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Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001107049-02-000636.txt : 20021118
<SEC-HEADER>0001107049-02-000636.hdr.sgml : 20021118
<ACCEPTANCE-DATETIME>20021115153849
ACCESSION NUMBER:		0001107049-02-000636
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20020930
FILED AS OF DATE:		20021114

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:		02829890

	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>miller930_10q.htm
<DESCRIPTION>QUARTERLY REPORT
<TEXT>
<html>
<head>
<title>Prepared for Miller Industries, Inc. by Kilpatrick Stockton EDGAR Services</title>
</head>
<body link="blue" vlink="purple">
<p align="center"><b><font size="2" face="Times New Roman">SECURITIES AND EXCHANGE COMMISSION<br />
WASHINGTON, DC 20549</font></b></p>

<p align="center"><b><font size="4" face="Times New Roman">FORM 10-Q</font></b></p>

<p align="center"><font size="2" face="Times New Roman">QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)<br />
OF THE SECURITIES EXCHANGE ACT OF 1934<br />
For the quarterly period ended September 30, 2002<br />
Commission File No. 0-24298</font></p>

<p align="center"><font size="2" face="Times New Roman"></font></p>

<p align="center"><b><font size="2" face="Times New Roman">MILLER INDUSTRIES, INC.<br>
</font></b><font size="2" face="Times New Roman">(Exact name of registrant as specified in its charter)</font></p>

<p align="center"><font size="2" face="Times New Roman"></font></p>

<div align="center">
  <center>

<table border="0" cellspacing="0" cellpadding="0" width="445">
<tr>
<td valign="top" width="248">
<p align="center"><b><font size="2" face="Times New Roman">Tennessee</font></b></p>
</td>
<td valign="top" width="193">
<p align="center"><b><font size="2" face="Times New Roman">62-1566286</font></b></p>
</td>
</tr>

<tr>
<td valign="top" width="248">
<p align="center"><font size="2" face="Times New Roman">(State or other jurisdiction of</font></p>
</td>
<td valign="top" width="193">
<p align="center"><font size="2" face="Times New Roman">(I.R.S. Employer Identification No.)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="248">
<p align="center"><font size="2" face="Times New Roman">incorporation or organization)</font></p>
</td>
<td valign="top" width="193"></td>
</tr>

<tr>
<td valign="top" width="248"></td>
<td valign="top" width="193"></td>
</tr>
</table>

  </center>
</div>

<p><b><font size="2" face="Times New Roman"></font></b></p>

  <center>

<table border="0" cellspacing="0" cellpadding="0" width="454">
<tr>
<td valign="top" width="295">
<p align="center"><b><font size="2" face="Times New Roman">8503 Hilltop Drive</font></b></p>
</td>
<td valign="top" width="40"></td>
<td valign="top" width="169"></td>
</tr>

<tr>
<td valign="top" width="295">
<p align="center"><b><font size="2" face="Times New Roman">Ooltewah, Tennessee</font></b></p>
</td>
<td valign="top" width="40">
<p align="center"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" width="169">
<p align="center"><b><font size="2" face="Times New Roman">37363</font></b></p>
</td>
</tr>

<tr>
<td valign="top" width="295">
<p align="center"><font size="2" face="Times New Roman">(Address of principal executive offices)</font></p>
</td>
<td valign="top" width="40">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="169">
<p align="center"><font size="2" face="Times New Roman">(Zip Code)</font></p>
</td>
</tr>
</table>

  </center>

<p align="center"><font size="2" face="Times New Roman">Registrant's telephone number, including area
code:&nbsp;&nbsp;(423)&nbsp;&nbsp;238-4171</font></p>

<p><font size="2" face="Times New Roman">&nbsp;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><font size="2" face="Times New Roman"></font></p>

<p align="center"><font size="2" face="Times New Roman">YES&nbsp;&nbsp;<u><font color="red">X</font></u> <font color=
"red">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> NO __</font></p>

<p><font size="2" face="Times New Roman">&nbsp;The number of shares outstanding of the registrant's Common Stock, $.01 par value, as of
October 31, 2002 was 9,341,436.</font></p>

&nbsp;
<hr size="3" color="#000080">
<div STYLE="page-break-before: always">
  &nbsp;
</div>

<p align="center"><img border="0" src="millerlogo.gif" width="156" height="54"></p>

<h1 align="center"><b><font size="2" face="Times New Roman">INDEX</font></b></h1>

<p><font size="2" face="Times New Roman"></font></p>

  <center>

<table border="0" cellspacing="0" cellpadding="0" width="577">

<tr>
<td valign="top" width="102">
<p><b><font size="2" face="Times New Roman">PART I.</font></b></p>
</td>
<td colspan="2" valign="top" width="396">
<p><b><font size="2" face="Times New Roman">FINANCIAL INFORMATION</font></b></p>
</td>
<td valign="top" width="73">
<p align="center"><u><font size="2" face="Times New Roman">Page Number</font></u></p>
</td>
</tr>

<tr>
<td valign="top" width="102">&nbsp;</td>
<td valign="top" width="64"></td>
<td valign="top" width="330"></td>
<td valign="top" width="73"></td>
</tr>

<tr>
<td valign="top" width="102"></td>
<td valign="top" width="64">
<p><font size="2" face="Times New Roman">Item 1.</font></p>
</td>
<td valign="top" width="330">
<p><u><font size="2" face="Times New Roman"><a href="#item1">Financial Statements</a> (Unaudited)</font></u></p>
</td>
<td valign="top" width="73"></td>
</tr>

<tr>
<td valign="top" width="102">&nbsp;</td>
<td valign="top" width="64"></td>
<td valign="top" width="330"></td>
<td valign="top" width="73"></td>
</tr>

<tr>
<td valign="top" width="102"></td>
<td valign="top" width="64"></td>
<td valign="top" width="330">
<p><font size="2" face="Times New Roman"><a href="#condensedconsolidatedbalancesheets">Condensed Consolidated Balance Sheets</a>
- -</font></p>
</td>
<td valign="top" width="73"></td>
</tr>

<tr>
<td valign="top" width="102"></td>
<td valign="top" width="64"></td>
<td valign="top" width="330">
<p><font size="2" face="Times New Roman">September 30, 2002 and December 31, 2001</font></p>
</td>
<td valign="top" width="73">
<p align="center"><font size="2" face="Times New Roman">3</font></p>
</td>
</tr>

<tr>
<td valign="top" width="102">&nbsp;</td>
<td valign="top" width="64"></td>
<td valign="top" width="330"></td>
<td valign="top" width="73"></td>
</tr>

<tr>
<td valign="top" width="102"></td>
<td valign="top" width="64"></td>
<td valign="top" width="330">
<p><font size="2" face="Times New Roman"><a href="#condensedconsolidatedstmtsofincome">Condensed Consolidated Statements of
Operations</a></font></p>
</td>
<td valign="top" width="73"></td>
</tr>

<tr>
<td valign="top" width="102"></td>
<td valign="top" width="64"></td>
<td valign="top" width="330">
<p><font size="2" face="Times New Roman">for the Three and Nine Months Ended September 30,<br>
2002 and 2001</font></p>

</td>
<td valign="top" width="73">
<p align="center"><font size="2" face="Times New Roman">4</font></p>
</td>
</tr>

<tr>
<td valign="top" width="102">&nbsp;</td>
<td valign="top" width="64"></td>
<td valign="top" width="330"></td>
<td valign="top" width="73"></td>
</tr>

<tr>
<td valign="top" width="102"></td>
<td valign="top" width="64"></td>
<td valign="top" width="330">
<p><font size="2" face="Times New Roman"><a href="#condensedconsolidatedstmtsofcashflow">Condensed Consolidated Statements of Cash
Flows</a></font></p>
</td>
<td valign="top" width="73"></td>
</tr>

<tr>
<td valign="top" width="102"></td>
<td valign="top" width="64"></td>
<td valign="top" width="330">
<p><font size="2" face="Times New Roman">for the Nine Months Ended September 30, 2002 and 2001</font></p>
</td>
<td valign="top" width="73">
<p align="center"><font size="2" face="Times New Roman">5</font></p>
</td>
</tr>

<tr>
<td valign="top" width="102">&nbsp;</td>
<td valign="top" width="64"></td>
<td valign="top" width="330"></td>
<td valign="top" width="73"></td>
</tr>

<tr>
<td valign="top" width="102"></td>
<td valign="top" width="64"></td>
<td valign="top" width="330">
<p><font size="2" face="Times New Roman"><a href="#notestocondensedconsolfinancialstmts">Notes to Condensed Consolidated
Financial</a></font></p>
</td>
<td valign="top" width="73"></td>
</tr>

<tr>
<td valign="top" width="102"></td>
<td valign="top" width="64"></td>
<td valign="top" width="330">
<p><font size="2" face="Times New Roman">Statements</font></p>
</td>
<td valign="top" width="73">
<p align="center"><font size="2" face="Times New Roman">6</font></p>
</td>
</tr>

<tr>
<td valign="top" width="102">&nbsp;</td>
<td valign="top" width="64"></td>
<td valign="top" width="330"></td>
<td valign="top" width="73"></td>
</tr>

<tr>
<td valign="top" width="102"></td>
<td valign="top" width="64">
<p><font size="2" face="Times New Roman">Item 2.</font></p>
</td>
<td valign="top" width="330">
<p><font size="2" face="Times New Roman"><a href="#Management's Discussion and Analysis">Management's Discussion and Analysis of
Financial</a></font></p>
</td>
<td valign="top" width="73"></td>
</tr>

<tr>
<td valign="top" width="102"></td>
<td valign="top" width="64"></td>
<td valign="top" width="330">
<p><u><font size="2" face="Times New Roman">Condition and Results of Operations</font></u></p>
</td>
<td valign="top" width="73">
<p align="center"><font size="2" face="Times New Roman">18</font></p>
</td>
</tr>

<tr>
<td valign="top" width="102">&nbsp;</td>
<td valign="top" width="64"></td>
<td valign="top" width="330"></td>
<td valign="top" width="73"></td>
</tr>

<tr>
<td valign="top" width="102"></td>
<td valign="top" width="64">
<p><font size="2" face="Times New Roman">Item 4.</font></p>
</td>
<td valign="top" width="330">
<p><font size="2"  face="Times New Roman">&nbsp;<a href="#Controls and Procedures">Controls and Procedures</a></font></p>
</td>
<td valign="top" width="73">
<p align="center"><font size="2" face="Times New Roman">25</font></p>
</td>
</tr>

<tr>
<td valign="top" width="102">&nbsp;</td>
<td valign="top" width="64"></td>
<td valign="top" width="330"></td>
<td valign="top" width="73"></td>
</tr>

<tr>
<td valign="top" width="102">
<p><b><font size="2" face="Times New Roman">PART II.</font></b></p>
</td>
<td colspan="2" valign="top" width="396">
<p><b><font size="2" face="Times New Roman">OTHER INFORMATION</font></b></p>
</td>
<td valign="top" width="73"></td>
</tr>

<tr>
<td valign="top" width="102">&nbsp;</td>
<td valign="top" width="64"></td>
<td valign="top" width="330"></td>
<td valign="top" width="73"></td>
</tr>

<tr>
<td valign="top" width="102"></td>
<td valign="top" width="64">
<p><font size="2" face="Times New Roman">Item 1.</font></p>
</td>
<td valign="top" width="330">
<p><font size="2" face="Times New Roman"><a href="#legalproceedins">Legal Proceedings</a></font></p>
</td>
<td valign="top" width="73">
<p align="center"><font size="2" face="Times New Roman">26</font></p>
</td>
</tr>

<tr>
<td valign="top" width="102">&nbsp;</td>
<td valign="top" width="64"></td>
<td valign="top" width="330"></td>
<td valign="top" width="73"></td>
</tr>

<tr>
<td valign="top" width="102"></td>
<td valign="top" width="64">
<p><font size="2" face="Times New Roman">Item 6.</font></p>
</td>
<td valign="top" width="330">
<p><font size="2" face="Times New Roman"><a href="#exhibitsandreportsonform8k">Exhibits and Reports on Form 8-K</a></font></p>
</td>
<td valign="top" width="73">
<p align="center"><font size="2" face="Times New Roman">26</font></p>
</td>
</tr>

<tr>
<td valign="top" width="102">&nbsp;</td>
<td valign="top" width="64"></td>
<td valign="top" width="330"></td>
<td valign="top" width="73"></td>
</tr>

<tr>
<td valign="top" width="102">&nbsp;</td>
<td valign="top" width="64"></td>
<td valign="top" width="330"></td>
<td valign="top" width="73"></td>
</tr>

<tr>
<td valign="top" width="102">&nbsp;</td>
<td valign="top" width="64"></td>
<td valign="top" width="330"></td>
<td valign="top" width="73"></td>
</tr>

<tr>
<td valign="top" width="102">
<p><b><font size="2" face="Times New Roman">SIGNATURES</font></b></p>
</td>
<td valign="top" width="64"></td>
<td valign="top" width="330"></td>
<td valign="top" width="73">
<p align="center"><font size="2" face="Times New Roman">27</font></p>
</td>
</tr>
</table>

  </center>

<p><font size="2" face="Times New Roman"></font></p>

<hr size="3" color="#000080">
<div STYLE="page-break-before: always">
  &nbsp;
</div>

<p align="left"><b><font size="2" face="Times New Roman">PART 1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL
INFORMATION</font></b></p>

<p><font size="2" face="Times New Roman"><a name="item1">ITEM 1</a>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial
Statements (Unaudited<b>)</b></font></p>

<p align="center"><b><font size="2" face="Times New Roman">MILLER INDUSTIES, INC. AND SUBSIDIARIES<br />
<a name="condensedconsolidatedbalancesheets">CONDENSED CONSOLIDATED BALANCE
SHEETS</a>
</font></b></p>

<p align="center"><b><font size="2" face="Times New Roman">(In thousands, except share data)<br />
(Unaudited)</font></b></p>

<p align="center"><b><font size="2" face="Times New Roman">ASSETS</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="623">
<tr>
<td valign="top" width="374"></td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" width="90">
<p align="center"><b><font size="2" face="Times New Roman">September 30,<br>
2002</font></b></p>

</td>
<td valign="top" width="33"></td>
<td valign="top" width="101">
<p align="center"><b><font size="2" face="Times New Roman">December 31,<br>
2001</font></b></p>

</td>
</tr>

<tr>
<td valign="top" width="374"></td>
<td valign="top" width="15"></td>
<td valign="top" width="90">
<hr color="#000000" size="1">

</td>
<td valign="top" width="33"></td>
<td valign="top" width="101">
<hr color="#000000" size="1">

</td>
</tr>

<tr>
<td valign="top" width="374"></td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" width="90"></td>
<td valign="top" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" width="101">&nbsp;</td>
</tr>

<tr>
<td valign="top" width="374">
<p><b><font size="2" face="Times New Roman">CURRENT ASSETS:</font></b></p>
</td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" width="90"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" width="101"><font size="2" face="Times New Roman">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="374">
<p style="margin-left: 30"><font size="2" face="Times New Roman">Cash and temporary investments</font></p>
</td>
<td valign="top" width="15">
<p align="right"><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top" align="right" width="90">
<p align="right"><b><font size="2" face="Times New Roman">9,337&nbsp;</font></b></p>
</td>
<td valign="top" align="right" width="33">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" align="right" width="101">
<p><font size="2" face="Times New Roman">9,095&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374">
<p style="margin-left: 30"><font size="2" face="Times New Roman">Accounts receivable, net</font></p>
</td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="90">
<p><b><font size="2" face="Times New Roman">58,065&nbsp;</font></b></p>
</td>
<td valign="top" align="right" width="33">
  <p align="center"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101">
<p><font size="2" face="Times New Roman">59,273&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374">
<p style="margin-left: 30"><font size="2" face="Times New Roman">Inventories</font></p>
</td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="90">
<p><b><font size="2" face="Times New Roman">52,906&nbsp;</font></b></p>
</td>
<td valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101">
<p><font size="2" face="Times New Roman">60,059&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374">
<p style="margin-left: 30"><font size="2" face="Times New Roman">Deferred income taxes</font></p>
</td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="90">
<p><b><font size="2" face="Times New Roman">6,593&nbsp;</font></b></p>
</td>
<td valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101">
<p><font size="2" face="Times New Roman">12,421&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374">
<p style="margin-left: 30"><font size="2" face="Times New Roman">Current assets of discontinued operations</font></p>
</td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="90">
<p><b><font size="2" face="Times New Roman">5,986&nbsp;</font></b></p>
</td>
<td valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101">
<p><font size="2" face="Times New Roman">9,047&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374">
<p style="margin-left: 30"><font size="2" face="Times New Roman">Prepaid expenses and other</font></p>
</td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="90">
<p><b><font size="2" face="Times New Roman">6,476&nbsp;</font></b></p>
</td>
<td valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101">
<p><font size="2" face="Times New Roman">11,236&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374"></td>
<td valign="top" width="15"></td>
<td valign="top" width="90">
<hr color="#000000" size="1">

</td>
<td valign="top" width="33"></td>
<td valign="top" width="101">
<hr color="#000000" size="1">

</td>
</tr>

<tr>
<td valign="top" width="374">
<p style="margin-left: 60"><font size="2" face="Times New Roman">Total current assets</font></p>
</td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="90">
<p><b><font size="2" face="Times New Roman">139,363&nbsp;</font></b></p>
</td>
<td valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101">
<p><font size="2" face="Times New Roman">161,131&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374"></td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="90"></td>
<td valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101"></td>
</tr>

<tr>
<td valign="top" width="374">
<p><b><font size="2" face="Times New Roman">PROPERTY, PLANT, AND EQUIPMENT, net</font></b></p>
</td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;&nbsp;</font></td>
<td valign="top" align="right" width="90">
<p><b><font size="2" face="Times New Roman">38,237&nbsp;</font></b></p>
</td>
<td valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101">
<p><font size="2" face="Times New Roman">39,270&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374"></td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="90"></td>
<td valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101"></td>
</tr>

<tr>
<td valign="top" width="374">
<p><b><font size="2" face="Times New Roman">GOODWILL, net</font></b></p>
</td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="90">
<p><b><font size="2" face="Times New Roman">11,619&nbsp;</font></b></p>
</td>
<td valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101">
<p><font size="2" face="Times New Roman">27,863&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374"></td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="90"></td>
<td valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101"></td>
</tr>

