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<SEC-DOCUMENT>0000930413-08-005396.txt : 20080909
<SEC-HEADER>0000930413-08-005396.hdr.sgml : 20080909
<ACCEPTANCE-DATETIME>20080909162636
ACCESSION NUMBER:		0000930413-08-005396
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20080731
FILED AS OF DATE:		20080909
DATE AS OF CHANGE:		20080909

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:		081063183

	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>c54891_10q.htm
<TEXT>

<HTML>
<HEAD>
   <TITLE>c54891_10q.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing</TITLE>
</HEAD>

<BODY bgcolor="#ffffff">

<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>


<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<br>
____________________________
</FONT></B></P>
<P align="center">
<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" cellspacing="0" cellpadding="0">
  <tr>
    <td width="4%" valign="top"><font face=WINGDINGS>x</font> </td>
    <td width="96%" valign="top"><B><FONT size=2 face="serif">QUARTERLY REPORT
    PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 </FONT></B></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top"><B><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;      For the quarterly period ended
July 31, 2008</FONT></B></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="2" valign="top"><div align="center"><B><FONT size=2 face="serif">OR</FONT></B></div></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top"><font face=WINGDINGS>o</font> </td>
    <td valign="top"><B><FONT size=2 face="serif">TRANSITION REPORT PURSUANT
    TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 </FONT></B></td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;</td>
  </tr>
  <tr>
    <td valign="top">&nbsp;</td>
    <td valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <B><FONT size=2 face="serif">For
    the transition period from _________ to _________</FONT></B></td>
  </tr>
</table>
<P align="left">&nbsp;</P>
<div align="center"><B><FONT size=2 face="serif">Commission File Number 001-09097<br>
  </FONT></B><B><FONT face="serif">____________________________</FONT></B></div>
<P align="center"><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>
  <br>
  <B><FONT face="serif">____________________________</FONT></B>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0>
<TR valign="bottom">
  <TD align=center width=50% nowrap><B><FONT size=2 face="serif">Delaware</FONT></B>&nbsp;  </TD>
  <TD align=center nowrap>
<B><FONT size=2 face="serif">31-1095548</FONT></B>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=center width=50% nowrap>
<B><FONT size=2 face="serif">(State or other jurisdiction of</FONT></B>&nbsp;  </TD>
  <TD align=center nowrap>
<B><FONT size=2 face="serif">(I.R.S. Employer</FONT></B>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=center width=50% nowrap>
<B><FONT size=2 face="serif">incorporation or organization)</FONT></B>&nbsp;  </TD>
  <TD align=center nowrap>
<B><FONT size=2 face="serif">Identification Number)</FONT></B>&nbsp;  </TD>
</TR>
<TR>
  <TD align="center">&nbsp;  </TD>
  <TD align="center">&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=center nowrap>
<B><FONT size=2 face="serif">2875 Needmore Road, Dayton, Ohio</FONT></B>&nbsp;  </TD>
  <TD align=center width=50% nowrap>
<B><FONT size=2 face="serif">45414</FONT></B>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=center nowrap><B><FONT size=2 face="serif">(Address of principal executive offices)</FONT></B>&nbsp;  </TD>
  <TD align=center width=50% nowrap>
<B><FONT size=2 face="serif">(Zip Code)</FONT></B>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=2 align="center">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD colspan=2 align=center nowrap><B><FONT size=2 face="serif">(937)</FONT></B> <B><FONT size=2 face="serif">276-3931</FONT></B>&nbsp;    </TD>
  </TR>
<TR valign="bottom">
  <TD align=center nowrap colspan=2><B><FONT size=2 face="serif">(Registrant's telephone number, including area code)</FONT></B>&nbsp;  </TD>
</TR>
</TABLE>
<div align="center"><B><FONT face="serif">____________________________</FONT></B><BR>
</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.</FONT><br>
<FONT size=2 face="serif">Yes (X) No ( ) </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, a non-accelerated filer or a smaller reporting company. See definition of &#147;large accelerated filer&#148;,
&#147;accelerated filer&#148; and &#147;smaller reporting company&#148; in Rule 12b-2 of the Exchange Act.</FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="44%"><FONT size=2 face="serif">Large accelerated filer ( )</FONT></td>
    <td width="56%"><FONT size=2 face="serif">Accelerated filer (X) </FONT></td>
  </tr>
  <tr>
    <td><FONT size=2 face="serif">Non-accelerated filer ( ) (Do not check if
    a smaller reporting company) </FONT></td>
    <td><FONT size=2 face="serif">Smaller reporting company ( ) </FONT></td>
  </tr>
</table>
<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). <br>
Yes ( ) No (X) </FONT></P>
<P align="left">
<FONT size=2 face="serif">At the close of business on September 8, 2008 the registrant
had 10,087,216 shares of Common Stock, par value &#36;.01 per share, outstanding. </FONT></P>

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



<P align="left" style="page-break-before:always"></P><PAGE>

<P align="center">
<FONT face="serif">REX STORES CORPORATION AND SUBSIDIARIES </FONT></P>
<P align="center">
<FONT face="serif">INDEX </FONT></P>
<TABLE border=0 width=100% cellspacing=0 cellpadding=0>
<TR valign="bottom">
  <TD align=left width=10% nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=73% nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=center width=12% nowrap>
    <div align="right"><FONT face="serif">Page</FONT>&nbsp;  </div></TD>
</TR>
<TR valign="bottom">
  <TD align=left width=10% nowrap>
<FONT face="serif">PART I.</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=73% nowrap>
<FONT face="serif">FINANCIAL INFORMATION</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=12% nowrap>&nbsp;  </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>
</TR>
<TR valign="bottom">
  <TD align=left width=10% nowrap>
<FONT face="serif">Item 1.</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=73% nowrap>
<FONT face="serif">Financial Statements (Unaudited)</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=12% nowrap>&nbsp;  </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=right nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left width=10% nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=73% nowrap>
<FONT face="serif">Consolidated Condensed Balance Sheets</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=right width=12% nowrap>
<FONT face="serif">3</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left width=10% nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=73% nowrap>
<FONT face="serif">Consolidated Condensed Statements of Income</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=right width=12% nowrap>
<FONT face="serif">4</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left width=10% nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=73% nowrap>
<FONT face="serif">Consolidated Condensed Statements of Shareholders' Equity</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=right width=12% nowrap>
<FONT face="serif">5</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left width=10% nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=73% nowrap>
<FONT face="serif">Consolidated Condensed Statements of Cash Flows</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=right width=12% nowrap>
<FONT face="serif">7</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left width=10% nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=73% nowrap>
<FONT face="serif">Notes to Consolidated Condensed Financial Statements</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=right width=12% nowrap>
<FONT face="serif">8</FONT></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>
</TR>
<TR valign="bottom">
  <TD align=left width=10% nowrap>
<FONT face="serif">Item 2.</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=73% nowrap>
<FONT face="serif">Management's Discussion and Analysis of Financial Condition</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=12% nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left width=10% nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=73% nowrap>
<FONT face="serif">and Results of Operations</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=right width=12% nowrap>
<FONT face="serif">29</FONT></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=right nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left width=10% nowrap>
<FONT face="serif">Item 3.</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=73% nowrap>
<FONT face="serif">Quantitative and Qualitative Disclosures About Market Risk</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=right width=12% nowrap>
<FONT face="serif">42</FONT></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=right nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left width=10% nowrap>
<FONT face="serif">Item 4.</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=73% nowrap>
<FONT face="serif">Controls and Procedures</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=right width=12% nowrap>
<FONT face="serif">43</FONT></TD>
</TR>
<TR>
  <TD colspan=5>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left width=85% nowrap colspan=3>
<FONT face="serif">PART II. OTHER INFORMATION</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=12% nowrap>&nbsp;  </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=right nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left width=10% nowrap>
<FONT face="serif">Item 1.</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=73% nowrap>
<FONT face="serif">Legal Proceedings</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=right width=12% nowrap>
<FONT face="serif">43</FONT></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=right nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left width=10% nowrap>
<FONT face="serif">Item 1A.</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=73% nowrap>
<FONT face="serif">Risk Factors</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=right width=12% nowrap>
<FONT face="serif">43</FONT></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=right nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left width=10% nowrap>
<FONT face="serif">Item 2.</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=73% nowrap>
<FONT face="serif">Unregistered Sales of Equity Securities and Use of Proceeds</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=right width=12% nowrap>
<FONT face="serif">44</FONT></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=right nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left width=10% nowrap>
<FONT face="serif">Item 6.</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=left width=73% nowrap>
<FONT face="serif">Exhibits</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=right width=12% nowrap>
<FONT face="serif">44</FONT></TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT face="serif">2</FONT></P>

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



<P align="left" style="page-break-before:always"></P><PAGE>

<P align="center">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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></P>
<P align="left">
<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=left nowrap>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD colspan="2" align=center nowrap>
    <FONT size=2 face="serif">July 31,</FONT>  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap>
    <FONT size=2 face="serif">January 31,</FONT>  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap>
    <FONT size=2 face="serif">July 31,</FONT>  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
    <FONT size=2 face="serif">2008</FONT>  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
    <FONT size=2 face="serif">2008</FONT>  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
    <FONT size=2 face="serif">2007</FONT>  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="10" align=center nowrap><FONT size=2 face="serif">(In Thousands)</FONT> </TD>
  <TD align=center nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">Assets</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=center nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=center nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=center nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align="center" bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=center nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=center bgcolor="#E5FFFF">&nbsp;</TD>
  <TD align=center nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align="center" bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=center nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=center nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=center nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <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=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap bgcolor="#E5FFFF">
 &nbsp; &nbsp;<FONT size=2 face="serif">Cash and cash equivalents</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">&#36;</FONT></TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">79,608</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF"><FONT size=2 face="serif">&#36;</FONT></TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">127,716</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF"><FONT size=2 face="serif">&#36;</FONT></TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">90,293</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Restricted cash</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">2,774</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">-</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">-</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap bgcolor="#E5FFFF">
 &nbsp; &nbsp;<FONT size=2 face="serif">Accounts receivable, net</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">3,509</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">1,877</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">3,128</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
 &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">-</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">573</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">3,851</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap bgcolor="#E5FFFF">
 &nbsp; &nbsp;<FONT size=2 face="serif">Inventory, net</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">59,457</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">49,933</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">84,256</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
 &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">2,432</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">2,492</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">2,932</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap bgcolor="#E5FFFF">
 &nbsp; &nbsp;<FONT size=2 face="serif">Deferred taxes</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10,312</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">10,599</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">6,562</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
 &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">158,092</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">193,190</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">191,022</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">Property and equipment, net</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">202,193</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">136,505</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">78,575</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&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">92</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">-</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">1,064</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">Other assets</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">13,578</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">14,803</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">23,595</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&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=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">1,322</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">Deferred taxes</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">21,929</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">21,929</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">23,533</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT size=2 face="serif">Equity method investments</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">40,505</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">38,748</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">28,212</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">Investments in debt instruments</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">-</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">-</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">32,675</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT size=2 face="serif">Restricted investments</FONT></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">2,496</FONT>  </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">2,481</FONT>  </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">2,443</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap bgcolor="#E5FFFF">
 &nbsp; &nbsp;<FONT size=2 face="serif">Total assets</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT></TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">440,207</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT></TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">408,978</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT></TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">382,441</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT size=2 face="serif">Liabilities and shareholders&#146; 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=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">Current liabilities:</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Current portion of long-term debt and capital lease obligations</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">6,609</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">4,101</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">2,183</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>

<TR valign="bottom">
  <TD align=left nowrap bgcolor="#E5FFFF">
 &nbsp; &nbsp;<FONT size=2 face="serif">Accounts payable, trade</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">49,688</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">27,253</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">42,923</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Deferred income</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">13,144</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">14,448</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">15,085</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap bgcolor="#E5FFFF">
 &nbsp; &nbsp;<FONT size=2 face="serif">Deferred gain on sale and leaseback</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">1,389</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">1,436</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">2,068</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Other current liabilities</FONT></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">7,140</FONT>  </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">13,617</FONT>  </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">9,381</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap bgcolor="#E5FFFF">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total current liabilities</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">77,970</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">60,855</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">71,640</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <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=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap bgcolor="#E5FFFF">
 &nbsp; &nbsp;<FONT size=2 face="serif">Long-term debt and capital lease obligations</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">62,127</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">35,224</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">19,122</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Deferred income</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">15,173</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">17,172</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">17,653</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap bgcolor="#E5FFFF">
 &nbsp; &nbsp;<FONT size=2 face="serif">Deferred gain on sale and leaseback</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">3,746</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">4,493</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">6,163</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Derivative financial instruments</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">839</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">2,601</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">-</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap bgcolor="#E5FFFF">
 &nbsp; &nbsp;<FONT size=2 face="serif">Other</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,152</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">4,313</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">940</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total long-term liabilities</FONT></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">83,037</FONT>  </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">63,803</FONT>  </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">43,878</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">Minority interest in consolidated subsidiaries</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">27,539</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">27,729</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">11,764</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT size=2 face="serif">Shareholders&#146; 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=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap bgcolor="#E5FFFF">
 &nbsp; &nbsp;<FONT size=2 face="serif">Common stock</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">299</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">298</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">298</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
 &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">142,584</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">141,357</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">143,214</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap bgcolor="#E5FFFF">
 &nbsp; &nbsp;<FONT size=2 face="serif">Retained earnings</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">288,361</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">285,629</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">265,106</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Treasury stock</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(179,583</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(170,693</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(163,176</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap bgcolor="#E5FFFF">
 &nbsp; &nbsp;<FONT size=2 face="serif">Accumulated other comprehensive income, net of tax</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">-</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">-</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">9,717</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Total shareholders' equity</FONT></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">251,661</FONT>  </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">256,591</FONT>  </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">255,159</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap bgcolor="#E5FFFF">
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total liabilities and shareholders' equity</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT></TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">440,207</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT></TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">408,978</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT></TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">382,441</FONT>  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
</TR>
</TABLE>
<BR>
<P align="left">
<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 align="center" width="100%" size=4>



<P align="left" style="page-break-before:always"></P><PAGE>

<P align="left">
<B><FONT size=2 face="serif">REX STORES CORPORATION AND SUBSIDIARIES </FONT></B><BR>
<B><FONT face="serif">Consolidated Condensed Statements Of Income </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=left nowrap>&nbsp;  </TD>
  <TD align="center">&nbsp;  </TD>
  <TD colspan="5" align=center nowrap><FONT size=2 face="serif">Three Months</FONT></TD>
  <TD width="5%" align=center nowrap>&nbsp;  </TD>
  <TD colspan="5" align=center nowrap><FONT size=2 face="serif">Six Months</FONT></TD>
  <TD width="2%" align=center>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align="center">&nbsp;  </TD>
  <TD colspan="5" align=center nowrap><FONT size=2 face="serif">Ended</FONT></TD>
  <TD width="5%" align=center nowrap>&nbsp;  </TD>
  <TD colspan="5" align=center nowrap><FONT size=2 face="serif">Ended</FONT></TD>
  <TD width="2%" align=center>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align="center">&nbsp;  </TD>
  <TD colspan="5" align=center nowrap STYLE="border-bottom:1px solid #000000;"><FONT size=2 face="serif">July 31,</FONT></TD>
  <TD width="5%" align=center nowrap>&nbsp;  </TD>
  <TD colspan="5" align=center nowrap STYLE="border-bottom:1px solid #000000;"><FONT size=2 face="serif">July 31,</FONT></TD>
  <TD width="2%" align=center>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=14>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
    <FONT size=2 face="serif">2008</FONT>  </TD>
  <TD width="5%" align=center nowrap>&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
    <FONT size=2 face="serif">2007</FONT>  </TD>
  <TD width="5%" align=center nowrap>&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
    <FONT size=2 face="serif">2008</FONT>  </TD>
  <TD width="5%" align=center nowrap>&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
    <FONT size=2 face="serif">2007</FONT>  </TD>
  <TD width="2%" align=center>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align="center">&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap colspan=10>
<FONT size=2 face="serif">(In Thousands, Except Per Share Amounts)</FONT>  </TD>
  <TD width="2%" align=center>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=14>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT size=2 face="serif">Net sales and revenue</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">67,370</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">47,915</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">114,198</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">96,485</FONT>  </TD>
  <TD width="2%" align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT size=2 face="serif">Cost of sales (excluding retail segment depreciation)</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 size=2 face="serif">54,078</FONT>  </TD>
  <TD width="5%" align=left 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 size=2 face="serif">32,694</FONT>  </TD>
  <TD width="5%" align=left 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 size=2 face="serif">87,531</FONT>  </TD>
  <TD width="5%" align=left 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 size=2 face="serif">65,867</FONT>  </TD>
  <TD width="2%" align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <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">13,292</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">15,221</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">26,667</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">30,618</FONT>  </TD>
  <TD width="2%" align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <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">(13,192</FONT>  </TD>
  <TD width="5%" align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(14,690</FONT>  </TD>
  <TD width="5%" align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(27,524</FONT>  </TD>
  <TD width="5%" align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(29,253</FONT>  </TD>
  <TD width="2%" align=left>
<FONT size=2 face="serif">)</FONT></TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <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">519</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">1,976</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">1,373</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">3,269</FONT>  </TD>
  <TD width="2%" align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <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">(897</FONT>  </TD>
  <TD width="5%" align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(34</FONT>  </TD>
  <TD width="5%" align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(1,018</FONT>  </TD>
  <TD width="5%" align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(108</FONT>  </TD>
  <TD width="2%" align=left>
<FONT size=2 face="serif">)</FONT></TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <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">-</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">-</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">-</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(607</FONT>  </TD>
  <TD width="2%" align=left>
<FONT size=2 face="serif">)</FONT></TD>
</TR>
<TR valign="bottom">
  <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">-</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">72</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">-</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">62</FONT>  </TD>
  <TD width="2%" align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT size=2 face="serif">Equity in income of unconsolidated ethanol affiliates</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">874</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">412</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">1,922</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">1,522</FONT>  </TD>
  <TD width="2%" align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<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">-</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">3,406</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">670</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">10,139</FONT>  </TD>
  <TD width="2%" align=left>&nbsp;  </TD>
</TR>

<TR valign="bottom">
  <TD align=left nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif"></FONT><FONT size=2 face="serif">Unrealized and realized
gains on derivative financial instruments, net</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">960</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">-</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">1,428</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">-</FONT>  </TD>
  <TD width="2%" align=left bgcolor="#E5FFFF">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT size=2 face="serif">Income from continuing operations before provision for</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="2%" align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT size=2 face="serif">income taxes, minority interest and discontinued operations</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">1,556</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">6,363</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">3,518</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">15,642</FONT>  </TD>
  <TD width="2%" align=left>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">Provision for income taxes</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">468</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">2,563</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">994</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">6,168</FONT>  </TD>
  <TD width="2%" align=left bgcolor="#E5FFFF">&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 STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(36</FONT>  </TD>
  <TD width="5%" align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD align=right nowrap STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">54</FONT>  </TD>
  <TD width="5%" align=left 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 size=2 face="serif">187</FONT>  </TD>
  <TD width="5%" align=left 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 size=2 face="serif">(41</FONT>  </TD>
  <TD width="2%" align=left>
<FONT size=2 face="serif">)</FONT></TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">Income from continuing operations</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">1,052</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">3,854</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">2,711</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">9,433</FONT>  </TD>
  <TD width="2%" align=left bgcolor="#E5FFFF">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT size=2 face="serif">Loss from discontinued operations, net of tax</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(41</FONT>  </TD>
  <TD width="5%" align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(587</FONT>  </TD>
  <TD width="5%" align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(173</FONT>  </TD>
  <TD width="5%" align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(1,510</FONT>  </TD>
  <TD width="2%" align=left>
<FONT size=2 face="serif">)</FONT></TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">Gain on disposal of discontinued operations, net of tax</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">195</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">2,543</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">194</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">5,421</FONT>  </TD>
  <TD width="2%" align=left bgcolor="#E5FFFF">&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=14>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">Net income</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">1,206</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">5,810</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">2,732</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">13,344</FONT>  </TD>
  <TD width="2%" align=left bgcolor="#E5FFFF">&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=14>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">Weighted average shares outstanding &#150; basic</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">10,510</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">10,625</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">10,618</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">10,548</FONT>  </TD>
  <TD width="2%" align=left bgcolor="#E5FFFF">&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=14>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">Basic income per share from continuing operations</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">0.10</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">0.36</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">0.26</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">0.90</FONT>  </TD>
  <TD width="2%" align=left bgcolor="#E5FFFF">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT size=2 face="serif">Basic loss 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">-</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(0.05</FONT>  </TD>
  <TD width="5%" align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(0.02</FONT>  </TD>
  <TD width="5%" align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(0.14</FONT>  </TD>
  <TD width="2%" align=left>
<FONT size=2 face="serif">)</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">Basic income per share on disposal of discontinued operations</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.01</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.24</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.02</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.51</FONT>  </TD>
  <TD width="2%" align=left bgcolor="#E5FFFF">&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 align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">0.11</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">0.55</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">0.26</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">1.27</FONT>  </TD>
  <TD width="2%" align=left>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=14>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">Weighted average shares outstanding &#150; diluted</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">11,146</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">11,989</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">11,396</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;">&nbsp;  </TD>
  <TD align=right bgcolor="#E5FFFF" STYLE="border-bottom:3px double #000000;" nowrap>
<FONT size=2 face="serif">11,911</FONT>  </TD>
  <TD width="2%" align=left bgcolor="#E5FFFF">&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=14>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">Diluted income per share from continuing operations</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">0.09</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">0.32</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">0.24</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=left nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF">
<FONT size=2 face="serif">0.79</FONT>  </TD>
  <TD width="2%" align=left bgcolor="#E5FFFF">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT size=2 face="serif">Diluted loss 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">-</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(0.05</FONT>  </TD>
  <TD width="5%" align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(0.02</FONT>  </TD>
  <TD width="5%" align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(0.13</FONT>  </TD>
  <TD width="2%" align=left>
<FONT size=2 face="serif">)</FONT></TD>
</TR>

<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap bgcolor="#E5FFFF"><FONT size=2 face="serif">Diluted income per share on
    disposal of discontinued</FONT> <FONT size=2 face="serif">operations</FONT></TD>
  <TD bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.02</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" style="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.21</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.02</FONT>  </TD>
  <TD width="5%" align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">0.46</FONT>  </TD>
  <TD width="2%" align=left bgcolor="#E5FFFF">&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT size=2 face="serif">Diluted net income per share</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">0.11</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">0.48</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">0.24</FONT>  </TD>
  <TD width="5%" align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">1.12</FONT>  </TD>
  <TD width="2%" align=left>&nbsp;  </TD>
</TR>
</TABLE>
<BR>
<P align="left">
<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 align="center" width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>

<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=left nowrap>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=center nowrap colspan=4>
<FONT size=2 face="serif">Common Shares</FONT></TD>
  <TD width="4%" align="center">&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="4%" align="center">&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="4%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap>&nbsp;    </TD>
  <TD width="4%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap>&nbsp;    </TD>
  <TD width="4%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap>
    <FONT size=2 face="serif">Total</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=center nowrap colspan=4 STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Issued</FONT></TD>
  <TD width="4%" align="center">&nbsp;  </TD>
  <TD align=center nowrap colspan=5 STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Treasury</FONT>  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="4%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap>
    <FONT size=2 face="serif">Paid-in</FONT></TD>
  <TD width="4%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap>
    <FONT size=2 face="serif">Retained</FONT></TD>
  <TD width="4%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap>
    <FONT size=2 face="serif">Shareholders'</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=center nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Shares</FONT></TD>
  <TD width="4%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
    <FONT size=2 face="serif">Amount</FONT></TD>
  <TD width="4%" align="center">&nbsp;  </TD>
  <TD align=center nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Shares</FONT>  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="4%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
    <FONT size=2 face="serif">Amount</FONT>  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="4%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
    <FONT size=2 face="serif">Capital</FONT></TD>
  <TD width="4%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
    <FONT size=2 face="serif">Earnings</FONT></TD>
  <TD width="4%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
    <FONT size=2 face="serif">Equity</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD>&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 width="4%">&nbsp;  </TD>
  <TD align=center nowrap colspan=5>
<FONT size=2 face="serif">(In Thousands)</FONT>  </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 width="4%">&nbsp;  </TD>
  <TD align=right 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">Balance at January 31, 2008</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">29,813</FONT></TD>
  <TD width="4%">&nbsp;  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">298</FONT></TD>
  <TD width="4%">&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">19,094</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="4%">&nbsp;  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(170,693</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD width="4%">&nbsp;  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">141,357</FONT></TD>
  <TD width="4%">&nbsp;  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">285,629</FONT></TD>
  <TD width="4%">&nbsp;  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">256,591</FONT>  </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 align=left nowrap>&nbsp;  </TD>
  <TD width="4%">&nbsp;  </TD>
  <TD align=right 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>
  <TD width="4%">&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 width="4%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">2,732</FONT></TD>
  <TD width="4%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">2,732</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT size=2 face="serif">Treasury stock acquired</FONT></TD>
  <TD>&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 width="4%">&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">706</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">(9,052</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=left nowrap>&nbsp;  </TD>
  <TD width="4%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </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">(9,052</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">Stock based compensation</FONT></TD>
  <TD>&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 width="4%">&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>
  <TD width="4%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">686</FONT></TD>
  <TD width="4%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </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">686</FONT>  </TD>
  <TD align=left nowrap>&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 width="4%">&nbsp;  </TD>
  <TD align=right 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>
  <TD width="4%">&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 width="4%">&nbsp;  </TD>
  <TD align=right 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" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and related tax effects</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=right nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">40</FONT></TD>
  <TD width="4%">&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 size=2 face="serif">1</FONT></TD>
  <TD width="4%">&nbsp;  </TD>
  <TD align=right nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(18</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD width="4%">&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 size=2 face="serif">162</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="4%">&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 size=2 face="serif">541</FONT></TD>
  <TD width="4%">&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 size=2 face="serif">-</FONT></TD>
  <TD width="4%">&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 size=2 face="serif">704</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT size=2 face="serif">Balance at July 31, 2008</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">29,853</FONT></TD>
  <TD width="4%">&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">299</FONT></TD>
  <TD width="4%">&nbsp;  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">19,782</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="4%">&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">(179,583</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD width="4%">&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">142,584</FONT></TD>
  <TD width="4%">&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">288,361</FONT></TD>
  <TD width="4%">&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">251,661</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
</TABLE>
<BR>
<P align="left">
<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 size="2" face="serif">5</FONT></P>

