
<BR>

<!-- MARKER FORMAT-SHEET="Page Break" FSL="Workstation" -->



<BR>







<HR SIZE=3 COLOR=GRAY NOSHADE>
<!-- MARKER PAGE="sheet: 2; page: 2" -->
<BR>

<P ALIGN=CENTER><FONT SIZE=3><B><A NAME="toc">HAWKINS,</A> INC.<BR>
INDEX TO FORM 10-Q</B></FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
 <TD WIDTH="11%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="81%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="3%" VALIGN=TOP>
 <P ALIGN=CENTER>&nbsp;</P>
 </TD>
 <TD WIDTH="3%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN="2" VALIGN=TOP>
 <P ALIGN=CENTER><FONT SIZE=1><B>Page</B></FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2><B><A HREF="#A001">PART I.</A></B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2><B><A HREF="#A001">FINANCIAL INFORMATION</A></B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><A  HREF="#A002">Item 1.</A></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><A  HREF="#A002">Financial Statements:</A></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><A  HREF="#A003">Condensed Balance Sheets &#150; September 30, 2007 and April 1, 2007</A></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=2>3</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><A  HREF="#A004">Condensed Statements of Income - Three and Six Months Ended
 September 30, 2007 and 2006</A></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=2>4</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><A  HREF="#A005">Condensed Statements of Cash Flows - Six Months Ended September
 30, 2007 and 2006</A></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=2>5</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><A  HREF="#A006">Notes to Condensed Financial Statements &#150; Unaudited</A></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=2>6</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><A  HREF="#A007">Item 2.</A></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><A  HREF="#A007">Management&#146;s Discussion and Analysis of Financial Condition and
 Results of Operations</A></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=2>9</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><A  HREF="#A008">Item 3.</A></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><A HREF="#A008">Quantitative
 and Qualitative Disclosures about Market Risk</A></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=2>13</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><A  HREF="#A009">Item 4.</A></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><A  HREF="#A009">Controls and Procedures</A></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=2>14</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B><A HREF="#A010">PART II.</A></B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><B><A HREF="#A010">OTHER INFORMATION</A></B></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><A  HREF="#A011">Item 1A.</A></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><A  HREF="#A011">Risk Factors</A></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=2>15</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><A  HREF="#A012">Item 4.</A></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><A  HREF="#A012">Submission of Matters to a Vote of Security Holders</A></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=2>15</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><A  HREF="#A013">Item 6.</A></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=2><A  HREF="#A013">Exhibits</A></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=2>15</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN="2" VALIGN=TOP>
 <P><FONT SIZE=2><A  HREF="#A014">Signatures</A></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=2>16</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD COLSPAN="2" VALIGN=TOP>
 <P><FONT SIZE=2><A  HREF="#A015">Exhibit Index</A></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=2>17</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
</table>

<P ALIGN=CENTER><FONT SIZE=2>2</FONT></P>





<HR SIZE=3 COLOR=GRAY NOSHADE>
<!-- MARKER PAGE="sheet: 2; page: 2" -->
<p><font size=2><A HREF="#toc">Table of Contents</A></FONT></P>



<P ALIGN=CENTER><A NAME=A001></A><FONT SIZE=3><B>PART I. FINANCIAL INFORMATION</B></FONT></P>


<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=3><A NAME=A002></A>ITEM 1.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3>FINANCIAL STATEMENTS</FONT></P>
</TD>
</TR>
</table>


<P><FONT SIZE=2><B>HAWKINS,
INC.<BR>
<A NAME=A003></A>CONDENSED BALANCE SHEETS</B></FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
 <TD WIDTH="63%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="12%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="4%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="11%" VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD WIDTH="1%" VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN="2" VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1><B>SEPTEMBER 30,<BR>
 2007<BR>
 (UNAUDITED)</B></FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD COLSPAN="2" VALIGN=BOTTOM>
 <P ALIGN=CENTER><FONT SIZE=1><B>APRIL 1,<BR>
 2007<BR>
 (DERIVED FROM AUDITED<BR>
 FINANCIAL STATEMENTS</B><FONT SIZE=1><B>)</B></FONT></FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR style="font-size:1 px">
 <TD VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD COLSPAN="2" VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;


 </TD>
 <TD VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD COLSPAN="2" VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;


 </TD>
 <TD VALIGN=TOP>
 <P>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>ASSETS</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>CURRENT ASSETS:</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Cash and cash equivalents</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=2>13,691,042</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=2>11,592,939</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Investments available-for-sale</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>10,457,960</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>13,712,540</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Trade receivables - net</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=2>19,322,925</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=2>19,663,169</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Inventories</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>19,268,112</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>12,786,348</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Prepaid expenses and other current assets</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=2>1,355,363</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=2>3,214,254</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR style="font-size:1 px">
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;


 </TD>
 <TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;


 </TD>
 <TD VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;


 </TD>
 <TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;


 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Total current assets</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>64,095,402</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>60,969,250</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>PROPERTY, PLANT AND EQUIPMENT &#150; net</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=2>35,636,820</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=2>34,720,460</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>INTANGIBLE ASSETS - less accumulated amortization of $1,822,784 and
$1,643,308, respectively</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>7,140,016</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>1,839,725</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>LONG-TERM INVESTMENTS</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=2>1,555,310</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=2>3,013,888</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>OTHER ASSETS</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>576,477</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>725,271</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR style="font-size:1 px">
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;


 </TD>
 <TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;


 </TD>
 <TD VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;


 </TD>
 <TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;


 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=2>109,004,025</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=2>101,268,594</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR style="font-size:1 px">
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;


 </TD>
 <TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;


 </TD>
 <TD VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;


 </TD>
 <TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;


 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>LIABILITIES AND SHAREHOLDERS&#146; EQUITY</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>CURRENT LIABILITIES:</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Accounts payable &#150; trade</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>14,597,261</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>10,891,162</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Dividends payable</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=2>2,463,380</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=2>2,247,686</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Accrued payroll and employee benefits</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>4,294,530</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>5,221,005</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Other current liabilities</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=2>2,739,225</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=2>2,371,904</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR style="font-size:1 px">
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;


 </TD>
 <TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;


 </TD>
 <TD VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;


 </TD>
 <TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;


 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Total current liabilities</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>24,094,396</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>20,731,757</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>OTHER LONG-TERM LIABILITIES</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=2>132,023</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=2>138,673</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>DEFERRED INCOME TAXES</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>443,767</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>420,521</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>COMMITMENTS AND CONTINGENCIES</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=2> </FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>SHAREHOLDERS&#146; EQUITY:</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Common stock, par value $.05 per share; 10,211,827
and
 10,171,496 shares issued and outstanding, respectively</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=2>510,591</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=2>508,575</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Additional paid-in capital</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>38,150,662</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>37,242,090</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Accumulated other comprehensive gain
(loss)</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=2>22,894</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=2>(13,605</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR=#d6f3e8>
 <P ALIGN="LEFT"><FONT SIZE=2>)</FONT></P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Retained earnings</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>45,649,692</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>42,240,583</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR style="font-size:1 px">
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;


 </TD>
 <TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;


 </TD>
 <TD VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;


 </TD>
 <TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;


 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Total shareholders&#146; equity</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=2>84,333,839</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=2>79,977,643</FONT></P>
 </TD>
 <TD VALIGN=TOP BGCOLOR=#d6f3e8>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR style="font-size:1 px">
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;


 </TD>
 <TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;


 </TD>
 <TD VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;


 </TD>
 <TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;


 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 </TR>
 <TR>
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>109,004,025</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P><FONT SIZE=2>$</FONT></P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P ALIGN=RIGHT><FONT SIZE=2>101,268,594</FONT></P>
 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
 </TD>
 </TR>
 <TR style="font-size:1 px">
 <TD VALIGN=BOTTOM>
 <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
 </TD>
 <TD VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;


 </TD>
 <TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;


 </TD>
 <TD VALIGN=BOTTOM>
 <P>&nbsp;</P>
 </TD>
 <TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;


 </TD>
 <TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;


 </TD>
 <TD VALIGN=TOP>
 <P ALIGN=RIGHT>&nbsp;</P>
 </TD>
 </TR>
</table>

<P><FONT SIZE=2>See accompanying notes to condensed
financial statements &#150; unaudited.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>3</FONT></P>





<HR SIZE=3 COLOR=GRAY NOSHADE>
<!-- MARKER PAGE="sheet: 2; page: 2" -->
<p><font size=2><A HREF="#toc">Table of Contents</A></FONT></P>




<P><FONT SIZE=2><B>HAWKINS,
INC.<BR>
<A NAME=A004></A>CONDENSED STATEMENTS OF INCOME </B></FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="43%" VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="10%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="10%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="10%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="10%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER STYLE='MARGIN-LEFT:8.65PT;  TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>THREE MONTHS ENDED <BR>
 SEPTEMBER 30</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>SIX MONTHS ENDED </B><FONT SIZE=1><B><BR>
 </B></FONT><FONT SIZE=1><B>SEPTEMBER 30</B></FONT></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER STYLE='MARGIN-LEFT:8.65PT;  TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER STYLE='MARGIN-LEFT:8.65PT;  TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>2007</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>2006</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>2007</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>2006</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER STYLE='MARGIN-LEFT:8.65PT;  TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER STYLE='MARGIN-LEFT:8.65PT;  TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>(UNAUDITED)</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>(UNAUDITED)</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER STYLE='MARGIN-LEFT:8.65PT;  TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR BGCOLOR="#D6F3E8">
<TD VALIGN=BOTTOM >
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Sales</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>48,143,856</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>42,200,162</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>96,766,581</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>83,660,825</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Cost of sales</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>36,268,357</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>31,023,515</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>73,060,531</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>61,661,093</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR BGCOLOR="#D6F3E8">
<TD VALIGN=BOTTOM >
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Gross margin</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>11,875,499</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>11,176,647</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>23,706,050</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>21,999,732</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM >
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Selling, general
 and administrative expenses</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>7,498,645</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>6,482,276</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>14,993,929</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>13,119,141</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR BGCOLOR="#D6F3E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Income from operations</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>4,376,854</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>4,694,371</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>8,712,121</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>8,880,591</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM >
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Investment income</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>312,265</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>347,757</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>614,568</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>649,004</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR BGCOLOR="#D6F3E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Income before income taxes</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>4,689,119</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>5,042,128</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>9,326,689</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>9,529,595</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM >
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Provision for income taxes</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>1,767,700</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>1,896,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>3,454,200</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>3,583,500</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR BGCOLOR="#D6F3E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Net income</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>2,921,419</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>3,146,128</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>5,872,489</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>5,946,095</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM >
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Weighted average
 number of shares<BR>
 outstanding &#150; basic</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>10,211,827</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>10,171,496</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>10,198,531</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>10,171,496</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR BGCOLOR="#D6F3E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Weighted average
 number of shares<BR>
 outstanding &#150; diluted</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>10,241,865</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>10,171,496</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>10,223,228</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>10,171,496</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM >
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Earnings per
 share &#150; basic</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>0.29</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>0.31</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>0.58</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>0.58</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR BGCOLOR="#D6F3E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Earnings per
 share &#150; diluted</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>0.29</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>0.31</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>0.57</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>0.58</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM >
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Cash dividends declared per common share</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>0.24</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>0.22</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>0.24</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>0.22</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
</table>

