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<SEC-DOCUMENT>0001107049-00-500284.txt : 20001219
<SEC-HEADER>0001107049-00-500284.hdr.sgml : 20001219
ACCESSION NUMBER:		0001107049-00-500284
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20001031
FILED AS OF DATE:		20001218

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MILLER INDUSTRIES INC /TN/
		CENTRAL INDEX KEY:			0000924822
		STANDARD INDUSTRIAL CLASSIFICATION:	TRUCK & BUS BODIES [3713]
		IRS NUMBER:				621566286
		STATE OF INCORPORATION:			TN
		FISCAL YEAR END:			0430

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		
		SEC FILE NUMBER:	001-14124
		FILM NUMBER:		790833

	BUSINESS ADDRESS:	
		STREET 1:		8503 HILLTOP DR
		STREET 2:		STE 100
		CITY:			OOLTEWAH
		STATE:			TN
		ZIP:			37363
		BUSINESS PHONE:		4232384171

	MAIL ADDRESS:	
		STREET 1:		900 CIRCLE 75 PARKWAY
		STREET 2:		SUITE 1250
		CITY:			ATLANTA
		STATE:			GA
		ZIP:			30339
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>miloct10q.htm
<DESCRIPTION>MILLER INDUSTRIES 10-31-00 FORM 10-Q
<TEXT>

<HTML>
<HEAD>

<TITLE>Prepared by Kilpatrick Stockton LLP</TITLE>

</HEAD>
<BODY LINK="#0000ff" VLINK="#800080">

<B><FONT FACE="Book Antiqua"><P ALIGN="CENTER">SECURITIES AND EXCHANGE COMMISSION<BR>
WASHINGTON, DC 20549</P>
</FONT><FONT FACE="Book Antiqua" SIZE=5><P ALIGN="CENTER">FORM 10-Q</P>
</B></FONT><FONT FACE="Book Antiqua"><P ALIGN="CENTER"><BR>
</FONT><FONT FACE="Book Antiqua" SIZE=2>QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)<BR>
OF THE SECURITIES EXCHANGE ACT OF 1934<BR>
For the quarterly period ended October 31, 2000<BR>
Commission File No. 0-24298</P>
</FONT><B><FONT FACE="Book Antiqua"><P ALIGN="CENTER">MILLER INDUSTRIES, INC.<BR>
</B></FONT><FONT FACE="Book Antiqua" SIZE=2>(Exact name of registrant as specified in its charter)</P>
</FONT><FONT FACE="Book Antiqua"><P ALIGN="CENTER">&nbsp;</P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=491>
<TR><TD WIDTH="45%" VALIGN="TOP">
<P ALIGN="CENTER"><B><FONT FACE="Book Antiqua" SIZE=2>Tennessee</B></FONT></TD>
<TD WIDTH="55%" VALIGN="TOP">
<B><FONT FACE="Book Antiqua" SIZE=2><P ALIGN="CENTER">62-1566286</B></FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P ALIGN="CENTER">(State or other jurisdiction of</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P ALIGN="CENTER">(I.R.S. Employer Identification No.)</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P ALIGN="CENTER">incorporation or organization)</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<P ALIGN="CENTER"></P>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=492>
<TR><TD WIDTH="50%" VALIGN="TOP">
<P ALIGN="CENTER"><B><FONT FACE="Book Antiqua" SIZE=2>8503 Hilltop Drive</B></FONT></TD>
<TD WIDTH="50%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<B><FONT FACE="Book Antiqua" SIZE=2><P ALIGN="CENTER">Ooltewah, Tennessee</B></FONT></TD>
<TD WIDTH="50%" VALIGN="TOP">
<B><FONT FACE="Book Antiqua" SIZE=2><P ALIGN="CENTER">37363</B></FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P ALIGN="CENTER">(Address of principal executive offices)</FONT></TD>
<TD WIDTH="50%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P ALIGN="CENTER">(Zip Code)</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT FACE="Book Antiqua" SIZE=2><P ALIGN="CENTER">Registrant's telephone number, including area code:&nbsp;&nbsp;(423)238-4171</P>
</FONT><P>&nbsp;</P>
<P>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.</P>
<P ALIGN="CENTER">YES&nbsp;&nbsp;<U><FONT COLOR="#ff0000">X </U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>NO __</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>The number of shares outstanding of the registrant's Common Stock, $.01 par value, as of November 30, 2000 was 46,708,767.</P>
<P><HR></P>
<P>&nbsp;</P>
<B><P ALIGN="CENTER">MILLER INDUSTRIES, INC.</P>
<P ALIGN="CENTER">INDEX</P>
</B><P>&nbsp;</P>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=613>
<TR><TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="51%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<B><FONT SIZE=2><P>PART I.</B></FONT></TD>
<TD WIDTH="68%" VALIGN="TOP" COLSPAN=3>
<B><FONT SIZE=2><P>FINANCIAL INFORMATION</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER">Page Number</U></FONT></TD>
</TR>
<TR><TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>Item 1.</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<U><FONT SIZE=2><P>Financial Statements (Unaudited)</U></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<P><A HREF="#condensedconsolidatedbalancesheets"><FONT SIZE=2>Condensed Consolidated Balance Sheets</FONT></A><FONT SIZE=2> - </FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>October 31, 2000 and April 30, 2000</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">3</FONT></TD>
</TR>
<TR><TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<P><A HREF="#condensedconsolidatedstmtsofincome"><FONT SIZE=2>Condensed Consolidated Statements of Operations</FONT></A></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>for the Three Months and Six Months Ended </FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>October 31, 2000 and 1999</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">4</FONT></TD>
</TR>
<TR><TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<P><A HREF="#condensedconsolidatedstmtsofcashflow"><FONT SIZE=2>Condensed Consolidated Statements of Cash Flows</FONT></A></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>for the Six Months Ended October 31, 2000 and 1999</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">5</FONT></TD>
</TR>
<TR><TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<P><A HREF="#notestocondensedconsolfinancialstmts"><FONT SIZE=2>Notes to Condensed Consolidated Financial</FONT></A></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>Statements</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">6</FONT></TD>
</TR>
<TR><TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>Item 2.</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<P><A HREF="#MDandAfinancialconditionandresultofop"><FONT SIZE=2>Management's Discussion and Analysis of Financial</FONT></A></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<U><FONT SIZE=2><P>Condition and Results of Operations</U></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">10</FONT></TD>
</TR>
<TR><TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<B><FONT SIZE=2><P>PART II.</B></FONT></TD>
<TD WIDTH="68%" VALIGN="TOP" COLSPAN=3>
<B><FONT SIZE=2><P>OTHER INFORMATION</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>Item 1.</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<P><A HREF="#legalproceedins"><FONT SIZE=2>Legal Proceedings</FONT></A></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">13</FONT></TD>
</TR>
<TR><TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>Item 4.</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<P><A HREF="#submissionofmatterstoavoteofsecholders"><FONT SIZE=2>Submission of Matters to a Vote of Security Holders</FONT></A></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">15</FONT></TD>
</TR>
<TR><TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P>Item 6.</FONT></TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<P><A HREF="#exhibitsandreportsonform8k"><FONT SIZE=2>Exhibits and Reports on Form 8-K</FONT></A></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">16</FONT></TD>
</TR>
<TR><TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="55%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="84%" VALIGN="TOP" COLSPAN=5>
<B><FONT SIZE=2><P>SIGNATURES</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">17</FONT></TD>
</TR>
</TABLE>

<P>&nbsp;</P>
<P><HR></P>
<P>&nbsp;</P>
<B><FONT FACE="Book Antiqua" SIZE=2><P>PART 1. FINANCIAL INFORMATION</P>
</B></FONT><FONT SIZE=2><P>ITEM 1. Financial Statements (Unaudited<B>)</P>
</FONT><FONT FACE="Book Antiqua" SIZE=2><P ALIGN="CENTER">MILLER INDUSTRIES, INC. AND SUBSIDIARIES<BR>
<A NAME="condensedconsolidatedbalancesheets">CONDENSED CONSOLIDATED BALANCE SHEETS</A><BR>
</FONT><FONT SIZE=2>(In thousands, except share data)</P>
<P ALIGN="CENTER">(Unaudited)</P><DIR>

</FONT><FONT FACE="Book Antiqua" SIZE=2><P ALIGN="CENTER">ASSETS</P></DIR>
</B></FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=601>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3>
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=4>
<B><FONT SIZE=2><P ALIGN="RIGHT">October 31,&nbsp;&nbsp;<BR>
2000&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="right">April 30,&nbsp;&nbsp;&nbsp;<BR>
2000&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=4><HR align=right color=#000080 width=70 size=2></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2><HR align=right color=#000080 width=70 size=2></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3>
<B><FONT FACE="Book Antiqua" SIZE=2><P>CURRENT ASSETS:</B></FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=4>
<P>&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3>
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and temporary investments</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=4>
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,721&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,990&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3>
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=4>
<FONT SIZE=2><P ALIGN="RIGHT">75,331&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">90,437&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3>
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=4>
<FONT SIZE=2><P ALIGN="RIGHT">82,805&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">83,604&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3>
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=4>
<FONT SIZE=2><P ALIGN="RIGHT">5,804&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">5,879&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3>
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=4>
<FONT SIZE=2><P ALIGN="RIGHT">11,049&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">8,445&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3>
<P></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=4>
<HR align=right color=#000080 width=70 size=1></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<HR align=right color=#000080 width=70 size=1></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3>
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets</FONT>
</TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=4>
<FONT SIZE=2><P ALIGN="RIGHT">184,710&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">194,355&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3>
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=4>
<P ALIGN="RIGHT">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3>
<B><FONT FACE="Book Antiqua" SIZE=2><P>PROPERTY, PLANT AND EQUIPMENT, net</B></FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=4>
<FONT SIZE=2><P ALIGN="RIGHT">65,097&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">70,284&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3>
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=4>
<P ALIGN="RIGHT">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3>
<B><FONT FACE="Book Antiqua" SIZE=2><P>GOODWILL, net</B></FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=4>
<FONT SIZE=2><P ALIGN="RIGHT">48,849&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">49,530&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3>
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=4>
<P ALIGN="RIGHT">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3>
<B><FONT FACE="Book Antiqua" SIZE=2><P>OTHER ASSETS, net</B></FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=4>
<FONT SIZE=2><P ALIGN="RIGHT">7,063&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">9,525&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3>
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=4>
<HR align=right color=#000080 width=70 size=1></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<HR align=right color=#000080 width=70 size=1></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3 HEIGHT=30><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=4 HEIGHT=30>
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;305,719&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2 HEIGHT=30>
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;323,694&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3>
<P></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=4>
<HR align=right color=#000080 width=70 size=4></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<HR align=right color=#000080 width=70 size=4></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=9>
<B><FONT SIZE=2><P ALIGN="CENTER">LIABILITIES AND SHAREHOLDERS' EQUITY</B></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=5>
<P ALIGN="RIGHT">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=2>
<B><FONT FACE="Book Antiqua" SIZE=2><P>CURRENT LIABILITIES:</B></FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=5>
<P ALIGN="RIGHT">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=2>
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current portion of long-term debt </FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=5>
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;121,024&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15,949&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=2>
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=5>
<FONT SIZE=2><P ALIGN="RIGHT">37,647&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">46,177 &nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=2>
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities and </FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=5>
<FONT SIZE=2><P ALIGN="RIGHT">32,228&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">28,428&nbsp;</FONT></TD>
</TR>

<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3>
<P></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=4>
<HR align=right color=#000080 width=70 size=1></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<HR align=right color=#000080 width=70 size=1></TD>
</TR>





<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=2>
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=5>
<FONT SIZE=2><P ALIGN="RIGHT">190,899&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">90,554&nbsp;</FONT></TD>
</TR>

<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3>
<P></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=4>
<HR align=right color=#000080 width=70 size=1></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<HR align=right color=#000080 width=70 size=1></TD>
</TR>

<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=2>
<B><FONT FACE="Book Antiqua" SIZE=2><P>LONG-TERM DEBT, less current portion</B></FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=5>
<FONT SIZE=2><P ALIGN="RIGHT">5,471&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">119,319&nbsp;</FONT></TD>
</TR>

<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=3>
<P></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=4>
<HR align=right color=#000080 width=70 size=1></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<HR align=right color=#000080 width=70 size=1></TD>
</TR>



<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=2>
<B><FONT FACE="Book Antiqua" SIZE=2><P>DEFERRED INCOME TAXES</B></FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=5>
<FONT SIZE=2><P ALIGN="RIGHT">58&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">0&nbsp;</FONT></TD>
</TR>


<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=2>
<P></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=5>
<HR align=right color=#000080 width=70 size=1></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<HR align=right color=#000080 width=70 size=1></TD>
</TR>


<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=2>
<B><FONT FACE="Book Antiqua" SIZE=2><P>SHAREHOLDERS' EQUITY </B>(Note 2):</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=5>
<P ALIGN="RIGHT">&nbsp;</TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">&nbsp;</TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=2>
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, $.01 par value, 5,000,000<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares authorized; none issued or<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;outstanding</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=5>
<FONT SIZE=2><P ALIGN="RIGHT">0&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">0&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=2>
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock, $.01 par value, 100,000,000<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;shares authorized; 46,708,767<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and 46,707,135 shares issued and<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;outstanding at October 31, 2000 and<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;April 30, 2000, respectively</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=5>
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
<BR>
467&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=3>
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
<BR>
467&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=2>
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in capital</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=5>
<FONT SIZE=2><P ALIGN="RIGHT">144,713&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">144,707&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=2>
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=5>
<FONT SIZE=2><P ALIGN="RIGHT">(33,996)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">(30,075)</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=2>
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=5>
<FONT SIZE=2><P ALIGN="RIGHT">(1,893)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">(1,278)</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=5>
<HR align=right color=#000080 width=70 size=1></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<HR align=right color=#000080 width=70 size=1></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=2 HEIGHT=18>
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total shareholders' equity
</FONT></TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=5 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">109,291&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2 HEIGHT=18>
<FONT SIZE=2><P ALIGN="RIGHT">113,821&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=5>
<HR align=right color=#000080 width=70 size=1></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<HR align=right color=#000080 width=70 size=1></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=5>
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;305,719&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT">$ 323,694&nbsp;</FONT></TD>
<TR><TD WIDTH="66%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="18%" VALIGN="TOP" COLSPAN=5>
<HR align=right color=#000080 width=70 size=4></TD>
<TD WIDTH="16%" VALIGN="TOP" COLSPAN=2>
<HR align=right color=#000080 width=70 size=4></TD>
</TR>
</TR>
</TABLE>