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



<P align="left" style="page-break-before:always"></P><PAGE>

<P align="left">
<B><FONT face="serif">REX STORES CORPORATION AND SUBSIDIARIES <br>
Consolidated Condensed Statements Of Shareholders&#146; Equity <br>
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 colspan=4 align=center nowrap><FONT size=2 face="serif">Common Shares</FONT>  </TD>
  <TD width="3%" align=center nowrap>&nbsp;</TD>
  <TD align=center nowrap>&nbsp;</TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width=3% align="center">&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width=3% align="center">&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width=3% align="center">&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width=3% align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap>
<FONT size=2 face="serif">Accumulated</FONT>&nbsp;  </TD>
  <TD width=3% align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap>
    <FONT size=2 face="serif">Total</FONT>  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=center nowrap colspan=4 STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Issued</FONT>&nbsp;  </TD>
  <TD width=3% align="center">&nbsp;  </TD>
  <TD align=center nowrap colspan=5 STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Treasury</FONT>  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap>
<FONT size=2 face="serif">Paid-in</FONT>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap>
    <FONT size=2 face="serif">Retained</FONT>  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap>
<FONT size=2 face="serif">Comprehensive</FONT>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap>
    <FONT size=2 face="serif">Shareholders'</FONT>  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=center nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Shares</FONT>&nbsp;  </TD>
  <TD width=3% align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Amount</FONT>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD align=center nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Shares</FONT>  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
    <FONT size=2 face="serif">Amount</FONT>  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Capital</FONT>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
    <FONT size=2 face="serif">Earnings</FONT>  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">Income</FONT>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
    <FONT size=2 face="serif">Equity</FONT>  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD align=center nowrap colspan=5>
<FONT size=2 face="serif">(In Thousands)</FONT>  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap><FONT size=2 face="serif">Balance at</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap><FONT size=2 face="serif">January 31, 2007</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">29,513</FONT>  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">295</FONT>  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">19,089</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(161,092</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">139,337</FONT>  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">252,249</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap><FONT size=2 face="serif">&#36;</FONT> </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">-</FONT>  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">230,789</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=27>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap><FONT size=2 face="serif">Net income</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">13,344</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">13,344</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=27>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap><FONT size=2 face="serif">Cumulative effect</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&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 size=2 face="serif">of adopting FIN 48</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&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>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&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>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=27>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap><FONT size=2 face="serif">Treasury stock</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&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 size=2 face="serif">acquired</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">195</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(3,780</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(3,780</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=27>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap><FONT size=2 face="serif">Stock based</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&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 size=2 face="serif">compensation</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">717</FONT>  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">717</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=27>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap><FONT size=2 face="serif">Stock options</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&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 size=2 face="serif">exercised and</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&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 size=2 face="serif">related tax effects</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">238</FONT>  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">3</FONT>  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(198</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">1,696</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">3,160</FONT>  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">4,859</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=27>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap><FONT size=2 face="serif">Minority interest</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&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 size=2 face="serif">distribution</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(200</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(200</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=27>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap><FONT size=2 face="serif">Unrealized holding</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&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 size=2 face="serif">gains, net of tax</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=right nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">-</FONT>  </TD>
  <TD width="3%">&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 size=2 face="serif">-</FONT>  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">-</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&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 size=2 face="serif">-</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&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 size=2 face="serif">-</FONT></TD>
  <TD width="3%">&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 size=2 face="serif">-</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&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 size=2 face="serif">9,717</FONT>  </TD>
  <TD width="3%">&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 size=2 face="serif">9,717</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=27>&nbsp;  </TD>
</TR>

<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap><FONT size=2 face="serif">Balance at July 31, 2007</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">29,751</FONT>  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">298</FONT></TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">19,086</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">(163,176</FONT>  </TD>
  <TD align=left valign="middle" nowrap>
<FONT size=2 face="serif">)</FONT>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">143,214</FONT></TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">265,106</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">9,717</FONT>  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">255,159</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
</TABLE>
<BR>
<P align="left">
<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 size="2" face="serif">6</FONT></P>

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



<P align="left" style="page-break-before:always"></P><PAGE>

<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=left nowrap>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD colspan="6" align=center nowrap>
    <FONT size=2 face="serif">Six Months Ended</FONT>  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD colspan="6" align=center nowrap STYLE="border-bottom:1px solid #000000;"><FONT size=2 face="serif">July 31,</FONT>  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
    <FONT size=2 face="serif">2008</FONT>  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
    <FONT size=2 face="serif">2007</FONT>  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap colspan=5>
<FONT size=2 face="serif">(In Thousands)</FONT>  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT size=2 face="serif">Cash flows from operating activities:</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>
</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><FONT size=2 face="serif">&#36;</FONT></TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">2,732</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">13,344</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <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=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>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Depreciation and amortization</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">2,075</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">1,501</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Income from equity method investments</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(1,922</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(1,522</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;<FONT size=2 face="serif">Income from synthetic fuel investments</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(670</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=right nowrap colspan=2>
<FONT size=2 face="serif">(10,139</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Gain on disposal of real estate and property and equipment</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(228</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(8,992</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;<FONT size=2 face="serif">Dividends received from equity method investees</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">400</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">525</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Deferred income</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(4,097</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(2,772</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;<FONT size=2 face="serif">Unrealized gains on derivative financial instruments</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(1,334</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left 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;<FONT size=2 face="serif">Other</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">537</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">(27</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;<FONT size=2 face="serif">Deferred income tax</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">287</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">(616</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">Changes in assets and 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>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Accounts receivable</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(1,632</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(1,153</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Inventory</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(9,524</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=right nowrap colspan=2>
<FONT size=2 face="serif">(14,178</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;<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">432</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">(17</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Other long term assets</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">1,225</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">(9,609</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;<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">18,016</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">16,318</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Other liabilities</FONT></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">(9,972</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></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">(476</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT size=2 face="serif">Net cash used in operating activities</FONT></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">(3,675</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=right nowrap colspan=2 STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(17,813</FONT>  </TD>
  <TD align=left valign="middle" nowrap>
<FONT size=2 face="serif">)</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT size=2 face="serif">Cash flows from investing activities:</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>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Capital expenditures</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(61,681</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=right nowrap colspan=2>
<FONT size=2 face="serif">(15,203</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Proceeds from sale of synthetic fuel investments</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">1,243</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">15,126</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Purchase of note receivable</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">-</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">(3,000</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Proceeds from sale of real estate and property and equipment</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">1,107</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">79,723</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Restricted cash</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(2,774</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left 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;<FONT size=2 face="serif">Restricted investments</FONT></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">(15</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></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">(37</FONT>  </TD>
  <TD align=left valign="middle" nowrap>
<FONT size=2 face="serif">)</FONT></TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT size=2 face="serif">Net cash (used in) provided by investing activities</FONT></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">(62,120</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></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">76,609</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT size=2 face="serif">Cash flows from financing activities:</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>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Payments of long-term debt and capital lease obligations</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(2,233</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=right nowrap colspan=2>
<FONT size=2 face="serif">(17,593</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Proceeds from long-term debt</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">28,722</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">4,984</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Stock options exercised</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">332</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">4,859</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=2 face="serif">Treasury stock acquired</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(9,052</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(3,780</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;<FONT size=2 face="serif">Realized losses on derivative financial instruments</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(94</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left 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;<FONT size=2 face="serif">Excess tax benefits from stock option exercises</FONT></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">12</FONT>  </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">19</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT size=2 face="serif">Net cash provided by (used in) financing activities</FONT></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">17,687</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=right nowrap colspan=2 STYLE="border-bottom:1px solid #000000;">
<FONT size=2 face="serif">(11,511</FONT>  </TD>
  <TD align=left valign="middle" nowrap>
<FONT size=2 face="serif">)</FONT></TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT size=2 face="serif">Net (decrease) increase in cash and cash equivalents</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">(48,108</FONT>  </TD>
  <TD align=left nowrap>
<FONT size=2 face="serif">)</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size=2 face="serif">47,285</FONT>  </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, beginning of period</FONT></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">127,716</FONT>  </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">43,008</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT size=2 face="serif">Cash and cash equivalents, end of period</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT></TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">79,608</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">&#36;</FONT></TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size=2 face="serif">90,293</FONT>  </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">Non cash investing activities &#150; Accrued capital expenditures</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">4,419</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">3,351</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT size=2 face="serif">Non cash investing activities &#150; Assets acquired by capital leases</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">2,922</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">-</FONT>  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
</TR>
</TABLE>
<BR>
<P align="left">
<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 size="2" face="serif">7</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>

<P align="center">
<B><FONT face="serif">REX STORES CORPORATION AND SUBSIDIARIES<br>
</FONT></B>
<B><FONT face="serif">NOTES TO UNAUDITED CONSOLIDATED CONDENSED FINANCIAL STATEMENTS <br>
</FONT></B><B><FONT size=2 face="serif">July
31, 2008 </FONT></B></P>
<P align="left">
<B><FONT size="2" face="serif">Note 1. </FONT></B><font size="2"><B><I><FONT face="serif">Consolidated Condensed Financial Statements</FONT></I></B> </font></P>
<P align="left">
<font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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, 2008 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, 2008 (fiscal year 2007). 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, 2008. 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">
<font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 and majority
owned subsidiaries and all variable interest entities where the Company has been determined to be the primary beneficiary. During the second quarter of fiscal year 2007, the Company acquired additional membership units giving it a majority ownership
interest in Levelland Hockley County Ethanol, LLC (&#147;Levelland Hockley&#148;). Levelland Hockley 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. Levelland Hockley commenced operations during the first quarter of fiscal year 2008 and,
therefore, is no longer a development stage enterprise.</font></P>
<P align="left">
<font size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During the third quarter of fiscal year 2007, the Company acquired a majority ownership interest in One Earth Energy, LLC (&#147;One Earth&#148;). The Company includes the results of operations of One
Earth in its Consolidated Condensed Statement of Income on a delayed basis of one month.</font></P>
<P align="left">
<font size="2"><B><FONT face="serif">Note 2. <I>Accounting Policies</I></FONT></B></font></P>
<P align="left">
<FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 2007 Annual Report
on Form 10-K. While management believes that the </FONT></P>
<P align="center">
<FONT size="2" face="serif">8</FONT></P>

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<P align="left" style="page-break-before:always"></P><font size="2"><PAGE>

</font><P align="left">
<FONT size="2" face="serif">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 accomplished at fiscal year end. Examples of such estimates include management bonuses, inventory reserves, the fair value of
derivative financial instruments, reserves for litigation 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">
<font size="2"><B><FONT face="serif">Revenue Recognition</FONT></B></font></P>
<P align="left">
<FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company recognizes sales of retail products upon receipt by the customer. The Company will honor returns from retail customers within seven days from the date of sale. The Company establishes liabilities for estimated
returns at the point of sale. Such liabilities are immaterial for all periods presented. The Company sells retail product service contracts covering periods beyond the normal manufacturers&#146; warranty periods, usually with terms of coverage
(including manufacturers&#146; warranty periods) of between 12 to 60 months. Contract revenues and sales commissions are deferred and amortized on a straight-line basis over the life of the contracts after the expiration of applicable
manufacturers&#146; warranty periods. Amortization of deferred contract revenues is included in net sales and revenue while amortization of deferred sales commissions is included in selling, general and administrative expenses. The Company retains
the obligation to perform warranty service and such costs are charged to operations as incurred. </FONT></P>
<P align="left">
<FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company recognizes sales from the production of ethanol and distillers grains when title transfers to customers, generally upon shipment from our plant. Shipping and handling charges to ethanol customers are included in net
sales and revenue.</FONT></P>
<P align="left">
<FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 10 for a further discussion of synthetic fuel partnership sales. </FONT></P>
<P align="left">
<font size="2"><B><FONT face="serif">Cost of Sales</FONT></B></font></P>
<P align="left">
<FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retail 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 retail 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">
<FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ethanol cost of sales includes depreciation, costs of raw materials, inbound freight charges, purchasing and receiving costs, inspection costs, shipping costs, other distribution expenses,
warehousing costs, plant management, certain compensation costs, and general facility overhead charges.</font></P>
<P align="left">&nbsp;</P>
<P align="center">
<FONT size="2" face="serif">9</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>

<p> <font size="2"><B><FONT face="serif">Vendor Allowances and Advertising Costs</FONT></B></font></p>
<P align="left">
<FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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">
<font size="2"><B><FONT face="serif">Selling, General and Administrative Expenses</FONT></B></font></P>
<P align="left">
<FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company includes stores expenses from its retail segment (such as payroll and occupancy costs), as well as advertising, purchasing, depreciation, insurance and overhead costs in selling, general and administrative
expenses.</FONT></P>
<P align="left">
<FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company includes non-production related costs from its alternative energy segment such as utilities, property taxes and certain payroll in selling, general and administrative expenses. </FONT></P>
<P align="left">
<font size="2"><B><FONT face="serif">Interest Cost</FONT></B></font></P>
<P align="left">
<FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense of &#36;1,018,000 for the six months ended July 31, 2008 is net of approximately &#36;503,000 of interest capitalized. Interest expense of &#36;108,000 for the six months ended July 31, 2007 is net of
approximately &#36;911,000 of interest capitalized. Cash paid for interest for the six months ended</FONT> <FONT size="2" face="serif">July 31, 2008 and 2007 was approximately &#36;829,000 and &#36;1,228,000, respectively.
</FONT></P>
<P align="left">
<font size="2"><B><FONT face="serif">Financial Instruments</FONT></B></font></P>
<P align="left">
<FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forward grain purchase and ethanol and distiller grain sale contracts are accounted for under the &#147;normal purchases and normal sales&#148; scope exemption of SFAS No. 133, &#147;Accounting for Derivative Instruments and
Hedging Activities&#148; (&#147;SFAS 133&#148;) because these arrangements are for purchases of grain that will be delivered in quantities expected to be used by the Company and sales of ethanol and distiller grain quantities expected to be produced
by the Company over a reasonable period of time in the normal course of business. The Company uses derivative financial instruments to manage its balance of fixed and variable rate debt. The Company does not hold or issue derivative financial
instruments for trading or speculative purposes. Interest rate swap agreements involve the exchange of fixed and variable rate interest payments and do not represent an actual exchange of the notional amounts between the parties. The swap agreements
were not designated for hedge accounting pursuant to SFAS 133. The interest rate swaps are recorded at their fair values and the changes in fair values are recorded as gain or loss on derivative financial instruments in the Consolidated Condensed
Statements of Income. </FONT></P>
<P align="left">
<font size="2"><B><FONT face="serif">Income Taxes</FONT></B></font></P>
<P align="left">
<FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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</FONT></P>
<P align="center">
<FONT size="2" face="serif">10</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>

<P align="left">
<FONT size="2" face="serif"> 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;0.7 million and &#36;7.1 million for the six months ended July 31, 2008 and 2007, respectively. See Note 13 for a discussion of the adoption of FIN 48. </FONT></P>
<P align="left">
<font size="2"><B><FONT face="serif">Restricted Cash</FONT></B></font></P>
<P align="left">
<FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash of &#36;2.8 million has been deposited into an escrow account for payment of retainage and other related liabilities associated with the construction of the Levelland Hockley ethanol plant.
The Company expects to pay these amounts from the escrow account within the next twelve months.</font>  </P>
<P align="left">
<font size="2"><B><FONT face="serif">Inventories</FONT></B></font></P>
<P align="left">
<FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories are carried at the lower of cost or market on a first-in, first-out (&#147;FIFO&#148;) basis. Retail segment inventory includes certain costs associated with purchasing, warehousing and
transporting merchandise. Reserves are established for estimated technological obsolescence. The market value of inventory is often dependent upon changes in technology resulting in significant changes in customer demand. Alternative energy segment
inventory includes direct production costs and certain overhead costs such as depreciation, property taxes and utilities related to producing ethanol and related by products. The components of inventory at July 31, 2008, January 31, 2008 and July
31, 2007 are as follows (amounts in thousands): </FONT></P>
<div align="left">
  <TABLE width=65% border=0 cellpadding=0 cellspacing=0>
    <TR valign="bottom">
      <TD width=50% align=left nowrap>&nbsp;  </TD>
      <TD width=13%>&nbsp;  </TD>
      <TD colspan="2" align=center nowrap>
        <FONT size="2" face="serif">July 31,</FONT></TD>
      <TD width=3% align="center">&nbsp;  </TD>
      <TD colspan="2" align=center nowrap>
        <FONT size="2" face="serif">January 31,</FONT></TD>
      <TD width=3% align="center">&nbsp;  </TD>
      <TD colspan="2" align=center nowrap>
        <FONT size="2" face="serif">July 31,</FONT></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left nowrap>&nbsp;  </TD>
      <TD>&nbsp;  </TD>
      <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">2008</FONT></TD>
      <TD align="center">&nbsp;  </TD>
      <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">2008</FONT></TD>
      <TD align="center">&nbsp;  </TD>
      <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">2007</FONT></TD>
    </TR>
    <TR>
      <TD colspan=10>&nbsp;  </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left nowrap>
      <FONT size="2" face="serif">Retail merchandise, net</FONT></TD>
      <TD>&nbsp;  </TD>
      <TD width=3% align=left nowrap>
      <FONT size="2" face="serif">&#36;</FONT>  </TD>
      <TD width=7% align=right nowrap>
      <FONT size="2" face="serif">55,393</FONT></TD>
      <TD>&nbsp;  </TD>
      <TD width=3% align=left nowrap>
      <FONT size="2" face="serif">&#36;</FONT>  </TD>
      <TD width=7% align=right nowrap>
      <FONT size="2" face="serif">49,933</FONT></TD>
      <TD>&nbsp;  </TD>
      <TD width=4% align=left nowrap>
      <FONT size="2" face="serif">&#36;</FONT>  </TD>
      <TD width=7% align=right nowrap>
      <FONT size="2" face="serif">84,256</FONT></TD>
    </TR>
    <TR valign="bottom" bgcolor="#E5FFFF">
      <TD align=left nowrap>
      <FONT size="2" face="serif">Ethanol and other finished goods, net</FONT></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap>&nbsp;  </TD>
      <TD align=right nowrap>
      <FONT size="2" face="serif">2,253</FONT></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap>&nbsp;  </TD>
      <TD align=right nowrap>
      <FONT size="2" face="serif">-</FONT></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap>&nbsp;  </TD>
      <TD align=right nowrap>
      <FONT size="2" face="serif">-</FONT></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left nowrap>
      <FONT size="2" face="serif">Work in process, net</FONT></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap>&nbsp;  </TD>
      <TD align=right nowrap>
      <FONT size="2" face="serif">865</FONT></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap>&nbsp;  </TD>
      <TD align=right nowrap>
      <FONT size="2" face="serif">-</FONT></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap>&nbsp;  </TD>
      <TD align=right nowrap>
      <FONT size="2" face="serif">-</FONT></TD>
    </TR>
    <TR valign="bottom" bgcolor="#E5FFFF">
      <TD align=left nowrap>
      <FONT size="2" face="serif">Grain and other raw materials</FONT></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">946</FONT></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">-</FONT></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">-</FONT></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left nowrap>
      <FONT size="2" face="serif">Total</FONT></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
      <FONT size="2" face="serif">&#36;</FONT>  </TD>
      <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
      <FONT size="2" face="serif">59,457</FONT></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
      <FONT size="2" face="serif">&#36;</FONT>  </TD>
      <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
      <FONT size="2" face="serif">49,933</FONT></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
      <FONT size="2" face="serif">&#36;</FONT>  </TD>
      <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
      <FONT size="2" face="serif">84,256</FONT></TD>
    </TR>
  </TABLE>
  <font size="2"><BR>
</font></div>
<P align="left">
<font size="2"><B><FONT face="serif">Investments</FONT></B></font></P>
<P align="left">
<font size="2">&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 Condensed Statements of Income for all or a portion of the unrealized loss, and a new cost basis in the investment is established.</FONT></font></P>
<P align="left">
<font size="2"><B><FONT face="serif">Recently Issued Accounting Standards</FONT></B></font></P>
<P align="left">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">During the six months ended July 31, 2008, the Company did not change any of its existing accounting policies with the exception of adopting SFAS No. 157, &#147;Fair Value Measurements&#148;
(&#147;SFAS 157&#148;) and SFAS No. 159, &#147;The Fair Value Option for Financial
Assets and Financial
</FONT></font></P>
<P align="center">
<FONT size="2" face="serif">11</FONT></P>

<P align="left" style="page-break-before:always"></P><PAGE>
<hr noshade align="center" width="100%" size=4>

<P align="left">
<FONT size="2" face="serif"> Liabilities &#151; Including an Amendment of FASB Statement No. 115 (&#147;SFAS 159&#148;)
on February 1, 2008.</FONT></P>

<P align="left">
<FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 Company elected
    to defer application of SFAS 157 for non-recurring fair value measurements
    of non financial assets and liabilities, consistent with FSP FAS 157-2. </FONT></P>
<P align="left">
<FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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. There was no impact on the Company&#146;s financial statement as a result of adopting SFAS 159 because the Company did not elect to apply the fair value option to eligible financial assets or financial
liabilities at that time.</FONT></P>
<P align="left">
<FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective February 1, 2008, the Company determined the fair market values of its financial instruments based on the fair value hierarchy established in SFAS 157 which requires an entity to maximize the use of observable inputs
and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair values which are provided below. The Company carries cash equivalents and derivative assets and
liabilities at fair value.</FONT> </P>
<P align="left">
<FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active
exchange market, as well as certain U.S. Treasury securities that are highly liquid and are actively traded in over-the-counter markets. </FONT></P>
<P align="left">
<FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Level 2 &#150; Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by
observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be
derived principally or corroborated by observable market data. </FONT></P>
<P align="left">
<FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Level 3 &#150; Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose
value is determined using pricing models, discounted cash flow methods, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. Unobservable inputs shall be
developed based on the best information available, which may include the Company&#146;s own data. </FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2"><FONT face="serif"></FONT></font></P>
<P align="center">
<FONT size="2" face="serif">12</FONT></P>


<HR noshade align="center" width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>

<P align="left">
<FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The fair values of derivative assets and liabilities traded in the over-the-counter market are determined using quantitative models that require the use of multiple market inputs including interest
rates, prices and indices to generate pricing and volatility factors, which are used to value the position. The predominance of market inputs are actively quoted and can be validated through external sources, including brokers, market transactions
and third-party pricing services. Estimation  risk is greater for derivative asset and liability positions that are either option-based or have longer maturity dates where observable market inputs are less readily available or are unobservable, in which case interest rate,
price or index scenarios are extrapolated in order to determine the fair value.  The fair values of derivative assets and liabilities include adjustments for market liquidity, counterparty credit quality, the Company&#146;s own credit standing and
other specific factors, where appropriate. To ensure the prudent application of estimates and management judgment in determining the fair value of derivative assets and liabilities, various processes and controls have been adopted, which include:
model validation that requires a review and approval for pricing, financial statement fair value determination and risk quantification; periodic review and substantiation of profit and loss reporting for all derivative instruments. For more
information on the fair value of the Company&#146;s financial instruments see</FONT><font size="2"> <FONT face="serif">Note 5.</FONT></font></P>
<P align="left">
<FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In December 2007, the FASB issued SFAS No. 141 (Revised), &#147;Business Combinations&#148; (&#147;SFAS 141 (R)&#148;), replacing SFAS No. 141, &#147;Business Combinations&#148; (&#147;SFAS 141&#148;), and SFAS No. 160,
&#147;Noncontrolling Interests in Consolidated Financial Statements &#151; an Amendment of ARB No. 51&#148; (&#147;SFAS 160&#148;). SFAS 141(R) retains the fundamental requirements of SFAS 141, broadens its scope by applying the acquisition method
to all transactions and other events in which one entity obtains control over one or more other businesses, and requires, among other things, that assets acquired and liabilities assumed be measured at fair value as of the acquisition date, that
liabilities related to contingent consideration be recognized at the acquisition date and remeasured at fair value in each subsequent reporting period, that acquisition-related costs be expensed as incurred, and that income be recognized if the fair
value of the net assets acquired exceeds the fair value of the consideration transferred. SFAS 160 establishes accounting and reporting standards for noncontrolling interests (i.e., minority interests) in a subsidiary, including changes in a
parent&#146;s ownership interest in a subsidiary and requires, among other things, that noncontrolling interests in subsidiaries be classified as a separate component of equity. Except for the presentation and disclosure requirements of SFAS 160,
which are to be applied retrospectively for all periods presented, SFAS 141 (R) and SFAS 160 are to be applied prospectively in financial statements issued for fiscal years beginning after December 15, 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">
<FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In March 2008, the FASB issued SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities &#151; An Amendment of FASB Statement No. 133 (&#147;SFAS 161&#148;). SFAS 161 requires enhanced qualitative disclosures
about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative agreements. SFAS 161
is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 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="center"><FONT size="2" face="serif">13</FONT>

<HR noshade align="center" width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>