<P><FONT SIZE=2>See accompanying notes to condensed financial statements
- - unaudited.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>4</FONT></P>





<HR SIZE=3 COLOR=GRAY NOSHADE>
<!-- MARKER PAGE="sheet: 2; page: 2" -->
<p><font size=2><A HREF="#toc">Table of Contents</A></FONT></P>



<P><FONT SIZE=2><B>HAWKINS,
INC.<BR>
<A NAME=A005></A>CONDENSED STATEMENTS OF CASH FLOWS</B></FONT></P>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" WIDTH="100%">
                        <TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN="BOTTOM" STYLE="border-bottom:solid black 1px">
<P ALIGN=CENTER><FONT SIZE=1><B>SIX MONTHS ENDED<BR>
 SEPTEMBER 30</B></FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
                        <TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN="BOTTOM" STYLE="border-bottom:solid black 1px">
<P ALIGN=CENTER><FONT SIZE=1><B>2007</B></FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN="BOTTOM" STYLE="border-bottom:solid black 1px">
<P ALIGN=CENTER><FONT SIZE=1><B>2006</B></FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
                        <TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN="BOTTOM">
<P ALIGN=CENTER><FONT SIZE=1><B>(UNAUDITED</B><FONT SIZE=1><B>)</B></FONT></FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
                        <TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>

<TR>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="71%">
<P><FONT SIZE=2>CASH FLOWS FROM OPERATING
 ACTIVITIES:</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Net income</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>5,872,489</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>5,946,095</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="71%">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Reconciliation to cash flows:</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Depreciation and amortization</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>2,497,776</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>1,878,365</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="71%">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Restricted stock compensation expense</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>322,588</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Impairment of investments</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>30,595</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="71%">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Loss from property disposals</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>59,632</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>66,446</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Changes in operating accounts providing (using) cash:</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="71%">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Trade receivables</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>1,454,984</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>(517,716</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8">
<P><FONT SIZE=2>)</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Inventories</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>(6,216,449</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=2>)</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>(4,212,962</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P><FONT SIZE=2>)</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="71%">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Accounts payable</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>2,659,498</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>(1,758,173</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8">
<P><FONT SIZE=2>)</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Other liabilities</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>(1,240,409</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=2>)</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>281,746</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="71%">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:34.55PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Other</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>2,013,176</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>493,761</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR style="font-size:1 px">
<TD VALIGN="BOTTOM" WIDTH="71%">
<P>&nbsp;</P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P>&nbsp;</P>
</TD>
<TD VALIGN="BOTTOM" STYLE="border-bottom:solid black 1px" WIDTH="1%">&nbsp;

</TD>
<TD VALIGN="BOTTOM" STYLE="border-bottom:solid black 1px" WIDTH="10%">&nbsp;

</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P>&nbsp;</P>
</TD>
<TD VALIGN="BOTTOM" STYLE="border-bottom:solid black 1px" WIDTH="1%">&nbsp;

</TD>
<TD VALIGN="BOTTOM" STYLE="border-bottom:solid black 1px" WIDTH="10%">&nbsp;

</TD>
                                <TD VALIGN="BOTTOM">
<P>&nbsp;</P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Net cash provided by operating activities</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>7,423,285</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>2,208,157</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="71%">
<P><FONT SIZE=2>CASH FLOWS FROM INVESTING
 ACTIVITIES:</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Additions to property, plant and equipment</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>(2,626,476</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=2>)</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>(2,859,147</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P><FONT SIZE=2>)</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="71%">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Sale and maturities of investments</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>4,751,977</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>1,588,710</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Proceeds from property disposals</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>59,604</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>74,494</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="71%">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Payments received on notes receivable</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>83,396</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Acquisition of Trumark</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>(5,262,601</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=2>)</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR style="font-size:1 px">
<TD VALIGN="BOTTOM" WIDTH="71%">
<P>&nbsp;</P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P>&nbsp;</P>
</TD>
<TD VALIGN="BOTTOM" STYLE="border-bottom:solid black 1px" WIDTH="1%">&nbsp;

</TD>
<TD VALIGN="BOTTOM" STYLE="border-bottom:solid black 1px" WIDTH="10%">&nbsp;

</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P>&nbsp;</P>
</TD>
<TD VALIGN="BOTTOM" STYLE="border-bottom:solid black 1px" WIDTH="1%">&nbsp;

</TD>
<TD VALIGN="BOTTOM" STYLE="border-bottom:solid black 1px" WIDTH="10%">&nbsp;

</TD>
                                <TD VALIGN="BOTTOM">
<P>&nbsp;</P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="71%">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Net cash used in investing activities</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>(3,077,496</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=2>)</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>(1,112,547</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8">
<P><FONT SIZE=2>)</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P><FONT SIZE=2>CASH FLOWS FROM FINANCING
 ACTIVITIES:</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="71%">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Cash dividends paid</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>(2,247,686</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=2>)</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>(2,034,299</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8">
<P><FONT SIZE=2>)</FONT></P>
</TD>
                        </TR>
<TR style="font-size:1 px">
<TD VALIGN="BOTTOM" WIDTH="71%">
<P>&nbsp;</P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P>&nbsp;</P>
</TD>
<TD VALIGN="BOTTOM" STYLE="border-bottom:solid black 1px" WIDTH="1%">&nbsp;

</TD>
<TD VALIGN="BOTTOM" STYLE="border-bottom:solid black 1px" WIDTH="10%">&nbsp;

</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P>&nbsp;</P>
</TD>
<TD VALIGN="BOTTOM" STYLE="border-bottom:solid black 1px" WIDTH="1%">&nbsp;

</TD>
<TD VALIGN="BOTTOM" STYLE="border-bottom:solid black 1px" WIDTH="10%">&nbsp;

</TD>
                                <TD VALIGN="BOTTOM">
<P>&nbsp;</P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Net cash used in financing activities</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>(2,247,686</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=2>)</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>(2,034,299</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P><FONT SIZE=2>)</FONT></P>
</TD>
                        </TR>
<TR style="font-size:1 px">
<TD VALIGN="BOTTOM" WIDTH="71%">
<P>&nbsp;</P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P>&nbsp;</P>
</TD>
<TD VALIGN="BOTTOM" STYLE="border-bottom:solid black 1px" WIDTH="1%">&nbsp;

</TD>
<TD VALIGN="BOTTOM" STYLE="border-bottom:solid black 1px" WIDTH="10%">&nbsp;

</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P>&nbsp;</P>
</TD>
<TD VALIGN="BOTTOM" STYLE="border-bottom:solid black 1px" WIDTH="1%">&nbsp;

</TD>
<TD VALIGN="BOTTOM" STYLE="border-bottom:solid black 1px" WIDTH="10%">&nbsp;

</TD>
                                <TD VALIGN="BOTTOM">
<P>&nbsp;</P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="71%">
<P><FONT SIZE=2>INCREASE (DECREASE) IN CASH
 AND CASH EQUIVALENTS</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>2,098,103</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>(938,689</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8">
<P><FONT SIZE=2>)</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P><FONT SIZE=2>CASH AND CASH EQUIVALENTS,
 BEGINNING OF PERIOD</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>11,592,939</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>6,330,004</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR style="font-size:1 px">
<TD VALIGN="BOTTOM" WIDTH="71%">
<P>&nbsp;</P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P>&nbsp;</P>
</TD>
<TD VALIGN="BOTTOM" STYLE="border-bottom:solid black 1px" WIDTH="1%">&nbsp;

</TD>
<TD VALIGN="BOTTOM" STYLE="border-bottom:solid black 1px" WIDTH="10%">&nbsp;

</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P>&nbsp;</P>
</TD>
<TD VALIGN="BOTTOM" STYLE="border-bottom:solid black 1px" WIDTH="1%">&nbsp;

</TD>
<TD VALIGN="BOTTOM" STYLE="border-bottom:solid black 1px" WIDTH="10%">&nbsp;

</TD>
                                <TD VALIGN="BOTTOM">
<P>&nbsp;</P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="71%">
<P><FONT SIZE=2>CASH AND CASH EQUIVALENTS,
 END OF PERIOD</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>13,691,042</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>5,391,315</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR style="font-size:1 px">
<TD VALIGN="BOTTOM" WIDTH="71%">
<P>&nbsp;</P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P>&nbsp;</P>
</TD>
<TD VALIGN="BOTTOM" STYLE="border-bottom:double black 3px" WIDTH="1%">&nbsp;

</TD>
<TD VALIGN="BOTTOM" STYLE="border-bottom:double black 3px" WIDTH="10%">&nbsp;

</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P>&nbsp;</P>
</TD>
<TD VALIGN="BOTTOM" STYLE="border-bottom:double black 3px" WIDTH="1%">&nbsp;

</TD>
<TD VALIGN="BOTTOM" STYLE="border-bottom:double black 3px" WIDTH="10%">&nbsp;

</TD>
                                <TD VALIGN="BOTTOM">
<P>&nbsp;</P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P><FONT SIZE=2>SUPPLEMENTAL DISCLOSURES OF
 CASH FLOW INFORMATION:</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="71%">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Cash paid for income taxes</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>1,473,790</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="1%">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>2,823,000</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM" BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
<TR>
<TD VALIGN="BOTTOM" WIDTH="71%">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:25.9PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Noncash investing activities-<BR>Capital expenditures in accounts payable</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>617,352</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="3%">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="1%">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN="BOTTOM" WIDTH="10%">
<P ALIGN=RIGHT><FONT SIZE=2>267,042</FONT></P>
</TD>
                                <TD VALIGN="BOTTOM">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
                        </TR>
</table>

<P><FONT SIZE=2>See accompanying notes to condensed financial statements
- - unaudited.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>5</FONT></P>



<HR SIZE=3 COLOR=GRAY NOSHADE>
<!-- MARKER PAGE="sheet: 2; page: 2" -->
<p><font size=2><A HREF="#toc">Table of Contents</A></FONT></P>