<I><FONT SIZE=2><P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">See accompanying notes to condensed consolidated financial statements.</P>
</I></FONT><P ALIGN="CENTER"><HR></P>
<I><FONT SIZE=2><P>&nbsp;</P>
</I></FONT><B><FONT FACE="Book Antiqua" SIZE=2><P ALIGN="CENTER">MILLER INDUSTRIES, INC. AND SUBSIDIARIES<BR>
<A NAME="condensedconsolidatedstmtsofincome">CONDENSED CONSOLIDATED STATEMENTS OF </A>OPERATIONS<BR>
</FONT><FONT SIZE=2>(In thousands, except per share data)</P>
<P ALIGN="CENTER">(Unaudited)</P></B></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=576>


<TR>

<TD WIDTH="40%" VALIGN="TOP">
<P>&nbsp;</TD>


<TD WIDTH="30%" VALIGN="TOP" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="CENTER">Three Months Ended<BR>
October 31,</B></FONT></TD>


<TD WIDTH="30%" VALIGN="TOP" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="CENTER">Six Months Ended<BR>
October 31,</B></FONT></TD>
</TR>


<TR><TD WIDTH="40%" VALIGN="TOP">&nbsp;</TD>

<TD WIDTH="30%" VALIGN="TOP" COLSPAN=2><HR ALIGN=RIGHT COLOR=#000080 WIDTH=160 size=2></TD>
<TD WIDTH="30%" VALIGN="TOP" COLSPAN=2><HR aligh=right color=#000080 width=160 size=2></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="CENTER">2000</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">1999</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="CENTER">2000</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER">1999</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=2></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=2></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=2></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=2></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP">
<B><FONT FACE="Book Antiqua" SIZE=2><P>NET SALES</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;129,331&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;148,738</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;256,342 </FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp; &nbsp;&nbsp;283,074 </FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=1></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=1></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=1></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=1></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP">
<B><FONT FACE="Book Antiqua" SIZE=2><P>COSTS AND EXPENSES:</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP"></TD>
<TD WIDTH="15%" VALIGN="TOP"></TD>
<TD WIDTH="15%" VALIGN="TOP"></TD>
<TD WIDTH="15%" VALIGN="TOP"></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Costs of operations</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;111,123&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;122,268</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">219,444</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">232,182</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general, and<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;administrative expenses</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">

<FONT SIZE=2><P ALIGN="RIGHT"><BR>
17,145&nbsp;
</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
19,680</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
35,678</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
38,908</FONT></TD>
</TR>

<TR><TD WIDTH="40%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-recurring charges</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT">0&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT">6,041</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT">0</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=12>
<FONT SIZE=2><P ALIGN="RIGHT">6,041 </FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense, net</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3,821&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;2,792</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;7,150</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;5,430</FONT></TD>
</TR>

<TR><TD WIDTH="40%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=1></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=1></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=1></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=1></TD>
</TR>



<TR><TD WIDTH="40%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total costs and expenses</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;132,089&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp; &nbsp;150,781</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp;&nbsp;&nbsp;262,272</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;&nbsp; &nbsp;282,561</FONT></TD>
</TR>

<TR><TD WIDTH="40%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=1></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=1></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=1></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=1></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP">
<B><FONT FACE="Book Antiqua" SIZE=2><P>INCOME (LOSS) BEFORE<BR>
&nbsp;&nbsp;&nbsp;&nbsp;INCOME TAXES</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
(2,758)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
(2,043)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
(5,930)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
513</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP">
<B><FONT FACE="Book Antiqua" SIZE=2><P>INCOME TAX PROVISION<BR>
&nbsp;&nbsp;&nbsp;&nbsp;(BENEFIT)</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(927)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;(892)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;(2,006)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;220</FONT></TD>
</TR>

<TR><TD WIDTH="40%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=1></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=1></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=1></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=1></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP" HEIGHT=21><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=21><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=21><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=21><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=21><P></P></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP">
<B><FONT FACE="Book Antiqua" SIZE=2><P>NET INCOME (LOSS) </B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;(1,831)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;(1,151)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;(3,924)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;293</FONT></TD>
</TR>

<TR><TD WIDTH="40%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=4></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=4></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=4></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=4></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP" HEIGHT=24>
<B><FONT FACE="Book Antiqua" SIZE=2><P>NET INCOME (LOSS) PER<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;COMMON SHARE</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=24><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=24><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=24><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=24><P></P></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP">
<B><FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.04)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;(0.02)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;(0.08)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;0.01</FONT></TD>
</TR>

<TR><TD WIDTH="40%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=4></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=4></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=4></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=4></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP">
<B><FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Diluted</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(0.04)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;(0.02)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;(0.08)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;0.01</FONT></TD>
</TR>

<TR><TD WIDTH="40%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=4></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=4></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=4></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=4></TD>
</TR>


<TR><TD WIDTH="40%" VALIGN="TOP">
<P><HR WIDTH="0%" SIZE=0></P>
<B><FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;WEIGHTED AVERAGE<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHARES OUTSTANDING</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;</P>
<P ALIGN="RIGHT">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;</P>
<P ALIGN="RIGHT">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">&nbsp;</P>
<P ALIGN="RIGHT">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP">
<B><FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">46,710</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">46,699</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">46,709</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">46,694</FONT></TD>
</TR>

<TR><TD WIDTH="40%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=4></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=4></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=4></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=4></TD>
</TR>

<TR><TD WIDTH="40%" VALIGN="TOP">
<B><FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;Diluted</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">46,710</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">46,699</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">46,709</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">47,066</FONT></TD>
</TR>

<TR><TD WIDTH="40%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=4></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=4></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=4></TD>
<TD WIDTH="15%" VALIGN="TOP"><HR ALIGN=RIGHT COLOR=#000080 WIDTH=70 size=4></TD>
</TR>

</TABLE>
</CENTER></P>

<FONT SIZE=2><P ALIGN="CENTER">&nbsp;</P>
<I><P ALIGN="CENTER">See accompanying notes to condensed consolidated financial statements</I>.</P>
<P>&nbsp;</P>
</FONT><P ALIGN="CENTER"><HR></P>
<FONT SIZE=2><P>&nbsp;</P>
</FONT><B><FONT FACE="Book Antiqua" SIZE=2><P ALIGN="CENTER">MILLER INDUSTRIES, INC. AND SUBSIDIARIES<BR>
<A NAME="condensedconsolidatedstmtsofcashflow">CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS</A><BR>
(in thousands)<BR>
(Unaudited)</P></B></FONT>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=672>

<TR><TD WIDTH="70%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="30%" VALIGN="TOP" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="CENTER">Six Months Ended October 31,</B></FONT></TD>
</TR>

<TR><TD WIDTH="70%" VALIGN="TOP">
<P></TD>
<TD WIDTH="30%" VALIGN="TOP" COLSPAN=2>
<hr align=right color=#000080 width=200 size=2></TD>
</TR>


<TR><TD WIDTH="70%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="CENTER">2000</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="CENTER">1999</B></FONT></TD>
</TR>

<TR><TD WIDTH="70%" VALIGN="TOP">
<P></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR ALIGN=RIGHT COLOR=#000080 width=95 size=1></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR ALIGN=RIGHT COLOR=#000080 width=95 size=1></TD>
</TR>


<TR><TD WIDTH="70%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Book Antiqua" SIZE=2><P>OPERATING ACTIVITIES:</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (loss) income </FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3,924)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;293&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net (loss) income to net<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;cash provided by operating activities:</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">6,806&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">8,584&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax (benefit) provision</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">119&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(130)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on disposals of property, plant,<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and equipment</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
(371)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>
(220)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gain on disposal of other long-term asset</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(357)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">0&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities:</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable</FONT>
</TD>
<TD WIDTH="15%" VALIGN="TOP">

<FONT SIZE=2><P ALIGN="RIGHT">14,496&nbsp;
</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">

<FONT SIZE=2><P ALIGN="RIGHT">(7,744)
</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">215&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(5,763)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other
</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(2,631)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">3,815&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">3,738&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">

<FONT SIZE=2><P ALIGN="RIGHT">9,011&nbsp;
</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">

<FONT SIZE=2><P ALIGN="RIGHT">(8,521)
</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">

<FONT SIZE=2><P ALIGN="RIGHT">6,770&nbsp;
</FONT></TD>
</TR>

<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(1,021)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">316&nbsp;</FONT></TD>
</TR>


<TR><TD WIDTH="70%" VALIGN="TOP">
<P></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR ALIGN=RIGHT COLOR=#000080 width=95 size=1></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR ALIGN=RIGHT COLOR=#000080 width=95 size=1></TD>
</TR>


<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">8,549&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">14,932&nbsp;</FONT></TD>
</TR>


<TR><TD WIDTH="70%" VALIGN="TOP">
<P></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR ALIGN=RIGHT COLOR=#000080 width=95 size=1></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR ALIGN=RIGHT COLOR=#000080 width=95 size=1></TD>
</TR>






<TR><TD WIDTH="70%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<B><FONT FACE="Book Antiqua" SIZE=2><P>INVESTING ACTIVITIES:</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of property, plant, and equipment</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(1,791)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(5,058)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sales of property, plant, and equipment</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">2,417&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">1,317&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of other long-term asset</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">3,371</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">0&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition of businesses, net of cash acquired</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(71)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(2,108)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">212&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">108&nbsp;</FONT></TD>
</TR>

<TR><TD WIDTH="70%" VALIGN="TOP">
<P></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR ALIGN=RIGHT COLOR=#000080 width=95 size=1></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR ALIGN=RIGHT COLOR=#000080 width=95 size=1></TD>
</TR>


<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;Net cash provided by (used in) investing activities</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">4,138&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(5,741)</FONT></TD>
</TR>

<TR><TD WIDTH="70%" VALIGN="TOP">
<P></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR ALIGN=RIGHT COLOR=#000080 width=95 size=1></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR ALIGN=RIGHT COLOR=#000080 width=95 size=1></TD>
</TR>

<TR><TD WIDTH="70%" VALIGN="TOP">
<B><FONT FACE="Book Antiqua" SIZE=2><P>FINANCING ACTIVITIES:</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net repayments under line of credit</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(7,000)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(5,000)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of long-term debt</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(1,700)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(3,712)</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from exercise of stock options</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">6&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">88&nbsp;</FONT></TD>
</TR>

<TR><TD WIDTH="70%" VALIGN="TOP">
<P></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR ALIGN=RIGHT COLOR=#000080 width=95 size=1></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR ALIGN=RIGHT COLOR=#000080 width=95 size=1></TD>
</TR>

<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;Net cash used in financing activities</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(8,694)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">(8,624)</FONT></TD>
</TR>

<TR><TD WIDTH="70%" VALIGN="TOP">
<P></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR ALIGN=RIGHT COLOR=#000080 width=95 size=1></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR ALIGN=RIGHT COLOR=#000080 width=95 size=1></TD>
</TR>

<TR><TD WIDTH="70%" VALIGN="TOP">
<B><FONT FACE="Book Antiqua" SIZE=2><P>EFFECT OF EXCHANGE RATE CHANGES ON<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CASH AND TEMPORARY INVESTMENTS</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>(262)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>(15)</FONT></TD>
</TR>

<TR><TD WIDTH="70%" VALIGN="TOP">
<P></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR ALIGN=RIGHT COLOR=#000080 width=95 size=1></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR ALIGN=RIGHT COLOR=#000080 width=95 size=1></TD>
</TR>

<TR><TD WIDTH="70%" VALIGN="TOP">
<B><FONT FACE="Book Antiqua" SIZE=2><P>NET INCREASE IN CASH AND TEMPORARY<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INVESTMENTS</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>3,731&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>552&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<B><FONT FACE="Book Antiqua" SIZE=2><P>CASH AND TEMPORARY INVESTMENTS,<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;beginning of period</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>5,990&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>9,331&nbsp;</FONT></TD>
</TR>

<TR><TD WIDTH="70%" VALIGN="TOP">
<P></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR ALIGN=RIGHT COLOR=#000080 width=95 size=1></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR ALIGN=RIGHT COLOR=#000080 width=95 size=1></TD>
</TR>

<TR><TD WIDTH="70%" VALIGN="TOP">
<B><FONT FACE="Book Antiqua" SIZE=2><P>CASH AND TEMPORARY INVESTMENTS,<BR>
&nbsp;&nbsp;&nbsp;&nbsp;end of period</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,721&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><BR>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,883&nbsp;</FONT></TD>
</TR>

<TR><TD WIDTH="70%" VALIGN="TOP">
<P></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR ALIGN=RIGHT COLOR=#000080 width=95 size=4></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR ALIGN=RIGHT COLOR=#000080 width=95 size=4></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<B><FONT FACE="Book Antiqua" SIZE=2><P>SUPPLEMENTAL DISCLOSURE OF CASH FLOW<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INFORMATION:</B></FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="15%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash payments for interest</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,730&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,264&nbsp;</FONT></TD>
</TR>

<TR><TD WIDTH="70%" VALIGN="TOP">
<P></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR ALIGN=RIGHT COLOR=#000080 width=95 size=4></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR ALIGN=RIGHT COLOR=#000080 width=95 size=4></TD>
</TR>
<TR><TD WIDTH="70%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash payments for income taxes</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;349&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;829&nbsp;</FONT></TD>
</TR>

<TR><TD WIDTH="70%" VALIGN="TOP">
<P></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR ALIGN=RIGHT COLOR=#000080 width=95 size=4></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR ALIGN=RIGHT COLOR=#000080 width=95 size=4></TD>
</TR>
</TABLE>

