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<SEC-DOCUMENT>0000930413-07-005072.txt : 20070608
<SEC-HEADER>0000930413-07-005072.hdr.sgml : 20070608
<ACCEPTANCE-DATETIME>20070608150331
ACCESSION NUMBER:		0000930413-07-005072
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20070430
FILED AS OF DATE:		20070608
DATE AS OF CHANGE:		20070608

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			REX STORES CORP
		CENTRAL INDEX KEY:			0000744187
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-RADIO TV & CONSUMER ELECTRONICS STORES [5731]
		IRS NUMBER:				311095548
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0131

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-09097
		FILM NUMBER:		07909444

	BUSINESS ADDRESS:	
		STREET 1:		2875 NEEDMORE RD
		CITY:			DAYTON
		STATE:			OH
		ZIP:			45414
		BUSINESS PHONE:		5132763931

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AUDIO VIDEO AFFILIATES INC
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>c48942_10-q.htm
<TEXT>

<HTML>
<HEAD>
   <TITLE> -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing</TITLE>
</HEAD>

<BODY bgcolor="#ffffff">




<P align="center">&nbsp;</P>
<hr noshade size=3>

<hr size="1" noshade>

<P align="center"><B><FONT size=4 face="serif">UNITED STATES SECURITIES AND EXCHANGE COMMISSION</FONT></B><BR>
  <B><FONT face="serif">WASHINGTON, D.C. 20549</FONT></B></P>
<hr align="center" width="300" size="1" noshade>

<P align="center"><BR>
  <BR>
  <B><FONT size=5 face="serif">FORM 10-Q</FONT></B></P>
<P align="left">
<B><FONT size=2 face="serif">(Mark One) </FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD align=left nowrap>
      <font face=WINGDINGS>x</font></TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES</FONT></B>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">EXCHANGE ACT OF 1934</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;</TD>
	<TD align=left nowrap>
&nbsp;<B><FONT size=2 face="serif">For the quarterly period ended April 30, 2007</FONT></B>
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=center nowrap>
      <B><FONT size=2 face="serif">OR</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap><font face=WINGDINGS>o</font>&nbsp;&nbsp;

	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES</FONT></B>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">EXCHANGE ACT OF 1934</FONT></B>
	</TD>
  </TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>
<B><FONT size=2 face="serif">For the transition period from __________________ to __________________ </FONT></B>
	</TD>
  </TR>
</TABLE>
<BR>
<P align="center">
<B><FONT size=2 face="serif">Commission File Number 001-09097 </FONT></B></P>
<hr align="center" width="300" size="1" noshade>
<div align="center"><BR>
    <B><FONT size=5 face="serif">REX STORES CORPORATION </FONT></B><BR>
    <B><FONT size=2 face="serif">(Exact name of registrant as specified in its charter) </FONT></B>
    <hr align="center" width="300" size="1" noshade>
</div>
<TABLE width="50%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD align=left nowrap>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Delaware</FONT></B>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap colspan=3>
<B><FONT size=2 face="serif">31-1095548</FONT></B>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<B><FONT size=2 face="serif">(State or other jurisdiction of</FONT></B>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap colspan=3>
<B><FONT size=2 face="serif">(I.R.S. Employer</FONT></B>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<B><FONT size=2 face="serif">incorporation or organization)</FONT></B>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap colspan=3>
<B><FONT size=2 face="serif">Identification Number)</FONT></B>
	</TD>
</TR>
<TR>
	<TD colspan=5>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap colspan=3>
<B><FONT size=2 face="serif">2875 Needmore Road, Dayton, Ohio</FONT></B>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<B><FONT size=2 face="serif">45414</FONT>&nbsp;&nbsp;</B>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap colspan=3>
<B><FONT size=2 face="serif">(Address of principal executive offices)</FONT></B>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<B><FONT size=2 face="serif">(Zip Code)</FONT></B>
	</TD>
</TR>
</TABLE>
<div align="center"><B><FONT size=2 face="serif"><br>
  (937) 276-3931 </FONT></B><BR>
    <B><FONT size=2 face="serif">(Registrant's telephone number, including area code) </FONT></B>
    <hr align="center" width="300" size="1" noshade>
</div>
<P align="left">
<FONT size=2 face="serif">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) No (&nbsp; ) </FONT></P>
<P align="left">
<FONT size=2 face="serif">Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of &#147;accelerated filer and large accelerated filer&#148; in Rule 12b-2 of the
Exchange Act . (Check one): Large accelerated filer ( )&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  Accelerated filer (X)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  Non- accelerated filer ( ) </FONT></P>
<P align="left">
<FONT size=2 face="serif">Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ( ) No (X) </FONT></P>
<P align="left">
<FONT size=2 face="serif">At the close of business on </FONT><FONT size=2 face="serif">June
7, 2007 the registrant had 10,607,325 shares of Common Stock, par value &#36;.01
per </FONT><FONT size=2 face="serif">share, outstanding. </FONT></P>
<hr size="1" noshade>

<hr noshade size=3>

<P align="left">&nbsp;</P>
<HR noshade width="100%" size=4>

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


<P align="center">
<FONT face="serif">REX STORES CORPORATION AND SUBSIDIARIES </FONT><BR>
<BR>
<FONT face="serif">INDEX </FONT></P>
<P align="right">
<FONT face="serif">Page</FONT></P>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr valign="bottom">
    <td align=left nowrap><FONT face="serif">PART I. </FONT></td>
    <td align=left nowrap><FONT face="serif">FINANCIAL INFORMATION </FONT></td>
    <td>&nbsp;</td>
    <td align=left nowrap>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap>&nbsp;</td>
    <td align=left nowrap>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left nowrap>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="6%" align=left nowrap><font face="serif">Item 1.</font> </td>
    <td align=left nowrap><font face="serif">Consolidated Financial Statements</font> </td>
    <td>&nbsp;</td>
    <td align=left nowrap>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="6%" align=left nowrap>&nbsp;</td>
    <td align=left nowrap>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right nowrap>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="6%" align=left nowrap>&nbsp;</td>
    <td align=left nowrap><font face="serif">Consolidated Condensed Balance Sheets</font> </td>
    <td>&nbsp;</td>
    <td align=right nowrap><font face="serif">3</font> </td>
  </tr>
  <tr valign="bottom">
    <td width="6%" align=left nowrap>&nbsp;</td>
    <td align=left nowrap><font face="serif">Consolidated Condensed Statements
        of Income</font> </td>
    <td>&nbsp;</td>
    <td align=right nowrap><font face="serif">4</font> </td>
  </tr>
  <tr valign="bottom">
    <td width="6%" align=left nowrap>&nbsp;</td>
    <td align=left nowrap><font face="serif">Consolidated Condensed Statements
        of Shareholders' Equity</font> </td>
    <td>&nbsp;</td>
    <td align=right nowrap><font face="serif">5</font> </td>
  </tr>
  <tr valign="bottom">
    <td width="6%" align=left nowrap>&nbsp;</td>
    <td align=left nowrap><font face="serif">Consolidated Condensed Statements
        of Cash Flows</font> </td>
    <td>&nbsp;</td>
    <td align=right nowrap><font face="serif">6</font> </td>
  </tr>
  <tr valign="bottom">
    <td width="6%" align=left nowrap>&nbsp;</td>
    <td align=left nowrap><font face="serif">Notes to Consolidated Condensed
        Financial Statements</font> </td>
    <td>&nbsp;</td>
    <td align=right nowrap><font face="serif">7</font> </td>
  </tr>
  <tr valign="bottom">
    <td width="6%" align=left nowrap>&nbsp;</td>
    <td align=left nowrap>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=left nowrap>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="6%" align=left nowrap><font face="serif">Item 2.</font> </td>
    <td align=left nowrap><font face="serif">Management's Discussion and Analysis
        of Financial Condition</font> </td>
    <td>&nbsp;</td>
    <td align=left nowrap>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="6%" align=left nowrap>&nbsp;</td>
    <td align=left nowrap><font face="serif">and Results of Operations</font> </td>
    <td>&nbsp;</td>
    <td align=right nowrap><font face="serif">24</font> </td>
  </tr>
  <tr valign="bottom">
    <td width="6%" align=left nowrap>&nbsp;</td>
    <td align=left nowrap>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right nowrap>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="6%" align=left nowrap><font face="serif">Item 3.</font> </td>
    <td align=left nowrap><font face="serif">Quantitative and Qualitative Disclosures
        About Market Risk</font> </td>
    <td>&nbsp;</td>
    <td align=right nowrap><font face="serif">34</font> </td>
  </tr>
  <tr valign="bottom">
    <td width="6%" align=left nowrap>&nbsp;</td>
    <td align=left nowrap>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right nowrap>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="6%" align=left nowrap><font face="serif">Item 4.</font> </td>
    <td align=left nowrap><font face="serif">Controls and Procedures</font> </td>
    <td>&nbsp;</td>
    <td align=right nowrap><font face="serif">34</font> </td>
  </tr>
  <tr>
    <td colspan=4 nowrap>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td align=left nowrap colspan=2><font face="serif">&nbsp; </font></td>
    <td>&nbsp;</td>
    <td align=left nowrap>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="6%" align=left nowrap><font face="serif">PART II.</font>&nbsp;&nbsp;</td>
    <td align=left nowrap><font face="serif">OTHER INFORMATION</font> </td>
    <td>&nbsp;</td>
    <td align=right nowrap>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="6%" align=left nowrap>&nbsp;</td>
    <td align=left nowrap>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right nowrap>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="6%" align=left nowrap><font face="serif">Item 1A.</font> </td>
    <td align=left nowrap><font face="serif">Risk Factors</font> </td>
    <td>&nbsp;</td>
    <td align=right nowrap><font face="serif">34</font> </td>
  </tr>
  <tr valign="bottom">
    <td width="6%" align=left nowrap>&nbsp;</td>
    <td align=left nowrap>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right nowrap>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="6%" align=left nowrap><font face="serif">Item 4.</font> </td>
    <td align=left nowrap><font face="serif">Submission of Matters to a Vote
        of Security Holders</font> </td>
    <td>&nbsp;</td>
    <td align=right nowrap><font face="serif">34</font> </td>
  </tr>
  <tr valign="bottom">
    <td width="6%" align=left nowrap>&nbsp;</td>
    <td align=left nowrap>&nbsp;</td>
    <td>&nbsp;</td>
    <td align=right nowrap>&nbsp;</td>
  </tr>
  <tr valign="bottom">
    <td width="6%" align=left nowrap><font face="serif">Item 6.</font> </td>
    <td align=left nowrap><font face="serif">Exhibits</font> </td>
    <td>&nbsp;</td>
    <td align=right nowrap><font face="serif">35</font> </td>
  </tr>
</table>
<BR>
<P align="center">
<FONT face="serif">2 </FONT></P>

<HR noshade width="100%" size=4>

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


<P align="center">
<B><FONT face="serif">PART I. FINANCIAL INFORMATION </FONT></B></P>
<P align="left">
<B><FONT face="serif">Item 1. </FONT></B><B><I><FONT face="serif">Financial Statements</FONT></I></B><B><FONT face="serif"> </FONT></B><BR>
<BR>
<B><FONT face="serif">REX STORES CORPORATION AND SUBSIDIARIES </FONT></B><BR>
<B><FONT face="serif">Consolidated Condensed Balance Sheets</FONT></B><BR>
<B><FONT face="serif">Unaudited </FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD align=center nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD colspan="3" align=center nowrap>
      <FONT size=2 face="serif">April 30,</FONT>
	</TD>
	<TD width="4%">&nbsp;
	</TD>
	<TD colspan="3" align=center nowrap>
      <FONT size=2 face="serif">January 31,</FONT>
	</TD>
	<TD width="4%">&nbsp;
	</TD>
	<TD align=center nowrap colspan=3>
<FONT size=2 face="serif">April 30,</FONT>
	</TD>
</TR>
<TR valign="bottom">
    <TD align=center nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align=center nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">2007</font> </div></TD>
    <TD width="4%">&nbsp;</TD>
	<TD colspan="3" align=center nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">2007</font> </div></TD>
	<TD>&nbsp;</TD>
	<TD colspan="3" align=center nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">2006</font> </div></TD>
	<TD>&nbsp;
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=2 face="serif">ASSETS</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD colspan="9" align=center nowrap>
      <FONT size=2 face="serif">(In Thousands)</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom"  bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=2 face="serif">CURRENT ASSETS:</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Cash and cash equivalents</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD width="1%" align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
	</TD>
	<TD width="5%" align=right nowrap>
<FONT size=2 face="serif">105,355</FONT>
	</TD>
	<TD width="1%" align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD width="1%" align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
	</TD>
	<TD width="5%" align=right nowrap>
<FONT size=2 face="serif">43,008</FONT>
	</TD>
	<TD width="1%" align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD width="1%" align=right nowrap>
<FONT size=2 face="serif">&#36;</FONT>
	</TD>
	<TD width="5%" align=right nowrap>
<FONT size=2 face="serif">15,081</FONT>
	</TD>
	<TD width="1%" align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom"  bgcolor="#E5FFFF">
	<TD align=left nowrap>
&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Accounts receivable, net</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">3,439</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">1,975</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">3,642</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Synthetic fuel receivable</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">5,485</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">8,838</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">3,021</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom"  bgcolor="#E5FFFF">
	<TD align=left nowrap>
&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Merchandise inventory, net</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">90,427</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">70,078</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">108,516</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Prepaid expenses and other</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">1,428</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">2,915</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">1,955</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom"  bgcolor="#E5FFFF">
	<TD align=left nowrap>
&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Future income tax benefits</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div>

	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">7,288</font> </div></TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div>

	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">9,192</font> </div></TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div>

	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">9,339</font> </div></TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Total current assets</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">213,422</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">136,006</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">141,554</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom"  bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=2 face="serif">PROPERTY AND EQUIPMENT, NET</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">74,426</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">122,769</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">123,639</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=2 face="serif">ASSETS HELD FOR SALE, NET</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">1,676</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">2,009</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">2,148</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom"  bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=2 face="serif">OTHER ASSETS</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">13,590</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">18,986</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">10,354</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=2 face="serif">GOODWILL</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">1,322</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">1,322</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">-</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom"  bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=2 face="serif">FUTURE INCOME TAX BENEFITS</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">26,290</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">26,245</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">29,671</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=2 face="serif">INVESTMENTS</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">41,936</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">35,699</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">-</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom"  bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=2 face="serif">RESTRICTED INVESTMENTS</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div>

	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">2,425</font> </div></TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div>

	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">2,406</font> </div></TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div>

	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">2,337</font> </div></TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Total assets</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap><div style="border-bottom:3px double #000000"> <font size=2 face="serif">&#36;</font> </div></TD>
	<TD align=right nowrap><div style="border-bottom:3px double #000000"> <font size=2 face="serif">375,087</font> </div></TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap><div style="border-bottom:3px double #000000"> <font size=2 face="serif">&#36;</font> </div></TD>
	<TD align=right nowrap><div style="border-bottom:3px double #000000"> <font size=2 face="serif">345,442</font> </div></TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap><div style="border-bottom:3px double #000000"> <font size=2 face="serif">&#36;</font> </div></TD>
	<TD align=right nowrap><div style="border-bottom:3px double #000000"> <font size=2 face="serif">309,703</font> </div></TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR>
	<TD colspan=13>&nbsp;

	</TD>
</TR>
<TR valign="bottom"  bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=2 face="serif">LIABILITIES AND SHAREHOLDERS' EQUITY</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT size=2 face="serif">CURRENT LIABILITIES:</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom"  bgcolor="#E5FFFF">
	<TD align=left nowrap>
&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Current portion of long-term debt</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">2,013</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>
	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">2,678</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">&#36;</FONT>
	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">2,432</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Deferred income &#150; extended warranties</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">15,322</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">15,641</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">14,549</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom"  bgcolor="#E5FFFF">
	<TD align=left nowrap>
&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Accounts payable, trade</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">45,461</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">23,254</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">25,340</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Current portion of deferred gain on sale and leaseback</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">5,420</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">101</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">-</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom"  bgcolor="#E5FFFF">
	<TD align=left nowrap>
&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Other current liabilities</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div>

	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">8,606</font> </div></TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div>

	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">10,510</font> </div></TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div>

	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">10,415</font> </div></TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Total current liabilities</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div>

	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">76,822</font> </div></TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div>

	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">52,184</font> </div></TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div>

	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">52,736</font> </div></TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom"  bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=2 face="serif">LONG-TERM LIABILITIES:</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Long-term mortgage debt</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">20,627</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">31,236</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">20,701</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom"  bgcolor="#E5FFFF">
	<TD align=left nowrap>
&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Deferred income &#150; extended warranties</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">18,677</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">19,286</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">18,036</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Deferred gain on sale and leaseback</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">6,748</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">504</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">-</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom"  bgcolor="#E5FFFF">
	<TD align=left nowrap>
&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Other</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div>

	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">940</font> </div></TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div>

	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">-</font> </div></TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div>

	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">-</font> </div></TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Total long-term liabilities</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div>

	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">46,992</font> </div></TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div>

	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">51,026</font> </div></TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div>

	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">38,737</font> </div></TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom"  bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=2 face="serif">MINORITY INTEREST IN CONSOLIDATED</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
&nbsp;<FONT size=2 face="serif">SUBSIDIARY</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">11,618</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">11,443</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">-</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom"  bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT size=2 face="serif">SHAREHOLDERS' EQUITY:</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Common stock</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">295</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">295</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">295</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom"  bgcolor="#E5FFFF">
	<TD align=left nowrap>
&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Paid-in capital</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">140,264</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">139,337</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">137,400</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Retained earnings</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">259,496</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">252,249</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>&nbsp;