<P STYLE=' TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK><B>HAWKINS, INC. </B></FONT><BR><A NAME=A006></A><FONT SIZE=2 COLOR=BLACK><B>NOTES TO CONDENSED
FINANCIAL STATEMENTS - UNAUDITED </B></FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD WIDTH=289 VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>1.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>The accompanying unaudited condensed
 financial statements have been prepared in accordance with the instructions
 for Form 10-Q and, accordingly, do not include all information and footnotes
 required by generally accepted accounting principles for complete financial
 statements. These statements should be read in conjunction with the financial
 statements and footnotes included in the Company&#146;s Annual Report on Form 10-K
 for the fiscal year ended April 1, 2007, previously filed with the Securities
 and Exchange Commission (the &#147;Commission&#148;). In the opinion of management, the
 accompanying unaudited condensed financial statements contain all adjustments
 necessary to present fairly the Company&#146;s financial position and the results
 of its operations and cash flows for the periods presented. All adjustments
 made to the interim financial statements were of a normal recurring nature. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>The accounting policies followed by the
 Company are set forth in Note 1 to the Company&#146;s financial statements in the
 Company&#146;s Annual Report on Form 10-K for the fiscal year ended April 1, 2007
 filed with the Commission on June 15, 2007.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>In the preparation of the Company&#146;s
 financial statements, management calculates income taxes based upon the
 estimated effective rate applicable to operating results for the full fiscal
 year. This includes estimating the current tax liability as well as assessing
 differences resulting from different treatment of items for tax and book
 accounting purposes. These differences result in deferred tax assets and
 liabilities, which are recorded on the balance sheet. These assets and
 liabilities are analyzed regularly and management assesses the likelihood
 that deferred tax assets will be recovered from future taxable income. The
 Company records any interest and penalties related to income taxes as income
 tax expense in the condensed statements of income. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>The Company is subject to U.S. federal
 income tax as well as income tax of multiple state jurisdictions. The tax
 years beginning with 2003 remain open to examination by the Internal Revenue
 Service. The sufficient state jurisdictions of Minnesota, Iowa, North Dakota,
 South Dakota, and Wisconsin have tax years beginning with 2003 open to
 examination. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>2.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>The results of operations for the
 periods ended September 30, 2007 are not necessarily indicative of the
 results that may be expected for the full year. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>3.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>Inventories, principally valued by the
 LIFO method, are less than current cost by approximately $3,110,000 and
 $3,170,000 at September 30, 2007 and April 1, 2007, respectively. Inventory
 consists principally of finished goods. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>4.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>A summary of our intangible assets and goodwill is as
follows:</FONT></P>
</TD>
</TR>
</table>

<BR>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%">
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD WIDTH="78%">
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD WIDTH="3%">
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD WIDTH="1%">
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD WIDTH="12%" VALIGN="BOTTOM">
<P ALIGN=CENTER STYLE='TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD WIDTH="1%">
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
</TR>
<TR>
<TD STYLE='  TEXT-AUTOSPACE:NONE'>
<p><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD STYLE="  TEXT-AUTOSPACE:NONE">
<p><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD STYLE="  TEXT-AUTOSPACE:NONE">

<p><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER ><FONT SIZE=1 COLOR=BLACK><B>Amortizable<BR>
 Intangible Assets<BR>
 April 1, 2007</B></FONT></P>
</TD>
<TD STYLE='  TEXT-AUTOSPACE:NONE'><p>&nbsp;</P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD >
<p>&nbsp;</P>
</TD>
<TD>
<p>&nbsp;</P>
</TD>
<TD>
<p>&nbsp;</P>
</TD>
<TD COLSPAN="2" style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD STYLE='  TEXT-AUTOSPACE:NONE'><p>&nbsp;</P>
</TD>
</TR>
<TR>
<TD >
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>


<TR>
<TD STYLE='  TEXT-AUTOSPACE:NONE'><p><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>Gross</FONT></P>
</TD>
<TD BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>$</FONT></P>
</TD>
<TD BGCOLOR="#d6f3e8">
<P ALIGN=RIGHT STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>3,483,033</FONT></P>
</TD>
<TD BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD STYLE='  TEXT-AUTOSPACE:NONE'>

<p><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD STYLE="  TEXT-AUTOSPACE:NONE">

<p><FONT SIZE=2 COLOR=BLACK>Accumulated amortization</FONT></P>
</TD>
<TD STYLE="  TEXT-AUTOSPACE:NONE">

<p><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD STYLE="  TEXT-AUTOSPACE:NONE">

<p><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD ALIGN="RIGHT" STYLE="TEXT-AUTOSPACE:NONE">

<p><FONT SIZE=2 COLOR=BLACK>(1,643,308</FONT></P>
</TD>
<TD STYLE='  TEXT-AUTOSPACE:NONE'>

<p><FONT SIZE=2 COLOR=BLACK>)</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD STYLE='  TEXT-AUTOSPACE:NONE'><p>&nbsp;</P>
</TD>
<TD STYLE="  TEXT-AUTOSPACE:NONE"><p>&nbsp;</P>
</TD>
<TD STYLE="  TEXT-AUTOSPACE:NONE"><p>&nbsp;</P>
</TD>
<TD VALIGN="TOP" STYLE="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN="TOP" STYLE="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD STYLE='  TEXT-AUTOSPACE:NONE'><p><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>Net</FONT></P>
</TD>
<TD BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>$</FONT></P>
</TD>
<TD BGCOLOR="#d6f3e8">
<P ALIGN=RIGHT STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>1,839,725</FONT></P>
</TD>
<TD BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD STYLE='  TEXT-AUTOSPACE:NONE'><p>&nbsp;</P>
</TD>
<TD STYLE="  TEXT-AUTOSPACE:NONE"><p>&nbsp;</P>
</TD>
<TD STYLE="  TEXT-AUTOSPACE:NONE"><p>&nbsp;</P>
</TD>
<TD VALIGN="TOP" STYLE="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN="TOP" STYLE="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
</table>

<BR>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN="BOTTOM">
<P ALIGN=CENTER STYLE='TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD WIDTH="62%" VALIGN="BOTTOM">
<P ALIGN=CENTER STYLE='TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN="BOTTOM">
<P ALIGN=CENTER STYLE='TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN="BOTTOM">
<P ALIGN=CENTER STYLE='TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD WIDTH="12%" VALIGN="BOTTOM">
<P ALIGN=CENTER STYLE='TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN="BOTTOM">
<P ALIGN=CENTER STYLE='TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN="BOTTOM">
<P ALIGN=CENTER STYLE='TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD WIDTH="12%" VALIGN="BOTTOM">
<P ALIGN=CENTER STYLE='TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN="BOTTOM">
<P ALIGN=CENTER STYLE='TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN="BOTTOM">
<P ALIGN=CENTER STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM">
<P ALIGN=CENTER STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM">
<P ALIGN=CENTER STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=1 COLOR=BLACK><B>Unamortizable<BR>
 Intangible Assets</B></FONT></P>
</TD>
<TD VALIGN="BOTTOM">
<P ALIGN=CENTER STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=1 COLOR=BLACK><B>Amortizable<BR>
 Intangible Assets</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN="TOP">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=1 COLOR=BLACK><B>September 30, 2007</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN="TOP">
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD VALIGN="BOTTOM">
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD VALIGN="BOTTOM">
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
</TR>

<TR>
<TD>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN="TOP">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>Gross</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>$</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#d6f3e8">
<P ALIGN=RIGHT STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>1,228,000</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>$</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#d6f3e8">
<P ALIGN=RIGHT STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>6,214,032</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>Accumulated amortization</FONT></P>
</TD>
<TD VALIGN="BOTTOM">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM">
<P ALIGN=RIGHT STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>&#151;</FONT></P>
</TD>
<TD VALIGN="BOTTOM">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM">
<P ALIGN=RIGHT STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>(1,822,784</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>)</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN="TOP">
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD VALIGN="BOTTOM">
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD VALIGN="BOTTOM">
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN="TOP" STYLE="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN="TOP" STYLE="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN="TOP" STYLE="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>Net</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>$</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#d6f3e8">
<P ALIGN=RIGHT STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>1,228,000</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>$</FONT></P>
</TD>
<TD VALIGN="BOTTOM" BGCOLOR="#d6f3e8">
<P ALIGN=RIGHT STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>4,391,248</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN="TOP">
<P >&nbsp;</P>
</TD>
<TD VALIGN="BOTTOM">
<P >&nbsp;</P>
</TD>
<TD VALIGN="BOTTOM">
<P >&nbsp;</P>
</TD>
<TD VALIGN=TOP style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN="TOP" STYLE="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN="TOP" STYLE="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN="TOP" STYLE="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
</table>

<BR>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 width="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>Intangible assets consist primarily of
 customer lists, trademarks, and trade names in current and previous business
 acquisitions. </FONT></P>
</TD>
</TR>
</table>

<P ALIGN=CENTER STYLE='MARGIN-LEFT:.5IN; TEXT-INDENT:-.5IN;TEXT-AUTOSPACE: NONE'><FONT SIZE=2 COLOR=BLACK>6</FONT></P>



<HR SIZE=3 COLOR=GRAY NOSHADE>
<!-- MARKER PAGE="sheet: 2; page: 2" -->
<p><font size=2><A HREF="#toc">Table of Contents</A></FONT></P>



<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 width="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>The change in the carrying amount of
 goodwill (included in Intangible Assets on the statement of financial
 condition) for the six months ended September 30, 2007 is as follows: </FONT></P>
</TD>
</TR>
</table>

<BR>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 width="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD WIDTH="80%" VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD WIDTH="10%" VALIGN=BOTTOM>
<P ALIGN=RIGHT STYLE='TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>Balance April 1, 2007</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P ALIGN=RIGHT STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>Goodwill associated with acquisition</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>1,520,768</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>Balance September 30, 2007</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P ALIGN=RIGHT STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>1,520,768</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
</TR>
</table>

<BR>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 width="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>5.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>Comprehensive income and its components,
 net of tax, were as follows: </FONT></P>
</TD>
</TR>
</table>

<BR>

<TABLE ALIGN=CENTER BORder=0 CELLSPACING=0 CELLPADDING=0 width="95%" style="margin-left:5%">
<TR style="font-size:1px">
<TD WIDTH="43%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="10%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="10%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="10%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="10%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1  COLOR=BLACK><B>Three months ended<BR>
 September 30</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1  COLOR=BLACK><B>Six months ended<BR>
 September 30</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD COLSPAN="5" VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>