<B><P ALIGN="CENTER"><A NAME="_MILLER_INDUSTRIES__INC_"></A></P>
</B><P ALIGN="CENTER"><HR></P>
<B><P>&nbsp;</P>
<P ALIGN="CENTER">MILLER INDUSTRIES, INC. AND SUBSIDIARIES</P>
<P ALIGN="CENTER"><A NAME="notestocondensedconsolfinancialstmts">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</A></P>
<P ALIGN="CENTER">(Unaudited)</P></B>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=738>
<TR><TD WIDTH="4%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="96%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP">
<B><P>1.</B></TD>
<TD WIDTH="96%" VALIGN="TOP">
<B><P>Basis of Presentation</B></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="96%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="96%" VALIGN="TOP">
<P>The condensed consolidated financial statements of Miller Industries, Inc. and subsidiaries (the "Company") included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Certain
information and footnote disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. Nevertheless, the Company
believes that the disclosures are adequate to make the financial information presented not misleading. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which are of a normal
recurring nature, to present fairly the Company's financial position, results of operations and cash flows at the dates and for the periods presented. Cost of goods sold for interim periods for certain entities in the towing and recovery equipment segment
is determined

based on estimated gross profit rates. Interim results of operations are not necessarily indicative of results to be expected for the fiscal year. These condensed consolidated financial statements should be read in conjunction with the Company's Annual
Report on Form 10-K for the year ended April 30, 2000.</TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="96%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP">
<B><P>2.&nbsp;</B></TD>
<TD WIDTH="96%" VALIGN="TOP">
<B><P>Net Income Per Share</B></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="96%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="96%" VALIGN="TOP">
<P>Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding. Diluted net income per share is calculated by dividing net income by the weighted average number of common and potential
dilutive common shares outstanding. Diluted net income per share takes into consideration the assumed conversion of outstanding stock options resulting in 373,000 potential dilutive common shares for the six months ended October 31, 1999. Diluted net
income per share for the three and six months ended October 31, 2000 and for the three months ended October 31, 1999 does not assume exercise of any stock options as the effect would be anti-dilutive. Per share amounts do not include the assumed
conversion of stock options with exercise prices greater than the average share price because to do so would have been anti-dilutive.</TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="96%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP">
<B><P>3.</B></TD>
<TD WIDTH="96%" VALIGN="TOP">
<B><P>Inventories</B></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="96%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="96%" VALIGN="TOP">
<P>Inventory costs include materials, labor and factory overhead. Inventories are stated at the lower of cost or market, determined on a first-in, first-out basis. Inventories at October 31, 2000 and April&nbsp;30, 2000 consisted of the following (in
thousands):</TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="96%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
</TABLE>

<P>&nbsp;</P>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=375>
<TR><TD WIDTH="22%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="22%" VALIGN="TOP">
<P ALIGN="CENTER">October 31,</TD>
<TD WIDTH="22%" VALIGN="TOP">
<P ALIGN="CENTER">April 30,</TD>
</TR>

<TR><TD WIDTH="22%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="22%" VALIGN="TOP">
<P ALIGN="CENTER">2000</TD>
<TD WIDTH="22%" VALIGN="TOP">
<P ALIGN="CENTER">2000</TD>
</TR>


<TR><TD WIDTH="22%" VALIGN="TOP">
<P></TD>
<TD WIDTH="33%" VALIGN="TOP">
<P></TD>
<TD WIDTH="22%" VALIGN="TOP">
<HR align=right color=#000080 width=70 size=2></TD>
<TD WIDTH="22%" VALIGN="TOP">
<HR align=right color=#000080 width=70 size=2></TD>
</TR>



<TR><TD WIDTH="22%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">
<P>Chassis</TD>
<TD WIDTH="22%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15,140</TD>
<TD WIDTH="22%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15,757</TD>
</TR>
<TR><TD WIDTH="22%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">
<P>Raw Materials</TD>
<TD WIDTH="22%" VALIGN="TOP">
<P ALIGN="RIGHT">14,969</TD>
<TD WIDTH="22%" VALIGN="TOP">
<P ALIGN="RIGHT">16,226</TD>
</TR>
<TR><TD WIDTH="22%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">
<P>Work in process</TD>
<TD WIDTH="22%" VALIGN="TOP">
<P ALIGN="RIGHT">13,551</TD>
<TD WIDTH="22%" VALIGN="TOP">
<P ALIGN="RIGHT">14,487</TD>
</TR>
<TR><TD WIDTH="22%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">
<P>Finished goods</TD>
<TD WIDTH="22%" VALIGN="TOP">
<P ALIGN="RIGHT">39,145</TD>
<TD WIDTH="22%" VALIGN="TOP">
<P ALIGN="RIGHT">37,134</TD>
</TR>

<TR><TD WIDTH="22%" VALIGN="TOP">
<P></TD>
<TD WIDTH="33%" VALIGN="TOP">
<P></TD>
<TD WIDTH="22%" VALIGN="TOP">
<HR align=right color=#000080 width=70 size=2></TD>
<TD WIDTH="22%" VALIGN="TOP">
<HR align=right color=#000080 width=70 size=2></TD>
</TR>




<TR><TD WIDTH="22%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="33%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="22%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;82,805</TD>
<TD WIDTH="22%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;83,604</TD>
</TR>

<TR><TD WIDTH="22%" VALIGN="TOP">
<P></TD>
<TD WIDTH="33%" VALIGN="TOP">
<P></TD>
<TD WIDTH="22%" VALIGN="TOP">
<HR align=right color=#000080 width=70 size=4></TD>
<TD WIDTH="22%" VALIGN="TOP">
<HR align=right color=#000080 width=70 size=4></TD>
</TR>


</TABLE>
</CENTER></P>


<TABLE CELLSPACING=0 BORDER=0 WIDTH=738>
<TR><TD WIDTH="7%" VALIGN="TOP">
<P><B>4.</B></TD>
<TD WIDTH="93%" VALIGN="TOP">
<B><P>Asset Impairments and Other Non-Recurring Charges</B></TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="93%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="93%" VALIGN="TOP">
<P>During the second quarter of fiscal 2000, the Company announced plans to rationalize its towing services operations. The Company recorded pretax non-recurring charges of $6,041,000 for costs related to the rationalization. These charges include
approximately $4,589,000 for the cost of early termination of certain employment contracts, approximately $857,000 for the cost of early termination of facility leases and $595,000 for losses on the disposal of certain excess equipment and other
property-related charges. At October 31, 2000, execution of the rationalization plan was complete and approximately $3,002,000 had been charged against the related reserves. The remaining reserve will be utilized as payments are made under the terms of
employment termination agreements.</TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="93%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="93%" VALIGN="TOP">
<P>The Company periodically reviews the carrying amount of the long-lived assets and goodwill in both its towing services and towing equipment businesses to determine if those assets may be recoverable based upon the future operating cash flows expected
to be generated by those assets. As a result of such review during the fourth quarter of fiscal 2000, the Company concluded that the carrying value of such assets in certain towing services markets and certain assets within the Company's towing and
recovery equipment segment were not fully recoverable.</TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="93%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="93%" VALIGN="TOP">
<P>An impairment charge of $50,542,000 was recorded in the fourth quarter of 2000 to write-down the goodwill in certain towing services markets to its estimated fair value. Additionally, charges of $18,576,000 were recorded to write-down the carrying
value of certain fixed assets (primarily property and equipment) in related markets to estimated fair value. The Company determined fair value for these assets on a market by market basis taking into consideration various factors affecting the valuation
in each market.</TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="93%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="93%" VALIGN="TOP">
<P>In connection with the above review, the Company also analyzed the amortizable lives of its goodwill on a market by market basis. As a result of such review, the Company determined that conditions in certain markets warranted a reduction in the useful
life of goodwill in those markets. Consequently, the amortizable life of goodwill in those markets was reduced from forty years to twenty years effective May&nbsp;1, 2000.</TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="93%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="93%" VALIGN="TOP">
<P>The Company also reviewed the carrying values of goodwill associated with certain investments within its towing and recovery equipment segment. This evaluation indicated that the recorded amounts of goodwill for certain of these investments were not
fully recoverable. An impairment charge of $4,967,000 was recorded to reduce the carrying amount of goodwill to estimated fair value. The Company also recorded $2,770,000 of additional costs related to the write-down of the carrying value of other
long-lived assets of its towing and recovery equipment segment in the fourth quarter of fiscal 2000.</TD>
</TR>
</TABLE>
<P> </P>

<TABLE CELLSPACING=0 BORDER=0 WIDTH=738>
<TR><TD WIDTH="8%" VALIGN="TOP">
<P><B>5.</B></TD>
<TD WIDTH="92%" VALIGN="TOP">
<B><P>Long-Term Obligations</B></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="92%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="92%" VALIGN="TOP">
<P>At October 31, 2000, the Company had a credit facility of $140.0 million (the "Credit Facility"), which consists of a revolving credit facility of $115.0 million and $25.0 million of borrowings under a term loan. The Credit Facility is used for
working capital and other general corporate purposes. At the end of the second quarter, $119.0 million was outstanding under the Credit Facility. Under the terms of the Credit Facility agreement, total availability under the facility was reduced to $127.0
million on November 30, 2000. The agreement also provides that availability under the revolving credit facility will be based on a formula of eligible accounts receivable, inventory, and fixed assets. </TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="92%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="92%" VALIGN="TOP">
<P>Borrowings under the revolving credit facility bear interest at LIBOR plus an applicable margin that varies from 2.50% to 4.75% based on a pricing grid that is a function of the ratio of the Company's debt to earnings before income taxes,
depreciation, and amortization (as defined). Borrowings under the term loan bear interest at LIBOR plus an applicable margin which increases from 5.00% to 6.00% on December 1, 2000 and to 8.00% on February 1, 2001. The Company will be required to pay
certain fees on the unused portion of the credit facility and the outstanding balance of the term loan. </TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="92%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="92%" VALIGN="TOP">
<P>The Credit Facility, by its terms, currently matures on August 1, 2001. The Company is required by generally accepted accounting principles to reflect the entire outstanding balance under the Credit Facility as a current liability in the accompanying
consolidated financial statements at October 31, 2000.</TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="92%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="92%" VALIGN="TOP">
<P>The Credit Facility is secured by all assets of the Company, including real property, equipment and vehicles. The Credit Facility contains restrictions on capital expenditures, requirements related to monthly collateral reporting, maintaining minimum
quarterly levels of earnings before income taxes, depreciation, and amortization, and limits on the ratio of total funded indebtedness to earnings before income taxes, depreciation, and amortization. </TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="92%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="92%" VALIGN="TOP">
<P>The Credit Facility was amended in December 2000 to reduce the maximum availability under the Credit Facility to $125 million effective December 15, 2000, and to $119 million effective January 31, 2001. In connection with the amendments, the banks
waived the Company's failure to comply with minimum quarterly earnings before income taxes, depreciation and amortization requirements, as well as further limiting quarterly capital expenditures. The amendment did not extend the maturity of the Credit
Facility beyond its scheduled August 2001 maturity date.</TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="92%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="92%" VALIGN="TOP">
<P>The Credit Facility requires that there be certain mandatory prepayments of the Credit Facility and reductions of the revolving credit facility if the Company or any of its subsidiaries make certain asset dispositions, debt offerings or equity
offerings. The amended credit facility also requires that the Company retain a financial advisor, which it engaged during the second quarter of fiscal 2001, to advise in the evaluation of possible sales of assets.</TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="92%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="92%" VALIGN="TOP">
<P>The Company's future cash flow would be insufficient to meet its debt obligations if it is required to repay the outstanding balance of the Credit Facility at its scheduled maturity in August 2001. The Company's ability to meet its principal payment
obligations at the August 2001 maturity will depend on whether it can arrange a refinancing , restructuring, or extension of such facility on satisfactory terms within that time frame. The Company has been engaged in discussions with its lenders regarding
an extension of the maturity date, and intends to continue those discussions. In addition, the Company is currently engaged in discussions with other institutions to replace the Credit Facility in the event that the Company is unable to reach commercially
reasonable terms with its current lenders.</TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="92%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="92%" VALIGN="TOP">
<P>If the Company is unable to refinance, restructure or extend its Credit Facility, the Company may be required to sell additional assets, reduce or delay capital investments or seek to raise additional capital, among other things. The Company cannot
give any assurance that refinancing, restructuring or extension of the current Credit Facility would be possible, that any assets could be sold, or, if sold, of the timing of the sales and the amount of proceeds realized from those sales, or that
additional capital could be obtained on acceptable terms, if at all. The Company's inability to refinance, restructure or extend its indebtedness on commercially reasonable terms would have a material adverse effect on its business, financial condition,
and results of operations. The debt under the Company's Credit Facility is secured by liens on all of its assets, and the Company's failure to pay these obligations when due would permit the lenders to pursue their remedies under the Credit Facility. In
addition, the Co

mpany is unable to predict how other creditors will react to the classification of the Company's bank debt as a current liability.</TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="92%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="92%" VALIGN="TOP">
<P>The Company's ability to obtain sufficient cash to make scheduled payments on its debt obligations as they become due until the August 2001 maturity will depend on future cash flow from operations, sales of assets and the Company's financial
performance, which will be affected by a range of economic, competitive and business factors. The Company cannot control many of these factors, such as general economic and financial conditions in the towing industry and the economy at large.</TD>
</TR>
</TABLE>

<P> </P>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=738>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P><B>6.</B></TD>
<TD WIDTH="94%" VALIGN="TOP">
<B><P>Fixed Asset Disposals</B></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="94%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="94%" VALIGN="TOP">
<P>During the fourth quarter of fiscal 2000, the Company announced its plans to accelerate its efforts to aggressively reduce expenses in the towing services segment at the corporate level, as well as in the field. The Company also considered all
alternatives to bring its underperforming towing services markets to an acceptable level of profitability, including the possible disposition of such assets. As part of these efforts, the Company disposed of assets in seven underperforming markets, as
well as assets in certain other markets, during the second quarter of fiscal 2001. Total proceeds from these sales were approximately $3,515,000. Subsequent to October 31, 2000, the Company sold three additional underperforming markets and one location,
as well as certain other fixed assets, with expected proceeds of approximately $4,109,000. The Company continues to investigate all financial alternatives with respect to the overall towing services segment in order to enhance shareholder value.</TD>
</TR>
</TABLE>