<tr>
<td valign="top" width="374">
<p><b><font size="2" face="Times New Roman">NONCURRENT ASSETS OF DISCONTINUED OPERATIONS</font></b></p>
</td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="90">
<p><b><font size="2" face="Times New Roman">9,643&nbsp;</font></b></p>
</td>
<td valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101">
<p><font size="2" face="Times New Roman">19,424&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374"></td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="90"></td>
<td valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101"></td>
</tr>

<tr>
<td valign="top" width="374">
<p><b><font size="2" face="Times New Roman">OTHER ASSETS, net</font></b></p>
</td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="90">
<p><b><font size="2" face="Times New Roman">5,742&nbsp;</font></b></p>
</td>
<td valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101">
<p><font size="2" face="Times New Roman">5,275&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374"></td>
<td valign="top" width="15"></td>
<td valign="top" width="90">
<hr color="#000000" size="1">

</td>
<td valign="top" width="33"></td>
<td valign="top" width="101">
<hr color="#000000" size="1">

</td>
</tr>

<tr height="30">
<td valign="top" width="374"></td>
<td valign="top" width="15">
<p align="right"><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top" align="right" width="90">
<p><b><font size="2" face="Times New Roman">204,604&nbsp;</font></b></p>
</td>
<td valign="top" align="right" width="33">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" align="right" width="101">
<p><font size="2" face="Times New Roman">252,963&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374"></td>
<td valign="top" width="15"></td>
<td valign="top" width="90">
<hr color="#000000" size="3">

</td>
<td valign="top" width="33"></td>
<td valign="top" width="101">
<hr color="#000000" size="3">

</td>
</tr>

<tr>
<td valign="top" width="374"></td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="90"></td>
<td valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101"></td>
</tr>

<tr>
<td valign="top" width="374"></td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="90"></td>
<td valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101"></td>
</tr>

<tr>
<td valign="top" width="374">
<p><b><font size="2" face="Times New Roman">CURRENT LIABILITIES:</font></b></p>
</td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="90"></td>
<td valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101"></td>
</tr>

<tr>
<td valign="top" width="374">
<p style="margin-left: 30"><font size="2" face="Times New Roman">Current portion of long-term debt</font></p>
</td>
<td valign="top" width="15">
<p align="right"><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top" align="right" width="90">
<p align="right"><b><font size="2" face="Times New Roman">17,275&nbsp;</font></b></p>
</td>
<td valign="top" align="right" width="33">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" align="right" width="101">
<p><font size="2" face="Times New Roman">12,405&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374">
<p style="margin-left: 30"><font size="2" face="Times New Roman">Accounts payable</font></p>
</td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="90">
<p align="right"><b><font size="2" face="Times New Roman">38,094&nbsp;</font></b></p>
</td>
<td valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101">
<p><font size="2" face="Times New Roman">35,155&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374">
<p style="margin-left: 30"><font size="2" face="Times New Roman">Accrued liabilities and other</font></p>
</td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="90">
<p><b><font size="2" face="Times New Roman">15,823&nbsp;</font></b></p>
</td>
<td valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101">
<p><font size="2" face="Times New Roman">19,961&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374">
<p style="margin-left: 30"><font size="2" face="Times New Roman">Current liabilities of discontinued operations</font></p>
</td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="90">
<p><b><font size="2" face="Times New Roman">13,441&nbsp;</font></b></p>
</td>
<td valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101">
<p><font size="2" face="Times New Roman">6,009&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374"></td>
<td valign="top" width="15"></td>
<td valign="top" width="90">
<hr color="#000000" size="1">

</td>
<td valign="top" width="33"></td>
<td valign="top" width="101">
<hr color="#000000" size="1">

</td>
</tr>

<tr>
<td valign="top" width="374">
<p style="margin-left: 60"><font size="2" face="Times New Roman">Total current liabilities</font></p>
</td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="90">
<p><b><font size="2" face="Times New Roman">84,633&nbsp;</font></b></p>
</td>
<td valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101">
<p><font size="2" face="Times New Roman">73,530&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374"></td>
<td valign="top" width="15"></td>
<td valign="top" width="90">
<hr color="#000000" size="1">

</td>
<td valign="top" width="33"></td>
<td valign="top" width="101">
<hr color="#000000" size="1">

</td>
</tr>

<tr>
<td valign="top" width="374"></td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="90"></td>
<td valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101"></td>
</tr>

<tr>
<td valign="top" width="374">
<p><b><font size="2" face="Times New Roman">LONG-TERM DEBT, less current portion</font></b></p>
</td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="90">
<p><b><font size="2" face="Times New Roman">55,255&nbsp;</font></b></p>
</td>
<td valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101">
<p><font size="2" face="Times New Roman">76,242&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374"></td>
<td valign="top" width="15"></td>
<td valign="top" width="90">
<hr color="#000000" size="1">

</td>
<td valign="top" width="33"></td>
<td valign="top" width="101">
<hr color="#000000" size="1">

</td>
</tr>

<tr>
<td valign="top" width="374">
<p><b><font size="2" face="Times New Roman">NONCURRENT LIABILTIES OF DISCONTINUED<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OPERATIONS</font></b></p>
</td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="90">

<p><b><font size="2" face="Times New Roman"><br>
0&nbsp;</font></b></p>
</td>
<td valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101">

<p><font size="2" face="Times New Roman"><br>
15,320&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374"></td>
<td valign="top" width="15"></td>
<td valign="top" width="90">
<hr color="#000000" size="1">

</td>
<td valign="top" width="33"></td>
<td valign="top" width="101">
<hr color="#000000" size="1">

</td>
</tr>

<tr>
<td valign="top" width="374">
<p><b><font size="2" face="Times New Roman">DEFERRED INCOME TAXES</font></b></p>
</td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="90">
<p><b><font size="2" face="Times New Roman">3,028&nbsp;</font></b></p>
</td>
<td valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101">
<p><font size="2" face="Times New Roman">3,028&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374"></td>
<td valign="top" width="15"></td>
<td valign="top" width="90">
<hr color="#000000" size="1">

</td>
<td valign="top" width="33"></td>
<td valign="top" width="101">
<hr color="#000000" size="1">

</td>
</tr>

<tr>
<td valign="top" width="374"></td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="90"></td>
<td valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101"></td>
</tr>

<tr>
<td valign="top" width="374">
<p><b><font size="2" face="Times New Roman">SHAREHOLDERS' EQUITY</font></b> <font size="2" face="Times New Roman">&nbsp; (Note
2):</font></p>
</td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="90"></td>
<td valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101"></td>
</tr>

<tr>
<td valign="top" width="374">
<p style="margin-left: 30"><font size="2" 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></p>
</td>
<td valign="top" width="15"></td>
<td valign="top" align="right" width="90">

<p><b><font size="2" face="Times New Roman"><br>
0&nbsp;</font></b></p>
</td>
<td valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101">
<p><font size="2" face="Times New Roman"><br />
 0&nbsp;</font></p>
</td>
</tr>

<tr height="42">
<td height="42" valign="top" width="374">
<p style="margin-left: 30"><font size="2" 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 September 30,<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2002
 and December 31, 2001</font></p>
</td>
<td height="42" valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td height="42" valign="top" align="right" width="90">

<p><b><font size="2" face="Times New Roman"><br>
<br>
93&nbsp;</font></b></p>
</td>
<td height="42" valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td height="42" valign="top" align="right" width="101">
<p><font size="2" face="Times New Roman"><br />
<br />
 93&nbsp;</font></p>
</td>
</tr>

<tr height="8">
<td height="8" valign="top" width="374">
<p style="margin-left: 30"><font size="2" face="Times New Roman">Additional paid
&#150;in capital</font></p>
</td>
<td height="8" valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td height="8" valign="top" align="right" width="90">
<p><b><font size="2" face="Times New Roman">145,088&nbsp;</font></b></p>
</td>
<td height="8" valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td height="8" valign="top" align="right" width="101">
<p><font size="2" face="Times New Roman">145,088&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374">
<p style="margin-left: 30"><font size="2" face="Times New Roman">Accumulated deficit</font></p>
</td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="90">
<p><b><font size="2" face="Times New Roman">(81,448)</font></b></p>
</td>
<td valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101">
<p><font size="2" face="Times New Roman">(58,096)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374">
<p style="margin-left: 30"><font size="2" face="Times New Roman">Accumulated other comprehensive loss</font></p>
</td>
<td valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="90">
<p><b><font size="2" face="Times New Roman">(2,045)</font></b></p>
</td>
<td valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td valign="top" align="right" width="101">
<p><font size="2" face="Times New Roman">(2,242)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374"></td>
<td valign="top" width="15"></td>
<td valign="top" width="90">
<hr color="#000000" size="1">

</td>
<td valign="top" width="33"></td>
<td valign="top" width="101">
<hr color="#000000" size="1">

</td>
</tr>

<tr height="19">
<td height="19" valign="top" width="374">
<p style="margin-left: 60"><font size="2" face="Times New Roman">Total shareholders' equity</font></p>
</td>
<td height="19" valign="top" width="15"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td height="19" valign="top" align="right" width="90">
<p><b><font size="2" face="Times New Roman">61,688&nbsp;</font></b></p>
</td>
<td height="19" valign="top" align="right" width="33"><font size="2" face="Times New Roman">&nbsp;</font></td>
<td height="19" valign="top" align="right" width="101">
<p><font size="2" face="Times New Roman">84,843</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374"></td>
<td valign="top" width="15"></td>
<td valign="top" width="90">
<hr color="#000000" size="1">

</td>
<td valign="top" width="33"></td>
<td valign="top" width="101">
<hr color="#000000" size="1">

</td>
</tr>

<tr height="28">
<td valign="top" width="374"></td>
<td valign="top" width="15">
<p align="right"><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top" align="right" width="90">
<p><b><font size="2" face="Times New Roman">204,604&nbsp;</font></b></p>
</td>
<td valign="top" align="right" width="33">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" align="right" width="101">
<p><font size="2" face="Times New Roman">252,963</font></p>
</td>
</tr>

<tr height="28">
<td valign="top" width="374"></td>
<td valign="top" width="15">
</td>
<td valign="top" align="right" width="90">
<hr color="#000000" size="3">
</td>
<td valign="top" align="right" width="33">
</td>
<td valign="top" align="right" width="101">
<hr color="#000000" size="3">
</td>
</tr>
</table>

<p align="center"><font size="2" face="Times New Roman">See accompanying notes to condensed consolidated financial
statements.</font></p>

<p align="center"><font size="2" face="Times New Roman">3</font></p>
<hr size="3" color="#000080">
<div STYLE="page-break-before: always">
  &nbsp;
</div>

<p align="center"><b><font size="2" 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></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="631">
<tr>
<td valign="top"></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td colspan="3" valign="top">
<p align="center"><b><font size="1" face="Times New Roman">Three Months Ended<br />
 September 30,</font></b></p>
</td>
<td valign="top"></td>
<td colspan="3" valign="top">
<p align="center"><b><font size="1" face="Times New Roman">Nine Months Ended<br />
 September 30,</font></b></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td colspan="3" valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td colspan="3" valign="top">
<hr color="#000000" size="1">
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="center"><b><font size="1" face="Times New Roman">2002</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="center"><font size="1" face="Times New Roman">2001</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="center"><b><font size="1" face="Times New Roman">2002</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="center"><font size="1" face="Times New Roman">2001</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
</tr>

<tr>
<td valign="top">
<p><font size="1" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">NET SALES:</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">Towing and Recovery<br />
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equipment</font></b></p>
</td>
<td valign="bottom">

<p align="right"><b><font size="1" face="Times New Roman">$</font></b></p>
</td>
<td valign="bottom">

<p align="right"><b><font size="1" face="Times New Roman">69,786&nbsp;</font></b></p>
</td>
<td valign="bottom">

<p align="right"><font size="1" face="Times New Roman">$</font></p>
</td>
<td valign="bottom">

<p align="right"><font size="1" face="Times New Roman">74,037&nbsp;</font></p>
</td>
<td valign="bottom">

<p align="right"><b><font size="1" face="Times New Roman">$</font></b></p>
</td>
<td valign="bottom">

<p align="right"><b><font size="1" face="Times New Roman">215,287&nbsp;</font></b></p>
</td>
<td valign="bottom">

<p align="right"><font size="1" face="Times New Roman">$</font></p>
</td>
<td valign="bottom">

<p align="right"><font size="1" face="Times New Roman">234,369&nbsp;</font></p>
</td>
</tr>

<tr height="11">
<td height="11" valign="top">
<p><b><font size="1" face="Times New Roman">Towing Services</font></b></p>
</td>
<td height="11" valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td height="11" valign="top">
<p align="right"><b><font size="1" face="Times New Roman">24,014&nbsp;</font></b></p>
</td>
<td height="11" valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td height="11" valign="top">
<p align="right"><font size="1" face="Times New Roman">24,493&nbsp;</font></p>
</td>
<td height="11" valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td height="11" valign="top">
<p align="right"><b><font size="1" face="Times New Roman">71,286&nbsp;</font></b></p>
</td>
<td height="11" valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td height="11" valign="top">
<p align="right"><font size="1" face="Times New Roman">74,836&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">93,800</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">98,530&nbsp;</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">286,573&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">309,205&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">COSTS AND EXPENSES:</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">Costs of operations:</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">Towing and Recovery<br />
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Equipment</font></b></p>
</td>
<td valign="bottom"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><b><font size="1" face="Times New Roman">61,409&nbsp;</font></b></p>
</td>
<td valign="bottom"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><font size="1" face="Times New Roman">65,323&nbsp;</font></p>
</td>
<td valign="bottom"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><b><font size="1" face="Times New Roman">188,833&nbsp;</font></b></p>
</td>
<td valign="bottom"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><font size="1" face="Times New Roman">206,554&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">Towing Services</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">20,411&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">19,337&nbsp;</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">58,712&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">58,307&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">81,820&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">84,660&nbsp;</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">247,545&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">264,861&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">Selling, general, and<br />
 administrative expenses</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><b><font size="1" face="Times New Roman">10,453&nbsp;</font></b></p>
</td>
<td valign="bottom"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><font size="1" face="Times New Roman">11,290&nbsp;</font></p>
</td>
<td valign="bottom"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><b><font size="1" face="Times New Roman">31,934&nbsp;</font></b></p>
</td>
<td valign="bottom"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><font size="1" face="Times New Roman">35,354&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">Interest expense, net</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">2,116&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">2,430&nbsp;</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">6,318&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">9,195&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">Total costs and expenses</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">94,389&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">98,380&nbsp;</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">285,797&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">309,410&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
</tr>

<tr height="15">
<td height="15" valign="top">
<p><font size="1" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="15" valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td height="15" valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td height="15" valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td height="15" valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td height="15" valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td height="15" valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td height="15" valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td height="15" valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">INCOME (LOSS) FROM CONTINUING<br>
OPERATIONS BEFORE<br />
 INCOME&nbsp; TAXES</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><b><font size="1" face="Times New Roman">(589)</font></b></p>
</td>
<td valign="bottom"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><font size="1" face="Times New Roman">150&nbsp;</font></p>
</td>
<td valign="bottom"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><b><font size="1" face="Times New Roman">776</font></b></p>
</td>
<td valign="bottom"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><font size="1" face="Times New Roman">(205)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">INCOME TAX PROVISION<br />
 (BENEFIT)</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><b><font size="1" face="Times New Roman">179&nbsp;</font></b></p>
</td>
<td valign="bottom"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><font size="1" face="Times New Roman">(230)</font></p>
</td>
<td valign="bottom"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><b><font size="1" face="Times New Roman">658</font></b></p>
</td>
<td valign="bottom"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><font size="1" face="Times New Roman">(1,191)</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">INCOME (LOSS) FROM CONTINUING<br>
OPERATIONS</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><b><font size="1" face="Times New Roman">(768)</font></b></p>
</td>
<td valign="bottom"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><font size="1" face="Times New Roman">380&nbsp;</font></p>
</td>
<td valign="bottom"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><b><font size="1" face="Times New Roman">118</font></b></p>
</td>
<td valign="bottom"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><font size="1" face="Times New Roman">986&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">DISCONTINUED OPERATIONS:</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">Loss from discontinued operations</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">(162)</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">(854)</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">(1,566)</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">(3,441)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">Gain (loss) from disposals of discontinued<br>
operations</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><b><font size="1" face="Times New Roman">(32)</font></b></p>
</td>
<td valign="bottom"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><font size="1" face="Times New Roman">(245)</font></p>
</td>
<td valign="bottom"></td>
<td valign="bottom">

<p align="right"><b><font size="1" face="Times New Roman">(92)</font></b></p>
</td>
<td valign="bottom"></td>
<td valign="bottom">

<p align="right"><font size="1" face="Times New Roman">(185)</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">NET LOSS BEFORE CUMULATIVE<br>
EFFECT OF CHANGE IN<br>
ACCOUNTING METHOD</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><b><font size="1" face="Times New Roman">(962)</font></b></p>
</td>
<td valign="bottom"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><font size="1" face="Times New Roman">(719)</font></p>
</td>
<td valign="bottom"></td>
<td valign="bottom">

<p align="right"><b><font size="1" face="Times New Roman">(1,540)</font></b></p>
</td>
<td valign="bottom"></td>
<td valign="bottom">

<p align="right"><font size="1" face="Times New Roman">(2,640)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">Cumulative effect of change in<br>
accounting method</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><b><font size="1" face="Times New Roman">--&nbsp;</font></b></p>
</td>
<td valign="bottom"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><font size="1" face="Times New Roman">--&nbsp;</font></p>
</td>
<td valign="bottom"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><b><font size="1" face="Times New Roman">(21,812)</font></b></p>
</td>
<td valign="bottom"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><font size="1" face="Times New Roman">--&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">NET LOSS</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">$</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">(962)</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">(719)</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">$</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">(23,352)</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">(2,640)</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="3">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="3">
</td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="3">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="3">
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">BASIC INCOME (LOSS) PER<br>
COMMON SHARE:</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">Income from continuing operations</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">$</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">(0.08)</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">0.04&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">$</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">0.01</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">0.11&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">Loss from discontinued operations</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">(0.02)</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">(0.09)</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">(0.17)</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">(0.38)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">Gain (loss) from disposals of discontinued<br>
operations</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><b><font size="1" face="Times New Roman">--&nbsp;</font></b></p>
</td>
<td valign="bottom"><font size="1" face="Times New Roman">&nbsp;&nbsp;</font></td>
<td valign="bottom">