<P align="left">
<FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June 2008, the FASB
Issued EITF No. 08-3, &#147;Accounting by Lessees for Nonrefundable Maintenance
Deposits.&#148; EITF 08-3 requires that nonrefundable maintenance deposits paid
by a lessee under  an arrangement accounted for as a lease be accounted for as
a deposit asset until the underlying maintenance is performed. When the underlying
maintenance is performed, the deposit may be expensed or capitalized in accordance
with the lessee&#146;s
maintenance accounting policy. Upon adoption entities must recognize the effect
of the change as a change in accounting principle. EITF 08-3 is effective for
financial statements issued for fiscal years beginning after December 15, 2008.
The Company does not expect the adoption of EITF 08-3 to have a material impact
on its financial condition or results of  operations.</FONT> </P>
<P align="left">
<font size="2"><B><FONT face="serif">Note 3. <I>Comprehensive Income</I></FONT></B></font></P>
<P align="left">
<FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive income includes net income and unrecognized gains on securities classified as available for sale (net of the related tax effects), and are reported separately in shareholders&#146; equity. The components of
comprehensive income are as follows (amounts in thousands):</FONT> </P>
<TABLE width=100% border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=34% align=left nowrap>&nbsp;  </TD>
  <TD width=12%>&nbsp;  </TD>
  <TD colspan="5" align=center nowrap>
<FONT size="2" face="serif">Three Months Ended</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width=5% align="center">&nbsp;  </TD>
  <TD colspan="5" align=center nowrap>
<FONT size="2" face="serif">Six Months Ended</FONT><font size="2">&nbsp;
  </font></TD>
  </TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size="2" face="serif">July 31, 2008</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width=5% align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size="2" face="serif">July 31, 2007</FONT><font size="2">&nbsp;
  </font></TD>
  <TD align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size="2" face="serif">July 31, 2008</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width=8% align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size="2" face="serif">July 31, 2007</FONT><font size="2">&nbsp;
  </font></TD>
  </TR>
<TR>
  <TD colspan=13>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT size="2" face="serif">Net income</FONT><font size="2">&nbsp;
  </font></TD>
  <TD>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD width=6% align=right nowrap>
<FONT size="2" face="serif">1,206</FONT><font size="2">&nbsp;
  </font></TD>
  <TD>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD width=7% align=right nowrap>
<FONT size="2" face="serif">5,810</FONT><font size="2">&nbsp;
  </font></TD>
  <TD>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD width=7% align=right nowrap>
<FONT size="2" face="serif">2,732</FONT><font size="2">&nbsp;
  </font></TD>
  <TD>&nbsp;  </TD>
  <TD width=3% align=left nowrap>
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD width=7% align=right nowrap>
<FONT size="2" face="serif">13,344</FONT><font size="2">&nbsp;
  </font></TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT size="2" face="serif">Unrealized holding gains on</FONT><font size="2">&nbsp;
  </font></TD>
  <TD>&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>&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>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT size="2" face="serif">available for sale securities (net of</FONT><font size="2">&nbsp;
  </font></TD>
  <TD>&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>&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>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT size="2" face="serif">&#36;5,956 of tax)</FONT><font size="2">&nbsp;
  </font></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">-</FONT><font size="2">&nbsp;
  </font></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">9,717</FONT><font size="2">&nbsp;
  </font></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">-</FONT><font size="2">&nbsp;
  </font></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">9,717</FONT><font size="2">&nbsp;
  </font></TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT size="2" face="serif">Total comprehensive income</FONT><font size="2">&nbsp;
  </font></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">1,206</FONT><font size="2">&nbsp;
  </font></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">15,527</FONT><font size="2">&nbsp;
  </font></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">2,732</FONT><font size="2">&nbsp;
  </font></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">23,061</FONT><font size="2">&nbsp;
  </font></TD>
</TR>
</TABLE>
<font size="2"><BR>
</font><P align="left"> <font size="2"><B><FONT face="serif">Note 4. <I>Sale
          and Leaseback Transaction and Other Leases</I></FONT></B>&nbsp; </font>
</P>
<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2"><FONT face="serif">On April 30, 2007, the Company
      completed a transaction for the sale of 86 of its current and former retail
      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, 14 of which were terminated in fiscal
  year 2007 and one of which was terminated in fiscal year 2008. The Company
  also entered into license agreements with Klac for 15 of the properties that
  allowed the Company to occupy the properties for up to 90 days rent free. Upon
  the expiration of the license period, the Company vacated the properties. </FONT></font></P>
<P align="left">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">This transaction resulted in a gain (realized and deferred) of &#36;14.8 million. Of this gain, &#36;0.4 million and &#36;4.0 million was recognized in the second quarter of fiscal years 2008 and
2007, respectively. During the first six months of fiscal years 2008 and 2007, the Company recognized &#36;0.7 million and &#36;7.1 million, respectively of the gain. The Company had a deferred gain of &#36;4.7 million and &#36;7.7 million at July
31, 2008 and 2007, respectively, based upon the present value of the remaining minimum lease payments. The deferred gain will be amortized as a reduction to lease expense over the lease periods or recognized as gain on disposal at the end of the
lease period. The leases have been accounted for as operating leases. The following table summarizes the pre-tax gains</FONT></font></P>
<P align="center"><FONT size="2" face="serif">14</FONT></P>

<hr noshade align="center" width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>

<P align="left">
<font size="2">and losses recognized during the second quarter and first six months of fiscal years 2008 and 2007 (amounts in thousands):</FONT></P>
<TABLE width=100% border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width="13%" align=left nowrap>&nbsp;  </TD>
  <TD width="30%">&nbsp;  </TD>
  <TD colspan="5" align=center nowrap>
<FONT size="2" face="serif">Three Months Ended</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width="6%" align="center">&nbsp;  </TD>
  <TD colspan="5" align=center nowrap>
<FONT size="2" face="serif">Six Months Ended</FONT><font size="2">&nbsp;
  </font></TD>
  </TR>
<TR valign="bottom">
  <TD align=left nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size="2" face="serif">Classification of Gain</FONT><font size="2">&nbsp;
  </font></TD>
  <TD>&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size="2" face="serif">July 31, 2008</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width="6%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size="2" face="serif">July 31, 2007</FONT><font size="2">&nbsp;
  </font></TD>
  <TD align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size="2" face="serif">July 31, 2008</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width="5%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size="2" face="serif">July 31, 2007</FONT><font size="2">&nbsp;
  </font></TD>
  </TR>
<TR>
  <TD colspan=13>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT size="2" face="serif">Continuing Operations</FONT><font size="2">&nbsp;
  </font></TD>
  <TD>&nbsp;  </TD>
  <TD width="3%" align=left nowrap>
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD width="8%" align=right nowrap>
<FONT size="2" face="serif">335</FONT><font size="2">&nbsp;
  </font></TD>
  <TD>&nbsp;  </TD>
  <TD width="3%" align=left nowrap>
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD width="7%" align=right nowrap>
<FONT size="2" face="serif">475</FONT><font size="2">&nbsp;
  </font></TD>
  <TD>&nbsp;  </TD>
  <TD width="3%" align=left nowrap>
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD width="6%" align=right nowrap>
<FONT size="2" face="serif">659</FONT><font size="2">&nbsp;
  </font></TD>
  <TD>&nbsp;  </TD>
  <TD width="3%" align=left nowrap>
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD width="7%" align=right nowrap>
<FONT size="2" face="serif">1,154</FONT><font size="2">&nbsp;
  </font></TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT size="2" face="serif">Discontinued Operations</FONT><font size="2">&nbsp;
  </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 size="2" face="serif">74</FONT><font size="2">&nbsp;
  </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 size="2" face="serif">3,527</FONT><font size="2">&nbsp;
  </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 size="2" face="serif">86</FONT><font size="2">&nbsp;
  </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 size="2" face="serif">5,974</FONT><font size="2">&nbsp;
  </font></TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT size="2" face="serif">Total Pre-Tax Gain</FONT><font size="2">&nbsp;
  </font></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">409</FONT><font size="2">&nbsp;
  </font></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">4,002</FONT><font size="2">&nbsp;
  </font></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">745</FONT><font size="2">&nbsp;
  </font></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">7,128</FONT><font size="2">&nbsp;
  </font></TD>
</TR>
</TABLE>
<font size="2"><BR>
</font><P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The following table summarizes the components of the sale and leaseback transaction at July 31, 2008 (dollar amounts in thousands): </FONT></P>
<div align="left">
  <TABLE width=100% border=0 cellpadding=0 cellspacing=0>
    <TR valign="bottom">
      <TD width="15%" align=left nowrap>&nbsp;  </TD>
      <TD width="20%">&nbsp;  </TD>
      <TD width="9%" align=right nowrap>
        <FONT size="2" face="serif">Number of</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width="6%">&nbsp;  </TD>
      <TD width="2%" align=left nowrap>&nbsp;  </TD>
      <TD width="7%" align=left nowrap>&nbsp;  </TD>
      <TD width="6%">&nbsp;  </TD>
      <TD align=right nowrap width="2%">&nbsp;  </TD>
      <TD width="8%" align=left nowrap>&nbsp;  </TD>
      <TD align=left nowrap width="25%">&nbsp;</TD>
    </TR>
    <TR valign="bottom">
      <TD align=left nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">Property Category</FONT></TD>
      <TD>&nbsp;  </TD>
      <TD align=right nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">Properties</FONT><font size="2">&nbsp;
      </font></TD>
      <TD>&nbsp;  </TD>
      <TD colspan="2" align=left nowrap STYLE="border-bottom:1px solid #000000;">
        <div align="right"><FONT size="2" face="serif">Deferred Gain</FONT><font size="2">
        </font></div></TD>
      <TD>&nbsp;  </TD>
      <TD colspan="2" align=right nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">Recognized Gain</FONT><font size="2">&nbsp;
      </font></TD>
      <TD align=right nowrap>&nbsp;</TD>
    </TR>
    <TR>
      <TD colspan=10>&nbsp;  </TD>
    </TR>
    <TR valign="bottom" bgcolor="#E5FFFF">
      <TD align=left nowrap>
        <FONT size="2" face="serif">Vacated</FONT><font size="2">&nbsp;
      </font></TD>
      <TD>&nbsp;  </TD>
      <TD align=right nowrap>
        <FONT size="2" face="serif">61</FONT><font size="2">&nbsp;
      </font></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap>
      <font size="2"><FONT face="serif">&#36;</FONT>&nbsp;  </font></TD>
      <TD align=right nowrap>
        <FONT size="2" face="serif">-</FONT><font size="2">&nbsp;
      </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">7,680</FONT><font size="2">&nbsp;
      </font></TD>
      <TD align=right nowrap bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>

    <TR valign="bottom">
      <TD align=left nowrap>
        <FONT size="2" face="serif">Leased until January 31,</FONT><font size="2">&nbsp;</font>
        <FONT size="2" face="serif">2010</FONT><font size="2"></font></TD>
      <TD>&nbsp;  </TD>
      <TD align=right nowrap>
        <FONT size="2" face="serif">12</FONT><font size="2">&nbsp;
      </font></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap>&nbsp;  </TD>
      <TD align=right>
        <FONT size="2" face="serif">3,548</FONT><font size="2">&nbsp;
      </font></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap>&nbsp;  </TD>
      <TD align=right nowrap>
        <FONT size="2" face="serif">470</FONT><font size="2">&nbsp;
      </font></TD>
      <TD align=right nowrap>&nbsp;</TD>
    </TR>

    <TR valign="bottom" bgcolor="#E5FFFF">
      <TD align=left nowrap>
        <FONT size="2" face="serif"> Leased until January 31,</FONT><font size="2">&nbsp; </font>
        <FONT size="2" face="serif">2010</FONT><font size="2"></font></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap>&nbsp;  </TD>
      <TD>&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 bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
    <TR valign="bottom" bgcolor="#E5FFFF">
      <TD align=left nowrap>
        <FONT size="2" face="serif">(6 month kickout clause)</FONT><font size="2">&nbsp;
      </font></TD>
      <TD>&nbsp;  </TD>
      <TD align=right nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">13</FONT><font size="2">&nbsp;
      </font></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
      <TD align=right STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">1,133</FONT><font size="2">&nbsp;
      </font></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">1,974</FONT><font size="2">&nbsp;
      </font></TD>
      <TD align=right nowrap bgcolor="#FFFFFF">&nbsp;</TD>
    </TR>
    <TR>
      <TD colspan=10>&nbsp;  </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left nowrap>
        <FONT size="2" face="serif">Total</FONT><font size="2">&nbsp;
      </font></TD>
      <TD>&nbsp;  </TD>
      <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
        <FONT size="2" face="serif">86</FONT><font size="2">&nbsp;
      </font></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
      <font size="2"><FONT face="serif">&#36;</FONT>&nbsp;  </font></TD>
      <TD align=right STYLE="border-bottom:3px double #000000;">
        <FONT size="2" face="serif">4,681</FONT><font size="2">&nbsp;
      </font></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
      <FONT size="2" face="serif">&#36;</FONT>  </TD>
      <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
        <FONT size="2" face="serif">10,124</FONT><font size="2">&nbsp;
      </font></TD>
      <TD align=right nowrap>&nbsp;</TD>
    </TR>
  </TABLE>
  <font size="2"><BR>
</font></div>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Future amortization of the deferred gain is as follows (amounts in thousands):</FONT></P>
<TABLE border=0 width=43% cellspacing=0 cellpadding=0>
<TR valign="bottom">
  <TD align=left width=4% nowrap>&nbsp;</TD>
  <TD align=left width=23% nowrap>
<FONT size="2" face="serif">Years Ended</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width=55%>&nbsp;  </TD>
  <TD align=right width=3% nowrap>&nbsp;  </TD>
  <TD align=left width=15% nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left width=4% nowrap>&nbsp;</TD>
  <TD align=left width=23% nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size="2" face="serif">January 31,</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width=55%>&nbsp;  </TD>
  <TD colspan="2" align=right nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size="2" face="serif">Amortization</FONT><font size="2">&nbsp;
  </font></TD>
  </TR>
<TR>
  <TD colspan=5>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD width=4% align=left nowrap bgcolor="#FFFFFF">&nbsp;</TD>
  <TD align=left width=23% nowrap>
<FONT size="2" face="serif">Remainder of 2009</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width=55%>&nbsp;  </TD>
  <TD align=left width=3% nowrap>
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD align=right width=15% nowrap>
<FONT size="2" face="serif">647</FONT><font size="2">&nbsp;
  </font></TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD width=4% align=left nowrap bgcolor="#FFFFFF">&nbsp;</TD>
  <TD width=23% align=left nowrap bgcolor="#E5FFFF">
<FONT size="2" face="serif">2010</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width=55% bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD width=3% align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD width=15% align=right nowrap bgcolor="#E5FFFF">
<FONT size="2" face="serif">1,294</FONT><font size="2">&nbsp;
  </font></TD>
</TR>
<TR valign="bottom">
  <TD width=4% align=left nowrap bgcolor="#FFFFFF">&nbsp;</TD>
  <TD align=left width=23% nowrap>
<FONT size="2" face="serif">2011</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width=55%>&nbsp;  </TD>
  <TD align=left width=3% nowrap>&nbsp;  </TD>
  <TD align=right width=15% nowrap>
<FONT size="2" face="serif">539</FONT><font size="2">&nbsp;
  </font></TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD width=4% align=left nowrap bgcolor="#FFFFFF">&nbsp;</TD>
  <TD width=23% align=left nowrap bgcolor="#E5FFFF">
<FONT size="2" face="serif">2012</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width=55% bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD width=3% align=left nowrap bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD width=15% align=right nowrap bgcolor="#E5FFFF">
<FONT size="2" face="serif">539</FONT><font size="2">&nbsp;
  </font></TD>
</TR>
<TR valign="bottom">
  <TD width=4% align=left nowrap bgcolor="#FFFFFF">&nbsp;</TD>
  <TD align=left width=23% nowrap>
<FONT size="2" face="serif">2013</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width=55%>&nbsp;  </TD>
  <TD align=left width=3% nowrap>&nbsp;  </TD>
  <TD align=right width=15% nowrap>
<FONT size="2" face="serif">539</FONT><font size="2">&nbsp;
  </font></TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD width=4% align=left nowrap bgcolor="#FFFFFF">&nbsp;</TD>
  <TD width=23% align=left nowrap bgcolor="#E5FFFF">
<FONT size="2" face="serif">Thereafter</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width=55% bgcolor="#E5FFFF">&nbsp;  </TD>
  <TD width=3% align=left nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width=15% align=right nowrap bgcolor="#E5FFFF" STYLE="border-bottom:1px solid #000000;">
<FONT size="2" face="serif">1,123</FONT><font size="2">&nbsp;
  </font></TD>
</TR>
<TR valign="bottom">
  <TD align=left width=4% nowrap>&nbsp;</TD>
  <TD align=left width=23% nowrap>
<FONT size="2" face="serif">Total</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width=55%>&nbsp;  </TD>
  <TD align=left width=3% nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD align=right width=15% nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">4,681</FONT><font size="2">&nbsp;
  </font></TD>
</TR>
</TABLE>

    <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">On July
      28, 2006, the Company completed a transaction for the sale and leaseback
      of one store under an initial three-year lease term. A pre-tax gain,
      classified as continuing operations, of approximately &#36;1.7 million (net of expenses) resulted from this sale. The Company has also deferred approximately &#36;0.5
      million of the gain at July 31, 2008, based upon the present value
      of the minimum lease payments and will amortize this deferred gain
      as a reduction to lease expense over the lease term. The lease has
      been accounted for as an operating lease. </FONT></font>

    <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font> </p>
    <p align="center"><FONT size="2" face="serif">15</FONT></p>

<HR noshade align="center" width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2"><FONT face="serif">In addition to the leaseback transactions
      described above, the Company is committed under operating leases for certain
      retail store locations. The lease agreements are for varying terms through
      fiscal year 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></font> </p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The
  following table is a summary of future rental activity under operating
  leases (amounts in thousands):</FONT></p>
<div align="left">
  <TABLE border=0 width=73% cellspacing=0 cellpadding=0>

    <TR valign="bottom">
      <TD align=left width=17% nowrap>
      <FONT size="2" face="serif">Years Ended</FONT>  </TD>
      <TD width=19%>&nbsp;  </TD>
      <TD colspan="2" align=center nowrap>
        <FONT size="2" face="serif">Minimum</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=7% align="center">&nbsp;  </TD>
      <TD colspan="2" align=center nowrap>
        <FONT size="2" face="serif">Gain</FONT>  </TD>
      <TD align=center width=7% nowrap>&nbsp;  </TD>
      <TD colspan="2" align=center nowrap>
        <FONT size="2" face="serif">Sublease</FONT>  </TD>
      <TD align=center width=5% nowrap>&nbsp;  </TD>
      <TD colspan="2" align=center nowrap>&nbsp;    </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left width=17% nowrap STYLE="border-bottom:1px solid #000000;">
      <FONT size="2" face="serif">January 31</FONT>  </TD>
      <TD width=19%>&nbsp;  </TD>
      <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">Rentals</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=7% align="center">&nbsp;  </TD>
      <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">Amortization</FONT>  </TD>
      <TD align=center width=7% nowrap>&nbsp;  </TD>
      <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">Income</FONT>  </TD>
      <TD align=center width=5% nowrap>&nbsp;  </TD>
      <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">Total</FONT><font size="2">&nbsp;
      </font></TD>
    </TR>
    <TR align="left">
      <TD colspan=13>&nbsp;  </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left width=17% nowrap>
      <FONT size="2" face="serif">Remainder of</FONT>  </TD>
      <TD width=19%>&nbsp;  </TD>
      <TD align=right width=3% nowrap>&nbsp;  </TD>
      <TD align=left width=7% nowrap>&nbsp;  </TD>
      <TD width=7%>&nbsp;  </TD>
      <TD align=right width=2% nowrap>&nbsp;  </TD>
      <TD align=left width=9% nowrap>&nbsp;  </TD>
      <TD align=left width=7% nowrap>&nbsp;  </TD>
      <TD align=right width=4% nowrap>&nbsp;  </TD>
      <TD align=left width=7% nowrap>&nbsp;  </TD>
      <TD align=left width=5% nowrap>&nbsp;  </TD>
      <TD align=right width=6% nowrap>&nbsp;  </TD>
      <TD align=left width=7% nowrap>&nbsp;  </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left width=17% nowrap>
      <FONT size="2" face="serif">January 31, 2009</FONT>  </TD>
      <TD width=19%>&nbsp;  </TD>
      <TD align=left width=3% nowrap>
      <FONT size="2" face="serif">&#36;</FONT>  </TD>
      <TD align=right width=7% nowrap>
        <FONT size="2" face="serif">3,061</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=7%>&nbsp;  </TD>
      <TD align=left width=2% nowrap>
      <FONT size="2" face="serif">&#36;</FONT>  </TD>
      <TD align=right width=9% nowrap>
      <FONT size="2" face="serif">(697</FONT>  </TD>
      <TD align=left width=7% nowrap>
        <FONT size="2" face="serif">)</FONT><font size="2">&nbsp;
      </font></TD>
      <TD align=left width=4% nowrap>
      <FONT size="2" face="serif">&#36;</FONT>  </TD>
      <TD align=right width=7% nowrap>
      <FONT size="2" face="serif">(106</FONT>  </TD>
      <TD align=left width=5% nowrap>
        <FONT size="2" face="serif">)</FONT><font size="2">&nbsp;
      </font></TD>
      <TD align=left width=6% nowrap>
      <FONT size="2" face="serif">&#36;</FONT>  </TD>
      <TD align=right width=7% nowrap>
        <FONT size="2" face="serif">2,258</FONT><font size="2">&nbsp;
      </font></TD>
    </TR>
    <TR valign="bottom" bgcolor="#E5FFFF">
      <TD align=left width=17% nowrap>
      <FONT size="2" face="serif">2010(a)</FONT>  </TD>
      <TD width=19%>&nbsp;  </TD>
      <TD align=left width=3% nowrap>&nbsp;  </TD>
      <TD align=right width=7% nowrap>
        <FONT size="2" face="serif">4,518</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=7%>&nbsp;  </TD>
      <TD align=left width=2% nowrap>&nbsp;  </TD>
      <TD align=right width=9% nowrap>
      <FONT size="2" face="serif">(1,395</FONT>  </TD>
      <TD align=left width=7% nowrap>
        <FONT size="2" face="serif">)</FONT><font size="2">&nbsp;
      </font></TD>
      <TD align=left width=4% nowrap>&nbsp;  </TD>
      <TD align=right width=7% nowrap>
      <FONT size="2" face="serif">(134</FONT>  </TD>
      <TD align=left width=5% nowrap>
        <FONT size="2" face="serif">)</FONT><font size="2">&nbsp;
      </font></TD>
      <TD align=left width=6% nowrap>&nbsp;  </TD>
      <TD align=right width=7% nowrap>
        <FONT size="2" face="serif">2,989</FONT><font size="2">&nbsp;
      </font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left width=17% nowrap>
      <FONT size="2" face="serif">2011(a)</FONT>  </TD>
      <TD width=19%>&nbsp;  </TD>
      <TD align=left width=3% nowrap>&nbsp;  </TD>
      <TD align=right width=7% nowrap>
        <FONT size="2" face="serif">2,700</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=7%>&nbsp;  </TD>
      <TD align=left width=2% nowrap>&nbsp;  </TD>
      <TD align=right width=9% nowrap>
      <FONT size="2" face="serif">(640</FONT>  </TD>
      <TD align=left width=7% nowrap>
        <FONT size="2" face="serif">)</FONT><font size="2">&nbsp;
      </font></TD>
      <TD align=left width=4% nowrap>&nbsp;  </TD>
      <TD align=right width=7% nowrap>
      <FONT size="2" face="serif">(70</FONT>  </TD>
      <TD align=left width=5% nowrap>
        <FONT size="2" face="serif">)</FONT><font size="2">&nbsp;
      </font></TD>
      <TD align=left width=6% nowrap>&nbsp;  </TD>
      <TD align=right width=7% nowrap>
        <FONT size="2" face="serif">1,990</FONT><font size="2">&nbsp;
      </font></TD>
    </TR>
    <TR valign="bottom" bgcolor="#E5FFFF">
      <TD align=left width=17% nowrap>
      <FONT size="2" face="serif">2012(a)</FONT>  </TD>
      <TD width=19%>&nbsp;  </TD>
      <TD align=left width=3% nowrap>&nbsp;  </TD>
      <TD align=right width=7% nowrap>
        <FONT size="2" face="serif">2,267</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=7%>&nbsp;  </TD>
      <TD align=left width=2% nowrap>&nbsp;  </TD>
      <TD align=right width=9% nowrap>
      <FONT size="2" face="serif">(640</FONT>  </TD>
      <TD align=left width=7% nowrap>
        <FONT size="2" face="serif">)</FONT><font size="2">&nbsp;
      </font></TD>
      <TD align=left width=4% nowrap>&nbsp;  </TD>
      <TD align=right width=7% nowrap>
      <FONT size="2" face="serif">(5</FONT>  </TD>
      <TD align=left width=5% nowrap>
        <FONT size="2" face="serif">)</FONT><font size="2">&nbsp;
      </font></TD>
      <TD align=left width=6% nowrap>&nbsp;  </TD>
      <TD align=right width=7% nowrap>
        <FONT size="2" face="serif">1,622</FONT><font size="2">&nbsp;
      </font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left width=17% nowrap>
      <FONT size="2" face="serif">2013(a)</FONT>  </TD>
      <TD width=19%>&nbsp;  </TD>
      <TD align=left width=3% nowrap>&nbsp;  </TD>
      <TD align=right width=7% nowrap>
        <FONT size="2" face="serif">2,061</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=7%>&nbsp;  </TD>
      <TD align=left width=2% nowrap>&nbsp;  </TD>
      <TD align=right width=9% nowrap>
      <FONT size="2" face="serif">(640</FONT>  </TD>
      <TD align=left width=7% nowrap>
        <FONT size="2" face="serif">)</FONT><font size="2">&nbsp;
      </font></TD>
      <TD align=left width=4% nowrap>&nbsp;  </TD>
      <TD align=right width=7% nowrap>
      <FONT size="2" face="serif">-</FONT>  </TD>
      <TD align=left width=5% nowrap>&nbsp;  </TD>
      <TD align=left width=6% nowrap>&nbsp;  </TD>
      <TD align=right width=7% nowrap>
        <FONT size="2" face="serif">1,421</FONT><font size="2">&nbsp;
      </font></TD>
    </TR>
    <TR valign="bottom" bgcolor="#E5FFFF">
      <TD align=left width=17% nowrap>
      <FONT size="2" face="serif">Thereafter (a)</FONT>  </TD>
      <TD width=19%>&nbsp;  </TD>
      <TD align=left width=3% nowrap STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
      <TD align=right width=7% nowrap style="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">3,858</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=7%>&nbsp;  </TD>
      <TD align=left width=2% nowrap STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
      <TD align=right width=9% nowrap STYLE="border-bottom:1px solid #000000;">
      <FONT size="2" face="serif">(1,123</FONT>  </TD>
      <TD width=7% align=left valign="middle" nowrap>
        <FONT size="2" face="serif">)</FONT><font size="2">&nbsp;
      </font></TD>
      <TD align=left width=4% nowrap STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
      <TD align=right width=7% nowrap style="border-bottom:1px solid #000000;">
      <FONT size="2" face="serif">-</FONT>  </TD>
      <TD align=left width=5% nowrap>&nbsp;  </TD>
      <TD align=left width=6% nowrap STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
      <TD align=right width=7% nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">2,735</FONT><font size="2">&nbsp;
      </font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left width=17% nowrap>
      <FONT size="2" face="serif">Total</FONT>  </TD>
      <TD width=19%>&nbsp;  </TD>
      <TD align=left width=3% nowrap STYLE="border-bottom:3px double #000000;">
      <FONT size="2" face="serif">&#36;</FONT>  </TD>
      <TD align=right width=7% nowrap STYLE="border-bottom:3px double #000000;">
        <FONT size="2" face="serif">18,465</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=7%>&nbsp;  </TD>
      <TD align=left width=2% nowrap STYLE="border-bottom:3px double #000000;">
      <FONT size="2" face="serif">&#36;</FONT>  </TD>
      <TD align=right width=9% nowrap STYLE="border-bottom:3px double #000000;">
      <FONT size="2" face="serif">(5,135</FONT>  </TD>
      <TD width=7% align=left valign="middle" nowrap>
        <FONT size="2" face="serif">)</FONT><font size="2">&nbsp;
      </font></TD>
      <TD align=left width=4% nowrap STYLE="border-bottom:3px double #000000;">
      <FONT size="2" face="serif">&#36;</FONT>  </TD>
      <TD align=right width=7% nowrap STYLE="border-bottom:3px double #000000;">
      <FONT size="2" face="serif">(315</FONT>  </TD>
      <TD width=5% align=left valign="middle" nowrap>
        <FONT size="2" face="serif">)</FONT><font size="2">&nbsp;
      </font></TD>
      <TD align=left width=6% nowrap STYLE="border-bottom:3px double #000000;">
      <FONT size="2" face="serif">&#36;</FONT>  </TD>
      <TD align=right width=7% nowrap STYLE="border-bottom:3px double #000000;">
        <FONT size="2" face="serif">13,015</FONT><font size="2">&nbsp;
      </font></TD>
    </TR>
  </TABLE>
</div>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD width="2%" valign=top nowrap>&nbsp;</TD>
  <TD width="3%" valign=top nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD width="2%" valign=top nowrap>&nbsp;</TD>
  <TD nowrap valign=top>
<FONT size="2" face="serif">(a)</FONT><font size="2">&nbsp; &nbsp; &nbsp;   </font></TD>
  <TD width=95%>
<FONT size="2" face="serif">Amounts include minimum rentals related to lease renewal options assumed to be exercised in the amounts of &#36;2,061,000 for the fiscal years ended January 31, 2011, 2012 and 2013 and &#36;3,858,000 for the thereafter
category</FONT><font size="2"><B><FONT face="serif">.</FONT></B>  </font></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>