<P>  </P>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=738>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P><B>7.</B></TD>
<TD WIDTH="94%" VALIGN="TOP">
<B><P>Legal Matters</B></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="94%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="94%" VALIGN="TOP">
<P>In January 1998, the Company received a letter from the Antitrust Division of the Department of Justice (the "Division") stating that it was conducting a civil investigation covering "competition in the tow truck industry". The letter asked that the
Company preserve its records related to the tow truck industry, particularly documents related to sales and prices of products and parts, acquisition of other companies in the industry, distributor relations, patent matters, competition in the industry
generally, and activities of other companies in the industry. In March 1998, the Company received a Civil Investigative Demand ("CID") issued by the Division as part of its continuing investigation of whether there are, have been or may be violations of
the federal antitrust statutes in the tow truck industry. Under this CID, the Company produced information and documents to assist in the investigation, and corresponded and met with the Division concerning the investigation. In February 2000, the Company
reached

 an agreement with the Division pursuant to which the Company entered into a Stipulation and proposed consent Judgment with the Division, which were filed with the United States District Court for the District of Columbia (the "Court") simultaneously
with the Division's complaint. The complaint focused on the Company's acquisition of Vulcan in 1996 and Chevron in 1997, including the acquisition of their patents. The Company remains convinced that the acquisitions are entirely lawful and that this
position would be vindicated in a court of law. However, the Company believes it is in the best interest of its shareholders to conclude this matter rather than extending for an additional lengthy period what has already been a costly and time consuming
exercise. Under the terms of the consent Judgment, the Company will offer non-exclusive royalty-bearing licenses to certain of the Company's key patents to all tow truck and car carrier manufacturers. In connection with offering licenses, the Company will
notify the

government periodically of companies that have obtained a license. The Company will also have reporting requirements related to future acquisitions of tow truck and car carrier manufacturers. The Division filed a Motion for Entry of Proposed Final
Judgment, in which it states that the necessary procedural steps have been completed and that the Court should find that the proposed Judgment is in the public interest. By order dated December 12, 2000, the Court granted the Division's Motion and entered
the final judgment.</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="94%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="94%" VALIGN="TOP">
<P>During September, October and November 1997, five lawsuits were filed by certain persons who seek to represent a class of shareholders who purchased shares of the Company's common stock during the period from either October 15 or November 6, 1996 to
September 11, 1997. Four of the suits were filed in the United States District Court for the Northern District of Georgia. The remaining suit was filed in the Chancery Court of Hamilton County, Tennessee. In general, the individual plaintiffs in all of
the cases allege that they were induced to purchase the Company's common stock on the basis of allegedly actionable misrepresentations or omissions about the Company and its business and, as a result, were thereby damaged. Four of the complaints assert
claims under Sections 10(b) and 20 of the Securities Act of 1934. The complaints name as the defendants the Company and various of its present and former directors and officers. The plaintiffs in the four actions which involved claims in Federal Court
under the Se

curities Exchange Act of 1934 have consolidated those actions. The Company filed a motion to dismiss in the consolidated case which was granted in part and denied in part. The proposed class was certified by order dated May 27, 1999. All fact discovery
was completed. On or about May 5, 2000, the Company filed a motion seeking summary judgment in favor of all defendants on all remaining claims asserted by the plaintiffs. The plaintiffs also filed a partial summary judgment motion on or about May&nbsp;5,
2000 on two of its claims. By order dated November 20, 2000, the Court granted the Company's summary judgment motion as to all counts and denied the plantiff's motion in full. The Company filed a motion to dismiss in the Tennessee case which was granted
in its entirety. The plaintiffs in that case, with permission from the Chancery Court, amended and refiled their complaint, which was dismissed with prejudice by order of the Chancery Court dated March 11, 1999. On April 4, 1999 counsel for the Plaintiffs
filed

 a notice of appeal with the Tennessee Court of Appeals. On March 31, 2000, the Tennessee Court of Appeals affirmed the decision of the Chancery Court dismissing the case in its entirety. On May 26, 2000, counsel for the plaintiffs filed an application
for permission to appeal to the Tennessee Supreme Court, which the Company opposed. On November 21, 2000, the Supreme Court of Tennessee denied the plaintiff's application to appeal. These favorable rulings conclude all pending shareholder litigation
brought against the Company.</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="94%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="94%" VALIGN="TOP">
<P>In addition to the shareholder litigation described above, the Company is, from time to time, a party to litigation arising in the normal course of its business. The ultimate disposition of such matters cannot be determined presently, but will not, in
the opinion of management, based in part on the advice of legal counsel, have a material adverse effect on the financial position or results of operations of the Company.</TD>
</TR>
</TABLE>

<P ALIGN="CENTER"></P>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=738>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P><B>8.</B></TD>
<TD WIDTH="94%" VALIGN="TOP">
<B><P>Stock Repurchase Plan</B></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="94%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="94%" VALIGN="TOP">
<P>The Company's board of directors approved a share repurchase plan that commenced during fiscal 1998 under which the Company may repurchase up to 2,000,000 shares of its common stock from time to time until September 30, 2001. No shares have been
repurchased under the plan during fiscal 2001 or 2000.</TD>
</TR>
</TABLE>

<P ALIGN="CENTER">&nbsp;</P>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=738>
<TR><TD WIDTH="7%" VALIGN="TOP">
<P><B>9.</B></TD>
<TD WIDTH="93%" VALIGN="TOP">
<B><P>Comprehensive Income</B></TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="93%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="93%" VALIGN="TOP">
<P>The Company has other comprehensive income in the form of cumulative translation adjustments which resulted in total comprehensive income (loss) of approximately ($496,000) and $162,000 for the three months ended October 31, 2000 and 1999,
respectively; and ($615,000) and $48,000 for the six months ended October 31, 2000 and 1999, respectively.</TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP">
<P>&nbsp;</TD>


<TD WIDTH="93%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP">
<B><P>10.</B></TD>
<TD WIDTH="93%" VALIGN="TOP">
<B><P>Segment Information</B></TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="93%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="93%" VALIGN="TOP">


<P>The Company operates in two principal operating segments: (i) towing and recovery equipment and (ii) towing services. The table below presents information about reported segments for the three and six months ended October 31, 2000 and 1999 (in
thousands):</TD>
</TR>
</TABLE>

<P>&nbsp;</P>


<TABLE CELLSPACING=0 BORDER=0 WIDTH=690>
<TR><TD WIDTH="41%" VALIGN="TOP" COLSPAN=3>
<P>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=3>
<U><P ALIGN="CENTER">Towing and<BR>
Recovery<BR>
Equipment</U></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=3>
<U><P ALIGN="RIGHT"><BR>
Towing<BR>
Services</U></TD>
<TD WIDTH="20%" VALIGN="TOP">
<U><P ALIGN="CENTER"><BR>
<BR>
Eliminations</U></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P><BR>
<BR>
Consolidated</U></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP" COLSPAN=3>
<P>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=3>
<P>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=3>
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP" COLSPAN=2>
<B><P>For the three months ended<BR>
&nbsp;&nbsp;&nbsp;&nbsp;October 2000 </B></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=4>
<P>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=3>
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;Net sales-external </TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=5>
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;81,751</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=3>
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;47,580&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;129,331&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;Operating income (loss) </TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=5>
<P ALIGN="RIGHT">2,411</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=3>
<P ALIGN="RIGHT">(1,348)</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">1,063&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;Interest expense, net </TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=5>
<P ALIGN="RIGHT">1,578</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=3>
<P ALIGN="RIGHT">2,243&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">3,821&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;Income (loss) before income taxes </TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=5>
<P ALIGN="RIGHT">833</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=3>
<P ALIGN="RIGHT">(3,591)</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">(2,758)</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=5>
<P>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=3>
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<B><P>For the three months ended <BR>
&nbsp;&nbsp;&nbsp;&nbsp;October 31, 1999</B></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=5>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=3>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=4>
<P>&nbsp;</TD>
<TD WIDTH="0%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="MIDDLE" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="MIDDLE">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="MIDDLE">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;Net sales-external</TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=6>
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;96,262</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;52,476&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;148,738&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;Operating income (loss)</TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=6>
<P ALIGN="RIGHT">6,054</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">(5,305)</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">749&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;Interest expense, net</TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=6>
<P ALIGN="RIGHT">1,338</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">1,454&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">2,792&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;Income (loss) before&nbsp;income taxes</TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=6>
<P ALIGN="RIGHT">4,716</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">(6,759)</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">(2,043)</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=6>
<P>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<B><P>For the six months ended <BR>
&nbsp;&nbsp;&nbsp;&nbsp;October 31, 2000</B></TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=6>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;Net sales-external</TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=7>
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;159,166</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;97,176&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;256,342&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;Operating income (loss)</TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=7>
<P ALIGN="RIGHT">4,234</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">(3,014)</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">1,220&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;Interest expense, net</TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=7>
<P ALIGN="RIGHT">3,031</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">4,119&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">7,150&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;Income (loss) before income taxes</TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=7>
<P ALIGN="RIGHT">1,203</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">(7,133)</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">(5,930)</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=7>
<P>&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP" COLSPAN=2>
<B><P>For the six months ended<BR>
&nbsp;&nbsp;&nbsp;October 31, 1999</B></TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=7>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP" HEIGHT=19>
<P>&nbsp;&nbsp;&nbsp;Net sales-external</TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=7 HEIGHT=19>
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;179,213</TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;103,861&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="CENTER">-</TD>
<TD WIDTH="13%" VALIGN="TOP" HEIGHT=19>
<P ALIGN="RIGHT">$&nbsp;&nbsp;&nbsp;&nbsp;283,074&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;Operating income</TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=7>
<P ALIGN="RIGHT">10,503</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">(4,560)</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">5,943&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;Interest expense, net</TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=7>
<P ALIGN="RIGHT">2,457</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">2,973&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">5,430&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;&nbsp;&nbsp;Income (loss) before income taxes</TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=7>
<P ALIGN="RIGHT">8,046</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">(7,533)</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">513&nbsp;</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="14%" VALIGN="TOP" COLSPAN=7>
<P>&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="20%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
</TABLE>

<P>&nbsp;</P><DIR>
<DIR>

<P ALIGN="CENTER"></P>

<TABLE CELLSPACING=0 BORDER=0 WIDTH=738>
<TR><TD WIDTH="7%" VALIGN="TOP">
<P><B>11.</B></TD>
<TD WIDTH="93%" VALIGN="TOP">
<P><B>Reclassifications</B></TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP">
<P>Certain amounts in the prior period financial information have been reclassified to conform to the current presentation.</TD>
</TR>
</TABLE>

<B><P>Item 2.<A NAME="MDandAfinancialconditionandresultofop">&nbsp;&nbsp;<U>Management's Discussion and Analysis of Financial Condition and Results of Operations</P>
</B></U><I><P></A>Recent Developments</P>
</I><P>Towing Service Initiatives</P>
<P>During the fourth quarter of fiscal 2000, the Company announced its plans to accelerate its efforts to aggressively reduce expenses in the towing services segment at the corporate level, as well as in the field. The Company also considered all
alternatives to bring its underperforming towing services markets to an acceptable level of profitability, including the possible disposition of such assets. As part of these efforts, the Company disposed of assets in seven underperforming markets, as
well as assets in certain other markets, during the second quarter of fiscal 2001 with proceeds of approximately $3,515,000. The Company continues to investigate all financial alternatives with respect to the overall towing services segment in order to
enhance shareholder value. As required by the terms of its bank credit facility, the Company has engaged a financial advisor to advise in the evaluation of possible sales of assets.</P>
<P>Liquidity Considerations</P>
<P>The Company's existing bank credit facility matures on August 1, 2001. At October 31, 2000, the credit facility had an outstanding balance of $119.0 million. Because the credit facility matures during the next 12 months, the Company is required by
generally accepted accounting principles to reflect the entire outstanding balance as a current liability in the accompanying consolidated financial statements as of October 31, 2000. (See "Liquidity and Capital Resources.") </P>
<P>The Company's future cash flow would be insufficient to meet its debt payment obligations if it is required to repay the outstanding balance of the credit facility at its currently scheduled maturity in August 2001, which is during the second quarter
of fiscal 2002. The Company's ability to meet its principal payment obligations at the August 2001 maturity will depend on whether it can arrange a refinancing, restructuring or extension of such facility on satisfactory terms within that time frame. The
Company has been engaged in discussions with its lenders regarding an extension of the maturity date, and intends to continue those discussions. In addition, the Company is currently engaged in discussions with other institutions to replace the credit
facility in the event that the Company is unable to reach commercially reasonable terms with its current lenders. </P>
<P>If the Company is unable to refinance, restructure or extend its credit facility, the Company may be required to sell additional assets, reduce or delay capital investments or seek to raise additional capital, among other things. The Company cannot
give any assurance that any refinancing, restructuring or extension of the current credit facility would be possible, that any assets could be sold, or, if sold, of the timing of the sales and the amount of proceeds realized from those sales, or that
additional capital could be obtained on acceptable terms, if at all. The Company's inability to refinance, restructure or extend its indebtedness on commercially reasonable terms would have a material adverse effect on its business, financial condition,
and results of operations. The debt under the Company's credit facility is secured by liens on all of its assets, and the Company's failure to pay these obligations when due would permit the lenders to pursue their remedies under the credit facility. In
addition, th