	</TD>
	<TD align=right nowrap>
<FONT size=2 face="serif">242,387</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom"  bgcolor="#E5FFFF">
	<TD align=left nowrap>
&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Treasury stock</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div>

	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">(160,400</font> </div></TD>
	<TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div>

	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">(161,092</font> </div></TD>
	<TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div>

	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">(161,852</font> </div></TD>
	<TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Total shareholders' equity</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div>

	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">239,655</font> </div></TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;

	</TD>
	<TD align=right nowrap style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">230,789</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div>

	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">218,230</font> </div></TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom"  bgcolor="#E5FFFF">
	<TD align=left nowrap>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Total liabilities and shareholders' equity</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap><div style="border-bottom:3px double #000000"> <font size=2 face="serif">&#36;</font> </div></TD>
	<TD align=right nowrap><div style="border-bottom:3px double #000000"> <font size=2 face="serif">375,087</font> </div></TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left nowrap><div style="border-bottom:3px double #000000"> <font size=2 face="serif">&#36;</font> </div></TD>
	<TD align=right nowrap><div style="border-bottom:3px double #000000"> <font size=2 face="serif">345,442</font> </div></TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap><div style="border-bottom:3px double #000000"> <font size=2 face="serif">&#36;</font> </div></TD>
	<TD align=right nowrap><div style="border-bottom:3px double #000000"> <font size=2 face="serif">309,703</font> </div></TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">The accompanying notes are an integral part of these unaudited consolidated condensed financial statements.</FONT></P>
<P align="center">
<FONT face="serif">3 </FONT></P>

<HR noshade width="100%" size=4>

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


<P align="left">
<B><FONT size=2 face="serif">REX STORES CORPORATION AND SUBSIDIARIES </FONT></B><BR>
<B><FONT size=2 face="serif">Consolidated Condensed Statements Of Income </FONT></B><BR>
<B><FONT size=2 face="serif">Unaudited</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=7><FONT size=2 face="serif">Three Months
        Ended</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=7><FONT size=2 face="serif">April 30,</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align=center nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">2007</font> </div></TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=center nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">2006</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=center nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="6" align=center nowrap><FONT size=2 face="serif">(In Thousands,
        Except Per Share Amounts)</FONT></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap colspan=9>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
  </TR>
  <TR>
    <TD colspan=9>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">NET SALES AND REVENUE</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="1%" nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD width="5%" align=right nowrap><FONT size=2 face="serif">57,933</FONT> </TD>
    <TD width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%" nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD width="5%" align=right nowrap><FONT size=2 face="serif">66,049</FONT> </TD>
    <TD width="1%" align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">COST OF SALES (EXCLUDING
        DEPRECIATION)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">40,365</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">47,774</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">GROSS PROFIT</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">17,568</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">18,275</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">SELLING, GENERAL AND ADMINISTRATIVE
        EXPENSES</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(16,907</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(18,310</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">INTEREST INCOME</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1,293</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">292</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">INTEREST EXPENSE</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(165</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(401</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">LOSS ON EARLY TERMINATION
        OF DEBT</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(651</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">-</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">GAINS ON SALE OF REAL ESTATE,
        NET</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">984</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">-</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">EQUITY IN INCOME OF UNCONSOLIDATED</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">ETHANOL
        AFFILIATES</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1,110</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">-</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">INCOME FROM SYNTHETIC FUEL
        INVESTMENTS</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">6,733</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">2,062</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">INCOME FROM CONTINUING OPERATIONS
        BEFORE</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">PROVISION
        FOR INCOME TAXES, MINORITY</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">INTEREST
        AND DISCONTINUED OPERATIONS</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">9,965</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1,918</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">PROVISION FOR INCOME TAXES</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">3,846</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">743</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">MINORITY INTEREST</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">(95</font> </div></TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">-</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">INCOME FROM CONTINUING OPERATIONS</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">6,024</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1,175</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">(LOSS) INCOME FROM DISCONTINUED
        OPERATIONS,</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">NET OF
        TAX</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(758</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">314</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">GAINS ON DISPOSAL OF DISCONTINUED
        OPERATIONS, NET</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">OF TAX</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">2,268</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">-</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">NET INCOME</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><div style="border-bottom:3px double #000000"> <font size=2 face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"> <font size=2 face="serif">7,534</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD nowrap><div style="border-bottom:3px double #000000"> <font size=2 face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"> <font size=2 face="serif">1,489</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR  bgcolor="#E5FFFF">
    <TD colspan=9>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">WEIGHTED AVERAGE SHARES OUTSTANDING
        - BASIC</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"> <font size=2 face="serif">10,468</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">10,145</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=9>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">BASIC INCOME PER SHARE FROM
        CONTINUING OPERATIONS</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.57</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.12</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">BASIC (LOSS) INCOME PER SHARE
        FROM DISCONTINUED OPERATIONS</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.07</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.03</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">BASIC INCOME PER SHARE ON
        DISPOSAL OF DISCONTINUED OPERATIONS</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">0.22</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">-</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">BASIC NET INCOME PER SHARE</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><div style="border-bottom:3px double #000000"> <font size=2 face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"> <font size=2 face="serif">0.72</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD nowrap><div style="border-bottom:3px double #000000"> <font size=2 face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"> <font size=2 face="serif">0.15</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">WEIGHTED AVERAGE SHARES OUTSTANDING
        - DILUTED</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"> <font size=2 face="serif">11,799</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"> <font size=2 face="serif">11,543</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">DILUTED INCOME PER SHARE
        FROM CONTINUING OPERATIONS</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.51</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.10</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">DILUTED (LOSS) INCOME PER
        SHARE FROM DISCONTINUED OPERATIONS</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(0.06</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">0.03</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom" >
    <TD align=left nowrap><FONT size=2 face="serif">DILUTED INCOME PER SHARE
        ON DISPOSAL OF DISCONTINUED OPERATIONS</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">0.19</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font size=2 face="serif">-</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">DILUTED NET INCOME PER SHARE</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><div style="border-bottom:3px double #000000"> <font size=2 face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"> <font size=2 face="serif">0.64</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD nowrap><div style="border-bottom:3px double #000000"> <font size=2 face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"> <font size=2 face="serif">0.13</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">The accompanying notes are an integral part of these unaudited consolidated condensed financial statements.</FONT></P>
<P align="center">
<FONT face="serif">4 </FONT></P>

<HR noshade width="100%" size=4>

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


<P align="left">
<B><FONT face="serif">REX STORES CORPORATION AND SUBSIDIARIES </FONT></B><BR>
<B><FONT face="serif">Consolidated Condensed Statements Of Shareholders&#146; Equity </FONT></B><BR>
<B><FONT face="serif">Unaudited </FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=center nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=4><FONT size=2 face="serif">Common Shares</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap>&nbsp;</TD>
    <TD align=center nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap>&nbsp;</TD>
    <TD align=center nowrap>&nbsp;</TD>
    <TD align=center nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap>&nbsp;</TD>
    <TD align=center nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap>&nbsp;</TD>
    <TD align=center nowrap>&nbsp;</TD>
    <TD align=center nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=3><FONT size=2 face="serif">Total</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=center nowrap>&nbsp;</TD>
    <TD><div style="border-bottom:1px solid #000000"></div></TD>
    <TD align=center nowrap colspan=4><div style="border-bottom:1px solid #000000"><font size=2 face="serif">Issued</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align=center><div style="border-bottom:1px solid #000000"><font size=2 face="serif">Treasury</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=2><FONT size=2 face="serif">Paid-in</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=3><FONT size=2 face="serif">Retained</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=3><FONT size=2 face="serif">Shareholders</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=center nowrap>&nbsp;</TD>
    <TD><div style="border-bottom:1px solid #000000"></div></TD>
    <TD align=center nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">Shares</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=2><div style="border-bottom:1px solid #000000"><font size=2 face="serif">Amount</font> </div></TD>
    <TD align=center>&nbsp;</TD>
    <TD colspan="3" align=center><div style="border-bottom:1px solid #000000"><font size=2 face="serif">Shares</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=3><div style="border-bottom:1px solid #000000"><font size=2 face="serif">Amount</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=2><div style="border-bottom:1px solid #000000"><font size=2 face="serif">Capital</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=3><div style="border-bottom:1px solid #000000"><font size=2 face="serif">Earnings</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=3><div style="border-bottom:1px solid #000000"><font size=2 face="serif">Equity</font> </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=center nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align=center nowrap><FONT size=2 face="serif">(In Thousands)</FONT> </TD>
    <TD align=center nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=25>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">Balance at January 31, 2007</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%" align=right nowrap><FONT size=2 face="serif">29,513</FONT> </TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%" nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD width="5%" align=right nowrap><FONT size=2 face="serif">295</FONT> </TD>
    <TD width="4%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="5%" align=right nowrap><FONT size=2 face="serif">19,089</FONT> </TD>
    <TD width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%" nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD width="5%" align=right nowrap><FONT size=2 face="serif">(161,092</FONT> </TD>
    <TD width="1%" align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%" nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD width="5%" align=right nowrap><FONT size=2 face="serif">139,337</FONT> </TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%" nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD width="5%" align=right nowrap><FONT size=2 face="serif">252,249</FONT> </TD>
    <TD width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%" nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD width="5%" align=right nowrap><FONT size=2 face="serif">230,789</FONT> </TD>
    <TD width="1%" align=left nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=25>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">Net income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">7,534</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">7,534</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=25>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">Cumulative effect of</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">adopting
        FIN 48</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(287</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(287</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR>
    <TD colspan=25>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">Stock based compensation</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">364</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">364</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=25>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">Stock options exercised</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E5FFFF">
    <TD nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">and related tax effects</FONT> </TD>
    <TD><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">4</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">(80</font> </div></TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">692</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">563</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">1,255</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=25>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">Balance at April 30, 2007</FONT> </TD>
    <TD><div style="border-bottom:3px double #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font size=2 face="serif">29,517</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD nowrap><div style="border-bottom:3px double #000000"><font size=2 face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font size=2 face="serif">295</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD><div style="border-bottom:3px double #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font size=2 face="serif">19,009</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap><div style="border-bottom:3px double #000000"><font size=2 face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font size=2 face="serif">(160,400</font> </div></TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><div style="border-bottom:3px double #000000"><font size=2 face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font size=2 face="serif">140,264</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD nowrap><div style="border-bottom:3px double #000000"><font size=2 face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font size=2 face="serif">259,496</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap><div style="border-bottom:3px double #000000"><font size=2 face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font size=2 face="serif">239,655</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=25>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=25>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=center nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=4><FONT size=2 face="serif">Common Shares</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap>&nbsp;</TD>
    <TD align=center nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap>&nbsp;</TD>
    <TD align=center nowrap>&nbsp;</TD>
    <TD align=center nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap>&nbsp;</TD>
    <TD align=center nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap>&nbsp;</TD>
    <TD align=center nowrap>&nbsp;</TD>
    <TD align=center nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=3><FONT size=2 face="serif">Total</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=center nowrap>&nbsp;</TD>
    <TD><div style="border-bottom:1px solid #000000"></div></TD>
    <TD align=center nowrap colspan=4><div style="border-bottom:1px solid #000000"><font size=2 face="serif">Issued</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD colspan="7" align=center><div style="border-bottom:1px solid #000000"><font size=2 face="serif">Treasury</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=2><FONT size=2 face="serif">Paid-in</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=3><FONT size=2 face="serif">Retained</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=3><FONT size=2 face="serif">Shareholders</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=center nowrap>&nbsp;</TD>
    <TD><div style="border-bottom:1px solid #000000"></div></TD>
    <TD align=center nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">Shares</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=2><div style="border-bottom:1px solid #000000"><font size=2 face="serif">Amount</font> </div></TD>
    <TD align=center>&nbsp;</TD>
    <TD colspan="3" align=center><div style="border-bottom:1px solid #000000"><font size=2 face="serif">Shares</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=3><div style="border-bottom:1px solid #000000"><font size=2 face="serif">Amount</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=2><div style="border-bottom:1px solid #000000"><font size=2 face="serif">Capital</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=3><div style="border-bottom:1px solid #000000"><font size=2 face="serif">Earnings</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=3><div style="border-bottom:1px solid #000000"><font size=2 face="serif">Equity</font> </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=center nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="22" align=center nowrap><FONT size=2 face="serif">(In Thousands)</FONT> </TD>
    <TD align=center nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=25>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">Balance at January 31, 2006</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">29,390</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">294</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">19,289</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">(162,762</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">135,775</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">240,898</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">214,205</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=25>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">Net income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1,489</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1,489</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=25>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">Stock based compensation</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">566</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">566</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=25>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">Stock options exercised</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E5FFFF">
    <TD nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">and related tax effects</FONT> </TD>
    <TD><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">74</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">1</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">(108</font> </div></TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">910</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">1,059</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">1,970</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=25>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">Balance at April 30, 2006</FONT> </TD>
    <TD><div style="border-bottom:3px double #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font size=2 face="serif">29,464</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD nowrap><div style="border-bottom:3px double #000000"><font size=2 face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font size=2 face="serif">295</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD><div style="border-bottom:3px double #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font size=2 face="serif">19,181</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap><div style="border-bottom:3px double #000000"><font size=2 face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font size=2 face="serif">(161,852</font> </div></TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><div style="border-bottom:3px double #000000"><font size=2 face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font size=2 face="serif">137,400</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD nowrap><div style="border-bottom:3px double #000000"><font size=2 face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font size=2 face="serif">242,387</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap><div style="border-bottom:3px double #000000"><font size=2 face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font size=2 face="serif">218,230</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<P align="center">
<FONT face="serif">The accompanying notes are an integral part of these unaudited consolidated condensed financial statements. </FONT></P>
<P align="center">
<FONT face="serif">5 </FONT></P>

<HR noshade width="100%" size=4>

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


<P align="left">
<B><FONT face="serif">REX STORES CORPORATION AND SUBSIDIARIES </FONT></B><BR>
<B><FONT face="serif">Consolidated Condensed Statements Of Cash Flows </FONT></B><BR>
<B><FONT face="serif">Unaudited</FONT></B><FONT face="serif">  </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=center nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=7><FONT size=2 face="serif">Three Months
        Ended</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=center nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=7><div style="border-bottom:1px solid #000000"><font size=2 face="serif">April
          30,</font> </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=center nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align=center nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">2007</font> </div></TD>
    <TD width="4%">&nbsp;</TD>
    <TD colspan="3" align=center nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">2006</font> </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=center nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=7><FONT size=2 face="serif">(In Thousands)</FONT> </TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">CASH FLOWS FROM OPERATING
        ACTIVITIES:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">Net income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">7,534</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT size=2 face="serif">1,489</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">Adjustments to reconcile
        net income to net cash used in operating activities:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Depreciation
        and amortization</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">721</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">985</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Stock based
        compensation expense</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">364</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">566</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Impairment
        charges</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">65</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">85</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Capitalized
        interest</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(499</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">-</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Income
        from equity method investments</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(1,110</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">-</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Minority
        interest</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">175</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">-</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Income
        from synthetic fuel investments</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(6,733</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(2,062</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(Gain)
        loss on disposal of real estate and property and equipment</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(4,536</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Dividends
        received from equity method investees</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">175</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">-</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Deferred
        income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(955</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">198</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Loss on
        early termination of debt</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">620</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">-</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Excess
        tax benefits from stock option exercises</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(19</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(22</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Deferred
        income tax</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1,859</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">382</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">Changes in assets and liabilities:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Accounts
        receivable</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(1,464</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(185</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Merchandise
        inventory</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(20,349</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(11,145</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Prepaid
        expenses and other</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">867</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">913</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Other long
        term assets</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">396</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(303</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Accounts
        payable, trade</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">18,207</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">6,211</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Other current
        liabilities</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">(1,251</font> </div></TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">(3,172</font> </div></TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">NET CASH USED IN OPERATING
        ACTIVITIES</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">(5,933</font> </div></TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">(6,056</font> </div></TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR>
    <TD colspan=9>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">CASH FLOWS FROM INVESTING
        ACTIVITIES:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Capital
        expenditures</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(9,063</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(129</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Proceeds
        from sale of synthetic fuel investments</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">10,086</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">722</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Proceeds
        from sale of real estate and property and equipment</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">77,276</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">10</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Restricted
        investments</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">(19</font> </div></TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">(19</font> </div></TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">NET CASH PROVIDED BY INVESTING
        ACTIVITIES</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">78,280</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">584</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=9>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">CASH FLOWS FROM FINANCING
        ACTIVITIES:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Payments
        of long-term debt</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(16,258</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(718</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Proceeds
        from long-term debt</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">4,984</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap><div align="right"><FONT size=2 face="serif">-</FONT> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Stock options
        exercised</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1,255</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">1,153</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Excess
        tax benefits from stock option exercises</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">19</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">22</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">NET CASH (USED IN) PROVIDED
        BY FINANCING ACTIVITIES</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">(10,000</font> </div></TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">457</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=9>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">NET INCREASE (DECREASE) IN
        CASH AND CASH EQUIVALENTS</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">62,347</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT size=2 face="serif">(5,015</FONT> </TD>
    <TD align=left nowrap><FONT size=2 face="serif">)</FONT> </TD>
  </TR>
  <TR>
    <TD colspan=9>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT size=2 face="serif">CASH AND CASH EQUIVALENTS,
        BEGINNING OF PERIOD</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">43,008</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font size=2 face="serif">20,096</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT size=2 face="serif">CASH AND CASH EQUIVALENTS,
        END OF PERIOD</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="1%" nowrap><div style="border-bottom:3px double #000000"><font size=2 face="serif">&#36;</font> </div></TD>
    <TD width="5%" align=right nowrap><div style="border-bottom:3px double #000000"><font size=2 face="serif">105,355</font> </div></TD>
    <TD width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%" nowrap><div style="border-bottom:3px double #000000"><font size=2 face="serif">&#36;</font> </div></TD>
    <TD width="5%" align=right nowrap><div style="border-bottom:3px double #000000"><font size=2 face="serif">15,081</font> </div></TD>
    <TD width="1%" align=left nowrap>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">The accompanying notes are an integral part of these unaudited consolidated condensed financial statements. </FONT></P>
<P align="center">
<FONT face="serif">6 </FONT></P>