<p align="right"><font size="1" face="Times New Roman">(0.03)</font></p>
</td>
<td valign="bottom"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><b><font size="1" face="Times New Roman">(0.01)</font></b></p>
</td>
<td valign="bottom"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><font size="1" face="Times New Roman">(0.02)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">Cumulative effect of accounting principle</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">--&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">--&nbsp;</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">(2.34)</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">--&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">Basic income (loss)</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">(0.10)</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">(0.08)</font></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">(2.51)</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">(0.29)</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="3">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="3">
</td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="3">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="3">
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">DILUTED INCOME (LOSS) PER<br>
COMMON SHARE:</font></b></p>
</td>
<td valign="top">
<p align="right"></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">Income from continuing operations</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">(0.08)</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">0.04&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">0.01</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">0.11&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">Loss from discontinued operations</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">(0.02)</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">(0.09)</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">(0.17)</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">(0.38)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">Gain (loss) from disposals of discontinued<br>
operations</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><b><font size="1" face="Times New Roman">--&nbsp;</font></b></p>
</td>
<td valign="bottom"><font size="1" face="Times New Roman">&nbsp;&nbsp;</font></td>
<td valign="bottom">

<p align="right"><font size="1" face="Times New Roman">(0.03)</font></p>
</td>
<td valign="bottom"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><b><font size="1" face="Times New Roman">(0.01)</font></b></p>
</td>
<td valign="bottom"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><font size="1" face="Times New Roman">(0.02)</font></p>
</td>
</tr>

<tr height="14">
<td height="14" valign="top">
<p><b><font size="1" face="Times New Roman">Cumulative effect of accounting change</font></b></p>
</td>
<td height="14" valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td height="14" valign="top">
<p align="right"><b><font size="1" face="Times New Roman">--&nbsp;</font></b></p>
</td>
<td height="14" valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td height="14" valign="top">
<p align="right"><font size="1" face="Times New Roman">--&nbsp;</font></p>
</td>
<td height="14" valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td height="14" valign="top">
<p align="right"><b><font size="1" face="Times New Roman">(2.34)</font></b></p>
</td>
<td height="14" valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td height="14" valign="top">
<p align="right"><font size="1" face="Times New Roman">--&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">Diluted income (loss)</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">(0.10)</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">(0.08)</font></p>
</td>
<td valign="top">
<p><font size="1" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">(2.51)</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">(0.29)</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="3">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="3">
</td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="3">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="3">
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">WEIGHTED AVERAGE<br />
 SHARES OUTSTANDING:</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">9,341&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">9,341&nbsp;</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">9,341&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">9,341&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="3">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="3">
</td>
<td valign="top"><b><font size="1" face="Times New Roman">&nbsp;</font></b></td>
<td valign="top">
<hr color="#000000" size="3">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="3">
</td>
</tr>

<tr>
<td valign="top">
<p><b><font size="1" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Diluted</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">9,341&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">9,343&nbsp;</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">9,349&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">9,343&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
  <hr color="#000000" size="3">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
  <hr color="#000000" size="3">
</td>
<td valign="top"></td>
<td colspan="3" valign="top">
  <hr color="#000000" size="3">
</td>
</tr>
</table>

<p align="center"><font size="2" face="Times New Roman">See accompanying notes to condensed consolidated financial statements.</font></p>

<p>&nbsp;</p>

<p align="center"><font size="2" face="Times New Roman">4</font></p>
<hr size="3" color="#000080">
<div STYLE="page-break-before: always">
  &nbsp;
</div>

<p align="center"><font size="2" face="Times New Roman"><b>MILLER INDUSTRIES, INC. AND SUBSIDIARIES<br />
<a name="condensedconsolidatedstmtsofcashflow">CONDENSED CONSOLIDATED STATEMENTS
OF CASH FLOWS</a><br />
(in thousands)<br />
(U</b></font><b><font size="2" face="Times New Roman">naudited)</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="652">
<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td colspan="3" valign="top">
<p align="center"><font size="1" face="Times New Roman">Nine Months Ended September 30,</font></p>
</td>
</tr>

<tr>
<td><font size="1" face="Times New Roman">&nbsp;</font></td>
<td><font size="1" face="Times New Roman">&nbsp;</font></td>
<td colspan="3">
<hr color="#000000" size="1">
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="center"><b><font size="1" face="Times New Roman">2002</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="center"><font size="1" face="Times New Roman">2001</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
</tr>

<tr height="16">
<td height="16" valign="top">
<p><font size="1" face="Times New Roman">OPERATING ACTIVITIES:</font></p>
</td>
<td height="16" valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td height="16" valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td height="16" valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td height="16" valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 20"><font size="1" face="Times New Roman">Net loss</font></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">(23,352)</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">(2,640)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 20"><font size="1" face="Times New Roman">Adjustments to reconcile net loss to net cash provided<br />
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;by operating activities:</font></p>
</td>
<td valign="top">
<p align="right"></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"></p>
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 40"><font size="1" face="Times New Roman">Loss from discontinued operations</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">1,566&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">3,441&nbsp;</font></p>
</td>
</tr>

<tr height="14">
<td height="14" valign="top">
<p style="margin-left: 40"><font size="1" face="Times New Roman">(Gain) loss from disposals of discontinued operations</font></p>
</td>
<td height="14" valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td height="14" valign="top">
<p align="right"><b><font size="1" face="Times New Roman">92&nbsp;</font></b></p>
</td>
<td height="14" valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td height="14" valign="top">
<p align="right"><font size="1" face="Times New Roman">185&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 40"><font size="1" face="Times New Roman">Depreciation and amortization</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">6,296&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">8,570&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 40"><font size="1" face="Times New Roman">Provision for doubtful accounts</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">543&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">(151)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 40"><font size="1" face="Times New Roman">Cumulative effect of change in accounting principle</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">21,812&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">--&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 40"><font size="1" face="Times New Roman">Deferred income tax provision</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">106&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">(823)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 40"><font size="1" face="Times New Roman">(Gain) loss on disposals of property, plant, and equipment</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">(45)</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">(222)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 40"><font size="1" face="Times New Roman">Paid in kind interest</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">428&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">--&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 40"><font size="1" face="Times New Roman">Proceeds from tax refund</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">9,046&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">--&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 40"><font size="1" face="Times New Roman">Changes in operating assets and liabilities:</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 50"><font size="1" face="Times New Roman">Accounts receivable</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">2,154&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">(2,249)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 50"><font size="1" face="Times New Roman">Inventories</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">7,838&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">17,453&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 50"><font size="1" face="Times New Roman">Prepaid expenses and other</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">(1,243)</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">(783)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 50"><font size="1" face="Times New Roman">Other assets</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">(49)</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">(241)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 50"><font size="1" face="Times New Roman">Accounts payable</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">2,201&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">10,507&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 50"><font size="1" face="Times New Roman">Accrued liabilities</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">(4,083)</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">(5,697)</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 80"><font size="1" face="Times New Roman">Net cash provided by operating activities</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">23,310&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">27,350&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
</tr>

<tr>
<td valign="top">
<p><font size="1" face="Times New Roman">INVESTING ACTIVITIES:</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 20"><font size="1" face="Times New Roman">Purchases of property, plant, and equipment</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">(5,060)</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">(2,513)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 20"><font size="1" face="Times New Roman">Proceeds from sale of property, plant, and equipment</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">175&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">416&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 20"><font size="1" face="Times New Roman">Proceeds from payments of notes receivable</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">137&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">209&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 80"><font size="1" face="Times New
Roman">Net cash used in investing activities</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">(4,748)</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">(1,888)</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
</tr>

<tr height="13">
<td height="13" valign="top">
<p><font size="1" face="Times New Roman">FINANCING ACTIVITIES:</font></p>
</td>
<td height="13" valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td height="13" valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td height="13" valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td height="13" valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
</tr>

<tr height="5">
<td height="5" valign="top">
<p style="margin-left: 20"><font size="1" face="Times New Roman">Net payments under senior credit facility</font></p>
</td>
<td height="5" valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td height="5" valign="top">
<p align="right"><b><font size="1" face="Times New Roman">(21,849)</font></b></p>
</td>
<td height="5" valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td height="5" valign="top">
<p align="right"><font size="1" face="Times New Roman">66,619&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 20"><font size="1" face="Times New Roman">Net payments under former credit facility</font></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">--&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">(100,000)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 20"><font size="1" face="Times New Roman">Borrowings under subordinated credit facility</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">--&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">14,000&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 20"><font size="1" face="Times New Roman">Borrowings under long-term obligations</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">1,948&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">31&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 20"><font size="1" face="Times New Roman">Payments on long-term obligations</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">(3,248)</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">(2,402)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 20"><font size="1" face="Times New Roman">Termination of interest rate swap</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">(263)</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">--&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 20"><font size="1" face="Times New Roman">Additions to deferred financing costs</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">(1,412)</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">(3,296)</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 80"><font size="1" face="Times New Roman">Net cash used in financing activities</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">(24,824)</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">(25,048)</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
</tr>

<tr>
<td valign="top">
<p><font size="1" face="Times New Roman">EFFECT OF EXCHANGE RATE CHANGES ON CASH AND<br />
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TEMPORARY INVESTMENTS</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><b><font size="1" face="Times New Roman">447&nbsp;</font></b></p>
</td>
<td valign="bottom"><font size="1" face="Times New Roman">&nbsp;&nbsp;</font></td>
<td valign="bottom">

<p align="right"><font size="1" face="Times New Roman">(211)</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
</tr>

<tr>
<td valign="top">
<p><font size="1" face="Times New Roman">NET CASH USED IN DISCONTINUED OPERATIONS</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">(4,541)</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">(3,094)</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
</tr>

<tr>
<td valign="top">
<p><font size="1" face="Times New Roman">PROCEEDS FROM SALES OF DISCONTINUED OPERATIONS</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">10,598&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">2,798&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
</tr>

<tr>
<td valign="top">
<p><font size="1" face="Times New Roman">NET INCREASE (DECREASE) IN CASH AND TEMPORARY INVESTMENTS</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="bottom">

<p align="right"><b><font size="1" face="Times New Roman">242&nbsp;</font></b></p>
</td>
<td valign="bottom"><font size="1" face="Times New Roman">&nbsp;&nbsp;</font></td>
<td valign="bottom">

<p align="right"><font size="1" face="Times New Roman">(93)</font></p>
</td>
</tr>

<tr>
<td valign="top">

<p><font size="1" face="Times New Roman">CASH AND TEMPORARY INVESTMENTS, beginning of period</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">

<p align="right"><b><font size="1" face="Times New Roman">9,095&nbsp;</font></b></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;&nbsp;</font></td>
<td valign="top">

<p align="right"><font size="1" face="Times New Roman">8,295&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
</tr>

<tr>
<td valign="top">
<p><font size="1" face="Times New Roman">CASH AND TEMPORARY INVESTMENTS, end of period</font></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">&nbsp;$</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">9,337&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">8,202&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="3">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="3">
</td>
</tr>

<tr>
<td valign="top">

<p><font size="1" face="Times New Roman">SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:</font></p>
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;&nbsp;</font></td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 20"><font size="1" face="Times New Roman">Cash payments for interest</font></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">5,552&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">7,723&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="3">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
<hr color="#000000" size="3">
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-left: 20"><font size="1" face="Times New Roman">Cash payments for income taxes</font></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="1" face="Times New Roman">576&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="1" face="Times New Roman">546&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">&nbsp;</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
  <hr color="#000000" size="3">
</td>
<td valign="top"><font size="1" face="Times New Roman">&nbsp;</font></td>
<td valign="top">
  <hr color="#000000" size="3">
</td>
</tr>
</table>

&nbsp;

<p align="center"><font face="Times New Roman" size="2">See accompanying notes to condensed consolidated financial
statements.</font></p>

<p align="center"><font size="2" face="Times New Roman">5</font></p>
<hr size="3" color="#000080">
<div STYLE="page-break-before: always">
  &nbsp;
</div>

<h1 align="center"><b><font size="2" face="Times New Roman">MILLER INDUSTRIES, INC. AND
SUBSIDIARIES<br>
</font></b><a name="notestocondensedconsolfinancialstmts"><b><font size="2" face="Times New Roman">NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS<br>
</font></b></a><b><font size="2" face="Times New Roman">(Unaudited)</font></b></h1>

<p><font size="2" face="Times New Roman"></font></p>

<p>&nbsp;</p>

<p><font size="2" face="Times New Roman">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Basis of Presentation</font></p>
<p style="margin-left: 60"><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.&nbsp; 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.&nbsp; Nevertheless, the Company believes that the disclosures are adequate to make the
financial information presented not misleading.&nbsp; 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.&nbsp; Cost of goods sold for
interim periods for certain entities in the towing and recovery equipment segment is determined based on estimated gross profit
rates.&nbsp; Interim results of operations are not necessarily indicative of results to be expected for the fiscal year.&nbsp;
These condensed consolidated financial statements should be read in conjunction with the Company's Transition Report on Form 10-K
for the eight months ended December 31, 2001.</font></p>
<p><font size="2" face="Times New Roman">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Liquidity</font></p>
<p style="margin-left: 60"><font size="2" face="Times New Roman">The towing and recovery equipment manufacturing and towing services industries are highly
competitive.&nbsp; Certain competitors may have substantially greater financial and other resources than the Company.&nbsp; These
industries are also subject to a number of external influences, such as general economic conditions, interest rate levels, consumer
confidence, and general credit availability.&nbsp; Demand for the Company&rsquo;s equipment has been negatively impacted by cost
pressures facing its customers.&nbsp; Continuation of these pressures could impact the Company&rsquo;s ability to service its
debt.&nbsp;</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">At September 30, 2002, the Company had shareholders&rsquo; equity of $61,688,000 which
included an accumulated deficit of $81,448,000 and had incurred net losses of $23,352,000, $21,587,000 and $6,434,000 during the
nine months ended September 30, 2002, the eight months ended December 31, 2001 and the fiscal year ended April 30, 2001.&nbsp; As
more fully disclosed in Note 6, net losses included special charges and other operating expenses, net of $16,672,000 for the eight
months ended December 31, 2001.&nbsp; Losses for the nine months ended September 30, 2002 included losses related to a cumulative
change in accounting principle of $21,812,000 as discussed in Note 7.</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">The Company has on several occasions negotiated amendments to its credit facility that
waived certain defaults and brought the Company back into compliance.&nbsp; The Company may continue to have difficulties in the
future complying with the covenants and other requirements of the credit agreement, and in such event would have to seek additional
waivers or amendments.&nbsp; Such waivers typically require payment of substantial additional fees, and there can be no assurance
that the lenders will agree to any future waivers or amendments.&nbsp; The Company&rsquo;s bank facilities are collateralized by
liens on all of the Company&rsquo;s assets.&nbsp; The liens give the lenders the right to&nbsp;</font></p>

<p align="center"><font size="2" face="Times New Roman">6</font></p>
<hr size="3" color="#000080">
<div STYLE="page-break-before: always">
  &nbsp;
</div>

<p style="margin-left: 60"><font size="2" face="Times New Roman"> foreclose on the assets of the Company
under certain defined events of default and such foreclosure could allow the lenders to gain control of the operations of the
Company.&nbsp;</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">On September 13, 2002, the Company entered into the Third Amendment to Credit Agreement in
connection with its senior credit facility.&nbsp; Pursuant to the Third Amendment, the amount of the mandatory periodic reductions
in the RoadOne revolving loan commitment amount, as established in the April 15, 2002 Second Amendment to Credit Agreement, were
increased by amounts calculated based on updated asset appraisals completed in September 2002.&nbsp;
Consequently, the Company will
need to repay outstanding loans and permanently reduce the RoadOne loan commitment under its senior credit facility over the life
of the loan and prior to the maturity date.&nbsp; Pursuant to the terms of the Second and Third Amendments, the failure by the
Company to repay outstanding loans and to reduce the RoadOne revolving loan commitment by the amounts and the times required
pursuant to these amendments will result in increased interest rates on the senior loans and/or the occurrence of an event of
default under the senior credit agreement.</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">In addition, pursuant to the Third Amendment, the amount of certain used inventory taken
in trade that may be considered as eligible inventory for collateral purposes was limited to $4.3 million (subject to downward
adjustments upon certain sales of sales of assets and stock by the Company and certain of its subsidiaries) through February 28,
2003 and reduced to $0 thereafter.&nbsp; Accordingly, after February 28, 2003 the Company will not be able to include used goods
taken in trade for purposes of determining borrowing availability under its existing senior loan facility and this may result in
additional mandatory pay downs of outstanding loans.</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">On November 14, 2002, the Company entered into the Fourth Amendment to the Credit
Facility, which granted waivers from the Senior Lenders of violations of certain financial covenants for the quarter ended
September 2002. There were no violations under the Junior Credit facility. The Amendment also reduced the level of certain
financial covenants for future periods, basing them strictly on the results of the towing and recovery equipment segment for those
periods. In addition, the amendment revised the Road One revolving commitment amount based on the plan to sell all remaining towing
service operations, reducing the commitment amount to $15.0 million at November 30, 2002, $12.0 million at December 31, 2002, $9.0
million at January 31, 2003, $6.0 million at February 28, 2003 and reducing to zero as of March 31, 2003.
The entire Road One revolving line of credit has been classified as current
maturities to
reflect the commitment amounts set forth in the November 2002 amendments.&nbsp; At November 14, 2002, the
actual balance under the Road One Revolving line of credit was $15.7 million.</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">Meeting the new repayment schedule will require that the Company sell its towing services
businesses according to its contemplated schedule on acceptable terms.&nbsp; While the Company believes its timetable for sales is
achievable, there can be no assurance that the schedule can be met.&nbsp; Failure to achieve the Company&rsquo;s timetable for such
sales or cash flow projections could result in failure to comply with the amended debt service requirements.&nbsp;
Such
non-compliance would result in an event of default, which if not waived by the lending groups, would result in the acceleration of
the amounts due under the credit facility as well as other remedies.&nbsp;&nbsp;
In such case, the Company would seek to refinance
the remaining balances, but there is no assurance that the Company would be able to obtain any such refinancing.&nbsp;
If the
Company were unable to refinance the credit facility on acceptable terms or find an alternative source of repayment for the credit
facility, the Company&rsquo;s business and financial condition would be materially and adversely affected.</font></p>

<p align="center"><font size="2" face="Times New Roman">7</font></p>
<hr size="3" color="#000080">
<div STYLE="page-break-before: always">
  &nbsp;
</div>