e Company is unable to predict how other creditors will react to the classification of the Company's bank debt as a current liability.</P>
<P ALIGN="JUSTIFY">The Company's ability to obtain sufficient cash to make scheduled payments on its debt obligations as they become due until the August 2001 maturity will depend on future cash flow from operations, sales of assets and the Company's
financial performance, which will be affected by a range of economic, competitive and business factors. The Company cannot control many of these factors, such as general economic and financial conditions in the towing industry and the economy at large.</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<I><P>Subsequent Events</P>
</I><P>The Credit Facility was amended in December 2000 to reduce the maximum availability under the Credit Facility to $125.0 million effective December 15, 2000, and to $119.0 million effective January 31, 2001. The amendment did not extend the
maturity of the Credit Facility beyond the scheduled August 2001 maturity date. (See "Liquidity and Capital Resources".)</P>
<P>Subsequent to October 31, 2000, the Company sold three additional underperforming markets and one location, as well as certain other fixed assets in the towing services segment with expected proceeds of approximately $4,109,000.</P>
<I><P>Results of Operations--Three Months Ended October 31, 2000 Compared to Three Months Ended October 31, 1999</P>
</I><P>Net sales for the three months ended October 31, 2000, decreased 13.0% to $129.3 million from $148.7 million for the comparable period in 1999. Net sales in the towing and recovery equipment segment decreased 15.1% from $96.2 million to $81.8
million as demand for the Company's towing and recovery equipment continued to be negatively impacted by the cost pressures facing its customers. Net sales in the towing services segment decreased 9.3% from $52.5 million to $47.6 million primarily due to
declines in revenues in certain underperforming markets, as well as the disposition of seven underperforming markets during the second quarter of fiscal 2001.</P>
<P>Costs of operations for the three months ended October 31, 2000, decreased 9.1% to $111.1 million from $122.3 million for the comparable period in 1999. Costs of operations of the towing and recovery equipment segment increased as a percentage of net
sales from 84.7% to 87.5%. The increase as a percentage of net sales was primarily the result of declines in sales volume as discussed above. In the towing services segment, costs of operations as a percentage of net sales increased from 77.7% to 83.3%.
The increase as a percentage of net sales is primarily due to declines in revenue coupled with increased labor costs, insurance costs due to loss experience, and fuel costs.</P>
<P>Selling, general and administrative expenses for the three months ended October 31, 2000, decreased 12.9% to $17.1 million from $19.7 million for the comparable period of 1999. The decrease was due primarily to the continued cost reduction efforts
implemented in late fiscal 2000.</P>
<P>Net interest expense increased $1.0 million to $3.8 million for the three months ended October 31, 2000 from $2.8 million for the three months ended October 31, 1999, primarily due to higher interest rates on the Company's line of credit.</P>
<P>Income taxes are accounted for on a consolidated basis and are not allocated by segment. The effective rate of the provision for income taxes was (33.6)% for the three months ended October 31, 2000 and (43.7)% for the three months ended October 31, 1999
 .</P>
<I><P>Results of Operations-Six Months Ended October 31, 2000 Compared to Six Months Ended October 31, 1999</P>
</I><P>Net sales for the six months ended October 31, 2000 decreased 9.4% to $256.3 million from $283.0 million for the comparable period in 1999. Net sales in the towing and recovery equipment segment decreased 11.2% from $179.2 million to $159.2
million as demand for the Company's towing and recovery equipment continued to be negatively impacted by the cost pressures facing its customers. Net sales of the towing services segment decreased 6.4% to $97.1 million from $103.9 million due primarily to
declines in revenues in certain underperforming markets, as well as the disposition of seven underperforming markets during the second quarter of fiscal 2001.</P>
<P>Costs of operations decreased 5.5% to $219.4 million for the six months ended October 31, 2000 from $232.2 million for the comparable period in 1999. Costs of operations of the towing and recovery equipment segment increased as a percentage of net
sales from 84.8% to 87.1%. The increase as a percentage of net sales was primarily the result of declines in sales volume as discussed above. The towing services segment's costs of operations increased from 77.2% to 83.1% as a percentage of net sales. The
increase as a percentage of sales is primarily due to declines in revenue coupled with increased labor costs, insurance costs due to loss experience, and fuel costs.</P>
<P>Selling, general and administrative expenses decreased 8.3% to $35.7 million for the six months ended October 31, 2000 from $38.9 million for the comparable period of 1999. The decrease was due primarily to the continued cost reduction efforts
implemented in late fiscal 2000.</P>
<P>During the second quarter of fiscal 2000, the Company recorded non-recurring charges of $6.0 million for the further rationalization of its towing services operations. (See Note 4.)</P>
<P>Net interest expense increased $1.7 million to $7.1 million for the six months ended October 31, 2000 from $5.4 million for the six months ended October 31, 1999 primarily due to higher interest rates on the Company's line of credit.</P>
<P>Income taxes are accounted for on a consolidated basis and are not allocated by segment. The effective rate for the provision for income taxes was (33.8)% for the six months ended October 31, 2000 and 42.9% for the six months ended October 31, 1999.
The difference between the effective tax rate and the statutory tax rate is primarily due to the impact of non-deductible goodwill amortization and state income taxes.</P>
<P>&nbsp;</P>
<I><P>Liquidity and Capital Resources</P>
</I><P>Cash provided by operating activities was $8.5 million for the six month period ended October 31, 2000 compared to cash provided by operating activities of $14.9 million for the comparable period of 1999. The decrease in cash provided by operating
activities was due primarily to lower earnings and significant reductions in accounts payable.</P>
<P ALIGN="JUSTIFY">Cash provided by investing activities was $4.1 million for the six month period ended October 31, 2000 compared to $5.7 million used in investing activities for the comparable period in 1999. The cash provided by investing activities
resulted from the sales of equipment and other long-term assets in the Company's towing services segment.</P>
<P>Cash used in financing activities was $8.7 million for the six month period ended October&nbsp;31, 2000 and $8.6 million for the comparable period in the prior year. The cash was used primarily to reduce the Company's line of credit and other
outstanding long-term debt and capital leases.</P>
<P>At October 31, 2000, the Company had a credit facility of $140.0 million (the "Credit Facility"), which consists of a revolving credit facility of $115.0 million and $25.0 million of borrowings under a term loan. The Credit Facility is used for
working capital and other general corporate purposes. At the end of the second quarter, $119.0 million was outstanding under the Credit Facility. Under the terms of the Credit Facility agreement, total availability under the facility was reduced to $127.0
million on November 30, 2000. The agreement also provides that availability under the revolving credit facility will be based on a formula of eligible accounts receivable, inventory, and fixed assets. </P>
<P>Borrowings under the revolving credit facility bear interest at LIBOR plus an applicable margin that varies from 2.50% to 4.75% based on a pricing grid that is a function of the ratio of the Company's debt to earnings before income taxes,
depreciation, and amortization (as defined). Borrowings under the term loan bear interest at LIBOR plus an applicable margin which increases from 5.00% to 6.00% on December 1, 2000 and to 8.00% on February 1, 2001. The Company will be required to pay
certain fees on the unused portion of the credit facility and the outstanding balance of the term loan. </P>
<P>The Credit Facility, by its terms, currently matures on August 1, 2001. Accordingly, the entire amount outstanding under the Credit Facility has been included in current liabilities at October 31, 2000. The Company has been engaged in discussions with
its lenders regarding an extension of the maturity date, and intends to continue those discussions. In addition, the Company is currently engaged in discussion with other institutions to replace the Credit Facility in the event that the Company is unable
to ready commercially reasonable terms with its current lenders. The Company's ability to meet its principal payment obligations at the August 2001 maturity will depend on whether it can arrange a refinancing, restructuring or extension of such facility
on satisfactory terms within that time frame, but there is no assurance that the Company will be able to do so.</P>
<P>The Credit Facility is secured by all assets of the Company, including real property and vehicles. The Credit Facility contains restrictions on capital expenditures, requirements related to monthly collateral reporting, maintaining minimum quarterly
levels of earnings before income taxes, depreciation, and amortization and limits on the ratio of total funded indebtedness to earnings before income taxes, depreciation, and amortization </P>
<P>The Credit Facility was amended in December 2000 to reduce the maximum availability under the Credit Facility to $125.0 million effective December 15, 2000, and to $119.0 million effective January 31, 2001. In connection with the amendment, the banks
waived the Company's failure to comply with minimum quarterly earnings before income taxes, depreciation, and amortization requirements as well as limiting quarterly capital expenditures. The amendment did not extend the maturity of the Credit Facility
beyond its scheduled August 2001 maturity date.</P>
<P>The Credit Facility requires that there be certain mandatory prepayments of the Credit Facility and reductions of the revolving credit facility if the Company or any of its subsidiaries make certain asset dispositions, debt offerings or equity
offerings. The amended credit facility also requires that the Company retain a financial advisor, which it engaged during the second quarter of fiscal 2001, to advise in the evaluation of possible sales of assets.</P>
<P>Excluding the capital commitments set forth above, the Company has no other material capital commitments. The Company believes that cash on hand, cash flows from operations and unused borrowing capacity under the Credit Facility will be sufficient to
fund its operating needs, capital expenditures and debt service requirements for the next fiscal year, assuming that the Company is able to refinance, restructure, or extend the Credit Facility prior to maturity in August 2001. There can be no assurance
that such financing, restructuring, or extension will be available or that the related terms and conditions will be acceptable to the Company.</P>
<P>&nbsp;</P>
<I><P>Recent Accounting Pronouncements</P>
</I><P>In June 1998, the Financial Accounting Standards Board ("FASB") issued SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities," effective for fiscal years beginning after June 15, 1999. In June 1999, the FASB issued SFAS No.
137, which delayed the effective date of SFAS No. 133 until June 15, 2000. SFAS No. 133 establishes accounting and reporting standards requiring that every derivative instrument (including certain derivative instruments embedded in other contracts) be
recorded in the balance sheet as either an asset or liability measured at its fair value. SFAS No. 133 requires that changes in the derivative's fair value be recognized currently in earnings unless specific hedge accounting criteria are met. Special
accounting for qualifying hedges allows a derivative's gains and losses to offset related results on the hedged item in the income statement, and requires that a company must formally document, designate, and assess the effectiveness of transactions that
receive hedg

e accounting.</P>
<P>The Company has not yet quantified the impact of adopting SFAS No. 133 on its financial statements and has not determined the timing of or method of adoption of SFAS No. 133. However, SFAS No. 133 could increase volatility in earnings and other
comprehensive income.</P>
<I><P>&nbsp;</P></DIR>
</DIR>

</I><B><P>PART II.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OTHER INFORMATION</P><DIR>
<DIR>

<P ALIGN="JUSTIFY">Item 1.<A NAME="legalproceedins">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legal Proceedings</A></P>
</B><P>In January 1998, the Company received a letter from the Antitrust Division of the Department of Justice (the "Division") stating that it was conducting a civil investigation covering "competition in the tow truck industry". The letter asked that
the Company preserve its records related to the tow truck industry, particularly documents related to sales and prices of products and parts, acquisition of other companies in the industry, distributor relations, patent matters, competition in the
industry generally, and activities of other companies in the industry. In March 1998, the Company received a Civil Investigative Demand ("CID") issued by the Division as part of its continuing investigation of whether there are, have been or may be
violations of the federal antitrust statutes in the tow truck industry. Under this CID, the Company produced information and documents to assist in the investigation, and corresponded and met with the Division concerning the investigation. In February
2000, the Company rea

ched an agreement with the Division pursuant to which the Company entered into a Stipulation and proposed consent Judgment with the Division, which were filed with the United States District Court for the District of Columbia (the "Court") simultaneously
with the Division's complaint. The complaint focused on the Company's acquisition of Vulcan in 1996 and Chevron in 1997, including the acquisition of their patents. The Company remains convinced that the acquisitions are entirely lawful and that this
position would be vindicated in a court of law. However, the Company believes it is in the best interest of its shareholders to conclude this matter rather than extending for an additional lengthy period what has already been a costly and time consuming
exercise. Under the terms of the proposed consent Judgment, the Company will offer non-exclusive royalty-bearing licenses to certain of the Company's key patents to all tow truck and car carrier manufacturers. In connection with offering licenses, the
Company wil

l notify the government periodically of companies that have obtained a license. The Company will also have reporting requirements related to future acquisitions of tow truck and car carrier manufacturers. The Division has filed a Motion for Entry of
Proposed Final Judgment, in which it states that the necessary procedural steps have been completed and that the Court should find that the proposed Judgment is in the public interest. By order dated December 12, 2000, the Court granted the Division's
Motion and entered the final judgment.</P>
<P>During September, October and November 1997, five lawsuits were filed by certain persons who seek to represent a class of shareholders who purchased shares of the Company's common stock during the period from either October 15 or November 6, 1996 to
September 11, 1997. Four of the suits were filed in the United States District Court for the Northern District of Georgia. The remaining suit was filed in the Chancery Court of Hamilton County, Tennessee. In general, the individual plaintiffs in all of
the cases allege that they were induced to purchase the Company's common stock on the basis of allegedly actionable misrepresentations or omissions about the Company and its business and, as a result, were thereby damaged. Four of the complaints assert
claims under Sections 10(b) and 20 of the Securities Act of 1934. The complaints name as the defendants the Company and various of its present and former directors and officers. The plaintiffs in the four actions which involved claims in Federal Court
under the Se

curities Exchange Act of 1934 have consolidated those actions. The Company filed a motion to dismiss in the consolidated case which was granted in part and denied in part. The proposed class was certified by order dated May 27, 1999. All fact discovery
was completed. On or about May 5, 2000, the Company filed a motion seeking summary judgment in favor of all defendants on all remaining claims asserted by the plaintiffs. The plaintiffs also filed a partial summary judgment motion on or about May 5, 2000
on two of its claims. By order dated November 20, 2000, the Court granted the Company's summary judgment motion as to all counts and denied the plantiff's motion in full. The Company filed a motion to dismiss in the Tennessee case which was granted in its
entirety. The plaintiffs in that case, with permission from the Chancery Court, amended and refiled their complaint, which was dismissed with prejudice by order of the Chancery Court dated March 11, 1999. On April 4, 1999 counsel for the Plaintiffs filed
a no

tice of appeal with the Tennessee Court of Appeals, which was briefed and argued by the parties. On March 31, 2000, the Tennessee Court of Appeals affirmed the decision of the Chancery Court dismissing the case in its entirety. On May 26, 2000, counsel
for the plaintiffs filed an application for permission to appeal to the Tennessee Supreme Court, which the Company opposed. On November 21, 2000, the Supreme Court of Tennessee denied the plaintiff's application to appeal. These favorable rulings conclude
all pending shareholder litigation brought against the Company.</P>
<P>In addition to the shareholder litigation described above, the Company is, from time to time, a party to litigation arising in the normal course of its business. The ultimate disposition of such matters cannot be determined presently, but will not, in
the opinion of management, based in part on the advice of legal counsel, have a material adverse effect on the financial position or results of operations of the Company.</P></DIR>
</DIR>