</TD>
<TD COLSPAN="5" VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1  COLOR=BLACK><B>2007</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1  COLOR=BLACK><B>2006</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1  COLOR=BLACK><B>2007</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1  COLOR=BLACK><B>2006</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>Net income</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P ALIGN=RIGHT STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>2,921,419</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P ALIGN=RIGHT STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>3,146,128</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P ALIGN=RIGHT STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>5,872,489</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P ALIGN=RIGHT STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>5,946,095</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>Available-for-sale investments
 unrealized gain</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>57,080</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>80,449</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>36,499</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>79,637</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>Comprehensive income</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P ALIGN=RIGHT STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>2,978,499</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P ALIGN=RIGHT STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>3,226,577</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P ALIGN=RIGHT STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>5,908,988</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P ALIGN=RIGHT STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>6,025,732</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#d6f3e8">
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:double black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
</TR>
</table>

<BR>
<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>6.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>We adopted Financial Accounting
 Standards Board (FASB) Interpretation (FIN) No. 48, &#147;Accounting for
 Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109&#148; on
 April 2, 2007. The adoption of FIN 48 resulted in no impact on our results of
 operations and financial condition. <BR><BR>In September 2006, the FASB issued
 Statement of Financial Accounting Standards (SFAS) No. 157, &#147;Fair Value
 Measurements.&#148; This statement establishes a consistent framework for
 measuring fair value and expands disclosures on fair value measurements. SFAS
 157 is effective for the Company starting in fiscal 2009. We have not
 determined the impact, if any, the adoption of this statement will have on
 our financial statements. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>In February 2007, the FASB issued SFAS
 No. 159, &#147;The Fair Value Option for Financial Assets and Financial
 Liabilities.&#148; SFAS 159 permits entities to choose to measure many financial
 instruments and certain other items at fair value that are not currently
 required to be measured at fair value. SFAS 159 is effective for fiscal years
 beginning after November 15, 2007. We are currently evaluating the impact of
 adopting SFAS 159 on our results of operations and financial condition. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>In June 2007, the FASB ratified the
 Emerging Issues Task Force (EITF) Issue No. 06-11, &#147;Accounting for Income Tax
 Benefits of Dividends on Share Based Payment Awards.&#148; EITF 06-11 requires
 companies to recognize the income tax benefit realized from dividends or
 dividend equivalents that are charged to retained earnings and paid to
 employees for nonvested equity-classified employee share-based awards as an
 increase to additional paid-in capital. EITF 06-11 is effective for fiscal years
 beginning after September 15, 2007. We are currently evaluating the impact of
 adopting EITF 06-11 on our results of operations and financial condition. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>In June 2007, the FASB ratified EITF
 Issue No. 07-03, &#147;Accounting for Nonrefundable Advance Payments for Goods and
 Services Received for Use in Future Research and Development Activities.&#148;
 EITF 07-03 requires companies to defer nonrefundable advance payments for
 goods and services and to expense that advance payment as the goods are
 delivered or services are rendered. If the company does not expect to have
 the goods delivered or services performed, the advance should be expensed.
 EITF 07-03 is effective for fiscal years beginning after December 15, 2007.
 We are currently evaluating the impact of adopting EITF 07-03 on our results
 of operations and financial condition. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>7.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>The Company is involved in various legal
 actions arising from the normal course of business from time to time.
 Management is of the opinion that any judgment or settlement resulting from
 pending or threatened litigation would not have a material adverse effect on
 the financial position, results of operations or cash flows of the Company. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>The Company has two leases of land, and
 at the end of the lease term (currently 2018 if the leases are not renewed),
 the Company has a specified amount of time to remove the property and
 buildings. At the end of the specified amount of time, anything that remains
 on the land becomes the property of the lessor, and the lessor has the option
 to either maintain the property or remove the property at the Company&#146;s
 expense. The Company has not been able to reasonably estimate the fair value
 of the asset retirement obligations, primarily due to the combination of the
 following factors: the leases do not expire in the near future; the Company
 has a history of extending the leases with the lessor and currently intends
 to do so at expiration of this lease period; the lessor does not have a
 history of terminating leases with its tenants; and because it is more likely
 than not that the buildings will have value at the end of the lease life and
 therefore, may not be removed by either the lessee or the lessor. Therefore, in accordance with
 SFAS No. 143, &#147;Accounting for Asset Retirement Obligations,&#148; and FIN 47,
 &#147;Accounting for Conditional Asset Retirement Obligations- an interpretation
 of FASB Statement No. 143,&#148; the Company has not recorded an asset retirement
 obligation as of September 30, 2007. The Company will continue to monitor the
 factors surrounding the requirement to record an asset retirement obligation
 and will recognize the fair value of a liability in the period in which it is
 incurred and a reasonable estimate can be made. </FONT></P>
</TD>
</TR>
</table>

<P ALIGN=CENTER STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>7</FONT></P>



<HR SIZE=3 COLOR=GRAY NOSHADE>
<!-- MARKER PAGE="sheet: 2; page: 2" -->
<p><font size=2><A HREF="#toc">Table of Contents</A></FONT></P>



<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>8.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>On December 15, 2006, the Company issued
 45,257 shares of restricted stock to certain employees of the Company. The
 restricted stock awards are recorded as compensation cost over the requisite
 vesting period, which is one year of service, based on the market value on
 the date of grant. The grant date fair value on December 15, 2006 was $14.09.
 As of September 30, 2007, there was approximately $133,000 of total
 unrecognized compensation cost related to nonvested share-based compensation
 for this award. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>On September 18, 2007, the Company
 issued 7,000 shares of restricted stock to the Board of Directors as part of
 their annual retainer for their Board services. The restricted stock awards
 are expensed over the requisite vesting period, which is one year of service,
 based on the market value on the date of grant. The grant date fair value on
 September 18, 2007 was $14.48. As of September 30, 2007, there was
 approximately $98,000 of total unrecognized compensation cost related to
 nonvested share-based compensation for this award. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>9.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>On May 15, 2007, the Company signed an
 asset purchase agreement with Trumark, Inc., Trumark Ltd., Profloc Inc.
 (collectively Trumark) and the shareholders of each entity, under which the
 Company agreed to acquire substantially all of the assets of the entities and
 assume certain operating liabilities for approximately $6,000,000 in cash and
 stock consideration. On May 31, 2007, the acquisition was completed. The
 acquired business is a producer of antimicrobial products for the food
 industry. The acquired business is included in the Company&#146;s Industrial
 operating segment. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>The assets acquired consist of assets
 used by Trumark to operate its business, including intellectual property,
 manufacturing equipment and inventory. The purchase price consisted of cash
 and shares of the Company&#146;s stock. The Company funded the cash portion of the
 transaction with existing cash and issued new shares of common stock. The
 Company is continuing to identify and quantify assets acquired and
 liabilities assumed to complete the allocation of the purchase price. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P STYLE='  TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>The operations of Trumark are included
 in the Company&#146;s statement of income beginning on June 1, 2007. The proforma
 effect of this acquisition on prior period sales, operating income, and
 earnings per share was not significant. </FONT></P>
</TD>
</TR>
</table>

<BR><BR><BR><BR>
<P ALIGN=CENTER STYLE='TEXT-AUTOSPACE:NONE'><FONT SIZE=2 COLOR=BLACK>8</FONT></P>



<HR SIZE=3 COLOR=GRAY NOSHADE>
<!-- MARKER PAGE="sheet: 2; page: 2" -->
<p><font size=2><A HREF="#toc">Table of Contents</A></FONT></P>



<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The Company
 has three reportable segments: Industrial, Water Treatment and
 Pharmaceutical. Reportable segments are defined by product and type of
 customer. Segments are responsible for the sales, marketing and development
 of their products and services. The accounting policies of the segments are
 the same as those described in the summary of significant accounting
 policies. Product costs and expenses for each segment are based on actual
 costs incurred along with cost allocation of shared and centralized
 functions. The Company evaluates performance based on profit or loss from
 operations before income taxes not including nonrecurring gains and losses.
 The segments do not have separate accounting, administration, customer
 service or purchasing functions. There are no intersegment sales and no
 operating segments have been aggregated. Sales are primarily within the
 United States and all assets are located within the United States. </FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="38%" VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="9%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="11%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="10%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="9%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=1><B>Reportable Segments</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Industrial</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Water Treatment</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Pharmaceutical</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Total</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD COLSPAN="13" VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD COLSPAN="13" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR BGCOLOR="#D6F3E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Three Months Ended September 30, 2007:</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM >
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Sales</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>28,435,618</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>17,446,735</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>2,261,503</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>48,143,856</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR BGCOLOR="#D6F3E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Gross margin</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>5,007,679</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>6,088,817</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>779,003</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>11,875,499</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM >
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Income from operations</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>621,605</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>3,647,828</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>107,421</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>4,376,854</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR BGCOLOR="#D6F3E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Three Months Ended September 30, 2006:</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM >
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Sales</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>23,027,848</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>16,718,530</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>2,453,784</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>42,200,162</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR BGCOLOR="#D6F3E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Gross margin</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>4,981,466</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>5,417,211</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>777,970</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>11,176,647</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM >
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Income from operations</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>1,193,901</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>3,376,603</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>123,867</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>4,694,371</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR BGCOLOR="#D6F3E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Six Months Ended September 30, 2007:</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM >
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Sales</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>57,720,243</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>34,369,784</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>4,676,554</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>96,766,581</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR BGCOLOR="#D6F3E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Gross margin</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>10,507,532</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>11,641,779</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>1,556,739</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>23,706,050</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM >
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Income from operations</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>1,585,144</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>6,860,940</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>266,037</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>8,712,121</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR BGCOLOR="#D6F3E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Six Months Ended September 30, 2006:</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM >
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Sales</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>46,427,190</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>32,387,247</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>4,846,388</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>83,660,825</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR BGCOLOR="#D6F3E8">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Gross margin</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>10,084,770</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>10,415,231</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>1,499,731</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>21,999,732</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM >
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Income from operations</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>2,482,655</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>6,248,803</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>149,133</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P ALIGN=RIGHT><FONT SIZE=2>8,880,591</FONT></P>
</TD>
<TD VALIGN=BOTTOM >
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=3>ITEM 2.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3>MANAGEMENT&#146;S
 DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS<A  NAME=A007></A></FONT></P>
</TD>
</TR>
</table>

