<SUBMISSION>
<ACCESSION-NUMBER>0001169232-04-005557
<TYPE>10-Q
<PUBLIC-DOCUMENT-COUNT>5
<PERIOD>20040930
<FILING-DATE>20041109
<DATE-OF-FILING-DATE-CHANGE>20041109
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>DREW INDUSTRIES INC
<CIK>0000763744
<ASSIGNED-SIC>3442
<IRS-NUMBER>133250533
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>10-Q
<ACT>34
<FILE-NUMBER>001-13646
<FILM-NUMBER>041127511
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>200 MAMARONECK AVE
<CITY>WHITE PLAINS
<STATE>NY
<ZIP>10601
<PHONE>9144289098
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>200 MAMARONECK AVE
<CITY>WHITE PLAINS
<STATE>NY
<ZIP>10601
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>d61158_10-q.htm
<DESCRIPTION>FORM 10-Q
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        X:\JOBS\04-61158\d04-61158.eep                                   -->
     <!-- Control Number: 04-61158                                                         -->
     <!-- Rev Number:     1.0                                                              -->
     <!-- Client Name:    Drew Industries Incorporated                                     -->
     <!-- Project Name:   Form Type: 10-Q                                                  -->
     <!-- Firm Name:      Curran & Connors (NY)                                            -->
     <TITLE>Form 10-Q</TITLE>
</HEAD>
<BODY>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECURITIES AND
EXCHANGE COMMISSION<BR> WASHINGTON, DC 20549  </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FORM 10-Q </FONT></H1>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Mark One) </FONT></P>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  |X|  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES<BR> EXCHANGE ACT OF 1934</FONT></TD>
</TR>
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<BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">For the quarterly
period ended:&nbsp;&nbsp; <B>SEPTEMBER 30, 2004</B> </FONT> </P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>OR </FONT></P>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>  |_|  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES  <BR>        EXCHANGE  ACT OF 1934</FONT></TD>
</TR>
</TABLE>
<BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For the transition
period from _________________ to _________________  </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Commission File Number:&nbsp;&nbsp;&nbsp;
<B>0-13646</B> </FONT> </P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>DREW INDUSTRIES
INCORPORATED </B><BR><I>(Exact name of registrant as specified in its charter)</I> </FONT> </P>





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<TD ALIGN=CENTER WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Delaware<BR>
</B>(State or other jurisdiction of<BR>
incorporation or organization) </FONT></TD>
<TD ALIGN=CENTER WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>13-3250533<BR>
</B>(I.R.S. Employer<BR>
Identification No.) </FONT></TD>
</TR>
</TABLE>
<BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>200 Mamaroneck Avenue,
White Plains, N.Y. 10601 </B><BR>(Address of principal executive offices)<BR>(Zip Code) </FONT> </P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>(914) 428-9098
</B><BR>(Registrant&#146;s telephone number, including area code) </FONT> </P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Former name, former
address and former fiscal year, if changed since last report)&nbsp;&nbsp;&nbsp; N/A  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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. &nbsp;&nbsp;Yes |X| &nbsp;&nbsp; No |_|  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Indicate by checkmark whether the
registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).&nbsp;&nbsp; Yes |X|&nbsp;&nbsp;&nbsp; No |_|  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Indicate the number of shares
outstanding of each of the issuer&#146;s classes of common stock, as of the latest
practicable date. 10,278,788 shares of common stock as of November 1, 2004.  </FONT></P>

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<P STYLE="page-break-after:always">
</P>
<PAGE>
<BR>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>DREW INDUSTRIES
INCORPORATED AND SUBSIDIARIES </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>INDEX TO FINANCIAL
STATEMENTS FILED WITH <BR>QUARTERLY REPORT OF REGISTRANT ON FORM 10-Q <BR>FOR THE QUARTER ENDED
SEPTEMBER 30, 2004 </FONT></H1>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(UNAUDITED)  </FONT></P>

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<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th><font face="Times New Roman, Times, Serif" size=1></font></th>
    <th><font face="Times New Roman, Times, Serif" size=1>Page</font></th>
  </tr>
  <tr valign=Bottom>
    <td width=92% align=LEFT><font face="Times New Roman, Times, Serif" size=2>PART
      I &#150; FINANCIAL INFORMATION</font></td>
    <td width=6% align=RIGHT><font face="Times New Roman, Times, Serif" size=2></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item
      1 &#150; FINANCIAL STATEMENTS</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><a href="#A001"><font face="Times New Roman, Times, Serif" size=2>CONDENSED
      CONSOLIDATED STATEMENTS OF INCOME</font></a></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2><a href="#A001">3</a></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#A002">CONDENSED
      CONSOLIDATED BALANCE SHEETS</a></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2><a href="#A002">4</a></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT height="20">&nbsp;</td>
    <td align=RIGHT height="20">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#A003">CONDENSED
      CONSOLIDATED STATEMENTS OF CASH FLOWS</a></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2><a href="#A003">5</a></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#A004">CONDENSED
      CONSOLIDATED STATEMENT OF STOCKHOLDERS&#146; EQUITY</a></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2><a href="#A004">6</a></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#A005">NOTES
      TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</a></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2><a href="#A005">7&#150;12</a></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#A006">&nbsp;Item
      2 &#150; MANAGEMENT&#146;S DISCUSSION AND ANALYSIS</a><br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#A006">OF
      FINANCIAL CONDITION AND RESULTS OF OPERATIONS</a></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2><a href="#A006">13&#150;23</a></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#A007">Item
      3 &#150; QUANTITATIVE AND QUALITATIVE DISCLOSURE</a><br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#A007">ABOUT
      MARKET RISK</a></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2><a href="#A007">24</a></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT height="20">&nbsp;</td>
    <td align=RIGHT height="20">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#A008">Item
      4 &#150; CONTROLS AND PROCEDURES</a></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2><a href="#A008">25</a></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>PART II &#150;
      OTHER INFORMATION</font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT height="17"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#A009">Item
      1 &#150; LEGAL PROCEEDINGS</a></font></td>
    <td align=RIGHT height="17"><font face="Times New Roman, Times, Serif" size=2><a href="#A009">26</a></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a href="#A010">&nbsp;Item
      6 &#150; EXHIBITS</a></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2><a href="#A010">26</a></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2><a href="#A011">SIGNATURES</a></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2><a href="#A011">27</a></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2><a href="#A009">EXHIBIT
      31.1 &#150; SECTION 302 CEO CERTIFICATION</a></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2><a href="#A012">28</a></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2><a href="#A013">EXHIBIT
      31.2 &#150; SECTION 302 CFO CERTIFICATION</a></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2><a href="#A013">29</a></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2><a href="#A014">EXHIBIT
      32.1 &#150; SECTION 906 CEO CERTIFICATION</a></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2><a href="#A014">30</a></font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2><a href="#A015">EXHIBIT
      32.2 &#150; SECTION 906 CFO CERTIFICATION</a></font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2><a href="#A015">31</a></font></td>
  </tr>
</table>
<BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2 </FONT></P>
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</P>
<PAGE>
<BR>

<A NAME="A001"></A>
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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>DREW INDUSTRIES
INCORPORATED<BR>CONDENSED CONSOLIDATED
  STATEMENTS OF INCOME</B><BR>
  <I>(Unaudited)</I> </FONT> </P>
<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <th colspan=5><font face="Times New Roman, Times, Serif" size=1> </font><font face="Times New Roman, Times, Serif" size=1>Nine
      Months Ended<br>
      September 30, </font>
      <hr width=100% size=1 NOSHADE>
    </th>
    <th>&nbsp;</th>
    <th colspan=5><font face="Times New Roman, Times, Serif" size=1>Three Months
      Ended<br>
      September 30, </font>
      <hr width=100% size=1 NOSHADE>
    </th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2004 </font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2003 </font></th>
    <th>&nbsp;</th>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1>2004 </font></th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2003 </font></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td colspan=14 align="left">
      <hr width=100% size=1 NOSHADE>
    </td>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td colspan=3 align="left"><font face="Times New Roman, Times, Serif" size=1><i>(In
      thousands, except per share amounts)</i> </font></td>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1> </font></th>
  </tr>
  <tr valign=Bottom>
    <td width=50% align=LEFT>&nbsp;</td>
    <td width=1% align=LEFT>&nbsp;</td>
    <td width=2% align=LEFT>&nbsp;</td>
    <td colspan="3" align=RIGHT>&nbsp;</td>
    <td colspan="2" align=RIGHT>&nbsp;</td>
    <td width=3% align=LEFT>&nbsp;</td>
    <td colspan="3" align=RIGHT>&nbsp;</td>
    <td colspan="2" align=RIGHT>&nbsp;</td>
    <td width=2% align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td width=50% align=LEFT><font face="Times New Roman, Times, Serif" size=2>Net
      sales </font></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      398,540 </font></td>
    <td width=3% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      266,344 </font></td>
    <td width=3% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      148,830 </font></td>
    <td width=3% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      96,107 </font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Cost of sales </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>308,199 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>200,041 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>115,928 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>70,637 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="3" align=RIGHT><hr NOSHADE color=#808080 size=1></td>
    <td colspan="2" align=RIGHT><hr NOSHADE color=#808080 size=1></td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="3" align=RIGHT><hr NOSHADE color=#808080 size=1></td>
    <td colspan="2" align=RIGHT><hr NOSHADE color=#808080 size=1></td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Gross
      profit</b> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>90,341 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>66,303 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>32,902 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>25,470 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Selling,
      general and administrative expenses </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>53,143 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>39,279 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>19,874 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>13,980 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Other income </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>428 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="3" align=RIGHT><hr NOSHADE color=#808080 size=1></td>
    <td colspan="2" align=RIGHT><hr NOSHADE color=#808080 size=1></td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="3" align=RIGHT><hr NOSHADE color=#808080 size=1></td>
    <td colspan="2" align=RIGHT><hr NOSHADE color=#808080 size=1></td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Operating
      profit</b> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>37,626 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>27,024 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>13,028 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>11,490 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Interest
      expense, net </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,267 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,340 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>854 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>722 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="3" align=RIGHT><hr NOSHADE color=#808080 size=1></td>
    <td colspan="2" align=RIGHT><hr NOSHADE color=#808080 size=1></td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="3" align=RIGHT><hr NOSHADE color=#808080 size=1></td>
    <td colspan="2" align=RIGHT><hr NOSHADE color=#808080 size=1></td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income
      from continuing operations<br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;before income taxes </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>35,359 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>24,684 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>12,174 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>10,768 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Provision
      for income taxes </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>13,702 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>9,629 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>4,660 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>4,186 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="3" align=RIGHT><hr NOSHADE color=#808080 size=1></td>
    <td colspan="2" align=RIGHT><hr NOSHADE color=#808080 size=1></td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="3" align=RIGHT><hr NOSHADE color=#808080 size=1></td>
    <td colspan="2" align=RIGHT><hr NOSHADE color=#808080 size=1></td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income
      from continuing operations</b> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>21,657 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>15,055 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>7,514 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>6,582 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Discontinued
      operations </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>138 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="3" align=RIGHT><hr NOSHADE color=#808080 size=1></td>
    <td colspan="2" align=RIGHT><hr NOSHADE color=#808080 size=1></td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="3" align=RIGHT><hr NOSHADE color=#808080 size=1></td>
    <td colspan="2" align=RIGHT><hr NOSHADE color=#808080 size=1></td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;<b>&nbsp;&nbsp;Net
      income</b> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 21,657 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 15,193 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 7,514 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 6,582 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="3" align=RIGHT><hr NOSHADE color=#808080 size=2></td>
    <td colspan="2" align=RIGHT><hr NOSHADE color=#808080 size=2></td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="3" align=RIGHT><hr NOSHADE color=#808080 size=2></td>
    <td colspan="2" align=RIGHT><hr NOSHADE color=#808080 size=2></td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2><b>Net income
      per common share:</b> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Income from
      continuing operations: </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 2.11 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 1.50 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> .73 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> .65 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td align=RIGHT>&nbsp;</td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan="2" align=RIGHT valign="Bottom"><hr noshade color=#808080 size=2></td>
    <td align=LEFT valign="Bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 2.04 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 1.47 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> .71 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> .64 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td align=RIGHT>&nbsp;</td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan="2" align=RIGHT valign="Bottom"><hr noshade color=#808080 size=2></td>
    <td align=LEFT valign="Bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Discontinued
      operations: </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> .01 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=2>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td></td>
    <td colspan=3></td>
    <td colspan=3 align=RIGHT>&nbsp; </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> .01 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=3></td>
    <td colspan=2>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td></td>
    <td colspan=3></td>
    <td colspan=3 align=RIGHT>&nbsp; </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Net income: </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 2.11 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 1.51 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> .73 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> .65 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td align=RIGHT>&nbsp;</td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan="2" align=RIGHT valign="Bottom"><hr noshade color=#808080 size=2></td>
    <td align=LEFT valign="Bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 2.04 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 1.48 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> .71 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> .64 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td align=RIGHT>&nbsp;</td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan="2" align=RIGHT valign="Bottom"><hr noshade color=#808080 size=2></td>
    <td align=LEFT valign="Bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Weighted
      average common shares outstanding: </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>10,271 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>10,044 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>10,296 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>10,118 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td align=RIGHT>&nbsp;</td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan="2" align=RIGHT valign="Bottom"><hr noshade color=#808080 size=2></td>
    <td align=LEFT valign="Bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>10,599 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>10,256 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>10,621 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>10,337 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td align=RIGHT>&nbsp;</td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan="2" align=RIGHT valign="Bottom"><hr noshade color=#808080 size=2></td>
    <td align=LEFT valign="Bottom"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
</table>
<BR>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>The accompanying notes are an
integral part of these condensed consolidated financial statements.</I> </FONT></P>


