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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0001107049-01-500791.txt : 20020413
<SEC-HEADER>0001107049-01-500791.hdr.sgml : 20020413
ACCESSION NUMBER:		0001107049-01-500791
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20011031
FILED AS OF DATE:		20011217

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:			1231

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14124
		FILM NUMBER:		1815440

	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>mil1031q.htm
<DESCRIPTION>QUARTERLY REPORT
<TEXT>
<HTML>
<HEAD>
<META NAME="Generator" CONTENT="Microsoft FrontPage 4.0">
<TITLE>Prepared by Kilpatrick Stockton EDGAR Services</TITLE>
</HEAD>
<BODY LINK="#0000ff" VLINK="#800080">

<B><FONT SIZE=3><P ALIGN="CENTER"><FONT face="Times New Roman">SECURITIES AND EXCHANGE COMMISSION<BR>
WASHINGTON, DC 20549</FONT></P>
</FONT><FONT SIZE=5><P ALIGN="CENTER"><FONT face="Times New Roman">FORM 10-Q</FONT></P>
</FONT>
</B>
<FONT SIZE=3>
<P ALIGN="CENTER"><FONT face="Times New Roman">QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)<BR>
OF THE SECURITIES EXCHANGE ACT OF 1934<BR>
</FONT>
</FONT>
<FONT face="Times New Roman" size="2">
For the quarterly period ended October 31, 2001<BR>
Commission File No. 0-24298</FONT></P>
<FONT SIZE=3>
<P ALIGN="CENTER">&nbsp;</P>
<B><P ALIGN="CENTER"><FONT face="Times New Roman">MILLER INDUSTRIES, INC.<BR>
</FONT>
</B>
</FONT>
<FONT face="Times New Roman" size="2">(Exact name of registrant as specified in its charter)</FONT></P>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=492>
<TR><TD WIDTH="49%" VALIGN="TOP">
<B><FONT SIZE=3><P ALIGN="CENTER"><FONT face="Times New Roman">Tennessee</FONT></FONT></B></TD>
<TD WIDTH="51%" VALIGN="TOP">
<B><FONT SIZE=3><P ALIGN="CENTER"><FONT face="Times New Roman">62-1566286</FONT></FONT></B></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT face="Times New Roman" size="2">(State or other jurisdiction of</FONT></TD>
<TD WIDTH="51%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT face="Times New Roman" size="2">(I.R.S. Employer Identification No.)</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT face="Times New Roman" size="2">incorporation or organization)</FONT></TD>
<TD WIDTH="51%" VALIGN="TOP"><FONT face="Times New Roman" size="2">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="49%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="51%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>

<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=492>
<TR><TD WIDTH="52%" VALIGN="TOP">
<B><FONT SIZE=3><P ALIGN="CENTER"><FONT face="Times New Roman">8503 Hilltop Drive</FONT></FONT></B></TD>
<TD WIDTH="48%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP">
<B><FONT SIZE=3><P ALIGN="CENTER"><FONT face="Times New Roman">Ooltewah, Tennessee</FONT></FONT></B></TD>
<TD WIDTH="48%" VALIGN="TOP">
<B><FONT SIZE=3><P ALIGN="CENTER"><FONT face="Times New Roman">37363</FONT></FONT></B></TD>
</TR>
<TR><TD WIDTH="52%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT face="Times New Roman" size="2">(Address of principal executive offices)</FONT></TD>
<TD WIDTH="48%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT face="Times New Roman" size="2">(Zip Code)</FONT></TD>
</TR>
</TABLE>
</CENTER>

<P ALIGN="CENTER"><FONT face="Times New Roman" size="2">Registrant's telephone number, including area code:&nbsp;&nbsp;(423)&nbsp;&nbsp;238-4171</FONT></P>
<P><FONT size="2">&nbsp;</FONT><FONT face="Times New Roman" size="2">Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.</FONT></P>

<P ALIGN="CENTER"><FONT size="2"><FONT face="Times New Roman">YES&nbsp;&nbsp;<U><FONT COLOR="#ff0000">X
</FONT> </U><FONT COLOR="#ff0000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>
<FONT SIZE=2 COLOR="#ff0000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>NO __</FONT></FONT></P>

<P><FONT face="Times New Roman" size="2">The number of shares outstanding of the registrant's Common Stock, $.01 par value, as of November 30, 2001 was 9,341,436.</FONT></P>

<U><FONT SIZE=2>
<HR color="#000080" align="right" size="3">
</FONT>
</U>

<FONT SIZE=3>

<DIV STYLE="page-break-before: always; width: 669; height: 21">&nbsp;</DIV>

</FONT><U><FONT SIZE=2>
<P ALIGN="CENTER"><FONT face="Times New Roman"><IMG SRC="logo2.gif" WIDTH=156 HEIGHT=53></FONT></P>
</FONT>
</U>
<B><FONT SIZE=3>
<P ALIGN="CENTER"><FONT face="Times New Roman">INDEX</FONT></P>
</FONT>
</B>
<FONT SIZE=3>
</FONT>
<CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=636>
<TR><TD WIDTH="102" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD width="70" VALIGN="TOP" COLSPAN=2><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="357" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="99" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP">
<B><FONT SIZE=2><P><FONT face="Times New Roman">PART I.</FONT></FONT></B></TD>
<TD width="429" VALIGN="TOP" COLSPAN=3>
<B><FONT SIZE=2><P><FONT face="Times New Roman">FINANCIAL INFORMATION</FONT></FONT></B></TD>
<TD WIDTH="99" VALIGN="TOP">
<U><FONT SIZE=2><P ALIGN="CENTER"><FONT face="Times New Roman">Page Number</FONT></FONT></U></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD width="59" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="368" VALIGN="TOP" COLSPAN=2><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="99" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD width="59" VALIGN="TOP">
<FONT SIZE=2><P><FONT face="Times New Roman">Item 1.</FONT></FONT></TD>
<TD WIDTH="368" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P></FONT><FONT face="Times New Roman"><A HREF="#item1"><FONT SIZE=2>Financial Statements</FONT></A><U><FONT SIZE=2> (Unaudited)</U></FONT></U></FONT></TD>
<TD WIDTH="99" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD width="59" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="368" VALIGN="TOP" COLSPAN=2><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="99" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD width="59" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="368" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P></FONT><FONT face="Times New Roman"><A HREF="#condensedconsolidatedbalancesheets"><FONT SIZE=2>Condensed Consolidated Balance Sheets</FONT></A><FONT SIZE=2> - </FONT></FONT></TD>
<TD WIDTH="99" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD width="59" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="368" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P><FONT face="Times New Roman">October 31, 2001 and April 30, 2001</FONT></FONT></TD>
<TD WIDTH="99" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT face="Times New Roman">3</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD width="59" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="368" VALIGN="TOP" COLSPAN=2><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="99" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD width="59" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="368" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P></FONT><A HREF="#condensedconsolidatedstmtsofincome"><FONT SIZE=2 face="Times New Roman">Condensed Consolidated Statements of Operations</FONT></A></TD>
<TD WIDTH="99" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD width="59" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="368" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P><FONT face="Times New Roman">for the Three and Six Months Ended October 31, 2001 and 2000</FONT></FONT></TD>
<TD WIDTH="99" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT face="Times New Roman">4</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD width="59" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="368" VALIGN="TOP" COLSPAN=2><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="99" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD width="59" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="368" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P></FONT><A HREF="#condensedconsolidatedstmtsofcashflow"><FONT SIZE=2 face="Times New Roman">Condensed Consolidated Statements of Cash Flows</FONT></A></TD>
<TD WIDTH="99" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD width="59" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="368" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P><FONT face="Times New Roman">for the Six Months Ended October 31, 2001 and 2000</FONT></FONT></TD>
<TD WIDTH="99" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT face="Times New Roman">5</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD width="59" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="368" VALIGN="TOP" COLSPAN=2><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="99" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD width="59" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="368" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P></FONT><A HREF="#notestocondensedconsolfinancialstmts"><FONT SIZE=2 face="Times New Roman">Notes to Condensed Consolidated Financial</FONT></A></TD>
<TD WIDTH="99" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD width="59" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="368" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P><FONT face="Times New Roman">Statements</FONT></FONT></TD>
<TD WIDTH="99" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT face="Times New Roman">6</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD width="59" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="368" VALIGN="TOP" COLSPAN=2><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="99" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD width="59" VALIGN="TOP">
<FONT SIZE=2><P><FONT face="Times New Roman">Item 2.</FONT></FONT></TD>
<TD WIDTH="368" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P></FONT><A HREF="#MDandAfinancialconditionandresultofop"><FONT SIZE=2 face="Times New Roman">Management's Discussion and Analysis of Financial</FONT></A></TD>
<TD WIDTH="99" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD width="59" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="368" VALIGN="TOP" COLSPAN=2>
<U><FONT SIZE=2><P><FONT face="Times New Roman">Condition and Results of Operations</FONT></FONT></U></TD>
<TD WIDTH="99" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT face="Times New Roman">12</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD width="59" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="368" VALIGN="TOP" COLSPAN=2><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="99" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD width="59" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="368" VALIGN="TOP" COLSPAN=2><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="99" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD width="59" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="368" VALIGN="TOP" COLSPAN=2><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="99" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP">
<B><FONT SIZE=2><P><FONT face="Times New Roman">PART II.</FONT></FONT></B></TD>
<TD width="429" VALIGN="TOP" COLSPAN=3>
<B><FONT SIZE=2><P><FONT face="Times New Roman">OTHER INFORMATION</FONT></FONT></B></TD>
<TD WIDTH="99" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD width="59" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="368" VALIGN="TOP" COLSPAN=2><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="99" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD width="59" VALIGN="TOP">
<FONT SIZE=2><P><FONT face="Times New Roman">Item 1.</FONT></FONT></TD>
<TD WIDTH="368" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P></FONT><A HREF="#legalproceedins"><FONT SIZE=2 face="Times New Roman">Legal Proceedings</FONT></A></TD>
<TD WIDTH="99" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT face="Times New Roman">16</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD width="59" VALIGN="TOP">
<FONT SIZE=2>
<P><FONT face="Times New Roman">Item 4.</FONT></FONT></TD>
<TD WIDTH="368" VALIGN="TOP" COLSPAN=2>
<P><FONT size="2" face="Times New Roman"><A href="#submission">Submission of Matters to a Vote of Security Holders</A></FONT></P>
  </TD>
<TD WIDTH="99" VALIGN="TOP">
<FONT SIZE=2>
<P ALIGN="CENTER"><FONT face="Times New Roman">16</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD width="59" VALIGN="TOP">
<FONT SIZE=2><P><FONT face="Times New Roman">Item 6.</FONT></FONT></TD>
<TD WIDTH="368" VALIGN="TOP" COLSPAN=2>
<FONT SIZE=2><P></FONT><A HREF="#exhibitsandreportsonform8k"><FONT SIZE=2 face="Times New Roman">Exhibits and Reports on Form 8-K</FONT></A></TD>
<TD WIDTH="99" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT face="Times New Roman">16</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD width="59" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="368" VALIGN="TOP" COLSPAN=2><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="99" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD width="59" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="368" VALIGN="TOP" COLSPAN=2><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="99" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD width="59" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="368" VALIGN="TOP" COLSPAN=2><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="99" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="102" VALIGN="TOP">
<B><FONT SIZE=2><P><FONT face="Times New Roman">SIGNATURES</FONT></FONT></B></TD>
<TD width="59" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="368" VALIGN="TOP" COLSPAN=2><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="99" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT face="Times New Roman">17</FONT></FONT></TD>
</TR>
</TABLE>
</CENTER>