<p style="margin-left: 60"><font size="2" color="black" face="Times New Roman">Prior to making the determination to sell all of its remaining towing
services operations, the Company had focused on cost reduction and expense control, as well as other opportunities for improving
operating cash flows to improve liquidity. The Company has also disposed of certain underperforming RoadOne assets and operations
in order to improve liquidity and to reduce expenses and debt.&nbsp; As described in Note 3, in October 2002, the Company decided
to sell all remaining towing services operations.&nbsp; The Company received a tax refund of approximately $4.2 million during the
quarter ended June 30, 2002, which also reduced the RoadOne revolver and cured the overadvance position that existed at that
time.&nbsp; An additional tax refund of $4.6 million was received during the quarter ended September 30, 2002, with proceeds used
to further reduce the borrowings under the RoadOne revolver.&nbsp; All of these efforts have resulted in approximately $18.3
million in reductions to the RoadOne revolver since December 31, 2001.&nbsp; Additionally, the towing and recovery equipment
revolver and the term loan have been reduced $3.5 million and $2.3 million, respectively, since year end.&nbsp;</font></p>
<p><font size="2" face="Times New Roman">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font size="2" face="Times New Roman">Discontinued Operations</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">During the quarter ended June 30, 2002 the Company&rsquo;s management and board of
directors approved a plan to dispose of certain identified assets, which primarily consist of underperforming markets of the towing
services segment.&nbsp; These assets are considered a &ldquo;disposal group&rdquo; in accordance with the guidance set forth in
SFAS No. 144, <i>Accounting for the Impairment or Disposal of Long Lived Assets.</i>&nbsp;
Accordingly, these assets are no longer
being depreciated, and all assets and liabilities and results of operations associated with these assets have been separately
presented in the accompanying financial statements as discontinued operations.&nbsp;
Prior period financial information has been
reclassified to conform with this presentation.</font></p>
<p style="margin-left: 60"><font size="2" face="Times New Roman">During the nine months ended September 30, 2002, the Company disposed of assets in
thirteen underperforming markets, as well as certain assets in other markets.&nbsp;
Total proceeds from these sales were
approximately $10,598,000.&nbsp; As discussed above, these markets have been considered discontinued operations as of September 30,
2002 for financial reporting purposes.</font></p>
<p style="margin-left: 60"><font size="2" face="Times New Roman">The operating results for the discontinued towing services operations for the three and
nine months ended September 30, 2002 and 2001 were as follows (in thousands):</font></p>
  <center>
  <table border="0" width="90%" height="239" cellspacing="0" cellpadding="0">
    <tr>
      <td></td>
      <td align="right"></td>
      <td colspan="3">
        <p align="center"><font size="2" face="Times New Roman"><b>Three Months
        Ended<br>
        September 30,</b></font></td>
      <td align="right"></td>
      <td align="right" colspan="3">
        <p align="center"><font size="2" face="Times New Roman"><b>Nine Months
        Ended<br>
        September 30</b></font></td>
    </tr>
    <tr>
      <td></td>
      <td align="right"></td>
      <td colspan="3">
        <hr color="#000000">
      </td>
      <td align="right"></td>
      <td align="right" colspan="3">
        <hr color="#000000">
      </td>
    </tr>
    <tr>
      <td></td>
      <td align="right"></td>
      <td>
        <p align="center"><font size="2" face="Times New Roman"><b>2002</b></font></td>
      <td align="right"></td>
      <td align="right">
        <p align="center"><font size="2" face="Times New Roman">2001</font></td>
      <td align="right"></td>
      <td align="right">
        <p align="center"><font size="2" face="Times New Roman"><b>2002</b></font></td>
      <td align="right"></td>
      <td align="right">
        <p align="center"><font size="2" face="Times New Roman">2001</font></td>
    </tr>
    <tr>
      <td></td>
      <td align="right"></td>
      <td>
        <hr color="#000000" size="1">
      </td>
      <td align="right"></td>
      <td align="right">
        <hr color="#000000" size="1">
      </td>
      <td align="right"></td>
      <td align="right">
        <hr color="#000000" size="1">
      </td>
      <td align="right"></td>
      <td align="right">
        <hr color="#000000" size="1">
      </td>
    </tr>
    <tr>
      <td><b><font size="2" face="Times New Roman">Net Sales</font></b></td>
      <td align="right"><font size="2" face="Times New Roman">$</font></td>
      <td align="right"><font size="2" face="Times New Roman"><b>8,790</b></font></td>
      <td align="right"><font size="2" face="Times New Roman">$</font></td>
      <td align="right"><font size="2" face="Times New Roman">14,231</font></td>
      <td align="right"><font size="2" face="Times New Roman">$</font></td>
      <td align="right"><font size="2" face="Times New Roman"><b>30,265</b></font></td>
      <td align="right"><font size="2" face="Times New Roman">$</font></td>
      <td align="right"><font size="2" face="Times New Roman">46,194</font></td>
    </tr>
    <tr>
      <td><b><font size="2" face="Times New Roman">Loss from discontinued<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;operations</font></b></td>
      <td align="right"></td>
      <td align="right" valign="bottom"><font size="2" face="Times New Roman"><b>162</b></font></td>
      <td align="right" valign="bottom"></td>
      <td align="right" valign="bottom"><font size="2" face="Times New Roman">854</font></td>
      <td align="right" valign="bottom"></td>
      <td align="right" valign="bottom"><font size="2" face="Times New Roman"><b>1,566</b></font></td>
      <td align="right" valign="bottom"></td>
      <td align="right" valign="bottom"><font size="2" face="Times New Roman">3,441</font></td>
    </tr>
    <tr>
      <td><b><font size="2" face="Times New Roman">Loss from disposals of<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;discontinued<br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;operations</font></b></td>
      <td align="right"></td>
      <td align="right" valign="bottom"><font size="2" face="Times New Roman"><b>32</b></font></td>
      <td align="right" valign="bottom"></td>
      <td align="right" valign="bottom"><font size="2" face="Times New Roman">245</font></td>
      <td align="right" valign="bottom"></td>
      <td align="right" valign="bottom"><font size="2" face="Times New Roman"><b>923</b></font></td>
      <td align="right" valign="bottom"></td>
      <td align="right" valign="bottom"><font size="2" face="Times New Roman">185</font></td>
    </tr>
  </table>
  </center>
<p>&nbsp;</p>

<p align="center"><font size="2" face="Times New Roman">8</font></p>
<hr size="3" color="#000080">
<div STYLE="page-break-before: always">
  &nbsp;
</div>
<p style="text-indent: 60"><font size="2" face="Times New Roman">The following assets and liabilities were reclassified as held for sales (in
thousands):</font></p>
  <center>
  <table border="0" width="576" cellspacing="0" cellpadding="0">
    <tr>
      <td width="328"></td>
      <td width="18"></td>
      <td width="86">

<p align="center"><b><font size="1" face="Times New Roman">September 30,<br>
2002</font></b></p>
      </td>
      <td width="35"></td>
      <td width="99">

<p align="center"><font size="1" face="Times New Roman">December 31,<br>
2001</font></p>
      </td>
    </tr>
    <tr>
      <td width="328"><font size="2" face="Times New Roman">&nbsp;</font></td>
      <td width="18"><b><font size="2" face="Times New Roman">&nbsp;</font></b></td>
      <td width="86">
        <hr color="#000000" size="1">
      </td>
      <td width="35"><font size="2" face="Times New Roman">&nbsp;</font></td>
      <td width="99">
        <hr color="#000000" size="1">
      </td>
    </tr>
    <tr>
      <td width="328">
<p><b><font size="1" face="Times New Roman">Cash and temporary investments</font></b></p>
      </td>
      <td width="18" align="right">
<p><font size="1" face="Times New Roman">$</font></p>
      </td>
      <td width="86">
<p align="right"><b><font size="1" face="Times New Roman">206</font></b></p>
      </td>
      <td width="35" align="right">
<p><font size="1" face="Times New Roman">$</font></p>
      </td>
      <td width="99">
<p align="right"><font size="1" face="Times New Roman">768</font></p>
      </td>
    </tr>
    <tr>
      <td width="328">
<p><b><font size="1" face="Times New Roman">Accounts receivable, net</font></b></p>
      </td>
      <td width="18" align="right"></td>
      <td width="86">
<p align="right"><b><font size="1" face="Times New Roman">5,462</font></b></p>
      </td>
      <td width="35" align="right"></td>
      <td width="99">
<p align="right"><font size="1" face="Times New Roman">7,282</font></p>
      </td>
    </tr>
    <tr>
      <td width="328">
<p><b><font size="1" face="Times New Roman">Inventories</font></b></p>
      </td>
      <td width="18" align="right"></td>
      <td width="86">
<p align="right"><b><font size="1" face="Times New Roman">--</font></b></p>
      </td>
      <td width="35" align="right"></td>
      <td width="99">
<p align="right"><font size="1" face="Times New Roman">55</font></p>
      </td>
    </tr>
    <tr>
      <td width="328"><b><font size="1" face="Times New Roman">Prepaid expenses and other current assets</font></b></td>
      <td width="18" align="right"></td>
      <td width="86">
<p align="right"><b><font size="1" face="Times New Roman">318</font></b></p>
      </td>
      <td width="35" align="right"></td>
      <td width="99">
<p align="right"><font size="1" face="Times New Roman">942</font></p>
      </td>
    </tr>
    <tr>
      <td width="328"><font size="2" face="Times New Roman">&nbsp;</font></td>
      <td width="18"><b><font size="2" face="Times New Roman">&nbsp;</font></b></td>
      <td width="86">
        <hr color="#000000" size="1">
      </td>
      <td width="35"><font size="2" face="Times New Roman">&nbsp;</font></td>
      <td width="99">
        <hr color="#000000" size="1">
      </td>
    </tr>
    <tr>
      <td width="328"><b><font size="1" face="Times New Roman">Current assets of discontinued operations</font></b></td>
      <td width="18" align="right">
<p><font size="1" face="Times New Roman">$</font></p>
      </td>
      <td width="86">
<p align="right"><b><font size="1" face="Times New Roman">5,986</font></b></p>
      </td>
      <td width="35" align="right">
<p><font size="1" face="Times New Roman">$</font></p>
      </td>
      <td width="99">
<p align="right"><font size="1" face="Times New Roman">9,047</font></p>
      </td>
    </tr>
    <tr>
      <td width="328"><font size="2" face="Times New Roman">&nbsp;</font></td>
      <td width="18"><b><font size="2" face="Times New Roman">&nbsp;</font></b></td>
      <td width="86">
        <hr color="#000000" size="3">
      </td>
      <td width="35"><font size="2" face="Times New Roman">&nbsp;</font></td>
      <td width="99">
        <hr color="#000000" size="3">
      </td>
    </tr>
    <tr>
      <td width="328"><b><font size="1" face="Times New Roman">Property, plant, and equipment, net</font></b></td>
      <td width="18" align="right">
<p><font size="1" face="Times New Roman">$</font></p>
      </td>
      <td width="86">
<p align="right"><b><font size="1" face="Times New Roman">9,643</font></b></p>
      </td>
      <td width="35" align="right">
<p><font size="1" face="Times New Roman">$</font></p>
      </td>
      <td width="99">
<p align="right"><font size="1" face="Times New Roman">13,852</font></p>
      </td>
    </tr>
    <tr>
      <td width="328">
<p><b><font size="1" face="Times New Roman">Goodwill, net</font></b></p>
      </td>
      <td width="18" align="right"></td>
      <td width="86">
<p align="right"><b><font size="1" face="Times New Roman">--</font></b></p>
      </td>
      <td width="35" align="right"></td>
      <td width="99">
<p align="right"><font size="1" face="Times New Roman">5,572</font></p>
      </td>
    </tr>
    <tr>
      <td width="328"><font size="2" face="Times New Roman">&nbsp;</font></td>
      <td width="18"><b><font size="2" face="Times New Roman">&nbsp;</font></b></td>
      <td width="86">
        <hr color="#000000" size="1">
      </td>
      <td width="35"><font size="2" face="Times New Roman">&nbsp;</font></td>
      <td width="99">
        <hr color="#000000" size="1">
      </td>
    </tr>
    <tr>
      <td width="328">
<p><b><font size="1" face="Times New Roman">Noncurrent assets of discontinued operations</font></b></p>
      </td>
      <td width="18" align="right">
<p><font size="1" face="Times New Roman">$</font></p>
      </td>
      <td width="86">
<p align="right"><b><font size="1" face="Times New Roman">9,643</font></b></p>
      </td>
      <td width="35" align="right">
<p><font size="1" face="Times New Roman">$</font></p>
      </td>
      <td width="99">
<p align="right"><font size="1" face="Times New Roman">19,424</font></p>
      </td>
    </tr>
    <tr>
      <td width="328"><font size="2" face="Times New Roman">&nbsp;</font></td>
      <td width="18"><b><font size="2" face="Times New Roman">&nbsp;</font></b></td>
      <td width="86">
        <hr color="#000000" size="3">
      </td>
      <td width="35"><font size="2" face="Times New Roman">&nbsp;</font></td>
      <td width="99">
        <hr color="#000000" size="3">
      </td>
    </tr>
    <tr>
      <td width="328"><b><font size="1" face="Times New Roman">Current portion of long-term debt</font></b></td>
      <td width="18" align="right">
<p><font size="1" face="Times New Roman">$</font></p>
      </td>
      <td width="86">
<p align="right"><b><font size="1" face="Times New Roman">9,338</font></b></p>
      </td>
      <td width="35" align="right">
<p><font size="1" face="Times New Roman">$</font></p>
      </td>
      <td width="99">
<p align="right"><font size="1" face="Times New Roman">--</font></p>
      </td>
    </tr>
    <tr>
      <td width="328"><b><font size="1" face="Times New Roman">Accounts payable</font></b></td>
      <td width="18" align="right"></td>
      <td width="86">
<p align="right"><b><font size="1" face="Times New Roman">1,264</font></b></p>
      </td>
      <td width="35" align="right"></td>
      <td width="99">
<p align="right"><font size="1" face="Times New Roman">1,211</font></p>
      </td>
    </tr>
    <tr>
      <td width="328"><b><font size="1" face="Times New Roman">Accrued liabilities and other</font></b></td>
      <td width="18" align="right"></td>
      <td width="86">
<p align="right"><b><font size="1" face="Times New Roman">2,839</font></b></p>
      </td>
      <td width="35" align="right"></td>
      <td width="99">
<p align="right"><font size="1" face="Times New Roman">4,798</font></p>
      </td>
    </tr>
    <tr>
      <td width="328"><font size="2" face="Times New Roman">&nbsp;</font></td>
      <td width="18"><b><font size="2" face="Times New Roman">&nbsp;</font></b></td>
      <td width="86">
        <hr color="#000000" size="1">
      </td>
      <td width="35"><font size="2" face="Times New Roman">&nbsp;</font></td>
      <td width="99">
        <hr color="#000000" size="1">
      </td>
    </tr>
    <tr>
      <td width="328"><b><font size="1" face="Times New Roman">Current liabilities of discontinued operations</font></b></td>
      <td width="18" align="right">
<p><font size="1" face="Times New Roman">$</font></p>
      </td>
      <td width="86">
<p align="right"><b><font size="1" face="Times New Roman">13,441</font></b></p>
      </td>
      <td width="35" align="right">
<p><font size="1" face="Times New Roman">$</font></p>
      </td>
      <td width="99">
<p align="right"><font size="1" face="Times New Roman">6,009</font></p>
      </td>
    </tr>
    <tr>
      <td width="328"><font size="2" face="Times New Roman">&nbsp;</font></td>
      <td width="18"><b><font size="2" face="Times New Roman">&nbsp;</font></b></td>
      <td width="86">
        <hr color="#000000" size="3">
      </td>
      <td width="35"><font size="2" face="Times New Roman">&nbsp;</font></td>
      <td width="99">
        <hr color="#000000" size="3">
      </td>
    </tr>
    <tr>
      <td width="328"><b><font size="1" face="Times New Roman">Long-term debt</font></b></td>
      <td width="18" align="right">
<p><font size="1" face="Times New Roman">$</font></p>
      </td>
      <td width="86">
<p align="right"><b><font size="1" face="Times New Roman">--</font></b></p>
      </td>
      <td width="35" align="right">
<p><font size="1" face="Times New Roman">$</font></p>
      </td>
      <td width="99">
<p align="right"><font size="1" face="Times New Roman">15,320</font></p>
      </td>
    </tr>
    <tr>
      <td width="328"><font size="2" face="Times New Roman">&nbsp;</font></td>
      <td width="18"><b><font size="2" face="Times New Roman">&nbsp;</font></b></td>
      <td width="86">
        <hr color="#000000" size="1">
      </td>
      <td width="35"><font size="2" face="Times New Roman">&nbsp;</font></td>
      <td width="99">
        <hr color="#000000" size="1">
      </td>
    </tr>
    <tr>
      <td width="328"><b><font size="1" face="Times New Roman">Noncurrent liabilities of discontinued operations</font></b></td>
      <td width="18" align="right">
<p><font size="1" face="Times New Roman">$</font></p>
      </td>
      <td width="86">
<p align="right"><b><font size="1" face="Times New Roman">--</font></b></p>
      </td>
      <td width="35" align="right">
<p><font size="1" face="Times New Roman">$</font></p>
      </td>
      <td width="99">
<p align="right"><font size="1" face="Times New Roman">15,320</font></p>
      </td>
    </tr>
    <tr>
      <td width="328"></td>
      <td width="18" align="right"></td>
      <td width="86">
        <hr color="#000000" size="3">
      </td>
      <td width="35" align="right"></td>
      <td width="99">
        <hr color="#000000" size="3">
      </td>
    </tr>
  </table>
  </center>
<p style="margin-left: 60"><font size="2" face="Times New Roman">In October 2002, the Company made the decision to sell all remaining towing services
operations. Between October 1, 2002 and November 12, 2002 the Company disposed of
nine towing services operations in seven towing services markets, with
proceeds of approximately $5.0 million.&nbsp; In accordance with SFAS No. 144, the Company will report the entire towing services
segment as discontinued operations, as of the beginning of the fourth quarter of 2002.&nbsp;
Accordingly, depreciation of fixed
assets will cease as of October 1, 2002.&nbsp; As of such date, all assets, liabilities, and results of operations will be
separately presented as discontinued operations and all prior period financial information will be presented to conform with this
treatment.</font></p>
<p style="margin-left: 60"><font size="2" face="Times New Roman"><i><u>Risks Involved with Wind Down of Towing Services Division.</u></i>&nbsp;
The
Company is in the process of selling all of its remaining towing services businesses in a relatively short period of time.&nbsp;
The Company intends to have this process completed by December 31, 2002, although there can be no assurance that this timetable can
be met.&nbsp; The Company expects net cash proceeds from these sales to exceed the senior bank debt associated with the sold
operations, as well as other associated liabilities.&nbsp; In addition, almost all of these businesses will continue to operate
under new ownership and in general their customary operating liabilities will be assumed by the new owners.&nbsp;
The Company
nevertheless will be subject to some continuing liabilities with respect to the pre-sale operations of these businesses, including,
for example, liabilities related to litigation, certain trade payables, parent guarantees, insurance, surety bonds, and real
estate.&nbsp; It is possible that the sale proceeds and the remaining assets of the towing services segment will not be sufficient
to satisfy such liabilities.&nbsp; The Company may also be subject to inefficiencies, management distractions, additional expenses
and uncertainties resulting from the rapid wind down of the infrastructure that was developed to provide administrative support to
over 100 towing service locations.&nbsp; Administrative services such as insurance and surety bond coverage must be maintained for
all remaining Company operations, but such services could become more expensive and difficult to maintain as the size of the
remaining operations decrease.&nbsp; Although the Company believes that it can manage the wind down effectively, there can be no
assurance that such will be the case.&nbsp; Even if the Company is able to manage the wind down effectively, it may nevertheless
have an adverse impact on the Company&rsquo;s operating results.</font></p>