<HR noshade width="100%" size=4>

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


<P align="center">
<B><FONT face="serif">REX STORES CORPORATION AND SUBSIDIARIES </FONT></B><BR>
<BR>
<B><FONT face="serif">NOTES TO UNAUDITED CONSOLIDATED CONDENSED FINANCIAL STATEMENTS </FONT></B><BR>
<B><FONT size=2 face="serif">April 30, 2007 </FONT></B></P>
<P align="left">
<B><FONT face="serif">Note 1. </FONT></B><B><I><FONT face="serif">Consolidated Condensed Financial Statements</FONT></I></B><FONT face="serif"> </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The consolidated condensed financial statements included in this report have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange
Commission and include, in the opinion of management, all adjustments necessary to state fairly the information set forth therein. Any such adjustments were of a normal recurring nature. Certain information and footnote disclosures normally included
in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to
make the information presented not misleading. Financial information as of January 31, 2007 included in these financial statements has been derived from the audited consolidated financial statements included in the Company&#146;s Annual Report on
Form 10-K for the year ended January 31, 2007 (fiscal year 2006). It is suggested that these unaudited consolidated condensed financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in
the Company's Annual Report on Form 10-K for the year ended January 31, 2007. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the year. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Basis of Consolidation &#150; The consolidated condensed financial statements in this report include the operating results and financial position of REX Stores Corporation and its wholly-owned
subsidiaries and all variable interest entities where the Company has been determined to be the primary beneficiary. Levelland/Hockley County Ethanol, LLC (&#147;Levelland/Hockley&#148;) qualifies as a Variable Interest Entity (&#147;VIE&#148;), but
not a Special Purpose Entity under FASB Interpretation No. 46R (&#147;FIN 46R&#148;), &#147;Consolidation of Variable Interest Entities&#148;. The Company is the primary beneficiary of Levelland/Hockley, and in accordance with FIN 46R, the Company
consolidated Levelland/Hockley effective with the third quarter of fiscal year 2006. The Company includes the results of operations of Levelland/Hockley in its Consolidated Condensed Statement of Income on a delayed basis of one month. </FONT></P>
<P align="left">
<B><FONT face="serif">Note 2. </FONT></B><B><I><FONT face="serif">Reclassifications </FONT></I></B></P>
<P align="left">
<B><I><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></I></B><FONT face="serif">The Company reclassified &#36;10.2 million and &#36;9.6 million of prepaid commissions from current and long term portion of deferred income on extended warranties to other assets at
January 31, 2007 and April 30, 2006, respectively, to conform to current year presentation. </FONT></P>
<P align="left">
<B><FONT face="serif">Note 3. </FONT></B><B><I><FONT face="serif">Accounting Policies </FONT></I></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"> The interim consolidated condensed financial statements have been prepared in accordance with the accounting policies described in the notes to the consolidated financial statements included in the Company's 2006 Annual Report
on Form 10-K. While management believes that the procedures followed in the preparation of interim financial information are reasonable, the accuracy of some estimated amounts is dependent upon facts that will exist or calculations that will be
</FONT></P>
<P align="center">
<FONT face="serif">7 </FONT></P>

<HR noshade width="100%" size=4>

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


<P align="left">
<FONT face="serif">accomplished at fiscal year end. Examples of such estimates include management bonuses and income from synthetic fuel limited partnership sales and the provision for income taxes. Any adjustments pursuant to such estimates during
the quarter were of a normal recurring nature. Actual results could differ from those estimates. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The following table reflects the approximate percent of net sales for each major product group for the following periods: </FONT></P>
<TABLE width="50%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap colspan=5>
<FONT face="serif">Three Months Ended</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center nowrap colspan=5><div style="border-bottom:1px solid #000000"> <font face="serif">April
    30,</font> </div></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
      <u><FONT face="serif">Product Category</FONT>
	  </u></TD>
	<TD>&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap><div style="border-bottom:1px solid #000000"> <font face="serif">2007</font> </div></TD>
	<TD>&nbsp;
	</TD>
	<TD colspan="2" align=center nowrap><div style="border-bottom:1px solid #000000"> <font face="serif">2006</font> </div></TD>
  </TR>
<TR valign="bottom"  bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT face="serif">Televisions</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">52.4</FONT>
	</TD>
	<TD align=left nowrap>
<FONT face="serif">%</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">56.4</FONT>
	</TD>
	<TD align=left nowrap>
<FONT face="serif">%</FONT>
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT face="serif">Appliances</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">29.8</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">23.2</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom"  bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT face="serif">Audio</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">5.6</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">8.5</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT face="serif">Video</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">2.6</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">3.6</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom"  bgcolor="#E5FFFF">
	<TD align=left nowrap>
<FONT face="serif">Extended warranties</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">5.4</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap>
<FONT face="serif">3.9</FONT>
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT face="serif">Other</FONT>
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font face="serif">4.2</font> </div></TD>
	<TD align=left nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div>

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font face="serif">4.4</font> </div></TD>
	<TD align=left nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div>

	</TD>
</TR>
<TR valign="bottom"  bgcolor="#E5FFFF">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font face="serif">100.0</font> </div></TD>
	<TD align=left nowrap><div style="border-bottom:1px solid #000000"> <font face="serif">%</font> </div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right nowrap><div style="border-bottom:1px solid #000000"> <font face="serif">100.0</font> </div></TD>
	<TD align=left nowrap><div style="border-bottom:1px solid #000000"> <font face="serif">%</font> </div></TD>
</TR>
</TABLE>
<BR>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Vendors often fund, up front, certain advertising costs and exposure to general changes in pricing to customers due to technological change. Allowances are deferred as received from vendors and recognized into income as an offset
to the cost of merchandise sold when the related product is sold or expense incurred. Advertising costs are expensed as incurred. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Company&#146;s policy is to exclude taxes assessed by a governmental authority that are directly imposed on a revenue-producing transaction from revenue on a net reporting basis. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Company recognizes income from synthetic fuel partnership sales as production is completed and collectibility of receipts is reasonably assured. The Company is paid for actual tax credits earned as the synthetic fuel is
produced with the exception of production at the Pine Mountain (Gillette) facility. The Company estimates the impact of oil prices and the likelihood of any phase out of Section 29/45K credits and the resulting reduction of synthetic fuel income
quarterly. See Note 11 for a further discussion of synthetic fuel partnership sales. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Cost of sales includes the cost of merchandise (net of vendor allowances), markdowns and inventory shrink, receiving, warehousing and freight charges to deliver merchandise to retail stores, service repair bills as well as cash
discounts and rebates. The Company classifies purchasing costs as selling, general and administrative expenses. As a result of this classification, the Company&#146;s gross margins may not be comparable to those of other retailers that include costs
related to their distribution network in selling, general and administrative expense. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Company includes stores expenses (such as payroll and occupancy costs), advertising, purchasing, depreciation, insurance and overhead costs in selling, general and administrative expenses.</FONT></P>
<P align="center">
<FONT face="serif">8 </FONT></P>

<HR noshade width="100%" size=4>

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


<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Interest expense of &#36;165,000 for the quarter ended April 30, 2007 is net of approximately &#36;499,000 of interest capitalized. No interest was capitalized in the quarter ended April 30, 2006. Cash paid for interest for the
quarter ended</FONT><FONT face="serif"> </FONT><FONT face="serif">April 30, 2007 and 2006 was approximately &#36;734,000 and &#36;490,000, respectively.</FONT><FONT face="serif"> </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Company applies an effective tax rate to interim periods that is consistent with the Company&#146;s estimated annual tax rate. The Company provides for deferred tax liabilities and assets for the future tax consequences
attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. The Company provides for a valuation allowance if, based
on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company paid income taxes of approximately &#36;107,000 and &#36;0 for the quarter ended April 30, 2007 and 2006,
respectively. See Note 13 for a discussion of the adoption of FIN 48. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Restricted investments, which are principally marketable debt securities of a federal government agency, are stated at cost plus accrued interest, which approximates market. Restricted investments at
April 30, 2007 and 2006 are required by two states to cover possible future claims under product service contracts. In accordance with SFAS No. 115, &#147;Accounting for Certain Investments in Debt and Equity Securities&#148; (&#147;SFAS 115&#148;),
the Company has classified the investments as held-to-maturity. The investments had maturity dates of less than one year at April 30, 2007 and 2006. The Company has the intent and ability to hold these securities to maturity. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">From time to time, in advance of making an investment in debt or equity securities of investees, such as the contingent investments the Company has in ethanol entities, the Company may enter into a
commitment for such investment which is contingent upon future events occurring, including but not limited to, the investee raising additional financing and/or equity. These commitments may be backed by letters of credit or other means as mutually
agreed to by the Company and the investee. Generally, because commitments are contingently exercisable and represent the potential acquisition of a minority position in the investee, the Company believes that it is not the primary beneficiary of the
investee under the guidance in FASB Interpretation Number 46R (&#147;FIN 46R&#148;). When, and if the commitment is exercised and the Company makes its investment, it is required to re-evaluate whether it is the primary beneficiary under the
guidance in FIN 46R. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The method of accounting applied to long-term investments, whether consolidated, equity or cost, involves an evaluation of the significant terms of each investment that explicitly grant or suggest evidence of control or influence
over the operations of the investee and also includes the identification of any variable interests in which the Company is the primary beneficiary (see Note 6 for a further discussion of the acquisition of Levelland/Hockley). Investments in
businesses that the Company does not control, but has the ability to exercise significant influence over operating and financial matters, are accounted for using the equity method. Investments in which the Company does not have the ability to
exercise significant influence over operating and financial matters are accounted for using the cost method.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Investments in debt securities are considered &#147;held to maturity&#148;, &#147;available for sale&#148;, or &#147;trading securities&#148; under SFAS 115. Under SFAS 115, held to maturity
securities are required to be carried at their cost; while available-for-sale securities are required to be carried at their fair value, </FONT></P>
<P align="center">
<FONT face="serif">9 </FONT></P>

<HR noshade width="100%" size=4>

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


<P align="left">
<FONT face="serif">with unrealized gains and losses, net of income taxes, that are considered temporary in nature recorded in accumulated other comprehensive income (loss) in the accompanying consolidated balance sheets. The fair values of
investments in debt securities are determined based upon market quotations and various valuation techniques, including discounted cash flow analysis. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Company periodically evaluates its investments for impairment due to declines in market value considered to be other than temporary. Such impairment evaluations include, in addition to persistent,
declining market prices, general economic and company-specific evaluations. If the Company determines that a decline in market value is other than temporary, then a charge to earnings is recorded in investment and other income (expense), net in the
accompanying consolidated income statements for all or a portion of the unrealized loss, and a new cost basis in the investment is established.</FONT></P>
<P align="left">
<B><FONT face="serif">Recently Issued Accounting Standards</FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">In July 2006, the Financial Accounting Standards Board (&#147;FASB&#148;) issued FASB Interpretation No. 48 (&#147;FIN 48&#148;) &#147;Accounting for Uncertainty in Income Taxes&#148; which prescribes a recognition threshold and
measurement process for recording in the financial statements uncertain tax positions taken or expected to be taken in a tax return. Additionally, FIN 48 provides guidance on the derecognition, classification, accounting in interim periods and
disclosure requirements for uncertain tax positions. The Company adopted the provision of FIN 48 at the beginning of the first quarter of fiscal year 2007, and the details of the adoption of FIN 48 are described in Note&nbsp;13. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">In September 2006, the FASB issued SFAS No. 157, &#147;Fair Value Measurements&#148;, (&#147;SFAS 157&#148;). SFAS 157 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted
accounting principles, and expands disclosures about fair value measurements. This statement does not require any new fair value measurements; rather, it applies to other accounting pronouncements that require or permit fair value measurements. The
provisions of this statement are to be applied prospectively as of the beginning of the fiscal year in which this statement initially applies, with any transition adjustment recognized as a cumulative-effect adjustment to the opening balance of
retained earnings. The provisions of SFAS 157 are effective for fiscal years beginning after November 15, 2007. The Company anticipates adopting this standard as of February 1, 2008. The Company has not determined the effect, if any, the adoption of
this statement will have on its financial condition or results of operations. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">In February 2007, the FASB issued SFAS No. 159, &#147;The Fair Value Option for Financial Assets and Financial Liabilities&#148;, (&#147;SFAS 159&#148;). SFAS 159 permits all entities to choose to measure eligible items at fair
value at specified election dates. A business entity shall report unrealized gains and losses on items for which the fair value option has been elected in earnings at each subsequent reporting date. This statement is effective as of the beginning of
an entity&#146;s first fiscal year that begins after November 15, 2007. The Company has not determined the effect, if any, the adoption of this statement will have on its financial condition or results of operations. </FONT></P>
<P align="center">
<FONT face="serif">10 </FONT></P>

<HR noshade width="100%" size=4>

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


<P align="left">
<B><FONT face="serif">Note 4. </FONT></B><B><I><FONT face="serif">Accounting Changes </FONT></I></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">During the fourth quarter of fiscal year 2006, the Company changed its method of accounting for the inventory of an acquired subsidiary, Kelly &amp; Cohen Appliances, Inc.
(&#147;K&amp;C&#148;). K&amp;C inventory was historically valued at the lower of cost or market using the last-in, first-out (&#147;LIFO&#148;) method. The Company changed its method of accounting for the inventory of K&amp;C from the LIFO method to
the first-in, first-out (&#147;FIFO&#148;) method. The Company believes the FIFO method is preferable because it conforms all of the Company&#146;s inventory to a single costing method and it is comparable with its major competitors. In accordance
with SFAS 154, &#147;Accounting Changes and Error Corrections&#148; (&#147;SFAS 154&#148;), the change from the LIFO method has been applied retrospectively. However, the change to the FIFO method for the K&amp;C inventory did not result in either a
current period or retrospective adjustment to any historical consolidated balance sheets, statements of income or statements of cash flow as the lower or cost or market inventory value using the LIFO method has been equivalent to the lower of cost
or market inventory value using the FIFO method for all periods presented. </FONT></P>
<P align="left">
<B><FONT face="serif">Note 5. </FONT></B><B><I><FONT face="serif">Sale and Leaseback Transaction and Other Leases</FONT></I></B><FONT face="serif"> </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">On April 30, 2007, the Company completed a transaction for the sale of 86 of its current and former store locations to KLAC REX, LLC (&#147;Klac&#148;), formerly referred to as Coventry Real Estate Investments, LLC
(&#147;Coventry&#148;) for &#36;74.5 million in cash, before selling expenses. The Company also entered into leases to leaseback 40 of the properties from Klac for initial lease terms expiring January 31, 2010, with renewal options for up to 15
additional years. Either the Company or Klac may terminate a lease after the initial six months of the initial lease term on 28 of the leases. The Company also entered into license agreements with Klac for 15 of the properties that allow the Company
to occupy the properties for up to 90 days rent free. Upon the expiration of the license period, the Company must vacate the property. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">A
pre-tax financial statement gain of &#36;3.2 million (net of expenses and losses)
resulted from this sale. Of this gain, &#36;2.2 million was classified as discontinued
operations and the remaining
&#36;1.0 million was classified as continuing operations. The Company has also
deferred &#36;11.6 million, which represents the present value of the minimum
lease payments and the gain associated with stores that the Company has continuing
 involvement with, as defined in SFAS 98, &#147;Accounting for Leases&#148;.</FONT><FONT face="serif"> The
 deferred gain will be amortized as a reduction to lease expense over the lease
 or license periods or recognized as gain on disposal at the end of the lease
 or license period. The leases have been accounted for as operating leases. Future
 minimum annual rentals on the properties leased back are
&#36;3.0 million, &#36;4.1 million and &#36;4.4 million for the fiscal years
ended January 31, 2008, 2009 and 2010, respectively, subject to earlier termination
of individual leases. </FONT></P>
<P align="center">
<FONT face="serif">11 </FONT></P>