<B><P><A NAME="submissionofmatterstoavoteofsecholders">Item 4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Submission of Matters to a Vote of Security Holders</A></P><DIR>
<DIR>

</B><P>The Annual Meeting of Shareholders was held on Monday, September 11, 2000 in Norcross, Georgia, at which the following matter was submitted to a vote of the shareholders:</P>
<P>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Votes cast for or withheld regarding the election of five (5) Directors for a term of one (1) year were as follows:</P></DIR>
</DIR>

<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 WIDTH=469>
<TR><TD WIDTH="50%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="24%" VALIGN="TOP">
<U><P ALIGN="CENTER">FOR</U></TD>
<TD WIDTH="26%" VALIGN="TOP">
<U><P ALIGN="CENTER">WITHHELD</U></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<P>Jeffrey I. Badgley</TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER">33,905,844</TD>
<TD WIDTH="26%" VALIGN="TOP">
<P ALIGN="CENTER">811,468</TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<P>A. Russell Chandler III</TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER">33,898,180</TD>
<TD WIDTH="26%" VALIGN="TOP">
<P ALIGN="CENTER">819,132</TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<P>Paul E. Drack</TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER">33,896,580</TD>
<TD WIDTH="26%" VALIGN="TOP">
<P ALIGN="CENTER">820,732</TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<P>William G. Miller</TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER">33,512,962</TD>
<TD WIDTH="26%" VALIGN="TOP">
<P ALIGN="CENTER">1,204,350</TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP">
<P>Richard H. Roberts</TD>
<TD WIDTH="24%" VALIGN="TOP">
<P ALIGN="CENTER">33,901,780</TD>
<TD WIDTH="26%" VALIGN="TOP">
<P ALIGN="CENTER">815,532</TD>
</TR>
</TABLE>
</CENTER></P>

<B><P><A NAME="exhibitsandreportsonform8k"></P>
<P>&nbsp;</P>
<P>Item 6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exhibits and Reports on Form 8-K</A></P></B>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=590>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>(a)</TD>
<TD WIDTH="89%" VALIGN="TOP">
<U><P>Exhibits.</U></TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="89%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>

<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="89%" VALIGN="TOP">
<P>Exhibit 10/58 - Amendment No. 6 to Credit Agreement</TD>
</TR>

<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="89%" VALIGN="TOP">
<P>Exhibit 27 - Financial Data Schedule (For SEC use only)</TD>
</TR>



<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="89%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="89%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="11%" VALIGN="TOP">
<P>(b)</TD>
<TD WIDTH="89%" VALIGN="TOP">
<P>Reports on Form 8-K - No reports on Form 8-K were filed by the Company during the second quarter of the fiscal year.</TD>
</TR>
</TABLE>

<P ALIGN="CENTER"><HR></P>
<B><P>&nbsp;</P>
<P ALIGN="CENTER">SIGNATURES</P>
</B><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, Miller Industries, Inc. has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.</P>
<P ALIGN="CENTER"></P>
<TABLE CELLSPACING=0 BORDER=0 WIDTH=714>
<TR><TD WIDTH="55%" VALIGN="TOP">
<P><FONT FACE="Book Antiqua" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="45%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>MILLER INDUSTRIES, INC.</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="45%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="45%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>By:&nbsp;&nbsp;<U>/s/ J. Vincent Mish&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="45%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J. Vincent Mish</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="45%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vice President and</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="45%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;</FONT></TD>
<TD WIDTH="45%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="55%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>Date:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 15, 2000</FONT></TD>
<TD WIDTH="45%" VALIGN="TOP">
<FONT FACE="Book Antiqua" SIZE=2><P>&nbsp;</FONT></TD>
</TR>
</TABLE>

</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.58
<SEQUENCE>2
<FILENAME>amd6agr.txt
<DESCRIPTION>EXHIBIT 10-58 AMENDMENT TO CREDIT AGREEMENT
<TEXT>

                       AMENDMENT NO. 6 TO CREDIT AGREEMENT
                       -----------------------------------

         THIS AMENDMENT NO. 6 TO CREDIT AGREEMENT (this  "Amendment  Agreement")
is made and entered into as of the 14th day of December,  2000, and effective as
provided in SECTION 6 hereof, by and among MILLER INDUSTRIES,  INC., a Tennessee
corporation ("Miller"),  and MILLER INDUSTRIES TOWING EQUIPMENT INC., a Delaware
corporation and wholly owned subsidiary of Miller ("Miller  Towing") (Miller and
Miller  Towing  may be  referred  to herein  individually  as a  "Borrower"  and
together  as the  "Borrowers"),  EACH OF THE  GUARANTORS  SIGNATORY  HERETO (the
"Guarantors"), BANK OF AMERICA, N.A., SUCCESSOR TO NATIONSBANK, N.A., a national
banking association  organized and existing under the laws of the United States,
as agent  ("Agent") for the Lenders under the Credit  Agreement and the Lenders.
Unless the context otherwise requires, all capitalized terms used herein without
definition shall have the definitions provided therefor in the Credit Agreement.

                              W I T N E S S E T H:
                              --------------------

         WHEREAS,  the Agent,  the Lenders and the  Borrowers  have entered into
that  certain  Credit  Agreement  dated as of January  30,  1998,  as amended by
Amendment  No.  1 to  Credit  Agreement  dated  as of  January  31,  1998 and by
Amendment  No.  2 to  Credit  Agreement  dated  as of  October  30,  1998 and by
Amendment No. 3 to Credit  Agreement  dated as of July 27, 1999 and by Amendment
No. 4 to Credit  Agreement dated as of August 13, 1999 and by Amendment No. 5 to
Credit  Agreement  dated as of July 26,  2000 (as  hereby  and from time to time
amended, supplemented,  modified or replaced, the "Credit Agreement"),  pursuant
to  which  the  Lenders  have  agreed  to make and have  made  available  to the
Borrowers a credit facility  including a revolving credit facility with a letter
of credit sublimit and a swing line sublimit; and

         WHEREAS,  the  Borrowers  have  requested  that the terms of the Credit
Agreement be amended in the manner set forth herein,  and that certain  Defaults
under the Credit Agreement be waived, and the Agent and the Lenders,  subject to
the terms and  conditions  contained  herein,  have agreed to such amendment and
waiver, to be effective as provided herein;

         WHEREAS,  the  Borrowers,  the Agent,  the Lenders  and the  Guarantors
acknowledge that the terms of this Amendment  Agreement  constitute an amendment
and modification of, and not a novation of, the Credit Agreement;

         NOW,  THEREFORE,  in  consideration  of the  mutual  covenants  and the
fulfillment  of the  conditions  set forth herein,  the parties  hereby agree as
follows:

         1. DEFINITIONS. The term "Credit Agreement" or "Agreement" (as the case
may be) as used herein and in the Loan Documents shall mean the Credit Agreement
as hereby amended and modified,  and as further  amended,  modified  replaced or
supplemented from time to time as permitted thereby.

         2.  AMENDMENTS TO AND  RESTATEMENTS  OF TERMS OF THE CREDIT  AGREEMENT.
Subject to the  conditions  hereof,  the  Credit  Agreement  is hereby  amended,
effective as of the date hereof, as follows:
<PAGE>

         (A) THE  FOLLOWING  DEFINITIONS  ARE HEREBY ADDED TO SECTION 1.1 OF THE
CREDIT AGREEMENT IN ALPHABETICAL POSITION AND SHALL READ AS FOLLOWS:

               "Amendment No. 6" means Amendment No. 6 to Credit Agreement dated
as of December 14, 2000 by and among the Borrowers,  the  Guarantors,  the Agent
and the Lenders.

               "Independent  Distributors" means any and all distributors of the
Borrowers which do not constitute Subsidiaries of Miller.

               "Total Facility  Commitment" means the sum of the Total Revolving
Credit Commitment and the Total Term Loan Commitment.

               (B) SECTION  2.7(B) OF THE CREDIT  AGREEMENT IS HEREBY AMENDED BY
ADDING ROMAN NUMERATE (I) AFTER "ADDITIONAL  MANDATORY  REDUCTIONS" AND ADDING A
NEW PARAGRAPH WHICH SHALL READ AS FOLLOWS:

               (ii) The Total Facility  Commitment  shall be  automatically  and
permanently reduced to the following amounts at the following dates (but only if
and to the extent such  reductions  have not already been achieved as the result
of any reduction of the Total Revolving  Credit  Commitment  pursuant to SECTION
2.3 or 2.7(a) or the Total Term Loan  Commitment  pursuant  to  SECTION  2A.7 or
2A.8):

                  (A)      December 15, 2000              --       $125,000,000

                  (B)      January 31, 2001               --       $119,000,000

Each  mandatory  reduction of the Total Facility  Commitment as described  above
shall be accompanied by payment of Revolving Loans and/or Term Loan Outstandings
to the  extent  that the  principal  amount of  Outstandings  exceeds  the Total
Facility  Commitment  after  giving  effect to such  reductions  together,  with
accrued  and unpaid  interest  on the  amount  prepaid;  PROVIDED  that any such
prepayments  shall be applied first to Term Loan  Outstandings  and then, in the
event and to the extent that all Term Loan Outstandings  shall have been repaid,
to Revolving Credit Outstandings.

               (C) SECTION  2A.9 OF THE CREDIT  AGREEMENT  IS HEREBY  AMENDED BY
ADDING ROMAN NUMERATE (I) AFTER  "ADDITIONAL  MANDATORY  COMMITMENT  REDUCTIONS"
THERETO, AND ADDING A NEW PARAGRAPH WHICH SHALL READ AS FOLLOWS:

               (ii) The Total Facility  Commitment  shall be  automatically  and
permanently reduced to the following amounts at the following dates (but only if
and to the extent such  reductions  have not already been achieved as the result
of any reduction of the Total Revolving  Credit  Commitment  pursuant to SECTION
2.3 or 2.7(a) or the Total Term Loan  Commitment  pursuant  to  Section  2A.7 or
2A.8):

                  (A)      December 15, 2000             --       $125,000,000

                  (B)      January 31, 2001              --       $119,000,000


                                       2
<PAGE>

Each  mandatory  reduction of the Total Facility  Commitment as described  above
shall be accompanied by payment of Revolving Loans and/or Term Loan Outstandings
to the  extent  that the  principal  amount of  Outstandings  exceeds  the Total
Facility Commitment after giving effect to such reductions together with accrued
and unpaid  interest on the amount prepaid;  PROVIDED that any such  prepayments
shall be applied first to Term Loan  Outstandings  and then, in the event and to
the extent that all Term Loan Outstandings  shall have been repaid, to Revolving
Credit Outstandings.

         (D) SECTION 8.1 OF THE CREDIT  AGREEMENT IS HEREBY AMENDED BY RESTATING
SUBSECTION (D) IN ITS ENTIRETY AS FOLLOWS, DELETING THE WORD "AND" AT THE END OF
SUBSECTION (F),  DELETING THE PERIOD (.) AT THE END OF SUBSECTION (G) AND ADDING
A SEMICOLON  (;) THERETO,  AND ADDING A NEW  SUBSECTION  (H) WHICH SHALL READ AS
FOLLOWS:

         (d) as soon as practical and in any event within thirty (30) days after
the end of each month,  deliver to the Agent and each  Lender a  Borrowing  Base
Certificate in the form of Exhibit N, together with an accounts receivable aging
report and an inventory report in form and substance reasonably  satisfactory to
the Agent and the  Lenders  and such other  information  and  schedules  related
thereto as reasonably required by the Agent or the Lenders;

         (h) as soon as practical and in any event within thirty (30) days after
the end of each month, such financial  information as shall be required by Agent
and Lenders in their reasonable discretion.

         (F) SECTIONS 9.1(A) AND (C) OF THE CREDIT  AGREEMENT ARE HEREBY AMENDED
AND RESTATED IN THEIR ENTIRETY AS FOLLOWS:

         (a) Capital Expenditures.  Make or become permitted to make (i) Capital
Expenditures  in excess of  $4,000,000  in the  aggregate  in any Fiscal Year of
Miller  ending after April 30, 2000, or (ii) Capital  Expenditures  in excess of
$1,500,000  in any  fiscal  quarter  ending  on or after the  effective  date of
Amendment  No. 6 (on a  non-cumulative  basis,  with the effect that amounts not
expended in any period may not be carried forward to any other period).

         (c) Minimum Consolidated EBITDA.  Permit Consolidated EBITDA to be less
than the following amounts for the following periods:

                                                         Consolidated EBITDA
                           PERIOD                       MUST NOT BE LESS THAN
                           ------                       ---------------------

         Fiscal quarter ending October 31, 2000:          $4,600,000

         Fiscal quarter ending January 31, 2001:          $8,500,000

         Fiscal quarter ending April 30, 2001:            $10,800,000

         Each Fiscal quarter thereafter:                  $10,800,000

         (G) SECTION 9.3 OF THE CREDIT  AGREEMENT IS HEREBY  AMENDED BY DELETING
THE WORD "AND" AT THE END OF SUBSECTION (G),  DELETING THE PERIOD (.) AT THE END
OF SUBSECTION (H) AND ADDING A SEMICOLON (;) THERETO, AND ADDING NEW SUBSECTIONS
(I), (J) AND (K) WHICH SHALL READ AS FOLLOWS:


                                       3
<PAGE>

         (i) Liens arising in connection with floor plan financing  arrangements
constituting Debt Offerings permitted under SECTION 9.4(G);  provided such liens
are  limited to the  property  subject to such  financing  arrangements  and the
proceeds thereof;

         (j) Liens arising in connection with inventory  repurchase  obligations
permitted under SECTION 9.4 (I); provided such liens are limited to the property
subject to such financing arrangements and the proceeds thereof; and

         (k) Liens arising in connection  with floor plan  financings  permitted
under Section 9.4 (J);  provided such liens are limited to the property  subject
to such financing arrangements and the proceeds thereof.