<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3 </FONT></P>

<HR SIZE=5 COLOR=GRAY NOSHADE>

<P STYLE="page-break-after:always">
</P>
<PAGE>

<A NAME="A002"></A>
<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>DREW INDUSTRIES
INCORPORATED <BR>CONDENSED CONSOLIDATED BALANCE SHEETS</B><BR> <I>(Unaudited)</I> </FONT> </P>





<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <th colspan=5><font face="Times New Roman, Times, Serif" size=1>September
      30, </font>
      <hr width=100% size=1 NOSHADE>
    </th>
    <th>&nbsp;</th>
    <th nowrap><font face="Times New Roman, Times, Serif" size=1>December 31, </font>
      <hr width=100% size=1 NOSHADE>
    </th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2004 </font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2003 </font></th>
    <th>&nbsp;</th>
    <th><font face="Times New Roman, Times, Serif" size=1>2003 </font></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td colspan=9 align="left" nowrap>
      <hr width=100% size=1 NOSHADE>
    </td>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td colspan=2 align="left"><font face="Times New Roman, Times, Serif" size=1><i>(In
      thousands, except shares and per share amount)</i> </font></td>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1> </font></th>
  </tr>
  <tr valign=Bottom>
    <td width=66% align=LEFT>&nbsp;</td>
    <td width=1% align=LEFT>&nbsp;</td>
    <td width=1% align=RIGHT>&nbsp;</td>
    <td width=7% align=RIGHT>&nbsp;</td>
    <td width=3% align=LEFT>&nbsp;</td>
    <td width=1% align=RIGHT>&nbsp;</td>
    <td width=7% align=RIGHT>&nbsp;</td>
    <td width=3% align=LEFT>&nbsp;</td>
    <td width=7% align=RIGHT>&nbsp;</td>
    <td width=2% align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td width=66% align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>ASSETS </font></b></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=7% align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td width=3% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=7% align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td width=3% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=7% align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>Current
      assets </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Cash
      and cash equivalents </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 2,780 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 9,433 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 8,781 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Accounts
      receivable, trade, less allowances </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>39,140 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>22,775 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>14,844 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Inventories </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>79,625 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>35,232 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>37,311 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Prepaid
      expenses and other current assets </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>5,875 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>5,253 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>7,478 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=2></td>
    <td colspan=7 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      current assets </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>127,420 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>72,693 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>68,414 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>Fixed
      assets, net </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>96,503 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>72,816 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>72,211 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>Goodwill </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>17,397 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>10,219 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>12,333 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>Other
      intangible assets </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>6,424 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>4,456 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>4,953 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>Other
      assets </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,947 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,957 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,193 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=2></td>
    <td colspan=7 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      assets </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 250,691 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 163,141 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 160,104 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=2></td>
    <td colspan=7 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2><b>LIABILITIES
      AND STOCKHOLDERS&#146; EQUITY</b> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2><b>Current
      liabilities</b> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Notes
      payable, including current maturities of </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;long&#150;term
      indebtedness </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 12,491 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 9,825 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 9,931 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Accounts
      payable, trade </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>20,409 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>12,864 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>9,089 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Accrued
      expenses and other current liabilities </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>35,837 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>24,232 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>19,694 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Discontinued
      operations </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>69 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=2></td>
    <td colspan=7 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      current liabilities </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>68,737 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>46,990 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>38,714 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>Long&#150;term
      indebtedness </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>62,266 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>25,363 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>24,825 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>Other
      long&#150;term liabilities </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,082 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,997 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,912 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=2></td>
    <td colspan=7 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      liabilities </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>133,085 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>75,350 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>66,451 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=2></td>
    <td colspan=7 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>Commitments
      and Contingencies </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>Stockholders&#146;
      equity </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Common
      stock, par value $.01 per share: authorized </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30,000,000
      shares; issued 12,428,113 shares at September 2004; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,257,208
      shares at September 2003 and 12,353,168 at </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December
      2003 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>124 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>123 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>124 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Paid&#150;in
      capital </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>34,987 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>31,060 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>32,691 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Retained
      earnings </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>101,962 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>76,075 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>80,305 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=2></td>
    <td colspan=7 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>137,073 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>107,258 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>113,120 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Treasury
      stock, at cost &#150; 2,149,325 shares </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(19,467 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(19,467 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(19,467 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
  </tr>
  <tr>
    <td colspan=2></td>
    <td colspan=7 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      stockholders&#146; equity</b> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>117,606 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>87,791 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>93,653 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=2></td>
    <td colspan=7 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Total
      liabilities and stockholders&#146; equity</b> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 250,691 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 163,141 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 160,104 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=2></td>
    <td colspan=7 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>The accompanying notes are an
integral part of these condensed consolidated financial statements.</I> </FONT></P>


<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4 </FONT></P>


<HR SIZE=5 COLOR=GRAY NOSHADE>

<P STYLE="page-break-after:always">
</P>
<PAGE>
<BR>

<A NAME="A003"></A>
<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>DREW INDUSTRIES
INCORPORATED<BR>CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS</B><BR><I>(Unaudited)</I> </FONT> </P>






<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <th colspan=5><font face="Times New Roman, Times, Serif" size=1>Nine Months
      Ended<br>
      September 30, </font>
      <hr width=100% size=1 NOSHADE>
    </th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2004 </font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2003 </font></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td colspan=7 align="left">
      <hr width=100% size=1 NOSHADE>
    </td>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td colspan=2 align="left"><font face="Times New Roman, Times, Serif" size=1><i>(In
      thousands)</i> </font></td>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1> </font></th>
  </tr>
  <tr valign=Bottom>
    <td width=76% align=LEFT>&nbsp;</td>
    <td width=1% align=LEFT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width=1% align=RIGHT>&nbsp;</td>
    <td width=8% align=RIGHT>&nbsp;</td>
    <td width=2% align=LEFT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width=1% align=RIGHT>&nbsp;</td>
    <td width=9% align=RIGHT>&nbsp;</td>
    <td width=2% align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td width=76% align=LEFT><font face="Times New Roman, Times, Serif" size=2><b>Cash
      flows from operating activities:</b> </font></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=9% align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Net
      income </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 21,657 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 15,193 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT nowrap><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Adjustments
      to reconcile net income to cash flows provided by operating activities: </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued
      operations, net of taxes </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(138 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
  </tr>
  <tr>
    <td colspan=2></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income
      from continuing operations </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>21,657 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>15,055 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation
      and amortization </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>6,842 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>5,878 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss
      on disposal of fixed assets </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>243 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>106 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock
      based compensation expense </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>804 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>250 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes
      in assets and liabilities, net of business acquisitions: </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts
      receivable, net </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(19,168 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(9,592 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(35,740 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,247 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid
      expenses and other assets </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>3,274 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>4,082 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts
      payable, accrued expenses and other liabilities </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>20,951 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>9,498 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=2></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
      cash flows (used for) provided by continuing operating activities </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(1,137 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>27,524 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income
      from discontinued operations </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>138 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes
      in discontinued operations </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>771 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=2></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Net
      cash flows (used for) provided by operating activities</b> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(1,137 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>28,433 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=2></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2><b>Cash flows
      from investing activities:</b> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Capital
      expenditures </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(19,781 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(3,906 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Acquisition
      of company&#146;s business </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(21,388 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(3,752 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Proceeds
      from sales of fixed assets </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>341 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>65 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Other
      investments </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(289 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=2></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT height="17"><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
      cash flows used for investing activities </font></b></td>
    <td align=LEFT height="17"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT height="17"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT height="17"><font face="Times New Roman, Times, Serif" size=2>(41,117 </font></td>
    <td align=LEFT height="17"><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT height="17"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT height="17"><font face="Times New Roman, Times, Serif" size=2>(7,593 </font></td>
    <td align=LEFT height="17"><font face="Times New Roman, Times, Serif" size=2>) </font></td>
  </tr>
  <tr>
    <td colspan=2><b></b></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>Cash flows
      from financing activities: </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Proceeds
      from line of credit and other borrowings </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>170,470 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>31,550 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Repayments
      under line of credit and other borrowings </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(135,709 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(45,517 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Exercise
      of stock options </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,492 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,244 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td colspan="3" align=RIGHT><hr NOSHADE color=#808080 size=1></td>
    <td colspan="2" align=RIGHT><hr NOSHADE color=#808080 size=1></td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
      cash flows provided by (used for) financing activities </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>36,253 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(11,723 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
  </tr>
  <tr>
    <td colspan=2><b></b></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><b><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
      (decrease) increase in cash </font></b></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(6,001 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>9,117 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Cash and
      cash equivalents at beginning of period </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>8,781 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>316 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=2></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Cash and
      cash equivalents at end of period </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 2,780 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 9,433 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=2></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2><b>Supplemental
      disclosure of cash flows information:</b> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Cash
      paid during the period for: </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest
      on debt </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 2,289 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 2,717 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income
      taxes, net of refunds </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 7,105 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 5,935 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
</table>
<BR>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>The accompanying notes are an
integral part of these condensed consolidated financial statements.</I> </FONT></P>


<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5 </FONT></P>

<HR SIZE=5 COLOR=GRAY NOSHADE>

<P STYLE="page-break-after:always">
</P>
<PAGE>
<BR>


<A NAME="A004"></A>
<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>DREW INDUSTRIES
INCORPORATED<BR>CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS&#146; EQUITY</B><BR><I>(Unaudited)</I> </FONT> </P>







<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>Common<br>
      Stock </font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>Paid&#150;in<br>
      Capital </font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>Retained<br>
      Earnings </font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>Treasury<br>
      Stock </font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>Total<br>
      Stockholders&#146;<br>
      Equity </font></th>
  </tr>
  <tr valign=Bottom>
    <td colspan=17 align="left">
      <hr noshade color=#808080 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td colspan=3 align="left"><font face="Times New Roman, Times, Serif" size=1><i>(In thousands, except shares)</i> </font></td>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1> </font></th>
  </tr>
  <tr valign=Bottom>
    <td width=45% align=LEFT>&nbsp;</td>
    <td width=1% align=LEFT>&nbsp;</td>
    <td width=1% align=LEFT>&nbsp;</td>
    <td width=1% align=RIGHT>&nbsp;</td>
    <td width=8% align=RIGHT>&nbsp;</td>
    <td width=2% align=LEFT>&nbsp;</td>
    <td width=1% align=RIGHT>&nbsp;</td>
    <td width=8% align=RIGHT>&nbsp;</td>
    <td width=2% align=LEFT>&nbsp;</td>
    <td width=1% align=RIGHT>&nbsp;</td>
    <td width=7% align=RIGHT>&nbsp;</td>
    <td width=2% align=LEFT>&nbsp;</td>
    <td width=1% align=RIGHT>&nbsp;</td>
    <td width=8% align=RIGHT>&nbsp;</td>
    <td width=3% align=LEFT>&nbsp;</td>
    <td width=1% align=RIGHT>&nbsp;</td>
    <td width=8% align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2><b>Balance &#150; December 31, 2003</b> </font></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 124 </font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 32,691 </font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td width=7% align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 80,305 </font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2> (19,467 </font></td>
    <td width=3% align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 93,653 </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Net income for nine months ended </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;September 30, 2004 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>21,657 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>21,657 </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Issuance of 74,945 shares of common </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;stock pursuant to stock option plan </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>849 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>849 </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Income tax benefit relating to issuance </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of common stock pursuant to stock option plan </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>643 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>643 </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Stock based compensation expense</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>804</font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>804</font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=3 align=RIGHT>
      <hr noshade color=#808080 size=1>
    </td>
    <td colspan=3 align=RIGHT>
      <hr noshade color=#808080 size=1>
    </td>
    <td colspan=3 align=RIGHT>
      <hr noshade color=#808080 size=1>
    </td>
    <td colspan=3 align=RIGHT>
      <hr noshade color=#808080 size=1>
    </td>
    <td colspan=2 align=RIGHT>
      <hr noshade color=#808080 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Balance &#150; September 30, 2004 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 124 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 34,987 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 101,962 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> (19,467 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 117,606 </font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=3 align=RIGHT>
      <hr noshade color=#808080 size=2>
    </td>
    <td colspan=3 align=RIGHT>
      <hr noshade color=#808080 size=2>
    </td>
    <td colspan=3 align=RIGHT>
      <hr noshade color=#808080 size=2>
    </td>
    <td colspan=3 align=RIGHT>
      <hr noshade color=#808080 size=2>
    </td>
    <td colspan=2 align=RIGHT>
      <hr noshade color=#808080 size=2>
    </td>
  </tr>
</table>
<BR>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>The accompanying notes are an
integral part of these condensed consolidated financial statements.</I> </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6 </FONT></P>


<HR SIZE=5 COLOR=GRAY NOSHADE>
<P STYLE="page-break-after:always">
</P>
<PAGE>
<BR>