<HR noshade width="100%" size=4>

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


<P align="left">
<FONT face="serif">The following table summarizes the components of the sale and leaseback transaction (amounts in thousands): </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Property Category</FONT> </TD>
    <TD colspan="3" align=center nowrap><FONT face="serif">Number of Properties</FONT> </TD>
    <TD width="15%" align=center>&nbsp;</TD>
    <TD colspan="3"  align=center nowrap><FONT face="serif">Deferred Gain</FONT> </TD>
    <TD  align=center nowrap>&nbsp;</TD>
    <TD align=center nowrap colspan=3><FONT face="serif">Recognized Gain</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Vacated</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">31</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD align=left nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">-</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">3,026</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Licensed</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">15</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">3,307</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(580</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif"></FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Leased until January 31, 2010</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">12</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">4,235</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(216</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Leased until January 31, 2010</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif"></FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">(6 month kickout clause)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT face="serif">28</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT face="serif">4,048</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT face="serif">986</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Total</FONT> </TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%" align=right nowrap style="border-bottom:3px double #000000;"><FONT face="serif">86</FONT> </TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%" align=left nowrap style="border-bottom:3px double #000000;"><FONT face="serif">&#36;</FONT> </TD>
    <TD width="5%" align=right nowrap style="border-bottom:3px double #000000;"><FONT face="serif">11,590</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%" nowrap style="border-bottom:3px double #000000;"><FONT face="serif">&#36;</FONT> </TD>
    <TD width="5%" align=right nowrap style="border-bottom:3px double #000000;"><FONT face="serif">3,216</FONT> </TD>
    <TD width="1%" align=left nowrap>&nbsp;</TD>
  </TR>
</TABLE>
<BR><P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">In addition to the leaseback transaction described above, the Company is committed under operating leases for certain retail store locations. The lease agreements are for varying terms through 2011
and contain renewal options for additional periods. Real estate taxes, insurance and maintenance costs are generally paid by the Company. Contingent rentals based on sales volume are not significant. Certain leases contain scheduled rent increases
and rent expense is recognized on a straight-line basis over the term of the leases. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The following table is a summary of rental activity under operating leases (amounts in thousands): </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Years Ended</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=2><FONT face="serif">Minimum</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=3><FONT face="serif">Gain</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=3><FONT face="serif">Sublease</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">January 31</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=2><FONT face="serif">Rentals</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=CENTER nowrap colspan=3><FONT face="serif">Amortization</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=3><FONT face="serif">Income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=3><FONT face="serif">Total</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Remainder of</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">January 31, 2008</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">7,132</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">(4,917</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">(221</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">1,994</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">2009</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">7,134</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(2,113</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(215</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">4,806</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">2010</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">6,134</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(2,113</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(135</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">3,886</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">2011</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">495</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(641</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(70</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(216</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">2012</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">206</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(641</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(5</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(440</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Thereafter</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT face="serif">-</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">(1,768</font> </div></TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000;"><FONT face="serif">-</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">(1,768</font> </div></TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Total</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="1%" nowrap><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD width="5%" align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">21,101</font> </div></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%" nowrap><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD width="5%" align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">(12,193</font> </div></TD>
    <TD width="1%" align=left nowrap><FONT face="serif">)</FONT> </TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%" nowrap style="border-bottom:3px double #000000;"><FONT face="serif">&#36;</FONT> </TD>
    <TD width="5%" align=right nowrap style="border-bottom:3px double #000000;"><FONT face="serif">(646</FONT> </TD>
    <TD width="1%" align=left VALIGN=MIDDLE nowrap><FONT face="serif">)</FONT> </TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%" nowrap><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD width="5%" align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">8,262</font> </div></TD>
    <TD width="1%" align=left nowrap>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<P align="center">
<FONT face="serif">12 </FONT></P>

<HR noshade width="100%" size=4>

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


<P align="left">
<B><FONT face="serif">Note 6. </FONT></B><B><I><FONT face="serif">Business Combinations</FONT></I></B><B><FONT face="serif"> </FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">On September 30, 2006, the Company acquired 47 percent of the outstanding membership units of Levelland/Hockley County Ethanol, LLC (&#147;Levelland/Hockley&#148;). The results of Levelland/Hockley&#146;s operations have been
included in the consolidated financial statements subsequent to the acquisition date. The aggregate purchase price was &#36;11.5 million, all of which was cash. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"> The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: </FONT></P>
<TABLE width="30%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">(In thousands)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=5>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Cash</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">13,165</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Accrued interest receivable</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">24</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Property, plant and equipment</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">595</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Prepaid loan fees</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">3,200</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Deposits</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">5,220</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Goodwill</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">1,322</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Total
        assets acquired</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">23,526</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Current liabilities</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(577</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Minority interest</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">(11,449</font> </div></TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Net purchase price</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">11,500</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Prepaid loan fees have an estimated useful life of 6 years. None of the goodwill is expected to be deductible for income tax purposes. Levelland/Hockley is a development stage entity that has commenced construction of an ethanol
production facility in Levelland, Texas, which will have a design capacity of 40 million gallons of ethanol annually. The purchase, along with the Company&#146;s &#36;5 million convertible secured promissory note, enables the Company to secure a
majority equity interest in Levelland/Hockley. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The unaudited financial information in the table below summarizes the combined results of operations of the Company and Levelland/Hockley, on a pro forma basis, as though the companies had been combined as of the beginning of the
period presented. The pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisitions had taken place at the beginning of the period
presented.</FONT></P>
<P align="center">
<FONT face="serif">13 </FONT></P>

<HR noshade width="100%" size=4>

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


<P align="left">
<FONT face="serif">The pro forma financial information for the period presented includes adjustments to interest income and expense and related income tax effects (in thousands, except per share data): </FONT></P>
<TABLE width="30%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=center colspan="4"><FONT face="serif">Quarter Ended</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=center nowrap>&nbsp;</TD>
    <TD align=center colspan="4"><div style="border-bottom:1px solid #000000"><font face="serif">April
          30, 2006</font> </div></TD>
  </TR>
  <TR>
    <TD colspan=5>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Net sales and revenue</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">66,049</FONT> </TD>
    <TD align=right nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Net income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">1,390</FONT> </TD>
    <TD align=right nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Basic net income per share</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">0.14</FONT> </TD>
    <TD align=right nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Diluted net income per share</FONT> </TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=left nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">0.12</FONT> </TD>
    <TD width="6%" align=right nowrap>&nbsp;</TD>
  </TR>
</TABLE>

<P align="left">
<B><FONT face="serif">Note 7. </FONT></B><B><I><FONT face="serif">Other Assets </FONT></I></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The components of other assets at April 30, 2007, January 31, 2007 and April 30, 2006 are as follows (amounts in thousands): </FONT></P>
<TABLE width="60%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=2><FONT face="serif">April 30,</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=2><FONT face="serif">January 31,</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=2><FONT face="serif">April 30,</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=2><FONT face="serif"><div style="border-bottom:1px solid #000000">2007</div></FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=2><FONT face="serif"><div style="border-bottom:1px solid #000000">2007</div></FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=2><FONT face="serif"><div style="border-bottom:1px solid #000000">2006</div></FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Prepaid loan fees</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD  nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">4,074</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD  nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">4,377</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">613</FONT> </TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Prepaid commissions</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">9,959</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">10,234</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">9,619</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Advance equity investment</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">-</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">5,000</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">-</FONT> </TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Other</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">131</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">155</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">334</font> </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Total</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">14,164</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">19,766</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">10,566</FONT> </TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Less current portion</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">574</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><FONT face="serif">&nbsp;</FONT>
    <div style="border-bottom:1px solid #000000">780</div></TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">212</font> </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Long term</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width=1% nowrap ><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD width="5%" align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">13,590</font> </div></TD>
    <TD width="15%">&nbsp;</TD>
    <TD width=1% nowrap ><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD width="5%" align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">18,986</font> </div></TD>
    <TD width="15%">&nbsp;</TD>
    <TD width=1% nowrap ><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD width="5%" align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">10,354</font> </div></TD>
  </TR>
</TABLE>

<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Advance equity investment represents a payment made to Big River Resources, LLC in January 2007 and was effective February 1, 2007; this increased the Company&#146;s ownership percentage in Big River from 4.3% to 6.9% . Prepaid
loan fees represent amounts paid to obtain mortgage debt, borrowings under the Company&#146;s line of credit and an ethanol construction loan. Such amounts are amortized as interest expense. Future amortization expense is as follows (amounts in
thousands): </FONT></P>
<TABLE width="34%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width="68%" align=left nowrap><u><FONT face="serif">Year Ended</FONT> </u></TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="4%" align=right nowrap>&nbsp;</TD>
    <TD width="21%" align=left nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=4 nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Remainder of January 31, 2008</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">574</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">January 31, 2009</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">899</FONT> </TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">January 31, 2010</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">788</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">January 31, 2011</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">644</FONT> </TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">January 31, 2012</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">591</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Thereafter</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"></div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">578</font> </div></TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Total</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">4,074</font> </div></TD>
  </TR>
</TABLE>
<BR>
<P align="left">
<FONT face="serif">Prepaid commissions represent sales commissions paid in connection with extended warranties sold by the Company&#146;s
sales staff. Such amounts are capitalized and amortized</FONT></P>
<P align="center">
<FONT face="serif">14 </FONT></P>

<HR noshade width="100%" size=4>

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


<P align="left">
<FONT face="serif">ratably over the life of the extended warranty plan sold.
Future amortization is as follows (amounts in thousands): </FONT></P>
<TABLE width="34%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width="73%" align=left nowrap><u><FONT face="serif">Year Ended</FONT> </u></TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%" align=right nowrap>&nbsp;</TD>
    <TD width="20%" align=left nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=4 nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Remainder of January 31, 2008</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">3,216</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">January 31, 2009</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">3,490</FONT> </TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">January 31, 2010</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">1,925</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">January 31, 2011</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">963</FONT> </TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">January 31, 2012</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">358</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Thereafter</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"></div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">7</font> </div></TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Total</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">9,959</font> </div></TD>
  </TR>
</TABLE>
<BR>
<P align="left">
<B><FONT face="serif">Note 8. </FONT></B><B><I><FONT face="serif">Long Term Debt </FONT></I></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Company borrowed &#36;5.0 million by obtaining one mortgage loan secured by five properties during the first quarter of fiscal year 2007. The mortgage loan bears interest at a variable
rate of LIBOR plus 1.85% (presently 7.2%) and is payable over 5 years.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Company paid off 28 mortgage loans that had a principal balance of &#36;15.6 million in connection with the sale and leaseback transaction (see Note 5). In addition, the Company incurred prepayment penalties and the write off
of prepaid loan fees, totaling &#36;0.7 million, classified as loss on early termination of debt. </FONT></P>
<P align="left">
<B><FONT face="serif">Note 9. </FONT></B><B><I><FONT face="serif">Stock Option Plans</FONT></I></B><B><FONT face="serif"> </FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Company has stock-based compensation plans under which stock options have been granted to directors, officers and key employees at the market price on the date of the grant. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">No options have been granted since fiscal 2004. The fair values of options granted were estimated as of the date of grant using a Black-Scholes option pricing model with the following weighted average assumptions used for grants
in the fiscal year ended January 31, 2005: risk-free interest rate of 4.7%, expected volatility of 65.4% and a weighted average stock option life of nine years for all years. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The total intrinsic value of options exercised during the quarters ended April 30, 2007 and 2006 was approximately &#36;0.6 million and &#36;1.8 million, respectively, resulting in tax deductions to
realize benefits of approximately &#36;0.2 million and &#36;0.8 million, respectively. The following table</FONT></P>
<P align="center">
<FONT face="serif">15 </FONT></P>

<HR noshade width="100%" size=4>

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


<P align="left">
<FONT face="serif">summarizes options granted, exercised and canceled or expired during the three months ended April</FONT><FONT face="monospace"> </FONT><FONT face="serif">30, 2007: </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=center nowrap>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align=center nowrap>&nbsp;</TD>
    <TD width="1%" align=center nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=center nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT face="serif">Weighted Average</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=2><FONT face="serif">Aggregate</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=center nowrap>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align=center nowrap>&nbsp;</TD>
    <TD width="1%" align=center nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan=2 align=center nowrap><FONT face="serif">Weighted Average </FONT></TD>
    <TD align=center nowrap>&nbsp;</TD>
    <TD align=center nowrap><FONT face="serif">Remaining</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=2><FONT face="serif">Intrinsic Value</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=center nowrap>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align=center nowrap><FONT face="serif">Shares</FONT> </TD>
    <TD width="1%" align=right nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=2><FONT face="serif">Exercise Price</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT face="serif">Contractual Term</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=2><FONT face="serif">(in thousands)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD nowrap>&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD width="1%" align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=center nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD nowrap><FONT face="serif">Outstanding at January 31, 2007</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">4,336,893</FONT> </TD>
    <TD width="1%" align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD  nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=center nowrap><FONT face="serif">8.18</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Exercised</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(84,076</FONT> </TD>
    <TD width="1%" align=left nowrap><FONT face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD  nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=center nowrap><FONT face="serif">9.83</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Forfeited</FONT> </TD>
    <TD width="1%"><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">(43,200</font> </div></TD>
    <TD width="1%" align=left nowrap><FONT face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD  nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=center nowrap><FONT face="serif">12.67</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Outstanding at April 30, 2007</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">4,209,617</FONT> </TD>
    <TD width="1%" align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD  nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=center nowrap><FONT face="serif">8.10</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT face="serif">3.5</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD  nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">36,178</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Exercisable at April 30, 2007</FONT> </TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%" align=right nowrap><FONT face="serif">3,992,453</FONT> </TD>
    <TD width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="1%"  nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD width="5%" align=center nowrap><FONT face="serif">7.76</FONT> </TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="5%" align=center nowrap><FONT face="serif">3.2</FONT> </TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%"  nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD width="5%" align=right nowrap><FONT face="serif">35,017</FONT> </TD>
  </TR>
</TABLE>

<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">At April 30, 2007, there was approximately &#36;2.4 million (pre-tax) of unrecognized compensation cost related to nonvested stock options, which is expected to be recognized over a weighted average period of 1.8 years.
</FONT></P>
<P align="left">
<B><FONT face="serif">Note 10. </FONT></B><B><I><FONT face="serif">Income Per Share from Continuing Operations</FONT></I></B><B><FONT face="serif"> </FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The following table reconciles the computation of basic and diluted net income per share from continuing operations for each period presented (in thousands, except per share amounts): </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=5><FONT face="serif">Three Months Ended</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=5><FONT face="serif">Three Months Ended</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=5><div style="border-bottom:1px solid #000000"><font face="serif">April
          30, 2007</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=5><div style="border-bottom:1px solid #000000"><font face="serif">April
          30, 2006</font> </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT face="serif">Per</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT face="serif">Per</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><div style="border-bottom:1px solid #000000"><font face="serif">Income</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><div style="border-bottom:1px solid #000000"><font face="serif">Shares</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><div style="border-bottom:1px solid #000000"><font face="serif">Share</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><div style="border-bottom:1px solid #000000"><font face="serif">Income</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><div style="border-bottom:1px solid #000000"><font face="serif">Shares</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><div style="border-bottom:1px solid #000000"><font face="serif">Share</font> </div></TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Basic income per share from</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">continuing operations</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT face="serif">$6,024</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">10,468</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><div style="border-bottom:3px double #000000"><font face="serif">$0.57</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT face="serif">$1,175</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">10,145</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><div style="border-bottom:3px double #000000">&nbsp;&nbsp;&nbsp;&nbsp;$<font face="serif">0.12</font> </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Effect of stock options</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">1,331</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap style="border-bottom:1px solid #000000;">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">1,398</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Diluted income per share from</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">continuing operations</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="6%" align=center nowrap><div style="border-bottom:3px double #000000"><font face="serif">$6,024</font> </div></TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="6%" align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">11,799</font> </div></TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="6%" align=left nowrap><div style="border-bottom:3px double #000000">&nbsp;&nbsp;&nbsp;&nbsp;<font face="serif">$0.51</font> </div></TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="6%" align=center nowrap><div style="border-bottom:3px double #000000"><font face="serif">$1,175</font> </div></TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="6%" align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">11,543</font> </div></TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="6%" align=left nowrap><div style="border-bottom:3px double #000000">&nbsp;&nbsp;&nbsp;&nbsp;<font face="serif">$0.10</font> </div></TD>
  </TR>
</TABLE>

<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">For the three months ended April 30, 2007 and 2006, a total of 274,704 shares and 481,854 shares, respectively, subject to outstanding options were not included in the common equivalent shares outstanding calculation as the
effect from these shares is antidilutive</FONT><FONT face="serif">. </FONT></P>
<P align="left">
<B><FONT face="serif">Note 11. </FONT></B><B><I><FONT face="serif">Synthetic Fuel </FONT></I></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Income from continuing operations for the first quarter of fiscal year 2007 includes approximately &#36;4.9 million of pre-tax investment income from the sales of the Company&#146;s entire partnership interest in Colona SynFuel
Limited Partnership, L.L.L.P., (Colona). The Company expects to receive payments from the three separate sales of its interests in Colona, on a quarterly basis through 2007, ranging from 74.25% to 82.5% of the federal income tax credits attributable
to the interest sold subject to certain annual limitations and production levels. During the first quarter of</FONT></P>
<P align="center">
<FONT face="serif">16 </FONT></P>

<HR noshade width="100%" size=4>

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


<P align="left">
<FONT face="serif">fiscal year 2007, the Company recorded approximately &#36;909,000 of income which relates to 2006 production and a change in the estimated Section 29/45K phase out. The 2006 production payments were based upon estimated income tax
credits per ton of coal produced. The payment was made to the Company after the Internal Revenue Service published the 2006 income tax credit per ton amount in April of 2007. During the first quarter of fiscal year 2006, the Company recorded
approximately &#36;504,000 of income which relates to a payment received for 2005 production. The 2005 production payments were based upon estimated income tax credits per ton of coal produced. The &#36;504,000 payment was made to the Company after
the Internal Revenue Service published the 2005 income tax credit per ton amount in April of 2006.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Income from continuing operations for the first quarter of fiscal year 2007 includes approximately &#36;1.9 million of pre-tax investment income from the sale of the Company&#146;s entire partnership interest in Somerset Synfuel,
L.P. (Somerset), which produces synthetic fuel. Effective October 1, 2005, the Company sold its entire ownership interest in Somerset, which owned two synthetic fuel facilities. The Company received &#36;1.2 million, net of commissions, at closing
along with a secured contingent payment note that could provide additional investment income. The Company expects to receive quarterly payments through 2007 equal to 80% of the Section 29/45K tax credits attributable to the ownership interest sold,
subject to production levels.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Company sold its entire membership interest in the limited liability company that owned a synthetic fuel facility in Gillette, Wyoming on March 30, 2004. The Company received &#36;2.8 million at the time of sale along with a
secured contingent payment note that could provide additional income. The facility resumed commercial operations during the second quarter of fiscal 2005; as such, the Company received &#36;3.5 million as a one-time payment per the terms of the
purchase agreement. In addition, the Company is eligible to receive &#36;1.50 per ton of &#147;qualified production&#148; produced by the facility and sold through 2007. The plant was subsequently sold and during the third quarter of fiscal year
2006, the Company modified its agreement with the owners and operators of the synthetic fuel facility. Based on the terms of the modified agreement, the Company currently is not able to determine the likelihood of collecting payments related to
production occurring after September 30, 2006. Thus, the Company cannot currently determine the impact and timing of income recognition, if any, related to production occurring after September 30, 2006.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">As provided by the current Internal Revenue Code, the Code Section 29/45K tax credit program is expected to continue through December 31, 2007; however, recent increases in the price of oil could limit the amount of those credits
or eliminate them altogether for 2007. This possibility is due to a provision of Section 29/45K that provides that if the average wellhead price per barrel for unregulated domestic crude oil for the year (the &#147;Annual Average Price&#148;)
exceeds a certain threshold value (the &#147;Threshold Price&#148;), the Section 29/45K tax credits are subject to phase out. For calendar year 2006, the Threshold Price was &#36;55.06 per barrel and the Phase Out Price was &#36;69.12 per barrel,
resulting in a phase out of 33% for calendar year 2006. The Threshold Price and the Phase Out Price are adjusted annually as a result of inflation and are published by the Internal Revenue Service in April of the following year.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Company cannot predict with absolute certainty the Annual Average Price for 2007. Therefore, it cannot predict whether the price of oil will have a material effect on its synthetic fuel business
after 2006. However, if during 2007 oil prices remain at historically high levels or increase, </FONT></P>
<P align="center">
<FONT face="serif">17 </FONT></P>