<p><font size="2"><B><FONT face="serif">Note 5. <I>Fair Value</I></FONT></B></font>

      <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
    <p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="serif">Effective January 1, 2008, the Company adopted SFAS 157, which provides a framework for measuring fair value under GAAP. SFAS 157 defines fair value as the exchange price that would be received for an
      asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. SFAS 157 also eliminated the deferral of
      gains and losses at inception of certain derivative contracts whose fair value was not evidenced by market observable data. SFAS 157 requires that the impact of this change in accounting for derivative contracts be recorded as an adjustment to
      beginning retained earnings in the period of adoption. There was no impact on the beginning balance of retained earnings as a result of adopting SFAS 157 because the Company held no financial instruments in which a gain or loss at inception was
    deferred. For additional information on how the Company measures fair value, see</FONT> <FONT face="serif">Note 2. Financial assets and liabilities measured at fair value at July 31, 2008 on a recurring basis are summarized below (amounts in thousands):</FONT></font></p>
    <p align="center"></p>
    <p align="center"><FONT size="2" face="serif">16</FONT></p>

<HR noshade align="center" width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>


<div align="left">
  <TABLE width=69% border=0 cellpadding=0 cellspacing=0>
    <TR valign="bottom">
      <TD width="35%" align=left nowrap>&nbsp;  </TD>
      <TD width="7%">&nbsp;  </TD>
      <TD align=center nowrap colspan=2 STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">Level 1</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width="6%" align="center">&nbsp;  </TD>
      <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">Level 2</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width="4%" align="center">&nbsp;  </TD>
      <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">Level 3</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width="4%" align="center">&nbsp;  </TD>
      <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">Fair Value</FONT><font size="2">&nbsp;
      </font></TD>
    </TR>
    <TR>
      <TD colspan=13>&nbsp;  </TD>
    </TR>
    <TR valign="bottom" bgcolor="#E5FFFF">
      <TD align=left nowrap>
        <FONT size="2" face="serif">Cash Equivalents</FONT><font size="2">&nbsp;
      </font></TD>
      <TD>&nbsp;  </TD>
      <TD width="3%" align=left nowrap><FONT size="2" face="serif">&#36;</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width="8%" align=right nowrap><FONT size="2" face="serif">70,334</FONT></TD>
      <TD>&nbsp;  </TD>
      <TD width="4%" align=left nowrap>
        <FONT size="2" face="serif">&#36;</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width="7%" align=right nowrap>
        <FONT size="2" face="serif">-</FONT><font size="2">&nbsp;
      </font></TD>
      <TD>&nbsp;  </TD>
      <TD width="5%" align=left nowrap>
        <FONT size="2" face="serif">&#36;</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width="5%" align=right nowrap>
        <FONT size="2" face="serif">-</FONT><font size="2">&nbsp;
      </font></TD>
      <TD>&nbsp;  </TD>
      <TD width="2%" align=left nowrap>
      <FONT size="2" face="serif">&#36;</FONT>  </TD>
      <TD width="10%" align=right nowrap>
        <FONT size="2" face="serif">70,334</FONT><font size="2">&nbsp;
      </font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left nowrap>
        <FONT size="2" face="serif">Restricted Investments</FONT><font size="2">&nbsp;
      </font></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">1,563</FONT><font size="2">&nbsp;
      </font></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">&#36;</FONT><font size="2">&nbsp;
      </font></TD>
      <TD align=right nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">-</FONT><font size="2">&nbsp;
      </font></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">&#36;</FONT><font size="2">&nbsp;
      </font></TD>
      <TD align=right nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">-</FONT><font size="2">&nbsp;
      </font></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">1,563</FONT><font size="2">&nbsp;
      </font></TD>
    </TR>
    <TR valign="bottom" bgcolor="#E5FFFF">
      <TD align=left nowrap>
        <FONT size="2" face="serif">Total Assets</FONT><font size="2">&nbsp;
      </font></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
        <FONT size="2" face="serif">&#36;</FONT><font size="2">&nbsp;
      </font></TD>
      <TD align=right nowrap STYLE="border-bottom:3px double #000000;"><FONT size="2" face="serif">71,897</FONT></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
        <FONT size="2" face="serif">&#36;</FONT><font size="2">&nbsp;
      </font></TD>
      <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
        <FONT size="2" face="serif">-</FONT><font size="2">&nbsp;
      </font></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
        <FONT size="2" face="serif">&#36;</FONT><font size="2">&nbsp;
      </font></TD>
      <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
        <FONT size="2" face="serif">-</FONT><font size="2">&nbsp;
      </font></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
      <FONT size="2" face="serif">&#36;</FONT>  </TD>
      <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
        <FONT size="2" face="serif">71,897</FONT><font size="2">&nbsp;
      </font></TD>
    </TR>
    <TR>
      <TD colspan=13>&nbsp;  </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left nowrap>
        <FONT size="2" face="serif">Derivative Liabilities</FONT><font size="2">&nbsp;
      </font></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">&#36;</FONT><font size="2">&nbsp;
      </font></TD>
      <TD align=right nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">-</FONT><font size="2">&nbsp;
      </font></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">&#36;</FONT><font size="2">&nbsp;
      </font></TD>
      <TD align=right STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">1,074</FONT><font size="2">&nbsp;
      </font></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">&#36;</FONT><font size="2">&nbsp;
      </font></TD>
      <TD align=right nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">-</FONT><font size="2">&nbsp;
      </font></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap STYLE="border-bottom:1px solid #000000;">
      <FONT size="2" face="serif">&#36;</FONT>  </TD>
      <TD align=right nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">1,074</FONT><font size="2">&nbsp;
      </font></TD>
    </TR>
    <TR valign="bottom" bgcolor="#E5FFFF">
      <TD align=left nowrap>
        <FONT size="2" face="serif">Total Liabilities</FONT><font size="2">&nbsp;
      </font></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
        <FONT size="2" face="serif">&#36;</FONT><font size="2">&nbsp;
      </font></TD>
      <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
        <FONT size="2" face="serif">-</FONT><font size="2">&nbsp;
      </font></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
        <FONT size="2" face="serif">&#36;</FONT><font size="2">&nbsp;
      </font></TD>
      <TD align=right STYLE="border-bottom:3px double #000000;">
        <FONT size="2" face="serif">1,074</FONT><font size="2">&nbsp;
      </font></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
        <FONT size="2" face="serif">&#36;</FONT><font size="2">&nbsp;
      </font></TD>
      <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
        <FONT size="2" face="serif">-</FONT><font size="2">&nbsp;
      </font></TD>
      <TD>&nbsp;  </TD>
      <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
      <FONT size="2" face="serif">&#36;</FONT>  </TD>
      <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
        <FONT size="2" face="serif">1,074</FONT><font size="2">&nbsp;
      </font></TD>
    </TR>
  </TABLE>
</div>
<div align="left">
  <p><font size="2"><B><FONT face="serif">Note 6. <I>Business
      Combinations</I></FONT></B>&nbsp; </font>

  <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">&nbsp;<FONT face="serif">On
    October 30 2007, the Company acquired 74% of the outstanding membership
    units of One Earth Energy, LLC (&#147;One Earth&#148;). The results of One
    Earth&#146;s operations have been included in the
    consolidated financial statements subsequent to the acquisition date and
    are included in the Company&#146;s alternative energy segment. The aggregate
    purchase price was &#36;50.8
    million, all of which was cash. The following table summarizes the estimated
    fair values of the assets acquired and liabilities assumed at the date
    of acquisition (amounts in thousands):</FONT></font></p>
  <TABLE border=0 width=44% cellspacing=0 cellpadding=0>
    <TR valign="bottom">
      <TD align=left width=63% nowrap>
        <FONT size="2" face="serif">Cash</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=17%>&nbsp;  </TD>
      <TD align=left width=4% nowrap>
      <FONT size="2" face="serif">&#36;</FONT>  </TD>
      <TD align=right width=10% nowrap>
      <FONT size="2" face="serif">59,313</FONT>  </TD>
      <TD align=left width=2% nowrap>&nbsp;  </TD>
    </TR>
    <TR valign="bottom" bgcolor="#E5FFFF">
      <TD align=left width=63% nowrap>
        <FONT size="2" face="serif">Property, plant and equipment</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=17%>&nbsp;  </TD>
      <TD align=left width=4% nowrap>&nbsp;  </TD>
      <TD align=right width=10% nowrap>
      <FONT size="2" face="serif">9,899</FONT>  </TD>
      <TD align=left width=2% nowrap>&nbsp;  </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left width=63% nowrap>
        <FONT size="2" face="serif">Prepaid expenses</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=17%>&nbsp;  </TD>
      <TD align=left width=4% nowrap>&nbsp;  </TD>
      <TD align=right width=10% nowrap>
      <FONT size="2" face="serif">307</FONT>  </TD>
      <TD align=left width=2% nowrap>&nbsp;  </TD>
    </TR>
    <TR valign="bottom" bgcolor="#E5FFFF">
      <TD align=left width=63% nowrap>
        <FONT size="2" face="serif">Prepaid loan fees</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=17%>&nbsp;  </TD>
      <TD align=left width=4% nowrap STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
      <TD align=right width=10% nowrap STYLE="border-bottom:1px solid #000000;">
      <FONT size="2" face="serif">1,012</FONT>  </TD>
      <TD align=left width=2% nowrap>&nbsp;  </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left width=63% nowrap>
      <font size="2">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">Total assets acquired</FONT>&nbsp;  </font></TD>
      <TD width=17%>&nbsp;  </TD>
      <TD align=left width=4% nowrap>&nbsp;  </TD>
      <TD align=right width=10% nowrap>
      <FONT size="2" face="serif">70,531</FONT>  </TD>
      <TD align=left width=2% nowrap>&nbsp;  </TD>
    </TR>
    <TR valign="bottom" bgcolor="#E5FFFF">
      <TD align=left width=63% nowrap>
        <FONT size="2" face="serif">Current liabilities</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=17%>&nbsp;  </TD>
      <TD align=left width=4% nowrap>&nbsp;  </TD>
      <TD align=right width=10% nowrap>
      <FONT size="2" face="serif">(1,922</FONT>  </TD>
      <TD align=left width=2% nowrap>
        <FONT size="2" face="serif">)</FONT><font size="2">&nbsp;
      </font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left width=63% nowrap>
        <FONT size="2" face="serif">Long term debt</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=17%>&nbsp;  </TD>
      <TD align=left width=4% nowrap>&nbsp;  </TD>
      <TD align=right width=10% nowrap>
      <FONT size="2" face="serif">(1,010</FONT>  </TD>
      <TD align=left width=2% nowrap>
        <FONT size="2" face="serif">)</FONT><font size="2">&nbsp;
      </font></TD>
    </TR>
    <TR valign="bottom" bgcolor="#E5FFFF">
      <TD align=left width=63% nowrap>
        <FONT size="2" face="serif">Minority interest</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=17%>&nbsp;  </TD>
      <TD align=left width=4% nowrap STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
      <TD align=right width=10% nowrap STYLE="border-bottom:1px solid #000000;">
      <FONT size="2" face="serif">(16,832</FONT>  </TD>
      <TD width=2% align=left valign="middle" nowrap>
        <FONT size="2" face="serif">)</FONT><font size="2">&nbsp;
      </font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left width=63% nowrap>
        <FONT size="2" face="serif">Net purchase price</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=17%>&nbsp;  </TD>
      <TD align=left width=4% nowrap STYLE="border-bottom:3px double #000000;">
      <FONT size="2" face="serif">&#36;</FONT>  </TD>
      <TD align=right width=10% nowrap STYLE="border-bottom:3px double #000000;">
      <FONT size="2" face="serif">50,767</FONT>  </TD>
      <TD align=left width=2% nowrap>&nbsp;  </TD>
    </TR>
    </TABLE>
</div>
<p><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Prepaid loan fees have an estimated useful life of 6 years. One Earth is a development stage entity that has commenced construction of an ethanol production facility in Gibson City, Illinois, which
    will have a design capacity of 100 million gallons of ethanol annually. </FONT></font></p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The unaudited financial information in the table below summarizes the combined results of operations of the Company and One Earth, 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. 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>
<p align="center"><FONT size="2" face="serif">17</FONT></p>

<HR noshade align="center" width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>


    <div align="left"><FONT size="2" face="serif"></FONT>

      <TABLE border=0 width=49% cellspacing=0 cellpadding=0>
        <TR valign="bottom">
          <TD align=left width=31%>&nbsp;  </TD>
      <TD width=17%>&nbsp;  </TD>
      <TD colspan="2" align=center>
        <FONT size="2" face="serif">Three Months Ended</FONT><font size="2">&nbsp;
        </font></TD>
      <TD width=11% align="center">&nbsp;  </TD>
      <TD colspan="2" align=center>
        <FONT size="2" face="serif">Six Months Ended</FONT><font size="2">&nbsp;
        </font></TD>
      </TR>
        <TR valign="bottom">
          <TD align=left width=31%>&nbsp;  </TD>
      <TD width=17%>&nbsp;  </TD>
      <TD colspan="2" align=center STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">July 31, 2007</FONT><font size="2">&nbsp;
        </font></TD>
      <TD width=11% align="center">&nbsp;  </TD>
      <TD colspan="2" align=center STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">July 31, 2007</FONT><font size="2">&nbsp;
        </font></TD>
      </TR>
        <TR>
          <TD colspan=7>&nbsp;  </TD>
    </TR>
        <TR valign="bottom">
          <TD align=left width=31%>
            <FONT size="2" face="serif">Net sales and revenue</FONT><font size="2">&nbsp;
          </font></TD>
      <TD width=17%>&nbsp;  </TD>
      <TD align=left width=5%>
        <font size="2"><FONT face="serif">&#36;</FONT>&nbsp;  </font></TD>
      <TD align=right width=17%>
        <FONT size="2" face="serif">47,915</FONT><font size="2">&nbsp;
        </font></TD>
      <TD width=11%>&nbsp;  </TD>
      <TD align=left width=4%><font size="2"><FONT face="serif">&#36;</FONT>&nbsp; </font></TD>
      <TD align=right width=15%>
        <FONT size="2" face="serif">96,485</FONT><font size="2">&nbsp;
        </font></TD>
    </TR>
        <TR valign="bottom" bgcolor="#E5FFFF">
          <TD align=left width=31%>
            <FONT size="2" face="serif">Net income</FONT><font size="2">&nbsp;
          </font></TD>
      <TD width=17%>&nbsp;  </TD>
      <TD align=left width=5%><font size="2"><FONT face="serif">&#36;</FONT>&nbsp; </font></TD>
      <TD align=right width=17%>
        <FONT size="2" face="serif">5,742</FONT><font size="2">&nbsp;
        </font></TD>
      <TD width=11%>&nbsp;  </TD>
      <TD align=left width=4%><font size="2"><FONT face="serif">&#36;</FONT>&nbsp; </font></TD>
      <TD align=right width=15%>
        <FONT size="2" face="serif">13,222</FONT><font size="2">&nbsp;
        </font></TD>
    </TR>
        <TR valign="bottom">
          <TD align=left width=31%>
            <FONT size="2" face="serif">Basic net income per share</FONT><font size="2">&nbsp;
          </font></TD>
      <TD width=17%>&nbsp;  </TD>
      <TD align=left width=5%><font size="2"><FONT face="serif">&#36;</FONT>&nbsp; </font></TD>
      <TD align=right width=17%>
        <FONT size="2" face="serif">0.54</FONT><font size="2">&nbsp;
        </font></TD>
      <TD width=11%>&nbsp;  </TD>
      <TD align=left width=4%><font size="2"><FONT face="serif">&#36;</FONT>&nbsp; </font></TD>
      <TD align=right width=15%>
        <FONT size="2" face="serif">1.25</FONT><font size="2">&nbsp;
        </font></TD>
    </TR>
        <TR valign="bottom" bgcolor="#E5FFFF">
          <TD align=left width=31%>
            <FONT size="2" face="serif">Diluted net income per share</FONT><font size="2">&nbsp;
          </font></TD>
      <TD width=17%>&nbsp;  </TD>
      <TD align=left width=5%><font size="2"><FONT face="serif">&#36;</FONT>&nbsp; </font></TD>
      <TD align=right width=17%>
        <FONT size="2" face="serif">0.48</FONT><font size="2">&nbsp;
        </font></TD>
      <TD width=11%>&nbsp;  </TD>
      <TD align=left width=4%><font size="2"><FONT face="serif">&#36;</FONT>&nbsp; </font></TD>
      <TD align=right width=15%>
        <FONT size="2" face="serif">1.11</FONT><font size="2">&nbsp;
        </font></TD>
    </TR>
        </TABLE>
</div>
<p><font size="2"><B><FONT face="serif">Note 7. <I>Other Assets</I></FONT></B>&nbsp;</font></p>


 <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif"> The components of other assets at July 31, 2008, January 31, 2008 and July 31, 2007 are as follows (amounts in thousands): </FONT>
<div align="left">
  <TABLE border=0 width=64% cellspacing=0 cellpadding=0>
    <TR valign="bottom">
      <TD align=left width=35% nowrap>&nbsp;  </TD>
      <TD width=18%>&nbsp;  </TD>
      <TD colspan="2" align=center nowrap>
        <FONT size="2" face="serif">July 31,</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=6% align="center">&nbsp;  </TD>
      <TD colspan="2" align=center nowrap>
        <FONT size="2" face="serif">January 31,</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=4% align="center">&nbsp;  </TD>
      <TD colspan="2" align=center nowrap>
        <FONT size="2" face="serif">July 31,</FONT><font size="2">&nbsp;
      </font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left width=35% nowrap>&nbsp;  </TD>
      <TD width=18%>&nbsp;  </TD>
      <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
      <font size="2">&nbsp; &nbsp;<FONT face="serif">2008</FONT>&nbsp;  </font></TD>
      <TD width=6% align="center">&nbsp;  </TD>
      <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">2008</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=4% align="center">&nbsp;  </TD>
      <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">2007</FONT><font size="2">&nbsp;
      </font></TD>
    </TR>
    <TR>
      <TD colspan=10>&nbsp;  </TD>
    </TR>
    <TR valign="bottom">
      <TD align=left width=35% nowrap>
        <FONT size="2" face="serif">Prepaid loan fees</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=18%>&nbsp;  </TD>
      <TD align=left width=3% nowrap>
      <FONT size="2" face="serif">&#36;</FONT>  </TD>
      <TD align=right width=8% nowrap>
        <FONT size="2" face="serif">5,033</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=6%>&nbsp;  </TD>
      <TD align=left width=3% nowrap>
      <FONT size="2" face="serif">&#36;</FONT>  </TD>
      <TD align=right width=9% nowrap>
        <FONT size="2" face="serif">5,187</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=4%>&nbsp;  </TD>
      <TD align=left width=2% nowrap>
      <FONT size="2" face="serif">&#36;</FONT>  </TD>
      <TD align=right width=12% nowrap>
        <FONT size="2" face="serif">4,166</FONT><font size="2">&nbsp;
      </font></TD>
    </TR>
    <TR valign="bottom" bgcolor="#E5FFFF">
      <TD align=left width=35% nowrap>
        <FONT size="2" face="serif">Prepaid commissions</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=18%>&nbsp;  </TD>
      <TD align=left width=3% nowrap>&nbsp;  </TD>
      <TD align=right width=8% nowrap>
        <FONT size="2" face="serif">8,345</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=6%>&nbsp;  </TD>
      <TD align=left width=3% nowrap>&nbsp;  </TD>
      <TD align=right width=9% nowrap>
        <FONT size="2" face="serif">9,208</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=4%>&nbsp;  </TD>
      <TD align=left width=2% nowrap>&nbsp;  </TD>
      <TD align=right width=12% nowrap>
        <FONT size="2" face="serif">9,557</FONT><font size="2">&nbsp;
      </font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left width=35% nowrap>
        <FONT size="2" face="serif">Advance equity investment</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=18%>&nbsp;  </TD>
      <TD align=left width=3% nowrap>&nbsp;  </TD>
      <TD align=right width=8% nowrap>
        <FONT size="2" face="serif">-</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=6%>&nbsp;  </TD>
      <TD align=left width=3% nowrap>&nbsp;  </TD>
      <TD align=right width=9% nowrap>
        <FONT size="2" face="serif">-</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=4%>&nbsp;  </TD>
      <TD align=left width=2% nowrap>&nbsp;  </TD>
      <TD align=right width=12% nowrap>
        <FONT size="2" face="serif">10,000</FONT><font size="2">&nbsp;
      </font></TD>
    </TR>
    <TR valign="bottom" bgcolor="#E5FFFF">
      <TD align=left width=35% nowrap>
        <FONT size="2" face="serif">Equipment deposit</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=18%>&nbsp;  </TD>
      <TD align=left width=3% nowrap>&nbsp;  </TD>
      <TD align=right width=8% nowrap>
        <FONT size="2" face="serif">-</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=6%>&nbsp;  </TD>
      <TD align=left width=3% nowrap>&nbsp;  </TD>
      <TD align=right width=9% nowrap>
        <FONT size="2" face="serif">293</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=4%>&nbsp;  </TD>
      <TD align=left width=2% nowrap>&nbsp;  </TD>
      <TD align=right width=12% nowrap>
        <FONT size="2" face="serif">-</FONT><font size="2">&nbsp;
      </font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left width=35% nowrap>
        <FONT size="2" face="serif">Other</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=18%>&nbsp;  </TD>
      <TD align=left width=3% nowrap STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
      <TD align=right width=8% nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">200</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=6%>&nbsp;  </TD>
      <TD align=left width=3% nowrap STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
      <TD align=right width=9% nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">115</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=4%>&nbsp;  </TD>
      <TD align=left width=2% nowrap STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
      <TD align=right width=12% nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">121</FONT><font size="2">&nbsp;
      </font></TD>
    </TR>
    <TR valign="bottom" bgcolor="#E5FFFF">
      <TD align=left width=35% nowrap>
        <FONT size="2" face="serif">Total</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=18%>&nbsp;  </TD>
      <TD align=left width=3% nowrap>&nbsp;  </TD>
      <TD align=right width=8% nowrap>
        <FONT size="2" face="serif">13,578</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=6%>&nbsp;  </TD>
      <TD align=left width=3% nowrap>&nbsp;  </TD>
      <TD align=right width=9% nowrap>
        <FONT size="2" face="serif">14,803</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=4%>&nbsp;  </TD>
      <TD align=left width=2% nowrap>&nbsp;  </TD>
      <TD align=right width=12% nowrap>
        <FONT size="2" face="serif">23,844</FONT><font size="2">&nbsp;
      </font></TD>
    </TR>
    <TR valign="bottom">
      <TD align=left width=35% nowrap>
        <FONT size="2" face="serif">Less current portion</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=18%>&nbsp;  </TD>
      <TD align=left width=3% nowrap STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
      <TD align=right width=8% nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">-</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=6%>&nbsp;  </TD>
      <TD align=left width=3% nowrap STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
      <TD align=right width=9% nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">-</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=4%>&nbsp;  </TD>
      <TD align=left width=2% nowrap STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
      <TD align=right width=12% nowrap STYLE="border-bottom:1px solid #000000;">
        <FONT size="2" face="serif">249</FONT><font size="2">&nbsp;
      </font></TD>
    </TR>
    <TR valign="bottom" bgcolor="#E5FFFF">
      <TD align=left width=35% nowrap>
        <FONT size="2" face="serif">Long term</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=18%>&nbsp;  </TD>
      <TD align=left width=3% nowrap style="border-bottom:3px double #000;">
      <FONT size="2" face="serif">&#36;</FONT>  </TD>
      <TD align=right width=8% nowrap style="border-bottom:3px double #000;">
        <FONT size="2" face="serif">13,578</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=6%>&nbsp;  </TD>
      <TD align=left width=3% nowrap style="border-bottom:3px double #000;">
      <FONT size="2" face="serif">&#36;</FONT>  </TD>
      <TD align=right width=9% nowrap style="border-bottom:3px double #000;">
        <FONT size="2" face="serif">14,803</FONT><font size="2">&nbsp;
      </font></TD>
      <TD width=4%>&nbsp;  </TD>
      <TD align=left width=2% nowrap style="border-bottom:3px double #000;">
      <FONT size="2" face="serif">&#36;</FONT>  </TD>
      <TD align=right width=12% nowrap style="border-bottom:3px double #000;">
        <FONT size="2" face="serif">23,595</FONT><font size="2">&nbsp;
      </font></TD>
    </TR>
  </TABLE>
</div>