<A NAME="A005"></A>
<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>DREW INDUSTRIES
INCORPORATED <BR>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS </B><BR>
<em>(Unaudited)</em> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>1.</B> </FONT> </TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Basis
of Presentation</B> </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Condensed Consolidated Financial Statements include the accounts of Drew Industries
Incorporated and its subsidiaries (&#147;Drew&#148; or the &#147;Company&#148;). Drew has
no unconsolidated subsidiaries. Drew&#146;s wholly-owned active subsidiaries are Kinro,
Inc. and its subsidiaries (&#147;Kinro&#148;), and Lippert Components, Inc. and its
subsidiaries (&#147;Lippert&#148;). Drew, through its wholly-owned subsidiaries, supplies
a broad array of components for recreational vehicles and manufactured homes, and, to a
lesser extent, specialty trailers for leisure products. All significant intercompany
balances and transactions have been eliminated. Certain prior year balances have been
reclassified to conform to current year presentation.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Condensed Consolidated Financial Statements presented herein have been prepared by the
Company in accordance with the accounting policies described in its December 31, 2003
Annual Report on Form 10-K and should be read in conjunction with the Notes to
Consolidated Financial Statements which appear in that report.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the opinion of management, the information furnished in this Form 10-Q reflects all
adjustments necessary for a fair statement of the financial position and results of
operations as of and for the nine and three month periods ended September 30, 2004 and
2003. All such adjustments are of a normal recurring nature. The Condensed Consolidated
Financial Statements have been prepared in accordance with the instructions to Form 10-Q
and therefore do not include some information and notes necessary to conform with annual
reporting requirements.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>2.</B> </FONT> </TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Segment
Reporting &nbsp;</B> </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company has two reportable operating segments, the recreational vehicle and leisure
products segment (the &#147;RV segment&#148;) and the manufactured housing products
segment (the &#147;MH segment&#148;). The RV segment, which accounted for 66 percent of
consolidated net sales for the nine months ended September 30, 2004 and 62 percent of
consolidated net sales for the nine months ended September 30, 2003, manufactures a
variety of products used in the production of recreational vehicles, including windows,
doors, chassis, chassis parts, slide out mechanisms and related power units and electric
stabilizer jacks. The RV segment also manufactures specialty trailers for equipment
hauling, boats, personal watercraft and snowmobiles. The MH segment, which accounted for
34 percent of consolidated net sales for the nine months ended September 30, 2004 and 38
percent of consolidated net sales for the nine months ended September 30, 2003,
manufactures a variety of products used in the construction of manufactured homes, and to
a lesser extent, modular housing and office units, including vinyl and aluminum windows,
chassis, chassis parts and thermo-formed bath and shower units. Intersegment sales are
insignificant.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decisions
concerning the allocation of the Company&#146;s resources are made by the Company&#146;s
key executives. This group evaluates the performance of each segment based upon segment
profit or loss, defined as income before interest, amortization of intangibles and income
taxes. Management of debt is considered a corporate function. The accounting policies of
the RV and MH segments are the same as those described in Note 1 of Notes to Consolidated
Financial Statements, of the Company&#146;s December 31, 2003 Annual Report on Form 10-K.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7 </FONT></P>


<HR SIZE=5 COLOR=GRAY NOSHADE>
<P STYLE="page-break-after:always">
</P>
<PAGE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>DREW INDUSTRIES
INCORPORATED <BR>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)</B><BR><I>(Unaudited)</I> </FONT> </P>



<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information
relating to segments follows <I>(in thousands)</I>:  </FONT></P>






<table cellpadding=0 cellspacing=0 border=0 width=599>
  <tr valign=Bottom>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>  </font></th>
    <th colspan=5><font face="Times New Roman, Times, Serif" size=1>Nine Months
      Ended<br>
      September 30,  </font>
      <hr width=100% size=1 NOSHADE>
    </th>
    <th>&nbsp;</th>
    <th colspan=5><font face="Times New Roman, Times, Serif" size=1>Three Months
      Ended<br>
      September 30,  </font>
      <hr width=100% size=1 NOSHADE>
    </th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>  </font></th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2004  </font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2003  </font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2004  </font></th>
    <th>&nbsp;</th>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1>2003  </font></th>
  </tr>
  <tr valign=Bottom>
    <td width=5% align=LEFT>&nbsp;</td>
    <td colspan="12" align=LEFT>
      <hr width=100% size=1 NOSHADE>
    </td>
    <td width=1% align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td width=5% align=LEFT>&nbsp;</td>
    <td width=45% align=LEFT><font face="Times New Roman, Times, Serif" size=2>Net
      sales:  </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
       </font></td>
    <td width=4% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
       </font></td>
    <td width=4% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
       </font></td>
    <td width=4% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
       </font></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RV
      segment  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 262,856
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 165,010
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 95,885
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 59,296
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MH
      segment  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>135,684
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>101,334
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>52,945  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>36,811  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
  </tr>
  <tr>
    <td colspan=2></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
       </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 398,540
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 266,344
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 148,830
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 96,107
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
  </tr>
  <tr>
    <td colspan=2></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td align=RIGHT>&nbsp;</td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Operating
      profit:  </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RV
      segment  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 26,598
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 19,392
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 8,333  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 7,976  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MH
      segment  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>15,498  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>11,219  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>6,441  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>4,740  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
  </tr>
  <tr>
    <td colspan=2></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      segments operating profit  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 42,096
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 30,611
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 14,774
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 12,716
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Amortization
      of intangibles  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(753  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(571  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(287  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(196  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)  </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Corporate
      and other  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(4,145  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(3,016  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(1,459  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(1,030  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>)  </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Other income
       </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>428  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151;  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151;  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151;  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
  </tr>
  <tr>
    <td colspan=2></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating
      profit  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 37,626
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 27,024
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 13,028
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 11,490
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
  </tr>
  <tr>
    <td colspan=2></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td align=RIGHT>&nbsp;</td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
</table>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>3.</B> </FONT> </TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Acquisitions</B> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
May 4, 2004, Lippert, the Company&#146;s wholly-owned subsidiary, acquired
California-based Zieman Manufacturing Company (&#147;Zieman&#148;). Zieman is a
manufacturer of specialty trailers for equipment hauling, boats, personal watercraft and
snowmobiles, and chassis and chassis parts for towable recreational vehicles and
manufactured homes. The purchase price was $21.4 million, plus $5.2 million of Zieman&#146;s
debt which the Company assumed on closing. The purchase price was funded with borrowings
under the Company&#146;s line of credit. Zieman has 10 plants in 4 states in the western
United States.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
results of the acquired business have been included in the Company&#146;s Consolidated
Statement of Income beginning May 4, 2004. Zieman&#146;s sales for its fiscal year ended
December 31, 2003 were approximately $42 million. The operations of Zieman are being
integrated with those of Lippert. The production processes and raw materials used by
Zieman are substantially similar to those of Lippert, and it is expected that the
operating margins achieved by this newly-acquired business will, over time, approximate
those achieved by Lippert.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
consideration was allocated as follows <I>(in thousands)</I>:  </FONT></P>


<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1> </font></th>
  </tr>
  <tr valign=Bottom>
    <td width=20% align=LEFT>&nbsp;</td>
    <td width=50% align=LEFT><font face="Times New Roman, Times, Serif" size=2>Net
      tangible assets acquired </font></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=left><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      18,964 </font></td>
    <td width=20% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Identifiable
      intangible assets </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,600 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Goodwill </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>5,064 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=left>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      consideration </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>26,628 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Less: Debt
      assumed </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(5,240 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=2 align=left>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=left>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      cash consideration </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=left><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 21,388 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8 </FONT></P>




<HR SIZE=5 COLOR=GRAY NOSHADE>

<P STYLE="page-break-after:always">
</P>
<PAGE>
<BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>DREW INDUSTRIES
INCORPORATED <BR>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)</B><BR><I>(Unaudited)</I> </FONT> </P>



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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>4.</B> </FONT> </TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Inventories</B> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories
are stated at the lower of cost (using the first-in, first-out method) or market. Cost
includes material, labor and overhead; market is replacement cost or realizable value
after allowance for costs of distribution.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories
consist of the following <I>(in thousands)</I>:  </FONT></P>





<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1>  </font></th>
    <th colspan=5><font face="Times New Roman, Times, Serif" size=1>September
      30,  </font>
      <hr width=100% size=1 NOSHADE>
    </th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>December 31,
       </font>
      <hr width=100% size=1 NOSHADE>
    </th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1>  </font></th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2004  </font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2003  </font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2003  </font></th>
    <th>&nbsp;</th>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td width=5% align=LEFT>&nbsp;</td>
    <td width=45% align=LEFT>&nbsp;</td>
    <td width=5% align=LEFT>&nbsp;</td>
    <td width=1% align=RIGHT>&nbsp;</td>
    <td width=10% align=RIGHT>&nbsp;</td>
    <td width=6% align=LEFT>&nbsp;</td>
    <td width=1% align=RIGHT>&nbsp;</td>
    <td width=10% align=RIGHT>&nbsp;</td>
    <td width=6% align=LEFT>&nbsp;</td>
    <td width=1% align=RIGHT>&nbsp;</td>
    <td width=10% align=RIGHT>&nbsp;</td>
    <td width=2% align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td width=5% align=LEFT>&nbsp;</td>
    <td width=45% align=LEFT><font face="Times New Roman, Times, Serif" size=2>Finished
      goods  </font></td>
    <td width=5% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$
       </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      11,982  </font></td>
    <td width=6% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$
       </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      6,690  </font></td>
    <td width=6% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$
       </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      7,438  </font></td>
    <td width=5% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;
       </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Work in process
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,189  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,359  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>1,165  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Raw material
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>65,454  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>27,183  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>28,708  </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 79,625
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 35,232
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$  </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 37,311
       </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;  </font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
</table>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Long
Term Indebtedness </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-term
indebtedness consists of the following <I>(in thousands):</I> </FONT></P>




<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th colspan=4><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <th colspan=5><font face="Times New Roman, Times, Serif" size=1>September
      30, </font>
      <hr width=100% size=1 NOSHADE>
    </th>
    <th>&nbsp;</th>
    <th colspan=2 nowrap><font face="Times New Roman, Times, Serif" size=1>December
      31, </font>
      <hr width=100% size=1 NOSHADE>
    </th>
  </tr>
  <tr valign=Bottom>
    <th colspan=4><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2004 </font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2003 </font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2003 </font></th>
  </tr>
  <tr valign=Bottom>
    <td width=5% align=LEFT>&nbsp;</td>
    <td colspan="11" align=LEFT>
      <hr width=100% size=1 NOSHADE>
    </td>
  </tr>
  <tr valign=Bottom>
    <td width=5% align=LEFT>&nbsp;</td>
    <td width=60% align=LEFT>&nbsp;</td>
    <td width=1% align=LEFT>&nbsp;</td>
    <td width=2% align=LEFT>&nbsp;</td>
    <td width=1% align=RIGHT>&nbsp;</td>
    <td width=7% align=RIGHT>&nbsp;</td>
    <td width=3% align=LEFT>&nbsp;</td>
    <td width=1% align=RIGHT>&nbsp;</td>
    <td width=7% align=RIGHT>&nbsp;</td>
    <td width=3% align=LEFT>&nbsp;</td>
    <td width=1% align=RIGHT>&nbsp;</td>
    <td width=7% align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Senior Notes
      payable at the rate of $8,000 per annum<br>
      &nbsp;&nbsp;on January 28, with interest payable semi-annually at the<br>
      &nbsp;&nbsp;rate of 6.95% per annum; final payment<br>
      &nbsp;&nbsp;due January 28, 2005 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 8,000 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 16,000 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 16,000 </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Notes payable
      pursuant to a primary credit agreement<br>
      &nbsp;&nbsp;expiring April 30, 2006 consisting of a line of credit, not<br>
      &nbsp;&nbsp;to exceed $55,000; interest at prime rate or LIBOR plus<br>
      &nbsp;&nbsp;a rate margin based upon the Company&#146;s performance </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>44,445 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Notes payable
      pursuant to a credit agreement expiring<br>
      &nbsp;&nbsp;October 29, 2004 consisting of a line of credit, not<br>
      &nbsp;&nbsp;to exceed $2,500; interest at prime rate or an offshore rate </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>2,000 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Industrial
      Revenue Bonds, interest rates at September 30, 2004<br>
      &nbsp;&nbsp;of 1.75% to 6.28%, due 2008 through 2017; secured by<br>
      &nbsp;&nbsp;certain real estate and equipment </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>7,370 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>8,068 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>7,858 </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Real estate
      mortgage payable at the rate of $70 per month<br>
      &nbsp;&nbsp;with a balloon payment of $3,371 in May 2006,<br>
      &nbsp;&nbsp;interest at 9.03% per annum </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>4,151 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>4,590 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>4,484 </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Other loans
      primarily secured by certain real estate and<br>
      &nbsp;&nbsp;equipment, due 2005 to 2016, stated interest rates<br>
      &nbsp;&nbsp;of 3.75% to 9.31% </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>8,791 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>6,530 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>6,414 </font></td>
  </tr>
  <tr>
    <td colspan=4></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>74,757 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>35,188 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>34,756 </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Less current
      portion </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>12,491 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>9,825 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>9,931 </font></td>
  </tr>
  <tr>
    <td colspan=4></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Total long-term
      indebtedness </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 62,266 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 25,363 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 24,825 </font></td>
  </tr>
  <tr>
    <td colspan=4></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9 </FONT></P>