<HR noshade width="100%" size=4>

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


<P align="left">
<FONT face="serif">such that the Annual Average Price exceeds the Threshold Price, the Company&#146;s synthetic fuel business may be adversely affected for 2007, and, depending on the magnitude of such increases in oil prices, the adverse effect for
2007 could be material and could have an impact on the Company&#146;s synthetic fuel income. Based upon the price of oil to date and considering the NYMEX futures market, the Company estimates the tax credits would not be subject to a phase out as
of April 30, 2007. Because synthetic fuel is not economical to produce absent the associated tax credits and the fact that the Company has no control or decision involvement with production levels, the Company cannot determine the impact of possible
production reduction or elimination on the Company&#146;s financial results.</FONT><FONT face="serif"> </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Below is a table summarizing the income from the sales, net of certain expenses, of the Company&#146;s interests in synthetic fuel entities (in thousands): </FONT></P>
<TABLE width="60%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=5><FONT face="serif">Three Months Ended</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=5><div style="border-bottom:1px solid #000000"><font face="serif">April
          30,</font> </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align=center nowrap><div style="border-bottom:1px solid #000000"><font face="serif">2007</font> </div></TD>
    <TD width="10%">&nbsp;</TD>
    <TD colspan="2" align=center nowrap><div style="border-bottom:1px solid #000000"><font face="serif">2006</font> </div></TD>
  </TR>
  <TR>
    <TD colspan=7>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">February 1, 1999 Colona sale</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD  nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">1,945</FONT> </TD>
    <TD width="10%">&nbsp;</TD>
    <TD  nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">259</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">July 31, 2000 Colona sale</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">1,552</FONT> </TD>
    <TD width="10%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">473</FONT> </TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">May 31, 2001 Colona sale</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">1,379</FONT> </TD>
    <TD width="10%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">421</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">October 1, 2005 Somerset sale</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">1,857</FONT> </TD>
    <TD width="10%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">423</FONT> </TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">March 30, 2004 Gillette sale</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">-</font> </div></TD>
    <TD width="10%">&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">486</font> </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%"  nowrap><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD width="7%" align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">6,733</font> </div></TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%"  nowrap><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD width="7%" align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">2,062</font> </div></TD>
  </TR>
</TABLE>
<BR>
<P align="center">
<FONT face="serif">18 </FONT></P>

<HR noshade width="100%" size=4>

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


<P align="left">
<B><FONT face="serif"> Note 12. </FONT></B><B><I><FONT face="serif">Investments </FONT></I></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The following tables summarize investments at April 30, 2007, January 31, 2007 and 2006 (amounts in thousands): </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left nowrap colspan=4><FONT face="serif">Debt Securities April
        30, 2007</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="6%" align=left nowrap>&nbsp;</TD>
    <TD width="4%" align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan=2><FONT face="serif">Fair Market</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan=2><FONT face="serif">Carrying</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Investment</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=2><FONT face="serif">Coupon Rate</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT face="serif">Maturity</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT face="serif">Classification</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan=2><FONT face="serif">Value</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan=2><FONT face="serif">Amount</FONT> </TD>
  </TR>
  <TR>
    <TD colspan=14>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Federal National</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="6%" align=left nowrap>&nbsp;</TD>
    <TD width="4%" align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Mortgage</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="6%" align=left nowrap>&nbsp;</TD>
    <TD width="4%" align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT face="serif">Held to</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Association Note</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="6%" align=right nowrap><FONT face="serif">5.13</FONT> </TD>
    <TD width="4%" align=left nowrap><FONT face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT face="serif">5/16/2007</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT face="serif">Maturity</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD  nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">1,492</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD  nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">1,492</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Millennium</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="6%" align=left nowrap>&nbsp;</TD>
    <TD width="4%" align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Ethanol, LLC</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="6%" align=left nowrap>&nbsp;</TD>
    <TD width="4%" align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT face="serif">Available for</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Convertible Note</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="6%" align=right nowrap><FONT face="serif">15.60</FONT> </TD>
    <TD width="4%" align=left nowrap><FONT face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT face="serif">4/1/2015</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT face="serif">Sale</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">14,000</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">14,000</font> </div></TD>
  </TR>
  <TR>
    <TD colspan=14>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Total Debt</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="6%" align=left nowrap>&nbsp;</TD>
    <TD width="4%" align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Securities</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="6%" align=left nowrap>&nbsp;</TD>
    <TD width="4%" align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD  nowrap><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">15,492</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD  nowrap><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">15,492</font> </div></TD>
  </TR>
  <TR>
    <TD colspan=14>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap colspan=4><FONT face="serif">Debt Securities January
        31, 2007</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=14>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="6%" align=left nowrap>&nbsp;</TD>
    <TD width="4%" align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan=2><FONT face="serif">Fair Market</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan=2><FONT face="serif">Carrying</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Investment</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=2><FONT face="serif">Coupon Rate</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT face="serif">Maturity</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT face="serif">Classification</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan=2><FONT face="serif">Value</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan=2><FONT face="serif">Amount</FONT> </TD>
  </TR>
  <TR>
    <TD colspan=14>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Federal National</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="6%" align=left nowrap>&nbsp;</TD>
    <TD width="4%" align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Mortgage</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="6%" align=left nowrap>&nbsp;</TD>
    <TD width="4%" align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT face="serif">Held to</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Association Note</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="6%" align=right nowrap><FONT face="serif">5.04</FONT> </TD>
    <TD width="4%" align=left nowrap><FONT face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT face="serif">2/16/2007</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT face="serif">Maturity</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD  nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">1,473</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD  nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">1,473</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Millennium</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="6%" align=left nowrap>&nbsp;</TD>
    <TD width="4%" align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Ethanol, LLC</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="6%" align=left nowrap>&nbsp;</TD>
    <TD width="4%" align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT face="serif">Available for</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Convertible Note</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="6%" align=right nowrap><FONT face="serif">15.60</FONT> </TD>
    <TD width="4%" align=left nowrap><FONT face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT face="serif">4/1/2015</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT face="serif">Sale</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">14,000</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">14,000</font> </div></TD>
  </TR>
  <TR>
    <TD colspan=14>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Total Debt</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="6%" align=left nowrap>&nbsp;</TD>
    <TD width="4%" align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Securities</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="6%" align=left nowrap>&nbsp;</TD>
    <TD width="4%" align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD  nowrap><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">15,473</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD  nowrap><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">15,473</font> </div></TD>
  </TR>
  <TR>
    <TD colspan=14>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap colspan=4><FONT face="serif">Debt Securities April
        30, 2006</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="6%" align=left nowrap>&nbsp;</TD>
    <TD width="4%" align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan=2><FONT face="serif">Fair Market</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan=2><FONT face="serif">Carrying</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Investment</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=2><FONT face="serif">Coupon Rate</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT face="serif">Maturity</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT face="serif">Classification</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan=2><FONT face="serif">Value</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan=2><FONT face="serif">Amount</FONT> </TD>
  </TR>
  <TR>
    <TD colspan=14>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Federal Home</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="6%" align=left nowrap>&nbsp;</TD>
    <TD width="4%" align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Loan Mortgage</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="6%" align=left nowrap>&nbsp;</TD>
    <TD width="4%" align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT face="serif">Held to</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Corp Note</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="6%" align=right nowrap><FONT face="serif">4.51</FONT> </TD>
    <TD width="4%" align=left nowrap><FONT face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT face="serif">5/9/2006</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap><FONT face="serif">Maturity</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD  nowrap><div style="border-bottom:1px solid #000000"><font face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">1,420</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD  nowrap><div style="border-bottom:1px solid #000000"><font face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">1,420</font> </div></TD>
  </TR>
  <TR>
    <TD colspan=14>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Total Debt</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="6%" align=left nowrap>&nbsp;</TD>
    <TD width="4%" align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD height="19" align=left nowrap><FONT face="serif">Securities</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="6%" align=left nowrap>&nbsp;</TD>
    <TD width="4%" align=left nowrap>&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="5%" align=left nowrap>&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="5%" align=left nowrap>&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%"  nowrap><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD width="5%" align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">1,420</font> </div></TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%"  nowrap><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD width="5%" align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">1,420</font> </div></TD>
  </TR>
</TABLE>
<BR>
<P align="center">
<FONT face="serif">19 </FONT></P>

<HR noshade width="100%" size=4>

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


<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">There were no material realized or unrealized holding gains or losses in fiscal year 2007 or 2006. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">On March 17, 2006, the Company entered into an agreement to purchase a note in the principal amount of &#36;14 million to be issued by Millennium Ethanol, LLC (&#147;Millennium&#148;) which has commenced construction of an
ethanol producing facility in Marion, South Dakota. The facility is expected to have a design capacity of 100 million gallons annually. The Company funded the note on December 18, 2006. The note agreement provides the Company rights to purchase a
minority equity interest in Millennium in exchange for the note. Monthly payments of principal and interest are scheduled to begin on the earlier of the date the ethanol plant is certified ready for production or April 1, 2008. Accrued interest
receivable was approximately &#36;819,000 at April 30, 2007. See Note 17 for a discussion of a subsequent event related to the Millennium note. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Company has approximately &#36;933,000, &#36;933,000 and</FONT><FONT face="serif"> </FONT><FONT face="serif">&#36;917,000</FONT><FONT face="serif"> </FONT><FONT face="serif">at April 30, 2007,
January 31, 2007 and April 30, 2006, respectively, on deposit with the Florida Department of Financial Services to secure its obligation to fulfill future obligations related to extended warranty contracts sold in the state of Florida. The deposits
earned 4.9%, 5.7%</FONT><FONT face="serif"> </FONT><FONT face="serif">and 3.5% at April 30, 2007, January 31, 2007 and April 30, 2006, respectively. </FONT></P>
<P align="left">
<FONT face="serif">The following table summarizes equity method investments at April 30, 2007 (amounts in thousands): </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Entity</FONT> </TD>
    <TD align=center colspan="4"><FONT face="serif">Ownership Percentage</FONT> </TD>
    <TD width="5%" align=center nowrap>&nbsp;</TD>
    <TD colspan=4 align=center nowrap><FONT face="serif">Carrying Amount</FONT> </TD>
    <TD width="5%">&nbsp;</TD>
    <TD align=center nowrap colspan=4><FONT face="serif">Initial Investment</FONT> </TD>
  </TR>
  <TR>
    <TD colspan=15>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Big River Resources, LLC</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">6.9</FONT> </TD>
    <TD width="4%" align=left nowrap><FONT face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
    <TD nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">11,393</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
    <TD nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">10,000</FONT> </TD>
    <TD align=right nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Patriot Renewable Fuels, LLC</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">23.3</FONT> </TD>
    <TD width="4%" align=left nowrap><FONT face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000"><FONT face="serif">16,543</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000"><FONT face="serif">16,000</FONT> </TD>
    <TD align=right nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=15>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Total Equity Securities</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%" align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
    <TD nowrap style="border-bottom:3px double #000000"><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000"><FONT face="serif">27,936</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
    <TD nowrap style="border-bottom:3px double #000000"><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap style="border-bottom:3px double #000000"><FONT face="serif">26,000</FONT> </TD>
    <TD align=right nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=15>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap colspan=15><FONT face="serif">The following table summarizes
        equity method investments at January 31, 2007 (amounts in thousands):</FONT> </TD>
  </TR>
  <TR>
    <TD colspan=15>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Entity</FONT> </TD>
    <TD align=center colspan="4"><FONT face="serif">Ownership Percentage</FONT> </TD>
    <TD align=center nowrap>&nbsp;</TD>
    <TD colspan=4 align=center nowrap><FONT face="serif">Carrying Amount</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=4><FONT face="serif">Initial Investment</FONT> </TD>
  </TR>
  <TR>
    <TD colspan=15>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Big River Resources, LLC</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">4.3</FONT> </TD>
    <TD width="4%" align=left nowrap><FONT face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
    <TD nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">5,499</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap>&nbsp;</TD>
    <TD nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">5,000</FONT> </TD>
    <TD align=right nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Patriot Renewable Fuels,LLC</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">23.3</FONT> </TD>
    <TD width="4%" align=left nowrap><FONT face="serif">%</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000"><FONT face="serif">16,200</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000">&nbsp;</TD>
    <TD align=right nowrap style="border-bottom:1px solid #000000"><FONT face="serif">16,000</FONT> </TD>
    <TD align=right nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=15>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Total Equity Securities</FONT> </TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="6%" align=left nowrap>&nbsp;</TD>
    <TD width="4%" align=left nowrap>&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%" nowrap>&nbsp;</TD>
    <TD width="3%" nowrap>&nbsp;</TD>
    <TD width="1%" nowrap style="border-bottom:3px double #000000"><FONT face="serif">&#36;</FONT> </TD>
    <TD width="5%" align=right nowrap style="border-bottom:3px double #000000"><FONT face="serif">21,699</FONT> </TD>
    <TD width="3%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="3%" nowrap>&nbsp;</TD>
    <TD width="1%" nowrap style="border-bottom:3px double #000000"><FONT face="serif">&#36;</FONT> </TD>
    <TD width="5%" align=right nowrap style="border-bottom:3px double #000000"><FONT face="serif">21,000</FONT> </TD>
    <TD width="3%" align=right nowrap>&nbsp;</TD>
  </TR>
</TABLE>

<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">On October 1, 2006, the Company entered into an agreement to invest &#36;20 million in Big River Resources, LLC (&#147;Big River&#148;). Big River is an Iowa limited liability company and holding company for several entities
including Big River Resources West Burlington, LLC which presently operates a 52 million gallon ethanol manufacturing facility. The Company has funded &#36;10 million of </FONT></P>
<P align="center">
<FONT face="serif">20 </FONT></P>

<HR noshade width="100%" size=4>

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


<P align="left">
<FONT face="serif">this investment in exchange for a 6.9% ownership interest. The remaining &#36;10 million investment is expected to occur in fiscal year 2007. The Company&#146;s final ownership percentage will be determined once Big River has
obtained all funding. During the first quarter of fiscal year 2007, the Company recorded income of &#36;1,070,000 as its share of earnings from Big River. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">On June 8, 2006, the Company entered into an agreement to invest &#36;16 million in Patriot Renewable Fuels, LLC (&#147;Patriot&#148;) which has commenced construction of an ethanol producing
facility in Annawon, Illinois. The facility is expected to have a design capacity of 100 million gallons annually. The Company funded this investment on December 4, 2006 in exchange for a 23.3% ownership interest. Patriot is a development stage
enterprise; the Company has capitalized interest of &#36;503,000 at April 30, 2007 as Patriot is constructing its ethanol plant. During the first quarter of fiscal year 2007, the Company recorded income of &#36;40,000 as its share of earnings from
Patriot. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Undistributed earnings of equity method investees totaled approximately &#36;1.4 million at April 30, 2007. </FONT></P>
<P align="left">
<B><FONT face="serif">Note 13. </FONT></B><B><I><FONT face="serif">Income Taxes </FONT></I></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The effective tax rate on consolidated pre-tax income was 38.6% for the quarter ended April 30, 2007, 33.1% for the year ended January 31, 2007 and 38.7% for the quarter ended April 30,
2006.  An adjustment for recognizing the benefit of Section 29/45K tax credits of (1.4)% is reflected in the effective rate for the year ended January 31, 2007. The provision for state taxes is approximately 3% and 6% for the quarters ended April
30, 2007 and 2006, respectively. The provision for state taxes is approximately (0.4)% for the year ended January 31, 2007. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Company files a U.S. federal income tax return and income tax returns in various states. In general, the Company is no longer subject to U.S. federal, state or local income tax
examinations by tax authorities for years ended before January 31, 2002.  </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Company adopted the provisions of FIN 48 on February 1, 2007. As a result of the adoption of FIN 48, the Company recorded a &#36;287,000 decrease to retained earnings. As of February 1, 2007, total unrecognized tax benefits
were &#36;639,000, and accrued penalties and interest were &#36;301,000. If the company were to prevail on all unrecognized tax benefits recorded, approximately &#36;639,000 of the reserve would benefit the effective tax rate. There were no
unrecognized tax benefits that represented temporary differences. In addition, the impact of penalties and interest would also benefit the effective tax rate. Interest and penalties associated with unrecognized tax benefits are recorded within
income tax expense. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">On a quarterly and annual basis, the Company accrues for the effects of open uncertain tax positions and the related potential penalties and interest. There were no material adjustments to the recorded liability for unrecognized
tax benefits during the first quarter of fiscal year 2007, other than those made in connection with the adoption of FIN 48 that are described above.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">It is reasonably possible that the amount of the unrecognized tax benefit with respect to certain unrecognized tax positions will increase or decrease during the next 12 months; however, the </FONT></P>
<P align="center">
<FONT face="serif">21 </FONT></P>