<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif"> Prepaid loan fees represent amounts paid to obtain
  mortgage debt, borrowings under the Company&#146;s line of credit and ethanol
  construction loans. Such amounts are amortized as interest expense. </FONT>  </p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Prepaid commissions represent sales commissions
  paid in connection with extended warranties sold by the Company&#146;s retail
  sale staff. Such amounts are capitalized and amortized ratably over the life
  of the extended warranty plan sold.</FONT> </p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Advance equity investment at July 31, 2007, represents
  a payment made to Big River Resources, LLC (&#147;Big River&#148;) in July 2007 and was effective August 1, 2007; this increased the Company&#146;s
ownership percentage in Big River from 6.9% to 9.8%.</FONT></p>
<p><font size="2"><B><FONT face="serif">Note 8. <I>Long Term Debt and Interest Rate Swaps</I></FONT></B></font></p>
<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size="2"><FONT face="serif">During the first six months of fiscal year
  2008, Levelland Hockley borrowed &#36;19.8 million under its construction loan
  agreement to fund construction of its ethanol plant. During the second quarter
  of fiscal year 2008, pursuant to the terms of the construction loan agreement,
  Levelland Hockley converted the construction loan into a permanent term loan.
  Beginning with the first monthly payment, due June 30, 2008, payments will
  be due in 59 equal monthly payments of</FONT></font>

</p>
<p align="center">  <FONT size="2" face="serif">18</FONT></p>

<HR noshade align="center" width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>


    <p><FONT size="2" face="serif"> principal plus accrued interest with
  the principal portion calculated based on a 120 month amortization schedule. One final installment will be required on the maturity date (June 30, 2013) for the remaining unpaid principal balance with accrued interest. The term loan bears interest at a floating rate of 400 basis
      points above LIBOR, adjusted monthly through the maturity date. </FONT>        </p>
    <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">During the first six months of fiscal year
      2008, One Earth borrowed &#36;8.9 million under its construction loan
      agreement to fund construction of its ethanol plant.</FONT>        </p>
    <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">Levelland Hockley entered into a forward
      interest rate swap in the notional amount of &#36;43.7 million during fiscal year 2007. The swap effectively fixed the variable interest rate, for the first two years, of the term loan
      subsequent to the plant completion date at 7.89%. The swap settlements commence as of May 31, 2008 and terminate on May 31, 2010. At July 31, 2008, the Company has recorded a liability of &#36;431,000
      related to the fair value of the swap. The change in fair value was
recorded in the Consolidated Condensed Statements of Income. </FONT>        </p>
    <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">One Earth entered into a forward interest
      rate swap in the notional amount of &#36;50.0 million during fiscal year 2007. The swap effectively fixed a portion of the variable interest rate of the term loan subsequent to the plant
      completion date at 7.9%. The swap settlements commence as of July 31, 2009 and terminate on July 8, 2014. At July 31, 2008, the Company has recorded a liability of &#36;643,000
      related to the fair value of the swap. The change in fair value was
recorded in the Consolidated Condensed Statements of Income. </FONT>        </p>
    <p><font size="2"><B><FONT face="serif">Note 9. <I>Stock Option Plans</I></FONT></B></font>        </p>
    <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" 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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">No options have been granted since fiscal year 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 grants. </FONT>        </p>
    <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif">The total intrinsic value of options exercised
      during the six months ended July 31, 2008 and 2007 was approximately &#36;0.7 million and &#36;4.4 million, respectively, resulting in tax deductions of
      approximately &#36;0.3 million and &#36;1.7 million, respectively.
      The following table summarizes options exercised and canceled or expired during the six months ended July 31, 2008:</FONT>      </p>
<p align="center"><FONT size="2" face="serif">19</FONT>    </p>
<HR noshade align="center" width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>


    <FONT size="2" face="serif"></FONT>

<TABLE border=0 width=100% cellspacing=0 cellpadding=0>
<TR valign="bottom">
  <TD align=left width=14% nowrap>&nbsp;  </TD>
  <TD width=44%>&nbsp;  </TD>
  <TD align=left width=7% nowrap>&nbsp;  </TD>
  <TD align=left width=2% nowrap>&nbsp;  </TD>
  <TD width=3% align="left">&nbsp;  </TD>
  <TD colspan="2" align=left nowrap>&nbsp;    </TD>
  <TD width=4% align="left">&nbsp;  </TD>
  <TD align=left width=7% nowrap>
<FONT size="2" face="serif">Weighted Average</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width=2% align="left">&nbsp;  </TD>
  <TD colspan="2" align=left nowrap>
<FONT size="2" face="serif">Aggregate</FONT><font size="2">&nbsp;
  </font></TD>
  </TR>
<TR valign="bottom">
  <TD align=left width=14% nowrap>&nbsp;  </TD>
  <TD width=44%>&nbsp;  </TD>
  <TD align=left width=7% nowrap>&nbsp;  </TD>
  <TD align=left width=2% nowrap>&nbsp;  </TD>
  <TD width=3% align="left">&nbsp;  </TD>
  <TD colspan="2" align=left nowrap>
<FONT size="2" face="serif">Weighted Average </FONT><font size="2">&nbsp;
  </font></TD>
  <TD align=left width=4% nowrap>&nbsp;</TD>
  <TD align=left width=7% nowrap><FONT size="2" face="serif">Remaining</FONT></TD>
  <TD width=2% align="left">&nbsp;  </TD>
  <TD colspan="2" align=left nowrap>
<FONT size="2" face="serif">Intrinsic Value</FONT><font size="2">&nbsp;
  </font></TD>
  </TR>

<TR valign="bottom">
  <TD align=left width=14% nowrap>&nbsp;  </TD>
  <TD width=44%>&nbsp;  </TD>
  <TD align=left width=7% nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size="2" face="serif">Shares</FONT>  </TD>
  <TD align=left width=2% nowrap>&nbsp;  </TD>
  <TD width=3% align="left">&nbsp;  </TD>
  <TD colspan="2" align=left nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size="2" face="serif">Exercise Price</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width=4% align="left">&nbsp;  </TD>
  <TD align=left width=7% nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size="2" face="serif">Contractual Term</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width=2% align="left">&nbsp;  </TD>
  <TD colspan="2" align=left nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size="2" face="serif">(in thousands)</FONT><font size="2">&nbsp;
  </font></TD>
  </TR>

<TR valign="bottom" bgcolor="#E5FFFF">
  <TD width=14% align=left nowrap>
<FONT size="2" face="serif">Outstanding at January 31,</FONT><font size="2">&nbsp; </font><FONT size="2" face="serif">2008</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width=44%>&nbsp;  </TD>
  <TD width=7% align=right nowrap>
<FONT size="2" face="serif">3,016,422</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=3%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD width=7% align=right nowrap>
<FONT size="2" face="serif">9.16</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width=4%>&nbsp;  </TD>
  <TD width=7% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=1% align=right nowrap>&nbsp;  </TD>
  <TD width=7% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left width=14% nowrap>
<FONT size="2" face="serif">Exercised</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width=44%>&nbsp;  </TD>
  <TD align=right width=7% nowrap>
<FONT size="2" face="serif">(58,620</FONT>  </TD>
  <TD align=left width=2% nowrap>
<FONT size="2" face="serif">)</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width=3%>&nbsp;  </TD>
  <TD align=right width=2% nowrap>
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD align=right width=7% nowrap>
<FONT size="2" face="serif">5.64</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width=4%>&nbsp;  </TD>
  <TD align=left width=7% nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=right width=1% nowrap>&nbsp;  </TD>
  <TD align=left width=7% nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD width=14% align=left nowrap>
<FONT size="2" face="serif">Forfeited</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width=44%>&nbsp;  </TD>
  <TD width=7% align=right nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size="2" face="serif">(1,200</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT size="2" face="serif">)</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width=3%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD width=7% align=right nowrap>
<FONT size="2" face="serif">12.64</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width=4%>&nbsp;  </TD>
  <TD width=7% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=1% align=right nowrap>&nbsp;  </TD>
  <TD width=7% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left width=14% nowrap>
<FONT size="2" face="serif">Outstanding at July 31, 2008</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width=44%>&nbsp;  </TD>
  <TD align=right width=7% nowrap>
<FONT size="2" face="serif">2,956,602</FONT>  </TD>
  <TD align=left width=2% nowrap>&nbsp;  </TD>
  <TD width=3%>&nbsp;  </TD>
  <TD align=right width=2% nowrap>
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD align=right width=7% nowrap>
<FONT size="2" face="serif">9.23</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width=4%>&nbsp;  </TD>
  <TD align=right width=7% nowrap>
<FONT size="2" face="serif">3.0</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD align=right width=1% nowrap>
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD align=right width=7% nowrap>
 <font size="2"><FONT face="serif">9,796</FONT>&nbsp;  </font></TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD width=14% align=left nowrap>
<FONT size="2" face="serif">Exercisable at July 31, 2008</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width=44%>&nbsp;  </TD>
  <TD width=7% align=right nowrap>
<FONT size="2" face="serif">2,854,434</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=3%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD width=7% align=right nowrap>
<FONT size="2" face="serif">9.10</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width=4%>&nbsp;  </TD>
  <TD width=7% align=right nowrap>
<FONT size="2" face="serif">2.9</FONT><font size="2">&nbsp;
  </font></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=1% align=right nowrap>
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD width=7% align=right nowrap>
 <font size="2">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">9,795</FONT>&nbsp;  </font></TD>
</TR>
</TABLE>

<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" face="serif"> At July 31, 2008, there was approximately &#36;0.7 million (pre-tax) of unrecognized compensation cost related to nonvested stock options, which is expected to be recognized over a weighted average period of 0.7 years. </FONT>
<p><font size="2"><B><FONT face="serif">Note 10. <I>Income Per Share from Continuing Operations</I></FONT></B> </font>
  <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size="2" 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>

<TABLE width=100% border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD colspan="7" align=center nowrap>
    <FONT size="2" face="serif">Three Months Ended</FONT></TD>
  <TD width="6%" align="center">&nbsp;  </TD>
  <TD colspan="7" align=center nowrap>
    <FONT size="2" face="serif">Six Months Ended</FONT>      </TD>
  </TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD colspan="7" align=center nowrap STYLE="border-bottom:1px solid #000000;">
    <FONT size="2" face="serif">July 31, 2008</FONT>      </TD>
  <TD width="6%" align="center">&nbsp;  </TD>
  <TD colspan="7" align=center nowrap STYLE="border-bottom:1px solid #000000;">
    <FONT size="2" face="serif">July 31, 2008</FONT>      </TD>
  </TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap>
    <font size="2">&nbsp;<FONT face="serif">Per</FONT></font></TD>
  <TD width="6%" align="center">&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap>
    <font size="2">&nbsp;<FONT face="serif">Per</FONT></font></TD>
  </TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
    <FONT size="2" face="serif">Income</FONT></TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD align=center nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size="2" face="serif">Shares</FONT></TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
    <FONT size="2" face="serif">Share</FONT></TD>
  <TD width="6%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
    <FONT size="2" face="serif">Income</FONT></TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD align=center nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size="2" face="serif">Shares</FONT></TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
    <FONT size="2" face="serif">Share</FONT></TD>
  </TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT size="2" face="serif">Basic income per share from</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right 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 width="3%">&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&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 size="2" face="serif">continuing operations</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">1,052</FONT></TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size="2" face="serif">10,510</FONT></TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap  STYLE="border-bottom:3px double #000000;">
 <font size="2">&nbsp; &nbsp; &nbsp;<FONT face="serif">0.10</FONT></font></TD>
  <TD width="6%">&nbsp;  </TD>
  <TD align=left nowrap>
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap>
 <font size="2">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">2,711</FONT></font></TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size="2" face="serif">10,618</FONT></TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
 <font size="2">&nbsp; &nbsp; &nbsp;<FONT face="serif">0.26</FONT></font></TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT size="2" face="serif">Effect of stock options</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size="2" face="serif">636</FONT></TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD width="6%">&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size="2" face="serif">778</FONT></TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT size="2" face="serif">Diluted income per share from</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD width="6%">&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT size="2" face="serif">continuing operations</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">1,052</FONT></TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">11,146</FONT></TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
 <font size="2">&nbsp; &nbsp; &nbsp;<FONT face="serif">0.09</FONT></font></TD>
  <TD width="6%">&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
 <font size="2">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">2,711</FONT></font></TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">11,396</FONT></TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
 <font size="2">&nbsp; &nbsp; &nbsp;<FONT face="serif">0.24</FONT></font></TD>
</TR>
<TR>
  <TD colspan=17>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD colspan="7" align=center nowrap>
    <FONT size="2" face="serif">Three Months Ended</FONT></TD>
  <TD width="6%" align="center">&nbsp;  </TD>
  <TD colspan="7" align=center nowrap>
    <FONT size="2" face="serif">Six Months Ended</FONT></TD>
  </TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD colspan="7" align=center nowrap STYLE="border-bottom:1px solid #000000;">
    <FONT size="2" face="serif">July 31, 2007</FONT>      </TD>
  <TD width="6%" align="center">&nbsp;  </TD>
  <TD colspan="7" align=center nowrap STYLE="border-bottom:1px solid #000000;">
    <FONT size="2" face="serif">July 31, 2007</FONT>      </TD>
  </TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap>
    <font size="2"><FONT face="serif">Per</FONT></font></TD>
  <TD width="6%" align="center">&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD align=center nowrap>&nbsp;  </TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap>
    <font size="2">&nbsp; &nbsp;<FONT face="serif">Per</FONT></font></TD>
  </TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD>&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
    <FONT size="2" face="serif">Income</FONT></TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD align=center nowrap STYLE="border-bottom:1px solid #000000;">
 <font size="2">&nbsp;<FONT face="serif">Shares</FONT></font></TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
    <font size="2">&nbsp;<FONT face="serif">Share</FONT></font></TD>
  <TD width="6%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
    <font size="2">&nbsp;<FONT face="serif">Income</FONT></font></TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD align=center nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size="2" face="serif">Shares</FONT></TD>
  <TD width="3%" align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap STYLE="border-bottom:1px solid #000000;">
    <font size="2">&nbsp;<FONT face="serif">Share</FONT></font></TD>
  </TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT size="2" face="serif">Basic income per share from</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right 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 width="3%">&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&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 size="2" face="serif">continuing operations</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap>
 <font size="2">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">3,854</FONT></font></TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size="2" face="serif">10,625</FONT></TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
 <font size="2">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">0.36</FONT></font></TD>
  <TD width="6%">&nbsp;  </TD>
  <TD align=left nowrap>
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap>
 <font size="2">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">9,433</FONT></font></TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap>
<FONT size="2" face="serif">10,548</FONT></TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap style="border-bottom:3px double #000;">
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap style="border-bottom:3px double #000;">
 <font size="2">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">0.90</FONT></font></TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT size="2" face="serif">Effect of stock options</FONT></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;">&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size="2" face="serif">1,364</FONT></TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD width="6%">&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD align=right nowrap STYLE="border-bottom:1px solid #000000;">&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap STYLE="border-bottom:1px solid #000000;">
<FONT size="2" face="serif">1,363</FONT></TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT size="2" face="serif">Diluted income per share from</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD width="6%">&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;  </TD>
  <TD align=right nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT size="2" face="serif">continuing operations</FONT></TD>
  <TD>&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
 <font size="2">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">3,854</FONT></font></TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">11,989</FONT></TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
 <font size="2">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">0.32</FONT></font></TD>
  <TD width="6%">&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
 <font size="2">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">9,433</FONT></font></TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">11,911</FONT></TD>
  <TD width="3%">&nbsp;  </TD>
  <TD align=left nowrap STYLE="border-bottom:3px double #000000;">
<FONT size="2" face="serif">&#36;</FONT>  </TD>
  <TD align=right nowrap STYLE="border-bottom:3px double #000000;">
 <font size="2">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">0.79</FONT></font></TD>
</TR>
</TABLE>

<p><FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the three months ended July 31, 2008 and 2007, a total of 286,936 shares and 117,719 shares, respectively, and for the six months ended July 31, 2008 and 2007, a total of 66,836 shares and 217,319 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>

</p>
<p align="center"><FONT size="2" face="serif">20</FONT>

</p>
<HR noshade align="center" width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>

<P align="left">
<B><FONT face="serif" size="2">Note 11. </FONT></B><B><I><FONT face="serif" size="2">Synthetic Fuel</FONT></I></B></P>
<P align="left">
<FONT face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income from continuing operations for the first six months of fiscal year 2008 includes approximately &#36;0.7 million of pre-tax investment income from the sales of the Company&#146;s entire
partnership interests in Colona SynFuel Limited Partnership, L.L.L.P., (Colona) and Somerset Synfuel, L.P. (Somerset). This income represents the estimated final settlements for calendar year 2007 production as all synthetic fuel production ceased
during fiscal year 2007. As the Section 29/45K program expired December 31, 2007, the Company does not expect significant additional income from these sales. During the second quarter and first six months of fiscal year 2007, the Company recorded
approximately &#36;3.4 million and &#36;10.1 million, respectively, of pre-tax investment income from these sales.</FONT></P>
<P align="left">
<FONT face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company also sold its membership interest in the limited liability company that owned a synthetic fuel facility in Gillette, Wyoming. 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 and timing of
collecting payments related to production occurring after September 30, 2006. Thus, the Company cannot currently determine the timing of income recognition, if any, related to production occurring subsequent to September 30, 2006. The Company did
not recognize any income from this sale during the first six months of fiscal years 2008 or 2007.</FONT></P>
<P align="left">
<FONT face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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=100% border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="5" align=center nowrap>
<FONT face="serif" size="2">Three Months Ended</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="5" align=center nowrap>
<FONT face="serif" size="2">Six Months Ended</FONT>&nbsp;  </TD>
  </TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="5" align=center nowrap>
<FONT face="serif" size="2">July 31,</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="5" align=center nowrap>
<FONT face="serif" size="2">July 31,</FONT>&nbsp;        </TD>
  </TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">2008</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">2007</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">2008</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=center nowrap style="border-bottom:1px solid #000000">
 &nbsp; &nbsp;<FONT face="serif" size="2">2007</FONT>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=13>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">February 1, 1999 Colona sale</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">-</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">949</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">186</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
 &nbsp; &nbsp;<FONT face="serif" size="2">2,894</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">July 31, 2000 Colona sale</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">-</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">757</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">149</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
 &nbsp; &nbsp;<FONT face="serif" size="2">2,309</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">May 31, 2001 Colona sale</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">-</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">673</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">132</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
 &nbsp; &nbsp;<FONT face="serif" size="2">2,052</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">October 1, 2005 Somerset sale</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">-</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">1,027</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">203</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
 &nbsp; &nbsp;<FONT face="serif" size="2">2,884</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">-</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">3,406</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">670</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
 &nbsp;<FONT face="serif" size="2">10,139</FONT>&nbsp;  </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT face="serif" size="2">21</FONT></P>

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



<P align="left" style="page-break-before:always"></P><PAGE>

<P align="left">
<B><FONT face="serif" size="2">Note 12. </FONT></B><B><I><FONT face="serif" size="2">Investments</FONT></I></B></P>
<P align="left">
<B><I><FONT face="serif" size="2"> </FONT></I></B><FONT face="serif" size="2">The following tables summarize investments at July 31, 2008, January 31, 2008 and July 31, 2007 (amounts in thousands):</FONT></P>
<TABLE width=100% border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left nowrap colspan=3>
<FONT face="serif" size="2">Debt Securities July 31, 2008</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>
<FONT face="serif" size="2">Fair Market</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>
<FONT face="serif" size="2">Carrying</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Investment</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Coupon Rate</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=10% align=left nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Maturity</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Classification</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=12% align=left nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Value</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=left nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Amount</FONT>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=14>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">United States</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>
<FONT face="serif" size="2">Held to</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Treasury Bill</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">1.83</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=10% align=left nowrap>
<FONT face="serif" size="2">9/4/2008</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>
<FONT face="serif" size="2">Maturity</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=12% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">1,563</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">1,563</FONT>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=14>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Total Debt</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Securities</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=12% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">1,563</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">1,563</FONT>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=14>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap colspan=3>
<FONT face="serif" size="2">Debt Securities January 31, 2008</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>
<FONT face="serif" size="2">Fair Market</FONT>&nbsp;  </TD>
  <TD width=2% align="left">&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>
<FONT face="serif" size="2">Carrying</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Investment</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Coupon Rate</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align="left">&nbsp;  </TD>
  <TD width=10% align=left nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Maturity</FONT>&nbsp;  </TD>
  <TD width=2% align="left">&nbsp;  </TD>
  <TD width=12% align=left nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Classification</FONT>&nbsp;  </TD>
  <TD width=2% align="left">&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=12% align=left nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Value</FONT>&nbsp;  </TD>
  <TD width=2% align="left">&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=left nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Amount</FONT>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=14>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">United States</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>
<FONT face="serif" size="2">Held to</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Treasury Bill</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">2.82</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=10% align=left nowrap>
<FONT face="serif" size="2">2/28/2008</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>
<FONT face="serif" size="2">Maturity</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=12% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">1,548</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">1,548</FONT>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=14>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Total Debt</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Securities</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=12% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">1,548</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">1,548</FONT>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=14>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap colspan=3>
<FONT face="serif" size="2">Debt Securities July 31, 2007</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>
<FONT face="serif" size="2">Fair Market</FONT>&nbsp;  </TD>
  <TD width=2% align="left">&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>
<FONT face="serif" size="2">Carrying</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Investment</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Coupon Rate</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align="left">&nbsp;  </TD>
  <TD width=10% align=left nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Maturity</FONT>&nbsp;  </TD>
  <TD width=2% align="left">&nbsp;  </TD>
  <TD width=12% align=left nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Classification</FONT>&nbsp;  </TD>
  <TD width=2% align="left">&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=12% align=left nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Value</FONT>&nbsp;  </TD>
  <TD width=2% align="left">&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=left nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Amount</FONT>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=14>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Federal National</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Mortgage</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>
<FONT face="serif" size="2">Held to</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Association Note</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">5.17</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=10% align=left nowrap>
<FONT face="serif" size="2">8/15/2007</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>
<FONT face="serif" size="2">Maturity</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">1,511</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">1,511</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Millennium</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Ethanol, LLC</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>
<FONT face="serif" size="2">Available for</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Convertible Note</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">15.60</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=10% align=left nowrap>
<FONT face="serif" size="2">4/1/2015</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>
<FONT face="serif" size="2">Sale</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">29,675</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">29,675</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">One Earth</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Energy, LLC</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>
<FONT face="serif" size="2">Held to</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Promissory Note</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">9.00</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=10% align=left nowrap>
<FONT face="serif" size="2">12/1/2007</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>
<FONT face="serif" size="2">Maturity</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">3,000</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">3,000</FONT>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=14>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Total Debt</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" >
  <TD align=left nowrap>
<FONT face="serif" size="2">Securities</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=12% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">34,186</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">34,186</FONT>&nbsp;  </TD>
</TR>
</TABLE>
<BR>
<P align="left">
<FONT face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There were no unrealized holding gains or losses in fiscal year 2008 compared to an unrealized holding gain of &#36;15.7 million at July 31, 2007. </FONT></P>
<P align="left">
<FONT face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has approximately &#36;933,000
at July 31, 2008, January 31, 2008 and July 31, </FONT></P>
<P align="center">
<FONT face="serif" size="2">22</FONT></P>