<FONT SIZE=3>
</FONT>
<P align="center"><FONT face="Times New Roman" size="2">2</FONT></P>

<FONT SIZE=3>
<HR size="3" color="#000080">
<DIV STYLE="page-break-before: always; width: 669; height: 21">&nbsp;</DIV>
</FONT><B><FONT SIZE=2><P><FONT face="Times New Roman">PART 1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL INFORMATION</FONT></P>
</FONT></B><FONT SIZE=2><P><FONT face="Times New Roman"><A NAME="item1">ITEM 1</A>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements (Unaudited</FONT><B><FONT face="Times New Roman">)</FONT></P>

<P ALIGN="CENTER"><FONT face="Times New Roman">MILLER INDUSTRIES, INC. AND SUBSIDIARIES<BR>
<A NAME="condensedconsolidatedbalancesheets">CONDENSED CONSOLIDATED BALANCE
SHEETS</A>
</FONT>
</P>
<P ALIGN="CENTER"><FONT face="Times New Roman">(In thousands, except share data)<BR>
(Unaudited)</FONT></P>

<P ALIGN="CENTER"><FONT face="Times New Roman">ASSETS</FONT></P>
</B></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=653>
<TR><TD WIDTH="66%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="CENTER"><FONT face="Times New Roman">October 31,<BR>
2001</FONT></FONT></B></P>
  </TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="CENTER"><FONT face="Times New Roman">April 30,<BR>
2001</FONT></FONT></B></P>
  </TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
  <HR color="#000080">
  </TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
  <HR color="#000080">
  </TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">

<B><FONT SIZE=2><P><FONT face="Times New Roman">CURRENT ASSETS:</FONT></FONT>
</B></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P style="margin-left: 30"><FONT face="Times New Roman">Cash and temporary investments</FONT></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman"><b>$</b></FONT></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman"><b>8,781&nbsp;</b></FONT></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">$</FONT></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman">6,627&nbsp;</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P style="margin-left: 30"><FONT face="Times New Roman">Accounts receivable, net</FONT></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman"><b>73,602&nbsp;</b></FONT></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman">75,104&nbsp;</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P style="margin-left: 30"><FONT face="Times New Roman">Inventories</FONT></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman"><b>63,614&nbsp;</b></FONT></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman">67,835&nbsp;</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P style="margin-left: 30"><FONT face="Times New Roman">Deferred income taxes</FONT></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman"><b>5,361&nbsp;</b></FONT></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman">5,371&nbsp;</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">
<FONT SIZE=2><P style="margin-left: 30"><FONT face="Times New Roman">Prepaid expenses and other</FONT></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman"><b>9,215&nbsp;</b></FONT></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman">12,010&nbsp;</FONT></FONT></TD>
</TR>
<TR>
  <TD WIDTH="66%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
  <HR color="#000080">
  </TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
  <HR color="#000080">
  </TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 60"><FONT face="Times New Roman">Total current assets</FONT>
</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman"><b>160,573&nbsp;</b></FONT></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman">166,947&nbsp;</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">

<B><FONT SIZE=2><P><FONT face="Times New Roman">PROPERTY, PLANT, AND EQUIPMENT, net</FONT></FONT>
</B></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman"><b>54,761&nbsp;</b></FONT></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman">58,564&nbsp;</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
  <P align="right"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></P>
  </TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
  <P align="right"><FONT face="Times New Roman">&nbsp;</FONT></P>
  </TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">

<B><FONT SIZE=2><P><FONT face="Times New Roman">GOODWILL, net</FONT></FONT>
</B></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman"><b>45,954&nbsp;</b></FONT></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman">46,736&nbsp;</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
  <P align="right"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></P>
  </TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
  <P align="right"><FONT face="Times New Roman">&nbsp;</FONT></P>
  </TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">

<B><FONT SIZE=2><P><FONT face="Times New Roman">OTHER ASSETS, net</FONT></FONT>
</B></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman"><b>10,870&nbsp;</b></FONT></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman">9,040&nbsp;</FONT></FONT></TD>
</TR>
<TR>
  <TD WIDTH="66%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
  <HR color="#000080">
  </TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
  <HR color="#000080">
  </TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP"><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman"><b>$</b></FONT></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman"><b>272,158&nbsp;</b></FONT></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">$</FONT></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman">281,287&nbsp;</FONT></FONT></TD>
</TR>
<TR>
  <TD WIDTH="66%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
  <HR color="#000080" size="4">
  </TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
  <HR color="#000080" size="4">
  </TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=5>
<B><FONT SIZE=2><P ALIGN="CENTER"><FONT face="Times New Roman">LIABILITIES AND SHAREHOLDERS' EQUITY</FONT></FONT></B></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">

<B><FONT SIZE=2><P><FONT face="Times New Roman">CURRENT LIABILITIES:</FONT></FONT>
</B></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 30"><FONT face="Times New Roman">Current portion of long-term debt</FONT>
</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman"><b>$</b></FONT></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman"><b>6,221&nbsp;</b></FONT></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">$</FONT></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman">7,213&nbsp;</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 30"><FONT face="Times New Roman">Accounts payable</FONT>
</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman"><b>44,721&nbsp;</b></FONT></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman">43,064&nbsp;</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 30"><FONT face="Times New Roman">Accrued liabilities and other</FONT>
</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman"><b>21,659&nbsp;</b></FONT></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman">25,356&nbsp;</FONT></FONT></TD>
</TR>
<TR>
  <TD WIDTH="66%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
  <HR color="#000080">
  </TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
  <HR color="#000080">
  </TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 60"><FONT face="Times New Roman">Total current liabilities</FONT>
</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman"><b>72,601&nbsp;</b></FONT></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman">75,633&nbsp;</FONT></FONT></TD>
</TR>
<TR>
  <TD WIDTH="66%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
  <HR color="#000080">
  </TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
  <HR color="#000080">
  </TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">

<B><FONT SIZE=2><P><FONT face="Times New Roman">LONG-TERM DEBT, less current portion</FONT></FONT>
</B></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman"><b>95,412&nbsp;</b></FONT></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman">99,121&nbsp;</FONT></FONT></TD>
</TR>
<TR>
  <TD WIDTH="66%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
  <HR color="#000080">
  </TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
  <HR color="#000080">
  </TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">

<B><FONT SIZE=2><P><FONT face="Times New Roman">SHAREHOLDERS' EQUITY </FONT>
</FONT> </B> <FONT face="Times New Roman" SIZE="2"> (Note 2):</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
  <P align="right"><FONT face="Times New Roman">&nbsp;</FONT></P>
    </TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 30"><FONT face="Times New Roman">Preferred stock, $.01 par value, 5,000,000 shares authorized; <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;none issued or outstanding</FONT>
</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman"><b><BR>
0&nbsp;</b></FONT></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman"><BR>
0&nbsp;</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 30"><FONT face="Times New Roman">Common stock, $.01 par value, 100,000,000 shares authorized;<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,341,436 shares issued and outstanding at October 31, 2001 <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and April 30, 2001</FONT>
</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2>
<P align="right">&nbsp;</P>
<P align="right"><FONT face="Times New Roman"><b>93&nbsp;</b></FONT></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman"><BR>
<BR>
93&nbsp;</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 30"><FONT face="Times New Roman">Additional paid-in capital</FONT>
</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman"><b>145,088&nbsp;</b></FONT></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman">145,088&nbsp;</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 30"><FONT face="Times New Roman">Accumulated deficit</FONT>
</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman"><b>(39,037)</b></FONT></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman">(36,509)</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 30"><FONT face="Times New Roman">Accumulated other comprehensive loss</FONT>
</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman"><b>(1,999)</b></FONT></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman">(2,139)</FONT></FONT></TD>
</TR>
<TR>
  <TD WIDTH="66%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
  <HR color="#000080">
  </TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
  <HR color="#000080">
  </TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 60"><FONT face="Times New Roman">Total shareholders' equity</FONT>
</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman"><b>104,145&nbsp;</b></FONT></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><P></P></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman">106,533&nbsp;</FONT></FONT></TD>
</TR>
<TR>
  <TD WIDTH="66%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman"><b>&nbsp;</b></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
  <HR color="#000080">
  </TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
  <HR color="#000080">
  </TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP"><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman"><b>$</b></FONT></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman"><b>272,158&nbsp;</b></FONT></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">$</FONT></FONT></TD>
<TD WIDTH="14%" VALIGN="TOP">
<FONT SIZE=2><P align="right"><FONT face="Times New Roman">281,287&nbsp;</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="66%" VALIGN="TOP"></TD>
<TD WIDTH="3%" VALIGN="TOP">
  </TD>
<TD WIDTH="14%" VALIGN="TOP">
<HR color="#000080" size="4">
  </TD>
<TD WIDTH="3%" VALIGN="TOP">
  </TD>
<TD WIDTH="14%" VALIGN="TOP">
<HR color="#000080" size="4">
  </TD>
</TR>
</TABLE>

<FONT SIZE=2><P ALIGN="CENTER"><FONT face="Times New Roman">See accompanying notes to condensed consolidated financial statements.</FONT></P>

  </FONT>
<P align="center"><FONT face="Times New Roman" size="2">3</FONT></P>

<FONT SIZE=2>

<FONT SIZE=3>
<HR size="3" color="#000080">
<DIV STYLE="page-break-before: always; width: 669; height: 21">&nbsp;</DIV>
</FONT>

<B><P ALIGN="CENTER"><FONT face="Times New Roman">MILLER INDUSTRIES, INC. AND SUBSIDIARIES<BR>
<A NAME="condensedconsolidatedstmtsofincome">CONDENSED CONSOLIDATED STATEMENTS OF </A>OPERATIONS<BR>
(In thousands, except per share data)<BR>
(Unaudited)</FONT></P>
</B></FONT>
<TABLE BORDER="0" CELLSPACING=0 CELLPADDING=0 WIDTH=649>
<TR><TD WIDTH="33%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="27%" VALIGN="TOP" COLSPAN=3>
<B><FONT SIZE=2><P ALIGN="CENTER"><FONT face="Times New Roman">Three Months Ended<BR>
October 31,</FONT></FONT></B></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=3>
<B><FONT SIZE=2><P ALIGN="CENTER"><FONT face="Times New Roman">Six Months Ended<BR>
October 31,</FONT></FONT></B></TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP"></TD>
<TD WIDTH="2%" VALIGN="TOP"></TD>
<TD WIDTH="27%" VALIGN="TOP" COLSPAN=3>
<HR color="#000080">
  </TD>
<TD WIDTH="11%" VALIGN="TOP"></TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=3>
<HR color="#000080">
  </TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<B><P ALIGN="CENTER"><FONT face="Times New Roman" size="2">2001</FONT></B></TD>
<TD WIDTH="5%" VALIGN="TOP"><FONT face="Times New Roman" size="2">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT face="Times New Roman" size="2">2000</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman" size="2">&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<B><P ALIGN="CENTER"><FONT face="Times New Roman" size="2">2001</FONT></B></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman" size="2">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT face="Times New Roman" size="2">2000</FONT></TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP"></TD>
<TD WIDTH="2%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080">
  </TD>
<TD WIDTH="5%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080">
  </TD>
<TD WIDTH="11%" VALIGN="TOP"></TD>
<TD WIDTH="12%" VALIGN="TOP">
<HR color="#000080">
  </TD>
<TD WIDTH="3%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080">
  </TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP"></TD>
<TD WIDTH="2%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP"></TD>
<TD WIDTH="5%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP"></TD>
<TD WIDTH="12%" VALIGN="TOP"></TD>
<TD WIDTH="3%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP"></TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP">