<P><FONT SIZE=2>FORWARD-LOOKING
INFORMATION</FONT></P>

<P><FONT SIZE=2>The
information contained in this Quarterly Report on Form 10-Q for the period
ended September 30, 2007 contains statements that we believe to be
&#147;forward-looking statements&#148; within the meaning of the Private Securities
Litigation Reform Act of 1995, and within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. Forward-looking statements give our current
expectations or forecasts of future events. Forward-looking statements
generally can be identified by the use of forward-looking terminology such as
&#147;may,&#148; &#147;will,&#148; &#147;expect,&#148; &#147;intend,&#148; &#147;estimate,&#148; &#147;anticipate,&#148;
&#147;believe,&#148;
&#147;project,&#148; or &#147;continue,&#148; or the negative thereof or similar words. From time
to time, we also may provide oral or written forward-looking statements in
other materials we release to the public. Any or all of our forward-looking
statements in this Quarterly Report on Form 10-Q and in any public statements
we make could be materially different from actual results. They can be affected
by assumptions we might make or by known or unknown risks or uncertainties,
including those described in Item 1A &#147;Risk Factors&#148; and other factors disclosed
throughout this Quarterly Report on Form 10-Q and the Company&#146;s other filings
with the Securities and Exchange Commission. Consequently, we cannot guarantee
any forward-looking statements and undertake no obligation to revise any
forward-looking statements in order to reflect events or circumstances that may
arise after the date of this Quarterly Report on Form 10-Q. Investors are
cautioned not to place undue reliance on any forward-looking statements.
Investors should also understand that it is not possible to predict or identify
all factors that might affect actual results and should not consider these
factors to be a complete statement of all potential risks and uncertainties. We
assume no obligation and disclaim any duty to update the forward-looking
statements in this Quarterly Report on Form 10-Q or any other public statement.
</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>9</FONT></P>



<HR SIZE=3 COLOR=GRAY NOSHADE>
<!-- MARKER PAGE="sheet: 2; page: 2" -->
<p><font size=2><A HREF="#toc">Table of Contents</A></FONT></P>



<P><FONT SIZE=2>RESULTS OF
OPERATIONS </FONT></P>

<P><FONT SIZE=2>The following
table sets forth the percentage relationship of certain items to sales for the
period indicated (in thousands, except percentages): </FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="57%" VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="7%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM nowrap>
<P ALIGN=CENTER><FONT SIZE=1><B>THREE MONTHS ENDED<BR>
 SEPTEMBER 30, 2007</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>SIX MONTHS ENDED<BR>
 SEPTEMBER 30, 2007</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Sales</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>48,144</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>100.0</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=2>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>96,767</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>100.0</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=2>%</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Cost of sales</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>36,268</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>75.3</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>73,061</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>75.5</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Gross margin</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>11,875</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>24.7</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>23,706</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>24.5</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Selling, general and administrative
 expenses</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>7,499</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>15.6</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>14,993</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>15.5</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Income from operations</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>4,377</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>9.1</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>8,712</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>9.0</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Investment income</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>312</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>0.6</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>615</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>0.6</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Income before income taxes</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>4,689</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>9.7</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>9,327</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>9.6</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Provision for income taxes</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>1,768</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>3.7</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>3,454</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>3.6</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Net income</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>2,921</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>6.1</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=2>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>5,872</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>6.1</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=2>%</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:DOUBLE black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:DOUBLE black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:DOUBLE black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:DOUBLE black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:DOUBLE black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:DOUBLE black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:DOUBLE black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:DOUBLE black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="57%" VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="7%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM NOWRAP>
<P ALIGN=CENTER><FONT SIZE=1><B>THREE MONTHS ENDED<BR>
 SEPTEMBER 30, 2006</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>SIX MONTHS ENDED<BR>
 SEPTEMBER 30, 2006</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>


<TR>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Sales</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>42,200</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>100.0</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=2>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>83,661</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>100.0</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=2>%</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Cost of sales</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>31,024</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>73.5</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>61,661</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>73.7</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Gross margin</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>11,177</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>26.5</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>22,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>26.3</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Selling, general and administrative
 expenses</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>6,482</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>15.4</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>13,119</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>15.7</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Income from operations</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>4,694</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>11.1</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>8,881</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>10.6</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Investment income</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>348</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>0.8</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>649</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>0.8</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Income before income taxes</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>5,042</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>11.9</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>9,530</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>11.4</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Provision for income taxes</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>1,896</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>4.5</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>3,584</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>4.3</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Net income</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>3,146</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>7.5</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=2>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>5,946</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>7.1</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=2>%</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:DOUBLE black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:DOUBLE black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:DOUBLE black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:DOUBLE black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:DOUBLE black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:DOUBLE black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM style="border-bottom:DOUBLE black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM style="border-bottom:DOUBLE black 3px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
</table>

<P><FONT SIZE=2>Sales
increased $5,943,694, or 14.1%, in the three months ended September 30, 2007,
and increased $13,105,756, or 15.7%, in the six months ended September 30, 2007
as compared to the same periods a year ago. Sales of bulk chemicals, including
caustic soda, were approximately 35% and 33% of sales for the three and six
months ended September 30, 2007, respectively, compared to approximately 36%
and 35% in the comparable periods a year ago. Industrial segment sales
increased by $5,407,770 in the three months ended September 30, 2007 and
increased by $11,293,053 in the six-month period ended September 30, 2007 as
compared to the comparable periods in fiscal 2007. The Industrial segment&#146;s
sales increase was related to the Trumark acquisition, which was completed on
May 31, 2007, increased sales within existing product lines primarily related
to higher volume, lower margin products and price increases commensurate with
rising material costs. Caustic soda volumes sold increased slightly as compared
to the prior year periods. Water Treatment segment sales increased by $728,205
in the three months ended September 30, 2007 and increased $1,982,537 in the
six-month period ended September 30, 2007, as compared to the same periods in
fiscal 2007. These increases resulted from volume increases related to
favorable weather conditions during the first quarter of fiscal 2008 and
successful expansion of existing product lines to new and existing customers.
Pharmaceutical sales decreased by 7.8% to $2,261,503 for the three months ended
September 30, 2007 and decreased by 3.5% to $4,676,554 for the six months ended
September 30, 2007 as compared to the same periods in fiscal 2007. The
Pharmaceutical segment was still under restrictions for the ability to sell
certain products by the Minneapolis District Office of the Food and Drug
Administration (the &#147;FDA&#148;) as of September 30, 2007. The FDA matter is
described in more detail below. </FONT></P>

<P STYLE='MARGIN-RIGHT:0IN; MARGIN-LEFT:0IN'><FONT SIZE=2>In September 2006, the Company
received a warning letter from the FDA. The Company responded to this letter
and subsequently received a letter from the FDA in November 2006 requesting
that the Company cease shipments of certain products until it resolved certain
issues with the FDA with respect to the validation of packaging configurations
and expiration dating for those products. The Company has been working to
resolve this matter as promptly as possible and subsequent to September 30,
2007, received clearance from the FDA to sell the majority of the products
initially affected. The Company currently has approximately $8,000 of
Pharmaceutical products in inventory that it is not permitted to sell as a
result of this matter. Although sales within the Pharmaceutical segment were
negatively impacted in the second half of fiscal 2007 and the first half of
fiscal 2008, the Company has not had a material impact to its results of
operations or cash flows. </FONT></P>


<P ALIGN=CENTER><FONT SIZE=2>10</FONT></P>



<HR SIZE=3 COLOR=GRAY NOSHADE>
<!-- MARKER PAGE="sheet: 2; page: 2" -->
<p><font size=2><A HREF="#toc">Table of Contents</A></FONT></P>



<P><FONT SIZE=2>Gross margin,
as a percentage of sales, for the three and six months ended September 30, 2007
was 24.7% and 24.5%, respectively, compared to 26.5% and 26.3%, respectively,
for the comparable periods of fiscal 2007. For the Industrial segment, gross
margin, as a percentage of sales, was 17.6% and 21.6% for the three months
ended September 30, 2007 and September 30, 2006, respectively, and 18.2% for
the six months ended September 30, 2007 compared to 21.7% for the comparable
period in fiscal 2007. The decreases are primarily due to a majority of the
sales increases relating to higher volume, lower margin products. Additionally,
due to the LIFO method of valuing inventory, the prior year margin was
positively impacted by changes in the cost of caustic soda and changes in
inventory levels. The Company attempts to maintain relatively constant dollar
margins as product costs increase or decrease. By attempting to maintain
relatively stable dollar margins, the gross margin percentage will decrease
when the product costs are increasing and will increase when product costs are
decreasing. Many of the Company&#146;s products are commodity based and therefore
are subject to fluctuations, which is expected to continue in future periods.
Gross margin, as a percentage of sales, for the Water Treatment segment was
34.9% for the three months ended September 30, 2007 compared to 32.4% in the
comparable period of fiscal 2007 and 33.9% for the six-month period ended
September 30, 2007 compared to 32.2% for the comparable period of fiscal 2007.
The improvement during the six months ended September 30, 2007 was primarily
attributable to an increase in sales volumes and to a lesser extent, changes in
product mix. Gross margin, as a percentage of sales, for the Pharmaceutical
segment was 34.4% for the three months ended September 30, 2007 compared to 31.7%
in the comparable period of fiscal 2007 and was 33.3% for the six months ended
September 30, 2007 compared to 30.9% for the same period a year ago. The
increases are primarily related to a decrease in operating expenses due to a
decrease in personnel. </FONT></P>

<P><FONT SIZE=2>Selling,
general and administrative expenses, as a percentage of sales, for the three
and six months ended September 30, 2007 were 15.6% ($7,498,645) and 15.5%
($14,993,929), respectively, compared to 15.4% ($6,482,276) and 15.7%
($13,119,141) for the comparable periods a year ago. A significant portion of
the $1,874,788 increase for the six months ended September 30, 2007 was due to
system enhancements and costs associated with the Company&#146;s implementation of
an Enterprise Resource Planning (ERP) system, including consultants and
contractors, additional employees and depreciation expense. Consulting and
contractor fees were approximately $463,000 and $1,000,000 during the three and
six months ended September 30, 2007, respectively, which are expected to continue
during fiscal 2008 and gradually decrease in fiscal 2009. Additionally, the
acquisition of Trumark added additional fixed costs, and approximately $300,000
of non-recurring expenses were incurred during the six months ended September
30, 2007. </FONT></P>

<P><FONT SIZE=2>INVESTMENT
INCOME </FONT></P>

<P><FONT SIZE=2>Investment
income of $614,568 for the six months ended September 30, 2007 was comparable
to $649,004 earned during the same period a year ago. </FONT></P>

<P><FONT SIZE=2>PROVISION FOR
INCOME TAXES </FONT></P>

<P><FONT SIZE=2>The effective
income tax rate was 37.7% and 37.0% for the three and six months ended
September 30, 2007, respectively, compared to 37.6% for the three and six
months ended September 30, 2006. </FONT></P>

<P><FONT SIZE=2>LIQUIDITY AND
CAPITAL RESOURCES </FONT></P>

<P><FONT SIZE=2>For the
six-month period ended September 30, 2007, cash provided by operations was
$7,423,285 compared to $2,208,157 for the same period one year ago. The
increase in cash provided by operating activities was due primarily to
fluctuations in working capital balances, including the timing of inventory
purchases and income tax payments. Historically, the Company&#146;s cash
requirements increase during the period from April through September as caustic
soda inventory levels increase as the majority of barges are received during
this period. Cash used in investing activities increased by $1,964,949 for the
six months ended September 30, 2007 compared to the same period one year ago,
primarily due to the acquisition of Trumark. Capital expenditures during the
six months ended September 30, 2007 consisted primarily of facility improvement
projects. Capital expenditures for the remainder of this fiscal year are
expected to be relatively comparable with the three previous years and are
expected to relate primarily to facilities improvement projects. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>11</FONT></P>