<p align="center"><font size="2" face="Times New Roman">9</font></p>
<hr size="3" color="#000080">
<div STYLE="page-break-before: always">
  &nbsp;
</div>
<p style="margin-left: 60"><font size="2" face="Times New Roman"> In addition, the Company has experienced difficulty in
maintaining its insurance and surety bond coverage primarily as a result of disruption in these markets resulting from the events
of September 11, 2001, general economic conditions and the Company&rsquo;s operating results.&nbsp; Prospective purchasers of
towing services businesses have also experienced these difficulties, which could have an adverse impact on the ability of such
purchasers to affect business acquisitions at prices satisfactory to the Company.</font></p>
<p><font size="2" face="Times New Roman">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Net Income (Loss) Per Share</font></p>
<p style="margin-left: 60"><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.&nbsp; 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.&nbsp;
Diluted net income
per share takes into consideration the assumed conversion of outstanding stock options resulting in 8,000 potential dilutive common
shares for the nine months ended September 30, 2002 and 2,000 potential dilutive common shares for the three and nine months ended
September 30, 2001, respectively.&nbsp;</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">On October 1, 2001, the
Company affected a one-for-five reverse common stock split.&nbsp; All historical and per share amounts have been retroactively
restated to reflect the reverse common stock split.</font></p>

<p><font size="2" face="Times New Roman">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Inventories</font></p>
<p style="margin-left: 60"><font size="2" face="Times New Roman">Inventory costs include materials, labor and factory overhead.&nbsp;
Inventories are
stated at the lower of cost or market, determined on a first-in, first-out basis.</font></p>
<p style="margin-left: 60"><font size="2" face="Times New Roman">Inventories at September 30, 2002 and December 31, 2001 consisted of the following (in
thousands):</font></p>

<p><font size="2" face="Times New Roman"></font></p>

  <center>

<table border="0" cellspacing="0" cellpadding="0" width="443">
<tr>
<td valign="top" width="6"></td>
<td valign="top" width="149"></td>
<td valign="top" width="50"></td>
<td valign="top" width="102">
<p align="center"><b><font size="2" face="Times New Roman">September 30,<br />
 2002</font></b></p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="104">
<p align="center"><font size="2" face="Times New Roman">December 31,<br />
 2001</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
</tr>

<tr>
<td valign="top" width="6"></td>
<td valign="top" width="149">
<p><font size="2" face="Times New Roman">Chassis</font></p>
</td>
<td valign="top" width="50">
<p align="right"><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top" width="102">
<p align="right"><b><font size="2" face="Times New Roman">5,634</font></b></p>
</td>
<td valign="top" width="20">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="104">
<p align="right"><font size="2" face="Times New Roman">&nbsp; 8,157</font></p>
</td>
</tr>

<tr>
<td valign="top" width="6"></td>
<td valign="top" width="149">
<p><font size="2" face="Times New Roman">Raw Materials</font></p>
</td>
<td valign="top" width="50"></td>
<td valign="top" width="102">
<p align="right"><b><font size="2" face="Times New Roman">11,961</font></b></p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="104">
<p align="right"><font size="2" face="Times New Roman">12,187</font></p>
</td>
</tr>

<tr>
<td valign="top" width="6"></td>
<td valign="top" width="149">
<p><font size="2" face="Times New Roman">Work in process</font></p>
</td>
<td valign="top" width="50"></td>
<td valign="top" width="102">
<p align="right"><b><font size="2" face="Times New Roman">8,380</font></b></p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="104">
<p align="right"><font size="2" face="Times New Roman">9,614</font></p>
</td>
</tr>

<tr>
<td valign="top" width="6"></td>
<td valign="top" width="149">
<p><font size="2" face="Times New Roman">Finished goods</font></p>
</td>
<td valign="top" width="50"></td>
<td valign="top" width="102">
<p align="right"><b><font size="2" face="Times New Roman">26,931</font></b></p>
</td>
<td valign="top" width="20"></td>
<td valign="top" width="104">
<p align="right"><font size="2" face="Times New Roman">30,101</font></p>
</td>
</tr>

<tr>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top"></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
<td valign="top"></td>
<td valign="top">
<hr color="#000000" size="1">
</td>
</tr>

<tr>
<td valign="top" width="6"></td>
<td valign="top" width="149"></td>
<td valign="top" width="50">
<p align="right"><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top" width="102">
<p align="right"><b><font size="2" face="Times New Roman">52,906</font></b></p>
</td>
<td valign="top" width="20">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="104">
<p align="right"><font size="2" face="Times New Roman">60,059</font></p>
</td>
</tr>

<tr>
<td valign="top" width="6"></td>
<td valign="top" width="149"></td>
<td valign="top" width="50">
</td>
<td valign="top" width="102">
<hr color="#000000" size="3">
</td>
<td valign="top" width="20">
</td>
<td valign="top" width="104">
<hr color="#000000" size="3">
</td>
</tr>
</table>

  </center>
<p><font size="2" face="Times New Roman">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Special Charges and Other Expenses</font></p>
<p style="margin-left: 60"><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.&nbsp; As a result of such review during the eight months ended
December 31, 2001, the Company concluded that the carrying value of such assets in certain towing services markets and certain
assets within the Company&rsquo;s towing and recovery equipment segment were not fully recoverable.</font></p>
<p style="margin-left: 60"><font size="2" face="Times New Roman">Impairment charges of $10,778,000 were recorded in the eight months ended December 31,
2001 to write-down the goodwill in certain towing services markets to their estimated fair value.&nbsp; Additionally, charges of
$2,644,000 were recorded for the eight months ended December 31, 2001 to write-down the carrying value of certain fixed assets
(primarily property and equipment) in related markets to estimated fair value.&nbsp; The Company&nbsp;</font></p>

<p align="center"><font size="2" face="Times New Roman">10</font></p>
<hr size="3" color="#000080">
<div STYLE="page-break-before: always">
  &nbsp;
</div>

<p style="margin-left: 60"><font size="2" face="Times New Roman"> determined fair value for these
assets on a market by market basis taking into consideration various factors affecting the valuation in each market.</font></p>

<p style="margin-left: 60"><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.&nbsp; This evaluation indicated that the recorded amounts of goodwill
for certain of these investments were not fully recoverable.&nbsp; Impairment charges of $1,480,000 were recorded to reduce the
carrying amount of goodwill to estimated fair value at December 31, 2001.&nbsp; The Company recorded $1,770,000 of additional costs
related to the write-down of the carrying value of other long-lived assets of its towing and recovery equipment segment for the
eight months ended December 31, 2001.</font></p>
<p style="margin-left: 60"><font size="2" color="black" face="Times New Roman">In accordance with SFAS No. 121 and APB No. 17, the Company wrote-off
goodwill and long-lived assets of $3,250,000 associated with the towing and recovery equipment segment as of December 31,
2001.&nbsp; Additionally, during the eight months ended December 31, 2001, the Company wrote-off goodwill and long-lived assets
associated with the towing services segment of $13,422,000.&nbsp; Management believes its long-lived assets are appropriately
valued following the impairment charges.</font></p>
<p>&nbsp;<font size="2" face="Times New Roman">7.&nbsp;</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<font size="2" face="Times New Roman">Goodwill and Other Long-Lived Assets</font></p>
<p style="margin-left: 60"><font size="2" color="black" face="Times New Roman">In June 2001, the FASB issued SFAS No. 141, &ldquo;Business
Combinations&rdquo; and SFAS No. 142, &ldquo;Goodwill and Other Intangible Assets&rdquo; (collectively the
&ldquo;Standards&rdquo;).&nbsp; The Standards were effective for fiscal years beginning after December 15, 2001.&nbsp; Companies
with fiscal years beginning after March 15, 2001 could early adopt, but only as of the beginning of that fiscal year and only if
all existing goodwill was evaluated for impairment by the end of that fiscal year.&nbsp; SFAS No. 141 requires 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.&nbsp; The Standards require the value of a separately identifiable intangible asset
meeting any of the criteria to be measured at its fair value.&nbsp; SFAS No. 142 requires that goodwill not be amortized and that
amounts recorded as goodwill be tested for impairment.&nbsp; Annual impairment tests 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, operations, and assets of the entity.</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">Upon adoption of SFAS No. 142 in January 2002, the Company ceased to amortize
goodwill.&nbsp; In lieu of amortization, the Company is required to perform an initial impairment review of goodwill in 2002 and an
annual impairment review thereafter.&nbsp; As a result of impairment reviews, the Company wrote-off goodwill of $2,886,000 in the
towing equipment segment and $18,926,000 in the towing services segment during the nine months ended September 30, 2002.&nbsp; The
write-off has been accounted for as a cumulative effect of change in accounting principle to reflect application of the new
accounting standards.</font></p>
<p>&nbsp;<font size="2" face="Times New Roman">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Long-Term Obligations</font></p>
<p style="margin-left: 60"><b><font size="2" face="Times New Roman">2001 Credit Facility</font></b></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
&ldquo;Credit Facility&rdquo;) with a syndicate of lenders to replace the existing credit facility.&nbsp; As part of this</font></p>

<p align="center"><font size="2" face="Times New Roman">11</font></p>
<hr size="3" color="#000080">
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  &nbsp;
</div>

<p style="margin-left: 60"><font size="2" face="Times New Roman">
agreement, the previous credit facility was reduced with proceeds from the Credit Facility and amended to provide for a $14.0
million subordinated secured facility.&nbsp; The Credit Facility originally consisted of an aggregate $102.0 million revolving
credit facility and an $8.0 million term loan.&nbsp; The revolving credit facility provides for separate and distinct loan
commitment levels for the Company&rsquo;s towing and recovery equipment segment and RoadOne segment, respectively.&nbsp; At
September 30, 2002, $36.7 million and $19.8 million, respectively were outstanding under the towing and recovery equipment segment
and RoadOne portions of the revolving credit facility.&nbsp; In addition, $4.9 million was outstanding under the senior term loan,
and $14.4 million was outstanding under the subordinated secured facility.&nbsp;</font></p>

<p style="margin-left: 60"><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 as separately calculated for the towing and recovery equipment segment and the
RoadOne segment, respectively.&nbsp; Borrowings under the term loan are collateralized by the Company&rsquo;s property, plant, and
equipment.&nbsp; The Company is required to make monthly amortization payments on the term loan of $167,000.&nbsp; 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>

<p style="margin-left: 60"><font size="2" color="black" face="Times New Roman">The Credit</font> <font size="2">Facility
<font color="black">matures in July
2005 and is collateralized by substantially all the assets of the Company.&nbsp; The Credit Facility contains requirements relating
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).&nbsp; In addition, the Credit
Facility contains restrictions on capital expenditures, incurrence of indebtedness, mergers and acquisitions, distributions and
transfers and sales of assets.&nbsp; The Credit Facility also contains requirements related to weekly and monthly collateral
reporting.</font></font></p>
<p style="margin-left: 60"><font size="2" color="black" face="Times New Roman">The subordinated secured facility matures in July 2003 and bears interest at
6.0% over the prime rate.&nbsp; 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.&nbsp; The subordinated secured facility is collateralized by certain
specified assets of the Company and by a second priority lien and security interest in substantially all other assets of the
Company.&nbsp; 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.&nbsp; The subordinated secured
facility also contains provisions for the issuance of warrants for up to 0.5% of the outstanding shares of the Company&rsquo;s
common stock in July 2002 and up to an additional 1.5% in July 2003.&nbsp; The number of warrants which may be issued would be
reduced pro rata as the balance of the subordinated secured facility is reduced.&nbsp; On
July 23, 2002, the Company issued 47,417 warrants for the purchase of common stock in conjunction with these related provisions.</font></p>
<p style="margin-left: 60"><font size="2" color="black" face="Times New Roman">The</font> <font size="2">subordinated
<font color="black">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></font></p>
<p style="margin-left: 60"><b><font size="2" face="Times New Roman">2002 Amendments</font></b></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">On February 28, 2002 the Company entered into a Forbearance Agreement and First
Amendment to Credit Agreement with the lenders under the Credit Facility, as amended&nbsp;</font></p>

<p align="center"><font size="2" face="Times New Roman">12</font></p>
<hr size="3" color="#000080">
<div STYLE="page-break-before: always">
  &nbsp;
</div>

<p style="margin-left: 60"><font size="2" face="Times New Roman"> by that certain Amendment to Forbearance
Agreement dated as of March 18, 2002 and that certain Second Amendment to the Forbearance Agreement dated as of March 29, 2002 (as
so amended, the &ldquo;Forbearance Agreement&rdquo;).&nbsp; As a result of a revised asset appraisal conducted by the senior
lenders, the senior lenders determined that the amounts outstanding under the Credit Facility should be lowered below the amount
then outstanding under the Credit Facility, causing the Company to be over-advanced on its line of credit which resulted in the
occurrence of an event of default under the Credit Facility and a corresponding event of default under the Junior Credit
Facility.&nbsp; The Forbearance Agreement and subsequent amendments waived the Company&rsquo;s overadvance under the Credit
Facility and amended the terms of the credit agreement to, among other things, (i) permanently reduce the commitment levels to
$42.0 million for the towing and recovery equipment segment and $36.0 million for the RoadOne segment portion of the revolving
credit facility and $6,611,000 for the term loan facility, (ii) eliminate the Company&rsquo;s ability to borrow funds at a LIBOR
rate of interest, and (iii) increase the interest rate to a floating rate of interest equal to the prime rate plus
2.75%.</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">On April 15, 2002 the Company entered into the Second Amendment to the Credit Facility,
pursuant to which, among other things: (i) the senior lenders waived the overadvance event of default and other events of default,
(ii) interest on advances will be charged at the <font color="black">prime rate (as defined) plus 2.75% on the revolving portion
and the term portion, subject to substantial upward adjustments in the interest rate on and after certain specified dates based on
the amounts outstanding if the scheduled loan reductions are not achieved under the revolving loan commitment relating to RoadOne
(escalating at generally quarterly intervals from prime plus 4.50% as of October 1, 2002 to prime plus 14.00% as of April 1, 2005)
and (iii) the revolving loan commitment amount relating to RoadOne is subject to mandatory reductions over time commencing August&nbsp;12, 2002, which reductions will require a mandatory repayment of portions of outstanding loans at specified dates and the failure
to timely make such repayments shall result in an event of default under the bank credit agreements.&nbsp;
The RoadOne revolving
commitment amount, which was set at $36.0 million through the April 15, 2002 amendment, is scheduled to be reduced as
follows:&nbsp; August 12, 2002 &ndash; to $34.0 million; October 12, 2002 &ndash; to $30.0 million; March 31, 2003 &ndash; to $27.0
million; thereafter &ndash; quarterly reductions of $3.0 million through June 30, 2005, the approximate stated loan termination
date.&nbsp; At September 30, 2002, the balance of the RoadOne revolver was $19.8 million.</font></font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">On April 15, 2002 the Company also amended the Junior Credit Facility, pursuant to which,
among other things, (i) the junior lenders waived the events of default, and (<font color="black">ii) extended the time for payment
of certain scheduled amortization payments and receive certain of its interest as &ldquo;payment in kind&rdquo; to be added to the
principal balance.&nbsp; On April 15, 2002, the junior lender agent, the senior lender agent and the Company entered into an
Amended and Restated Intercreditor and Subordination Agreement, pursuant to which, among other things, subject to certain terms and
conditions, the junior lenders have agreed to defer the required payment of amortization payments under the Junior Credit Facility
until November 20, 2002, April 5, 2003 and May 20, 2003.&nbsp;</font></font></p>
<p style="margin-left: 60"><font size="2" face="Times New Roman">On September 13, 2002, the Company entered into the Third Amendment to Credit Agreement in
connection with its senior credit facility.&nbsp; Pursuant to the Third Amendment, the amount of the mandatory periodic reductions
in the RoadOne revolving loan commitment amount, as established in the April 15, 2002 Second Amendment to Credit Agreement, were
increased by amounts calculated based on updated asset appraisals completed in September 2002.&nbsp;
Consequently, the Company will
need to repay outstanding loans and permanently reduce the RoadOne loan commitment under its senior credit facility over the life
of the loan and prior to the maturity date.&nbsp; Pursuant to</font></p>