<B><FONT SIZE=1><P><FONT face="Times New Roman">NET SALES:</FONT></FONT>
</B></TD>
<TD WIDTH="2%" VALIGN="TOP">
  </TD>
<TD WIDTH="11%" VALIGN="TOP">
&nbsp;</TD>
<TD WIDTH="5%" VALIGN="TOP">
  </TD>
<TD WIDTH="11%" VALIGN="TOP">
  </TD>
<TD WIDTH="11%" VALIGN="TOP">
  </TD>
<TD WIDTH="12%" VALIGN="TOP">
  </TD>
<TD WIDTH="3%" VALIGN="TOP">
  </TD>
<TD WIDTH="11%" VALIGN="TOP">
  </TD>
</TR>
<TR>
  <TD WIDTH="33%" VALIGN="TOP">
    <p style="margin-left: 20"><b><font face="Times New Roman" size="1">Towing
    and Recovery Equipment</font></b></TD>
<TD WIDTH="2%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">$</FONT></FONT></B></TD>
<TD WIDTH="11%" VALIGN="TOP">
<p ALIGN="right"><b><font face="Times New Roman" size="2">&nbsp;76,624</font></b>
  </TD>
<TD WIDTH="5%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">$</FONT></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<p align="right"><font size="2" face="Times New Roman">82,100</font>
  </TD>
<TD WIDTH="11%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">$</FONT></FONT></B></TD>
<TD WIDTH="12%" VALIGN="TOP">
<p align="right"><font size="2" face="Times New Roman"><b>153,859</b></font>
  </TD>
<TD WIDTH="3%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">$</FONT></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<p align="right"><font size="2" face="Times New Roman">159,656</font>
  </TD>
</TR>
<TR>
  <TD WIDTH="33%" VALIGN="TOP">
    <p style="margin-left: 20"><b><font face="Times New Roman" size="1">Towing
    Services</font></b></TD>
<TD WIDTH="2%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<p ALIGN="right"><b><font face="Times New Roman" size="2">38,298</font></b>
  </TD>
<TD WIDTH="5%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<p align="right"><font size="2" face="Times New Roman">47,580</font>
  </TD>
<TD WIDTH="11%" VALIGN="TOP"></TD>
<TD WIDTH="12%" VALIGN="TOP">
<p align="right"><font size="2" face="Times New Roman"><b>78,009</b></font>
  </TD>
<TD WIDTH="3%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<p align="right"><font size="2" face="Times New Roman">97,176</font>
  </TD>
</TR>
<TR>
  <TD WIDTH="33%" VALIGN="TOP"></TD>
<TD WIDTH="2%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080">
  </TD>
<TD WIDTH="5%" VALIGN="TOP">
  <p align="right"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080">
  </TD>
<TD WIDTH="11%" VALIGN="TOP"></TD>
<TD WIDTH="12%" VALIGN="TOP">
<HR color="#000080">
  </TD>
<TD WIDTH="3%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080">
  </TD>
</TR>
<tr>
  <TD WIDTH="33%" VALIGN="TOP">

<P><b><font face="Times New Roman" size="1">&nbsp;</font></b></TD>
<TD WIDTH="2%" VALIGN="TOP">
  </TD>
<TD WIDTH="11%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">114,922</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="TOP">
  </TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">129,680&nbsp;</FONT></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
  </TD>
<TD WIDTH="12%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">231,868&nbsp;</FONT></FONT></B></TD>
<TD WIDTH="3%" VALIGN="TOP">
  </TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">256,832&nbsp;</FONT></FONT></TD>
</tr>
<tr>
  <TD WIDTH="33%" VALIGN="TOP"></TD>
<TD WIDTH="2%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080">
  </TD>
<TD WIDTH="5%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080">
  </TD>
<TD WIDTH="11%" VALIGN="TOP"></TD>
<TD WIDTH="12%" VALIGN="TOP">
<HR color="#000080">
  </TD>
<TD WIDTH="3%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080">
  </TD>
</tr>
<TR><TD WIDTH="33%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP">

<B><FONT SIZE=1><P><FONT face="Times New Roman">COSTS AND EXPENSES:</FONT></FONT>
</B></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP">

<B><FONT SIZE=1><P style="margin-left: 20"><FONT face="Times New Roman">Costs of
operations:</FONT></FONT>
</B></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
  </TD>
<TD WIDTH="5%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
  </TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
  </TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
  </TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP">

<p style="margin-left: 20"><font face="Times New Roman" size="1"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Towing
and Recovery Equipment</b></font></TD>
<TD WIDTH="2%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<p align="right"><font face="Times New Roman" size="2"><b>67,518</b></font></TD>
<TD WIDTH="5%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<p align="right"><font face="Times New Roman" size="2">71,498</font></TD>
<TD WIDTH="11%" VALIGN="TOP"></TD>
<TD WIDTH="12%" VALIGN="TOP">
<p align="right"><font face="Times New Roman" size="2"><b>135,952&nbsp;</b></font></TD>
<TD WIDTH="3%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<p align="right"><font face="Times New Roman" size="2">138,678&nbsp;</font></TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP">

<p style="margin-left: 20"><font face="Times New Roman" size="1"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Towing
Services</b></font></TD>
<TD WIDTH="2%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<p align="right"><font face="Times New Roman" size="2"><b>32,289</b></font></TD>
<TD WIDTH="5%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<p align="right"><font face="Times New Roman" size="2">39,625</font></TD>
<TD WIDTH="11%" VALIGN="TOP"></TD>
<TD WIDTH="12%" VALIGN="TOP">
<p align="right"><font face="Times New Roman" size="2"><b>65,290&nbsp;</b></font></TD>
<TD WIDTH="3%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<p align="right"><font face="Times New Roman" size="2">80,766&nbsp;</font></TD>
</TR>
<tr>
  <TD WIDTH="33%" VALIGN="TOP"></TD>
<TD WIDTH="2%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080">
  </TD>
<TD WIDTH="5%" VALIGN="TOP">
  <p align="right"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080">
  </TD>
<TD WIDTH="11%" VALIGN="TOP"></TD>
<TD WIDTH="12%" VALIGN="TOP">
<HR color="#000080">
  </TD>
<TD WIDTH="3%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080">
  </TD>
</tr>
<tr>
  <TD WIDTH="33%" VALIGN="TOP">

  </TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">99,807</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">111,123&nbsp;</FONT></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">201,242&nbsp;</FONT></FONT></B></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">219,444&nbsp;</FONT></FONT></TD>
</tr>
<TR><TD WIDTH="33%" VALIGN="TOP">

  </TD>
<TD WIDTH="2%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
  </TD>
<TD WIDTH="5%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
  </TD>
<TD WIDTH="11%" VALIGN="TOP"></TD>
<TD WIDTH="12%" VALIGN="TOP">
  </TD>
<TD WIDTH="3%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
  </TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP">

<B><FONT SIZE=1><P style="margin-left: 20"><FONT face="Times New Roman">Selling, general, and <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;administrative expenses</FONT></FONT>
</B></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman"><BR>
12,802</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman"><BR>
16,652&nbsp;</FONT></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman"><BR>
26,880&nbsp;</FONT></FONT></B></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman"><BR>
34,689&nbsp;</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP">

<B><FONT SIZE=1><P style="margin-left: 20"><FONT face="Times New Roman">Interest expense, net</FONT></FONT>
</B></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">2,202</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">4,663&nbsp;</FONT></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">5,994&nbsp;</FONT></FONT></B></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">8,629&nbsp;</FONT></FONT></TD>
</TR>
<TR>
  <TD WIDTH="33%" VALIGN="TOP"></TD>
<TD WIDTH="2%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080">
  </TD>
<TD WIDTH="5%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080">
  </TD>
<TD WIDTH="11%" VALIGN="TOP"></TD>
<TD WIDTH="12%" VALIGN="TOP">
<HR color="#000080">
  </TD>
<TD WIDTH="3%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080">
  </TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP">

<B><FONT SIZE=1><P style="margin-left: 40"><FONT face="Times New Roman">Total costs and expenses</FONT></FONT>
</B></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">114,811</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">132,438&nbsp;</FONT></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">234,116&nbsp;</FONT></FONT></B></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">262,762&nbsp;</FONT></FONT></TD>
</TR>
<TR>
  <TD WIDTH="33%" VALIGN="TOP"></TD>
<TD WIDTH="2%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080">
  </TD>
<TD WIDTH="5%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080">
  </TD>
<TD WIDTH="11%" VALIGN="TOP"></TD>
<TD WIDTH="12%" VALIGN="TOP">
<HR color="#000080">
  </TD>
<TD WIDTH="3%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080">
  </TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP">

<FONT SIZE=1><P>
</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"></P>
</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP">

<B><FONT SIZE=1><P><FONT face="Times New Roman">INCOME (LOSS) BEFORE<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INCOME  TAXES</FONT></FONT>
</B></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman"><BR>
111</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman"><BR>
(2,758)</FONT></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman"><BR>
(2,248)</FONT></FONT></B></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman"><BR>
(5,930)</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP">

<B><FONT SIZE=1><P><FONT face="Times New Roman">INCOME TAX PROVISION<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(BENEFIT)</FONT></FONT>
</B></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman"><BR>
90</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman"><BR>
(927)</FONT></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman"><BR>
280&nbsp;</FONT></FONT></B></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman"><BR>
(2,006)</FONT></FONT></TD>
</TR>
<TR>
  <TD WIDTH="33%" VALIGN="TOP"></TD>
<TD WIDTH="2%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080">
  </TD>
<TD WIDTH="5%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080">
  </TD>
<TD WIDTH="11%" VALIGN="TOP"></TD>
<TD WIDTH="12%" VALIGN="TOP">
<HR color="#000080">
  </TD>
<TD WIDTH="3%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080">
  </TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP">

<B><FONT SIZE=1><P><FONT face="Times New Roman">NET INCOME (LOSS)</FONT></FONT>
</B></TD>
<TD WIDTH="2%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">$</FONT></FONT></B></TD>
<TD WIDTH="11%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">21</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">$</FONT></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">(1,831)</FONT></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">$</FONT></FONT></B></TD>
<TD WIDTH="12%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">(2,528)</FONT></FONT></B></TD>
<TD WIDTH="3%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT face="Times New Roman">$</FONT></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">(3,924)</FONT></FONT></TD>
</TR>
<TR>
  <TD WIDTH="33%" VALIGN="TOP"></TD>
<TD WIDTH="2%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080" size="4">
  </TD>
<TD WIDTH="5%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080" size="4">
  </TD>
<TD WIDTH="11%" VALIGN="TOP"></TD>
<TD WIDTH="12%" VALIGN="TOP">
<HR color="#000080" size="4">
  </TD>
<TD WIDTH="3%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080" size="4">
  </TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP">

<FONT FACE="Book Antiqua" SIZE=3><P></FONT><B><FONT SIZE=1><FONT face="Times New Roman">NET INCOME (LOSS) PER<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;COMMON SHARE:</FONT></P>
</FONT>
</B></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP">