<HR SIZE=5 COLOR=GRAY NOSHADE>

<P STYLE="page-break-after:always">
</P>
<PAGE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>DREW INDUSTRIES
INCORPORATED <BR>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)</B><BR><I>(Unaudited)</I> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
connection with the acquisition of Zieman, the Company assumed $5.2 million of Zieman&#146;s
debt. Included in Zieman&#146;s debt was a line of credit for $2.5 million, which was
repaid on October 29, 2004. The remaining debt of Zieman consists of Industrial Revenue
Bonds, real estate mortgages and other loans with stated interest rates at the time of
the acquisition ranging from 1.25% to 9.31%, due 2005 to 2012.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
August 23, 2004, the Company&#146;s credit agreement was increased to $55 million. The
line of credit will automatically reduce to $50 million on October 31, 2004 and $45
million on November 30, 2004.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the Senior Notes, the credit agreements, and certain of the other loan agreements, the
Company is required to maintain minimum net worth and interest and fixed charge coverages
and to meet certain other financial requirements. The Company is in compliance with all
such requirements. Borrowings under the Senior Notes and the credit agreements are
secured only by the capital stock of the Company&#146;s subsidiaries.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
October 18, 2004, the Company entered into a five-year interest rate swap with KeyBank
National Association with a notional amount of $20,000,000 from which it will receive
periodic payments at the 3 month LIBOR rate plus the Company&#146;s applicable spread and
make periodic payments at a fixed rate of 3.3525% plus the Company&#146;s applicable
spread, with settlement and rate reset dates every November 15, February 15, May 15 and
August 15. The notional amount of the interest rate swap decreases by $1,000,000 on each
quarterly reset date beginning February 15, 2005. The fair value of the swap is zero at
inception.  </FONT></P>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>6.</B> </FONT> </TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Weighted
Average Common Shares Outstanding</B> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
income per diluted common share reflects the dilution of the weighted average common
shares by the assumed issuance of common stock pertaining to stock options. The
numerator, which is equal to net income, is constant for both the basic and diluted
earnings per share calculations. Weighted average common shares outstanding &#151; diluted
is calculated as follows <I>(in thousands)</I>:  </FONT></P>






<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th colspan=4><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <th colspan=5><font face="Times New Roman, Times, Serif" size=1>Nine Months
      Ended<br>
      September 30, </font>
      <hr width=100% size=1 NOSHADE>
    </th>
    <th width="4%">&nbsp;</th>
    <th colspan=5><font face="Times New Roman, Times, Serif" size=1>Three Months
      Ended<br>
      September 30, </font>
      <hr width=100% size=1 NOSHADE>
    </th>
  </tr>
  <tr valign=Bottom>
    <th colspan=4><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1>2004 </font></th>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1>2003 </font></th>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1>2004 </font></th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2003 </font></th>
  </tr>
  <tr valign=Bottom>
    <td width=5% align=LEFT>&nbsp;</td>
    <td colspan="14" align=LEFT>
      <hr width=100% size=1 NOSHADE>
    </td>
  </tr>
  <tr valign=Bottom>
    <td width=5% align=LEFT>&nbsp;</td>
    <td width=45% align=LEFT>&nbsp;</td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=4% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=7% align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td width=4% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=7% align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td width=4% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=7% align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td width=4% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="5%">&nbsp;</td>
    <td align=LEFT width="45%"><font face="Times New Roman, Times, Serif" size=2>Weighted
      average common shares<br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;outstanding &#150; basic </font></td>
    <td align=LEFT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman, Times, Serif" size=2>10,271 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman, Times, Serif" size=2>10,044 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman, Times, Serif" size=2>10,296 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>10,118 </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="5%">&nbsp;</td>
    <td align=LEFT width="45%"><font face="Times New Roman, Times, Serif" size=2>Assumed
      issuance of common stock<br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;pertaining to stock options </font></td>
    <td align=LEFT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman, Times, Serif" size=2>328 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman, Times, Serif" size=2>212 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman, Times, Serif" size=2>325 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>219 </font></td>
  </tr>
  <tr>
    <td colspan=4></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="5%">&nbsp;</td>
    <td align=LEFT width="45%"><font face="Times New Roman, Times, Serif" size=2>Weighted
      average common shares<br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;outstanding &#150; diluted </font></td>
    <td align=LEFT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman, Times, Serif" size=2>10,599 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman, Times, Serif" size=2>10,256 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="7%"><font face="Times New Roman, Times, Serif" size=2>10,621 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>10,337 </font></td>
  </tr>
  <tr>
    <td colspan=4></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>7.</B> </FONT> </TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Stock
Options</B> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2002, the Company adopted the fair value method of accounting for stock options contained
in Statement of Financial Standards No. 123 (&#147;SFAS No. 123&#148;) &#147;Accounting
for Stock-Based Compensation,&#148; which is considered the preferable method of
accounting for stock-based employee compensation. During the transition period, the
Company will be utilizing the prospective method under SFAS No.148 &#147;Accounting for
Stock-Based Compensation &#150; Transition and Disclosures.&#148; All employee stock
options granted subsequent to January 1, 2002 are being expensed over the stock option
vesting period based on fair value, determined using the Black-Scholes option-pricing
method, at the date the options were granted.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10 </FONT></P>




<HR SIZE=5 COLOR=GRAY NOSHADE>

<P STYLE="page-break-after:always">
</P>
<PAGE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>DREW INDUSTRIES
INCORPORATED <BR>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)</B><BR><I>(Unaudited)</I> </FONT> </P>


<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Historically,
the Company had applied the &#147;disclosure only&#148; option of SFAS No.123.
Accordingly, no compensation cost has been recognized for stock options granted prior to
January 1, 2002.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensation
expense related to stock options was $635,000 and $212,000 for the nine and three months
ended September 30, 2004, respectively, and $90,000 and $30,000 for the nine and three
months ended September 30, 2003, respectively. The following table illustrates the effect
on net income and net income per common share as if the fair value method had been
applied to all outstanding and unvested awards in each period<I> (in thousands, except
per share amounts)</I>:  </FONT></P>






<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <th colspan=5><font face="Times New Roman, Times, Serif" size=1>Nine Months
      Ended<br>
      September 30, </font>
      <hr width=100% size=1 NOSHADE>
    </th>
    <th width="4%">&nbsp;</th>
    <th colspan=5><font face="Times New Roman, Times, Serif" size=1>Three Months
      Ended<br>
      September 30, </font>
      <hr width=100% size=1 NOSHADE>
    </th>
    <th width="2%">&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1>2004 </font></th>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1>2003 </font></th>
    <th colspan=3><font face="Times New Roman, Times, Serif" size=1>2004 </font></th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2003 </font></th>
    <th width="2%">&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td colspan="14" align=LEFT>
      <hr width=100% size=1 NOSHADE>
    </td>
    <td width=2% align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td width=46% align=LEFT>&nbsp;</td>
    <td width=1% align=LEFT>&nbsp;</td>
    <td width=3% align=LEFT>&nbsp;</td>
    <td width=1% align=RIGHT>&nbsp;</td>
    <td width=8% align=RIGHT>&nbsp;</td>
    <td width=4% align=LEFT>&nbsp;</td>
    <td width=1% align=RIGHT>&nbsp;</td>
    <td width=8% align=RIGHT>&nbsp;</td>
    <td width=4% align=LEFT>&nbsp;</td>
    <td width=1% align=RIGHT>&nbsp;</td>
    <td width=8% align=RIGHT>&nbsp;</td>
    <td width=4% align=LEFT>&nbsp;</td>
    <td width=1% align=RIGHT>&nbsp;</td>
    <td width=8% align=RIGHT>&nbsp;</td>
    <td width=2% align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td width=46% align=LEFT><font face="Times New Roman, Times, Serif" size=2>Net
      income as reported </font></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=3% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      21,657 </font></td>
    <td width=4% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      15,193 </font></td>
    <td width=4% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      7,514 </font></td>
    <td width=4% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      6,582 </font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="46%"><font face="Times New Roman, Times, Serif" size=2>Add:
      Stock based employee compensation </font></td>
    <td align=LEFT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT width="3%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="46%"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;expense
      included in reported net </font></td>
    <td align=LEFT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT width="3%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="46%"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;income,
      net of related tax effects </font></td>
    <td align=LEFT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT width="3%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>389 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>55 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>131 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>18 </font></td>
    <td align=LEFT width="2%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="46%"><font face="Times New Roman, Times, Serif" size=2>Deduct:
      Total stock-based employee compensation </font></td>
    <td align=LEFT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT width="3%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="46%"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;expense
      determined under fair value method </font></td>
    <td align=LEFT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT width="3%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="46%"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;for
      all awards, net of related tax effect </font></td>
    <td align=LEFT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT width="3%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>(593 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>(266 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>(197 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>(89 </font></td>
    <td align=LEFT width="2%"><font face="Times New Roman, Times, Serif" size=2>) </font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td width="2%" align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="46%">&nbsp;</td>
    <td align=LEFT width="1%">&nbsp;</td>
    <td align=LEFT width="3%">&nbsp;</td>
    <td align=RIGHT width="1%">&nbsp;</td>
    <td align=RIGHT width="8%">&nbsp;</td>
    <td align=LEFT width="4%">&nbsp;</td>
    <td align=RIGHT width="1%">&nbsp;</td>
    <td align=RIGHT width="8%">&nbsp;</td>
    <td align=LEFT width="4%">&nbsp;</td>
    <td align=RIGHT width="1%">&nbsp;</td>
    <td align=RIGHT width="8%">&nbsp;</td>
    <td align=LEFT width="4%">&nbsp;</td>
    <td align=RIGHT width="1%">&nbsp;</td>
    <td align=RIGHT width="8%">&nbsp;</td>
    <td align=LEFT width="2%">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="46%"><font face="Times New Roman, Times, Serif" size=2>Pro
      forma net income </font></td>
    <td align=LEFT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT width="3%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>
      21,453 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>
      14,982 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>
      7,448 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>
      6,511 </font></td>
    <td align=LEFT width="2%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td width="2%" align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="46%">&nbsp;</td>
    <td align=LEFT width="1%">&nbsp;</td>
    <td align=LEFT width="3%">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="46%"><font face="Times New Roman, Times, Serif" size=2>Net
      income per common share: </font></td>
    <td align=LEFT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT width="3%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="46%"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Basic
      &#150; as reported </font></td>
    <td align=LEFT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT width="3%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>
      2.11 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>
      1.51 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>
      .73 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>
      .65 </font></td>
    <td align=LEFT width="2%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td width="2%" align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="46%"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Basic
      &#150; pro forma </font></td>
    <td align=LEFT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT width="3%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>
      2.09 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>
      1.49 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>
      .72 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>
      .64 </font></td>
    <td align=LEFT width="2%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td width="2%" align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="46%">&nbsp;</td>
    <td align=LEFT width="1%">&nbsp;</td>
    <td align=LEFT width="3%">&nbsp;</td>
    <td align=RIGHT width="1%">&nbsp;</td>
    <td align=RIGHT width="8%">&nbsp;</td>
    <td align=LEFT width="4%">&nbsp;</td>
    <td align=RIGHT width="1%">&nbsp;</td>
    <td align=RIGHT width="8%">&nbsp;</td>
    <td align=LEFT width="4%">&nbsp;</td>
    <td align=RIGHT width="1%">&nbsp;</td>
    <td align=RIGHT width="8%">&nbsp;</td>
    <td align=LEFT width="4%">&nbsp;</td>
    <td align=RIGHT width="1%">&nbsp;</td>
    <td align=RIGHT width="8%">&nbsp;</td>
    <td align=LEFT width="2%">&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="46%"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Diluted
      &#150; as reported </font></td>
    <td align=LEFT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT width="3%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>
      2.04 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>
      1.48 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>
      .71 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>
      .64 </font></td>
    <td align=LEFT width="2%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td width="2%" align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT width="46%"><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;Diluted
      &#150; pro forma </font></td>
    <td align=LEFT width="1%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT width="3%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>
      2.02 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>
      1.46 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>
      .70 </font></td>
    <td align=LEFT width="4%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT width="1%"><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT width="8%"><font face="Times New Roman, Times, Serif" size=2>
      .63 </font></td>
    <td align=LEFT width="2%"><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=3></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td width="2%" align=RIGHT>&nbsp;</td>
  </tr>
</table>
<BR>


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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>8.</B> </FONT> </TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Other
Income</B> </FONT> </TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
February 2004, the Company sold certain intellectual property rights relating to a process
used to manufacture a new composite material. Simultaneously with the sale, the Company
entered into an equipment lease and a license agreement with the buyer. The lease is still
not effective since the equipment and tooling received by the Company from the lessor is
not yet operational. The Company plans to use the new composite material in the production
of certain bath products for the manufactured housing, modular housing, and recreational
vehicle industries on an exclusive, royalty-free basis. This new composite material will
enable the Company to better compete against fiberglass bath products in these industries.
The Company will also have the right to use the new composite material on a royalty-free,
non-exclusive basis to manufacture various other products for the manufactured housing,
modular housing, and recreational vehicle industries. Sales of these new products, if any,
are not expected to be significant in 2004. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
sale price for the intellectual property rights was $4.0 million, consisting of cash of
$100,000 at closing and a note of $3.9 million, payable over five years. The Company had a
minimal basis in the intellectual property sold. In 2004, the Company has received the
payments under the note of approximately $.5 million. The note bears interest at
increasing annual interest rates, and is secured by a lien on the intellectual property
rights sold, a right of offset against the lease, and a guaranty. The note is convertible
at the Company&#146;s option into an equity interest in the new venture that the buyer has
formed to promote this process. A pre-tax gain on sale of $428,000 was recorded in the
first quarter of 2004. Additional gains, if any, will be recorded as payments on the $3.5
million balance of the note are received. </FONT></P>