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



<P align="left" style="page-break-before:always"></P><PAGE>

<P align="left">
<FONT face="serif" size="2">2007 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 4.0%, 6.3%</FONT><FONT face="serif" size="2"> </FONT><FONT face="serif" size="2">and
4.3% at July 31, 2008, January 31, 2008 and July 31,  2007, respectively. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">The following table summarizes equity method investments at July 31, 2008, January 31, 2008 and July 31, 2007 (amounts in thousands): </FONT></P>
<TABLE width=100% border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left nowrap colspan=3>
<FONT face="serif" size="2">Equity Method Investments July 31, 2008</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=9>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Entity</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Ownership Percentage</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Carrying Amount</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Initial Investment</FONT>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=9>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Big River Resources,</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">LLC</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=center nowrap>
<FONT face="serif" size="2">10%</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=12% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">23,759</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=12% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">20,000</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Patriot Renewable Fuels,</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=center nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=right nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=right nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">LLC</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=center nowrap>
<FONT face="serif" size="2">23%</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">16,746</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">16,000</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Total Equity Method</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=right nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=right nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Investments</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=12% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">40,505</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=12% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">36,000</FONT>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=9>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap colspan=3>
<FONT face="serif" size="2">Equity Method Investments January 31, 2008</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=9>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Entity</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Ownership Percentage</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Carrying Amount</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Initial Investment</FONT>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=9>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Big River Resources,</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">LLC</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=center nowrap>
<FONT face="serif" size="2">10%</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">22,353</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">20,000</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Patriot Renewable Fuels,</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=center nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=right nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=right nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">LLC</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=center nowrap>
<FONT face="serif" size="2">23%</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">16,395</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">16,000</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Total Equity Method</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=right nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=right nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Investments</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=12% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">38,748</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=12% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">36,000</FONT>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=9>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap colspan=3>
<FONT face="serif" size="2">Equity Method Investments July 31, 2007</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=9>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Entity</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Ownership Percentage</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Carrying Amount</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Initial Investment</FONT>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=9>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Big River Resources,</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">LLC</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=center nowrap>
<FONT face="serif" size="2">7%</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">11,352</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">10,000</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Patriot Renewable Fuels,</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=center nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=right nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=right nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">LLC</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=center nowrap>
<FONT face="serif" size="2">23%</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">16,860</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">16,000</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Total Equity Method</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=right nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=right nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Investments</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=12% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">28,212</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=12% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">26,000</FONT>&nbsp;  </TD>
</TR>
</TABLE>
<BR>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">During the second quarter of fiscal years 2008 and 2007, the Company recorded income of &#36;799,000 and &#36;309,000, respectively as its share of earnings from Big River. During the first six months of fiscal years 2008 and
2007, the Company recorded income of &#36;1,806,000 and &#36;1,379,000 respectively as its share of earnings from Big River. </FONT></P>
<P align="center">
<FONT face="serif" size="2">23</FONT></P>

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



<P align="left" style="page-break-before:always"></P><PAGE>

<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">The Company has capitalized interest included in equity method investments of &#36;1,408,000 and &#36;716,000 at July 31, 2008 and 2007, respectively as Patriot is constructing its ethanol plant.
During the second quarter of fiscal years 2008 and 2007, the Company recorded income of &#36;75,000 and &#36;103,000, respectively as its share of earnings from Patriot. During the first six months of fiscal years 2008 and 2007, the Company recorded income of &#36;116,000 and &#36;143,000 respectively as its share of earnings
from Patriot. Undistributed earnings of equity method investees totaled approximately &#36;4.0 million and &#36;1.5
million at July 31, 2008 and 2007, respectively.</FONT>
</P>
<P align="left">
<B><FONT face="serif" size="2">Note 13. </FONT></B><B><I><FONT face="serif" size="2">Income Taxes</FONT></I></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">The effective tax rate on consolidated pre-tax income from continuing operations was 28.3% for the six months ended July 31, 2008, 36.9% for the year ended January 31, 2008 and 39.4%
for the six months ended July 31, 2007. An adjustment for recognizing the benefit of certain statutes of limitations expiring relating to uncertain tax positions of (6.9)% is reflected in the effective rate for the six months ended July 31, 2008. In
addition, a benefit of (8.4)% was recognized for a federal tax credit which is earned by Levelland Hockley as a small ethanol producer. The provision for state taxes is approximately 5% and 3% for the six months ended July 31, 2008 and 2007,
respectively. The provision for state taxes was approximately 2% for the year ended January 31, 2008. The effective tax rate was increased for the first six months of fiscal year 2008 by approximately 1.8% from the loss of pass-through entities
(Levelland Hockley and One Earth) that is allocated to non-controlling interests. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I><FONT face="serif" size="2"> </FONT></I></B><FONT face="serif" size="2">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 January 31, 2004 and prior.  </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">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 July 31, 2008, total unrecognized tax benefits were
&#36;1,019,000 and accrued penalties and interest were &#36;133,000. If the company were to prevail on all unrecognized tax benefits recorded, approximately &#36;265,000 of the reserve would benefit the effective tax rate. 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;<FONT face="serif" size="2">On a quarterly and annual basis, the Company accrues for the effects of open uncertain tax positions and the related potential penalties and interest. The Company recognized a benefit of approximately &#36;266,000 during the
first six months of fiscal year 2008, related to statutes of limitations expiring in certain states. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">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 Company does not expect the change to
have a significant effect on results of operations or financial position. A reconciliation of the beginning and ending amount of unrecognized tax benefits,</FONT></P>
<P align="center">
<FONT face="serif" size="2">24</FONT></P>

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



<P align="left" style="page-break-before:always"></P><PAGE>

<P align="left">
<FONT face="serif" size="2">including interest and penalties, is as follows (amounts in thousands):</FONT></P>
<TABLE width=100% border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD width=86% align=left nowrap>
<FONT face="serif" size="2">Unrecognized tax benefits, February 1, 2008</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">1,394</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD width=86% align=left nowrap>
<FONT face="serif" size="2">Changes for tax positions for prior years, net</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">(242</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD width=86% align=left nowrap>
<FONT face="serif" size="2">Changes for current year tax positions</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=8% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">-</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD width=86% align=left nowrap>
<FONT face="serif" size="2">Unrecognized tax benefits, July 31, 2008</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=8% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">1,152</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
</TABLE>
<BR>
<P align="left">
<B><FONT face="serif" size="2">Note 14. </FONT></B><B><I><FONT face="serif" size="2">Discontinued Operations and Assets Held for Sale</FONT></I></B><B><FONT face="serif" size="2"> </FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">During the first six months of fiscal year 2008, the Company closed five 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. Vacant land adjacent to a closed store is classified as held for sale. The net assets of the land at July 31, 2008 were approximately &#36;0.1
million. The Company expects to sell the land within the next 12 months through normal real estate channels.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">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=100% border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD align=center nowrap colspan=5>
<FONT face="serif" size="2">Three Months Ended</FONT>  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD align=center nowrap colspan=5>
<FONT face="serif" size="2">Six Months Ended</FONT>  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD colspan=5 align=center nowrap style="border-bottom:1px solid #000000">
 <FONT face="serif" size="2">July 31,</FONT>  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD align=center nowrap colspan=5 style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">July 31,</FONT>  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width="8%" align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">2008</FONT>  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width="8%" align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">2007</FONT>  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width="8%" align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">2008</FONT>  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width="8%" align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">2007</FONT>  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD colspan="14" align=center nowrap>
    <FONT face="serif" size="2">(In Thousands)</FONT>          </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Net sales and revenue</FONT>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width="8%" align=right nowrap>
<FONT face="serif" size="2">255</FONT>  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width="8%" align=right nowrap>
<FONT face="serif" size="2">13,185</FONT>  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width="8%" align=right nowrap>
<FONT face="serif" size="2">1,115</FONT>  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width="8%" align=right nowrap>
<FONT face="serif" size="2">34,338</FONT>  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Cost of sales</FONT>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="8%" align=right nowrap>
<FONT face="serif" size="2">230</FONT>  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="8%" align=right nowrap>
<FONT face="serif" size="2">10,542</FONT>  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="8%" align=right nowrap>
<FONT face="serif" size="2">1,021</FONT>  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="8%" align=right nowrap>
<FONT face="serif" size="2">27,060</FONT>  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Loss before income taxes</FONT>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="8%" align=right nowrap>
<FONT face="serif" size="2">(64</FONT>  </TD>
  <TD width="2%" align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="8%" align=right nowrap>
<FONT face="serif" size="2">(916</FONT>  </TD>
  <TD width="2%" align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="8%" align=right nowrap>
<FONT face="serif" size="2">(279</FONT>  </TD>
  <TD width="2%" align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="8%" align=right nowrap>
<FONT face="serif" size="2">(2,390</FONT>  </TD>
  <TD width="2%" align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Benefit for income taxes</FONT>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="8%" align=right nowrap>
<FONT face="serif" size="2">23</FONT>  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="8%" align=right nowrap>
<FONT face="serif" size="2">329</FONT>  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="8%" align=right nowrap>
<FONT face="serif" size="2">106</FONT>  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="8%" align=right nowrap>
<FONT face="serif" size="2">880</FONT>  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Gain on disposal</FONT>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="8%" align=right nowrap>
<FONT face="serif" size="2">305</FONT>  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="8%" align=right nowrap>
<FONT face="serif" size="2">3,965</FONT>  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="8%" align=right nowrap>
<FONT face="serif" size="2">305</FONT>  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="8%" align=right nowrap>
<FONT face="serif" size="2">8,449</FONT>  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Provision for income taxes</FONT>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="8%" align=right nowrap>
<FONT face="serif" size="2">(110</FONT>  </TD>
  <TD width="2%" align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="8%" align=right nowrap>
<FONT face="serif" size="2">(1,422</FONT>  </TD>
  <TD width="2%" align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="8%" align=right nowrap>
<FONT face="serif" size="2">(111</FONT>  </TD>
  <TD width="2%" align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="8%" align=right nowrap>
<FONT face="serif" size="2">(3,028</FONT>  </TD>
  <TD width="2%" align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Net income (loss)</FONT>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width="8%" align=right nowrap>
<FONT face="serif" size="2">154</FONT>  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width="8%" align=right nowrap>
<FONT face="serif" size="2">1,956</FONT>  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width="8%" align=right nowrap>
<FONT face="serif" size="2">21</FONT>  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
  <TD width="2%">&nbsp;  </TD>
  <TD width="2%" align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width="8%" align=right nowrap>
<FONT face="serif" size="2">3,911</FONT>  </TD>
  <TD width="2%" align=left nowrap>&nbsp;  </TD>
</TR>
</TABLE>
<BR>
<P align="left">
<B><FONT face="serif" size="2">Note 15. </FONT></B><B><I><FONT face="serif" size="2">Commitments and Contingencies</FONT></I></B><B><FONT face="serif" size="2"> </FONT></B></P>

<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">In June 2006, Levelland Hockley entered into an agreement with a designer/builder for the construction of Levelland&#146;s ethanol plant. The designer/builder is responsible for all engineering, labor, materials and equipment to
design, construct, startup and achieve guaranteed performance criteria of the plant. The contract price is approximately &#36;58.5 million, subject to adjustments as provided by the general conditions of the agreement, of which approximately
&#36;56.4 million has been spent through July 31, 2008. The Company expects to pay the remaining amount due from a restricted cash account held in escrow. At March 31, 2008, the ethanol plant was in production as construction was substantially
completed, however, there are ongoing disputes with Layne Christensen Company (&#147;Layne&#148;) concerning the performance of certain water treatment equipment.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">On May 2, 2008, Layne
filed a lawsuit against Levelland Hockley County Ethanol, LLC (&#147;Levelland Hockley&#148;)
in the United States District Court of Kansas at Kansas City, KS. On May 19,
2008, Layne amended its original complaint.</FONT></P>
<P align="center">
<FONT face="serif" size="2">25</FONT></P>

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



<P align="left" style="page-break-before:always"></P><PAGE>

<P align="left">
<FONT face="serif" size="2">Levelland Hockley entered into a lease agreement
with Layne for certain water treatment equipment for its ethanol plant. Layne
is suing Levelland Hockley for interest on late lease payments, repossession
of the water treatment facility that is the subject of the lease and that all
lease payments due under the lease should be accelerated and be immediately due
and payable. The Company believes that it has meritorious defenses to the claims
and intends to vigorously defend against them. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">In July 2002, Levelland Hockley entered into an agreement with RIO Technical Services, Inc. (&#147;RIO&#148;) regarding the planning, financing, design, construction, and operation of Levelland&#146;s ethanol plant. RIO is a
related party, as certain officers of RIO own equity interests in Levelland Hockley. The Company estimates that fees for these services will be approximately &#36;3.0 million, of which approximately &#36;2.3 million has been spent through July 31,
2008. The Company expects to pay the remaining amount due from a restricted cash account held in escrow. In addition, Levelland Hockley paid RIO approximately &#36;3.6 million as compensation for RIO&#146;s evaluation and assistance for Levelland
Hockley to obtain financing. These costs are recorded as either prepaid loan fees or equity issuance costs. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Levelland Hockley has forward purchase contracts for approximately 2,161,000 bushels of sorghum, the principal raw material for its ethanol plant. Levelland Hockley expects to take delivery of the sorghum through December 2008.
The unrealized gain of such contracts was approximately &#36;2.7 million at June 30, 2008. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Levelland Hockley has sales commitments for approximately 5,000 gallons of ethanol and approximately 40,700 tons of distiller grains. Levelland Hockley expects to deliver the ethanol and distiller grains through September 2008.
The unrealized loss of such contracts was approximately &#36;0.9 million at June 30, 2008. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">In May 2007, One Earth entered into an agreement with a designer/builder for the construction of One Earth&#146;s ethanol plant. The designer/builder is responsible for all engineering, labor, materials and equipment to design,
construct, startup and achieve guaranteed performance criteria of the plant. The contract price is approximately &#36;120.2 million, subject to adjustments as provided by the general conditions of the agreement, of which approximately &#36;69.2
million has been spent through July 31, 2008. One Earth has also entered into other construction and facility related contracts. Some of these contracts have been completed and all required funds have been expended as of July 31, 2008. The total of
other incomplete construction and facility related contracts is approximately &#36;11.7 million, of which approximately &#36;6.4 million has been spent through July 31, 2008.</FONT><B><FONT face="serif" size="2"> </FONT></B></P>
<P align="left">
<B><FONT face="serif" size="2">Note 16. </FONT></B><B><I><FONT face="serif" size="2">Segment Reporting</FONT></I></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">The Company has two
reportable segments, consumer electronics and appliance retailing (&#147;retail&#148;)
and alternative energy. The Company evaluates the performance of each reportable
segment  based on segment profit. Segment profit excludes income taxes, indirect
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. Segment profit
includes realized and unrealized gains and losses on derivative financial instruments.</FONT></P>
<P align="center">
<FONT face="serif" size="2">26</FONT></P>

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



<P align="left" style="page-break-before:always"></P><PAGE>

<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">The following tables summarize segment business activities in the periods presented (amounts in thousands): </FONT></P>
<TABLE width=100% border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="6" align=center nowrap>
    <FONT face="serif" size="2">Three Months Ended July 31,</FONT></TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="6" align=center nowrap>
    <FONT face="serif" size="2">Six Months Ended July 31,</FONT></TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">2008</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">2007</FONT></TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">2008</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">2007</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Net sales and revenue:</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Retail</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap><FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">42,513</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">47,915</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap><FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">88,174</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">96,485</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Alternative energy</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">24,857</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">-</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">26,024</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">-</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Total net sales and revenues</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000"><FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">67,370</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">47,915</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">114,198</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">96,485</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=17>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Segment gross profit:</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Retail</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap><FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">12,658</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">15,221</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap><FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">25,977</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">30,618</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Alternative energy</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">634</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">-</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">690</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">-</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Total gross profit</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000"><FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">13,292</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">15,221</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000"><FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">26,667</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">30,618</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=17>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Segment profit:</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Retail segment profit</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap><FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">774</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">1,897</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap><FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">1,635</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">3,711</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Alternative energy segment profit</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">983</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">746</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">1,406</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">2,152</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Corporate expense</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">(579</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">(865</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">(1,112</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">(1,476</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Interest expense</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">(100</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">(34</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">(221</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">(723</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Interest income</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">478</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">1,213</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">1,140</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">1,839</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Income from synthetic fuel investments</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">-</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">3,406</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">670</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">10,139</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Income from continuing operations</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">before income taxes and minority</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">interest</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000"><FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">1,556</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">6,363</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000"><FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">3,518</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">15,642</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=17>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=center nowrap>
<FONT face="serif" size="2">July 31,</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=center nowrap>
<FONT face="serif" size="2">January 31,</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=center nowrap>
<FONT face="serif" size="2">July 31,</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">2008</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">2008</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">2007</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Assets:</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Retail</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=10% align=right>
<FONT face="serif" size="2">114,238</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">120,711</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">156,634</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Alternative energy</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right>
<FONT face="serif" size="2">217,994</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">167,070</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">104,613</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Corporate</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">107,975</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">121,197</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">121,194</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Total assets</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=10% align=right style="border-bottom:3px double #000000">
<FONT face="serif" size="2">440,207</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">408,978</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">382,441</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=17>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Long- term debt and capital lease</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">obligations:</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Retail</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap><FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">-</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap><FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">-</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap><FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">-</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Alternative energy</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">49,877</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">22,072</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">-</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Corporate</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">12,250</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">13,152</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">19,122</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Total long-term debt and capital lease</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">obligations</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000"><FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">62,127</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">35,224</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
 &nbsp;<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">19,122</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT face="serif" size="2">27</FONT></P>

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



<P align="left" style="page-break-before:always"></P><PAGE>

<TABLE width=100% border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="4" align=center nowrap>
<FONT face="serif" size="2">Three Months Ended July 31,</FONT>    </TD>
  <TD align=center nowrap>&nbsp;</TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="4" align=center nowrap>
<FONT face="serif" size="2">Six Months Ended July 31,</FONT>    </TD>
  <TD align=center nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=center nowrap style="border-bottom:1px solid #000;">
<FONT face="serif" size="2">2008</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=center nowrap style="border-bottom:1px solid #000;">
<FONT face="serif" size="2">2007</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=center nowrap style="border-bottom:1px solid #000;">
<FONT face="serif" size="2">2008</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=center nowrap style="border-bottom:1px solid #000;">
<FONT face="serif" size="2">2007</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Sales of products retail segment:</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Televisions</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">46</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">46</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">50</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">49</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Appliances</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">37</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">36</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">33</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">32</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Audio</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">6</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">6</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">5</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">6</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Video</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">2</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">3</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">2</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">3</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Other</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">2</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">2</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">3</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">3</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Total</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">93</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">93</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">93</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">93</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=13>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Sales of services retail segment:</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Extended service contracts</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">7</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">7</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">7</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">7</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=13>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Total retail segment sales</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">100</FONT>  </TD>
  <TD width=2% align=left nowrap style="padding-bottom:3px;">
<FONT face="serif" size="2">%</FONT>&nbsp;</TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">100</FONT>  </TD>
  <TD width=2% align=left nowrap style="padding-bottom:3px;">
<FONT face="serif" size="2">%</FONT>&nbsp;</TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">100</FONT>  </TD>
  <TD width=2% align=left nowrap style="padding-bottom:3px;">
<FONT face="serif" size="2">%</FONT>&nbsp;</TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">100</FONT>  </TD>
  <TD width=2% align=left nowrap style="padding-bottom:3px;">
<FONT face="serif" size="2">%</FONT>&nbsp;</TD>
</TR>
<TR>
  <TD colspan=13>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Sales of products alternative energy</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">segment:</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Ethanol and related by products</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">100</FONT>  </TD>
  <TD width=2% align=left nowrap style="padding-bottom:3px;">
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">-</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">100</FONT>  </TD>
  <TD width=2% align=left nowrap style="padding-bottom:3px;">
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">-</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
</TABLE>
<BR>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">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 cash and equivalents, synthetic fuel accounts receivable and deferred income tax benefits. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Cash, except for cash held by Levelland Hockley and One Earth, is considered to be fungible and available for both corporate and segment use dependent on liquidity requirements. Cash of approximately &#36;6.0 million held by
Levelland Hockley will be used to fund remaining construction costs and provide working capital.</FONT></P>
<P align="left">
<B><FONT face="serif" size="2">Note 17. </FONT></B><B><I><FONT face="serif" size="2">Subsequent Events</FONT></I></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Subsequent to June
30, 2008, the end of the second quarter for Levelland Hockley, ethanol prices
declined significantly. At June 30, 2008, the fair market value of ethanol per
gallon was approximately &#36;2.89. At
July 31, 2008, the fair market value of ethanol per gallon was approximately &#36;2.33.
At June 30, 2008, the fair market value of corn and sorghum per bushel was approximately &#36;6.50.
At July 31, 2008, the fair market value of corn and sorghum per bushel was approximately &#36;7.60.
</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">On August 4, 2008, the Company&#146;s Board of Directors increased the authorized number of shares that can be repurchased by 500,000 shares. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">On September 5, 2008 the Company sold vacant land adjacent to its Cheyenne, Wyoming warehouse for approximately &#36;848,000. The carrying value of this land is approximately &#36;140,000. </FONT></P>

<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">In September 2008,
Hurricane Gustav caused damage to a minimum of two of the Company&#146;s stores.
The Company is evaluating the related damage to other stores in the area. The
Company does not believe that the impact of business interruption or required
repairs to damaged stores will have a material impact on future results of operations.
However, until the Company is able to complete a thorough evaluation of storm
damage to all of its stores, it cannot estimate the impact of the storm damage
on its financial statements.</FONT></P>

<P align="center">
<FONT face="serif" size="2">28</FONT></P>

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



<P align="left" style="page-break-before:always"></P><PAGE>

<P align="left">
<B><FONT face="serif" size="2">Item 2. </FONT></B><B><I><FONT face="serif" size="2">Management's Discussion and Analysis of Financial Condition and Results of Operations.</FONT></I></B><B><FONT face="serif" size="2"> </FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">We are a specialty retailer in the consumer electronics/appliance industry. As of July 31, 2008, we operated 110 stores in 33 states, predominantly in small to medium-sized markets under the trade
name "REX". We recently initiated a strategic alternative review process for our retail segment. We expect to consider and evaluate a broad range of alternatives during this process.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">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 current investments in four entities as of July 31, 2008, utilizing both debt and equity investments. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Since fiscal year 1998, we invested in three entities which owned facilities producing synthetic fuel. These entities earned 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 unrelated parties. We have sold our entire ownership interest in these entities in prior years, and as a result, receive payments in connection with production of
synthetic fuel. These entities are no longer eligible to receive Section 25/45K income tax credits subsequent to December 31, 2007 and the facilities have permanently ceased operations. </FONT></P>
<P align="left">
<B><FONT face="serif" size="2">Fiscal Year</FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">All references in this report to a particular fiscal year are to REX's fiscal year ended January 31. For example, "fiscal year 2008" means the period February 1, 2008 to January 31, 2009. </FONT></P>
<P align="center">
<FONT face="serif" size="2">29</FONT></P>

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



<P align="left" style="page-break-before:always"></P><PAGE>

<P align="left">
<B><FONT face="serif" size="2">Results of Operations</FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">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 width=2%>&nbsp;  </TD>
  <TD colspan=4 align=center nowrap>
<FONT face="serif" size="2">Three Months</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan=4 align=center nowrap>
<FONT face="serif" size="2">Six Months</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan=4 align=center nowrap>
<FONT face="serif" size="2">Ended</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan=4 align=center nowrap>
<FONT face="serif" size="2">Ended</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan=4 align=center nowrap>
<FONT face="serif" size="2">July 31,</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan=4 align=center nowrap>
<FONT face="serif" size="2">July 31,</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap style="border-bottom:1px solid #000;">
<FONT face="serif" size="2">2008</FONT>  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap style="border-bottom:1px solid #000;">
<FONT face="serif" size="2">2007</FONT>  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap style="border-bottom:1px solid #000;">
<FONT face="serif" size="2">2008</FONT>  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000;">&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap style="border-bottom:1px solid #000;">
<FONT face="serif" size="2">2007</FONT>  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000;">&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Net sales and revenue</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">100.0</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">100.0</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">100.0</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">100.0</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Cost of sales</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">80.3</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">68.2</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">76.6</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">68.3</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Gross profit</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">19.7</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">31.8</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">23.4</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">31.7</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Selling, general and administrative expenses</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">(19.6</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">(30.7</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">(24.1</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">(30.3</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Interest income</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">0.8</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">4.1</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">1.2</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">3.4</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Interest expense</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">(1.3</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">(0.1</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">(0.9</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">(0.1</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Loss on early termination of debt</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">-</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">-</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">-</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">(0.6</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Gains on sale of real estate</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">-</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">0.2</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">-</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">0.1</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Equity in income of unconsolidated ethanol affiliates</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">1.3</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">0.9</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">1.7</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">1.5</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Income from synthetic fuel investments</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">-</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">7.1</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">0.6</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">10.5</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Unrealized and realized gains on derivative financial</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">instruments, net</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">1.4</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">-</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">1.2</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">-</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Income from continuing operations before</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp;<FONT face="serif" size="2">provision for income taxes, minority interest and</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
 &nbsp; &nbsp; &nbsp;<FONT face="serif" size="2">discontinued operations</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">2.3</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">13.3</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">3.1</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">16.2</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Provision for income taxes</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">0.7</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">5.3</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">0.9</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">6.4</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Minority interest</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">-</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">-</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">0.2</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">-</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Income from continuing operations</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">1.6</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">8.0</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">2.4</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">9.8</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Loss from discontinued operations, net of tax</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">(0.1</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">(1.2</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">(0.2</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">(1.6</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Gain on disposal of discontinued operations, net of tax</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">0.3</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">5.3</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">0.2</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">5.6</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Net income</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">1.8</FONT>  </TD>
  <TD width=2% align=left nowrap style="padding-bottom:3px;">
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">12.1</FONT>  </TD>
  <TD width=2% align=left nowrap style="padding-bottom:3px;">
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">2.4</FONT>  </TD>
  <TD width=2% align=left nowrap style="padding-bottom:3px;">
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=8% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">13.8</FONT>  </TD>
  <TD width=2% align=left nowrap style="padding-bottom:3px;">
<FONT face="serif" size="2">%</FONT>&nbsp;  </TD>
</TR>
</TABLE>
<BR>
<P align="left">
<B><FONT face="serif" size="2">Business Segment Results</FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">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 includes realized and unrealized gains and losses on derivative
financial instruments. Segment profit excludes income taxes, indirect 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. 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;<FONT face="serif" size="2">Items excluded from
segment profit generally result from decisions made by corporate executives.
Financing, divestiture and tax structure decisions are generally made by corporate </FONT></P>
<P align="center">
<FONT face="serif" size="2">30</FONT></P>