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<P><FONT SIZE=2>Cash, cash
equivalents and investments available-for-sale decreased by $2,620,106 from
April 1, 2007 to $25,334,261 as of September 30,
2007 due primarily to dividends paid of $2,247,686 and the acquisition of
Trumark during the six-month period ended September 30, 2007. Cash equivalents
consist of money market accounts and certificates of deposit with an original
maturity of three months or less. Investments available-for-sale consist of
investment contracts with high-rated, stable insurance companies; marketable
securities consisting of corporate and municipal bonds; U.S. Government agency
securities and a mutual fund carried at fair value. The Company&#146;s investment
objectives in order of importance are the preservation of principal,
maintenance of liquidity and rate of return. The fixed income portfolio
consists primarily of investment grade securities to minimize credit risk, and
they generally mature within 10 years. The Company invests in a mutual fund
with characteristics similar to its fixed income portfolio to enhance its
investment portfolio diversification. The Company monitors the maturities of
its investments to ensure that funding is available for anticipated cash needs.
At September 30, 2007, $1,185,259 of available-for-sale investments were
classified as non-current assets as they were determined to be temporarily
impaired with an aggregate carrying value exceeding market value by
approximately $36,000 and have maturity dates of one year or longer. These
investments were not determined to be other-than-temporarily impaired as the
Company has the intent and ability to hold these investments for a period of
time sufficient to allow a recovery of fair value. Expected future cash flows
from operations, cash equivalents and investments included within current
assets are expected to fund the Company&#146;s short-term working capital needs. </FONT></P>

<P><FONT SIZE=2>At September
30, 2007, the Company had an investment portfolio of fixed income securities of
$4,410,294, a mutual fund of $7,602,976, and $13,691,042 classified as cash and
cash equivalents and variable rate securities. The fixed income securities,
like all fixed income instruments, are subject to interest rate risk and will
decline in value if market interest rates increase. However, while the value of
the investment may fluctuate in any given period, the Company intends to hold
its fixed income investments until maturity. Consequently, the Company would
not expect to recognize an adverse impact on net income or cash flows or the
amount ultimately realized on the investment. The value of the mutual fund,
like all mutual funds, may increase or decrease due to market volatility. The
mutual fund held by the Company as of September 30, 2007 is a short-term bond
fund that invests primarily in investment grade securities. </FONT></P>

<P><FONT SIZE=2>Expected
future cash flows from operations, coupled with the Company&#146;s strong financial
position, puts the Company in a position to fund both short and long-term
working capital and capital investment needs with internally generated funds.
Management does not, therefore, anticipate the need to engage in significant
financing activities in either the short or long-term. If the need to obtain
additional capital does arise, however, management is confident that the
Company&#146;s total debt to capital ratio at September 30, 2007 puts it in a
position to obtain debt financing on favorable terms, although there can be no
assurance of this. </FONT></P>

<P><FONT SIZE=2>Although
management continually reviews opportunities to enhance the value of the
Company through strategic acquisitions, other capital investments and strategic
divestitures, no material commitments for such investments or divestitures
currently exist. </FONT></P>

<P><FONT SIZE=2>CRITICAL
ACCOUNTING POLICIES </FONT></P>

<P><FONT SIZE=2>The
significant accounting policies followed by the Company are set forth in Note 1
to the Company&#146;s financial statements in the Company&#146;s Annual Report on Form
10-K for the fiscal year ended April 1, 2007. The accounting policies used in
preparing the Company&#146;s interim fiscal 2008 financial statements are the same
as those described in the Company&#146;s Annual Report. </FONT></P>

<P><FONT SIZE=2><I>Estimates - </I>In
preparing the financial statements, the Company follows accounting principles
generally accepted in the United States. The preparation of these financial
statements requires the Company to make estimates and judgments that affect the
reported amounts of assets, liabilities, sales and expenses, and related
disclosure of contingent assets and liabilities. The Company re-evaluates its
estimates on an on-going basis. The Company&#146;s estimates are based on historical
experience and on various other assumptions that are believed to be reasonable
under the circumstances. Actual results may differ from these estimates under
different assumptions and conditions. The Company considers the following
policies to involve the most judgment in the preparation of the Company&#146;s
financial statements. </FONT></P>

<P><FONT SIZE=2><I>Revenue Recognition</I>
&#150; The Company recognizes revenue when title passes to our customers, which
occurs primarily when product has been shipped, if there is evidence that the
customer has agreed to purchase the products, performance has occurred, the
price and terms of sale are fixed, and collection of the receivable is
reasonably assured. </FONT></P>

<P><FONT SIZE=2><I>Investments</I> &#150;
Statement of Financial Accounting Standard (SFAS) No. 115, &#147;Accounting for Certain Investments in Debt and Equity
Securities,&#148; Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) 59, &#147;Accounting for Noncurrent
Marketable Equity Securities,&#148; and FASB Staff Position (FSP) FAS No. 115-1 and FAS No. 124-1, &#147;The Meaning of
Other-Than-Temporary Impairment and Its Application to Certain Investments&#148; provide guidance on determining when an
investment is other-than-temporarily impaired. Investments are reviewed quarterly for indicators of other-than-temporary
impairment. This determination requires significant judgment. In making this judgment, we evaluate, among other factors, the
duration and extent to which the fair value of an investment is less than its cost; the general market conditions, including
factors such as industry and sector performance, rating agency actions, and our intent and ability to hold the investment.
Investments with an indicator are further evaluated to determine the likelihood of a significant adverse effect on the fair value
and amount of the impairment as necessary. If market, industry and/or investee conditions deteriorate, we may incur future
impairments. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>12</FONT></P>



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<P><FONT SIZE=2><I>Allowance for Doubtful Accounts</I>
- - Accounts receivable are reduced by an allowance for amounts that may become
uncollectible in the future. Substantially all of the Company&#146;s receivables are
due from customers located in the United States. The estimated allowance for
doubtful accounts is based upon the age of the outstanding receivables and the
payment history and credit worthiness of each customer. Management evaluates
the adequacy of the allowance for doubtful accounts on a quarterly basis. There
can be no assurance that our estimates will match actual amounts ultimately
written off. </FONT></P>

<P><FONT SIZE=2><I>Inventories</I> &#150;
Inventories are valued at the lower of cost or market. On a quarterly basis,
management assesses the inventory quantities on hand to estimated future usage
and sales and, if necessary, writes down the value of inventory deemed obsolete
or excess to market. Though management considers these reserves adequate and
proper, changes in sales volumes due to unexpected economic or competitive conditions
are among the factors that could materially affect the adequacy of this
reserve. </FONT></P>

<P><FONT SIZE=2><I>LIFO Reserve &#150; </I>Inventories
are primarily valued with cost being determined using the last-in, first-out
(LIFO) method. We may incur significant fluctuations in our gross margins due
primarily to changes in the cost of a single, large-volume component of
inventory. The price of this inventory component may vary depending on the
balance between supply and demand. Management reviews the LIFO reserve on a
quarterly basis. </FONT></P>

<P><FONT SIZE=2><I>Impairment of Long-Lived Assets &#150; </I>We
evaluate the carrying value of long-lived assets, including intangible assets
subject to amortization and property, plant, and equipment, when events and
changes in circumstances warrant such a review, such as prolonged industry
downturn or significant reductions in projected future cash flows. The carrying
value of long-lived assets is considered impaired when the projected future
undiscounted cash flows from such assets are less than their carrying value. In
that event, a loss is recognized equal to the amount by which the carrying
value exceeds the fair value of the long-lived assets. Significant judgments
and assumptions are required in the forecast of future operating results used
in the preparation of the estimated future cash flows. We periodically review
the appropriateness of the estimated useful lives of our long-lived assets.
Changes in these estimates could have a material effect on the assessment of
long-lived assets. </FONT></P>

<P><FONT SIZE=2><I>Self Insurance</I> &#150; The
Company purchases insurance for employee medical benefits. Third party
insurance is carried for what is believed to be the major portion of potential
exposures that would exceed the Company&#146;s self-insured retentions. The Company
has established a liability for potential uninsured claims. The Company
considers factors such as known outstanding claims, historical experience, and
other relevant factors in setting the liability. These reserves are monitored
and adjusted when warranted by changing circumstances. Though management considers
these balances adequate, a substantial change in the number and/or severity of
claims could result in materially different amounts for this item. </FONT></P>

<P><FONT SIZE=2><I>Income Taxes</I> &#150; In
the preparation of the Company&#146;s financial statements, management calculates
income taxes. This includes estimating the current tax liability as well as
assessing temporary differences resulting from different treatment of items for
tax and book accounting purposes. These differences result in deferred tax
assets and liabilities, which are recorded on the balance sheet. These assets
and liabilities are analyzed regularly and management assesses the likelihood
that deferred tax assets will be recovered from future taxable income. A
valuation allowance is established to the extent that management believes that
recovery is not likely. Reserves are also established for potential and ongoing
audits of federal and state tax issues. The Company routinely monitors the
potential impact of such situations and believes that it is properly reserved. Valuations
related to amounts owed and tax rates could be impacted by changes to tax
codes, changes in statutory tax rates, the Company&#146;s future taxable income
levels and the results of tax audits. </FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=3><A NAME=A008></A>ITEM 3.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3>QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</FONT></P>
</TD>
</TR>
</table>



<P><FONT SIZE=2>At September
30, 2007, the Company had an investment portfolio of fixed income securities of
$4,410,294, a mutual fund of $7,602,976, and cash and cash equivalents of
$13,691,042. The fixed income securities, like all fixed income instruments, are
subject to interest rate risks and will decline in value if market interest
rates increase. However, while the value of the investment may fluctuate in any
given period, the Company intends to hold its fixed income investments until
maturity. Consequently, the Company would not expect to recognize an adverse
impact on net income or cash flows during the holding period. The value of the
mutual fund, like all mutual funds, may increase or decrease due to market
volatility. The Company adjusts the carrying value of its investments down if
an impairment occurs that is other than temporary. </FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>13</FONT></P>



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<P><FONT SIZE=2>The Company is
subject to the risk inherent in the cyclical nature of commodity chemical
prices. However, the Company does not currently purchase forward contracts or
otherwise engage in hedging activities with respect to the purchase of
commodity chemicals. We generally attempt to pass changes in material prices to
our customers, however, there are no assurances that we will be able to pass on
the increases in the future. </FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=3><A NAME=A009></A>ITEM 4.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3>CONTROLS AND PROCEDURES</FONT></P>
</TD>
</TR>
</table>