<HR noshade width="100%" size=4>

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


<P align="left">
<FONT face="serif">Company does not expect the change to have a significant effect on results of operations or financial position. </FONT></P>
<P align="left">
<B><FONT face="serif">Note 14. </FONT></B><B><I><FONT face="serif">Discontinued Operations and Assets Held for Sale</FONT></I></B><B><FONT face="serif"> </FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">During the first three months of fiscal year 2007 the Company closed 25 stores in which the Company vacated the market or will not have a further continuing involvement with the related property. These stores, and certain other
stores closed in previous periods were classified as discontinued operations for all periods presented. One closed store and one store to be closed are classified as held for sale. The net assets of those stores at April 30, 2007 were approximately
&#36;1.7 million. The Company expects to sell the fixed assets related to these stores within the next 12 months through normal real estate channels.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Below is a table reflecting certain items of the income statement that were reclassified as discontinued operations for the period indicated. </FONT></P>
<TABLE width="60%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=7><FONT face="serif">Three Months Ended</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=7><div style="border-bottom:1px solid #000000"><font face="serif">April
          30,</font> </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align=center nowrap><div style="border-bottom:1px solid #000000"><font face="serif">2007</font> </div></TD>
    <TD width="8%">&nbsp;</TD>
    <TD colspan="3" align=center nowrap><div style="border-bottom:1px solid #000000"><font face="serif">2006</font> </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=7><FONT face="serif">(In Thousands)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Net sales and revenue</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">11,789</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">20,609</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Cost of sales</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">9,326</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">14,706</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">(Loss) income before income taxes</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(1,166</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
    <TD width="8%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">483</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Benefit (provision) for income taxes</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">408</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(169</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Gain on disposal</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">3,490</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">-</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Provision for income taxes</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(1,222</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
    <TD width="8%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">-</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Net income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="1%" nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD width="9%" align=right nowrap><FONT face="serif">1,510</FONT> </TD>
    <TD width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%" nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD width="9%" align=right nowrap><FONT face="serif">314</FONT> </TD>
    <TD width="1%" align=left nowrap>&nbsp;</TD>
  </TR>
</TABLE>

<P align="left">
<B><FONT face="serif">Note 15. </FONT></B><B><I><FONT face="serif">Commitments </FONT></I></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">On May 26, 2006, the Company entered into a contingent agreement to invest &#36;24.9 million in One Earth Energy, LLC (&#147;One Earth&#148;) which was organized to construct and, subsequently,
operate an ethanol producing facility in Gibson City, Illinois. The facility is expected to have a design capacity of 100 million gallons annually. The current agreement calls for the equity investment to occur before June 30, 2007, subject to One
Earth obtaining additional financing and certain other conditions</FONT><FONT face="serif">. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">On October 1, 2006, the Company entered into an agreement to invest &#36;20 million in Big River Resources, LLC (&#147;Big River&#148;.) The Company has funded &#36;10 million of this investment in
exchange for a 6.9% ownership interest. The remaining &#36;10 million investment is expected to occur in fiscal year 2007, subject to certain conditions. The Company&#146;s final ownership percentage will be determined once Big River has obtained
all funding. </FONT></P>
<P align="left">
<B><FONT face="serif">Note 16. </FONT></B><B><I><FONT face="serif">Segment Reporting </FONT></I></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Company has two reportable segments, consumer electronics and appliance retailing </FONT></P>
<P align="center">
<FONT face="serif">22 </FONT></P>

<HR noshade width="100%" size=4>

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


<P align="left">
<FONT face="serif">(&#147;retail&#148;) and alternative energy. The Company evaluates the performance of each reportable segment based on segment profit. Segment profit excludes income taxes, interest expense, discontinued operations, indirect
interest income and certain other items that are included in net income determined in accordance with accounting principles generally accepted in the United States of America.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Amounts in the other category below include business activities that are not separately reportable and income from synthetic fuel investments (amounts in thousands): </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=7><FONT face="serif">Quarters Ended April
        30,</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align=center nowrap><FONT face="serif">2007</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align=center nowrap><FONT face="serif">2006</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Net sales and revenue:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Retail</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">57,933</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">66,049</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Alternative energy</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">-</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">-</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Total net sales and revenues</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">57,933</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT face="serif">&nbsp;</FONT>
        <div style="border-bottom:3px double #000000">&#36;</div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">66,049</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=12>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Segment profit:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Retail segment profit</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">2,725</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">940</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Alternative energy segment profit</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">1,656</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(440</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Corporate expense</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(864</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(535</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Interest expense</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(815</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(401</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Interest income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">530</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">292</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Income from synthetic fuel investments</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">6,733</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">2,062</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Income from continuing operations
        before income taxes</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">9,965</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">1,918</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=12>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan=2 align=right nowrap><FONT face="serif">April 30,</FONT> </TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan=2 align=right nowrap><FONT face="serif">January 31,</FONT> </TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap colspan=2><FONT face="serif">April 30,</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">2007</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">2007</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">2006</FONT> </TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Assets:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Retail</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="1%" nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD width="6%" align=right nowrap><FONT face="serif">261,785</FONT> </TD>
    <TD width="1%" align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%" nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD width="6%" align=right nowrap><FONT face="serif">233,666</FONT> </TD>
    <TD width="1%" align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%" nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD width="6%" align=right nowrap><FONT face="serif">267,672</FONT> </TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Alternative energy</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">74,239</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">67,653</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">-</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Corporate</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">39,063</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">44,123</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">42,031</font> </div></TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Total assets</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT face="serif">&nbsp;</FONT>
        <div style="border-bottom:3px double #000000">&#36;</div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">375,087</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">345,442</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">309,703</font> </div></TD>
  </TR>
</TABLE>

<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Certain corporate costs and expenses, including information technology, employee benefits and other shared services are allocated to the business segments. The allocations are generally amounts agreed upon by management, which
may differ from amounts that would be incurred if such services were purchased separately by the business segment. Corporate assets are primarily synthetic fuel accounts receivable and deferred income tax benefits. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Cash, except for cash held by Levelland/Hockley, is considered to be fungible and available for both corporate and segment use dependent on liquidity requirements. Cash of approximately &#36;7.7 million held by Levelland/Hockley
will be used primarily to fund the construction of a 40 million gallon ethanol plant and to provide working capital until the plant commences operations. </FONT></P>
<P align="center">
<FONT face="serif">23 </FONT></P>

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



<P align="left">
<B><FONT face="serif">Note 17. </FONT></B><B><I><FONT face="serif">Subsequent Events </FONT></I></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">On May 31, 2007, the Company entered into an agreement with U.S. BioEnergy Corporation and Millennium Ethanol, LLC (&#147;Millennium&#148;) for the conversion of the Company&#146;s &#36;14 Million
Convertible Secured Promissory Note including accrued interest, and Related Purchase Rights (&#147;the Note&#148;) issued by Millennium. Pursuant to the Note, funded in December 2006, the Company&#146;s interest will convert to 33.92% of the
membership interests in Millennium. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">US BioEnergy Corporation, has agreed to acquire Millennium for approximately &#36;135 million (before certain expenses) payable in US BioEnergy common stock, cash, or any combination thereof at US
BioEnergy&#146;s election; provided that, in no event will US BioEnergy issue more then 11.5 million shares of stock in the transaction. If US BioEnergy would otherwise be required to issue more than 11.5 million shares of stock to provide
approximately &#36;135 million of value, US BioEnergy will pay the balance of the consideration in cash. If, however, the closing price of US BioEnergy&#146;s common stock for the ten trading days immediately prior to the Special Meeting of
Millennium&#146;s members to approve the merger is greater than or equal to &#36;15.88 per share, the aggregate consideration payable to Millennium&#146;s members will be 8.5 million shares of US BioEnergy common stock. Should US Bio Energy elect to
issue shares as full consideration for the acquisition, the Company would expect to receive approximately 3.3 million shares of US BioEnergy common stock, based upon the closing price of US BioEnergy common stock at May 31, 2007.</FONT><FONT
color="#ff0000" face="serif"> </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The proposed transaction is subject to customary closing conditions and regulatory approvals, including the affirmative vote of all Classes of Millennium&#146;s members</FONT><FONT color="#ff0000"
face="serif">. </FONT><FONT face="serif">The transaction is expected to close in the third quarter of this year and has been unanimously approved by the governing boards of US BioEnergy and Millennium, respectively.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">On May 31, 2007, the Company&#146;s Board of Directors increased the authorized number of shares that can be repurchased to 1 million shares. </FONT></P>
<P align="left">
<B><FONT face="serif">Item 2. </FONT></B><B><I><FONT face="serif">Management's Discussion and Analysis of Financial Condition and Results of Operations.</FONT></I></B><B><FONT face="serif"> </FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">We are a specialty retailer in the consumer electronics/appliance industry. As of April 30, 2007 we operated 164 stores in 35 states, predominantly in small to medium-sized markets under the trade
name "REX".</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">In fiscal year 2006, we entered the alternative energy industry by investing in several entities organized to construct and, subsequently operate, ethanol producing plants. As we continue to seek to
diversify sources of revenue and earnings, we have invested in four entities as of April 30, 2007, utilizing both debt and equity investments. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Since fiscal year 1998, we invested in three entities which owned facilities producing synthetic fuel. These entities earn federal income tax credits under Section 29/45K of the Internal Revenue Code
based on the tonnage and content of solid synthetic fuel produced and sold to related </FONT></P>
<P align="center">
<FONT face="serif">24 </FONT></P>


<HR noshade width="100%" size=4>

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


<P align="left">
<FONT face="serif">parties. We have sold our entire ownership interest in these entities in prior years, and as a result, receive payments in connection with current production of synthetic fuel. </FONT></P>
<P align="left">
<B><FONT face="serif">Fiscal Year </FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">All references in this report to a particular fiscal year are to REX's fiscal year ended January 31. For example, "fiscal year 2007" means the period February 1, 2007 to January 31, 2008. </FONT></P>
<P align="left">
<B><FONT face="serif">Results of Operations </FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The following table sets forth, for the periods indicated, the relative percentages that certain income and expense items bear to net sales and revenue: </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=5><FONT face="serif">Three Months Ended</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=5><div style="border-bottom:1px solid #000000"><font face="serif">April
          30,</font> </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align=center nowrap><div style="border-bottom:1px solid #000000"><font face="serif">2007</font> </div></TD>
    <TD width="4%">&nbsp;</TD>
    <TD colspan="2" align=center nowrap><div style="border-bottom:1px solid #000000"><font face="serif">2006</font> </div></TD>
  </TR>
  <TR>
    <TD colspan=7>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Net sales and revenue</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">100.0</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">%</FONT> </TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">100.0</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">%</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Cost of sales</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">69.7</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">72.3</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Gross profit</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">30.3</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">27.7</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Selling, general and administrative
        expenses</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">29.1</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">27.7</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Interest income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">2.2</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">0.4</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Interest expense</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(0.3</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(0.6</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Loss on early termination of debt</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(1.1</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">-</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Gain on sale of real estate</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">1.7</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">-</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Equity in income of unconsolidated
        ethanol affiliates</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">1.9</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">-</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Income from synthetic fuel investments</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">11.6</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">3.1</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Income from continuing operations
        before</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD nowrap>&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">provision for income
        taxes, minority interest and</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap>&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">discontinued
        operations</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">17.2</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">2.9</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Provision for income taxes</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">6.6</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">1.1</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Minority interest</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">(0.2</font> </div></TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">-</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Income from continuing operations</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">10.4</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">1.8</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">(Loss) income from discontinued
        operations, net of tax</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(1.3</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">0.5</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Gain on disposal of discontinued
        operations, net of tax</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">3.9</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">-</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Net income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="6%" align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">13.0</font> </div></TD>
    <TD width="4%" align=left nowrap><FONT face="serif">%</FONT> </TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="6%" align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">2.3</font> </div></TD>
    <TD width="4%" align=left nowrap><FONT face="serif">%</FONT> </TD>
  </TR>
</TABLE>

<P align="left">
<B><FONT face="serif">Business Segment Results </FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">As discussed in Note 16, our chief operating decision maker (as defined by SFAS No. 131, &#147;Disclosures about Segments of an Enterprise and Related Information&#148;) evaluates the operating performance of our business
segments using a measure we call segment profit. Segment profit excludes income taxes, interest expense, discontinued operations, indirect interest income and certain other items that are included in net income determined in accordance with
accounting principles generally accepted in the United States of America.</FONT></P>
<P align="center">
<FONT face="serif">25 </FONT></P>

<HR noshade width="100%" size=4>

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


<P align="left">
<FONT face="serif">Management believes these are useful financial measures; however, they should not be construed as being more important than other comparable GAAP measures. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Items excluded from segment profit generally result from decisions made by corporate executives. Financing, divestiture and tax structure decisions are generally made by corporate executives. Excluding these items from our
business segment performance measure enables us to evaluate business segment operating performance based upon current economic conditions. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The following table sets forth, for the periods indicated, sales and profits by segment (amounts in thousands): </FONT></P>
<TABLE width="60%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left nowrap colspan=7><FONT face="serif">Quarters Ended April 30,</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align=center nowrap><div style="border-bottom:1px solid #000000"><font face="serif">2007</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD colspan="2" align=center nowrap><div style="border-bottom:1px solid #000000"><font face="serif">2006</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Net sales and revenue:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Retail</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">57,933</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">66,049</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Alternative energy</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">-</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">-</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Total net sales and revenues</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">57,933</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD nowrap><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">66,049</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD colspan=9>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Segment profit:</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Retail segment profit</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">2,725</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">940</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Alternative energy segment profit</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">1,656</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(440</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Corporate expense</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(864</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
    <TD width="8%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(535</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Interest expense</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(815</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
    <TD width="8%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(401</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Interest income</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">530</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">292</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Income from synthetic fuel investments</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">6,733</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">2,062</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Income from continuing operations</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">before income taxes</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="1%" nowrap><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD width="6%" align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">9,965</font> </div></TD>
    <TD width="1%" align=left nowrap>&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%" nowrap><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD width="6%" align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">1,918</font> </div></TD>
    <TD width="1%" align=left nowrap>&nbsp;</TD>
  </TR>
</TABLE>

<P align="left">
<B><FONT face="serif">Comparison of Three Months Ended April 30, 2007 and 2006 </FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">All of our net sales and revenue was generated by our retail segment, as the only ethanol entity we consolidate did not have an operating plant in the first quarter of fiscal year 2007 or 2006. Net sales and revenue in the
quarter ended April 30, 2007 were &#36;57.9 million compared to &#36;66.0 million in the prior year&#146;s first quarter, representing a decrease of &#36;8.1 million or 12.3% . Net sales and revenue do not include sales from stores classified in
discontinued operations. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">This decrease was primarily caused by a decrease in comparable store sales of 10.0% for the first quarter of fiscal year 2007. The decrease in comparable store sales accounted for approximately
&#36;4.7 million of the decrease in net sales and revenue. In addition, the decrease was caused by a reduction of 47 stores (36 of which were classified as discontinued operations) since the end of the first quarter of fiscal year 2006. The
reduction in stores accounted for approximately &#36;3.4 million of the decrease. We consider a store to be comparable after it has been open six full fiscal quarters. Comparable store sales do not include sales of extended service
contracts.</FONT></P>
<P align="center">
<FONT face="serif">26 </FONT></P>

<HR noshade width="100%" size=4>

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


<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Our strongest product category for the first quarter of fiscal year 2007 was the appliance category which positively impacted comparable store sales by 4.2% . The appliance category performance was
primarily due to improved sales across most of the appliance category products as we continue to emphasize a broader selection of appliance products. The television category negatively impacted comparable store sales by 9.1% . This resulted from
gains in LCD and plasma television sales being offset by declines in high definition projection, light engine and traditional tube televisions. The audio category negatively impacted comparable store sales by 3.3% . The video category negatively
impacted comparable store sales by 1.2% . Both the audio and video categories have been impacted by lower price points of their respective products, as these products are continuing to become more of a commodity item with very high levels of
competition. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT><FONT face="serif">The following table reflects the approximate percent of net sales for each major product group for the following periods: </FONT></P>
<TABLE width="60%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=5><FONT face="serif">Three Months Ended</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=5><div style="border-bottom:1px solid #000000"><font face="serif">April
          30,</font> </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Product Category</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">2007</font> </div></TD>
    <TD align=left nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD width="8%">&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">2006</font> </div></TD>
    <TD align=left nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Televisions</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">52.4</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">%</FONT> </TD>
    <TD width="8%">&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">56.4</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">%</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Appliances</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">29.8</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">23.2</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Audio</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">5.6</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">8.5</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Video</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">2.6</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">3.6</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Extended warranties</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">5.4</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">3.9</FONT> </TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Other</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">4.2</font> </div></TD>
    <TD align=left nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD width="8%">&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">4.4</font> </div></TD>
    <TD align=left nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="9%" align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">100.0</font> </div></TD>
    <TD width="4%" align=left nowrap><div style="border-bottom:3px double #000000"><font face="serif">%</font> </div></TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="9%" align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">100.0</font> </div></TD>
    <TD width="4%" align=left nowrap><div style="border-bottom:3px double #000000"><font face="serif">%</font> </div></TD>
  </TR>
</TABLE>