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



<P align="left" style="page-break-before:always"></P><PAGE>

<P align="left">
<FONT face="serif" size="2"> 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;<FONT face="serif" size="2">The following table sets forth, for the periods indicated, sales and profits by segment (amounts in thousands): </FONT></P>
<TABLE width=100% border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="6" align=center nowrap>
    <FONT face="serif" size="2">Three Months Ended July 31,</FONT></TD>
  <TD align=center nowrap>&nbsp;</TD>
  <TD width=2% align="center">&nbsp;  </TD>
  <TD colspan="6" align=center nowrap>
    <FONT face="serif" size="2">Six Months Ended July 31,</FONT></TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">2008</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">2007</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">2008</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">2007</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Net sales and revenue:</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Retail</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">42,513</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">47,915</FONT></TD>
  <TD width=2% align=left nowrap>&nbsp; </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">88,174</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">96,485</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Alternative energy</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">24,857</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">-</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">26,024</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">-</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Total net sales and revenues</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">67,370</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">47,915</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">114,198</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">96,485</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=17>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Segment gross profit:</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Retail</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">12,658</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">15,221</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">25,977</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">30,618</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Alternative energy</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">634</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">-</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">690</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">-</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Total gross profit</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">13,292</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">15,221</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">26,667</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">30,618</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=17>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Segment profit:</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Retail segment profit</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">774</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">1,897</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">1,635</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">3,711</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Alternative energy segment profit</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">983</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">746</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">1,406</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">2,152</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Corporate expense</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">(579</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">(865</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">(1,112</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">(1,476</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Interest expense</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">(100</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">(34</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">(221</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">(723</FONT>  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">)</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Interest income</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">478</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">1,213</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">1,140</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">1,839</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Income from synthetic fuel investments</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">-</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">3,406</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">670</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">10,139</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Income from continuing operations</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">before income taxes and minority</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=left nowrap>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">interest</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">1,556</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">6,363</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">3,518</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">15,642</FONT>  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
</TR>
</TABLE>
<BR>
<P align="left">
<B><FONT face="serif" size="2">Retail</FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">The retail segment includes all of our store and distribution center operations, our real estate sales and leasing activities and certain administrative expenses. It excludes results from discontinued operations. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">The net sales and revenue from our retail segment are discussed in the Comparison of Three Months and Six Months Ended July 31, 2008 and 2007 discussion below. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Retail segment profit decreased &#36;1.1 million (59.2%) to &#36;0.8 million in the second quarter of fiscal year 2008 from &#36;1.9 million in the second quarter of fiscal year 2007. The decrease in segment profit was primarily
related to lower gross profit of approximately &#36;2.6 million, generally reflecting lower sales and lower gross margin percentages. Gross profit percentages were 29.8% and 31.8% for the quarters ended July 31, 2008 and 2007, respectively. This
unfavorable result was partially offset by lower payroll expenses of approximately &#36;1.0 million and lower advertising expenses of approximately &#36;0.4
million.  </FONT></P>
<P align="center">
<FONT face="serif" size="2">31</FONT></P>

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



<P align="left" style="page-break-before:always"></P><PAGE>

<P align="left">
<FONT face="serif" size="2">The decline in sales led to lower sales commissions
paid during the second quarter of fiscal year 2008. Advertising expenses were
lower in the second quarter as a result of our continuing emphasis to decrease
spending in response to the lower sales. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Retail segment profit decreased &#36;2.1 million (55.9%) to &#36;1.6 million in the first six months of fiscal year 2008 from &#36;3.7 million in the first six months of fiscal year 2007. The decrease in segment profit was
primarily related to lower gross profit of approximately &#36;4.7 million, generally reflecting lower sales and lower gross margin percentages. Gross profit percentages were 29.5% and 31.7% for the six months ended July 31, 2008 and 2007,
respectively. This unfavorable result was partially offset by lower occupancy related expenses of approximately &#36;0.5 million, payroll expenses of approximately &#36;1.5 million and lower advertising expenses of approximately &#36;0.4 million.
Lower store counts during fiscal year 2008, primarily from the sale and leaseback transaction with Klac and other store closings, were the primary reasons for the decline in occupancy related expenses. The restructuring of our retail operations
completed in fiscal year 2007 and lower sales commissions caused payroll expenses to decline during fiscal year 2008. Advertising expenses were lower as a result of our continuing emphasis to decrease spending in response to the lower sales.
</FONT></P>
<P align="left">
<B><FONT face="serif" size="2">Alternative Energy</FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">The alternative energy segment includes the consolidated financial statements of Levelland Hockley and One Earth, our other investments in ethanol facilities, the income related to those investments and certain administrative
expenses. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Levelland Hockley commenced production operations late in the first quarter of fiscal year 2008, resulting in net sales and revenue in the second quarter of fiscal year 2008 increasing to approximately &#36;24.9 million. Gross
profit from these sales was approximately &#36;0.6 million during the second quarter of fiscal year 2008. Gross profit was negatively affected by high grain prices. In addition, the spread between ethanol and grain prices was lower than
expected.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Net sales and revenue for the first six months of fiscal year 2008 were approximately &#36;26.0 million. Gross profit from these sales was approximately &#36;0.7 million. Gross profit was negatively affected by high grain prices.
In addition, the spread between ethanol and grain prices was lower than expected. Levelland Hockley is currently attempting to develop improved grain purchasing opportunities during the third quarter of fiscal year 2008.</FONT></P>
<P align="center">
<FONT face="serif" size="2">32</FONT></P>

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



<P align="left" style="page-break-before:always"></P><PAGE>

<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">The following table summarizes sales from Levelland Hockley by product group (amounts in thousands): </FONT></P>
<TABLE width=100% border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="5" align=center nowrap>
<FONT face="serif" size="2">Three Months Ended</FONT></TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD colspan=5 align=center nowrap><FONT face="serif" size="2">Six
    Months Ended</FONT></TD>
  </TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="5" align=center nowrap>
<FONT face="serif" size="2">July 31,</FONT>&nbsp;        </TD>
  <TD width=2% align=center nowrap>&nbsp;</TD>
  <TD colspan="5" align=center nowrap>
<FONT face="serif" size="2">July 31,</FONT>&nbsp;        </TD>
  </TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=8% align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">2008</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD align=center nowrap style="border-bottom:1px solid #000000"><FONT face="serif" size="2">2007</FONT></TD>
  <TD width=2% align=left nowrap>&nbsp;</TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;</TD>
  <TD width=8% align=center nowrap style="border-bottom:1px solid #000000"><FONT face="serif" size="2">2008</FONT>&nbsp; </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=8% align=center nowrap style="border-bottom:1px solid #000000"><FONT face="serif" size="2">2007</FONT> </TD>
</TR>
<TR>
  <TD colspan=13>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Ethanol</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">20,713</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">-</FONT>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;</TD>
  <TD width=2% align=left nowrap><FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">21,590</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">-</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Dried distiller grains</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">2,592</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">-</FONT>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;</TD>
  <TD width=2% align=left nowrap>&nbsp;</TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">2,703</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">-</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Wet distiller grains</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">1,520</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">-</FONT>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;</TD>
  <TD width=2% align=left nowrap>&nbsp;</TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">1,699</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">-</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Other</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=8% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">32</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=8% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">-</FONT>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;</TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;</TD>
  <TD width=8% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">32</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=8% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">-</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Total</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=8% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">24,857</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=8% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">-</FONT>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;</TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000"><FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=8% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">26,024</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>&nbsp;  </TD>
  <TD width=8% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">-</FONT>&nbsp;  </TD>
</TR>
</TABLE>
<BR>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">The following table summarizes operating data from Levelland Hockley:</FONT></P>
<TABLE width=100% border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="5" align=center nowrap>  <FONT face="serif" size="2">Three Months Ended</FONT>&nbsp; </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan=5 align=center nowrap><FONT face="serif" size="2">Six Months Ended</FONT>&nbsp; </TD>
  </TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="5" align=center nowrap>  <FONT face="serif" size="2">July 31,</FONT>&nbsp; </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="5" align=center nowrap>
<FONT face="serif" size="2">July 31,</FONT>&nbsp;  </TD>
  </TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=8% align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">2008</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap style="border-bottom:1px solid #000000">&nbsp;</TD>
  <TD width=8% align=center nowrap style="border-bottom:1px solid #000000"><FONT face="serif" size="2">2007</FONT>&nbsp; </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;</TD>
  <TD width=8% align=center nowrap style="border-bottom:1px solid #000000"><FONT face="serif" size="2">2008</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=8% align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">2007</FONT>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=13>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Average selling price per gallon of ethanol</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap><FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">2.32</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=8% align=right nowrap><FONT face="serif" size="2">-</FONT> </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">2.31</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">-</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Average selling price per ton of dried</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=8% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=8% align=right nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=8% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=8% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">distiller grains</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap><FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">182</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=8% align=right nowrap><FONT face="serif" size="2">-</FONT> </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">182</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">-</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Average selling price per ton of wet</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=8% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=8% align=right nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=8% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=8% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">distiller grains</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap><FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">48</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=8% align=right nowrap><FONT face="serif" size="2">- </FONT> </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">48</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">-</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">Average cost per bushel of grain</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap><FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">5.78</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=8% align=right nowrap><FONT face="serif" size="2">-</FONT> </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">5.78</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">-</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">Average cost of natural gas (per mmbtu)</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap><FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">10.52</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">-</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap><FONT face="serif" size="2"> &#36;</FONT></TD>
  <TD width=8% align=right nowrap><FONT face="serif" size="2">10.36</FONT>&nbsp; </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=8% align=right nowrap>
<FONT face="serif" size="2">-</FONT>&nbsp;  </TD>
</TR>
</TABLE>
<BR>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Segment profit increased &#36;0.2 million (32%) in the second quarter of fiscal year 2008 from &#36;0.7 million in the second quarter of fiscal year 2007. The increase in segment profit was primarily related to unrealized and
realized gains on derivative financial instruments  of &#36;1.0 million and an increase in income from equity method investments of &#36;0.5 million. These positive results were generally offset by an increase in interest expense of &#36;0.8
million, as Levelland Hockley ceased capitalizing interest on its construction loan upon the commencement of operations in fiscal year 2008, and a decrease in interest income of &#36;0.7 million. The decline in interest income results from our
disposition in the third quarter of fiscal year 2007 of our convertible note receivable in Millennium Ethanol, LLC. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Segment profit decreased &#36;0.8
million (34.7%) to &#36;1.4 million in the first six months of fiscal year 2008
from &#36;2.2 million in the first six months of fiscal year 2007. The decrease
in segment profit was primarily  related to an increase in interest expense of &#36;0.8
million, as Levelland Hockley ceased capitalizing interest on its construction
loan upon the commencement of operations in fiscal year 2008, and a decrease
in interest income of &#36;0.7
million. The decline in interest income results from our disposition in the third
quarter of fiscal year 2007 of our convertible note receivable in Millennium
Ethanol, LLC. Selling, general and administrative expenses increased &#36;1.4
million. The  increase results from &#36;1.2 million in increased expenses at
Levelland Hockley and &#36;0.2
million in increased expenses at</FONT></P>
<P align="center">
<FONT face="serif" size="2">33</FONT></P>

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<P align="left">
<FONT face="serif" size="2"> One Earth. Levelland Hockley commenced production
operations late in the first quarter fiscal year 2008 and was a development stage
enterprise in the first six months of fiscal year 2007. We purchased One Earth,
a development stage enterprise, during the third quarter of fiscal year 2007;
thus, there were no  expenses attributable to One Earth in the first six months
of fiscal year 2007 included in segment profit. Unrealized and realized gains
on derivative financial instruments were &#36;1.4 million during the first six
months of fiscal year 2008.</FONT></P>
<P align="left">
<B><FONT face="serif" size="2">Corporate and Other</FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Corporate and other includes certain administrative expenses of the corporate headquarters, interest expense and interest income not directly allocated to the retail or alternative energy segments
and income from synthetic fuel investments. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">We did not recognize income from synthetic fuel investments in the second quarter of fiscal year 2008 compared to &#36;3.4 million in the second quarter of fiscal year 2007. The decline in current
year income results from all synthetic fuel production ceasing during fiscal year 2007. As the Section 29/45K program expired December 31, 2007, we do not expect significant additional income from these sales. We sold our entire membership interest
in an entity that operated a synthetic fuel facility in Gillette, Wyoming. During the third quarter of fiscal year 2006, we modified our agreement with the owners and operators of the synthetic fuel facility in Gillette, Wyoming. Based on the terms
of the modified agreement, we are not currently able to determine the likelihood and timing of collecting payments related to production occurring after September 30, 2006. Thus, we cannot currently determine the timing of income recognition, if
any, related to production occurring subsequent to September 30, 2006. We did not recognize any income from this sale during the second quarter of fiscal years 2008 or 2007.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Selling, general and administrative expenses were &#36;0.6 million in the second quarter of fiscal year 2008, compared to &#36;0.9 million in the second quarter of fiscal year 2007. The decrease in expenses was primarily related
to lower executive incentive compensation expense associated with the decline in synthetic fuel income in the second quarter of fiscal year 2008. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Interest income was &#36;0.5 million in the second quarter of fiscal year 2008 compared to &#36;1.2 million in the second quarter of fiscal year 2007. The decline generally results from lower levels of excess cash in the current
year compared to the prior year. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Income from synthetic fuel investments declined to &#36;0.7 million in the first six months of fiscal year 2008 from &#36;10.1 million in the first six months of fiscal year 2007. Current year income
represents the estimated final settlements as all synthetic fuel production ceased during fiscal year 2007. As the Section 29/45K program expired December 31, 2007, we do not expect significant additional income from these sales.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Selling, general and administrative expenses were &#36;1.1 million in the first six months of fiscal year 2008, compared to &#36;1.5 million in the first six months of fiscal year 2007. The decrease
in expenses was primarily related to lower executive incentive compensation expense associated with the decline in synthetic fuel income in the first six months of fiscal year 2008. </FONT></P>
<P align="center">
<FONT face="serif" size="2">34</FONT></P>

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<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">
Interest income was &#36;1.1 million in the first six months of fiscal year 2008 compared to &#36;1.8 million in the first six months of fiscal year 2007. The decline generally results from lower
levels of excess cash in the current year compared to the prior year. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Interest expense was &#36;0.2 million in the first six months of fiscal year 2008 compared to &#36;0.7 million in the first six months of fiscal year 2007. The decline generally results from charges incurred with the early
termination of debt in fiscal year 2007. </FONT></P>
<P align="left">
<B><FONT face="serif" size="2">Comparison of Three Months and Six Months Ended July 31, 2008 and 2007</FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Net sales and revenue in the quarter ended July 31, 2008 were &#36;67.4 million compared to &#36;47.9 million in the prior year&#146;s second quarter, representing an increase of &#36;19.5 million or 40.7%. Net sales and revenue
do not include sales from stores classified as discontinued operations. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">The increase was primarily caused by &#36;24.9 million of sales from our alternative energy segment as Levelland Hockley commenced operations late in the first quarter of fiscal year 2008. This
positive trend was partially offset by a decrease in closed stores that are classified as continuing operations. Sales from these stores declined by &#36;2.8 million in the second quarter of fiscal year 2008 compared to fiscal year 2007. In
addition, we experienced a decrease in comparable store sales of 3.9% for the second quarter of fiscal year 2008. 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="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">The appliance category negatively impacted comparable store sales by 0.5%. The appliance category performance was primarily due to lower sales of air conditioners. The audio category negatively
impacted comparable store sales by 0.6%. The video category negatively impacted comparable store sales by 0.8%. 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. The television category negatively impacted comparable store sales by 2.0%. Declines in projection and analog television sets outpaced the gains we made in plasma
and LCD television sets. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Net sales and revenue for the first six months of fiscal year 2008 were &#36;114.2 million compared to &#36;96.5 million for the first six months of fiscal year 2007. This represents an increase of
&#36;17.7 million or 18.3%. This increase was primarily caused by &#36;26.0 million of sales from our alternative energy segment as Levelland Hockley commenced operations late in the first quarter of fiscal year 2008. This positive trend was
partially offset by a decrease in closed stores that are classified as continuing operations. Sales from these stores declined by &#36;5.5 million in the first six months of fiscal year 2008 compared to fiscal year 2007. In addition, we experienced
a decrease in comparable store sales of 2.1% for the first six months of fiscal year 2008. 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="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">The appliance product
category negatively impacted comparable store sales for the first six months
of fiscal 2008 by 0.4%. The appliance category performance was primarily due
to lower sales of air conditioners. The audio and video categories negatively
impacted comparable store sales for</FONT></P>
<P align="center">
<FONT face="serif" size="2">35</FONT></P>

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<P align="left">
<FONT face="serif" size="2">the first six months of fiscal year 2008 by
0.9% and 0.8%, respectively. The audio and video categories results reflect a
continuing trend of lower price points of the respective products, as these products
are becoming more of a commodity item with very high levels of competition. The
television category performance was consistent with the prior year. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">As of July 31, 2008, we operated 110 stores compared to 142 stores one year earlier. We did not open any stores and closed five stores during the first six months of fiscal year 2008. We did not open
any stores and closed 51 stores during the first six months of fiscal year 2007.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2"> At July 31, 2008, we had lease agreements, as landlord/sub landlord, for all or parts of 12 properties. We own nine of these properties and are the tenant/sub landlord for three of the properties. In
two 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 four owned properties that are vacant at July 31, 2008. We are marketing these
vacant properties to lease or sell. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Gross profit in the second quarter of fiscal year 2008 was &#36;13.3 million (19.7% of net sales and revenue) compared to &#36;15.2 million (31.8% of net sales and revenue) recorded in the second
quarter of fiscal year 2007. This represents a decrease of &#36;1.9 million or 12.5%. Gross profit for the quarter ended July 31, 2008, from our retail segment was 29.8% of retail segment sales compared to 31.8% for the quarter ended July 31, 2007.
Gross profit for the quarter ended July 31, 2008, from our alternative energy segment was 2.6% of alternative energy segment sales. Gross profit for the first six months of fiscal year 2008 was &#36;26.7 million (23.4% of net sales and revenue)
compared to &#36;30.6 million (31.7% of net sales and revenue) for the first six months of fiscal year 2007. Gross profit for the six months ended July 31, 2008, from our retail segment was 29.5% of retail segment sales compared to 31.7% for the six
months ended July 31, 2007. Gross profit for the six months ended July 31, 2008, from our alternative energy segment was 2.7% of alternative energy segment sales. Gross profit from our alternative energy segment has been lower than expected as a
result of the spread between ethanol and grain prices. Gross profit margin for the second quarter and first half of fiscal year 2008 was negatively impacted by approximately &#36;0.8 million and &#36;1.5 million, respectively, as a result of having
11 net fewer stores compared to the prior year. Extended service contracts contributed gross profit of &#36;2.5 million in the second quarter of fiscal year 2008 compared to &#36;2.8 million in the second quarter of fiscal year 2007. Extended
service contracts contributed gross profit of &#36;5.1 million in the first six months of fiscal year 2008 compared to &#36;5.7 million in the first six months of fiscal year 2007. Our direct warranty repair costs were approximately 23% and 16% of
extended service contract revenue in the first six months of fiscal years 2008 and 2007, respectively. Warranty repair costs increased during fiscal year 2008, as fiscal year 2007 results include reductions to warranty reserves which fiscal year
2008 results do not include and lower levels of vendor support during the current fiscal year. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Selling, general and administrative expenses for the second quarter of fiscal year 2008 were &#36;13.2 million (19.6% of net sales and revenue), a decrease of &#36;1.5 million or 10.2% from &#36;14.7
million (30.7% of net sales and revenue) for the second quarter of fiscal year 2007. Selling, general and administrative expenses were &#36;27.5 million (24.1% of net sales and revenue) for the first six months of fiscal year 2008 representing a
decrease of &#36;1.8 million or 5.9% from &#36;29.3 million (30.3% of net sales and revenue) for the first six months of fiscal year 2007. The decrease in expenses was primarily a result of lower retail payroll expenses of &#36;1.6
million, reflecting the restructuring of our </FONT></P>
<P align="center">
<FONT face="serif" size="2">36</FONT></P>

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<P align="left">
<FONT face="serif" size="2">retail operations completed in fiscal year 2007 and
lower sales commissions associated with the sales decline. In addition, we had
lower professional fees of &#36;0.7 million primarily related to fees incurred
in connection with the sale leaseback transaction we completed during the first
quarter of fiscal year 2007 and lower advertising expenses of &#36;0.4 million,
reflecting our continued emphasis on cost reduction. These decreases were partially
offset by an increase in selling, general and  administrative expenses from Levelland
Hockley of &#36;0.3 million as Levelland Hockley began operations during the
first quarter of fiscal year 2008. Rent expense was &#36;0.4 million higher during
the first six months of fiscal year 2008,  reflecting a full six months of rent
from the sale leaseback transaction we completed in fiscal year 2007. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Interest income was &#36;519,000
and &#36;1,976,000 for the second quarter of fiscal years 2008 and 2007 respectively.
Lower levels of excess cash accounted for approximately &#36;848,000 of the
decrease while our disposition in the third quarter of fiscal year 2007 of our
convertible note receivable in Millennium Ethanol, LLC accounted for approximately &#36;585,000
of the decrease. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Interest income was &#36;1,373,000 and &#36;3,269,000 for the first six months of fiscal years 2008 and 2007 respectively. Our disposition in the third quarter of fiscal year 2007 of our convertible
note receivable in Millennium Ethanol, LLC accounted for approximately &#36;1,149,000 of the decrease. Lower levels of excess cash accounted for approximately &#36;742,000 of the decrease. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Interest expense was &#36;897,000 for the second quarter of fiscal year 2008 compared to &#36;34,000 for the second quarter of fiscal year 2007. The quarterly increase results from ceasing of interest
capitalization on the Levelland Hockley credit facility subsequent to the commencement of operations at that plant. Interest expense was &#36;1,018,000 for the first six months of fiscal year 2008 compared to &#36;108,000 for the first six months of
fiscal year 2007. Interest expense for the first six months of fiscal year 2008 has increased, primarily from the ceasing of interest capitalization on the Levelland Hockley credit facility subsequent to the commencement of operations at that plant.
</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2"> </FONT><FONT face="serif" size="2">We paid off approximately &#36;15.6 million of debt in connection with the real estate sale and leaseback transaction with Klac. As a result, we incurred prepayment penalties and the write off of prepaid
loan fees totaling approximately &#36;607,000 during the first six months of fiscal year 2007. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">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 agreements 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 Klac or REX may terminate a lease after the initial six months of the initial lease term on 28 of the leases, 14 of
which were terminated in fiscal year 2007 and one of which was terminated in fiscal year 2008. We also entered into license agreements with Klac for 15 of the properties that allowed us to occupy the properties for up to 90 days rent free. Upon the
expiration of the license period, we vacated the 15 properties. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">This transaction resulted in a gain (realized and deferred) of &#36;14.8 million. Of this gain, &#36;0.4 million and &#36;4.0 million was recognized in the second quarter of fiscal years 2008 and
2007, respectively. During the first six months of fiscal years 2008 and 2007, we recognized &#36;0.7 million and &#36;7.1 millions, respectively of the gain. We had a deferred gain of &#36;4.7 million and &#36;7.7
million at July 31, 2008 and 2007, respectively, based upon the present value
of the remaining minimum lease </FONT></P>
<P align="center">
<FONT face="serif" size="2">37</FONT></P>

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



<P align="left" style="page-break-before:always"></P><PAGE>

<P align="left">
<FONT face="serif" size="2">payments. The deferred gain will be amortized as
a reduction to lease expense over the lease periods or recognized as gain on
disposal at the end of the lease period. The leases have been accounted for as
operating leases. The following table summarizes the pre-tax gains and losses recognized
during the second quarter and first six months of fiscal years 2008 and 2007
(amounts in thousands): </FONT></P>
<TABLE width=100% border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD colspan="2" align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="5" align=center nowrap>
<FONT face="serif" size="2">Three Months Ended</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="5" align=center nowrap>
<FONT face="serif" size="2">Six Months Ended</FONT>&nbsp;  </TD>
  </TR>
<TR valign="bottom">
  <TD width="11%" align=left nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Classification of Gain</FONT></TD>
  <TD width="33%" align=left nowrap>&nbsp;</TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">July 31, 2008</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">July 31, 2007</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">July 31, 2008</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">July 31, 2007</FONT>&nbsp;  </TD>
  </TR>
<TR>
  <TD colspan=14>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD colspan="2" align=left nowrap>
<FONT face="serif" size="2">Continuing Operations</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">335</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">475</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">659</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">1,154</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD colspan="2" align=left nowrap>
<FONT face="serif" size="2">Discontinued Operations</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">74</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">3,527</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">86</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">5,974</FONT>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=14>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD colspan="2" align=left nowrap>
<FONT face="serif" size="2">Total Pre-Tax Gain</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">409</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">4,002</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">745</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">7,128</FONT>&nbsp;  </TD>
</TR>
</TABLE>
<BR>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">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 colspan="2" align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=center nowrap>
<FONT face="serif" size="2">Number of</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD width="9%" align=left nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Property Category</FONT></TD>
  <TD width="45%" align=left nowrap>&nbsp;</TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">Properties</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000">
    <FONT face="serif" size="2">Deferred Gain</FONT></TD>
  <TD width=2% align="center">&nbsp;  </TD>
  <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000">
    <FONT face="serif" size="2">Recognized Gain</FONT></TD>
  </TR>
<TR>
  <TD colspan=10>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD colspan="2" align=left nowrap>
<FONT face="serif" size="2">Vacated</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">61</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">-</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">7,680</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD colspan="2" align=left nowrap>
<FONT face="serif" size="2">Leased until January 31, 2010</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">12</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">3,548</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">470</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD colspan="2" align=left nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD>&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>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD colspan="2" align=left nowrap>
<FONT face="serif" size="2">Leased until January 31, 2010</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD colspan="2" align=left nowrap>
<FONT face="serif" size="2">(6 month kickout clause)</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">13</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">1,133</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">1,974</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD colspan="2" align=left nowrap>
<FONT face="serif" size="2">Total</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">86</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=12% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">4,681</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=12% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">10,124</FONT>&nbsp;  </TD>
</TR>
</TABLE>
<BR>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">During the second quarter of fiscal years 2008 and 2007, we recognized income of approximately &#36;874,000 and &#36;412,000 from our equity investments in Big River Resources, LLC and Patriot Renewable Fuels, LLC, respectively.
During the first six months of fiscal years 2008 and 2007, we recognized income of approximately &#36;1,922,000 and &#36;1,522,000 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;<FONT face="serif" size="2">Income from continuing operations for the first six months of fiscal year 2008 includes approximately &#36;0.7 million of income from the sales of our entire partnership interests in Colona SynFuel
Limited Partnership, L.L.L.P., (Colona) and Somerset Synfuel, L.P. (Somerset). This income represents the estimated final settlements related to Colona and Somerset as all synthetic fuel production ceased during fiscal year 2007. As the Section
29/45K program expired December 31, 2007, we do not expect additional income from these sales. During the second quarter and first six months of fiscal year 2007, we recorded approximately &#36;3.4 million and &#36;10.1 million, respectively of
pre-tax investment income from these sales.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">We also sold our membership
interest in the limited liability company that owned a synthetic fuel facility
in Gillette, Wyoming. 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 modified agreement,
we currently are not able to determine the  </FONT></P>
<P align="center">
<FONT face="serif" size="2">38</FONT></P>