<B><FONT SIZE=1><P style="margin-left: 20"><FONT face="Times New Roman">Basic</FONT></FONT>
</B></TD>
<TD WIDTH="2%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">$</FONT></FONT></B></TD>
<TD WIDTH="11%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">0.00</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">$</FONT></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">(0.20)</FONT></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">$</FONT></FONT></B></TD>
<TD WIDTH="12%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">(0.27)</FONT></FONT></B></TD>
<TD WIDTH="3%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">$</FONT></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">(0.42)</FONT></FONT></TD>
</TR>
<TR>
  <TD WIDTH="33%" VALIGN="TOP"></TD>
<TD WIDTH="2%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080" size="4">
  </TD>
<TD WIDTH="5%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080" size="4">
  </TD>
<TD WIDTH="11%" VALIGN="TOP"></TD>
<TD WIDTH="12%" VALIGN="TOP">
<HR color="#000080" size="4">
  </TD>
<TD WIDTH="3%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080" size="4">
  </TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP">

<B><FONT SIZE=1><P style="margin-left: 20"><FONT face="Times New Roman">Diluted</FONT></FONT>
</B></TD>
<TD WIDTH="2%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">$</FONT></FONT></B></TD>
<TD WIDTH="11%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">0.00</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">$</FONT></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">(0.20)</FONT></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">$</FONT></FONT></B></TD>
<TD WIDTH="12%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">(0.27)</FONT></FONT></B></TD>
<TD WIDTH="3%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">$</FONT></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">(0.42)</FONT></FONT></TD>
</TR>
<TR>
  <TD WIDTH="33%" VALIGN="TOP"></TD>
<TD WIDTH="2%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080" size="4">
  </TD>
<TD WIDTH="5%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080" size="4">
  </TD>
<TD WIDTH="11%" VALIGN="TOP"></TD>
<TD WIDTH="12%" VALIGN="TOP">
<HR color="#000080" size="4">
  </TD>
<TD WIDTH="3%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080" size="4">
  </TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP"><B><FONT SIZE=1 face="Times New Roman">WEIGHTED AVERAGE<BR>
    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHARES OUTSTANDING:
</B></FONT>
  </TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP">

<B><FONT SIZE=1><P style="margin-left: 20">          <FONT face="Times New Roman">          Basic</FONT></FONT>
</B></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">9,341</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">9,341&nbsp;</FONT></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">9,341&nbsp;</FONT></FONT></B></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">9,341&nbsp;</FONT></FONT></TD>
</TR>
<TR>
  <TD WIDTH="33%" VALIGN="TOP"></TD>
<TD WIDTH="2%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080" size="4">
  </TD>
<TD WIDTH="5%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080" size="4">
  </TD>
<TD WIDTH="11%" VALIGN="TOP"></TD>
<TD WIDTH="12%" VALIGN="TOP">
<HR color="#000080" size="4">
  </TD>
<TD WIDTH="3%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080" size="4">
  </TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP">
<B><FONT SIZE=1><P style="margin-left: 20">          <FONT face="Times New Roman">          Diluted</FONT></FONT></B></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">9,342</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">9,341&nbsp;</FONT></FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">9,341&nbsp;</FONT></FONT></B></TD>
<TD WIDTH="3%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">9,341&nbsp;</FONT></FONT></TD>
</TR>
<TR>
  <TD WIDTH="33%" VALIGN="TOP"></TD>
<TD WIDTH="2%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080" size="4">
  </TD>
<TD WIDTH="5%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080" size="4">
  </TD>
<TD WIDTH="11%" VALIGN="TOP"></TD>
<TD WIDTH="12%" VALIGN="TOP">
<HR color="#000080" size="4">
  </TD>
<TD WIDTH="3%" VALIGN="TOP"></TD>
<TD WIDTH="11%" VALIGN="TOP">
<HR color="#000080" size="4">
  </TD>
</TR>
</TABLE>

  <FONT SIZE=2>

<P ALIGN="CENTER"><FONT face="Times New Roman">See accompanying notes to condensed consolidated financial statements.</FONT></P>
</FONT>

<P align="center"><FONT face="Times New Roman" size="2">4</FONT></P>
  <FONT SIZE=2>

<FONT SIZE=3>
<HR size="3" color="#000080">
<DIV STYLE="page-break-before: always; width: 669; height: 21">&nbsp;</DIV>
</FONT>
<B><P ALIGN="CENTER"><FONT face="Times New Roman">MILLER INDUSTRIES, INC. AND SUBSIDIARIES<BR>
<A NAME="condensedconsolidatedstmtsofcashflow">CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS</A><BR>
(in thousands)<BR>
(Unaudited)</FONT></P>
</B></FONT>
  <CENTER><TABLE BORDER="0" CELLSPACING=0 BORDERCOLOR="#008000" CELLPADDING=0 WIDTH=622>
<TR><TD WIDTH="63%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP" COLSPAN=4>
<FONT SIZE=2><P ALIGN="CENTER"><FONT face="Times New Roman">Six Months Ended October 31,</FONT></FONT>
  <HR color="#000080">
</TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="CENTER"><FONT face="Times New Roman">2001</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="CENTER"><FONT face="Times New Roman">2000</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP"></TD>
<TD WIDTH="4%" VALIGN="TOP"></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<HR color="#000080">
  </TD>
<TD WIDTH="5%" VALIGN="TOP"></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR color="#000080">
  </TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=16>

<FONT SIZE=2><P><FONT face="Times New Roman">OPERATING ACTIVITIES:</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2 HEIGHT=16><P></P></TD>
<TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="15%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 20"><FONT face="Times New Roman">Net loss</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">$</FONT></FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">(2,528)</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">$</FONT></FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">(3,924)</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 20"><FONT face="Times New Roman">Adjustments to reconcile net loss to net cash provided<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by operating activities:</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="5%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 60"><FONT face="Times New Roman">Depreciation and amortization</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">6,559&nbsp;</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">6,806&nbsp;</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 60"><FONT face="Times New Roman">Deferred income tax provision</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">14&nbsp;</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">119&nbsp;</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 60"><FONT face="Times New Roman">Gain on disposals of property, plant, and equipment</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">(12)</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">(371)</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 60"><FONT face="Times New Roman">Gain on disposal of other long-term asset</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">0&nbsp;</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">(357)</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 60"><FONT face="Times New Roman">Changes in operating assets and liabilities:</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="5%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 80"><FONT face="Times New Roman">Accounts receivable</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2>

<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">408&nbsp;</FONT></FONT>
</B></TD>
<TD WIDTH="5%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">

<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">14,496&nbsp;</FONT>
</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 80"><FONT face="Times New Roman">Inventories</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">4,364&nbsp;</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">215&nbsp;</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 80"><FONT face="Times New Roman">Prepaid expenses and other</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">1,072&nbsp;</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">(2,631)</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 80"><FONT face="Times New Roman">Other assets</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">71&nbsp;</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">(1,021)</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 80"><FONT face="Times New Roman">Accounts payable</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="RIGHT"><font face="Times New Roman">1,784&nbsp;</font></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">(8,521)</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 80"><FONT face="Times New Roman">Accrued liabilities</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">(946)</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">

<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">3,738&nbsp;</FONT>
</FONT></TD>
</TR>
  <TR>
    <TD WIDTH="63%" VALIGN="TOP"></TD>
<TD WIDTH="4%" VALIGN="TOP"></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<HR color="#000080">
    </TD>
<TD WIDTH="5%" VALIGN="TOP"></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR color="#000080">
    </TD>
  </TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 110"><FONT face="Times New Roman">Net cash provided by operating activities</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">10,786&nbsp;</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">8,549&nbsp;</FONT></FONT></TD>
</TR>
  <TR>
    <TD WIDTH="63%" VALIGN="TOP"></TD>
<TD WIDTH="4%" VALIGN="TOP"></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<HR color="#000080">
    </TD>
<TD WIDTH="5%" VALIGN="TOP"></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR color="#000080">
    </TD>
  </TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P><FONT face="Times New Roman">INVESTING ACTIVITIES:</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="5%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 20"><FONT face="Times New Roman">Purchases of property, plant, and equipment</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">(2,155)</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">(1,791)</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 20"><FONT face="Times New Roman">Proceeds from sale of property, plant, and equipment</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">658&nbsp;</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">2,417&nbsp;</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 20"><FONT face="Times New Roman">Proceeds from sale of other long-term asset</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">0&nbsp;</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">3,371&nbsp;</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 20"><FONT face="Times New Roman">Proceeds from sale of businesses</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">1,077&nbsp;</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">0&nbsp;</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 20"><FONT face="Times New Roman">Acquisition of businesses, net of cash acquired</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">0&nbsp;</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">(71)</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 20"><FONT face="Times New Roman">Proceeds from payments of notes receivable</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">160&nbsp;</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT">  </FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">212&nbsp;</FONT></FONT></TD>
</TR>
  <TR>
    <TD WIDTH="63%" VALIGN="TOP"></TD>
<TD WIDTH="4%" VALIGN="TOP"></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<HR color="#000080">
    </TD>
<TD WIDTH="5%" VALIGN="TOP"></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR color="#000080">
    </TD>
  </TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 110"><FONT face="Times New Roman">Net cash (used in) provided by investing<BR>
activities</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="RIGHT">
<FONT face="Times New Roman">
(260)</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT">
<FONT face="Times New Roman">
4,138&nbsp;</FONT></FONT></TD>
</TR>
  <TR>
    <TD WIDTH="63%" VALIGN="TOP"></TD>
<TD WIDTH="4%" VALIGN="TOP"></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<HR color="#000080">
    </TD>
<TD WIDTH="5%" VALIGN="TOP"></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR color="#000080">
    </TD>
  </TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=20>

<FONT SIZE=2><P><FONT face="Times New Roman">FINANCING ACTIVITIES:</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=20><P></P></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2 HEIGHT=20><P></P></TD>
<TD WIDTH="5%" VALIGN="bottom" HEIGHT=20><P></P></TD>
<TD WIDTH="15%" VALIGN="bottom" HEIGHT=20><P></P></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP" HEIGHT=5>

<FONT SIZE=2><P style="margin-left: 20"><FONT face="Times New Roman">Net borrowings under new credit facility</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=5><P></P></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2 HEIGHT=5>
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">83,600&nbsp;</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom" HEIGHT=5><P></P></TD>
<TD WIDTH="15%" VALIGN="bottom" HEIGHT=5>
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">0&nbsp;</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 20"><FONT face="Times New Roman">Borrowings under subordinated credit facility</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">        </FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">14,000&nbsp;</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">0&nbsp;</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 20"><FONT face="Times New Roman">Net payments under former credit facility</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT">     </FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">(100,000)</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">(7,000)</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 20"><FONT face="Times New Roman">Repayment of long-term obligations</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">(2,688)</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">(1,700)</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 20"><FONT face="Times New Roman">Additions to deferred financing costs</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">(3,209)</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">0&nbsp;</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 20"><FONT face="Times New Roman">Proceeds from exercise of stock options</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">0&nbsp;</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">6&nbsp;</FONT></FONT></TD>
</TR>
  <TR>
    <TD WIDTH="63%" VALIGN="TOP"></TD>
<TD WIDTH="4%" VALIGN="TOP"></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<HR color="#000080">
    </TD>
<TD WIDTH="5%" VALIGN="TOP"></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR color="#000080">
    </TD>
  </TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 110"><FONT face="Times New Roman">Net cash used in financing activities</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2>
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">(8,297)</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT"> <FONT face="Times New Roman"> (8,694)</FONT></FONT></TD>
</TR>
  <TR>
    <TD WIDTH="63%" VALIGN="TOP"></TD>
<TD WIDTH="4%" VALIGN="TOP"></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<HR color="#000080">
    </TD>
<TD WIDTH="5%" VALIGN="TOP"></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR color="#000080">
    </TD>
  </TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P><FONT face="Times New Roman">EFFECT OF EXCHANGE RATE CHANGES ON CASH AND<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TEMPORARY INVESTMENTS</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2>
<B><FONT SIZE=2>
<P ALIGN="RIGHT"><FONT face="Times New Roman">(75)</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT">
 <FONT face="Times New Roman">
 (262)</FONT></FONT></TD>
</TR>
  <TR>
    <TD WIDTH="63%" VALIGN="TOP"></TD>
<TD WIDTH="4%" VALIGN="TOP"></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<HR color="#000080">
    </TD>
<TD WIDTH="5%" VALIGN="TOP"></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR color="#000080">
    </TD>
  </TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P><FONT face="Times New Roman">NET INCREASE IN CASH AND<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TEMPORARY INVESTMENTS</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2>
<B><FONT SIZE=2>
<P ALIGN="RIGHT"><FONT face="Times New Roman">2,154&nbsp;</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT">
<FONT face="Times New Roman">
3,731&nbsp;</FONT></FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">
<FONT SIZE=2>