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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11 </FONT></P>

<HR SIZE=5 COLOR=GRAY NOSHADE>

<P STYLE="page-break-after:always">
</P>
<PAGE>
<BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>DREW INDUSTRIES
INCORPORATED <BR>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)</B><BR><I>(Unaudited)</I> </FONT> </P>


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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>9.</B> </FONT> </TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Commitments</B> </FONT> </TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
October 8, 2004, the Company entered into an agreement to purchase approximately 37 acres
of land and several buildings consisting of approximately 468,000 sq. ft. of
manufacturing and office space. The purchase price is $6.2 million, payable $0.5 million
upon signing the agreement and $2.6 million upon the current tenant vacating the
property. Both payments will be paid into escrow until the final payment of $3.1 million
is made on or about January 2, 2006 when title will pass to the Company. Until the
closing, which is subject to the completion of environmental due diligence and other
conditions, the Company will lease such property from the owner as the current tenant
vacates the property. The property is owned by a primary owner of a significant customer
of the Company, which is the current tenant.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
space will primarily be used to consolidate existing office space and manufacturing
capacity from other leased facilities, as well as to provide manufacturing capacity for
new product development.  </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12 </FONT></P>

<HR SIZE=5 COLOR=GRAY NOSHADE>
<P STYLE="page-break-after:always">
</P>
<PAGE>
<BR>

<A NAME="A006"></A>
<!-- MARKER FORMAT-SHEET="Head Minor Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>DREW INDUSTRIES
INCORPORATED <BR>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF<BR> FINANCIAL CONDITION AND RESULTS
OF OPERATIONS  </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company has two reportable operating segments, the recreational vehicle and leisure
products segment (the &#147;RV segment&#148;) and the manufactured housing products
segment (the &#147;MH segment&#148;).  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s operations are conducted through its operating subsidiaries. Its two
primary operating subsidiaries, Kinro, Inc. (&#147;Kinro&#148;) and Lippert Components,
Inc. (&#147;Lippert&#148;) have operations in both the MH and RV segments. At September
30, 2004, the Company&#146;s subsidiaries operated 51 plants in the United States and one
in Canada.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
RV segment accounted for 64 percent of consolidated net sales for the three months ended
September 30, 2004 and 62 percent of the annual consolidated net sales for 2003. The RV
segment manufactures a variety of products used in the production of recreational
vehicles, including windows, doors, chassis, chassis parts, slide-out mechanisms and
related power units, and electric stabilizer jacks. The RV segment also manufactures
specialty trailers for equipment hauling, boats, personal watercraft and snowmobiles. The
Company&#146;s RV products are used primarily in travel trailers and fifth wheel RVs.
Travel trailers and fifth wheel RVs accounted for 68 percent of all RVs shipped by the
industry in the first nine months of 2004, up from 61 percent in 2001. In recent months,
the Company has begun to focus its efforts on expanding its market share for products
used in motorhomes, and began selling slide-out mechanisms and leveling devices for
motorhomes in the second quarter of 2004.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
MH segment, which accounted for 36 percent of consolidated net sales for the three months
ended September 30, 2004 and 38 percent of the annual consolidated net sales for 2003,
manufactures a variety of products used in the construction of manufactured homes, and to
a lesser extent, modular housing and office units, including vinyl and aluminum windows
and screens, chassis, chassis parts and thermo-formed bath and shower units.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
May 4, 2004, Lippert acquired California-based Zieman Manufacturing Company (&#147;Zieman&#148;).
Zieman is a manufacturer of specialty trailers for equipment hauling, boats, personal
watercraft and snowmobiles, and chassis and chassis parts for towable recreational
vehicles and manufactured homes. The purchase price was $21.4 million, plus $5.2 million
of Zieman&#146;s debt which the Company assumed on closing. The purchase price was funded
with borrowings under the Company&#146;s line of credit. Zieman has 10 plants in 4 states
in the western United States.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
results of the acquired business have been included in the Company&#146;s Consolidated
Statement of Income beginning May 4, 2004. Zieman&#146;s sales for fiscal year ended
December 31, 2003 were approximately $42 million. The operations of Zieman are being
integrated with those of Lippert. The production processes and raw materials used by
Zieman are substantially similar to those of Lippert, and it is expected that the
operating margins achieved by this newly-acquired business will, over time, approximate
those achieved by Lippert.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Until
the second quarter of 2004, the Company&#146;s RV segment included only recreational
vehicle products, however, with the Company&#146;s acquisition of Zieman, the specialty
trailer business of Zieman has been added to the RV segment.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intersegment
sales and sales of other products are insignificant.  </FONT></P>

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<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13 </FONT></P>




<HR SIZE=5 COLOR=GRAY NOSHADE>

<P STYLE="page-break-after:always">
</P>
<PAGE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>DREW INDUSTRIES
INCORPORATED <BR>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF <BR>FINANCIAL CONDITION AND RESULTS
OF OPERATIONS <BR></B>(Continued) </FONT> </P>

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<P><strong><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BACKGROUND </FONT></strong></P>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Recreational Vehicle Industry</I> </FONT> </P>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Recreational Vehicle Industrial Association (&#147;RVIA&#148;) reported an 18 percent
increase in total industry shipments in the first nine months of 2004, compared to the
same period in 2003. Shipments of travel trailers and fifth wheel RVs, the Company&#146;s
primary market, increased 19 percent in the first nine months of 2004. In 2003, the RVIA
reported an increase of 3 percent in total RV shipments to 320,800 units, while shipments
of travel trailers and fifth wheel RVs increased more than nine percent in 2003 to
214,400 units. The RVIA is projecting an 8% decline in wholesale shipments of RVs in
2005, including a 6% decline in travel trailers and fifth wheel RVs. In the long-term,
increasing industry RV sales are expected to continue to be driven by positive
demographics, as demand for RVs is strongest from the over 50 age group, which is the
fastest growing segment of the population. Industry growth also continues to be bolstered
by the preference for domestic vacations, rather than foreign travel, and low interest
rates. In recent years, the RVIA has employed an advertising campaign to attract
customers in the 35 to 54 age group, and the number of RV&#146;s owned by those 35 to 54
grew faster than all other age groups.  </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Manufactured Housing
Industry</I> </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
a result of limited credit availability for purchases of manufactured homes, high
interest rate spreads between conventional mortgages on site built homes and chattel
loans for manufactured homes (chattel loans have been used to finance approximately 30
percent of manufactured homes purchased this year), and unusually high repossessions of
manufactured homes, industry production declined approximately 65 percent since 1998, to
131,000 homes in 2003, the lowest production level in 40 years. However, based upon
industry reports, retail sales of manufactured homes have declined much less severely
than industry production in recent years. Almost 50 percent of retail sales in the last
several years have been filled by inventory reductions by dealers and manufacturers, and
the resale of repossessed homes, rather than new production. It has been estimated that
approximately 90,000 to 100,000 manufactured homes were repossessed in each of 2001, 2002
and 2003, far in excess of historical repossession levels. It has been reported that the
level of repossessions of manufactured homes has declined this year.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Manufactured Housing Institute (&#147;MHI&#148;) reported that industry wholesale
shipments of manufactured homes declined 3 percent in the first nine months of 2004, and
2 percent in the third quarter of 2004, from the comparable periods in 2003.
Industry-wide wholesale shipments of manufactured homes increased over 7 percent in
September 2004, apparently due to the shipment of 1,600 manufactured homes ordered by the
Federal Emergency Management Agency (FEMA) to provide emergency housing to hurricane
victims in the southeastern United States. Excluding these shipments to FEMA,
industry-wide wholesale shipments were down about 6 percent for September and the third
quarter. The availability of financing for manufactured homes has apparently improved
somewhat in recent months, and is expected to improve further, as a result of Fannie Mae&#146;s
easing of financing requirements for manufactured homes, as well as the entry of several
lenders into the market. In addition, in September 2003 Berkshire Hathaway Inc. acquired
Clayton Homes and Oakwood Homes, two of the leading producers of manufactured homes, as
well as 21<SUP>st</SUP> Mortgage. Berkshire helped Clayton raise substantial funds for
its mortgage operations. Further, it has been reported that the level of repossessions of
manufactured homes has declined this year. Long-term prospects for manufactured housing
are favorable because manufactured homes provide quality, affordable housing.  </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14 </FONT></P>





<HR SIZE=5 COLOR=GRAY NOSHADE>

<P STYLE="page-break-after:always">
</P>
<PAGE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>DREW INDUSTRIES
INCORPORATED <BR>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF <BR>FINANCIAL CONDITION AND RESULTS
OF OPERATIONS <BR></B>(Continued) </FONT> </P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Steel Prices</I> </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Steel
is one of the Company&#146;s primary raw materials in both segments, representing about
50 percent of the Company&#146;s raw material costs. In mid December 2003 and continuing
into 2004, the Company was notified by its steel suppliers of unprecedented steel cost
increases. The prices the Company pays for steel, depending on the type of steel
purchased, are currently double to triple the levels they were a year ago. To offset the
impact of higher steel costs, the Company implemented surcharges and sales price
increases to its customers. The Company estimates that 85 percent to 90 percent of steel
cost increases were passed on to customers in the third quarter of 2004, and that
unrecovered steel cost increases reduced net income by between $750,000 and $1.5 million.
The Company has implemented additional sales price increases in an effort to offset the
impact of steel costs increases not previously recovered through sales price increases.
Steel costs may remain unstable, but at this time it is not anticipated that further cost
increases from suppliers will be experienced in the fourth quarter of 2004.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company does not expect to earn additional profit from these sales price increases. As a
result, the Company&#146;s material cost as a percent of sales has increased,
particularly for products which are made primarily from steel. However, if steel costs
remain stable, the steel cost increases are not expected to have a significant effect on
operating profit in 2005 because they will be substantially offset by the sales price
increases which have been implemented. The carrying amount of the Company&#146;s
inventories of steel have increased substantially because of the steel cost increases and
higher quantities of steel on hand due to the increase in sales volume.  </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>RESULTS OF OPERATIONS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information
relating to segments follows <I>(in thousands)</I>:  </FONT></P>






<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th colspan=4><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <th colspan=5><font face="Times New Roman, Times, Serif" size=1>Nine Months
      Ended<br>
      September 30, </font>
      <hr width=100% size=1 NOSHADE>
    </th>
    <th>&nbsp;</th>
    <th colspan=5><font face="Times New Roman, Times, Serif" size=1>Three Months
      Ended<br>
      September 30, </font>
      <hr width=100% size=1 NOSHADE>
    </th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <th colspan=4><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2004 </font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2003 </font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2004 </font></th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2003 </font></th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td width=5% align=LEFT>&nbsp;</td>
    <td colspan="14" align=LEFT>
      <hr width=100% size=1 NOSHADE>
    </td>
    <td width=2% align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td width=5% align=LEFT>&nbsp;</td>
    <td width=40% align=LEFT><font face="Times New Roman, Times, Serif" size=2>Net
      sales: </font></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=4% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td width=4% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td width=4% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td width=4% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2> </font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RV
      segment </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 262,856 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 165,010 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 95,885 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 59,296 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MH
      segment </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>135,684 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>101,334 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>52,945 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>36,811 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=4></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 398,540 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 266,344 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 148,830 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 96,107 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=4></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td align=RIGHT>&nbsp;</td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Operating
      profit: </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RV
      segment </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 26,598 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 19,392 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 8,333 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 7,976 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MH
      segment </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>15,498 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>11,219 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>6,441 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>4,740 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=4></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
      segments operating profit </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 42,096 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 30,611 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 14,774 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 12,716 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Amortization
      of intangibles </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(753 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(571 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(287 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(196 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Corporate
      and other </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(4,145 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(3,016 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(1,459 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>(1,030 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Other income </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>428 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>&#151; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=4></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=1>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating
      profit </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 37,626 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 27,024 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 13,028 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 11,490 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr>
    <td colspan=4></td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td align=RIGHT>&nbsp;</td>
    <td colspan=3 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td colspan=2 align=RIGHT>
      <hr NOSHADE color=#808080 size=2>
    </td>
    <td align=RIGHT>&nbsp;</td>
  </tr>
</table>
<BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15 </FONT></P>