<p align="center"><font size="2" face="Times New Roman">13</font></p>
<hr size="3" color="#000080">
<div STYLE="page-break-before: always">
  &nbsp;
</div>
<p>&nbsp;</p>
<p style="margin-left: 60"><font size="2" face="Times New Roman">the terms of the Second and Third Amendments, the failure by the
Company to repay outstanding loans and to reduce the RoadOne revolving loan commitment by the amounts and the times required
pursuant to these amendments will result in increased interest rates on the senior loans and/or the occurrence of an event of
default under the senior credit agreement.</font></p>
<p style="margin-left: 60"><font size="2" face="Times New Roman">In addition, pursuant to the Third Amendment, the amount of certain used inventory taken
in trade that may be considered as eligible inventory for collateral purposes was limited to $4.3 million (subject to downward
adjustments upon certain sales of sales of assets and stock by the Company and certain of its subsidiaries) through February 28,
2003 and reduced to $0 thereafter.&nbsp; Accordingly, after February 28, 2003 the Company will not be able to include used goods
taken in trade for purposes of determining borrowing availability under its existing senior loan facility and this may result in
additional mandatory pay downs of outstanding loans.</font></p>
<p style="margin-left: 60"><font size="2" face="Times New Roman">On November 14, 2002, the Company entered into the Fourth Amendment to the Credit
Facility, which granted waivers from the Senior Lenders of violations of certain financial covenants for the quarter ended
September 2002. There were no violations under the Junior Credit facility. The Amendment also reduced the level of certain
financial covenants for future periods, basing them strictly on the results of the towing and recovery equipment segment for those
periods. In addition, the amendment revised the Road One revolving commitment amount based on the plan to sell all remaining towing
service operations, reducing the commitment amount to $15.0 million at November 30, 2002, $12.0 million at December 31, 2002, $9.0
million at January 31,2003, $6.0 million at February 28, 2003 and reducing to zero as of March 31, 2003.
The entire Road One revolving line of credit has been classified as current
maturities to
reflect the commitment amounts set forth in the November 2002
amendments.&nbsp;&nbsp; At November 14, 2002, the
actual balance under the Road One Revolving line of credit was $15.7 million.</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">Meeting the new repayment schedule will require that the Company sell its towing services
businesses according to its contemplated schedule on acceptable terms.&nbsp; While the Company believes its timetable for sales is
achievable, there can be no assurance that the schedule can be met.</font></p>
<p style="margin-left: 60"><font size="2" face="Times New Roman">The Company may continue to have difficulties in the future making the mandatory
repayments and complying with the covenants and other requirements of the Credit Facility, and in such event would have to seek
additional waivers or amendments.&nbsp; Such waivers typically require payment of substantial additional fees, and there can be no
assurance that the lenders will agree to any future waivers or amendments.&nbsp;
The Company&rsquo;s bank facilities are
collateralized by liens on all of the Company&rsquo;s assets.&nbsp; The liens give the lenders the right to foreclose on the assets
of the Company under certain defined events of default and such foreclosure could allow the lenders to gain control of the
operations of the Company.&nbsp;</font></p>
<p style="margin-left: 60"><font size="2" face="Times New Roman">The Company believes that it will be able to maintain compliance with the financial
covenants established by the various amendments to the Credit Facility, which will allow the Company to maintain sufficient
liquidity in 2002 to fund operations.&nbsp; Failure to achieve the Company&rsquo;s revenue and income projections, or to sell
towing service operations for the prices and on the timetable contemplated, could result in failure to comply with the amended debt
service requirements.&nbsp; Such non-compliance would result in an event of default, which if not waived by the lending groups
would result in the acceleration of the amounts due under the Credit Facility as well as other remedies.&nbsp;
Under these
circumstances the Company could be required to find alternative funding sources, such as sale of assets or other financing
sources.&nbsp; If the Company were unable to refinance the Credit Facility on acceptable terms or find an alternative source of&nbsp;</font></p>

<p align="center"><font size="2" face="Times New Roman">14</font></p>
<hr size="3" color="#000080">
<div STYLE="page-break-before: always">
  &nbsp;
</div>

<p style="margin-left: 60"><font size="2" face="Times New Roman">
repayment for the Credit Facility, the Company&rsquo;s business and financial condition would be materially and adversely
affected.&nbsp; There is no assurance that the Company would be able to obtain any such refinancing or that it would be able to
sell assets on terms that are acceptable to the Company or at all.</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">Prior to making the determination to sell all of its remaining towing services operations,
the Company had focused on cost reduction and expense control, as well as other opportunities for improving operating cash flows,
to improve liquidity. The Company has also disposed of certain underperforming RoadOne assets and operations in order to improve
liquidity and to reduce expenses and debt.&nbsp; As described in Note 3, in October 2002, the Company decided to sell all remaining
towing services operations.&nbsp; The Company received a tax refund of approximately $4.2 million during the quarter ended June 30,
2002, which also reduced the RoadOne revolver and cured the overadvance position that existed at that
time.&nbsp; An additional tax
refund of approximately $4.6 million was received during the quarter ended September 30, 2002, with proceeds used to further reduce
the borrowings under the RoadOne revolver.&nbsp; All of these efforts have resulted in $18.3 million in reductions to the RoadOne
revolver since December 31, 2001.&nbsp; Additionally, the towing and recovery equipment revolver and the term loan have been
reduced $3.5 million and $2.3 million, respectively, since year end.</font></p>
<p><font size="2" face="Times New Roman">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Commitments and Contingencies</font></p>
<p style="margin-left: 60"><font size="2" face="Times New Roman">The Company is, from time to time, a party to litigation arising in the normal course of
its business.&nbsp; Management believes that the Company maintains adequate insurance coverage and as a result, none of these
actions, individually or in the aggregate are expected to have a material adverse effect on the financial position or operations of
the Company.</font></p>
<p><font size="2" face="Times New Roman">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Income Taxes</font></p>
<p style="margin-left: 60"><font size="2" face="Times New Roman">A deferred tax asset valuation allowance of $7.1 million was established as of December
31, 2001.&nbsp; As of September 30, 2002, the deferred tax asset valuation allowance was increased to $8.6 million.&nbsp;
The
valuation allowance reflects the Company&rsquo;s recognition that continuing losses from operations and certain liquidity matters
discussed in Note 2 indicate that it is more likely than not that certain future tax benefits will not be realized as a result of
future taxable income.</font></p>
<p><font size="2" face="Times New Roman">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Comprehensive Income</font></p>
<p style="margin-left: 60"><font size="2" face="Times New Roman">The Company has other comprehensive income (loss) in the form of cumulative translation
adjustments and amortization of losses on early termination of interest rate swap transactions as more fully discussed in Note
12.&nbsp; Total other comprehensive income (loss) of approximately $(67,000) and $94,000 were recorded for the three months ended
September 30, 2002 and 2001, respectively; and $196,000 and $(155,000) were recorded for the nine months ended September 30, 2002
and 2001, respectively.</font></p>
<p><font size="2" face="Times New Roman">12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</font><font size="2" face="Times New
Roman">Financial Instruments And Hedging Activities</font></p>

<p style="margin-left: 60"><font size="2" color="black" face="Times New Roman">SFAS No. 133 &ldquo;Accounting for Derivative Instruments and Hedging
Activities&rdquo;, establishes accounting and reporting standards requiring that every derivative instrument (including certain
derivatives embedded in other contracts) be recorded in the balance sheet as either an asset or liability measured at its fair
value.&nbsp; SFAS No. 133 requires that</font></p>

<p align="center"><font size="2" face="Times New Roman">15</font></p>
<hr size="3" color="#000080">
<div STYLE="page-break-before: always">
  &nbsp;
</div>

<p style="margin-left: 60"><font size="2" color="black" face="Times New Roman">changes in the derivatives fair value be recognized currently in earnings unless specific
hedge criteria are met.&nbsp; Special accounting for qualifying hedges allows a derivative&rsquo;s gains and losses to offset
related results on the hedged item on the income statement, and requires that the Company must formally document, designate, and
assess the effectiveness of transactions that receive hedge accounting</font><font size="2" face="Times New Roman">.</font></p>

<p style="margin-left: 60"><font size="2" color="black" face="Times New Roman">In October 2001, the Company obtained interest rate swaps as required by
terms in its Credit Facility to hedge exposure to market fluctuations.&nbsp; The interest rate swaps covered $40.0 million in
notional amounts of variable rate debt and with fixed rates ranging from 2.535% to 3.920%.&nbsp; The swaps expired annually
from October 2002 to October 2004.&nbsp; Because the Company hedges only with derivatives that have high correlation with the
underlying transaction pricing, changes in derivatives fair values and the underlying pricing largely offset.&nbsp; The hedges were
deemed to be fully effective resulting in a pretax loss of $12,000 recorded in Other Comprehensive Loss at December 31, 2001.&nbsp;
Upon expiration of these hedges, the amount recorded in Other Comprehensive Loss will be reclassified into earnings as
interest.&nbsp; During the first quarter of 2002, the borrowing base was converted from LIBOR to prime, which rendered the swap
ineffective as a hedge.&nbsp; Accordingly, concurrent with the conversion, the Company prematurely terminated the swap in February
2002 at a cost of $341,000.&nbsp; The resulting loss was recorded in Other Comprehensive Loss in February 2002 and will be
reclassified to earnings as interest expense over the term of the Credit Facility.</font></p>

<p style="margin-left: 60"><font size="2" color="black" face="Times New Roman">At September 30, 2002, the Company had no other derivative instruments or
hedging transactions.</font></p>

<p><font size="2" face="Times New Roman">13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Recent Accounting Pronouncements</font></p>

<p style="margin-left: 60"><font size="2" color="black" face="Times New Roman">In April 2002, the FASB issued SFAS No. 145, &ldquo;Rescission of SFAS Nos.
4, 44, and 64, Amendment of SFAS No. 13, and Technical Corrections as of April 2002.&rdquo;&nbsp; This Statement rescinds SFAS No.
4, &ldquo;Reporting Gains and Losses from Extinguishment of DEBT&rdquo;, and an amendment of that Statement, SFAS No. 64,
&ldquo;Extinguishments of Debt Made to Satisfy Sinking-Fund Requirements.&rdquo;&nbsp; This Statement also rescinds SFAS No. 44,
&ldquo;Accounting for Intangible Assets of Motor Carriers.&rdquo;&nbsp; This Statement amends SFAS No. 13, &ldquo;Accounting for
Leases&rdquo;, to eliminate an inconsistency between the required accounting for sale-leaseback transactions and the required
accounting for certain lease modifications that have economic effects that are similar to sale-leaseback transactions.&nbsp; SFAS
No. 145 will be effective for fiscal 2003, which begins January 1, 2002.&nbsp; Management does not expect the adoption of this
statement to have a material impact on the Company&rsquo;s results of operations of financial position.</font></p>

<p style="margin-left: 60"><font size="2" color="black" face="Times New Roman">FASB has issued SFAS No. 146, &ldquo;Accounting for Exit or Disposal
Activities&rdquo;. SFAS 146 addresses the recognition, measurement, and reporting of costs that are associated with exit and
disposal activities, including costs related to terminating a contract that is not a capital lease and termination benefits that
employees who are involuntarily terminated receive under the terms of a one-time benefit arrangement that is not an ongoing benefit
arrangement or an individual deferred-compensation contract.&nbsp; SFAS 146 supersedes Emerging Issues Task Force Issue No. 94-3,
&ldquo;Liability Recognition for Certain Employee Termination Benefits and Other Costs to Exit an Activity (including Certain Costs
Incurred in a Restructuring)&rdquo; and requires liabilities associated with exit and disposal activities to be expensed as
incurred.&nbsp; SFAS 146 will be effective for exit or disposal activities of the Company that are initiated after December 31,
2002.</font></p>

<p align="center"><font size="2" face="Times New Roman">16</font></p>
<hr size="3" color="#000080">
<div STYLE="page-break-before: always">
  &nbsp;
</div>

<p><font size="2" face="Times New Roman">14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Segment Information</font></p>
<p style="margin-left: 60"><font size="2" face="Times New Roman">The Company operates in two principal operating segments:&nbsp;
(i) towing and recovery
equipment and (ii) towing services.&nbsp; The table below presents information about reported segments for the three and nine
months ended September 30, 2002 and 2001 (in thousands):</font></p>

<table border="0" cellspacing="4" cellpadding="0" width="645">
<tr>
<td valign="bottom" width="331"></td>
<td valign="bottom" width="72">
<p align="right"><font size="2" face="Times New Roman">Towing and<br />
 Recovery<br />
 Equipment</font></p>
</td>
<td valign="bottom" width="75">
<p align="right"><font size="2" face="Times New Roman">Towing<br />
 Services</font></p>
</td>
<td valign="bottom" width="86">
<p align="right"><font size="2" face="Times New Roman">Eliminations</font></p>
</td>
<td valign="bottom" width="71">
<p align="right"><font size="2" face="Times New Roman">Consolidated</font></p>
</td>
</tr>

<tr>
<td valign="bottom" width="331"></td>
<td valign="bottom" width="72">
<hr color="#000000" size="1">
</td>
<td valign="bottom" width="75">
<hr color="#000000" size="1">
</td>
<td valign="bottom" width="86">
<hr color="#000000" size="1">
</td>
<td valign="bottom" width="71">
<hr color="#000000" size="1">
</td>
</tr>

<tr>
<td valign="top" width="331">&nbsp;</td>
<td valign="top" width="72"></td>
<td valign="top" width="75"></td>
<td valign="top" width="86"></td>
<td valign="top" width="71"></td>
</tr>

<tr>
<td valign="top" width="331">
<p><b><font size="2" face="Times New Roman">For the three months ended<br />
 September 30, 2002:</font></b></p>
</td>
<td valign="top" width="72"></td>
<td valign="top" width="75"></td>
<td valign="top" width="86"></td>
<td valign="top" width="71"></td>
</tr>

<tr>
<td valign="top" width="331">
<p><font size="2" face="Times New Roman">Net sales-external</font></p>
</td>
<td valign="top" width="72">
<p align="right"><font size="2" face="Times New Roman">$69,786&nbsp;</font></p>
</td>
<td valign="top" width="75">
<p align="right"><font size="2" face="Times New Roman">$24,014&nbsp;</font></p>
</td>
<td valign="top" width="86">
<p align="right"><font size="2" face="Times New
Roman">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; --&nbsp;</font></p>
</td>
<td valign="top" width="71">
<p align="right"><font size="2" face="Times New Roman">$93,800&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="331">
<p><font size="2" face="Times New Roman">Net sales-internal</font></p>
</td>
<td valign="top" width="72">
<p align="right"><font size="2" face="Times New Roman">692&nbsp;</font></p>
</td>
<td valign="top" width="75">
<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
<td valign="top" width="86">
<p align="right"><font size="2" face="Times New Roman">(692)</font></p>
</td>
<td valign="top" width="71">
<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="331">
<p><font size="2" face="Times New Roman">Operating income (loss)</font></p>
</td>
<td valign="top" width="72">
<p align="right"><font size="2" face="Times New Roman">1,699&nbsp;</font></p>
</td>
<td valign="top" width="75">
<p align="right"><font size="2" face="Times New Roman">(172)</font></p>
</td>
<td valign="top" width="86">
<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
<td valign="top" width="71">
<p align="right"><font size="2" face="Times New Roman">1,527&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="331">
<p><font size="2" face="Times New Roman">Interest expense, net</font></p>
</td>
<td valign="top" width="72">
<p align="right"><font size="2" face="Times New Roman">1,740&nbsp;</font></p>
</td>
<td valign="top" width="75">
<p align="right"><font size="2" face="Times New Roman">376&nbsp;</font></p>
</td>
<td valign="top" width="86">
<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
<td valign="top" width="71">
<p align="right"><font size="2" face="Times New Roman">2,116&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="331">
<p><font size="2" face="Times New Roman">Income (loss) from continuing operations<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;before income taxes</font></p>
</td>
<td valign="top" width="72">

<p align="right"><font size="2" face="Times New Roman">(41)</font></p>
</td>
<td valign="top" width="75">

<p align="right"><font size="2" face="Times New Roman">(548)</font></p>
</td>
<td valign="top" width="86">

<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
<td valign="top" width="71">

<p align="right"><font size="2" face="Times New Roman">(589)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="331">
<p><font size="2" face="Times New Roman">Loss from discontinued operations</font></p>
</td>
<td valign="top" width="72">
<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
<td valign="top" width="75">
<p align="right"><font size="2" face="Times New Roman">(162)</font></p>
</td>
<td valign="top" width="86">
<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
<td valign="top" width="71">
<p align="right"><font size="2" face="Times New Roman">(162)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="331">
<p><font size="2" face="Times New Roman">Gain (loss) from disposals of discontinued<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;operations</font></p>
</td>
<td valign="top" width="72">

<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
<td valign="top" width="75">

<p align="right"><font size="2" face="Times New Roman">(32)</font></p>
</td>
<td valign="top" width="86">

<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
<td valign="top" width="71">

<p align="right"><font size="2" face="Times New Roman">(32)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="331">
<p><font size="2" face="Times New Roman">Total assets</font></p>
</td>
<td valign="top" width="72">
<p align="right"><font size="2" face="Times New Roman">217,101&nbsp;</font></p>
</td>
<td valign="top" width="75">
<p align="right"><font size="2" face="Times New Roman">48,594&nbsp;</font></p>
</td>
<td valign="top" width="86">
<p align="right"><font size="2" face="Times New Roman">(61,579)</font></p>
</td>
<td valign="top" width="71">
<p align="right"><font size="2" face="Times New Roman">204,116&nbsp;</font></p>
</td>
</tr>

<tr height="10">
<td height="10" valign="top" width="331"></td>
<td height="10" valign="top" width="72"></td>
<td height="10" valign="top" width="75"></td>
<td height="10" valign="top" width="86"></td>
<td height="10" valign="top" width="71"></td>
</tr>

<tr>
<td valign="top" width="331">
<p><b><font size="2" face="Times New Roman">For the three months ended<br />
 September 30, 2001:</font></b></p>
</td>
<td valign="top" width="72"></td>
<td valign="top" width="75"></td>
<td valign="top" width="86"></td>
<td valign="top" width="71"></td>
</tr>

<tr>
<td valign="top" width="331">
<p><font size="2" face="Times New Roman">Net sales-external</font></p>
</td>
<td valign="top" width="72">
<p align="right"><font size="2" face="Times New Roman">$74,037&nbsp;</font></p>
</td>
<td valign="top" width="75">
<p align="right"><font size="2" face="Times New Roman">$24,493&nbsp;</font></p>
</td>
<td valign="top" width="86">
<p align="right"><font size="2" face="Times New
Roman">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; --&nbsp;</font></p>
</td>
<td valign="top" width="71">
<p align="right"><font size="2" face="Times New Roman">$98,530&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="331">
<p><font size="2" face="Times New Roman">Net sales-internal</font></p>
</td>
<td valign="top" width="72">
<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
<td valign="top" width="75">
<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
<td valign="top" width="86">
<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
<td valign="top" width="71">
<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="331">
<p><font size="2" face="Times New Roman">Operating income (loss)</font></p>
</td>
<td valign="top" width="72">
<p align="right"><font size="2" face="Times New Roman">2,071&nbsp;</font></p>
</td>
<td valign="top" width="75">
<p align="right"><font size="2" face="Times New Roman">476&nbsp;</font></p>
</td>
<td valign="top" width="86">
<p align="right"><font size="2" face="Times New Roman">33&nbsp;</font></p>
</td>
<td valign="top" width="71">
<p align="right"><font size="2" face="Times New Roman">2,580&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="331">
<p><font size="2" face="Times New Roman">Interest expense, net</font></p>
</td>
<td valign="top" width="72">
<p align="right"><font size="2" face="Times New Roman">1,581&nbsp;</font></p>
</td>
<td valign="top" width="75">
<p align="right"><font size="2" face="Times New Roman">849&nbsp;</font></p>
</td>
<td valign="top" width="86">
<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
<td valign="top" width="71">
<p align="right"><font size="2" face="Times New Roman">2,430&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="331">
<p><font size="2" face="Times New Roman">Income (loss) from continuing operations<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;before income taxes</font></p>
</td>
<td valign="top" width="72">