         (H) SECTION 9.4 OF THE CREDIT  AGREEMENT IS HEREBY  AMENDED BY DELETING
THE WORD "AND" AT THE END OF SUBSECTION (F),  DELETING THE PERIOD (.) AT THE END
OF SUBSECTION (G) AND ADDING A SEMICOLON (;) THERETO, AND ADDING NEW SUBSECTIONS
(H), (I) AND (J) WHICH SHALL READ AS FOLLOWS:

         (h) guaranty  obligations of Miller  incurred in the course of business
directly  or  indirectly  guaranteeing   Indebtedness  of  any  purchaser  of  a
Designated  Asset disposed of in an Asset  Disposition  permitted  under SECTION
9.5(F); provided that the amount of such obligations shall not exceed $3,500,000
in the aggregate at any time from the effective  date of Amendment No. 6 through
the Stated Termination Date;

         (i)  inventory  repurchase  obligations  incurred with respect to floor
plan financing for  Independent  Distributors;  PROVIDED that the amount of such
obligations shall not exceed $30,000,000 in the aggregate at any time; and

         (j) partial  recourse  obligations  of Miller  incurred with respect to
floor plan financing for Independent  Distributors;  PROVIDED that the amount of
such exposure shall not exceed $1,000,000 in the aggregate at any time.

         (I) EXHIBIT M OF THE CREDIT AGREEMENT IS HEREBY AMENDED AND RESTATED IN
ITS ENTIRETY AS ATTACHED HERETO AS EXHIBIT M.

         3. CONTINUING  EFFECT OF LOAN DOCUMENTS.  (a) Each Guarantor hereby (i)
consents and agrees to the  amendments to the Credit  Agreement set forth herein
and (ii)  confirms  its  joint  and  several  guarantee  of  payment  of all the
Guarantors' Obligations pursuant to the Guaranty.

         (b) Each of the Borrowers and Guarantors  hereby  acknowledge and agree
that each of the Security  Instruments  (i) remains in full force and effect and
is hereby  reaffirmed,  (ii)  continues to secure all of the  Obligations of the
Borrowers  and  the  Guarantors'   Obligations  pursuant  to  the  Guaranty,  as
applicable,  and (iii) notwithstanding  anything to the contrary in any Security
Instrument, shall remain in effect until the Facility Termination Date.

         4.  REPRESENTATIONS  AND  WARRANTIES.  Each  of  the  Borrowers  hereby
certifies that:

                                       4
<PAGE>

         a. The  representations and warranties made by the Borrowers in ARTICLE
VII of the Credit Agreement are true and correct in all material respects on and
as of the date hereof,  with the same effect as though such  representations and
warranties  were made on the date hereof,  except that the financial  statements
referred to in SECTION  7.6(A)  shall be those most  recently  furnished to each
Lender pursuant to SECTIONS 8.1(A) AND (B) of the Credit Agreement.

         b. The  Borrowers and each  Subsidiary  have the power and authority to
execute and perform this Amendment  Agreement and have taken all action required
for the lawful execution, delivery and performance thereof.

         c.  There  has  been  no  material  adverse  change  in  the  business,
properties,  prospects,  operations  or condition,  financial or  otherwise,  of
Miller and its Subsidiaries  since the date of the most recent financial reports
of Miller received by each Lender under SECTION 8.1 of the Agreement; and

         d. No event has  occurred  and no  condition  exists which has not been
waived which, upon the consummation of the transaction contemplated hereby, will
constitute a Default or an Event of Default on the part of the  Borrowers  under
the Credit  Agreement or any other Loan Document either  immediately or with the
lapse of time or the giving of notice, or both.

         5. FEES. In addition to any fees  otherwise  provided for in the Credit
Agreement,  the  Borrowers  hereby agree to pay an up-front  amendment  fee (the
"Up-front Fee") equal to 0.10% of the Total Facility Commitment, due and payable
on the effective date of this Amendment  Agreement to the Agent for the pro rata
benefit of the Lenders based on their  Applicable  Commitment  Percentages,  and
which fee shall be fully earned when due and payable and not refundable.

         6. CONDITIONS TO  EFFECTIVENESS.  This Amendment shall not be effective
until the Agent has received to its satisfaction each of the following:

         a. six (6)  counterparts  of this Amendment  Agreement  executed by the
Borrowers, the Guarantors, the Agent and the Lenders;

         b.  payment  of all  fees  then due to the  Agent  and the  Lenders  in
connection with the execution and delivery of this Amendment,  including but not
limited to (i) the  Up-front  Fee in the amount of  $125,000,  (ii) that certain
Term Loan Facility Fee described in SECTION 2A.12 of the Credit  Agreement,  due
and payable on November 30, 2000,  and (iii) fees and expenses of counsel to the
Agent and the Lenders;

         c. such other  documents,  instruments  and  certificates as reasonably
requested by the Agent.

         Upon the  satisfaction  of the  conditions set forth in this SECTION 6,
this  Amendment  Agreement  shall be effective  as of the date hereof  except as
otherwise provided in SECTION 15, PROVIDED that the amendment and restatement of
SECTION 9.1(C) contained in SECTION 2(F) hereof shall be effective as of October
31, 2000.


                                       5
<PAGE>

         7. ENTIRE  AGREEMENT.  This  Amendment  Agreement sets forth the entire
understanding  and  agreement  of the parties  hereto in relation to the subject
matter hereof and supersedes  any prior  negotiations  and agreements  among the
parties relative to such subject matter. No promise,  condition,  representation
or  warranty,  express or  implied,  not  herein set forth  shall bind any party
hereto,  and  not  one of  them  has  relied  on any  such  promise,  condition,
representation or warranty. Each of the parties hereto acknowledges that, except
as  otherwise  expressly  stated  herein,  no  representations,   warranties  or
commitments,  express or implied, have been made by any party to the other. None
of the terms or conditions of this Amendment Agreement may be changed, modified,
waived  or  canceled  orally or  otherwise,  except as  provided  in the  Credit
Agreement.

         8. FULL FORCE AND EFFECT OF  AGREEMENT.  Except as hereby  specifically
amended,  modified or  supplemented,  the Credit  Agreement and all of the other
Loan  Documents  are hereby  confirmed  and  ratified in all  respects and shall
remain in full force and effect according to their respective terms.

         9.  COUNTERPARTS.  This  Amendment  Agreement may be executed in one or
more  counterparts,  each of which shall be deemed an original  but all of which
together shall constitute one and the same instrument.

         10. GOVERNING LAW. This Agreement shall in all respects be governed by,
and construed in accordance with, the laws of the State of Georgia.

         11.  ENFORCEABILITY.  Should any one or more of the  provisions of this
Amendment  Agreement be determined to be illegal or  unenforceable  as to one or
more of the parties  hereto,  all other  provisions  nevertheless  shall  remain
effective and binding on the parties hereto.

         12. CREDIT  AGREEMENT.  All  references in any of the Loan Documents to
the "Credit Agreement" shall mean the Credit Agreement as amended hereby.

         13.  RELEASE.  Borrowers and Guarantors  acknowledge  that they have no
existing defense,  counterclaim,  offset, right of recoupment,  cross-complaint,
claim or demand of any kind or nature  whatsoever that can be asserted to reduce
or eliminate  all or any part of their  respective  liability to pay in full the
indebtedness  outstanding under the Credit Agreement and the Notes and the other
Loan Documents.  In consideration for the execution of this Amendment Agreement,
Borrowers and Guarantors do hereby  release and forever  discharge the Agent and
the Lenders and all of their officers, directors,  employees and agents from any
and all actions, causes of action, debts, dues, claims, demands, liabilities and
obligations of every kind and nature, both in law and equity,  known or unknown,
which  might be asserted  against  the Agent or the Lenders  based on actions or
events  occurring  on or  prior to the date of this  Amendment  Agreement.  This
release  applies  to all  matters  arising  out  of or  relating  to the  Credit
Agreement and the other Loan  Documents  and the lending,  deposit and borrowing
relationships between the Borrowers, the Guarantors,  the Agent and the Lenders,
including the administration, collateralization, and funding thereof.

         14.  NO  NOVATION.   This  Agreement  is  given  as  an  amendment  and
modification  of, and not as a payment of, the Obligations of the Borrower under
the Credit  Agreement and is not intended to constitute a novation of the Credit
Agreement.  All of the  indebtedness,  liabilities and



                                       6
<PAGE>

obligations   owing  by  the  Borrowers  under  the  Credit  Agreement  and  the
Guarantor's obligations under the Guaranties,  as applicable,  shall continue to
be secured by the  "Collateral"  as  defined  in the  Credit  Agreement  and the
Borrowers and the  Guarantors  acknowledge  and agree that the  "Collateral"  as
defined  in the Credit  Agreement  shall  continue  to  constitute  "Collateral"
hereunder and remains  subject to a security  interest in favor of the Agent for
the  benefit  of itself  and the  Lenders  and to secure  such  Obligations  and
Guarantors' Obligations.

         15. DEFAULT WAIVER. Effective as of October 31, 2000, the Agent and the
Lenders  hereby  waive  any  Default  or Event  of  Default  resulting  from any
violation  by the  Borrowers of any  provision  of Section  9.1(c) of the Credit
Agreement for the reporting period ending October 31, 2000.  Effective as of the
date  hereof,  the Agent and the  Lenders  hereby  waive any Default or Event of
Default  resulting  from the  Borrowers'  failure  to  timely  pay the Term Loan
Facility  Fee  required in SECTION  2A.12 of the Credit  Agreement.  This waiver
shall be a one-time  waiver  covering the periods  described  and limited to the
defaults  described,  and shall in no way serve to waive any  obligations of the
Borrowers other than as expressly set forth above.

         16. SUCCESSORS AND ASSIGNS.  This Amendment  Agreement shall be binding
upon and inure to the  benefit of each of the  Borrowers,  the  Lenders  and the
Agent and  their  respective  successors,  assigns  and  legal  representatives;
provided,  however, that the Borrowers,  without the prior consent of the Agent,
may not assign any rights, powers, duties or obligations hereunder.

         17.  EXPENSES.  Without  limiting the provisions of SECTION 12.5 of the
Credit  Agreement,  the Borrowers agree to pay to the Agent all reasonable costs
and expenses  (including without limitation legal fees and expenses) incurred or
arising in connection  with the  negotiation  and  preparation of this Amendment
Agreement.

                            [SIGNATURE PAGES FOLLOW]



                                       7
<PAGE>




         IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 6
to Credit Agreement to be duly executed by their duly authorized  officers,  all
as of the day and year first above written.

                                          BORROWERS:
                                          ----------

                                          MILLER INDUSTRIES, INC.


                                          By: ________________________________
                                          Name:_______________________________
                                          Title: _____________________________


                                          MILLER INDUSTRIES TOWING
                                          EQUIPMENT INC.


                                          By: ________________________________
                                          Name:_______________________________
                                          Title:______________________________


<PAGE>


                                       GUARANTORS:
                                       -----------

                                           ACKERMAN WRECKER SERVICE, INC.
                                           A-EXCELLENCE TOWING CO.
                                           ALL AMERICAN TOWING SERVICES,  INC.
                                           ALLIED GARDENS TOWING, INC.
                                           ALLIED TOWING AND RECOVERY, INC.
                                           ALTAMONTE TOWING, INC.
                                           ANDERSON TOWING SERVICE, INC.
                                           APACO, INC.
                                           ARROW WRECKER SERVICE, INC.
                                           A TO Z ENTERPRISES, INC.
                                           B&B ASSOCIATED INDUSTRIES, INC.
                                           B-G TOWING, INC.
                                           BEAR TRANSPORTATION, INC.
                                           BEATY TOWING & RECOVERY, INC.
                                           BERT'S TOWING RECOVERY
                                           CORPORATION
                                           BILL GERLOCK TOWING CO.
                                           BOB BOLIN SERVICES, INC.
                                           BOB'S AUTO SERVICE, INC.
                                           BOB VINCENT AND SONS WRECKER
                                           SERVICE, INC.
                                           BOULEVARD & TRUMBULL TOWING, INC.
                                           BREWER'S, INC.
                                           BRYRICH CORPORATION
                                           C&L TOWING SERVICES, INC.
                                           CAL WEST TOWING, INC.
                                           CEDAR BLUFF 24 HOUR TOWING, INC.
                                           CENTRAL VALLEY TOWING, INC.
                                           CENTURY HOLDINGS, INC.
                                           CHAD'S, INC.
                                           CHAMPION CARRIER CORPORATION
                                           CHEVRON, INC.
                                           CHICAGO METRO SERVICES, INC.
                                           CLARENCE CORNISH AUTOMOTIVE
                                           SERVICE, INC.
                                           CLEVELAND VEHICLE DETENTION
                                           CENTER, INC.
                                           COFFEY'S TOWING, INC.
                                           COLEMAN'S TOWING & RECOVERY, INC.
                                           COMPETITION WHEELIFT, INC.
                                           D.A. HANELINE, INC.
                                           DALLAS VEHICLE RECOVERY, INC.
                                           DICK'S TOWING & ROAD SERVICE, INC.
                                           DOLLAR ENTERPRISES, INC.
                                           DON'S TOWING, INC.
                                           DUGGER'S SERVICES, INC.