<HR SIZE=5 COLOR=GRAY NOSHADE>

<P STYLE="page-break-after:always">
</P>
<PAGE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>DREW INDUSTRIES
INCORPORATED <BR>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF <BR>FINANCIAL CONDITION AND RESULTS
OF OPERATIONS <BR></B>(Continued) </FONT></P>
<P ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Consolidated Highlights</I></FONT> </P>
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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On
May 4, 2004, the Company completed the acquisition of California-based Zieman
Manufacturing Company (&#147;Zieman&#148;), a manufacturer of a variety of specialty
trailers (trailers for equipment hauling, boats, personal watercraft and snowmobiles),
and chassis for RVs and manufactured homes, with sales of approximately $42 million in
2003. The acquisition was immediately accretive to the Company&#146;s earnings per share,
adding approximately $.05 per share in the five months since it was acquired. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net
sales for the third quarter of 2004 were up 55 percent compared to the third quarter of
2003, or approximately 40 percent excluding sales price increases. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net
income for the current quarter, of $7.5 million, was 14 percent higher than in the third
quarter last year. Net income did not increase as rapidly as net sales for several
reasons, including: </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149;</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Steel
prices continued to rise in the third quarter of 2004, and sales price increases did not
fully offset such cost increases. Additional sales price increases have recently been
implemented.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149;</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Company did not earn any additional profit from the sales price increases which have been
implemented, which caused the profit margin to decline.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149;</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Steel
prices temporarily declined in the third quarter of 2003, which caused income to increase
last year. This reduced the income growth reported in the current quarter.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net
sales of the Company&#146;s MH segment increased 44 percent in the current quarter,
compared to the third quarter last year, after increasing 41 percent in the second
quarter. Organic sales growth, excluding acquisitions and sales price increases was 14
percent in the third quarter, compared to the 2 percent decline in industry-wide
wholesale shipments of manufactured homes in the current quarter. </FONT></TD>
</TR>
</TABLE>
<BR>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>RV Segment</I> </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
sales of the RV segment increased 62 percent to $96 million in the third quarter of 2004.
Excluding net sales of newly-acquired Zieman and sales price increases, organic sales
growth of this segment was approximately 31 percent compared to the third quarter of
2003, significantly greater than the 13 percent industry-wide increase in shipments of
RVs this quarter. The organic sales growth of the RV segment included an increase of 74
percent ($8 million) in sales of slide-out mechanisms and related power units and an
increase of approximately 22 percent in sales of RV chassis, which both exceeded
industry-wide growth. For the first nine months of 2004, sales excluding acquisitions
(approximately $28 million) and sales price increases (approximately $17 million)
increased 32% over the comparable period in 2003. The Company now has a very substantial
share of the market for slide-out mechanisms for towable RVs, and expects future growth
in sales of its slide-out products to come largely from slide-out products for
motorhomes, which the Company began selling in the second quarter of 2004.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
RV segment results for the third quarter also included sales by newly-acquired Zieman of
nearly $5 million of RV chassis and chassis parts and more than $6 million of specialty
trailers. In calendar 2003, Zieman had approximately $12 million in sales of RV chassis
and chassis parts, and approximately $19 million in sales of specialty trailers.  </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16 </FONT></P>




<HR SIZE=5 COLOR=GRAY NOSHADE>

<P STYLE="page-break-after:always">
</P>
<PAGE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>DREW INDUSTRIES
INCORPORATED <BR>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF <BR>FINANCIAL CONDITION AND RESULTS
OF OPERATIONS <BR></B>(Continued) </FONT> </P>


<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating
profit of the RV segment increased 37 percent to $26.6 million in the first nine months
of 2004, but increased only 4 percent to $8.3 million in the third quarter, over the
comparable periods in 2003. For the nine month period, the operating profit margin of
this segment was 10.1 percent of sales, compared to 11.8 percent in the same period last
year. For the third quarter of 2004, the operating profit margin was 8.7 percent, down
from the 13.5 percent margin achieved in the third quarter last year. The decline in the
operating profit margin of the RV segment resulted largely from continued increases in
the price of steel, and, to a lesser extent aluminum, not all of which were passed on to
customers, coupled with a temporary decline in the price of steel in the third quarter
last year.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
increase in raw material prices for the quarter aggregated approximately $11 million in
the RV segment, or nearly 21 percent of material costs of sales for the quarter. In
response to these cost increases, the Company raised its sales prices on certain of its
products. For the Company&#146;s RV segment, these sales price increases aggregated
approximately $9 million in the third quarter of 2004. The Company recently implemented
additional sales price increases to further offset the cost increases. Further, the
current quarter operating profit margin of the RV segment was reduced by about $350,000
of start-up costs related to new products.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Excluding
the impact of the sales price increases described above, labor and manufacturing overhead
costs for the current quarter declined by approximately 1.4 percent of sales, as compared
to the third quarter last year, due largely to favorable production efficiencies in the
RV segment, and the spreading of fixed production costs over a larger sales base. In
addition, group medical insurance and overtime costs declined as a percent of sales.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>MH Segment</I> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
sales of the MH segment increased 44 percent to $52.9 million in the third quarter.
Excluding net sales by newly-acquired Zieman (approximately $6 million) and sales price
increases, organic sales growth of this segment was approximately 14 percent over the
third quarter of 2003, compared to the 2 percent industry-wide decline in shipments of
manufactured homes this quarter. For the first nine months of 2004, sales excluding net
sales by Zieman (approximately $10 million) and sales price increases (approximately $7
million) increased 16% over the comparable period in 2003. Organic sales growth by this
segment resulted primarily from market share gains.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
response to the substantial increases in the cost of steel described above, and to a
lesser extent, aluminum, the Company raised its sales prices on certain of its products.
For the Company&#146;s MH segment, these sales price increases aggregated approximately
$5 million in the third quarter of 2004. The Company has now obtained price increases
from its customers that are sufficient to offset the increases in the cost of the steel
and aluminum used by this segment, and therefore, these cost increases to date are not
expected to have a significant effect on the operating profit of this segment over the
balance of 2004.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating
profit of the MH segment increased 38 percent to $15.5 million in the first nine months
of 2004, and increased 36 percent to $6.4 million in the third quarter, over the
comparable periods in 2003. For the nine month period, the operating profit margin of
this segment was 11.4 percent of sales, compared to 11.1 percent in the same period last
year. For the third quarter of 2004, the operating profit margin was 12.2 percent,
compared to the 12.9 percent margin achieved in the third quarter last year. The
operating profit margin of this segment in the third quarter was favorably impacted by
the spreading of fixed costs over a larger sales base; however, this was offset by the
inclusion of Zieman&#146;s operations, which currently have lower margins than Drew&#146;s
other operations in the MH segment, as well as the fact that raw material cost increases
were passed along to customers without full markup.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17 </FONT></P>





<HR SIZE=5 COLOR=GRAY NOSHADE>

<P STYLE="page-break-after:always">
</P>
<PAGE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>DREW INDUSTRIES
INCORPORATED <BR>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF <BR>FINANCIAL CONDITION AND RESULTS
OF OPERATIONS <BR></B>(Continued) </FONT> </P>


<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Corporate and Other</I> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate
and other expenses for the first nine months of 2004 increased $1.1 million compared to
the same period in 2003; for the third quarter corporate and other expenses increased
$0.4 million. The increase for the third quarter was largely the result of a $0.3 million
increase in consulting and audit fees related to compliance with Section 404 of
Sarbanes-Oxley, and, to a lesser extent, higher stock option expense. On a consolidated
basis, stock option expense increased $0.5 million in the first nine months of 2004, most
of which is included in segment results.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Other Income</I> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
February 2004, the Company sold certain intellectual property rights relating to a
process used to manufacture a new composite material. Simultaneously with the sale, the
Company entered into an equipment lease and a license agreement with the buyer. The lease
is still not effective since the equipment and tooling received by the Company from the
lessor is not yet operational. The Company plans to use the new composite material in the
production of certain bath products for the manufactured housing, modular housing, and
recreational vehicle industries on an exclusive, royalty-free basis. This new composite
material will enable the Company to better compete against fiberglass bath products in
these industries. The Company will also have the right to use the new composite material
on a royalty-free, non-exclusive basis to manufacture various other products for the
manufactured housing, modular housing, and recreational vehicle industries. Sales of
these new products, if any, are not expected to be significant in 2004.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
sale price for the intellectual property rights was $4.0 million, consisting of cash of
$100,000 at closing and a note of $3.9 million, payable over five years. The Company had
a minimal basis in the intellectual property sold. In 2004, the Company has received the
payments under the note of approximately $.5 million. The note bears interest at
increasing annual interest rates, and is secured by a lien on the intellectual property
rights sold, a right of offset against the lease, and a guaranty. The note is convertible
at the Company&#146;s option into an equity interest in the new venture that the buyer
has formed to promote this process. A pre-tax gain on sale of $428,000 was recorded in
the first quarter of 2004. Additional gains, if any, will be recorded as payments on the
$3.5 million balance of the note are received.  </FONT></P>


<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18</FONT></P>




<HR SIZE=5 COLOR=GRAY NOSHADE>

<P STYLE="page-break-after:always">
</P>
<PAGE>
<BR>


<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>DREW INDUSTRIES
INCORPORATED <BR>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF <BR>FINANCIAL CONDITION AND RESULTS
OF OPERATIONS <BR></B>(Continued) </FONT> </P>


<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Taxes</I> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
effective tax rate for the first nine months of 2004 was 38.8 percent as compared to 39.0
percent for the first nine months of 2003. The effective tax rate for the full year 2003
was 38.0 percent. The increase in the effective tax rate in 2004 is due in part to a
change in the composition of pre-tax income for state tax purposes.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Interest Expense, Net</I> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest
expense, net, for the nine months of 2004 remained approximately the same as in the same
period last year 2003, as lower debt levels early in the year were offset by higher debt
resulting from the acquisition of Zieman on May 4, 2004, and higher working capital
levels primarily for steel inventory and accounts receivable. Interest expense in the
third quarter of 2004 increased approximately $.1 million over the third quarter last
year, largely due to higher debt levels.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
October 18, 2004, the Company entered into a five-year interest rate swap with KeyBank
National Association with a notional amount of $20,000,000 from which it will receive
periodic payments at the 3 month LIBOR rate plus the Company&#146;s applicable spread and
make periodic payments at a fixed rate of 3.3525% plus the Company&#146;s applicable
spread, with settlement and rate reset dates every November 15, February 15, May 15 and
August 15. The notional amount of the interest rate swap decreases by $1,000,000 on each
quarterly reset date beginning February 15, 2005. The fair value of the swap is zero at
inception.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>LIQUIDITY AND CAPITAL
RESOURCES </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Statements of Cash Flows reflects the following <I>(in thousands)</I>:  </FONT></P>





<table cellpadding=0 cellspacing=0 border=0 width=600>
  <tr valign=Bottom>
    <th colspan=4><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <th colspan=5><font face="Times New Roman, Times, Serif" size=1>Nine Months
      Ended<br>
      September 30, </font>
      <hr width=100% size=1 NOSHADE>
    </th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <th colspan=4><font face="Times New Roman, Times, Serif" size=1> </font></th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2004 </font>
      <hr width=100% size=1 NOSHADE>
    </th>
    <th>&nbsp;</th>
    <th colspan=2><font face="Times New Roman, Times, Serif" size=1>2003 </font>
      <hr width=100% size=1 NOSHADE>
    </th>
    <th>&nbsp;</th>
  </tr>
  <tr valign=Bottom>
    <td width=9% align=LEFT>&nbsp;</td>
    <td width=60% align=LEFT><font face="Times New Roman, Times, Serif" size=2>Net
      cash flows (used for) provided by operating activities </font></td>
    <td width=1% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=4% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      (1,137 </font></td>
    <td width=6% align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td width=1% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td width=8% align=RIGHT><font face="Times New Roman, Times, Serif" size=2>
      28,433 </font></td>
    <td width=2% align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Net cash
      flows used for investment activities </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> (41,117 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> (7,593 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
  </tr>
  <tr valign=Bottom>
    <td align=LEFT>&nbsp;</td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>Net cash
      flows provided by (used for) financing activities </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> 36,253 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>&nbsp; </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2>$ </font></td>
    <td align=RIGHT><font face="Times New Roman, Times, Serif" size=2> (11,723 </font></td>
    <td align=LEFT><font face="Times New Roman, Times, Serif" size=2>) </font></td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Cash Flow from Operations</I> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Despite
a $6.6 million increase in income from continuing operations during the current nine
month period, net cash flows from operating activities decreased $29.6 million compared
to the same period in 2003 due to:  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a)</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
larger increase in accounts receivable for the third quarter of 2004. The
          increase in accounts receivable this year was higher than the 2003 period,
          primarily because of the increase in net sales. Days sales outstanding in
          receivables remained fairly steady at approximately 23 days compared to 21 days
          in the prior year. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19 </FONT></P>




<HR SIZE=5 COLOR=GRAY NOSHADE>

<P STYLE="page-break-after:always">
</P>
<PAGE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>DREW INDUSTRIES
INCORPORATED <BR>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF <BR>FINANCIAL CONDITION AND RESULTS
OF OPERATIONS <BR></B>(Continued) </FONT> </P>