<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">As of April 30, 2007, we operated 164 stores compared to 211 stores one year earlier. We did not open any stores and closed 29 stores during the first three months of fiscal year 2007. We are
marketing five of the closed locations for lease or sale. We sold 21 of the closed stores and abandoned three of the stores upon the expiration of our lease as tenant. We did not open any stores and closed five stores during the first three months
of fiscal year 2006.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"> At April 30, 2007, we had lease agreements, as landlord/sub landlord, for all or parts of 15 properties. We own 12 of these properties and are the tenant/sub landlord for three of the properties. In
five of the owned locations, we operate a store and lease a portion of the property to another party.  We do not operate a store in seven of the owned properties. We have seven owned properties that are vacant at April 30, 2007. The assets for one
of these properties are classified as assets held for sale. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Gross
profit of &#36;17.6 million (30.3% of net sales and revenue) in the first quarter
of fiscal year 2007 was approximately &#36;0.7 million lower than the &#36;18.3
million (27.7% of net sales and revenue) recorded in the first quarter of fiscal
year 2006. Gross profit for the first quarter of fiscal year 2007 was negatively
impacted by lower sales compared to the prior year. This decrease was partially
offset by higher gross profit margin percentage of approximately 2.6%. Gross
profit was also </FONT></P>
<P align="center">
<FONT face="serif">27 </FONT></P>

<HR noshade width="100%" size=4>

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


<P align="left">
<FONT face="serif">positively impacted by a higher percentage of extended warranty sales, which have a higher gross profit margin, in the first quarter of fiscal year 2007 compared to the first quarter of fiscal year 2006. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Selling, general and administrative expenses for the first quarter of fiscal year 2007 were &#36;16.9 million (29.1% of net sales and revenue), a decrease of &#36;1.4 million or 7.7 % from &#36;18.3
million (27.7% of net sales and revenue) for the first quarter of fiscal year 2006. The decrease in expenses was primarily a result of lower advertising expenses of &#36;1.0 million as we had fewer markets to serve after our store
closings.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Interest income was &#36;1,293,000 (2.2% of net sales and revenue) for the first quarter of fiscal year 2007 compared to &#36;292,000 (0.4% of net sales and revenue) for the first quarter of fiscal
year 2006. The increase results primarily from larger amounts of excess cash invested in fiscal year 2007 versus 2006 and interest income from our alternative energy segment of &#36;759,000. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Interest expense was &#36;165,000 for the first quarter of fiscal year 2007 compared to &#36;401,000 for the first quarter of fiscal year 2006. Interest expense for the current year has been lowered
due to capitalizing interest on certain of our ethanol investments. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT><FONT face="serif">We paid off approximately &#36;15.6 million of debt in connection with the sale and leaseback transaction with Klac. As a result, we incurred prepayment penalties and the write off of
prepaid loan fees totaling approximately &#36;651,000. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">On April 30, 2007, we completed a transaction for the sale of 86 of our current and former store locations to Klac for &#36;74.5 million in cash, before selling expenses. We also entered into leases to leaseback 40 of the
properties from Klac for initial lease terms expiring January 31, 2010, with renewal options for up to 15 additional years. Both we and Klac may terminate a lease after the initial six months of the initial lease term on 28 of the leases. We also
entered into license agreements with Klac for 15 of the properties that allow us to occupy the properties for up to 90 days rent free. Upon the expiration of the license period, we must vacate the property. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">A
pre-tax financial statement gain of &#36;3.2 million (net of expenses and losses)
resulted from this sale. Of this gain, &#36;2.2 million was classified as discontinued
operations and the remaining
&#36;1.0 million was classified as continuing operations. We also deferred &#36;11.6
million, which represents the present value of the minimum lease payments and
the gain associated with stores that we have continuing involvement with, as
defined  in SFAS 98, &#147;Accounting for Leases&#148;. The deferred gain will
be amortized as a reduction to lease expense over the lease or license periods
or recognized as gain on disposal at the end of the lease or license period.
The leases have been accounted for as operating leases. Future minimum annual
rentals on the properties leased back are &#36;3.0
million, &#36;4.1
million and &#36;4.4
million for the fiscal years ended January 31, 2008, 2009 and 2010, respectively,
subject to earlier termination of individual leases.</FONT></P>
<P align="center">
<FONT face="serif">28 </FONT></P>

<HR noshade width="100%" size=4>

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


<P align="left">
<FONT face="serif">The following table summarizes the components of the sale and leaseback transaction amounts in thousands): </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">Property Category</FONT> </TD>
    <TD colspan="3" align=center><FONT face="serif">Number of Properties</FONT> </TD>
    <TD width="4%" align=center>&nbsp;</TD>
    <TD colspan="4" align=center nowrap><FONT face="serif">Deferred Gain</FONT> </TD>
    <TD width="3%">&nbsp;</TD>
    <TD align=center width="4%" colspan="4"><FONT face="serif">Recognized Gain</FONT> </TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Vacated</FONT> </TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="3%" align=center nowrap><FONT face="serif">31</FONT> </TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="3%" align=left nowrap>&nbsp;</TD>
    <TD width="1%" align=left nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">-</FONT> </TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%"  nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD align=right nowrap><FONT face="serif">3,026</FONT> </TD>
    <TD width="4%" align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="3%" align=center nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%" align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Licensed</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="3%" align=center nowrap><FONT face="serif">15</FONT> </TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">3,307</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%" align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(580</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="3%" align=center nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%" align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Leased until January 31, 2010</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="3%" align=center nowrap><FONT face="serif">12</FONT> </TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">4,235</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%" align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">(216</FONT> </TD>
    <TD align=left nowrap><FONT face="serif">)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="3%" align=center nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%" align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom" bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Leased until January 31, 2010</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="3%" align=left nowrap>&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%" align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="3%" align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="1%" align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">(6 month kickout clause)</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="3%" align=center nowrap><div style="border-bottom:1px solid #000000"><font face="serif">28</font> </div></TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">4,048</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%" align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">986</font> </div></TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif"></FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="3%" align=left nowrap>&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%" align=right nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">Total</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="3%" align=center nowrap><div style="border-bottom:3px double #000000"><font face="serif">86</font> </div></TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD align=left nowrap>&nbsp;</TD>
    <TD align=left nowrap><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD width="6%" align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">11,590</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%"  nowrap><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD width="6%" align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">3,216</font> </div></TD>
    <TD width="4%" align=left nowrap>&nbsp;</TD>
  </TR>
</TABLE>

<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">During the first quarter of fiscal year 2007, we recognized income of approximately &#36;1,070,000 and &#36;40,000 from our equity investments in Big River Resources, LLC and Patriot Renewable Fuels, LLC, respectively. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"> Results for the first quarter of fiscal years 2007 and 2006 reflect the impact of the sales of our investment in Colona SynFuel Limited Partnership, L.L.L.P. (Colona) and Somerset Synfuel, L.P. (Somerset), which produce
synthetic fuel. We sold our ownership interest in the Colona limited partnership through a series of three sales. We expect to receive payments from the three separate sales of our interests in Colona, on a quarterly basis through 2007, which will
range from 74.25% to 82.5% of the federal income tax credits attributable to the interest sold subject to certain annual limitations and production levels. During the first quarter of fiscal year 2007, we recorded approximately &#36;909,000 of
income which relates to a payment received for 2006 production. The 2006 production payments were based upon estimated income tax credits per ton of coal produced. The &#36;909,000 payment was made to us after the Internal Revenue Service published
the 2006 income tax credit per ton amount in April of 2007. During the first quarter of fiscal year 2006, we recorded approximately &#36;504,000 of income which relates to a payment received for 2005 production. The 2005 production payments were
based upon estimated income tax credits per ton of coal produced. The &#36;504,000 payment was made to us after the Internal Revenue Service published the 2005 income tax credit per ton amount in April of 2006</FONT><FONT
face="serif">. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Effective October 1, 2005, we sold our entire ownership interest in the Somerset limited partnership that owned two synthetic fuel facilities. We received &#36;1.2 million, net of commissions, at
closing along with a secured contingent payment note that could provide additional investment income. We expect to receive quarterly payments through 2007 equal to 80% of the Section 29/45K tax credits attributable to the ownership interest sold,
subject to production levels.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">We sold our entire membership interest in the limited liability company that owned a synthetic fuel facility in Gillette, Wyoming. We received &#36;2.8 million at the time of sale on March 30, 2004
along with a secured contingent payment note that could provide additional investment income to us.</FONT></P>
<P align="center">
<FONT face="serif">29 </FONT></P>

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


<P align="left">
<FONT face="serif">The facility resumed commercial operations during the second quarter of fiscal 2005; as such, we received &#36;3.5 million as a one-time payment per the terms of the purchase agreement. In addition, we are eligible to receive
&#36;1.50 per ton of &#147;qualified production&#148; produced by the facility and sold through 2007. The plant was subsequently sold and during the third quarter of fiscal year 2006, we modified our agreement with the owners and operators of the
synthetic fuel facility. Based on the terms of the agreement, we are not currently able to determine the likelihood of collecting payments related to production occurring after September 30, 2006. Thus, we cannot currently determine the impact and
timing of income recognition related to production occurring after September 30, 2006. At April 30, 2007, we estimate that there is approximately 3.1 million tons of production for which we did not recognize income.</FONT><FONT
face="serif"> </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">As provided by the current Internal Revenue Code, the Code Section 29/45K tax credit program is expected to continue through December 31, 2007; however, recent increases in the price of oil could limit the amount of those credits
or eliminate them altogether for 2007. This possibility is due to a provision of Section 29/45K that provides that if the average wellhead price per barrel for unregulated domestic crude oil for the year (the &#147;Annual Average Price&#148;)
exceeds a certain threshold value (the &#147;Threshold Price&#148;), the Section 29/45K tax credits are subject to phase out. For calendar year 2006, the Threshold Price was &#36;55.06 per barrel and the Phase Out Price was &#36;69.12 per barrel.
The Threshold Price and the Phase Out Price are adjusted annually as a result of inflation and are published by the Internal Revenue Service in April of the following year.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">We cannot predict with absolute certainty the Annual Average Price for 2007. Therefore, we cannot predict whether the price of oil will have a material effect on our synthetic fuel income after 2006.
However, if during 2007 oil prices remain at historically high levels or increase, such that the Annual Average Price exceeds the Threshold Price, our synthetic fuel income may be adversely affected for 2007, and, depending on the magnitude of such
increases in oil prices, the adverse affect for 2007 could be material and could have an impact on our synthetic fuel income. Based upon the price of oil to date and considering the NYMEX futures market, we estimate the tax credits would not be
subject to a phase out as of April 30, 2007. Because synthetic fuel is not economical to produce absent the associated tax credits and the fact that we have no control or decision involvement with production levels, we cannot determine the impact of
possible production reduction or elimination on our financial results. </FONT></P>
<P align="center">
<FONT face="serif">30 </FONT></P>

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


<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Below is a table summarizing the income (loss) recognized from the sales, net of certain expenses, of our interests in synthetic fuel entities. </FONT></P>
<TABLE width="60%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=5><FONT face="serif">Three Months Ended</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=5><div style="border-bottom:1px solid #000000"><font face="serif">April
          30</font> </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align=center nowrap><div style="border-bottom:1px solid #000000"><font face="serif">2007</font> </div></TD>
    <TD align=center nowrap>&nbsp;</TD>
    <TD colspan="2" align=center nowrap><div style="border-bottom:1px solid #000000"><font face="serif">2006</font> </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap colspan=5><FONT face="serif">(In Thousands)</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">February 1, 1999 Colona sale</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="1%"  nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD width="8%" align=right nowrap><FONT face="serif">1,945</FONT> </TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%"  nowrap><FONT face="serif">&#36;</FONT> </TD>
    <TD width="8%" align=right nowrap><FONT face="serif">259</FONT> </TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">July 31, 2000 Colona sale</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">1,552</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">473</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">May 31, 2001 Colona sale</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">1,379</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">421</FONT> </TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap><FONT face="serif">October 1, 2005 Somerset sale</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">1,857</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">423</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap><FONT face="serif">March 30, 200 Gillette sale</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">-</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000">&nbsp;</div></TD>
    <TD align=right nowrap><div style="border-bottom:1px solid #000000"><font face="serif">486</font> </div></TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD  nowrap><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">6,733</font> </div></TD>
    <TD>&nbsp;</TD>
    <TD  nowrap><div style="border-bottom:3px double #000000"><font face="serif">&#36;</font> </div></TD>
    <TD align=right nowrap><div style="border-bottom:3px double #000000"><font face="serif">2,062</font> </div></TD>
  </TR>
</TABLE>

<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Our effective tax rate was 38.6% and 38.7% for the first quarter of fiscal years 2007 and 2006, respectively. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT><FONT face="serif">Minority interest of &#36;95,000 represents the owners&#146; (other than us) share of the income of Leveland/Hockley County Ethanol, LLC. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">During the quarter ended April 30, 2007 we closed 29 stores that were classified as discontinued operations. As a result of these closings and certain other store closings from prior periods, we had a loss from discontinued
operations, net of tax benefit, of &#36;0.8 million for the first quarter of fiscal year 2007 compared to income of &#36;0.3 million for the first quarter of fiscal year 2006.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">As a result of the previously discussed sale and leaseback with Klac and the sale of two properties that had been previously closed, we had a gain from discontinued operations, net of tax expense, of approximately &#36;2.3
million for the first quarter of fiscal year 2007. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">As a result of the foregoing, net income for the first quarter of fiscal year 2007 was &#36;7.5 million, an increase of &#36;6.0 million from &#36;1.5 million for the first quarter of fiscal year
2006.</FONT></P>
<P align="left">
<B><FONT face="serif">Liquidity and Capital Resources </FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Net cash used in operating activities was approximately &#36;5.9 million for the first quarter of fiscal year 2007, compared to &#36;6.1 million for the first quarter of fiscal year 2006. For the
first three months of fiscal year 2007, cash was provided by net income of &#36;7.5 million, adjusted for the impact of &#36;6.7 million for gains on our installment sales of the limited partnership interests, the gain on the disposal of real estate
and property and equipment of &#36;4.5 million and non-cash items of &#36;2.1 million, which consisted of depreciation and amortization, stock based compensation expense, impairment charges, deferred income and the deferred income tax provision. In
addition, accounts payable provided cash of &#36;18.2 million, primarily a result of changes in inventory levels and extended terms</FONT></P>
<P align="center">
<FONT face="serif">31 </FONT></P>

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<P align="left">
<FONT face="serif">from vendors. The primary use of cash was an increase in inventory of &#36;20.3 million primarily due to seasonal fluctuations. The inventory increase from January 31, 2007 primarily results from higher television levels. The
other use of cash was a decrease in other current liabilities of &#36;1.3 million.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">For the first three months of fiscal year 2006, cash was provided by net income of &#36;1.5 million, adjusted for the impact of &#36;2.1 million for gains on our installment sales of the limited
partnership interests, non-cash items of &#36;1.9 million, which consisted of depreciation and amortization, stock based compensation expense, impairment charges, deferred income and the deferred income tax provision. In addition, accounts payable
provided cash of &#36;6.2 million, primarily a result of changes in inventory levels and prepaid expenses provided cash of &#36;0.9 million. The primary use of cash was an increase in inventory of &#36;11.1 million primarily due to seasonal
fluctuations. The other use of cash was a decrease in other current liabilities of &#36;3.2 million</FONT><FONT face="serif">.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">At April 30, 2007, working capital was &#36;136.6 million compared to &#36;83.8 million at January 31, 2007. This increase is primarily a result of the sale and leaseback transaction with Klac and
greater cash proceeds from our synthetic fuel investments. The ratio of current assets to current liabilities was 2.8 to 1 and 2.6 to 1 at April 30, 2007 and January 31, 2007, respectively. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Cash of &#36;78.3 million was provided by investing activities for the first quarter of fiscal year 2007, compared to &#36;1.0 million for the first quarter of fiscal year 2006. During the first
quarter of fiscal year 2007, we received proceeds of &#36;77.3 million from the sale and leaseback transaction with Klac and other real estate sales and &#36;10.1 million from the installment sales of our ownership interests in synthetic fuel
entities. We had capital expenditures of approximately &#36;9.1 million during the first quarter of fiscal year 2007, primarily related to the Levelland/Hockley County Ethanol, LLC ethanol plant construction.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Cash of &#36;0.6 million was provided by investing activities for the first quarter of fiscal year 2006. During the first quarter of fiscal year 2006, we received proceeds of &#36;0.7 million from
installment sales of our ownership interests in synthetic fuel entities. We had capital expenditures of approximately &#36;0.1 million during the first quarter of fiscal year 2006, primarily related to improvements at selected stores.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Cash used in financing activities totaled approximately &#36;10,000,000 for the first quarter of fiscal year 2007 compared to cash provided by financing activities of &#36;457,000 for the first
quarter of fiscal year 2006. Cash was provided by new debt borrowings of &#36;5.0 million and stock option activity of &#36;1.3 million. Cash of &#36;16.3 million was used for scheduled and early payments of mortgage debt. On May 31, 2007, our Board
of Directors increased our share repurchase authorization to one million shares.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Cash provided by financing activities totaled approximately &#36;0.5 million for the first quarter of fiscal year 2006. Cash was provided by stock option activity of &#36;1.2 million. Cash of &#36;0.7
million was used for scheduled payments of mortgage debt.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">On October 1, 2006, we entered into an agreement to invest &#36;20 million in Big River Resources, LLC (&#147;Big River&#148;). Big River is an Iowa limited liability company and holding company for
several entities including Big River Resources West Burlington, LLC which presently operates a</FONT></P>
<P align="center">
<FONT face="serif">32 </FONT></P>