<PAGE>

                                           DUN-RITE TOWING, INC.
                                           DURU, INC.
                                           E.B.T., INC.
                                           EXPORT ENTERPRISES, INC.
                                           GARY'S TOWING & SALVAGE POOL, INC.
                                           GOLDEN WEST TOWING EQUIPMENT,
                                           INC.
                                           GOOD MECHANIC AUTO CO. OF
                                           RICHFIELD, INC.
                                           GREAT AMERICA TOWING, INC.
                                           GREG'S TOWING, INC.
                                           H&H TOWING ENTERPRISES, INC.
                                           HALL'S TOWING SERVICE, INC.
                                           HENDRICKSON TOWING, INC.
                                           H.M.R. ENTERPRISES, INC.
                                           INTERSTATE TOWING & RECOVERY, INC.
                                           JENKINS WRECKER SERVICE, INC.
                                           JENNINGS ENTERPRISES, INC.
                                           KAUFF'S, INC.
                                           KAUFF'S OF FT. PIERCE, INC.
                                           KAUFF'S OF MIAMI, INC.
                                           KAUFFS OF PALM BEACH, INC.
                                           KEN'S TOWING, INC.
                                           KING AUTOMOTIVE & INDUSTRIAL
                                           EQUIPMENT, INC.
                                           LANCE WRECKER SERVICE, INC.
                                           LAZER TOW SERVICES, INC.
                                           LEVESQUE'S AUTO SERVICE, INC.
                                           LEWIS WRECKER SERVICE, INC.
                                           LINCOLN TOWING ENTERPRISES, INC.
                                           M&M TOWING AND RECOVERY, INC.
                                           MAEJO, INC.
                                           MEL'S ACQUISITION CORP.
                                           MERL'S TOWING SERVICE, INC.
                                           MID AMERICA WRECKER & EQUIPMENT
                                           SALES, INC. OF COLORADO
                                           MIKE'S WRECKER SERVICE, INC.
                                           MILLER FINANCIAL SERVICES GROUP,
                                           INC.
                                           MILLER/GREENEVILLE, INC.
                                           MILLER INDUSTRIES DISTRIBUTING, INC.
                                           MILLER INDUSTRIES INTERNATIONAL,
                                           INC.
                                           MOORE'S SERVICE & TOWING, INC.
                                           MOORE'S TOWING SERVICE, INC.
                                           MOSTELLER'S GARAGE, INC.
                                           MURPHY'S TOWING, INC.
                                           OFFICIAL TOWING, INC.

<PAGE>

                                           O'HARE TRUCK SERVICE, INC.
                                           PETE'S A TOWING, INC.
                                           PIPES ENTERPRISES, INC.
                                           PRO-TOW, INC.
                                           PULLEN'S TRUCK CENTER, INC.
                                           PURPOSE, INC.
                                           RAR ENTERPRISES, INC.
                                           RANDY'S HIGH COUNTRY TOWING, INC.
                                           RAY HARRIS, INC.
                                           RMA ACQUISITION CORP.
                                           RRIC ACQUISITION CORP.
                                           RAY'S TOWING, INC.
                                           RECOVERY SERVICES, INC.
                                           RETRIEVER TOWING, INC.
                                           ROAD BUTLER, INC.
                                           ROAD ONE, INC.
                                           ROADONE EMPLOYEE SERVICES, INC.
                                           ROAD ONE INSURANCE SERVICES, INC.
                                           ROAD ONE SERVICE, INC.
                                           ROADONE SPECIALIZED
                                           TRANSPORTATION, INC.
                                           ROADONE TRANSPORTATION AND
                                           LOGISTICS, INC.
                                           RONNY MILLER WRECKER SERVICE INC.
                                           SANDY'S AUTO & TRUCK SERVICE, INC.
                                           SAKSTRUP TOWING, INC.
                                           SONOMA CIRCUITS, INC.
                                           SOUTHERN WRECKER CENTER, INC.
                                           SOUTHERN WRECKER SALES, INC.
                                           SOUTHWEST TRANSPORT, INC.
                                           SPEED'S AUTOMOTIVE, INC.
                                           SPEED'S RENTALS, INC.
                                           SROGA'S AUTOMOTIVE SERVICES, INC.
                                           SUBURBAN WRECKER SERVICE, INC.
                                           TEAM TOWING AND RECOVERY, INC.
                                           TED'S OF FAYVILLE, INC.
                                           TEXAS TOWING CORPORATION
                                           THOMPSON'S WRECKER SERVICE, INC.
                                           TOW PRO CUSTOM TOWING & HAULING,
                                           INC.
                                           TREASURE COAST TOWING, INC.
                                           TRUCK SALES & SALVAGE CO., INC.
                                           VRCHOTA CORPORATION
                                           VULCAN EQUIPMENT COMPANY, INC.
                                           WALKER TOWING, INC.
                                           WES'S SERVICE INCORPORATED
                                           WESTERN TOWING; MCCLURE/EARLEY
                                           ENTERPRISES, INC.
<PAGE>

                                           WHITEY'S TOWING, INC.
                                           WILTSE TOWING, INC.
                                           ZEBRA TOWING, INC.
                                           ZEHNER TOWING & RECOVERY, INC.



                                           By:  /s/ Frank Madonia
                                           Name:  Frank Madonia
                                           Title: Attorney-in-fact


<PAGE>


                                        AGENT AND LENDERS:

                                        BANK OF AMERICA, N.A.
                                        SUCCESSOR TO NATIONSBANK, N.A.,
                                        as Agent for the Lenders and as a Lender

                                        By:  /s/ John P. M. Datton
                                        Name:  John P. M. Datton
                                        Title:  VP



                                        WACHOVIA BANK, N.A.

                                        By:  /s/ unreadable
                                        Name:  unreadable
                                        Title: SVP


                                        AMSOUTH BANK, FORMERLY KNOWN AS
                                        FIRST AMERICAN NATIONAL BANK

                                        By:  /s/ M. Rex Hamilton
                                        Name: M. Rex Hamilton
                                        Title: Commercial Banking Officer

                                       SUNTRUST BANK

                                        By: /s/ Allen K. Oakley
                                        Name: Allen K. Oakley
                                        Title: Managing Director



<PAGE>

                                    EXHIBIT M

                             Compliance Certificate

Bank of America, N.A., successor
  to NationsBank, N.A.
Independence Center, 15th Floor
NC1-001-15-04
Charlotte, North Carolina  28255
Attention: Agency Services
Telefacsimile:  (704) 386-9436


         Reference  is hereby made to the Credit  Agreement  dated as of January
30,  1998 (, as from time to time  amended,  restated,  modified,  replaced,  or
supplemented  the  "Agreement")  among  MILLER  INDUSTRIES,  INC.,  a  Tennessee
corporation  ("Miller"),  MILLER  INDUSTRIES  TOWING  EQUIPMENT INC., a Delaware
corporation  ("Miller Towing," and together with Miller,  the "Borrowers"),  the
Lenders (as defined in the  Agreement) and Bank of America,  N.A.,  successor to
NationsBank,   National  Association,   as  Agent  for  the  Lenders  ("Agent").
Capitalized  terms  used  but  not  otherwise  defined  herein  shall  have  the
respective meanings therefor set forth in the Agreement. The undersigned, a duly
authorized and acting Authorized  Representative,  hereby certifies to you as of
_____________, 20___ (the "Determination Date") as follows:

1.       Calculations


         A.       Compliance with Section 9.1(a): Capital Expenditures

                           Total for fiscal quarter: __________________
                           Total for Fiscal Year:    __________________

                  REQUIRED:       Maximum of $1,500,000 in any fiscal quarter.
                                  Maximum of $4,000,000 in any Fiscal Year.

         B.       Compliance with Section 9.1(b): Consolidated Funded
                  Total Indebtedness to Consolidated EBITDA
<TABLE>
<CAPTION>
<S>     <C>    <C>    <C>    <C>    <C>    <C>

                  1.       Consolidated Funded Total Indebtedness                       $__________
                  2.       Consolidated EBITDA for such FOUR-QUARTER PERIOD             $__________
                           a.       Consolidated Net Income               $__________
                           b.       Consolidated Interest Expense         $__________
                           c.       Taxes on income                       $__________
                           d.       Amortization                          $__________
                           e.       Depreciation                          $__________
                           f.       Non-recurring noncash
                                    restructuring charges (if approved)   $__________
<PAGE>

                           g.       Net gains on the collection of
                                    proceeds of life insurance
                                    policies                              $__________
                           h.       Write-ups of any assets other than
                                    permitted by FAS 16                   $__________
                           i.       Other extraordinary net gains
                                    or credits                            $__________

                           TOTAL ([a + b +c + d + e + f] -
                                  [g + h + i]  $__________

                  3.       Ratio of B.2 to B.1       ____ to ____

                  REQUIRED:         1.   LINE 3 MUST NOT BE MORE THAN 3.50
                                    TO 1.00 FOR FISCAL YEAR ENDING APRIL 30, 2001

                                    2.   LINE 3 MUST NOT BE MORE THAN 3.00
                                    TO 1.00 FOR ANY FOUR-QUARTER PERIOD ENDING APRIL 30, 2001

         C.       Compliance with Section 9.1(c): Minimum Consolidated EBITDA

                  1.       Consolidated EBITDA for such fiscal QUARTER just ended       $__________
                                                               -------
                           a.       Consolidated Net Income              $__________
                           b.       Consolidated Interest Expense        $__________
                           c.       Taxes on income                      $__________
                           d.       Amortization                         $__________
                           e.       Depreciation                         $__________
                           f.       Non-recurring noncash
                                    restructuring charges (if approved)  $__________
                           g.       Net gains on the collection of
                                    proceeds of life insurance
                                    policies                             $__________
                           h.       Write-ups of any assets other than
                                    permitted by FAS 16                  $__________
                           i.       Other extraordinary net gains
                                    or credits                           $__________

                           TOTAL ([a + b +c + d + e + f] -
                                  [g + h + i]  $__________

                  REQUIRED:         JULY 31, 2000: $3,800,000
                                    OCTOBER 31, 2000: $4,600,000
                                    JANUARY 31, 2001: $8,500,000
                                    APRIL 30, 2001: $10,800,000


                                      M-2

<PAGE>


         D.       Compliance with Section 9.4(a): Existing Indebtedness

                  1.       Existing Indebtedness                                        $__________

                  REQUIRED:    NOT MORE THAN $1,000,000 OUTSTANDING
                               AT ANY TIME


         E.       Compliance with Section 9.4(d): Purchase Money Indebtedness
                  and Capital Lease Obligations

                  1.       Purchase money and Capital Lease obligations                 $__________

                  REQUIRED:    NOT MORE THAN THE SUM OF (I) $300,000
                               AND (II) THE AGGREGATE AMOUNT OF PURCHASE
                               MONEY INDEBTEDNESS AND OBLIGATIONS UNDER
                               CAPITAL LEASES EXISTING AS OF THE DATE OF
                               AMENDMENT NO. 5.

         F.       Compliance with Section 9.4(e): Guarantees of Trade
                  Account Indebtedness

                  1.       Guarantees of trade account indebtedness                     $__________

                  REQUIRED:    NOT MORE THAN $1,000,000 OUTSTANDING
                               AT ANY TIME

         G.       Compliance with Section 9.4(h): Guarantees of Designated Asset Disposition

                  1.       Guarantees of Designated Asset Disposition                   $__________

                  REQUIRED:    NOT MORE THAN $3,500,000 OUTSTANDING
                               THROUGH APRIL 30, 2001

         H.       Compliance with Section 9.4(i): Guarantees of floor plan financing

                  1.       Guarantees of floor plan financing                           $__________

                  REQUIRED:    NOT MORE THAN $30,000,000 OUTSTANDING
                               AT ANY TIME

         I.       Compliance with Section 9.4(j): Guarantees of partial recourse obligations

                  1.       Guarantees of partial recourse obligations                   $__________

                  REQUIRED:    NOT MORE THAN $1,000,000 OUTSTANDING
                               AT ANY TIME
</TABLE>

                                      M-3
<PAGE>

2.       No Default

                  A.   Since   __________   (the   date  of  the  last   similar
         certification),  (a) the  Borrowers  have not defaulted in the keeping,
         observance,  performance or fulfillment of its obligations  pursuant to
         any of the Loan  Documents;  and (b) no  Default  or  Event of  Default
         specified in ARTICLE X of the Agreement has occurred and is continuing.

                  B. If a  Default  or  Event  of  Default  has  occurred  since
         __________ (the date of the last similar certification),  the Borrowers
         propose to take the  following  action with  respect to such Default or
         Event of Default: _______________________________


         -----------------------------------------------------------------.

         (NOTE,  if no Default or Event of Default  has  occurred,  insert  "Not
         Applicable").

         The  Determination  Date is the  date of the  last  required  financial
statements  submitted  to the  Lenders in  accordance  with  SECTION  8.1 of the
Agreement.


         IN WITNESS  WHEREOF,  I have executed this  Certificate this ___ day of
___________, 20___.



                                       By:
                                          -------------------------------------
                                                Authorized Representative
                                       Name:
                                            -----------------------------------
                                       Title:
                                             ----------------------------------


                                      M-4
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-27
<SEQUENCE>3
<FILENAME>milqfds.xfd
<DESCRIPTION>FINANCIAL DATA SCHEDULE
<TEXT>

<TABLE> <S> <C>

<ARTICLE>    5
<MULTIPLIER>    1,000

<S>                                                      <C>
<PERIOD-TYPE>                                          6-MOS
<PERIOD-START>                                   May-01-2000
<FISCAL-YEAR-END>                                Apr-30-2001
<PERIOD-END>                                     Oct-31-2000
<CASH>                                                 9,721
<SECURITIES>                                               0
<RECEIVABLES>                                         75,331
<ALLOWANCES>                                               0
<INVENTORY>                                           82,825
<CURRENT-ASSETS>                                     184,710
<PP&E>                                               102,243
<DEPRECIATION>                                        37,146
<TOTAL-ASSETS>                                       305,719
<CURRENT-LIABILITIES>                                190,899
<BONDS>                                                5,471
<PREFERRED-MANDATORY>                                      0
<PREFERRED>                                                0
<COMMON>                                                 467
<OTHER-SE>                                           108,824
<TOTAL-LIABILITY-AND-EQUITY>                         305,719
<SALES>                                              256,342
<TOTAL-REVENUES>                                     256,342
<CGS>                                                219,222
<TOTAL-COSTS>                                        255,122
<OTHER-EXPENSES>                                           0
<LOSS-PROVISION>                                           0
<INTEREST-EXPENSE>                                     7,150
<INCOME-PRETAX>                                      (5,930)
<INCOME-TAX>                                         (5,930)
<INCOME-CONTINUING>                                  (3,924)
<DISCONTINUED>                                             0
<EXTRAORDINARY>                                            0
<CHANGES>                                                  0
<NET-INCOME>                                         (3,924)
<EPS-BASIC>                                           (0.08)
<EPS-DILUTED>                                         (0.08)
<FN>
</FN>


</TABLE>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