<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>b)</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A
$35.7 million increase in inventories during the first nine months of 2004,
          compared to a $2.2 million decrease in inventories during the same period last
          year. Inventories at September 30, 2004 were $44.4 million higher than at
          September 30, 2003. Approximately $14 to $18 million of this increase is due to
          the higher cost of steel, and $7 million resulted from the acquisition of
          Zieman. The balance of the increase in inventory was primarily due to increased
          inventory needs to service the 23 percent organic increase in sales this
          quarter. In order to obtain the best steel costs, the Company strategically
          purchased steel in larger quantities throughout the first nine months of 2004,
          also contributing to the increase. In the third quarter, a program was
          implemented to reduce inventory levels, and inventory declined approximately $8
          million during the month of September 2004. Further reductions are expected in
          the fourth quarter. Despite the higher inventory levels, there was only
          approximately a 1 to 2 week supply of finished goods on hand at each of
          September 30, 2004 and 2003. The inventory decline in the first nine months of
          2003 resulted from a concerted effort by management to reduce inventories at
all           locations, as well as strategic buying of certain raw materials at December
31,           2002. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>c)</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
above items were partially offset by a $21.0 million increase in accounts
          payable, accrued expenses and other current liabilities, compared to an
increase           of $9.5 million in the prior year. Trade payables, which increased in
proportion           to the increase in inventories, are generally paid within the
discount period. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Cash Flows for Investing
Activities:</I> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash
flows used for investing activities of $41.1 million in the first nine months of 2004
included $21.4 million for the cash portion of the acquisition purchase price for Zieman.
The balance of cash flows from investing activities consists primarily of $19.8 million
of capital expenditures. Capital expenditures for the full year are expected to be $22 to
$25 million. The budgeted capital expenditures for 2004 will add a total of approximately
250,000 square feet of manufacturing space, expanding several existing facilities and
adding several new facilities.&nbsp; The expansion will significantly increase Drew&#146;s
capacity to efficiently produce vinyl windows for manufactured homes, to temper glass
used in RV windows, to produce and paint RV chassis, to produce axles for towable RVs, to
produce specialty trailers in the central United States, and to manufacture slide-out
mechanisms for motorhomes and RV leveling devices.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
acquisition of Zieman and the capital expenditures were financed primarily by borrowings
under the Company&#146;s line of credit. In addition, in October the Company borrowed
$3.9 million pursuant to an Industrial Development Bond, and $4 million pursuant to a $10
million equipment line of credit. The Company expects to borrow an additional $2 million
to $6 million in the fourth quarter of 2004, to finance capital projects.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash
flows used for investing activities for the full year 2003 were $12.4 million, consisting
of capital expenditures ($5.1 million) and two acquisitions for a combined $7.4 million.
Capital expenditures for the first nine months of 2003 were $3.9 million.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20 </FONT></P>





<HR SIZE=5 COLOR=GRAY NOSHADE>

<P STYLE="page-break-after:always">
</P>
<PAGE>
<BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>DREW INDUSTRIES
INCORPORATED <BR>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF <BR>FINANCIAL CONDITION AND RESULTS
OF OPERATIONS <BR></B>(Continued) </FONT> </P>


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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Cash Flows from Financing
Activities</I> </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash
flows used for financing activities for the first nine months of 2004 include a net
increase in debt of $34.8 million, and $1.5 million received from the exercise of
employee stock options. The increase in debt was used primarily to fund the acquisition
of Zieman, the increase in working capital, and capital expenditures.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Availability
under the Company&#146;s $55 million line of credit was $7.8 million at September 30,
2004. Borrowings under the $55 million line of credit were $44.4 at September 30, 2004
and there were $2.8 million in outstanding letters of credit also under the line of
credit. The maximum borrowing under this line of credit declines from $55 million to $50
million on October 31, 2004. Between September 30, 2004 and October 31, 2004, borrowing
under this line of credit declined by more than $6 million. Availability under the Company&#146;s
line of credit, along with anticipated cash flows from operations, is adequate to finance
the Company&#146;s working capital needs. Certain of the Companies debt agreements
contain a requirement that capital expenditures in excess of $11 million for 2004 must be
funded with new debt. In order to meet this debt covenant, in October the Company
borrowed $3.9 million pursuant to an Industrial Development Bond, and $4 million pursuant
to a $10 million equipment line of credit. The Company expects to borrow an additional $2
million to $6 million in the fourth quarter of 2004, to finance capital projects. The
Company is in compliance with all of its debt covenants and expects to remain in
compliance for the next twelve months. Certain of the Company&#146;s loan agreements
contain prepayment penalties.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
September 30, 2004, the Company had outstanding $8 million of 6.95 percent, seven year
Senior Notes. The notes originally aggregated $40 million, and repayment of these notes
is $8 million annually, of which the final payment is due in January 2005.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company is currently seeking to increase its line of credit to $60 million. In addition,
the new line of credit is expected to contain an &#147;accordion&#148; feature, which is
an understanding that the banks, while not formally committed, are inclined to increase
the $60 million line by up to $30 million upon the Company&#146;s request. The Company is
also negotiating with a lender for a $50 &#151; $60 million &#147;shelf&#148; facility,
which is an uncommitted line that the Company would seek to use to finance a significant
acquisition, should the opportunity arise.  </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CORPORATE GOVERNANCE </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company is in compliance with the new corporate governance requirements of the Securities
and Exchange Commission and the New York Stock Exchange. The Company&#146;s governance
documents and committee charters and key practices have been posted to the Company&#146;s
website (<i>www.drewindustries.com</i>) and are updated periodically. The website also
contains, or provides direct links to all SEC filings, press releases and investor
presentations. The Company has also established a toll-free hotline to report complaints
about the Company&#146;s accounting, internal controls, auditing matters or other
concerns. The toll-free hot line is (877) 373-9123.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company received notification in November 2004 from Institutional Stockholders Services,
Inc., (&#147;ISS&#148;) a Rockville, Maryland-based independent research firm that
advises institutional investors, that the Company&#146;s corporate governance policies
outranked 98.5 percent of all companies listed in the Russell 3000 index. The Company has
no business relationships with ISS.  </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>21 </FONT></P>





<HR SIZE=5 COLOR=GRAY NOSHADE>

<P STYLE="page-break-after:always">
</P>
<PAGE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>DREW INDUSTRIES
INCORPORATED <BR>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF <BR>FINANCIAL CONDITION AND RESULTS
OF OPERATIONS <BR></B>(Continued) </FONT> </P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>COMMITMENTS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
October 8, 2004, the Company entered into an agreement to purchase approximately 37 acres
of land and several buildings consisting of approximately 468,000 sq. ft. of
manufacturing and office space. The purchase price is $6.2 million, payable $0.5 million
upon signing the agreement and $2.6 million upon the current tenant vacating the
property. Both payments will be paid into escrow until the final payment of $3.1 million
is made on or about January 2, 2006 when title will pass to the Company. Until the
closing, which is subject to the completion of environmental due diligence and other
conditions, the Company will lease such property from the owner as the current tenant
vacates the property. The property is owned by a primary owner of a significant customer
of the Company, which is the current tenant.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
space will primarily be used to consolidate existing office space and manufacturing
capacity from other leased facilities, as well as to provide manufacturing capacity for
new product development.  </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CONTINGENCIES </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lippert
is a defendant in an action entitled SteelCo., Inc. vs. Lippert Components, Inc. and DOES
1 through 20, inclusive, commenced in Superior Court of the State of California, County
of San Bernardino, San Bernardino District, on July 16, 2002. On motion of Lippert, the
case was removed to the U.S. District Court, Central District of California, Riverside
Division.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plaintiff
alleges that Lippert violated certain provisions of the California Business and
Professions Code (Sec. 17000 et. seq.) by allegedly selling chassis and component parts
below Lippert&#146;s costs, engaging in acts intended to destroy competition, wrongfully
interfering with plaintiff&#146;s economic advantage, and engaging in unfair competition.
Plaintiff seeks compensatory damages of $8.2 million, treble damages, punitive damages,
costs and expenses incurred in the proceeding, and injunctive relief.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management
believes that the case has no merit, and Lippert is vigorously defending against the
allegations in the complaint. In addition, Lippert has asserted counterclaims against
Plaintiff.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Court-ordered
mediation did not result in settlement. Lippert has made a motion for partial summary
judgment to limit plaintiff&#146;s potential damages to less than approximately $100,000.
Plaintiff has made a motion for summary judgment against Lippert&#146;s counterclaims. To
date the court has made no decision on either the Company&#146;s or the Plaintiff&#146;s
motions.  </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>INFLATION </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
prices of raw materials, consisting primarily of steel, vinyl, aluminum, glass and ABS
resin are influenced by demand and other factors specific to these commodities rather
than being directly affected by inflationary pressures. Prices of certain commodities
have historically been volatile. In mid December 2003 and continuing into the third
quarter of 2004, the Company was notified by its steel suppliers of unprecedented steel
cost increases. Depending upon the type of steel purchased, steel costs are currently
double or triple the levels they were last year at this time. Steel costs appear to have
stabilized and further cost increases are not projected for the balance of 2004. In 2004,
the Company has also received cost increases from suppliers of aluminum. Since the third
quarter of 2003, the Company experienced modest increases in its labor costs related to
inflation.  </FONT></P>


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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22 </FONT></P>




<HR SIZE=5 COLOR=GRAY NOSHADE>

<P STYLE="page-break-after:always">
</P>
<PAGE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>DREW INDUSTRIES
INCORPORATED <BR>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF <BR>FINANCIAL CONDITION AND RESULTS
OF OPERATIONS <BR></B>(Continued) </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>USE OF ESTIMATES </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
preparation of these financial statements in conformity with accounting principles
generally accepted in the United States of America requires the Company to make estimates
and judgments that affect the reported amounts of assets, liabilities, revenues and
expenses, and related disclosure of contingent assets and liabilities. On an on-going
basis, the Company evaluates its estimates, including those related to product returns,
doubtful accounts, inventories, notes receivable, goodwill and other intangible assets,
income taxes, warranty obligations, insurance obligations, lease terminations and asset
retirement obligations, long-lived assets, post-retirement benefits, and contingencies
and litigation. The Company bases its estimates on historical experience and on various
other assumptions that are believed to be reasonable under the circumstances, the results
of which form the basis for making judgments about the carrying values of assets and
liabilities that are not readily apparent from other sources. Actual results may differ
from these estimates under different assumptions or conditions.  </FONT></P>




<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FORWARD LOOKING
STATEMENTS AND RISK FACTORS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Form 10-Q contains certain &#147;forward-looking statements&#148; within the meaning of
the Private Securities Litigation Reform Act of 1995 with respect to financial condition,
results of operations, business strategies, operating efficiencies or synergies,
competitive position, growth opportunities for existing products, plans and objectives of
management, markets for Drew Industries Incorporated common stock and other matters.
Statements in this Form 10-Q that are not historical facts are &#147;forward-looking
statements&#148; for the purpose of the safe harbor provided by Section 21E of the
Exchange Act and Section 27A of the Securities Act. Forward-looking statements,
including, without limitation, those relating to our future business prospects, revenues,
costs and income, wherever they occur in this Form 10-Q, are necessarily estimates
reflecting the best judgment of our senior management, at the time such statements were
made, and involve a number of risks and uncertainties that could cause actual results to
differ materially from those suggested by forward-looking statements. The Company does
not undertake to update forward-looking statements to reflect circumstances or events
that occur after the date the forward-looking statements are made. You should consider
forward-looking statements, therefore, in light of various important factors, including
those set forth in this Form 10-Q.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
are a number of factors, many of which are beyond the Company&#146;s control, which could
cause actual results and events to differ materially from those described in the
forward-looking statements. These factors include pricing pressures due to competition,
raw material costs (particularly steel, vinyl, aluminum, glass, and ABS resin),
availability of retail and wholesale financing for manufactured homes, availability and
costs of labor, inventory levels of retailers and manufacturers, levels of repossessed
manufactured homes, the financial condition of our customers, interest rates, oil prices,
and adverse weather conditions impacting retail sales. In addition, national and regional
economic conditions and consumer confidence may affect the retail sale of recreational
vehicles and manufactured homes. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23 </FONT></P>

<HR SIZE=5 COLOR=GRAY NOSHADE>

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</P>
<PAGE>
<BR>

<A NAME="A007"></A>
<!-- MARKER FORMAT-SHEET="Head Minor Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>DREW INDUSTRIES
INCORPORATED </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Item
3.&nbsp; QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK</B> </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company is exposed to market risk in the normal course of its operations due to its
purchases of certain commodities and its financing activities. Certain raw materials,
particularly steel, aluminum, vinyl, glass and ABS resins are subject to price
volatility. In mid-December 2003 and continuing into the third quarter of 2004, the
Company was notified by its steel suppliers of unprecedented steel cost increases.
Depending upon the type of steel purchased, steel costs are currently double or triple
the levels they were last year at this time. Steel costs appear to have stabilized and
further cost increases are not projected for the balance of 2004. In 2004, the Company
has also received cost increases from suppliers of aluminum.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company is exposed to changes in interest rates primarily as a result of its financing
activities. At September 30, 2004, the Company had $21.3 million of fixed rate debt.
Assuming there is a decrease of 100 basis points in the interest rate for borrowings of a
similar nature subsequent to September 30, 2004, which the Company becomes unable to
capitalize on in the short-term as a result of the structure of its fixed rate financing,
future cash flows would be approximately $213,000 lower per annum than if the fixed rate
financing could be obtained at current market rates.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
September 30, 2004, including borrowings of $44.4 million on its $55 million line of
credit, the Company had $53.4 million of variable rate debt. Assuming there is an
increase of 100 basis points in the interest rate for borrowings under these variable
rate loans subsequent to September 30, 2004, and outstanding borrowings of $53.4 million,
future cash flows would be affected by $534,000 per annum.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
October 18, 2004, the Company entered into a five-year interest rate swap with KeyBank
National Association with a notional amount of $20,000,000 from which it will receive
periodic payments at the 3 month LIBOR rate plus the Company&#146;s applicable spread and
make periodic payments at a fixed rate of 3.3525% plus the Company&#146;s applicable
spread, with settlement and rate reset dates every November 15, February 15, May 15 and
August 15. The notional amount of the interest rate swap decreases by $1,000,000 on each
reset date beginning February 15, 2005. The fair value of the swap is zero at inception.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, the Company is periodically exposed to changes in interest rates as a result of
temporary investments in money market funds; however, such investing activity is not
material to the Company&#146;s financial position, results of operations, or cash flow.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the actual change in interest rates is substantially different than 100 basis points, the
net impact of interest rate risk on the Company&#146;s cash flow may be materially
different than that disclosed above.  </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>24 </FONT></P>