<P><FONT face="Times New Roman">CASH AND TEMPORARY INVESTMENTS, beginning of period</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="bottom" COLSPAN=2>
<B><FONT SIZE=2>
<P ALIGN="RIGHT"><FONT face="Times New Roman">6,627&nbsp;</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT">
<FONT face="Times New Roman">
5,990&nbsp;</FONT></FONT></TD>
</TR>
  <TR>
    <TD WIDTH="63%" VALIGN="TOP"></TD>
<TD WIDTH="4%" VALIGN="TOP"></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<HR color="#000080">
    </TD>
<TD WIDTH="5%" VALIGN="TOP"></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR color="#000080">
    </TD>
  </TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P><FONT face="Times New Roman">CASH AND TEMPORARY INVESTMENTS, end of period</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">$</FONT></FONT></TD>
<TD WIDTH="13%" VALIGN="bottom">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">8,781&nbsp;</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">$</FONT> </FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">9,721&nbsp;</FONT></FONT></TD>
</TR>
  <TR>
    <TD WIDTH="63%" VALIGN="TOP"></TD>
<TD WIDTH="4%" VALIGN="TOP"></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<HR color="#000080" size="4">
    </TD>
<TD WIDTH="5%" VALIGN="TOP"></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR color="#000080" size="4">
    </TD>
  </TR>
<TR><TD WIDTH="63%" VALIGN="TOP">
<FONT SIZE=2>

<P><FONT face="Times New Roman">SUPPLEMENTAL DISCLOSURE OF CASH FLOW<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INFORMATION:</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="13%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="5%" VALIGN="bottom" COLSPAN=2><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="bottom"><FONT face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 20"><FONT face="Times New Roman">Cash payments for interest</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">$</FONT></FONT></TD>
<TD WIDTH="13%" VALIGN="bottom">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">4,597&nbsp;</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">$</FONT></FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">8,730&nbsp;</FONT></FONT></TD>
</TR>
  <TR>
    <TD WIDTH="63%" VALIGN="TOP"></TD>
<TD WIDTH="4%" VALIGN="TOP"></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<HR color="#000080" size="4">
    </TD>
<TD WIDTH="5%" VALIGN="TOP"></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR color="#000080" size="4">
    </TD>
  </TR>
<TR><TD WIDTH="63%" VALIGN="TOP">

<FONT SIZE=2><P style="margin-left: 20"><FONT face="Times New Roman">Cash payments for income taxes</FONT>
</FONT></TD>
<TD WIDTH="4%" VALIGN="TOP">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">$</FONT></FONT></TD>
<TD WIDTH="13%" VALIGN="bottom">
<B><FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">383&nbsp;</FONT></FONT></B></TD>
<TD WIDTH="5%" VALIGN="bottom" COLSPAN=2>
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">$</FONT></FONT></TD>
<TD WIDTH="15%" VALIGN="bottom">
<FONT SIZE=2><P ALIGN="RIGHT"><FONT face="Times New Roman">349&nbsp;</FONT></FONT></TD>
</TR>
  <TR>
    <TD WIDTH="63%" VALIGN="TOP"></TD>
<TD WIDTH="4%" VALIGN="TOP"></TD>
<TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>
<HR color="#000080" size="4">
    </TD>
<TD WIDTH="5%" VALIGN="TOP"></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR color="#000080" size="4">
    </TD>
  </TR>
</TABLE>
</CENTER>

<FONT SIZE=2><P ALIGN="CENTER"><FONT face="Times New Roman">See accompanying notes to condensed consolidated financial statements.</FONT></P>
</FONT>
<P align="center"><FONT face="Times New Roman" size="2">5</FONT></P>
<FONT SIZE=3>
  <HR size="3" color="#000080">
  <DIV STYLE="page-break-before: always; width: 669; height: 21">&nbsp;</DIV>
  <B>
<P ALIGN="CENTER"><FONT face="Times New Roman">MILLER INDUSTRIES, INC. AND SUBSIDIARIES<BR>
<A NAME="notestocondensedconsolfinancialstmts">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS<BR>
</A>(Unaudited)</FONT></P>
</B>
  </FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=590>
<TR><TD WIDTH="8%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">1.</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">Basis of Presentation</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">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 accounting principles generally accepted in the United States 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 entit
ies 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, 2001.</FONT></TD>
</TR>
<TR>
  <TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">On September 25, 2001, the Company announced that its Board of Directors had approved a change in the Company&#146;s fiscal year from April 30 to December 31, effective December 31, 2001.  The Company will file with the Securities and Exchange Commission a Form 10-K report for the eight-month period ended December 31, 2001 in March 2002 to effect the change.</FONT></P>
  </TD>
</TR>
<TR>
  <TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">2.</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">Net Income (Loss) Per Share</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">Basic net income (loss) per share is computed by dividing net
income (loss) by the weighted average number of common shares outstanding.  Diluted net income (loss) per share is calculated by dividing net income (loss) 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 1,000 potential dilutive common shares for the three months ended October 31, 2001.  Diluted net loss per share for the three months ended October 30, 2000 and six months ended October 31, 2001 and 2000 does not assume exercise of any stock options as the effect would be
anti-dilutive.</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT size="2" face="Times New Roman">On October 1, 2001, the Company effected a one-for-five reverse common stock split.  All historical and per share amounts have been retroactively restated to reflect the reverse common stock split.</FONT></TD>
</TR>
</TABLE>

<P>&nbsp;</P>

<P align="center"><FONT face="Times New Roman" size="2">6</FONT></P>

<FONT SIZE=3>
<HR size="3" color="#000080">
<DIV STYLE="page-break-before: always; width: 669; height: 21">&nbsp;</DIV>

<P>&nbsp;</P>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=590>
<TR><TD WIDTH="8%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">3.</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">Inventories</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">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.</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">Inventories at October 31, 2001 and April 30, 2001 consisted of the following (in thousands):</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P>&nbsp;</P></FONT>
<TABLE BORDER="0" CELLSPACING=0 CELLPADDING=0 WIDTH=505>
<TR><TD WIDTH="23%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<B><P ALIGN="CENTER"><FONT size="2" face="Times New Roman">October 31,<BR>
2001</FONT></B>
<HR color="#000080">
  </TD>
<TD WIDTH="5%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="CENTER"><FONT size="2" face="Times New Roman">April 30,<BR>
2001</FONT>
<HR color="#000080">
  </TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">Chassis</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">
<B><P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">$</FONT></B></TD>
<TD WIDTH="19%" VALIGN="TOP">
<B><P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">9,139</FONT></B></TD>
<TD WIDTH="5%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">$</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"> <FONT size="2" face="Times New Roman"> 8,650</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">Raw Materials</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<B><P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">13,715</FONT></B></TD>
<TD WIDTH="5%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">14,133</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">Work in process</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<B><P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">10,178</FONT></B></TD>
<TD WIDTH="5%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">10,544</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">Finished goods</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="19%" VALIGN="TOP">
<B><P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">30,582</FONT></B></TD>
<TD WIDTH="5%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"> <FONT size="2" face="Times New Roman"> 34,508</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP"></TD>
<TD WIDTH="33%" VALIGN="TOP">
  </TD>
<TD WIDTH="5%" VALIGN="TOP"></TD>
<TD WIDTH="19%" VALIGN="TOP">
<HR color="#000080">
  </TD>
<TD WIDTH="5%" VALIGN="TOP"></TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR color="#000080">
  </TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP"><FONT face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="5%" VALIGN="TOP">
<B><P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">$</FONT></B></TD>
<TD WIDTH="19%" VALIGN="TOP">
<B><P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">63,614</FONT></B></TD>
<TD WIDTH="5%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">$</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">67,835</FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP"></TD>
<TD WIDTH="33%" VALIGN="TOP"></TD>
<TD WIDTH="5%" VALIGN="TOP">
  </TD>
<TD WIDTH="19%" VALIGN="TOP">
<HR color="#000080" size="4">
  </TD>
<TD WIDTH="5%" VALIGN="TOP">
  </TD>
<TD WIDTH="15%" VALIGN="TOP">
<HR color="#000080" size="4">
  </TD>
</TR>
</TABLE>
<p></p>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=590>
<TR><TD WIDTH="8%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">4.</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">Special Charges and Disposition of Towing Services Assets</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">During the second quarter of fiscal 2000, the Company announced plans to rationalize its towing services operations.  The Company recorded pretax special 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, 2001, execution of the rationalization plan was complete and approximately $4,856,000 had been charged against the related reserves.  The remaining reserve will be utilized as payments are made under the terms of employment termination agreements.</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">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&#146;s towing and recovery equipment segment were not fully recoverable.</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">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.</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">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.</FONT></TD>
</TR>
</TABLE>

<P align="center"><FONT face="Times New Roman" size="2">7</FONT></P>

<FONT SIZE=3>
<HR size="3" color="#000080">
<DIV STYLE="page-break-before: always; width: 669; height: 21">&nbsp;</DIV>
</FONT>
<TABLE BORDER="0" CELLSPACING=0 CELLPADDING=0 WIDTH=590>

<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">During the six months ended October 31, 2001, the Company continued efforts to reduce expenses in the towing services segment. As part of these efforts, the Company disposed of assets in two underperforming market, as well as certain assets in other
markets.  Total proceeds from these sales were approximately $1,447,000. No significant gains or losses were realized upon the sale of these assets.  The Company continues to investigate financial alternatives with respect to the overall towing services segment in order to enhance shareholder value.</FONT></TD>
</TR>
</TABLE>