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<P align="left">
<FONT face="serif">52 million gallon ethanol manufacturing facility. We have funded &#36;10 million of this investment in exchange for a 6.9% ownership interest. The remaining &#36;10 million investment is expected to occur in fiscal year 2007. Our
final ownership percentage will be determined once Big River has obtained all funding. Big River intends to expand the plant to produce approximately 80 million gallons annually and intends to develop additional ethanol production plants.
</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT><FONT face="serif">On May 26, 2006, we entered into a contingent agreement to invest &#36;24.9 million in One Earth Energy, LLC (&#147;One Earth&#148;) which was organized to construct and, subsequently,
operate an ethanol producing facility in Gibson City, Illinois. The facility is expected to have a design capacity of 100 million gallons annually. The current agreement calls for the equity investment to occur before June 30, 2007, subject to One
Earth obtaining additional financing and certain other conditions. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">We believe we have sufficient resources to fund these and other potential ethanol investments.</FONT></P>
<P align="left">
<B><FONT face="serif">Forward-Looking Statements </FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">This
Form 10-Q contains or may contain forward-looking statements as defined in the
Private Securities Litigation Reform Act of 1995. Such statements can be identified
by use of forward-looking terminology such as &#147;may,&#148; &#147;expect,&#148; &#147;believe,&#148; &#147;estimate,&#148;
&#147;anticipate&#148; or &#147;continue&#148; or the negative thereof or other variations thereon or comparable terminology. Readers are cautioned that there are risks and uncertainties that could cause actual events or results to differ materially
from those referred to in such forward-looking statements. These risks</FONT><FONT face="serif"> and uncertainties include the risk factors set forth from time to time in the Company&#146;s filings with the Securities and Exchange Commission and
among other things: risks and uncertainties relating to the proposed acquisition of REX Stores' interest in Millennium Ethanol, LLC by U.S. BioEnergy Corporation including, but not limited to the satisfaction of conditions to closing; including
receipt of member, regulatory and other consents and approvals; delays in consummating the proposed transaction; uncertainty of the financial performance of U.S. BioEnergy Corporation following completion of the proposed transaction; fluctuations in
the market prices and trading volumes of U.S. BioEnergy Corporation common stock; the highly competitive nature of the consumer electronics retailing industry, changes in the national or regional economies, weather, the effects of terrorism or acts
of war on consumer spending patterns, the availability of certain products, technological changes, changes in real estate market conditions, new regulatory restrictions or tax law changes relating to the Company&#146;s synthetic fuel investments,
the fluctuating amount of quarterly payments received by the Company with respect to sales of its partnership interest in a synthetic fuel investment, the potential for Section 29/45K tax credits to phase out based on the price of crude oil adjusted
for inflation, and the uncertain amount of synthetic fuel production and resulting income received from time to time from the Company&#146;s synthetic fuel investments. As it relates to ethanol investments, risks and uncertainties include among
other things: the uncertainty of constructing plants on time and on budget, the price volatility of corn, dried distiller grains, ethanol, gasoline and natural gas, and the ability to remain in compliance with related debt covenants. </FONT><FONT
face="serif">Other factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in Item 1A of the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2007 (File No.
001-09097). </FONT></P>
<P align="center">
<FONT face="serif">33 </FONT></P>

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<P align="left">
<B><FONT face="serif">Item 3. </FONT></B><B><I><FONT face="serif">Quantitative and Qualitative Disclosures About Market Risk</FONT></I></B><B><FONT face="serif"> </FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">No material changes since January 31, 2007. </FONT></P>
<P align="left">
<B><FONT face="serif">Item 4. </FONT></B><B><I><FONT face="serif">Controls and Procedures</FONT></I></B><B><FONT face="serif"> </FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Our management evaluated, with the participation of our Chief Executive Officer and Chief Financial Officer, the effectiveness of our disclosure controls and procedures, as of the end of the period
covered by this report. Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed by us in the reports
that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission&#146;s rules and forms and is accumulated and communicated
to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">There were no changes in our internal control over financial reporting that occurred during our last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our
internal control over financial reporting. </FONT></P>
<P align="center">
<B><FONT face="serif">PART II. OTHER INFORMATION </FONT></B></P>
<P align="left">
<B><FONT face="serif">Item 1A. </FONT></B><B><I><FONT face="serif">Risk Factors </FONT></I></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">During the quarter ended April 30, 2007, there have been no material changes to the risk factors discussed in our Annual Report on Form 10-K for the year ended January 31, 2007. </FONT></P>
<P align="left">
<B><FONT face="serif">Item 4. </FONT></B><B><I><FONT face="serif">Submission of Matters to a Vote of Security Holders.</FONT></I></B><FONT face="serif"> </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The annual meeting of shareholders of REX Stores Corporation was held on May 31, 2007, at which the following matter was submitted to a vote of shareholders: </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">1. Election of seven directors.</FONT><B><FONT face="serif"> </FONT></B></P>
<TABLE width="40%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width="27%" align=center nowrap><FONT face="serif">Nominee</FONT> </TD>
    <TD width="34%" align=center nowrap>&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD align=center nowrap><FONT face="serif">For</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=center nowrap><FONT face="serif">Withheld</FONT> </TD>
  </TR>
  <TR>
    <TD colspan=6>&nbsp;</TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD colspan="2" align=left nowrap><FONT face="serif">Stuart A. Rose</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">7,394,636</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">2,006,790</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="2" align=left nowrap><FONT face="serif">Lawrence Tomchin</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">7,200,479</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">2,200,947</FONT> </TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD colspan="2" align=left nowrap><FONT face="serif">Robert Davidoff</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">9,029,455</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">371,971</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="2" align=left nowrap><FONT face="serif">Edward M. Kress</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">7,201,154</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">2,200,272</FONT> </TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD colspan="2" align=left nowrap><FONT face="serif">Charles A. Elcan</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">6,995,392</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">2,406,034</FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="2" align=left nowrap><FONT face="serif">David S. Harris</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">9,030,613</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD align=right nowrap><FONT face="serif">370,813</FONT> </TD>
  </TR>
  <TR valign="bottom"  bgcolor="#E5FFFF">
    <TD colspan="2" align=left nowrap><FONT face="serif">Mervyn L. Alphonso</FONT> </TD>
    <TD>&nbsp;</TD>
    <TD width="11%" align=right nowrap><FONT face="serif">9,202,680</FONT> </TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="11%" align=right nowrap><FONT face="serif">198,746</FONT> </TD>
  </TR>
</TABLE>
<BR>
<P align="center">
<FONT face="serif">34 </FONT></P>

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<P align="left">
<B><FONT face="serif">Item 6. </FONT></B><B><I><FONT face="serif">Exhibits.</FONT></I></B><B><FONT face="serif"> </FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The following exhibits are filed with this report: </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR>
    <TD width="8%" valign=top nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="5%" valign=top nowrap><FONT face="serif">31</FONT>&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width=87%><FONT face="serif">Rule 13a-14(a)/15d-14(a) Certifications</FONT> </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
    <TD nowrap valign=top>&nbsp;</TD>
    <TD nowrap valign=top><FONT face="serif">32</FONT>&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD><FONT face="serif">Section 1350 Certifications</FONT> </TD>
  </TR>
  <TR>
    <TD colspan=3>&nbsp;</TD>
  </TR>
</TABLE>
<P align="center">
<FONT face="serif">35 </FONT></P>

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


<P align="center">
<B><FONT face="serif">SIGNATURES </FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">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>
<P align="center">&nbsp;</P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="50%">&nbsp;</td>
    <td width="50%"><FONT face="serif">REX STORES CORPORATION </FONT><BR>
      <FONT face="serif">Registrant </FONT></td>
  </tr>
</table>
<P align="center">&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width="40%" align=center nowrap><B><FONT size=2 face="serif">Signature</FONT></B> </TD>
    <TD width="20%" align=center  nowrap><B><FONT size=2 face="serif">Title</FONT></B></TD>
    <td width="40%"><div align="center"><B><FONT size=2 face="serif">Date</FONT></B></div></td>
 </TR>
  <TR>
    <TD width="40%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="40%" align=left nowrap><div align="center"><FONT size=2 face="serif">/s/
    Stuart A. Rose</FONT></div></TD>
    <TD width="20%" align=left nowrap><FONT size=2 face="serif">Chairman of the
        Board</FONT> </TD>
    <TD width="40%" align=left nowrap><div align="center"><FONT size=2 face="serif">June 8, 2007</FONT></div></TD>
  </TR>
  <TR valign="bottom">
    <TD width="40%" align=center nowrap><FONT size=2 face="serif">(Stuart A.
        Rose)</FONT> </TD>
    <TD width="20%" align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(Chief
        Executive Officer)</FONT> </TD>
    <TD width="40%" align=left nowrap><div align="center"></div></TD>
  </TR>
  <TR>
    <TD width="40%" nowrap>&nbsp;</TD>
    <TD width="20%" nowrap>&nbsp;</TD>
    <TD width="40%" nowrap>&nbsp;</TD>
  </TR>
  <TR>
    <TD width="40%" nowrap>&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="40%"><div align="center"></div></TD>
  </TR>
  <TR valign="bottom">
    <TD width="40%" nowrap><div align="center"><FONT size=2 face="serif">/s/ Douglas L. Bruggeman</FONT></div></TD>
    <TD width="20%" align=left nowrap><FONT size=2 face="serif">Vice President,
        Finance and Treasurer</FONT> </TD>
    <TD width="40%" align=left nowrap><div align="center"><FONT size=2 face="serif">June 8, 2007</FONT></div></TD>
  </TR>
  <TR valign="bottom">
    <TD width="40%" align=center nowrap><FONT size=2 face="serif">(Douglas L.
        Bruggeman)</FONT> </TD>
    <TD width="20%" align=left nowrap>&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(Chief
        Financial Officer)</FONT> </TD>
    <TD width="40%" align=left nowrap>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<P align="center">
<FONT face="serif">36 </FONT></P>

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<TYPE>EX-31
<SEQUENCE>2
<FILENAME>c48942_ex31.htm
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<P align="right">
<B><FONT size=2 face="serif">Exhibit 31 </FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">CERTIFICATIONS </FONT></B></P>
<P align="left">
<FONT size=2 face="serif">I, Stuart A. Rose, certify that: </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">1.</FONT><FONT size=2 face="sans-serif"> </FONT><FONT size=2 face="serif">&nbsp;&nbsp;I have reviewed this quarterly report on Form 10-Q of REX Stores Corporation; </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">2.</FONT><FONT size=2 face="sans-serif"> </FONT><FONT size=2 face="serif">&nbsp;&nbsp;Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">3.</FONT><FONT size=2 face="sans-serif"> </FONT><FONT size=2 face="serif">&nbsp;&nbsp;Based on my knowledge, the financial statements, and other financial information included in this report, fairly
present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">4.</FONT><FONT size=2 face="sans-serif">&nbsp;&nbsp; </FONT><FONT size=2 face="serif">The registrant&#146;s other certifying officer and I are responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have: </FONT></P>
<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(a)</FONT><FONT size=2 face="sans-serif"> </FONT><FONT size=2 face="serif">Designed
          such disclosure controls and procedures, or caused such disclosure
          controls and procedures to be designed under our supervision, to ensure
          that material information relating to the registrant, including its
          consolidated subsidiaries, is made known to us by others within those
          entities, particularly during the period in which this report is being
          prepared; </FONT></P>
      <P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(b)</FONT><FONT size=2 face="sans-serif"> </FONT><FONT size=2 face="serif">Designed
          such internal control over financial reporting, or caused such internal
          control over financial reporting to be designed under our supervision,
          to provide reasonable assurance regarding the reliability of financial
          reporting and the preparation of financial statements for external
          purposes in accordance with generally accepted accounting principles; </FONT></P>
      <P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(c)</FONT><FONT size=2 face="sans-serif"> </FONT><FONT size=2 face="serif">Evaluated
          the effectiveness of the registrant&#146;s disclosure controls and
          procedures and presented in this report our conclusions about the effectiveness
          of the disclosure controls and procedures, as of the end of the period
          covered by this report based on such evaluation; and </FONT></P>
      <P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(d)
          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></P></td>
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<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">5.</FONT><FONT size=2 face="sans-serif">&nbsp;&nbsp; </FONT><FONT size=2 face="serif">The registrant&#146;s other certifying officer and I have disclosed, based on our most recent evaluation of internal
control over financial reporting, to the registrant&#146;s auditors and the audit committee of the registrant&#146;s board of directors (or persons performing the equivalent functions): </FONT></P>
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    <td><P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(a)</FONT><FONT size=2 face="sans-serif"> </FONT><FONT size=2 face="serif">All
          significant deficiencies and material weaknesses in the design or operation
          of internal control over financial reporting which are reasonably likely
          to adversely affect the registrant&#146;s ability to record, process,
          summarize and report financial information; and </FONT></P>
      <P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(b)</FONT><FONT size=2 face="sans-serif"> </FONT><FONT size=2 face="serif">Any
          fraud, whether or not material, that involves management or other employees
          who have a significant role in the registrant&#146;s internal control
    over financial reporting. </FONT></P></td>
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    <td width="50%">&nbsp;</td>
    <td width="50%"><FONT size=2 face="serif">Date: June 8, 2007 </FONT><BR>
      <BR>
      <FONT size=2 face="serif">/s/ Stuart A. Rose<br>
      Stuart A. Rose </FONT><BR>
      <FONT size=2 face="serif"><I>Chairman
      of the Board and </I></FONT><BR>
      <I><FONT size=2 face="serif">Chief Executive Officer</FONT></I></td>
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<P align="center">
<B><FONT size=2 face="serif">CERTIFICATIONS </FONT></B></P>
<P align="left">
<FONT size=2 face="serif">I, Douglas L. Bruggeman, certify that: </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">1.</FONT><FONT size=2 face="sans-serif">&nbsp;&nbsp; </FONT><FONT size=2 face="serif">I have reviewed this quarterly report on Form 10-Q of REX Stores Corporation; </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">2.</FONT><FONT size=2 face="sans-serif"> </FONT><FONT size=2 face="serif">&nbsp;&nbsp;Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material
fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">3.</FONT><FONT size=2 face="sans-serif"> </FONT><FONT size=2 face="serif">&nbsp;&nbsp;Based on my knowledge, the financial statements, and other financial information included in this report, fairly
present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">4.</FONT><FONT size=2 face="sans-serif"> </FONT><FONT size=2 face="serif">&nbsp;&nbsp;The registrant&#146;s other certifying officer and I are responsible for establishing and maintaining disclosure
controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have: </FONT></P>
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    <td><P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(a)
          Designed such disclosure controls and procedures, or caused such disclosure
          controls and procedures to be designed under our supervision, to ensure
          that material information relating to the registrant, including its
          consolidated subsidiaries, is made known to us by others within those
          entities, particularly during the period in which this report is being
          prepared; </FONT></P>
      <P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(b)
          Designed such internal control over financial reporting, or caused
          such internal control over financial reporting to be designed under
          our supervision, to provide reasonable assurance regarding the reliability
          of financial reporting and the preparation of financial statements
          for external purposes in accordance with generally accepted accounting
          principles; </FONT></P>
      <P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(c)
          Evaluated the effectiveness of the registrant&#146;s disclosure controls
          and procedures and presented in this report our conclusions about the
          effectiveness of the disclosure controls and procedures, as of the
          end of the period covered by this report based on such evaluation;
          and </FONT></P>
      <P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(d)
          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></P></td>
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<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">5.</FONT><FONT size=2 face="sans-serif"> </FONT><FONT size=2 face="serif">&nbsp;&nbsp;The registrant&#146;s other certifying officer and I have disclosed, based on our most recent evaluation of internal
control over financial reporting, to the registrant&#146;s auditors and the audit committee of the registrant&#146;s board of directors (or persons performing the equivalent functions): </FONT></P>
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    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(a)
          All significant deficiencies and material weaknesses in the design
          or operation of internal control over financial reporting which are
          reasonably likely to adversely affect the registrant&#146;s ability
          to record, process, summarize and report financial information; and </FONT></P>
      <P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(b)
          Any fraud, whether or not material, that involves management or other
          employees who have a significant role in the registrant&#146;s internal
    control over financial reporting. </FONT></P></td>
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    <td>&nbsp;</td>
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    <td width="50%">&nbsp;</td>
    <td width="50%"><FONT size=2 face="serif">Date: June 8, 2007 </FONT><BR>
      <BR>
      <FONT size=2 face="serif">/s/ Douglas L. Bruggeman<br>
      Douglas L. Bruggeman </FONT><BR>
      <I><FONT size=2 face="serif">Vice President, Finance, Treasurer and </FONT></I><BR>
      <I><FONT size=2 face="serif">Chief Financial Officer</FONT></I></td>
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</table>
<P align="left">&nbsp;</P>
<P align="left">&nbsp;</P>

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<TYPE>EX-32
<SEQUENCE>3
<FILENAME>c48942_ex32.htm
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<P align="right">
<B><FONT size=2 face="serif">Exhibit 32 </FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">REX Stores Corporation </FONT></B><BR>
<B><FONT size=2 face="serif">CERTIFICATION PURSUANT TO SECTION 906</FONT></B><BR>
<B><FONT size=2 face="serif">OF THE SARBANES-OXLEY ACT OF 2002</FONT></B><FONT size=2 face="serif"> </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The undersigned officers of REX Stores Corporation (the &#147;Company&#148;) hereby certify, to their knowledge, that the Company&#146;s Quarterly Report on Form 10-Q for the period ended April 30, 2007 which this
certificate accompanies, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained therein fairly presents, in all material respects, the financial condition and results
of operations of the Company. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version 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>
<P align="left">
<FONT size=2 face="serif">/s/ Stuart A. Rose <br>
Stuart A. Rose </FONT><BR>
<BR>
<FONT size=2 face="serif">/s/ Douglas L. Bruggeman<br>
Douglas L. Bruggeman </FONT><BR>
<BR>
<FONT size=2 face="serif">Dated: June 8, 2007 </FONT></P>

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