<HR SIZE=5 COLOR=GRAY NOSHADE>

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</P>
<PAGE>
<BR>


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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>DREW INDUSTRIES
INCORPORATED </FONT></H1>

<A NAME="A008"></A>
<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Item
4.&nbsp; CONTROLS AND PROCEDURES</b> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)&nbsp;&nbsp;
Evaluation of Disclosure Controls and Procedures  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company maintains disclosure controls and procedures that are designed to ensure that
information required to be disclosed in the Company&#146;s Securities Exchange Act of
1934 (&#147;The Exchange Act&#148;) reports is recorded, processed, summarized and
reported within the time periods specified in the Securities and Exchange Commission&#146;s
rules and forms, and that such information is accumulated and communicated to the Company&#146;s
management, including its Chief Executive Officer and Chief Financial Officer, as
appropriate to allow timely decisions regarding required disclosure, in accordance with
the definition of &#147;disclosure controls and procedures&#148; in Rule 13a &#150; 14
(c) under the Exchange Act. In designing and evaluating the disclosure controls and
procedures, management recognized that any controls and procedures, no matter how well
designed and operated, cannot provide absolute assurance of achieving the desired control
objectives. Management considered in its evaluation the cost-benefit relationship of
possible controls and procedures.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of the end of the period covered by this quarterly report, the Company performed an
evaluation, under the supervision and with the participation of the Company&#146;s
management, including the Company&#146;s Chief Executive Officer and the Company&#146;s
Chief Financial Officer, of the effectiveness of the design and operation of the Company&#146;s
disclosure controls and procedures. Based on the foregoing, the Company&#146;s Chief
Executive Officer and Chief Financial Officer concluded that the Company&#146;s
disclosure controls and procedures were effective.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)&nbsp;&nbsp;
Changes in Internal Controls  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
were no changes in the Company&#146;s internal control over financial reporting during
the quarter ended September 30, 2004 or subsequent to the date the Company completed its
evaluation that have materially affected, or are reasonably likely to materially affect,
the Company&#146;s internal control over financial reporting.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>25 </FONT></P>


<HR SIZE=5 COLOR=GRAY NOSHADE>

<P STYLE="page-break-after:always">
</P>
<PAGE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>DREW INDUSTRIES
INCORPORATED </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PART II &#150; OTHER
INFORMATION </FONT></H1>

<A NAME="A009"></A>
<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Item
1 &#150; Legal Proceedings</b> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lippert
is a defendant in an action entitled SteelCo., Inc. vs. Lippert Components, Inc. and DOES
1 through 20, inclusive, commenced in Superior Court of the State of California, County
of San Bernardino, San Bernardino District, on July 16, 2002. On motion of Lippert, the
case was removed to the U.S. District Court, Central District of California, Riverside
Division.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plaintiff
alleges that Lippert violated certain provisions of the California Business and
Professions Code (Sec. 17000 et. seq.) by allegedly selling chassis and component parts
below Lippert&#146;s costs, engaging in acts intended to destroy competition, wrongfully
interfering with plaintiff&#146;s economic advantage, and engaging in unfair competition.
Plaintiff seeks compensatory damages of $8.2 million, treble damages, punitive damages,
costs and expenses incurred in the proceeding, and injunctive relief.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management
believes that the case has no merit, and Lippert is vigorously defending against the
allegations in the complaint. In addition, Lippert has asserted counterclaims against
Plaintiff.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Court-ordered
mediation did not result in settlement. Lippert has made a motion for partial summary
judgment to limit plaintiff&#146;s potential damages to less than approximately $100,000.
Plaintiff has made a motion for summary judgment against Lippert&#146;s counterclaims.  </FONT></P>

<A NAME="A010"></A>
<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Item
6 &#150; Exhibits</b> </FONT></P>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a)</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibits
as required by item 601 of Regulation 8-K: </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1)</FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>31.1
Certification of Chief Executive Officer pursuant to 13a-14(a) under the
          Securities Exchange Act of 1934. Exhibit 31.1 is filed herewith.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2)</FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>31.2
Certification of Chief Financial Officer pursuant to 13a-14(a) under the
          Securities Exchange Act of 1934. Exhibit 31.2 is filed herewith.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3)</FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32.1
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section           1350.
Exhibit 32.1 is filed herewith.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4)</FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32.2
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section           1350.
Exhibit 32.2 is filed herewith.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>26 </FONT></P>

<HR SIZE=5 COLOR=GRAY NOSHADE>

<P STYLE="page-break-after:always">
</P>
<PAGE>
<BR>

<A NAME="A011"></A>
<!-- MARKER FORMAT-SHEET="Head Minor Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>DREW INDUSTRIES
INCORPORATED<BR>SIGNATURES </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" 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>











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<table width=600 cellspacing=0 cellpadding=0 border=0>
  <tr valign=TOP>
    <td width=40%><font face="Times New Roman, Times, Serif" size=2></font></td>
    <td width=10%><font face="Times New Roman, Times, Serif" size=2></font></td>
    <td width=50%><font face="Times New Roman, Times, Serif" size=2>DREW INDUSTRIES
      INCORPORATED<br>
      Registrant<br>
      <br>
      <br>
      By <i>/s/ Fredric M. Zinn </i><br>
      &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<br>
      Fredric M. Zinn<br>
      Executive Vice President and<br>
      Chief Financial Officer<br>
      </font></td>
  </tr>
</table>
<BR>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Default" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>November 9, 2004 </FONT></P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27 </FONT></P>

<HR SIZE=5 COLOR=GRAY NOSHADE>


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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>2
<FILENAME>d61158_ex31-1.htm
<DESCRIPTION>CERTIFICATION OF CEO
<TEXT>
<HTML>
<HEAD>
     <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
     <!-- Project:        X:\JOBS\04-61158\d04-61158.eep                                   -->
     <!-- Control Number: 04-61158                                                         -->
     <!-- Rev Number:     1.0                                                              -->
     <!-- Client Name:    Drew Industries Incorporated                                     -->
     <!-- Project Name:   Form Type: 10-Q                                                  -->
     <!-- Firm Name:      Curran & Connors (NY)                                            -->
     <TITLE>EX.31-1</TITLE>
</HEAD>
<BODY>

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<DIV STYLE="WIDTH:600">
<BR>

<A NAME="A012"></A>
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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT 31.1 </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CERTIFICATION OF CHIEF
EXECUTIVE OFFICER PURSUANT TO 13a-14(a)<BR> UNDER THE SECURITIES EXCHANGE ACT OF 1934  </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I, Leigh J. Abrams, President and
CEO, certify that: </FONT></P>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1)</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I
have reviewed this quarterly report on Form 10-Q of Drew Industries
          Incorporated; </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2)</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" 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></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3)</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" 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></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4)</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" 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)) for the registrant and have: </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a)</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" 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></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>b)</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" 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></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>c)</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" 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; and  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5)</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" 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></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a)</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>b)</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Date: November 9, 2004<BR><BR><BR> By <I>/s/ Leigh
J. Abrams</I><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151; <BR>Leigh J. Abrams, President and CEO </FONT> </P>

<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28 </FONT></P>

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>3
<FILENAME>d61158_ex31-2.htm
<DESCRIPTION>CERTIFICATION OF CFO
<TEXT>
<HTML>
<HEAD>
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     <!-- Project:        X:\JOBS\04-61158\d04-61158.eep                                   -->
     <!-- Control Number: 04-61158                                                         -->
     <!-- Rev Number:     1.0                                                              -->
     <!-- Client Name:    Drew Industries Incorporated                                     -->
     <!-- Project Name:   Form Type: 10-Q                                                  -->
     <!-- Firm Name:      Curran & Connors (NY)                                            -->
     <TITLE>EX.31-2</TITLE>
</HEAD>
<BODY>

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<DIV STYLE="WIDTH:600">
<BR>

<A NAME="A013"></A>
<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Project" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT 31.2 </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CERTIFICATION OF CHIEF
FINANCIAL OFFICER PURSUANT TO 13a-14(a) <BR>UNDER THE SECURITIES EXCHANGE ACT OF 1934  </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I, Fredric M. Zinn, Executive Vice
President and CFO, certify that: </FONT></P>

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<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1)</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>I
have reviewed this quarterly report on Form 10-Q of Drew Industries
          Incorporated; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2)</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" 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></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3)</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" 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></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4)</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" 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)) for the registrant and have: </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 3-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a)</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" 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></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 3-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>b)</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" 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></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 3-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>c)</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" 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; and  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5)</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" 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></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 3-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a)</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 3-TNR" FSL="Project" -->
<TABLE WIDTH=600 CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>b)</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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></TD>
</TR>
</TABLE>
<BR>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Date: November 9, 2004<BR><BR><BR> By <I>/s/
Fredric M. Zinn </I><BR>&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<BR>Fredric M. Zinn, Executive Vice President and CFO </FONT> </P>


<!-- MARKER FORMAT-SHEET="Page Number Center" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>29 </FONT></P>

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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>4
<FILENAME>d61158_ex32-1.htm
<DESCRIPTION>SECTION 906 CERTIFICATION OF CEO
<TEXT>
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     <!-- Control Number: 04-61158                                                         -->
     <!-- Rev Number:     1.0                                                              -->
     <!-- Client Name:    Drew Industries Incorporated                                     -->
     <!-- Project Name:   Form Type: 10-Q                                                  -->
     <!-- Firm Name:      Curran & Connors (NY)                                            -->
     <TITLE>EX-32.1</TITLE>
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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT 32.1 </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CERTIFICATION OF CHIEF
EXECUTIVE OFFICER PURSUANT TO 18. U.S.C. <BR>SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906
OF THE<BR> SARBANES-OXLEY ACT OF 2002  </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In connection with the quarterly
report on Form 10-Q of Drew Industries Incorporated (the &#147;Company&#148;) for the
period ended September 30, 2004, as filed with the Securities and Exchange Commission on
the date hereof (the &#147;Report&#148;), Leigh J. Abrams, President and Chief Executive
Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: </FONT></P>

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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1)</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Report fully complies with the requirements of Section 13 (a) or 15 (d) of           the
Securities Exchange Act of 1934; and  </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2)</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
information contained in the Report fairly presents, in all material           respects,
the financial condition and results of operations of the Company.  </FONT></TD>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A signed original of this written
statement required by Section 906 has been provided to the Company and will be retained by
the Company and furnished to the Securities and Exchange Commission or its staff upon
request. </FONT></P>

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      <p><font face="Times New Roman, Times, Serif" size=2>By <i>/s/ Leigh J.
        Abrams </i><br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<br>
        </font><font face="Times New Roman, Times, Serif" size=2>Leigh J. Abrams<br>
        President, Chief Executive Officer and<br>
        Principal Executive Officer<br>
        November 9, 2004</font></p>
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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>30 </FONT></P>


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<TYPE>EX-32.2
<SEQUENCE>5
<FILENAME>d61158_ex32-2.htm
<DESCRIPTION>SECTION 906 CERTIFICATION OF CFO
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     <!-- Control Number: 04-61158                                                         -->
     <!-- Rev Number:     1.0                                                              -->
     <!-- Client Name:    Drew Industries Incorporated                                     -->
     <!-- Project Name:   Form Type: 10-Q                                                  -->
     <!-- Firm Name:      Curran & Connors (NY)                                            -->
     <TITLE>EX-32.2</TITLE>
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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT 32.2 </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CERTIFICATION OF CHIEF
FINANCIAL OFFICER PURSUANT TO 18. U.S.C.<BR> SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906
OF THE<BR> SARBANES-OXLEY ACT OF 2002  </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In connection with the quarterly
report on Form 10-Q of Drew Industries Incorporated (the &#147;Company&#148;) for the
period ended September 30, 2004, as filed with the Securities and Exchange Commission on
the date hereof (the &#147;Report&#148;), Fredric M. Zinn, Executive Vice President and
Chief Financial Officer of the Company, hereby certifies, pursuant to 18 U.S.C. Section
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that: </FONT></P>

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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1)</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
Report fully complies with the requirements of Section 13 (a) or 15 (d) of           the
Securities Exchange Act of 1934; and  </FONT></TD>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2)</FONT></TD>
<TD WIDTH=80%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
information contained in the Report fairly presents, in all material           respects,
the financial condition and results of operations of the Company.  </FONT></TD>
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>A signed original of this written
statement required by Section 906 has been provided to the Company and will be retained by
the Company and furnished to the Securities and Exchange Commission or its staff upon
request. </FONT></P>
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      <p><font face="Times New Roman, Times, Serif" size=2>By <i>/s/ Fredric M.
        Zinn</i><br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;&#151;<br>
        </font><font face="Times New Roman, Times, Serif" size=2>Fredric M. Zinn<br>
        Executive Vice-President, Chief Financial Officer and <br>
        Principal Financial Officer<br>
        November 9, 2004</font></p>
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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>31 </FONT></P>

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