<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=590>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">5.</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">Long-Term Obligations</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">In July 2001, the Company entered into a new four year senior credit facility (the &quot;Credit Facility&quot;) with a syndicate of lenders to replace the existing credit facility.  As part of this agreement, the existing credit facility was reduced with proceeds from the Credit Facility and amended to provide for a $14.0 million subordinated secured facility.  The Credit Facility consists of a $102.0 million revolving credit facility and an $8.0 million term loan.  At October 31, 2001,  $97.1 million was outstanding under these obligations.</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">Availability under the revolving Credit Facility is based on a formula of eligible accounts receivable, inventory and fleet vehicles.  Borrowings under the term loan are secured by the Company&#146;s property, plant, and equipment.  The Company is required to make monthly amortization payments on the term loan of $167,000.  The Credit Facility bears interest at the option of the Company at either the rate of LIBOR plus 2.75% or prime rate (as defined) plus 0.75% on the revolving portion and LIBOR plus 3.0% or prime rate (as defined) plus 1.0% on the term portion.</FONT></P>
  </TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">The Credit Facility matures in July 2005 and is secured by substantially all the assets of the Company.  The Credit Facility contains requirements related to maintaining minimum excess availability at all times and minimum quarterly levels of earnings before income taxes, depreciation and amortization (as defined) and a minimum quarterly fixed charge coverage ratio (as defined).  In addition, the Credit Facility contains restrictions on capital expenditures, incurrence of indebtedness, mergers and acquisitions, distributions and transfers and sales of assets.  The Credit Facility also contains requirements related to weekly and monthly collateral reporting.</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">The subordinated secured facility is by its terms expressly subordinated only to the Credit Facility.  The subordinated secured facility matures in July 2003 and bears interest at 6.0% over the prime rate.  The Company is required to make quarterly amortization payments on the subordinated secured facility of $875,000 beginning not later than May 2002 provided that certain conditions are met, including satisfying a fixed charge coverage ratio test and a minimum availability limit.  The subordinated secured facility is secured by certain specified assets of the Company and by a second priority lien and security interest in substantially all other assets of the Company.  The subordinated secured facility contains requirements for certain fees to be paid at six month intervals beginning in January 2002 based on the outstanding balance of the subordinated secured facility at the time.  The subordinated secured facility also contains provisions for the issuance of warrants
 for up to 0.5% of the outstanding shares of the Company&#146;s common stock in July 2002 and up to an additional 1.5% in July, 2003.  The number of warrants which may be issued would be reduced pro rata as the balance of the subordinated secured facility is reduced.</FONT></TD>
</TR>
</TABLE>

<P align="center"><FONT face="Times New Roman" size="2">8</FONT></P>

<FONT SIZE=3>
<HR size="3" color="#000080">
<DIV STYLE="page-break-before: always; width: 669; height: 21">&nbsp;</DIV>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=590>

<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">The subordinated secured credit facility contains, among other restrictions, requirements for the maintenance of certain financial covenants and imposes restrictions on capital expenditures, incurrence of indebtedness, mergers and acquisitions, distributions and transfers and sales of assets.</FONT></TD>
</TR>
</TABLE>

<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=590>
<TR>
  <TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">6.</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">Litigation</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">The Company is a party to litigation arising in the normal course of its business.  The ultimate disposition of such matters cannot be determined presently, but, in the opinion of management, based in part on the advice of legal counsel, will not have a material adverse effect on the financial position or results of operations of the Company.</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">&nbsp;</TD>
<TD WIDTH="92%" VALIGN="TOP">
  &nbsp;
  </TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><font size="2" face="Times New Roman">7.</font></TD>
<TD WIDTH="92%" VALIGN="TOP">
<font size="2" face="Times New Roman">Income Taxes</font></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"></TD>
<TD WIDTH="92%" VALIGN="TOP">
  &nbsp;
  </TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"></TD>
<TD WIDTH="92%" VALIGN="TOP">
  <font size="2" face="Times New Roman">As of October 31, 2001, the Company had
  net deferred tax assets of $10.9 million, including an income tax benefit of
  $0.6 million for the six months then ended.&nbsp; Management's assessment is
  that the character and nature of future taxable income may not allow the
  company to realize the certain tax benefits of net operating losses and tax
  credits within the prescribed carryforward period.&nbsp; Accordingly, a
  valuation allowance of $0.6 million has been recorded as of and for the six
  months ended October 31, 2001.</font>
  </TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">8.</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">Comprehensive Income</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">The Company has other comprehensive
income (loss) in the form of cumulative translation adjustments which resulted in total other comprehensive income (loss) of approximately $273,000 and $(496,000) for the three months ended October 31, 2001 and 2000, respectively; and $140,000 and $(615,000) for the six months ended October 31, 2001 and 2000.</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
  </TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><font size="2" face="Times New Roman">9.</font></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT size="2" face="Times New Roman">Recent Accounting Pronouncements</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT size="2" face="Times New Roman">SFAS No. 133, &quot;Accounting for Derivative Instruments and Hedging Activities&quot;, as amended, is effective for the Company's fiscal year beginning May 1, 2001.  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&#146;s fair value be recognized currently in earnings unless specific hedge accounting criteria are met.  Special accounting for qualifying hedges allows a derivative&#146;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 hedge accounting.  At the date of adoption and October 31, 2001, the Company had no
material derivative instruments.</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT size="2" face="Times New Roman">In September 2000, the Emerging Issues Task Force (&quot;EITF&quot;) of the Financial Accounting Standards Board (&quot;FASB&quot;) reached a final consensus on Issue No. 00-10, &quot;Accounting for Shipping and Handling Fees and Costs&quot;.  EITF 00-10 is effective for fiscal year 2001 and addresses the income statement classification of amounts charged to customers for shipping and handling, as well as costs incurred related to shipping and handling.  The Company classifies shipping and handling costs billed to the customer as revenues and costs incurred related to shipping and handling as cost of sales, which is in accordance with the consensus in EITF 00-10.</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT size="2" face="Times New Roman">In June 2001, the FASB issued SFAS No. 141, &quot;Business Combinations&quot; and SFAS No. 142, &quot;Goodwill and Other Intangible Assets&quot; (collectively the &quot;Standards&quot;).  The Standards will be effective for fiscal years beginning after December 15, 2001.  Companies with fiscal years beginning after March 15, 2001 may early adopt, but only as of the beginning of that fiscal year and only if all existing goodwill is evaluated for&nbsp;</FONT></TD>
</TR>
</TABLE>

<P align="center"><FONT face="Times New Roman" size="2">9</FONT></P>

<FONT SIZE=3>
<HR size="3" color="#000080">
<DIV STYLE="page-break-before: always; width: 669; height: 21">&nbsp;</DIV>
</FONT>

<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=590>
<TR><TD WIDTH="8%" VALIGN="TOP"></TD>
<TD WIDTH="92%" VALIGN="TOP">
<FONT size="2" face="Times New Roman"> impairment by the end of that fiscal year.  SFAS No. 141 will require companies to recognize acquired identifiable intangible assets separately from goodwill if control over the future economic benefits of the asset results from contractual or other legal rights or the intangible asset is capable of being separated or divided and sold, transferred, licensed, rented, or exchanged.  The Standards will require the value of a separately identifiable intangible asset meeting any of the criteria to be measured at its fair value.  SFAS No. 142 will require that goodwill not be amortized and that amounts recorded as goodwill be tested for impairment.  Upon adoption of SFAS No. 142, goodwill will be reduced if it is found to be impaired.  Annual impairment tests will have to be performed at the lowest level of an entity that is a business and that can be distinguished, physically and operationally and for internal reporting purposes, from the other activities,<FONT FACE="Book An
tiqua" SIZE=3> </FONT>operations, and assets of the entity.  The Company
will adopt these standards on January 1, 2002.&nbsp; However, the Company has not yet determined the impact of the new goodwill impairment standards.</FONT></TD>
</TR>
</TABLE>

<P>&nbsp;</P>

<P align="center"><FONT face="Times New Roman" size="2">10</FONT></P>

<FONT SIZE=3>
<HR size="3" color="#000080">
<DIV STYLE="page-break-before: always; width: 669; height: 21">&nbsp;</DIV>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=590>
<TR><TD WIDTH="8%" VALIGN="TOP">
<P><font face="Times New Roman" size="2">10.</font></TD>
<TD WIDTH="92%" VALIGN="TOP">
<P><FONT face="Times New Roman" size="2">Segment Information</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT face="Times New Roman" size="2">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP"><FONT face="Times New Roman" size="2">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT face="Times New Roman" size="2">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<P><FONT face="Times New Roman" size="2">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, 2001 and 2000 (in thousands):</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P>&nbsp;</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=565>
<TR><TD WIDTH="40%" VALIGN="BOTTOM"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">Towing and<BR>
Recovery<BR>
Equipment</FONT></TD>
<TD WIDTH="12%" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">Towing<BR>
Services</FONT></TD>
<TD WIDTH="17%" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">Eliminations</FONT></TD>
<TD WIDTH="16%" VALIGN="BOTTOM">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">Consolidated</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
  <HR color="#000080" width="90%" align="right">
  </TD>
<TD WIDTH="12%" VALIGN="TOP">
  <HR color="#000080" align="right" width="90%">
  </TD>
<TD WIDTH="17%" VALIGN="TOP">
  <HR color="#000080" align="right" width="90%">
  </TD>
<TD WIDTH="16%" VALIGN="TOP">
  <HR color="#000080" align="right" width="90%">
  </TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP">

<B><P><FONT size="2" face="Times New Roman">For the three months ended <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;October  31,  2001</FONT></P>
</B></TD>
<TD WIDTH="15%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP"><P style="margin-left: 30"><FONT size="2" face="Times New Roman">Net sales-external</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"> <FONT size="2" face="Times New Roman"> 76,624</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">38,298&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">114,922&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP"><P style="margin-left: 30"><FONT size="2" face="Times New Roman">Net sales-internal</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">74</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">(74)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP"><P style="margin-left: 30"><FONT size="2" face="Times New Roman">Operating income (loss)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">2,526</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"> <FONT size="2" face="Times New Roman"> (251)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">38&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">2,313&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP"><P style="margin-left: 30"><FONT size="2" face="Times New Roman">Interest expense, net</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">1,421</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">781&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">2,202&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP"><P style="margin-left: 30"><FONT size="2" face="Times New Roman">Income (loss) before income taxes</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">1,105</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">(1,032)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">38&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">111&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP"><P style="margin-left: 30"><FONT size="2" face="Times New Roman">Total assets</FONT></P>
  </TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">251,012</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">91,890&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"> <FONT size="2" face="Times New Roman"> (70,744)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">272,158&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP">

<B><P><FONT size="2" face="Times New Roman">For the three months ended<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;October 31, 2000</FONT></P>
</B></TD>
<TD WIDTH="15%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP"><P style="margin-left: 30"><FONT size="2" face="Times New Roman">Net sales-external</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">82,100</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">47,580&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">129,680&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP"><P style="margin-left: 30"><FONT size="2" face="Times New Roman">Net sales-internal</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP"><P style="margin-left: 30"><FONT size="2" face="Times New Roman">Operating income (loss)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">3,253</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">(1,348)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">1,905&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP"><P style="margin-left: 30"><FONT size="2" face="Times New Roman">Interest expense, net</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">2,420</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">2,243&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">4,663&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP"><P style="margin-left: 30"><FONT size="2" face="Times New Roman">Income (loss) before income taxes</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">833</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">(3,591)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">(2,758)</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP"><P style="margin-left: 30"><FONT size="2" face="Times New Roman">Total assets</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">261,852</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">101,749&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">(57,882)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">305,719&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" COLSPAN=3>

<B><P><FONT size="2" face="Times New Roman">For the six months ended<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;October 31, 2001</FONT>
</B></TD>
<TD WIDTH="17%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP"><P style="margin-left: 30"><FONT size="2" face="Times New Roman">Net sales-external</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">153,859</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">78,009&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">231,868&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP"><P style="margin-left: 30"><FONT size="2" face="Times New Roman">Net sales-internal</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">415</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">(415)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">-&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP"><P style="margin-left: 30"><FONT size="2" face="Times New Roman">Operating income (loss)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">4,353</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">(648)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">41&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">3,746&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP"><P style="margin-left: 30"><FONT size="2" face="Times New Roman">Interest expense, net</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">2,975</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">3,019&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">5,994&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP"><P style="margin-left: 30"><FONT size="2" face="Times New Roman">Income (loss) before income taxes</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">1,378</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">(3,667)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">41&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">(2,248)</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP"><P style="margin-left: 30"><FONT size="2" face="Times New Roman">Total assets</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">251,012</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">91,890&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">(70,744)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">272,158&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP">