<p align="right"><font size="2" face="Times New Roman">490&nbsp;</font></p>
</td>
<td valign="top" width="75">

<p align="right"><font size="2" face="Times New Roman">(373)</font></p>
</td>
<td valign="top" width="86">

<p align="right"><font size="2" face="Times New Roman">33&nbsp;</font></p>
</td>
<td valign="top" width="71">

<p align="right"><font size="2" face="Times New Roman">150&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="331">
<p><font size="2" face="Times New Roman">Loss from discontinued operations</font></p>
</td>
<td valign="top" width="72">
<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
<td valign="top" width="75">
<p align="right"><font size="2" face="Times New Roman">(854)</font></p>
</td>
<td valign="top" width="86">
<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
<td valign="top" width="71">
<p align="right"><font size="2" face="Times New Roman">(854)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="331">
<p><font size="2" face="Times New Roman">Gain (loss) from disposals of discontinued<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;operations</font></p>
</td>
<td valign="top" width="72">

<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
<td valign="top" width="75">

<p align="right"><font size="2" face="Times New Roman">(245)</font></p>
</td>
<td valign="top" width="86">

<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
<td valign="top" width="71">

<p align="right"><font size="2" face="Times New Roman">(245)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="331">
<p><font size="2" face="Times New Roman">Total assets</font></p>
</td>
<td valign="top" width="72">
<p align="right"><font size="2" face="Times New Roman">251,205&nbsp;</font></p>
</td>
<td valign="top" width="75">
<p align="right"><font size="2" face="Times New Roman">93,021</font></p>
</td>
<td valign="top" width="86">
<p align="right"><font size="2" face="Times New Roman">(71,074)</font></p>
</td>
<td valign="top" width="71">
<p align="right"><font size="2" face="Times New Roman">273,152&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="331"></td>
<td valign="top" width="72"></td>
<td valign="top" width="75"></td>
<td valign="top" width="86"></td>
<td valign="top" width="71"></td>
</tr>

<tr>
<td valign="top" width="331">
<p><b><font size="2" face="Times New Roman">For the nine months ended<br />
 September 30, 2002:</font></b></p>
</td>
<td valign="top" width="72"></td>
<td valign="top" width="75"></td>
<td valign="top" width="86"></td>
<td valign="top" width="71"></td>
</tr>

<tr>
<td valign="top" width="331">
<p><font size="2" face="Times New Roman">Net sales-external</font></p>
</td>
<td valign="top" width="72">
<p align="right"><font size="2" face="Times New Roman">$215,287</font></p>
</td>
<td valign="top" width="75">
<p align="right"><font size="2" face="Times New Roman">$71,286</font></p>
</td>
<td valign="top" width="86">
<p align="right"><font size="2" face="Times New
Roman">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
- --&nbsp;</font></p>
</td>
<td valign="top" width="71">
<p align="right"><font size="2" face="Times New Roman">$286,573&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="331">
<p><font size="2" face="Times New Roman">Net sales-internal</font></p>
</td>
<td valign="top" width="72">
<p align="right"><font size="2" face="Times New Roman">2,013</font></p>
</td>
<td valign="top" width="75">
<p align="right"><font size="2" face="Times New Roman">--</font></p>
</td>
<td valign="top" width="86">
<p align="right"><font size="2" face="Times New Roman">(2,013)</font></p>
</td>
<td valign="top" width="71">
<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="331">
<p><font size="2" face="Times New Roman">Operating income (loss)</font></p>
</td>
<td valign="top" width="72">
<p align="right"><font size="2" face="Times New Roman">6,942</font></p>
</td>
<td valign="top" width="75">
<p align="right"><font size="2" face="Times New Roman">151</font></p>
</td>
<td valign="top" width="86">
<p align="right"><font size="2" face="Times New Roman">1&nbsp;</font></p>
</td>
<td valign="top" width="71">
<p align="right"><font size="2" face="Times New Roman">7,094&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="331">
<p><font size="2" face="Times New Roman">Interest expense, net</font></p>
</td>
<td valign="top" width="72">
<p align="right"><font size="2" face="Times New Roman">5,113</font></p>
</td>
<td valign="top" width="75">
<p align="right"><font size="2" face="Times New Roman">1,205</font></p>
</td>
<td valign="top" width="86">
<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
<td valign="top" width="71">
<p align="right"><font size="2" face="Times New Roman">6,318&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="331">
<p><font size="2" face="Times New Roman">Income (loss) from continuing operations<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;before income taxes</font></p>
</td>
<td valign="top" width="72">

<p align="right"><font size="2" face="Times New Roman">1,829</font></p>
</td>
<td valign="top" width="75">

<p align="right"><font size="2" face="Times New Roman">(1,054)</font></p>
</td>
<td valign="top" width="86">

<p align="right"><font size="2" face="Times New Roman">1&nbsp;</font></p>
</td>
<td valign="top" width="71">

<p align="right"><font size="2" face="Times New Roman">776&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="331">
<p><font size="2" face="Times New Roman">Loss from discontinued operations</font></p>
</td>
<td valign="top" width="72">
<p align="right"><font size="2" face="Times New Roman">--</font></p>
</td>
<td valign="top" width="75">
<p align="right"><font size="2" face="Times New Roman">(1,566)</font></p>
</td>
<td valign="top" width="86">
<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
<td valign="top" width="71">
<p align="right"><font size="2" face="Times New Roman">(1,566)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="331">
<p><font size="2" face="Times New Roman">Gain (loss) from disposals of discontinued<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;operations</font></p>
</td>
<td valign="top" width="72">

<p align="right"><font size="2" face="Times New Roman">--</font></p>
</td>
<td valign="top" width="75">

<p align="right"><font size="2" face="Times New Roman">(92)</font></p>
</td>
<td valign="top" width="86">

<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
<td valign="top" width="71">

<p align="right"><font size="2" face="Times New Roman">(92)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="331">
<p><font size="2" face="Times New Roman">Cumulative effect of change in accounting<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;method</font></p>
</td>
<td valign="top" width="72">

<p align="right"><font size="2" face="Times New Roman">(2,886)</font></p>
</td>
<td valign="top" width="75">

<p align="right"><font size="2" face="Times New Roman">(18,926)</font></p>
</td>
<td valign="top" width="86">

<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
<td valign="top" width="71">

<p align="right"><font size="2" face="Times New Roman">(21,812)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="331">
<p><font size="2" face="Times New Roman">Total assets</font></p>
</td>
<td valign="top" width="72">
<p align="right"><font size="2" face="Times New Roman">217,101</font></p>
</td>
<td valign="top" width="75">
<p align="right"><font size="2" face="Times New Roman">48,594</font></p>
</td>
<td valign="top" width="86">
<p align="right"><font size="2" face="Times New Roman">(61,579)</font></p>
</td>
<td valign="top" width="71">
<p align="right"><font size="2" face="Times New Roman">204,116&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="331"></td>
<td valign="top" width="72"></td>
<td valign="top" width="75"></td>
<td valign="top" width="86"></td>
<td valign="top" width="71"></td>
</tr>

<tr>
<td valign="top" width="331"></td>
<td valign="top" width="72"></td>
<td valign="top" width="75"></td>
<td valign="top" width="86"></td>
<td valign="top" width="71"></td>
</tr>

</table>

<p align="center"><font size="2" face="Times New Roman">17</font></p>
<hr size="3" color="#000080">
<div STYLE="page-break-before: always">
  &nbsp;
</div>

<p>&nbsp;</p>

<table border="0" cellspacing="5" cellpadding="0" width="644">

<tr>
<td valign="top" width="327">
<p><b><font size="2" face="Times New Roman">For the nine months ended<br />
 September 30, 2001:</font></b></p>
</td>
<td valign="top" width="77">
<p align="right"></p>
</td>
<td valign="top" width="70"></td>
<td valign="top" width="86"></td>
<td valign="top" width="74"></td>
</tr>

<tr>
<td valign="top" width="327">
<p><font size="2" face="Times New Roman">Net sales-external</font></p>
</td>
<td valign="top" width="77">
<p align="right"><font size="2" face="Times New Roman">$234,369</font></p>
</td>
<td valign="top" width="70">
<p align="right"><font size="2" face="Times New Roman">$74,836&nbsp;</font></p>
</td>
<td valign="top" width="86">
<p align="right"><font size="2" face="Times New
Roman">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
- --&nbsp;</font></p>
</td>
<td valign="top" width="74">
<p align="right"><font size="2" face="Times New Roman">$309,205&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="327">
<p><font size="2" face="Times New Roman">Net sales-internal</font></p>
</td>
<td valign="top" width="77">
<p align="right"><font size="2" face="Times New Roman">273</font></p>
</td>
<td valign="top" width="70">
<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
<td valign="top" width="86">
<p align="right"><font size="2" face="Times New Roman">(273)</font></p>
</td>
<td valign="top" width="74">
<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="327">
<p><font size="2" face="Times New Roman">Operating income (loss)</font></p>
</td>
<td valign="top" width="77">
<p align="right"><font size="2" face="Times New Roman">8,022</font></p>
</td>
<td valign="top" width="70">
<p align="right"><font size="2" face="Times New Roman">963&nbsp;</font></p>
</td>
<td valign="top" width="86">
<p align="right"><font size="2" face="Times New Roman">5&nbsp;</font></p>
</td>
<td valign="top" width="74">
<p align="right"><font size="2" face="Times New Roman">8,990&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="327">
<p><font size="2" face="Times New Roman">Interest expense, net</font></p>
</td>
<td valign="top" width="77">
<p align="right"><font size="2" face="Times New Roman">6,407</font></p>
</td>
<td valign="top" width="70">
<p align="right"><font size="2" face="Times New Roman">2,788&nbsp;</font></p>
</td>
<td valign="top" width="86">
<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
<td valign="top" width="74">
<p align="right"><font size="2" face="Times New Roman">9,195&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="327">
<p><font size="2" face="Times New Roman">Income (loss) from continuing operations<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;before income taxes</font></p>
</td>
<td valign="bottom" width="77">

<p align="right"><font size="2" face="Times New Roman">1,615</font></p>
</td>
<td valign="bottom" width="70">

<p align="right"><font size="2" face="Times New Roman">(1,825)</font></p>
</td>
<td valign="bottom" width="86">

<p align="right"><font size="2" face="Times New Roman">5&nbsp;</font></p>
</td>
<td valign="bottom" width="74">

<p align="right"><font size="2" face="Times New Roman">(205)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="327">
<p><font size="2" face="Times New Roman">Loss from discontinued operations</font></p>
</td>
<td valign="top" width="77">
<p align="right"><font size="2" face="Times New Roman">--</font></p>
</td>
<td valign="top" width="70">
<p align="right"><font size="2" face="Times New Roman">(3,441)</font></p>
</td>
<td valign="top" width="86">
<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
<td valign="top" width="74">
<p align="right"><font size="2" face="Times New Roman">(3,441)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="327">
<p><font size="2" face="Times New Roman">Gain (loss) from disposals of discontinued<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;operations</font></p>
</td>
<td valign="bottom" width="77">

<p align="right"><font size="2" face="Times New Roman">--</font></p>
</td>
<td valign="bottom" width="70">

<p align="right"><font size="2" face="Times New Roman">(185)</font></p>
</td>
<td valign="bottom" width="86">

<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
<td valign="bottom" width="74">

<p align="right"><font size="2" face="Times New Roman">(185)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="327">
<p><font size="2" face="Times New Roman">Total assets</font></p>
</td>
<td valign="top" width="77">
<p align="right"><font size="2" face="Times New Roman">251,205</font></p>
</td>
<td valign="top" width="70">
<p align="right"><font size="2" face="Times New Roman">93,021</font></p>
</td>
<td valign="top" width="86">
<p align="right"><font size="2" face="Times New Roman">(71,074)</font></p>
</td>
<td valign="top" width="74">
<p align="right"><font size="2" face="Times New Roman">273,152&nbsp;</font></p>
</td>
</tr>
</table>

<p><font size="2" face="Times New Roman"></font></p>

<table border="0" cellspacing="0" cellpadding="0" width="525">
<tr>
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<p><b><font size="2" face="Times New Roman">Item 2.</font></b></p>
</td>
<td valign="top" width="430">
<p><b><font size="2" face="Times New Roman"><a name="Management's Discussion and Analysis">Management's Discussion and Analysis
</a> of Financial Condition and Results of
Operations</font></b></p>
</td>
</tr>
</table>



<p style="margin-left: 60"><b><i><font size="2" face="Times New Roman">Recent Developments</font></i></b></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">Change in Fiscal Year</font></p>

<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&rsquo;s fiscal year, from April 30 to December 31, effective December 31, 2001.&nbsp; The change to a
December 31 fiscal year will enable the Company to report results on a conventional calendar basis beginning in 2002.&nbsp; As a
result of the change in fiscal year, the Company filed a transition report for the eight month period ended December 31,
2001.</font></p>

<p style="margin-left: 60"><font size="2" color="black" face="Times New Roman">Discontinued Operations</font></p>

<p style="margin-left: 60"><font size="2" color="black" face="Times New Roman">During the quarter ended June 30, 2002 the Company&rsquo;s management and
board of directors approved a plan to dispose of certain identified assets, which primarily consist of underperforming markets of
the towing services segment.&nbsp; These assets are considered a &ldquo;disposal group&rdquo; in accordance with the guidance set
forth in SFAS No. 144, <i>Accounting for the Impairment or Disposal of Long Lived Assets.</i>&nbsp; Accordingly, these assets are
no longer being depreciated, and all assets and liabilities and results of operations associated with these assets have been
separately presented in the accompanying financial statements as discontinued operations.&nbsp; Prior period financial information
has been reclassified to conform with this presentation.&nbsp; The discussions and analyses contained herein are of continuing
operations, as restated, unless otherwise noted.</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">During the nine months ended September 30, 2002, the Company disposed of assets in
thirteen underperforming markets, as well as assets in certain other markets for proceeds of approximately $10,598,000</font><font
face="Arial">.&nbsp;</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">In October 2002, the Company made the decision to sell all remaining towing services
operations.&nbsp; The Company intends to complete this sale process by December 31, 2002, although there can be no assurance that
this timetable can be met.&nbsp; Between October 1, 2002 and November 12, 2002, the Company disposed of
nine towing services operations in seven towing
services markets, with proceeds of approximately $5.0 million.&nbsp; In accordance with SFAS No. 144, the Company will report the
entire towing services segment as discontinued operations as of the beginning of the fourth quarter of 2002.&nbsp; Accordingly,
depreciation of fixed assets will cease as of October&nbsp;1, 2002.&nbsp; As of such date, all assets, liabilities,</font></p>

<p align="center"><font size="2" face="Times New Roman">18</font></p>
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<p style="margin-left: 60"><font size="2" face="Times New Roman">and results of
operations will be separately presented as discontinued operations and all prior period financial information will be presented to
conform with this treatment.</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman"><i><u>Risks Involved with Wind Down of Towing Services Division.</u></i>&nbsp; The
Company is in the process of selling all of its remaining towing services businesses in a relatively short period of time.&nbsp;
The Company intends to have this process completed by December 31, 2002, although there can be no assurance that this timetable can
be met.&nbsp; The Company expects net cash proceeds from these sales to exceed their senior bank debt associated with sold
operations, as well as other associated liabilities.&nbsp; In addition, almost all of these businesses will continue to operate
under new ownership and in general their customary operating liabilities will be assumed by the new owners.&nbsp; The Company
nevertheless will be subject to some continuing liabilities with respect to the pre-sale operations of these businesses including,
for example, liabilities related to litigation, certain trade payables, parent guarantees, insurance, surety bonds, and real
estate.&nbsp; It is possible that the sale proceeds and the remaining assets of the towing services segment will not be sufficient
to satisfy such liabilities.&nbsp; The Company may also be subject to inefficiencies, management distractions, additional expenses
and uncertainties resulting from the rapid wind down of the infrastructure that was developed to provide administrative support to
over 100 towing service locations.&nbsp; Administrative services such as insurance and surety bond coverage must be maintained for
all remaining Company operations, but such services could become more expensive and difficult to maintain as the size of the
remaining operations decrease.&nbsp; Although the Company believes that it can manage the wind down effectively, there can be no
assurance that such will be the case.&nbsp; Even if the Company is able to manage the wind down effectively, it may nevertheless
have an adverse impact on the Company&rsquo;s operating results.&nbsp;</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman"> In addition, the Company has experienced difficulty in
maintaining its insurance and surety bond coverage primarily as a result of disruption in these markets resulting from the events
of September 11, 2001, general economic conditions and the Company&rsquo;s operating results.&nbsp; Prospective purchasers of
towing services businesses have also experienced these difficulties, which could have been an adverse impact on the ability of such
purchasers to effect business acquisitions at prices satisfactorily to the Company.</font></p>

<p style="margin-left: 60"><b><i><font size="2" face="Times New Roman">Results of Operations--Three Months Ended September 30, 2002 Compared to Three
Months Ended September 30, 2001</font></i></b></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">Net sales for the three months ended September 30, 2002, decreased
4.8% to $93.8 million
from $98.5 million for the comparable period in 2001. &nbsp; Net sales in the towing and recovery equipment segment decreased 5.7%
from $74.0 million to $69.8 million as demand for the Company&rsquo;s towing and recovery equipment continued to be negatively
impacted by the cost pressures facing its customers and the tightness of the current credit markets.&nbsp; Net sales in the towing
services segment decreased 2.0% from $24.5 million to $24.0 million.&nbsp; Revenue in the towing services segment was negatively
affected by the impact of the Company&rsquo;s ongoing efforts to sell or close underperforming markets.</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">Costs of operations for the three months ended September 30, 2002, decreased
3.3% to $81.8
from $84.7 million for the comparable period in 2001.&nbsp; Costs of operations of the towing and recovery equipment segment
decreased slightly as a percentage of net sales from 88.2% to 88.0%.&nbsp; In the towing services segment, costs of operations as a
percentage of net sales also increased from 78.9% to 85.0%.&nbsp; The increase reflects the impact of higher operating costs,
particularly insurance costs.</font></p>