<P><FONT SIZE=2><B>Evaluation of Disclosure Controls and
Procedures </B></FONT></P>

<P><FONT SIZE=2>We maintain a
system of disclosure controls and procedures designed to provide reasonable
assurance as to the reliability of our published financial statements and other
disclosures included in this report. Our management evaluated, with the
participation of our Chief Executive Officer and our Chief Financial Officer,
the effectiveness of the design and operation of our disclosure controls and
procedures as of the end of the quarter ended September 30, 2007 pursuant to
Rule 13a-15(b) of the Securities Exchange Act of 1934 (the &#147;Exchange Act&#148;).
Based upon their evaluation, our Chief Executive Officer and our Chief
Financial Officer concluded that our disclosure controls and procedures were
effective as of the end of the quarter ended September 30, 2007 to ensure that
information required to be disclosed by us in the reports we file or submit
under the Exchange Act is recorded, processed, summarized, and reported, within
the time periods specified in the Securities and Exchange Commission&#146;s rules
and forms, and to ensure that information required to be disclosed by us in the
reports we file or submit under the Exchange Act is accumulated and
communicated to our management, including our principal executive and principal
financial officers, as appropriate to allow timely decisions regarding required
disclosures. </FONT></P>

<P><FONT SIZE=2><B>Changes in Internal Control </B></FONT></P>

<P><FONT SIZE=2>During the
quarter, there was no change in the Company&#146;s internal control over financial
reporting that has materially affected, or is reasonably likely to materially
affect, the Company&#146;s internal control over financial reporting. </FONT></P>

<BR><BR><BR>
<P ALIGN=CENTER><FONT SIZE=2>14</FONT></P>



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<P ALIGN=CENTER><A NAME=A010></A><FONT SIZE=3><B>PART II. OTHER
INFORMATION</B></FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=3><A NAME=A011></A>ITEM 1A.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3>RISK FACTORS</FONT></P>
</TD>
</TR>
</table>



<P><FONT SIZE=2>There have been no material changes to the Company&#146;s risk factors from
those disclosed in the Company&#146;s Annual Report on Form 10-K for the fiscal year
ended April 1, 2007.</FONT></P>


<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=3><A NAME=A012></A>ITEM 4.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3>SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</FONT></P>
</TD>
</TR>
</table>



<P><FONT SIZE=2>The annual
meeting of the shareholders of the Company was held on August 7, 2007. Proxies
for the annual meeting were solicited pursuant to Regulation 14A of the
Exchange Act. There was no solicitation in opposition to the Board of Director
nominees listed in the proxy statement and all of the nominees for director
were elected with the following votes:</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="88%">
<TR style="font-size:1px">
<TD WIDTH="43%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="9%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="9%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="9%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="9%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE="1"><B>For</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE="1"><B>Withheld</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE="1"><B>Abstain</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE="1"><B>Broker
<BR>
Non-votes</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=2>John R. Hawkins</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>8,646,696</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>29,268</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=CENTER><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=CENTER><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Howard M. Hawkins</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>8,645,766</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>30,198</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=2>John S. McKeon</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>7,572,070</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>1,103,894</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=CENTER><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=CENTER><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Duane M. Jergenson</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>8,656,346</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>19,618</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=2>G. Robert Gey</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>8,656,696</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>19,268</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=CENTER><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=CENTER><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Daryl I. Skaar</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>8,649,567</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>26,397</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=2>Eapen Chacko</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>8,655,596</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>20,368</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=CENTER><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=CENTER><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>James A. Faulconbridge</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>8,655,246</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>20,718</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</table>
<BR>
<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="10%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=3><A NAME=A013></A>ITEM 6.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=3>EXHIBITS</FONT></P>
</TD>
</TR>
</table>


<P ALIGN=CENTER><FONT SIZE=2>Exhibit Index</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="90%">
<TR style="font-size:1px">
<TD WIDTH="6%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="60%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="26%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP style="border-bottom:1px solid black">
<P ALIGN="CENTER"><FONT SIZE="1"><B>Exhibit</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE="1" style="border-bottom:1px solid black"><B>Description</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE="1" style="border-bottom:1px solid black"><B>Method of Filing</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>3.1</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Amended and
 Second Restated Articles of Incorporation as amended through February 27,
 2001. (1)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Incorporated by Reference</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>3.2</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Second Amended
 and Superseding By-Laws as amended through February 15, 1995. (2)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Incorporated by Reference</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>10.1</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Summary of
 Non-Employee Director Compensation</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Filed Electronically</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>31.1</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Certification
 by Chief Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Filed Electronically</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>31.2</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Certification
 by Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Filed Electronically</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>32.1</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Section 1350
 Certification by Chief Executive Officer.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Filed Electronically</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>32.2</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Section 1350
 Certification by Chief Financial Officer.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Filed Electronically</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</P>
</TD>
<TD WIDTH="92%" VALIGN="TOP">
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="TOP">
<P><FONT SIZE=2>(1)</FONT></P>
</TD>
<TD VALIGN="TOP">
<P><FONT SIZE=2>Incorporated
 by reference to Exhibit 3.1 to the Company&#146;s Annual Report on Form 10-K for
 the year ended September 30, 2001.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="TOP">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="TOP">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="TOP">
<P><FONT SIZE=2>(2)</FONT></P>
</TD>
<TD VALIGN="TOP">
<P><FONT SIZE=2>Incorporated
 by reference to Exhibit 3.2 to the Company&#146;s Annual Report on Form 10-K for
 the year ended October 1, 1995.</FONT></P>
</TD>
</TR>
</table>

<P ALIGN=CENTER><FONT SIZE=2>15</FONT></P>



<HR SIZE=3 COLOR=GRAY NOSHADE>
<!-- MARKER PAGE="sheet: 2; page: 2" -->
<p><font size=2><A HREF="#toc">Table of Contents</A></FONT></P>



<P ALIGN=CENTER><A NAME=A014></A><FONT SIZE=3><B>SIGNATURES</B></FONT></P>

<P><FONT SIZE=2>Pursuant to
the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="42%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="52%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>HAWKINS,
 INC.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>By:</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>/s/ Marvin E. Dee</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Marvin E. Dee</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Vice President, Chief Financial Officer, Secretary and Treasurer</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>(On behalf of the Registrant and as principal financial officer)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Dated: November
 9, 2007</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</table>

<BR><BR><BR><BR><BR><BR><BR><BR>
<P ALIGN=CENTER><FONT SIZE=2>16</FONT></P>



<HR SIZE=3 COLOR=GRAY NOSHADE>
<!-- MARKER PAGE="sheet: 2; page: 2" -->
<p><font size=2><A HREF="#toc">Table of Contents</A></FONT></P>



<P ALIGN=CENTER><A NAME=A015></A><FONT SIZE=3><B>Exhibit Index</B></FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="67%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="22%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP style="border-bottom:1px solid black">
<P ALIGN="CENTER"><FONT SIZE="1"><B>Exhibit</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE="1" style="border-bottom:1px solid black"><B>Description</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE="1" style="border-bottom:1px solid black"><B>Method of Filing</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>3.1</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Amended and
 Second Restated Articles of Incorporation as amended through February 27,
 2001. (1)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Incorporated by Reference</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>3.2</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Second
 Amended and Superseding By-Laws as amended through February 15, 1995. (2)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Incorporated by Reference</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>10.1</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Summary of
 Non-Employee Director Compensation</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Filed Electronically</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>31.1</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Certification
 by Chief Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Filed Electronically</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>31.2</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Certification
 by Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Filed Electronically</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>32.1</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Section 1350
 Certification by Chief Executive Officer.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Filed Electronically</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>32.2</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Section 1350
 Certification by Chief Financial Officer.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Filed Electronically</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN="CENTER" CELLSPACING="0" CELLPADDING="0" WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="3%" VALIGN="TOP">
<P>&nbsp;</P>
</TD>
<TD WIDTH="97%" VALIGN="TOP">
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P><FONT SIZE=2>(1)</FONT></P>
</TD>
<TD VALIGN="TOP">
<P><FONT SIZE=2>Incorporated
 by reference to Exhibit 3.1 to the Company&#146;s Annual Report on Form 10-K for
 the year ended September 30, 2001.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN="TOP">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN="TOP">
<P><FONT SIZE=2>(2)</FONT></P>
</TD>
<TD VALIGN="TOP">
<P><FONT SIZE=2>Incorporated
 by reference to Exhibit 3.2 to the Company&#146;s Annual Report on Form 10-K for
 the year ended October 1, 1995.</FONT></P>
</TD>
</TR>
</table>

<BR><BR><BR><BR><BR><BR>
<P ALIGN=CENTER><FONT SIZE=2>17</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=3>

</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>hawkins074577_ex10-1.htm
<DESCRIPTION>SUMMARY OF NON-EMPLOYEE DIRECTOR COMPENSATION
<TEXT>
<HTML>
<HEAD>
<TITLE>Hawkins, Inc. Exhibit 10.1 to Form 10-Q</TITLE>
</HEAD>
<BODY>
<P ALIGN=RIGHT><FONT SIZE=3><B>EXHIBIT 10.1</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=3><U>Summary of Non-Employee Director Compensation</U></FONT></P>

<P><FONT SIZE=2>On September
18, 2007, the Compensation Committee of the Hawkins, Inc. (the &#147;Company&#148;) Board
of Directors approved changes in the non-employee directors&#146; compensation. The
changes provide that the cash portion of the annual retainer increases from
$15,000 to $20,000 and each non-employee director will receive an annual
restricted grant of 1,000 shares of the Company&#146;s Common Stock (&#147;Common Stock&#148;)
on the date of the Company&#146;s annual meeting of shareholders. Previously $6,000
of the $15,000 cash retainer was used to purchase Common Stock through the
Company&#146;s Employee Stock Purchase Plan and the Company credited an additional
$4,500 to each non-employee director&#146;s account to fund the purchase of
additional shares of Common Stock. The new annual Common Stock grants will vest
on the first anniversary of their issuance, subject to acceleration in the
event of a director&#146;s death or disability. The changes were made effective for
the current fiscal year.</FONT></P>

<P><FONT SIZE=2>The additional
annual retainer paid to the Board chair remains at $10,000 and each
non-employee director will continue to receive a meeting fee of $1,000 for each
Board and committee meeting attended. The additional annual retainer paid to
the chairs of the Audit Committee and the Compensation Committee increases from
$2,500 to $5,000 and the chair of the Governance and Nominating Committee Chair
will now receive an additional annual retainer of $2,500.</FONT></P>