<B><P><FONT size="2" face="Times New Roman">For the six months ended<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;October 31, 2000</FONT>
</B></TD>
<TD WIDTH="15%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP"><P style="margin-left: 30"><FONT size="2" face="Times New Roman">Net sales-external</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">159,656</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">97,176&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">256,832&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP"><P style="margin-left: 30"><FONT size="2" face="Times New Roman">Net sales-internal</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"> <FONT size="2" face="Times New Roman"> -&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP"><P style="margin-left: 30"><FONT size="2" face="Times New Roman">Operating income (loss)</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">5,713</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">(3,014)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">2,699&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP"><P style="margin-left: 30"><FONT size="2" face="Times New Roman">Interest expense, net</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">3,873</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">4,119&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">7,992&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP"><P style="margin-left: 30"><FONT size="2" face="Times New Roman">Income (loss) before income taxes</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">1,203</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">(7,133)</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">(5,930)</FONT></TD>
</TR>
<TR><TD WIDTH="40%" VALIGN="TOP"><P style="margin-left: 30"><FONT size="2" face="Times New Roman">Total assets</FONT></TD>
<TD WIDTH="15%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">261,852</FONT></TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">101,749&nbsp;</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">(57,882)</FONT></TD>
<TD WIDTH="16%" VALIGN="TOP">
<P ALIGN="RIGHT"><FONT size="2" face="Times New Roman">305,719&nbsp;</FONT></TD>
</TR>
</TABLE>

<P align="center"><FONT face="Times New Roman" size="2">11</FONT></P>

<FONT SIZE=3>
<HR size="3" color="#000080">
<DIV STYLE="page-break-before: always; width: 669; height: 21">&nbsp;</DIV>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=590>
<TR><TD WIDTH="8%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">11.</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">Reclassifications</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="92%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">Certain amounts in the prior period financial information have been reclassified to conform to the current presentation.</FONT>
<P>&nbsp;</TD>
</TR>
</TABLE>

<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=590>
<TR><TD WIDTH="10%" VALIGN="TOP">
<B><P><FONT size="2" face="Times New Roman">Item 2.</FONT></B></TD>
<TD WIDTH="90%" VALIGN="TOP">
<B><P><FONT size="2" face="Times New Roman">Management's Discussion and Analysis of Financial Condition and Results of Operations</FONT></B></TD>
</TR>
</TABLE>

<I><P style="margin-left: 60"><FONT size="2" face="Times New Roman">Recent Developments</FONT></P>
</I>
<B><P style="margin-left: 60"><FONT size="2" face="Times New Roman">Towing Services Initiatives</FONT></P>
</B>
<P style="margin-left: 60"><FONT size="2" face="Times New Roman">During the six months ended October 31, 2001, the Company continued its efforts to reduce expenses in the towing services segment.  As part of these efforts, the Company disposed of assets in two underperforming
markets, as well as assets in certain other
markets for proceeds of approximately $1,447,000.  No significant gains or losses were realized upon the sale of these assets.  The Company continues to investigate all financial alternatives with respect to the overall towing services segment in order to enhance shareholder value.</FONT> </P>

<B><P style="margin-left: 60"><FONT size="2" face="Times New Roman">Change in Fiscal Year</FONT></P>
</B><P style="margin-left: 60"><FONT size="2" face="Times New Roman">On September 25, 2001, the Company announced that its Board of Directors had approved a change in the Company&#146;s fiscal year, from April 30 to December 31, effective December 31, 2001.  The Company will file with the Securities and Exchange Commission a Form 10-K report for the eight month period ended December 31, 2001 in March 2002 to effect the change.  The change to a December 31 fiscal year will enable the Company to report results on a conventional calendar basis beginning in 2002.</FONT></P>
<I><P style="margin-left: 60"><FONT size="2" face="Times New Roman">Results of Operations--Three Months Ended October 31, 2001 Compared to Three Months Ended October 31, 2000</FONT></P>
</I>
<P style="margin-left: 60"><FONT size="2" face="Times New Roman">Net sales for the three months ended October 31, 2001, decreased 11.4% to $114.9 million from $129.7 million for the comparable period in 2000.  Net sales in the towing and recovery equipment segment decreased 6.7% from $82.1 million to $76.6 million as demand for the Company&#146;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 19.5% from $47.6 million to $38.3 million primarily due to the disposition of twelve underperforming markets during the fiscal year ended April 30, 2001 and during the current fiscal year.</FONT></P>

<P style="margin-left: 60"><FONT size="2" face="Times New Roman">Costs of operations for the three months ended October 31, 2001, decreased 10.2% to $99.8 from $111.1 million for the comparable period in 2000.  Costs of operations of the towing and recovery equipment segment increased as a percentage of net sales from 87.1% to 88.1%.  The increase as a percentage of net sales was primarily due to declines in sales volume as discussed above.  In the towing services segment, costs of operations as a percentage of net sales increased from 83.3% to 84.3% primarily due to an increase in labor costs.</FONT>  </P>

<P style="margin-left: 60"><FONT size="2" face="Times New Roman">Selling, general, and administrative expenses for the three months ended October 31, 2001, decreased 23.1% to $12.8 million from $16.7 million for the comparable period of 2000.  The decrease was due primarily to the continued cost reduction efforts implemented in prior fiscal years.</FONT></P>

<P align="center"><FONT face="Times New Roman" size="2">12</FONT></P>

<FONT SIZE=3>
<HR size="3" color="#000080">
<DIV STYLE="page-break-before: always; width: 669; height: 21">&nbsp;</DIV>
</FONT>

<P style="margin-left: 60"><FONT size="2" face="Times New Roman">Net interest expense decreased $2.5 million to $2.2 million for the three months ended October 31, 2001 from $4.7 million for the three months ended October  31, 2000, primarily due to lower interest rates on the Company&#146;s line of credit, which was refinanced in July 2001.</FONT></P>

<P style="margin-left: 60"><FONT size="2" face="Times New Roman">Income taxes are accounted for on a consolidated basis and are not allocated by segment.  Tax expenses for the quarter relate primarily to income taxes of foreign subsidiaries.  The effective rate of the provision for (benefit from) income taxes was 81.1% for the three months ended October 31, 2001 and (33.6)% for the three months ended October 31, 2000.</FONT></P>

<I><P style="margin-left: 60"><FONT size="2" face="Times New Roman">Results of Operations--Six Months Ended October 31, 2001 Compared to Six Months Ended October 31, 2000</FONT></P>
</I>
<P style="margin-left: 60"><FONT size="2" face="Times New Roman">Net sales for the six months ended October 31, 2001, decreased 9.7% to $231.9 million from
$256.8 million for the comparable period in 2000.  Net sales in the towing and recovery equipment segment decreased
3.6% from $159.7 million to $153.9 million as demand for the Company&#146;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 19.7% from $97.2 million to $78.0 million primarily due to the disposition of twelve underperforming markets during the fiscal year ended April 30, 2001and the six months ended October 31, 2001.</FONT></P>

<P style="margin-left: 60"><FONT size="2" face="Times New Roman">Costs of operations for the six months ended October 31, 2001, decreased 8.3% to $201.2 from $219.4 million for the comparable period in 2000.  Costs of operations of the towing and recovery equipment segment increased as a percentage of net sales from 86.9% to 88.4%.  The increase as a percentage of net sales was primarily due to declines in sales volume as discussed above.  In the towing services segment, costs of operations as a percentage of net sales increased slightly from 83.1% to 83.7% primarily due to an increase in labor costs.</FONT>  </P>

<P style="margin-left: 60"><FONT size="2" face="Times New Roman">Selling, general, and administrative expenses for the six months ended October 31, 2001, decreased
22.5% to $26.9 million from $34.7 million for the comparable period of 2000.  The decrease was due primarily to the continued cost reduction efforts implemented in prior fiscal years.</FONT></P>

<P style="margin-left: 60"><FONT size="2" face="Times New Roman">Net interest expense decreased
$2.6 million to $6.0 million for the six months ended October 31, 2001 from $8.6 million for the six months ended October  31, 2000, primarily due to lower interest rates on the Company&#146;s line of credit, which was refinanced in July 2001.</FONT></P>

<P style="margin-left: 60"><FONT size="2" face="Times New Roman">Income taxes are accounted for on a consolidated basis and are not allocated by segment.    Tax expenses for the six months ended October 31, 2001 relate primarily to income taxes of foreign subsidiaries.  The effective rate of the provision for (benefit from) income taxes was
not meaningful for the six months ended October 31, 2001 and (33.8)% for the six months ended October 31, 2000.</FONT></P>

<P style="margin-left: 60"><font size="2" face="Times New Roman">As of October
31, 2001, the Company had net deferred tax assets of $10.9 million, including an
income tax benefit of $0.6 million for the six months then ended.&nbsp;
Management's assessment is that the character and nature of future taxable
income may not allow the company to realize the certain tax benefits of net
operating losses and tax credits within the prescribed carryforward
period.&nbsp; Accordingly, a valuation allowance of $0.6 million has been
recorded as of and for the six months ended October 31, 2001.</font></P>

<P align="center"><FONT face="Times New Roman" size="2">13</FONT></P>

<FONT SIZE=3>
<HR size="3" color="#000080">
<DIV STYLE="page-break-before: always; width: 669; height: 21">&nbsp;</DIV>
</FONT>
<I>
<P style="margin-left: 60"><FONT size="2" face="Times New Roman">Liquidity and Capital Resources</FONT></P>

</I><P style="margin-left: 60"><FONT size="2" face="Times New Roman">Cash provided by operating activities was $10.8 million for the six months ended October 31, 2001 compared to $8.5 million for the comparable period of 2000.  The cash provided by operating activities for the six months ended October 31, 2001 was primarily the result of decreases in inventory.</FONT></P>

<P style="margin-left: 60"><FONT size="2" face="Times New Roman">Cash used in investing activities was $0.3 million for the six months ended October 31, 2001 compared to $4.1 million provided by investing activities for the comparable period in 2000.  The cash used in investing activities was primarily for the purchase of equipment in the towing services segment.</FONT></P>

<P style="margin-left: 60"><FONT size="2" face="Times New Roman">Cash used in financing activities was $8.2 million for the six months ended October 31, 2001 and $8.7 million for the comparable period in the prior year.  The cash was used primarily to reduce borrowing under Company's credit facilities and other outstanding long-term debt and capital lease obligations.</FONT></P>

<P style="margin-left: 60"><FONT size="2" face="Times New Roman">In July 2001, the Company entered into a new four year senior credit facility (the &quot;Credit Facility&quot;) with a syndicate of lenders to replace the existing credit facility.  As part of this agreement, the existing credit facility was reduced with proceeds from the Credit Facility and amended to provide for a $14.0 million subordinated secured facility.  The Credit Facility consists of a $102.0 million revolving credit facility and an $8.0 million term loan.  At October 31, 2001,  $97.1 million was outstanding under these obligations.</FONT>  </P>

<P style="margin-left: 60"><FONT size="2" face="Times New Roman">Availability under the Credit Facility is based on a formula of eligible accounts receivable, inventory and fleet vehicles.  Borrowings under the term loan are secured by the Company&#146;s property, plant, and equipment.  The Company is required to make monthly amortization payments on the term loan of $167,000.  The Credit Facility bears interest at the option of the Company at either the rate of LIBOR plus 2.75% or prime rate (as defined) plus 0.75% on the revolving portion and LIBOR plus 3.0% or prime rate (as defined) plus 1.00% on the term portion.</FONT></P>