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



<P align="left" style="page-break-before:always"></P><PAGE>

<P align="left">
<FONT face="serif" size="2">likelihood and timing of collecting payments related
to production occurring after September 30, 2006. Thus, we cannot currently determine
the timing of income recognition, if any, related to production occurring subsequent
to September 30, 2006. We did not recognize any income from this sale during
the first six months of fiscal years 2008 or 2007. </FONT><FONT face="serif" size="2"> </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Below is a table summarizing the income recognized from the sales, net of certain expenses, of our interests in synthetic fuel entities. </FONT></P>
<TABLE width=100% border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="5" align=center nowrap>
<FONT face="serif" size="2">Three Months Ended</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="5" align=center nowrap>
<FONT face="serif" size="2">Six Months Ended</FONT>&nbsp;  </TD>
  </TR>
<TR>
  <TD colspan=13>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="5" align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">July 31,</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="5" align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">July 31,</FONT>&nbsp;  </TD>
  </TR>
<TR valign="bottom">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=center style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">2008</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">2007</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">2008</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=center nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">2007</FONT>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=13>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">February 1, 1999 Colona sale</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap><FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">-</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">949</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">186</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">2,894</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">July 31, 2000 Colona sale</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">-</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">757</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">149</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">2,309</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>
<FONT face="serif" size="2">May 31, 2001 Colona sale</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">-</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">673</FONT>  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">132</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>&nbsp;  </TD>
  <TD width=10% align=right nowrap>
<FONT face="serif" size="2">2,052</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap>
<FONT face="serif" size="2">October 1, 2005 Somerset sale</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">-</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">1,027</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">203</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=10% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">2,884</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000"><FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">-</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">3,406</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT></TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">670</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=10% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">10,139</FONT>&nbsp;  </TD>
</TR>
</TABLE>
<BR>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Our effective tax rate was 30.1% and 40.3% for the second quarter of fiscal years 2008 and 2007, respectively. Our effective tax rate was 28.3% and 39.4% for the first six months of fiscal years 2008 and 2007, respectively. The
decrease is primarily a result of a reduction in the reserve for uncertain tax positions during fiscal year 2008, related to the expiration of the statute of limitations in certain states and the recognition of a federal tax credit that is earned by
Levelland Hockley as a small ethanol producer. We expect our effective tax rate to be in a range between 28% and 35% for the remainder of fiscal year 2008. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Minority interest of (&#36;36,000) and &#36;54,000 for the quarters ended July 31, 2008 and 2007, respectively and &#36;187,000 and (&#36;41,000) for the six months ended July 31, 2008 and 2007,
respectively, represents the owners&#146; (other than REX) share of the income or loss of Levelland Hockley County Ethanol, LLC and One Earth Energy, LLC. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">During the quarter and six months ended July 31, 2008 we closed one and five stores, respectively, 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;41,000 for the second quarter of fiscal year 2008 compared to &#36;587,000 for the second quarter of fiscal year 2007. We had a loss from discontinued operations, net
of tax benefit, of &#36;173,000 for the first six months of fiscal year 2008 compared to &#36;1,510,000 for the first six months of fiscal year 2007. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">One property classified as discontinued operations was sold during the second quarter of fiscal year 2008, resulting in a gain, net of tax expense of &#36;0.2 million for the quarter and six months
ended July 31, 2008. Primarily as a result of the previously discussed sale and leaseback with Klac we had a gain from discontinued operations, net of tax expense, of approximately &#36;2.5 million for the second quarter of fiscal year 2007 and
approximately &#36;5.4 million for the first six months of fiscal year 2007. </FONT></P>
<P align="center">
<FONT face="serif" size="2">39</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>

<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">As a result of the foregoing, net income for the second quarter of fiscal year 2008 was &#36;1.2 million, a decrease of &#36;4.6 million from &#36;5.8 million for the second quarter of fiscal year 2007. Net
income for the first six months of fiscal year 2008 was &#36;2.7 million, a decrease of &#36;10.6 million from &#36;13.3 million for the first six months of fiscal year 2007. </FONT></P>
<P align="left">
<B><FONT face="serif" size="2">Liquidity and Capital Resources</FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Net cash used in operating activities was approximately &#36;3.7 million for the first six months of fiscal year 2008, compared to &#36;17.8 million for the first six months of fiscal year 2007. For the first six months of fiscal
year 2008, cash was provided by net income of &#36;2.7 million, adjusted for the impact of &#36;0.7 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;0.2 million and non-cash items of &#36;4.5 million, which consisted of depreciation and amortization, income from equity method investments, deferred income, unrealized gains on derivative financial instruments, other items and the deferred
income tax provision. In addition, accounts payable provided cash of &#36;18.0 million, primarily a result of changes in inventory levels and extended terms from certain vendors in our retail segment and Levelland Hockley commencing operations in
the current fiscal year. The increase in inventory of &#36;9.5 million was primarily due to seasonal fluctuations in our retail segment and Levelland Hockley commencing operations in the current fiscal year. The primary use of cash was a decrease in
other liabilities of &#36;10.0 million; primarily a result of payments related to synthetic fuel obligations, incentive compensation and other payroll and sales tax payments being made in the first quarter of fiscal year 2008. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">For the first six months of fiscal year 2007, cash was provided by net income of &#36;13.3 million, adjusted for the impact of &#36;10.1 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;9.0 million and non-cash items of &#36;3.4 million, which consisted of depreciation and amortization, income from equity method investments, deferred
income and the deferred income tax provision. In addition, accounts payable provided cash of &#36;16.3 million, primarily a result of changes in inventory levels and extended terms from certain vendors. The primary use of cash was an increase in
inventory of &#36;14.2 million primarily due to seasonal fluctuations. The inventory increase from January 31, 2007 primarily results from higher television and air conditioner levels. Accounts receivable increased &#36;1.2 million, primarily a
result of the timing of customer payments. The other use of cash was an increase in other assets of &#36;9.6 million.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">At July 31, 2008, working capital was &#36;80.1 million compared to &#36;132.3 million at January 31, 2008. This decrease is primarily a result of the ethanol plant construction expenditures at the
Levelland Hockley and One Earth facilities and treasury stock purchases. The ratio of current assets to current liabilities was 2.0 to 1 and 3.2 to 1 at July 31, 2008 and January 31, 2008, respectively. </FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Cash of &#36;62.1 million was used in investing activities for the first six months of fiscal year 2008, compared to cash provided of &#36;76.6 million for the first six months of fiscal year 2007.
During the first six months of fiscal year 2008, we received proceeds of &#36;1.2 million from the installment sales of our ownership interests in synthetic fuel entities and &#36;1.1 million from the sale of real estate and property and equipment.
We had capital expenditures of approximately &#36;61.7 million during the first
six months of fiscal year 2008, primarily related to construction at the Levelland
Hockley and  </FONT></P>
<P align="center">
<FONT face="serif" size="2">40</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>

<P align="left">
<FONT face="serif" size="2">One Earth ethanol plants.
We deposited $2.8 million in escrow accounts (restricted cash) in connection
with the final draw on Levelland Hockley&#146;s construction loan.</FONT></P>
<P align="left"><FONT face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash of &#36;76.6
  million was provided by investing activities for the first six months of fiscal
  year 2007. We received proceeds of &#36;79.7 million from the sale and leaseback
  transaction with Klac  and other real estate sales and &#36;15.1 million from
  the installment sales of our ownership interests in synthetic fuel entities.
  We purchased an ethanol related note of &#36;3.0 million during the first six
  months of fiscal year 2007. We had  capital expenditures of approximately &#36;15.2
  million during the first six months of fiscal year 2007, primarily related to
  the Levelland/Hockley County Ethanol, LLC ethanol plant construction.</FONT></P>
<P align="left">
<FONT face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash provided by financing activities totaled approximately &#36;17.7 million for the first six months of fiscal year 2008 compared to cash used of &#36;11.5 million for the first six months of fiscal
year 2007. Cash of approximately &#36;2.2 million was used to repay debt and capital lease obligations. Cash was provided by new debt borrowings at Levelland Hockley and One Earth of &#36;28.7 million. Cash of approximately &#36;9.1 million was also
used to acquire 706,000 shares of our common stock. As of July 31, 2008, we had approximately 9,000 authorized shares remaining available for purchase under the stock buy-back program. Subsequent to the end of the second quarter of fiscal year 2008,
our board of directors authorized us to repurchase an additional 500,000 shares of our common stock. </FONT></P>
<P align="left">
<FONT face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash used in financing activities totaled approximately &#36;11.5 million for the first six months of fiscal year 2007 compared to cash provided by financing activities of &#36;0.4 million for the
first six months of fiscal year 2006. Cash of approximately &#36;17.6 million was used to repay mortgage debt. Cash was provided by new debt borrowings of &#36;5.0 million and stock option activity of &#36;4.9 million.  Cash of approximately
&#36;3.8 million was also used to acquire 195,000 shares of our common stock.</FONT></P>
<P align="left">
<FONT face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In June 2006, Levelland Hockley entered into an agreement with a designer/builder for the construction of Levelland&#146;s ethanol plant. The designer/builder is responsible for all engineering,
labor, materials and equipment to design, construct, startup and achieve guaranteed performance criteria of the plant. The contract price is approximately &#36;58.5 million, of which &#36;56.4 million has been spent through July 31, 2008. We expect
to pay the remaining amounts due from our restricted cash which is deposited in an escrow account. </FONT></P>
<P align="left">
<FONT face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On July 25, 2002, Levelland Hockley entered into an agreement with RIO Technical Services, Inc., (&#147;RIO&#148;) regarding the planning, financing, design and construction of Levelland&#146;s
ethanol plant.  RIO is a related party, as certain officers of RIO own equity interests in Levelland Hockley. We estimate that fees for these services will be approximately &#36;3.0 million, of which approximately &#36;2.3 million has been spent
through July 31, 2008. We expect to pay the remaining amounts due from our restricted cash which is deposited in an escrow account. </FONT></P>
<P align="left">
<B><FONT face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><FONT face="serif" size="2">We believe Levelland Hockley has sufficient working capital and credit availability to fund these commitments. </FONT></P>
<P align="left">
<FONT face="serif" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsequent to June
30, 2008, the end of the second quarter for Levelland Hockley, ethanol prices
declined significantly. At June 30, 2008, the fair market value of ethanol per
gallon was approximately &#36;2.89. At
July 31, 2008, the fair market value of ethanol per gallon was approximately &#36;2.33.</FONT></P>
<P align="center">
<FONT face="serif" size="2">41</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>

<P align="left">
<FONT face="serif" size="2">At June 30, 2008, the fair market value of corn and
sorghum per bushel was approximately $6.50. At July 31, 2008, the fair market
value of corn and sorghum per bushel was approximately $7.60. </FONT></P>
<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">In May 2007, One Earth entered into
    an agreement with a designer/builder for the construction of One Earth&#146;s ethanol plant. The designer/builder is responsible for all engineering, labor, materials and equipment to design,
  construct, startup and achieve guaranteed performance criteria of the plant. The contract price is approximately &#36;120.2 million, subject to adjustments as provided by the general conditions of the agreement, of which approximately &#36;69.2
  million has been spent through July 31, 2008. One Earth has also entered other construction and facility related contracts. Some of these contracts have been completed and all required funds have been expended as of July 31, 2008. The total of other
  incomplete construction and facility related contracts is approximately &#36;11.7 million, of which approximately &#36;6.4 million has been spent through July 31, 2008.</FONT></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">We believe One Earth has sufficient working capital and credit availability to fund these commitments. </FONT></P>
<P align="left">
<B><FONT face="serif" size="2">Forward-Looking Statements</FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">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 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 include among other things: 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 and changes in real estate market conditions, the fluctuating amount of quarterly payments received by the Company with respect to
sales of its partnership interest in its synthetic fuel investments, 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, sorghum, distiller grains, ethanol, gasoline and natural gas and the plants operating
efficiently and according to forecasts and projections. 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, 2008 (File No. 001-09097). </FONT></P>
<P align="left">
<B><FONT face="serif" size="2">Item 3. </FONT></B><B><I><FONT face="serif" size="2">Quantitative and Qualitative Disclosures About Market Risk</FONT></I></B><B><FONT face="serif" size="2"> </FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">No material changes since January 31, 2008.</FONT></P>
<P align="center">
<FONT face="serif" size="2">42</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>

<P align="left">
<B><FONT face="serif" size="2">Item 4. Controls and Procedures</FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">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;<FONT face="serif" size="2">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 other than the implementation of controls at Levelland Hockley related to production commencing in the first quarter of fiscal year 2008. </FONT></P>
<P align="center">
<B><FONT face="serif" size="2">PART II. OTHER INFORMATION</FONT></B></P>
<P align="left">
<B><FONT face="serif" size="2">Item 1. </FONT></B><B><I><FONT face="serif" size="2">Legal Proceedings</FONT></I></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">On May 2, 2008, Layne
filed a lawsuit against Levelland Hockley County Ethanol, LLC (&#147;Levelland
Hockley&#148;) in the United States District Court of Kansas
 at Kansas City, KS. On May 19, 2008, Layne amended its original complaint. Levelland
 Hockley entered into a lease agreement with Layne for certain water treatment
 equipment for its ethanol plant. Layne is suing Levelland Hockley for interest
 on late lease payments, repossession of the water treatment facility that is
 the subject of the lease and that all lease payments due under the lease should
 be accelerated and be immediately due and payable. The Company believes that
 it has meritorious defenses to the claims and intends to vigorously defend against
them.</FONT></P>
<P align="left">
<B><FONT face="serif" size="2">Item 1A. </FONT></B><B><I><FONT face="serif" size="2">Risk Factors</FONT></I></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I><FONT face="serif" size="2"></FONT></I></B><FONT face="serif" size="2">During the quarter ended July 31, 2008, 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, 2008. </FONT></P>
<P align="center">
<FONT face="serif" size="2">43</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>

<P align="left">
<B><FONT face="serif" size="2">Item 2. </FONT></B><B><I><FONT face="serif" size="2">Unregistered
Sales of Equity Securities and Use of Proceeds</FONT></I></B></P>

<TABLE width=100% border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=center colspan=11>
<B><FONT face="serif" size="2">Issuer Purchases of Equity Securities</FONT></B>  </TD>
</TR>
<TR>
  <TD colspan=11>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD colspan="2" align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=15% align=center nowrap>
<B><FONT size=2 face="serif">Total Number of</FONT></B></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=15% align=center nowrap>
<B><FONT size=2 face="serif">Maximum Number</FONT></B></TD>
</TR>
<TR valign="bottom">
  <TD colspan="2" align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=12% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=15% align=center nowrap>
<B><FONT size=2 face="serif">Shares Purchased</FONT></B></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=15% align=center nowrap>
<B><FONT size=2 face="serif">of Shares that May</FONT></B></TD>
</TR>
<TR valign="bottom">
  <TD colspan="2" align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=center nowrap>
<B><FONT size=2 face="serif">Total Number</FONT></B></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=12% align=center nowrap>
<B><FONT size=2 face="serif">Average Price</FONT></B></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=15% align=center nowrap>
<B><FONT size=2 face="serif">as Part of Publicly</FONT></B></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=15% align=center nowrap>
<B><FONT size=2 face="serif">Yet Be Purchased</FONT></B></TD>
</TR>

<TR valign="bottom">
  <TD colspan="2" align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=center nowrap>
<B><FONT size=2 face="serif">of Shares</FONT></B></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap>&nbsp;  </TD>
  <TD width=12% align=center nowrap>
<B><FONT size=2 face="serif">Paid per</FONT></B></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=15% align=center nowrap>
<B><FONT size=2 face="serif">Announced Plans</FONT></B></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=15% align=center nowrap>
<B><FONT size=2 face="serif">Under the Plans</FONT></B></TD>
</TR>
<TR valign="bottom">
  <TD width="15%" align=left nowrap style="border-bottom:1px solid #000000">
<B><FONT size=2 face="serif">Period</FONT></B>&nbsp;  </TD>
  <TD align=left nowrap>&nbsp;</TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=center nowrap style="border-bottom:1px solid #000000">
<B><FONT size=2 face="serif">Purchased</FONT></B></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=right nowrap style="border-bottom:1px solid #000000">&nbsp;  </TD>
  <TD width=12% align=center nowrap style="border-bottom:1px solid #000000">
<B><FONT size=2 face="serif">Share</FONT></B>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=15% align=center nowrap style="border-bottom:1px solid #000000">
<B><FONT size=2 face="serif">or Programs (1)</FONT></B></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=15% align=center nowrap style="border-bottom:1px solid #000000">
<B><FONT size=2 face="serif">or Programs (1)</FONT></B></TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD colspan="2" align=left nowrap>
<FONT face="serif" size="2">May 1-31, 2008</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">73,600</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">15.94</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=15% align=right nowrap>
<FONT face="serif" size="2">73,600</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=15% align=right nowrap>
<FONT face="serif" size="2">142,000</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD colspan="2" align=left nowrap>
<FONT face="serif" size="2">June 1-30, 2008</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">244,800</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap>
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=12% align=right nowrap>
<FONT face="serif" size="2">13.48</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=15% align=right nowrap>
<FONT face="serif" size="2">244,800</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=15% align=right nowrap>
<FONT face="serif" size="2">397,200</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom" bgcolor="#E5FFFF">
  <TD colspan="2" align=left nowrap>
<FONT face="serif" size="2">July 1-31, 2008</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">388,061</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=12% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">11.80</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=15% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">388,061</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=15% align=right nowrap style="border-bottom:1px solid #000000">
<FONT face="serif" size="2">9,139</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD colspan="2" align=left nowrap>
<FONT face="serif" size="2">Total</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=12% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">706,461</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=2% align=left nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">&#36;</FONT>  </TD>
  <TD width=12% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">12.81</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=15% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">706,461</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=15% align=right nowrap style="border-bottom:3px double #000000">
<FONT face="serif" size="2">9,139</FONT>&nbsp;  </TD>
</TR>
</TABLE>
<BR>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD nowrap valign=top>
<FONT face="serif" size="2">(1)</FONT>&nbsp; &nbsp; &nbsp;   </TD>
  <TD width=100%>
<FONT face="serif" size="2">On June 20, 2008, we completed the purchase of our common stock under a previously announced authorization. On June 23, 2008, we announced we had authorization to purchase up to 500,0000 shares from time to time in private or
market transactions at prevailing market prices.
At July 31, 2008, a total of 9,139 shares remained available to purchase under this authorization. On August 4, 2008 the Company announced its Board of Directors had authorized the Company to purchase up to an additional 500,000
shares from time to time in private or market transactions at prevailing market prices.</FONT>  </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<P align="left">
<B><FONT face="serif" size="2">Item 6. </FONT></B><B><I><FONT face="serif" size="2">Exhibits.</FONT></I></B></P>

<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I><FONT face="serif" size="2"></FONT></I></B><FONT face="serif" size="2">The following exhibits are filed with this report:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD width="3%" valign=top nowrap>&nbsp;</TD>
  <TD width="3%" valign=top nowrap>
<FONT face="serif" size="2">31</FONT>&nbsp; &nbsp; &nbsp;   </TD>
  <TD>
<FONT face="serif" size="2">Rule 13a-14(a)/15d-14(a) Certifications</FONT>  </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD width="3%" valign=top nowrap>&nbsp;</TD>
  <TD width="3%" valign=top nowrap>
<FONT face="serif" size="2">32</FONT>&nbsp; &nbsp; &nbsp;   </TD>
  <TD>
<FONT face="serif" size="2">Section 1350 Certifications</FONT>  </TD>
</TR></TABLE>
<P align="center">
<FONT face="serif" size="2">44</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>

<P align="center">
<B><FONT face="serif" size="2">SIGNATURES</FONT></B></P>
<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif" size="2">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. </FONT></P>
<TABLE width=100% border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=30% align=left nowrap>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=6% align=left nowrap>&nbsp;</TD>
  <TD width=30% align=left nowrap>
<FONT face="serif" size="2">REX STORES CORPORATION</FONT></TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=30% align=left nowrap>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD width=30% align=center>&nbsp;</TD>
  <TD width=2% align=center>&nbsp;</TD>
  <TD width=6% align=left>&nbsp;</TD>
  <TD width=30% align=left><FONT face="serif" size="2">Registrant</FONT> </TD>
  <TD width=2% align=center>&nbsp;</TD>
  <TD width=30% align=center>&nbsp;</TD>
</TR>
<TR>
  <TD colspan=6>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=6>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD width=30% align=center nowrap style="border-bottom:1px solid #000000">
<B><FONT size=2 face="serif">Signature</FONT></B>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="2" align=center nowrap style="border-bottom:1px solid #000000">
<B><FONT size=2 face="serif">Title</FONT></B>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=30% align=center nowrap style="border-bottom:1px solid #000000">
<B><FONT size=2 face="serif">Date</FONT></B>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=6>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD width=30% align=center nowrap style="border-bottom:1px solid #000000">
<FONT size=2 face="serif">/s/ </FONT><FONT size=2 face="serif">S</FONT><FONT size=2 face="serif">t</FONT><FONT size=2 face="serif">ua</FONT><FONT size=2 face="serif">rt A. Ros</FONT><FONT size=2 face="serif">e</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Chairman of the Board</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=30% align=left nowrap>
<FONT size=2 face="serif">September 9, 2008</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD width=30% align=center nowrap>
<FONT size=2 face="serif">(Stuart A. Rose)</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Chief Executive Officer)</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=30% align=left nowrap>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=6>&nbsp;  </TD>
</TR>
<TR>
  <TD colspan=6>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD width=30% align=center nowrap style="border-bottom:1px solid #000000">
<FONT size=2 face="serif">/s/ Doug</FONT><FONT size=2 face="serif">la</FONT><FONT size=2 face="serif">s L</FONT><FONT size=2 face="serif">. </FONT><FONT size=2 face="serif">Br</FONT><FONT size=2 face="serif">ug</FONT><FONT size=2 face="serif">gem</FONT><FONT size=2 face="serif">a</FONT><FONT size=2 face="serif">n</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">Vice President, Finance and Treasurer</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=30% align=left nowrap>
<FONT size=2 face="serif">September 9, 2008</FONT>&nbsp;  </TD>
</TR>
<TR valign="bottom">
  <TD width=30% align=center nowrap>
<FONT size=2 face="serif">(Douglas L. Bruggeman)</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD colspan="2" align=left nowrap>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Chief Financial Officer)</FONT>&nbsp;  </TD>
  <TD width=2%>&nbsp;  </TD>
  <TD width=30% align=left nowrap>&nbsp;  </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT face="serif" size="2">45</FONT></P>

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<TYPE>EX-31
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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;<FONT size=2 face="serif">1.</FONT><FONT size=2 face="sans-serif"> </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;<FONT size=2 face="serif">2.</FONT><FONT size=2 face="sans-serif"> </FONT><FONT size=2 face="serif">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;<FONT size=2 face="serif">3.</FONT><FONT size=2 face="sans-serif"> </FONT><FONT size=2 face="serif">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;<FONT size=2 face="serif">4.</FONT><FONT size=2 face="sans-serif"> </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>
<div style="margin-left:20px"><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>
</div>

<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">5.</FONT><FONT size=2 face="sans-serif"> </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>
<div style="margin-left:20px"><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>
</div>
<div style="margin-left:45%"><P align="left">
<FONT size=2 face="serif">Date: September 9, 2008 </FONT><BR>
<BR>
<FONT size=2 face="serif">/s/ Stuart A. Rose  </FONT><BR>
<FONT size=2 face="serif">Stuart A. Rose </FONT><BR>
<I><FONT size=2 face="serif">Chairman of the Board and</FONT></I><BR>
<I><FONT size=2 face="serif">Chief Executive Officer</FONT></I><FONT size=2 face="serif"> </FONT></P>
</div><P align="left">&nbsp;</P>

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<P align="left" style="page-break-before:always"></P><PAGE>


<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;<FONT size=2 face="serif">1.</FONT><FONT size=2 face="sans-serif"> </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;<FONT size=2 face="serif">2.</FONT><FONT size=2 face="sans-serif"> </FONT><FONT size=2 face="serif">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;<FONT size=2 face="serif">3.</FONT><FONT size=2 face="sans-serif"> </FONT><FONT size=2 face="serif">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;<FONT size=2 face="serif">4.</FONT><FONT size=2 face="sans-serif"> </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>
<div style="margin-left:20px"><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>
</div>

<P align="left">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">5.</FONT><FONT size=2 face="sans-serif"> </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>
<div style="margin-left:20px"><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>
</div>
<div style="margin-left:45%"><P align="left">
<FONT size=2 face="serif">Date: September 9, 2008 </FONT><BR>
<BR>
<FONT size=2 face="serif">/s/ Douglas L. Bruggeman  </FONT><BR>
<FONT size=2 face="serif">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><FONT size=2 face="serif"> </FONT></P>
</div><P align="left">&nbsp;</P>

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<TYPE>EX-32
<SEQUENCE>3
<FILENAME>c54891_ex-32.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 <br>
CERTIFICATION PURSUANT TO SECTION 906 <br>
OF THE SARBANES-OXLEY ACT OF 2002</FONT></B><FONT size=2 face="serif"> </FONT></P>
<P align="left">
&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 July 31, 2008 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;<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</FONT><BR>
<FONT size=2 face="serif">Stuart A. Rose </FONT></P>
<P align="left">
<FONT size=2 face="serif">/s/ Douglas L. Bruggeman</FONT><BR>
<FONT size=2 face="serif">Douglas L. Bruggeman  </FONT></P>
<P align="left">
<FONT size=2 face="serif">Dated: September 9, 2008</FONT></P>

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