<P><FONT SIZE=2>These changes
are intended to keep the directors&#146; compensation competitive.</FONT></P>

<P><FONT SIZE=2>The following
table shows compensation payable to non-employee directors before and after
this increase:</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="67%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="8%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="10%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Before
 Increase</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>After
 Increase</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Portion of the Annual Retainer Payable in
 Cash</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>$9,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>$20,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Portion of the Annual Retainer Payable as
 Annual Common Stock Grant or Otherwise Payable Only in Common&nbsp;Stock</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>$10,500</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>1,000 shares</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Meeting Fee</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>$1,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>$1,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Additional Annual Retainer for Board Chair</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>$10,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>$10,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Additional Annual Retainer for Audit
 Committee &amp; Compensation Committee Chairs</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>$2,500</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=2>$5,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#D6F3E8">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT  SIZE=2>Additional Annual Retainer for Governance
 &amp; Nominating Committee Chair</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>$0</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>$2,500</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</table>


<BR><BR><BR><BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=3>


</BODY>

</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>3
<FILENAME>hawkins074577_ex31-1.htm
<DESCRIPTION>CERTIFICATION OF CEO PURSUANT TO SECTION 302
<TEXT>
<HTML>
<HEAD>
<TITLE>Hawkins, Inc. Exhibit 31.1 to Form 10-Q</TITLE>
</HEAD>
<BODY>
<P ALIGN=RIGHT><FONT SIZE=3><B>EXHIBIT 31.1</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=3><B>CERTIFICATION PURSUANT TO <BR>
SECTION 302 OF <BR>
THE SARBANES-OXLEY ACT OF 2002</B></FONT></P>

<P><FONT SIZE=2><B>CERTIFICATIONS</B></FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=2>I, John R.
 Hawkins, Chief Executive Officer of Hawkins, Inc., certify that:</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>1.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>I have
 reviewed this quarterly report on Form 10-Q of Hawkins, Inc.;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Based on my
 knowledge, this 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 report; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>3.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Based on my
 knowledge, the financial statements, and other financial information included
 in this 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 report; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>4.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>The
 registrant&#146;s other certifying officer and I are responsible for establishing
 and maintaining disclosure controls and procedures (as defined in Exchange
 Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial
 reporting (as defined in Exchange Rules 13a-15(f) and 15d-15(f)) for the
 registrant and we have: </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>designed
 such disclosure controls and procedures, or caused such disclosure controls
 and procedures to be designed under our supervision, 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 report is being prepared; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>designed
 such internal control over financial reporting, or caused such internal
 control over financial reporting to be designed under our supervision, to
 provide reasonable assurance regarding the reliability of financial reporting
 and the preparation of the financial statements for external purposes in
 accordance with generally accepted accounting principles; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>c)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>evaluated
 the effectiveness of the registrant&#146;s disclosure controls and procedures and
 presented in this report our conclusions about the effectiveness of the
 disclosure controls and procedures, as of the end of the period covered by
 this report based on such evaluation; and </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>d)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>disclosed in
 this report any change in the registrant&#146;s internal control over financial
 reporting that occurred during the registrant&#146;s most recent fiscal quarter
 (the registrant&#146;s fourth fiscal quarter in the case of an annual report) that
 has materially affected, or is reasonably likely to materially affect, the
 registrant&#146;s internal control over financial reporting.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>5.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>The
 registrant&#146;s other certifying officer and I have disclosed, based on our most
 recent evaluation of internal control over financial reporting, to the
 registrant&#146;s auditors and the audit committee of the registrant&#146;s board of
 directors (or persons performing the equivalent functions): </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>a) all
 significant deficiencies and material weaknesses in the design or operation
 of internal control over financial reporting which are reasonably likely to
 adversely affect the registrant&#146;s ability to record, process, summarize and
 report financial information; and </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>b) any
 fraud, whether or not material, that involves management or other employees
 who have a significant role in the registrant&#146;s internal control over
 financial reporting.</FONT></P>
</TD>
</TR>
</table>

<P><FONT SIZE=2>Date: November
9, 2007</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="58%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="16%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="25%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>/s/ John R.
 Hawkins </FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>John R.
 Hawkins </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Chief
 Executive Officer</FONT></P>
</TD>
</TR>
</table>



<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=3>


</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>4
<FILENAME>hawkins074577_ex31-2.htm
<DESCRIPTION>CERTIFICATION OF CFO PURSUANT TO SECTION 302
<TEXT>

<HTML>
<HEAD>
<TITLE>Hawkins, Inc. Exhibit 31.2 to Form 10-Q</TITLE>
</HEAD>
<BODY>
<P ALIGN=RIGHT><FONT SIZE=3><B>EXHIBIT 31.2</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=3><B>CERTIFICATION PURSUANT TO <BR>
SECTION 302 OF <BR>
THE SARBANES-OXLEY ACT OF 2002</B></FONT></P>

<P><FONT SIZE=2><B>CERTIFICATIONS</B></FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=2>I, Marvin E.
 Dee, Chief Financial Officer of Hawkins, Inc., certify that:</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>1.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>I have
 reviewed this quarterly report on Form 10-Q of Hawkins, Inc.;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Based on my
 knowledge, this 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 report; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>3.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Based on my
 knowledge, the financial statements, and other financial information included
 in this 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 report; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>4.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>The registrant&#146;s
 other certifying officer and I are responsible for establishing and
 maintaining disclosure controls and procedures (as defined in Exchange Act
 Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting
 (as defined in Exchange Rules 13a-15(f) and 15d-15(f)) for the registrant and
 we have: </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>designed
 such disclosure controls and procedures, or caused such disclosure controls
 and procedures to be designed under our supervision, 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 report is being prepared; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>designed
 such internal control over financial reporting, or caused such internal control
 over financial reporting to be designed under our supervision, to provide
 reasonable assurance regarding the reliability of financial reporting and the
 preparation of the financial statements for external purposes in accordance
 with generally accepted accounting principles; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>c)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>evaluated
 the effectiveness of the registrant&#146;s disclosure controls and procedures and
 presented in this report our conclusions about the effectiveness of the
 disclosure controls and procedures, as of the end of the period covered by
 this report based on such evaluation; and </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>d)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>disclosed in
 this report any change in the registrant&#146;s internal control over financial
 reporting that occurred during the registrant&#146;s most recent fiscal quarter
 (the registrant&#146;s fourth fiscal quarter in the case of an annual report) that
 has materially affected, or is reasonably likely to materially affect, the
 registrant&#146;s internal control over financial reporting.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>5.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>The
 registrant&#146;s other certifying officer and I have disclosed, based on our most
 recent evaluation of internal control over financial reporting, to the
 registrant&#146;s auditors and the audit committee of the registrant&#146;s board of
 directors (or persons performing the equivalent functions): </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>a) all
 significant deficiencies and material weaknesses in the design or operation
 of internal control over financial reporting which are reasonably likely to
 adversely affect the registrant&#146;s ability to record, process, summarize and
 report financial information; and </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>b) any
 fraud, whether or not material, that involves management or other employees
 who have a significant role in the registrant&#146;s internal control over
 financial reporting.</FONT></P>
</TD>
</TR>
</table>

<P><FONT SIZE=2>Date: November 9, 2007</FONT></P>

<TABLE ALIGN=CENTER BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="57%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="14%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="25%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>/s/ Marvin E. Dee</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR style="font-size:1 px">
<TD VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD VALIGN=TOP style="border-bottom:solid black 1px">&nbsp;

</TD>
<TD VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Marvin E.
 Dee </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Chief Financial
 Officer</FONT></P>
</TD>
</TR>
</table>



<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=3>
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>5
<FILENAME>hawkins074577_ex32-1.htm
<DESCRIPTION>CERTIFICATION OF CEO PURSUANT TO SECTION 906
<TEXT>
<HTML>

<HEAD><TITLE>Hawkins, Inc. Exhibit 32.1 to Form 10-Q</TITLE></HEAD>
<BODY>

<P ALIGN=RIGHT><FONT SIZE=3><B>EXHIBIT 32.1 </B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=3><B>CERTIFICATION PURSUANT TO<BR>
18 U.S.C. SECTION 1350,<BR>
AS ADOPTED PURSUANT TO<BR>
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</B></FONT></P>

<P><FONT SIZE=2>In connection
with the Quarterly Report of Hawkins, Inc. (the &#147;Company&#148;) on Form 10-Q for the
period ended September 30, 2007 as filed with the Securities and Exchange
Commission on the date hereof (the &#147;Report&#148;), I, John R. Hawkins, Chief
Executive Officer of the Company, certify, pursuant to 18 U.S.C. &#167; 1350, as
adopted pursuant to &#167; 906 of the Sarbanes-Oxley Act of 2002, that: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)
The Report fully complies with the requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)
The information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the Company. </FONT></P>

<TABLE BORDER=0 CELLSPACING=0 CELLPADDING=0 width="100%">
<TR style="font-size:1px">
<TD WIDTH="16%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="83%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP style="border-bottom:1px solid black">
<P><FONT SIZE=2>/s/ John R.
 Hawkins</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>John R.
Hawkins<BR>
Chief Executive Officer<BR>
November 9, 2007 </FONT></P>

<BR><BR><BR><BR><BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=3>



</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.2
<SEQUENCE>6
<FILENAME>hawkins074577_ex32-2.htm
<DESCRIPTION>CERTIFICATION OF CFO PURSUANT TO SECTION 906
<TEXT>
<HTML>

<HEAD><TITLE>Hawkins, Inc. Exhibit 32.2 to Form 10-Q</TITLE></HEAD>
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<P ALIGN=RIGHT><FONT SIZE=3><B>EXHIBIT 32.2</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=3><B>CERTIFICATION PURSUANT TO<BR>
18 U.S.C. SECTION 1350,<BR>
AS ADOPTED PURSUANT TO<BR>
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</B></FONT></P>

<P><FONT SIZE=2>In connection
with the Quarterly Report of Hawkins, Inc. (the &#147;Company&#148;) on Form 10-Q for the
period ended September 30, 2007 as filed with the Securities and Exchange
Commission on the date hereof (the &#147;Report&#148;), I, Marvin E. Dee, Chief Financial
Officer of the Company, certify, pursuant to 18 U.S.C. &#167; 1350, as adopted
pursuant to &#167; 906 of the Sarbanes-Oxley Act of 2002, that: </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)
The Report fully complies with the requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934; and </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)
The information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the Company. </FONT></P>

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<P><FONT SIZE=2>/s/ Marvin
 E. Dee</FONT></P>
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<P><FONT SIZE=1>&nbsp;</FONT></P>
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<P><FONT SIZE=2>Marvin E. Dee<BR>
Chief Financial Officer<BR>
November 9, 2007 </FONT></P>


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