<P style="margin-left: 60"><FONT size="2" face="Times New Roman">The Credit Facility matures in July 2005 and is secured by substantially all the assets of the Company.  The Credit Facility contains requirements related to maintaining minimum excess availability at all times and minimum quarterly levels of earnings before income taxes, depreciation and amortization (as defined) and a minimum quarterly fixed charge coverage ratio (as defined).  In addition, the Credit Facility contains restrictions on capital expenditures, incurrence of indebtedness, mergers and acquisitions, distributions and transfers and sales of assets.  The Credit Facility also contains requirements related to weekly and monthly collateral reporting.</FONT></P>

<P style="margin-left: 60"><FONT size="2" face="Times New Roman">The subordinated secured facility is by its terms expressly subordinated only to the Credit Facility.  The subordinated secured credit facility matures in July 2003 and bears interest at 6.0% over the prime rate.  The Company is required to make quarterly amortization payments on the subordinated secured facility of $875,000 beginning not later than May 2002 provided that certain conditions are met, including satisfying a fixed charge coverage ratio test and a minimum availability limit.  The subordinated secured facility is secured by certain specified assets of the Company and by a second priority lien and security interest in substantially all other assets of the Company.  The subordinated secured facility contains requirements for certain fees to be paid at six month intervals beginning in January 2002 based on the outstanding balance of the subordinated secured facility at the time.  The subordinated secured facility also contains provisio
ns for the issuance of warrants for up to 0.5% of the outstanding shares of the Company&#146;s common stock in July 2002 and up to an additional 1.5% in July 2003.  The number of warrants which may be issued would be reduced pro rata as the balance of the subordinated secured facility is reduced.</FONT></P>

<P align="center"><FONT face="Times New Roman" size="2">14</FONT></P>

<FONT SIZE=3>
<HR size="3" color="#000080">
<DIV STYLE="page-break-before: always; width: 669; height: 21">&nbsp;</DIV>
</FONT>

<P style="margin-left: 60"><FONT size="2" face="Times New Roman">The subordinated secured credit facility contains, among other restrictions, requirements for the maintenance of certain financial covenants and imposes restrictions on capital expenditures, incurrence of indebtedness, mergers and acquisitions, distributions and transfers and sales of assets.</FONT> </P>

  <P style="margin-left: 60"><font size="2" face="Times New Roman">In connection
  with the Credit Facility, during the quarter ended October 31, 2001, the
  Company put in place derivative transactions that have no material impact on
  financial position or results of operations.</font> </P>

<P style="margin-left: 60"><FONT size="2" face="Times New Roman">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.  No assurance in this regard can be given, however, since future cash flows and the availability of financing will depend on a number of factors, including prevailing economic conditions and financial, business and other factors beyond the Company&#146;s control.</FONT></P>
<FONT SIZE=2>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
<P>&nbsp;</P>
</FONT>
<P align="center"><FONT face="Times New Roman" size="2">15</FONT></P>

<FONT SIZE=3>
<HR size="3" color="#000080">
<DIV STYLE="page-break-before: always; width: 669; height: 21">&nbsp;</DIV>
<B><P><FONT face="Times New Roman">PART II.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OTHER INFORMATION</FONT></P>

</B>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=590>
<TR><TD WIDTH="12%" VALIGN="TOP">
<B><P ALIGN="JUSTIFY"><FONT size="2" face="Times New Roman">Item 1.</FONT></B></TD>
<TD WIDTH="88%" VALIGN="TOP">
<B><P ALIGN="JUSTIFY"><A NAME="legalproceedins"><FONT size="2" face="Times New Roman">Legal Proceedings</FONT></A></B></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="88%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="88%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">The Company is a party to litigation arising in the normal course of its business.  The ultimate disposition of such matters cannot be determined presently, but, in the opinion of management, based in part on the advice of legal counsel, will not have a material adverse effect on the financial position or results of operations of the Company.</FONT></TD>
</TR>
</TABLE>

<B><P><FONT size="2" face="Times New Roman">Item 4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<A name="submission">Submission of Matters to a Vote of Security Holders</A></FONT></P>
<FONT SIZE=2>

<P style="margin-left: 70"></FONT></B><FONT size="2" face="Times New Roman">The Annual Meeting of Shareholders was held on Monday, September 24, 2001 in Norcross, Georgia, at which the following matters were submitted to a vote of the shareholders:</FONT></P>
<OL style="font-size: 10pt" type="a">
  <LI>
    <P style="margin-left: 70"><FONT size="2" face="Times New Roman">Votes cast for or withheld regarding the election of five (5) Directors for a term of one (1) year were as follows:</FONT></LI>
</OL>
<FONT SIZE=3>
<TABLE border="0" width="534" cellspacing="0" cellpadding="0">
  <TR>
    <TD width="98"></TD>
    <TD width="242"></TD>
</FONT>
  <TD width="94" align="center">
    <P align="center"><FONT size="2" face="Times New Roman">    <U>FOR</U></FONT></TD>
  <TD width="92" align="center"><U><FONT size="2" face="Times New Roman">WITHHELD</FONT>
</U></TD>
</TR>
<FONT SIZE=3>
<TR>
  <TD width="98"></TD>
  <TD width="242"></TD>
  <TD width="94" align="center"></TD>
  <TD width="92" align="center"></TD>
</TR>
<TR>
  <TD width="98"><P></P>
  </TD>
</FONT>
<TD width="242"><P><FONT size="2" face="Times New Roman">Jeffrey I. Badgley</FONT></P>
</TD>
<TD width="94" align="center"><P><FONT size="2" face="Times New Roman">38,168,107</FONT></P>
</TD>
<TD width="92" align="center"><P><FONT size="2" face="Times New Roman">1,025,521</FONT></P>
</TD>
</TR>
<FONT SIZE=3>
<TR>
  <TD width="98">
<P></P>
  </TD>
</FONT>
<TD width="242">
<P><FONT size="2" face="Times New Roman">A. Russell Chandler III</FONT></P>
</TD>
<TD width="94" align="center">
<P><FONT size="2" face="Times New Roman">38,172,434</FONT></P>
</TD>
<TD width="92" align="center">
<P><FONT size="2" face="Times New Roman">1,021,194</FONT></P>
</TD>
</TR>
<FONT SIZE=3>
<TR>
  <TD width="98">
<P></P>
  </TD>
</FONT>
<TD width="242">
<P><FONT size="2" face="Times New Roman">Paul A. Drack</FONT></P>
</TD>
<TD width="94" align="center">
<P><FONT size="2" face="Times New Roman">38,167,934</FONT></P>
</TD>
<TD width="92" align="center">
<P><FONT size="2" face="Times New Roman">1,025,694</FONT></P>
</TD>
</TR>
<FONT SIZE=3>
<TR>
  <TD width="98">
<P></P>
  </TD>
</FONT>
<TD width="242">
<P><FONT size="2" face="Times New Roman">William G. Miller</FONT></P>
</TD>
<TD width="94" align="center">
<P><FONT size="2" face="Times New Roman">38,163,514</FONT></P>
</TD>
<TD width="92" align="center">
<P><FONT size="2" face="Times New Roman">1,030,114</FONT></P>
</TD>
</TR>
<FONT SIZE=3>
<TR>
  <TD width="98">
<P></P>
  </TD>
</FONT>
<TD width="242">
<P><FONT size="2" face="Times New Roman">Richard H. Roberts</FONT></P>
</TD>
<TD width="94" align="center">
<P><FONT size="2" face="Times New Roman">38,170,824</FONT></P>
</TD>
<TD width="92" align="center">
<P><FONT size="2" face="Times New Roman">1,022,804</FONT></P>
</TD>
</TR>
</TABLE>
<FONT SIZE=3>
<OL style="font-size: 10pt" type="a" start="2">
</FONT>
<LI>
  <P style="margin-left: 70"><FONT size="2" face="Times New Roman">Votes cast for or against and the number of abstentions regarding the proposal to amend Article Eight of the Charter of the Company to authorize a reverse split of the shares of the Company Common Stock at a ratio of one-for-five were as follows:</FONT></LI>
</OL>
<TABLE border="0" width="367" cellspacing="0" cellpadding="0">
  <TR>
    <TD width="103">

<P></P>
    </TD>
    <TD width="170">

<P><FONT size="2" face="Times New Roman">For</FONT></P>
    </TD>
    <TD width="72">

<P align="right"><FONT size="2" face="Times New Roman">36,849,631</FONT></P>
    </TD>
  </TR>
  <TR>
    <TD width="103">
<P></P>
    </TD>
    <TD width="170">
<P><FONT size="2" face="Times New Roman">Against</FONT></P>
    </TD>
    <TD width="72">
<P align="right"><FONT size="2" face="Times New Roman">  2,293,324</FONT></P>
    </TD>
  </TR>
  <TR>
    <TD width="103">
<P></P>
    </TD>
    <TD width="170">
<P><FONT size="2" face="Times New Roman">Abstained</FONT></P>
    </TD>
    <TD width="72">
<P align="right"><FONT size="2" face="Times New Roman">       50,673</FONT></P>
    </TD>
  </TR>
</TABLE>

<DIR>
<DIR>
<DIR>
<DIR>
<DIR>

<FONT SIZE=2><P>&#9;</P></DIR>
</DIR>
</DIR>
</DIR>
</DIR>
</FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=589>
<TR><TD WIDTH="12%" VALIGN="TOP">
<B><P><FONT size="2" face="Times New Roman">Item 6.</FONT></B></TD>
<TD WIDTH="88%" VALIGN="TOP" COLSPAN=2>
<B><P><FONT size="2" face="Times New Roman">Exhibits and Reports on Form 8-K</FONT></B></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="88%" VALIGN="TOP" COLSPAN=2><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="7%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">(a)</FONT></TD>
<TD WIDTH="81%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">Exhibits. &#150; None</FONT></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="7%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="81%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="12%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="7%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">(b)</FONT></TD>
<TD WIDTH="81%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">Reports on Form 8-K &#150; The Registrant filed a report on Form 8-K on   October 4, 2001 under Item 5 and Item 8.</FONT></TD>
</TR>
</TABLE>

<FONT SIZE=3>
<P>&nbsp;</P>
<P>&nbsp;</P>
</FONT>
<P align="center"><FONT face="Times New Roman" size="2">16</FONT></P>

<FONT SIZE=3>
<HR size="3" color="#000080">
<DIV STYLE="page-break-before: always; width: 669; height: 21">&nbsp;</DIV>
</FONT>
<P ALIGN="CENTER"><FONT size="2" face="Times New Roman">SIGNATURES</FONT></P>
<P style="text-indent: 60"><FONT size="2" face="Times New Roman">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.</FONT></P>

<FONT SIZE=3>

<P>&nbsp;</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=0 WIDTH=590>
<TR><TD WIDTH="50%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="50%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">MILLER INDUSTRIES, INC.</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="50%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="50%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="50%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">By<U><FONT COLOR="#0000ff">:&nbsp;&nbsp;&nbsp;<B><I>/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;</I></B></FONT></U></FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="50%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J. Vincent Mish</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="50%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vice President and</FONT></TD>
</TR>
<TR><TD WIDTH="50%" VALIGN="TOP"><FONT size="2" face="Times New Roman">&nbsp;</FONT></TD>
<TD WIDTH="50%" VALIGN="TOP">
<P><FONT size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer</FONT></TD>
</TR>
</TABLE>

<P><FONT size="2" face="Times New Roman">Date: December 17, 2001</FONT></P>
<FONT SIZE=2>
<P>&nbsp;</P></FONT></BODY>
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`
end

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