<p align="center"><font size="2" face="Times New Roman">19</font></p>
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<p style="margin-left: 60"><font size="2" face="Times New Roman">Selling, general, and administrative expenses for the three months ended September 30,
2002, decreased to $10.5 million from $11.3 million for the three months ended September 30, 2001.</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">Net interest expense decreased $0.3 million to $2.1 million for the three months ended
September 30, 2002 from $2.4 million for the three months ended September 30,
2001 as a result of a decrease in debt levels.</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.&nbsp; Tax expenses for the quarter relate primarily to income taxes of foreign subsidiaries and certain state
taxes, and do not reflect any tax benefit for losses reported by U.S.
operations.&nbsp;
The effective rate of the provision (benefit) for income taxes were not meaningful for the three months ended September 30, 2002
and (57.6)% for the three months ended September 30, 2001.</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">For the three months ended September 30, 2002, the loss from discontinued operations was
$0.2 compared to $0.9 million for the prior year period.&nbsp; The decrease in losses is primarily the result of the
Company&rsquo;s efforts to dispose of the least profitable operations early in the disposal process.&nbsp; The loss from the sales
of discontinued operations for the three months ended September 30, 2002 and 2001 was $0.0 and $0.2 million,
respectively.&nbsp;</font></p>

<p style="margin-left: 60"><b><i><font size="2" face="Times New Roman">Results of Operations--Nine Months Ended September 30, 2002 Compared to Nine Months
Ended September 30, 2001</font></i></b></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">Net sales for the nine months ended September 30, 2002, decreased
7.3% to $286.6 million
from $309.2 million for the comparable period in 2001.&nbsp; Net sales in the towing and recovery equipment segment decreased 8.1%
from $234.4 million to $215.3 million as demand for the Company&rsquo;s towing and recovery equipment continued to be negatively
impacted by the cost pressures facing its customers and the tightness of the current credit markets.&nbsp; Net sales in the towing
services segment decreased 4.7% from $74.8 million to $71.3 million.&nbsp; Revenues in the towing services segment were negatively
affected by the impact of the Company&rsquo;s ongoing efforts to sell or close underperforming markets.</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">Costs of operations for the nine months ended September 30, 2002, decreased
6.5% to $247.5
from $264.9 million for the comparable period in 2001.&nbsp; Costs of operations of the towing and recovery equipment segment
decreased slightly as a percentage of net sales from 88.1% to 87.7%.&nbsp; In the towing services segment, costs of operations as a
percentage of net sales increased from 77.9% to 82.4%.&nbsp; The increase reflects the impact of higher operating costs,
particularly insurance costs.&nbsp;</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">Selling, general, and administrative expenses for the nine months ended September 30,
2002, decreased 9.7% to $31.9 million from $35.4 million for the comparable period of 2001.&nbsp; 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 $2.9 million to $6.3 million for the nine months ended
September 30, 2002 from $9.2 million for the nine months ended September 30, 2001.&nbsp; During the nine months ended September 30,
2002, the Company incurred lower interest expense as a result of refinancing its line of credit at more favorable rates in July
2001, as well as a decrease in debt levels.</font></p>

<p align="center"><font size="2" face="Times New Roman">20</font></p>
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  &nbsp;
</div>

<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.&nbsp; Tax expenses for the quarter relate primarily to income taxes of foreign subsidiaries and certain state
taxes, and do not reflect any tax benefit for losses reported by U.S.
operations.&nbsp;
The effective rate of the provision for (benefit from) income taxes was 84.8% for the nine months ended September 30, 2002 and not
meaningful for the nine months ended September 30, 2001.</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">For the nine months ended September 30, 2002, the loss from discontinued operations was
$1.6 million compared to $3.4 million for the prior year period.&nbsp; The decrease in losses is primarily the result of the
Company&rsquo;s efforts to dispose of the least profitable operations early in the disposal process.&nbsp; The loss from the sales
of discontinued operations for the nine months ended September 30, 2002 and 2001 was
$0.1 million and $0.2 million,
respectively.</font></p>

<p style="margin-left: 60"><b><i><font size="2" face="Times New Roman">Liquidity and Capital Resources</font></i></b></p>

<p style="margin-left: 60"><font size="2" color="black" face="Times New Roman">Cash provided by operating activities was $23.3 million for the nine months
ended September 30, 2002, which included tax refunds of approximately $9.0 million, compared to $27.4 million for the comparable
period of 2001.&nbsp; The cash provided by operating activities for the nine months ended September 30, 2002 was primarily the
result of the aforementioned tax refund received, as well as an increase in accounts payable and a decrease in inventory, partially
offset by an increase in accounts receivable.</font></p>

<p style="margin-left: 60"><font size="2" color="black" face="Times New Roman">Cash used in investing activities was $4.7 million for the nine months ended
September 30, 2002 compared to $1.8 million for the comparable period in 2001.&nbsp; 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" color="black" face="Times New Roman">Cash used in financing activities was $24.8 million for the nine months
ended September 30, 2002 and $25.0 million for the comparable period in the prior year.&nbsp; The cash was used primarily to reduce
borrowings under Company's credit facilities and other outstanding long-term debt and capital lease obligations.</font></p>

<p style="margin-left: 60"><b><font size="2" color="black" face="Times New Roman">2001 Credit Facility</font></b></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
&ldquo;Credit Facility&rdquo;) with a syndicate of lenders to replace the existing credit facility.&nbsp; As part of this
agreement, the previous credit facility was reduced with proceeds from the Credit Facility and amended to provide for a $14.0
million subordinated secured facility.&nbsp; The Credit Facility originally consisted of an aggregate $102.0 million revolving
credit facility and an $8.0 million term loan.&nbsp; The revolving credit facility provides for separate and distinct loan
commitment levels for the Company&rsquo;s towing and recovery equipment segment and RoadOne segment, respectively.&nbsp; At
September 30, 2002, $36.7 million and $19.8 million, respectively were outstanding under the towing and recovery equipment segment
and RoadOne portions of the revolving credit facility.&nbsp; In addition, $&shy;&shy;4.9 million was outstanding under the senior
term loan, and $14.4 million was outstanding under the subordinated secured facility.&nbsp;</font></p>

<p style="margin-left: 60"><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 as separately calculated for the towing and recovery equipment segment and the
RoadOne segment, respectively.&nbsp; Borrowings under the term loan are collateralized by the Company&rsquo;s property, plant, and
equipment.&nbsp; The Company is required to make monthly amortization payments on the term loan of</font></p>

<p align="center"><font size="2" face="Times New Roman">21</font></p>
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<p style="margin-left: 60"><font size="2" face="Times New Roman">&nbsp;$167,000.&nbsp; 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>

<p style="margin-left: 60"><font size="2" color="black" face="Times New Roman">The Credit</font> <font size="2">Facility
<font color="black">matures in July
2005 and is collateralized by substantially all the assets of the Company.&nbsp; The Credit Facility contains requirements relating
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).&nbsp; In addition, the Credit
Facility contains restrictions on capital expenditures, incurrence of indebtedness, mergers and acquisitions, distributions and
transfers and sales of assets.&nbsp; The Credit Facility also contains requirements related to weekly and monthly collateral
reporting.</font></font></p>

<p style="margin-left: 60"><font size="2" color="black" face="Times New Roman">The</font> <font size="2">subordinated
<font color="black">secured facility
is by its terms expressly subordinated only to the Credit Facility.&nbsp; The subordinated secured facility matures in July 2003
and bears interest at 6.0% over the prime rate.&nbsp; 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.&nbsp; The subordinated secured facility is
collateralized by certain specified assets of the Company and by a second priority lien and security interest in substantially all
other assets of the Company.&nbsp; 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.&nbsp; The
subordinated secured facility also contains provisions for the issuance of warrants for up to 0.5% of the outstanding shares of the
Company&rsquo;s common stock in July 2002 and up to an additional 1.5% in July 2003.&nbsp; The number of warrants which may be
issued would be reduced pro rata as the balance of the subordinated secured facility is reduced.&nbsp; On
July 23, 2002, the
Company issued 47,417 warrants for the purchase of common stock in conjunction with these related provisions.</font></font></p>

<p style="margin-left: 60"><font size="2" color="black" face="Times New Roman">The</font> <font size="2">subordinated
<font color="black">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></font></p>

<p style="margin-left: 60"><b><font size="2" face="Times New Roman">2002 Amendments</font></b></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">On February 28, 2002 the Company entered into a Forbearance Agreement and First Amendment
to Credit Agreement with the lenders under the Credit Facility, as amended by that certain Amendment to Forbearance Agreement dated
as of March 18, 2002 and that certain Second Amendment to the Forbearance Agreement dated as of March 29, 2002 (as so amended, the
&ldquo;Forbearance Agreement&rdquo;).&nbsp; As a result of a revised asset appraisal conducted by the senior lenders, the senior
lenders determined that the amounts outstanding under the Credit Facility should be lowered below the amount then outstanding under
the Credit Facility, causing the Company to be over-advanced on its line of credit which resulted in the occurrence of an event of
default under the Credit Facility and a corresponding event of default under the Junior Credit Facility.&nbsp; The Forbearance
Agreement and subsequent amendments waived the Company&rsquo;s overadvance under the Credit Facility and amended the terms of the
credit agreement to, among other things, (i) permanently reduce the commitment levels to $42.0 million for the towing and recovery
equipment segment and $36.0 million for the RoadOne segment portion of the revolving credit facility and $6,611,000 for the term
loan facility, (ii) eliminate the Company&rsquo;s ability to borrow funds at a LIBOR rate of interest, and (iii) increase the
interest rate to a floating rate of interest equal to the prime rate plus 2.75%.</font></p>

<p align="center"><font size="2" face="Times New Roman">22</font></p>
<hr size="3" color="#000080">
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  &nbsp;
</div>

<p style="margin-left: 60"><font size="2" face="Times New Roman">On April 15, 2002 the Company entered into the Second Amendment the Credit Facility,
pursuant to which, among other things: (i) the senior lenders waived the overadvance event of default and other events of default,
(ii) interest on advances will be charged at the <font color="black">prime rate (as defined) plus 2.75% on the revolving portion
and the term portion, subject to substantial upward adjustments in the interest rate on and after certain specified dates based on
the amounts outstanding if the scheduled loan reductions are not achieved under the revolving loan commitment relating to RoadOne
(escalating at generally quarterly intervals from prime plus 4.50% as of October 1, 2002 to prime plus 14.00% as of April 1, 2005)
and (iii) the revolving loan commitment amount relating to RoadOne is subject to mandatory reductions over time commencing August
12, 2002, which reductions will require a mandatory repayment of portions of outstanding loans at specified dates and the failure
to timely make such repayments shall result in an event of default under the bank credit agreements.&nbsp; The RoadOne revolving
commitment amount, which was set at $36.0 million through the April 15, 2002 amendment, is scheduled to be reduced as
follows:&nbsp; August 12, 2002 &ndash; to $34.0 million; October 12, 2002 &ndash; to $30.0 million; March 31, 2003 &ndash; to $27.0
million; thereafter &ndash; quarterly reductions of $3.0 million through June 30, 2005, the approximate stated loan termination
date.&nbsp;</font> On April 15, 2002 the Company also amended the Junior Credit Facility, pursuant to which, among other things,
(i) the junior lenders waived the events of default, and (<font color="black">ii) extended the time for payment of certain
scheduled amortization payments.&nbsp; At September 30, 2002, the balance of the RoadOne revolver was $19.8
million.</font></font></p>

<p style="margin-left: 60"><font size="2" color="black" face="Times New Roman">On April 15, 2002, the junior lender agent, the senior lender agent and the
Company entered into an Amended and Restated&nbsp; Intercreditor and Subordination Agreement, pursuant to which, among other
things, subject to certain terms and conditions, the junior lenders have agreed to defer the required payment of amortization
payments under the Junior Credit Facility until November 20, 2002, April 5, 2003 and May 20, 2003 and receive certain of its
interest as &ldquo;payment in kind&rdquo; to be added to the principal balance.&nbsp;</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">On September 13, 2002, the Company entered into the Third Amendment to Credit Agreement in
connection with its senior credit facility.&nbsp; Pursuant to the Third Amendment, the amount of the mandatory periodic reductions
in the RoadOne revolving loan commitment amount, as established in the April 15, 2002 Second Amendment to Credit Agreement, were
increased by amounts calculated based on updated asset appraisals completed in September 2002.&nbsp; Consequently, the Company will
need to repay outstanding loans and permanently reduce the RoadOne loan commitment under its senior credit facility over the life
of the loan and prior to the maturity date.&nbsp; Pursuant to the terms of the Second and Third Amendments, the failure by the
Company to repay outstanding loans and to reduce the RoadOne revolving loan commitment by the amounts and the times required
pursuant to these amendments will result in increased interest rates on the senior loans and/or the occurrence of an event of
default under the senior credit agreement.</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">In addition, pursuant to the Third Amendment, the amount of certain used inventory taken
in trade that may be considered as eligible inventory for collateral purposes was limited to $4.3 million (subject to downward
adjustments upon certain sales of sales of assets and stock by the Company and certain of its subsidiaries) through February 28,
2003 and reduced to $0 thereafter.&nbsp; Accordingly, after February 28, 2003 the Company will not be able to include used goods
taken in trade for purposes of determining borrowing availability under its existing senior loan facility and this may result in
additional mandatory pay downs of outstanding loans.</font></p>

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  &nbsp;
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<p style="margin-left: 60"><font size="2" face="Times New Roman">On November 14, 2002, the Company entered into the Fourth Amendment to the Credit
Facility, which granted waivers from the Senior Lenders of violations of certain financial covenants for the quarter ended
September 2002. There were no violations under the Junior Credit facility. The Amendment also reduced the level of certain
financial covenants for future periods, basing them strictly on the results of the towing and recovery equipment segment for those
periods. In addition, the amendment revised the Road One revolving commitment amount based on the plan to sell all remaining towing
service operations, reducing the commitment amount to $15.0 million at November 30, 2002, $12.0 million at December 31, 2002, $9.0
million at January 31,2003, $6.0 million at February 28, 2003 and reducing to zero as of March 31, 2003.&nbsp;&nbsp;The
entire Road One revolving line of credit has been classified as current
maturities to
reflect the commitment amounts set forth in the November 2002
amendments.&nbsp;&nbsp; At November 14, 2002, the
actual balance under the Road One Revolving line of credit was $15.7 million.</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">Meeting the new repayment schedule will require that the Company sell its towing services
businesses according to its contemplated schedule on acceptable terms.&nbsp; While the Company believes its timetable for sales is
achievable there can be no assurance that the schedule can be met.</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">The Company may continue to have difficulties in the future making the mandatory
repayments and complying with the covenants and other requirements of the credit agreement, and in such event would have to seek
additional waivers or amendments.&nbsp; Such waivers typically require payment of substantial additional fees, and there can be no
assurance that the lenders will agree to any future waivers or amendments.&nbsp; The Company&rsquo;s bank facilities are
collateralized by liens on all of the Company&rsquo;s assets.&nbsp; The liens give the lenders the right to foreclose on the assets
of the Company under certain defined events of default and such foreclosure could allow the lenders to gain control of the
operations of the Company.&nbsp;</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">In addition to the borrowings under the senior and junior credit facilities described
above, the Company had approximately $6.1 million of mortgage notes payable, equipment notes payable and other long-term
obligations at September 30, 2002.&nbsp; At September 30, 2002, the Company also had approximately $17.2 million in non-cancellable
operating lease obligations.&nbsp; Approximately, $11.4 million relates to truck and building leases in the towing services
segment.</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">Prior to making the determination to sell all of its remaining towing services operations,
the Company had focused on cost reduction and expense control, as well as other opportunities for improving operating cash flows to
improve liquidity. The Company has also disposed of certain underperforming RoadOne assets and operations in order to improve
liquidity and to reduce expenses and debt.&nbsp; As described in Note 3, in October 2002, the Company decided to sell all remaining
towing services operations.&nbsp; The Company received a tax refund of approximately $4.2 million during the quarter ended June 30,
2002, which also reduced the RoadOne revolver and cured the overadvance position that existed at that time. <b>&nbsp;</b> An
additional tax refund of approximately $4.6 million was received during the quarter ended September 30, 2002, with proceeds used to
further reduce the borrowings under the RoadOne revolver.&nbsp; All of these efforts have resulted in $18.3 million in reductions
to the RoadOne revolver since December 31, 2001.&nbsp; Additionally, the towing and recovery equipment revolver and the term loan
have been reduced $3.5 million and $2.3 million, respectively, since year end.&nbsp;&nbsp;</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">The Company believes that it will be able to maintain compliance with the financial
covenants established by the various amendments to the Credit Facility amendment, which will allow the Company to maintain
sufficient liquidity in 2002 to fund operations.&nbsp; Failure to achieve the Company&rsquo;s revenue and income projections, or to
sell towing services operations for the prices and on the timetable contemplated, could result in</font></p>

<p align="center"><font size="2" face="Times New Roman">24</font></p>
<hr size="3" color="#000080">
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  &nbsp;
</div>

<p style="margin-left: 60"><font size="2" face="Times New Roman">failure to comply with the
amended debt service requirements.&nbsp; Such non-compliance would result in an event of default, which if not waived by the
lending groups, would result in the acceleration of the amounts due under the Credit Facility as well as other remedies.&nbsp;
Under these circumstances the Company could be required to find alternative funding sources, such as sale of assets or other
financing sources.&nbsp; If the Company were unable to refinance the Credit Facility on acceptable terms or find an alternative
source of repayment for the Credit Facility, the Company&rsquo;s business and financial condition would be materially and adversely
affected.&nbsp; There is no assurance that the Company would be able to obtain any such refinancing or that it would be able to
sell assets on terms that are acceptable to the Company or at all.</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">Certain statements in this Form 10-Q, including but not limited to
&ldquo;Management&rsquo;s Discussion and Analysis of Financial Condition and Results of Operations,&rdquo; may be deemed to be
forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995.&nbsp; Such forward-looking
statements are made based on management&rsquo;s belief as well as assumptions made by, and information currently available to,
management pursuant to &ldquo;safe harbor&rdquo; provisions of the Private Securities Litigation Reform Act of 1995.&nbsp; The
Company&rsquo;s actual results may differ materially from the results anticipated in these forward-looking statements due to, among
other things, the risks referenced herein and the risk factors set forth under the heading &ldquo;Risk Factors&rdquo; in the
Company&rsquo;s Transition Report on Form 10-K, filed on April 22, 2002, and in particular, the risks associated with the wind down
of the towing services segment and the risks associated with the terms of the Company&rsquo;s substantial indebtedness.&nbsp; The
Company cautions that such factors are not exclusive.&nbsp; The Company does not undertake to update any forward-looking statement
that may be made from time to time by, or on behalf of, the Company.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="376">
<tr>
<td valign="top" width="60">
<p><b><font size="2" face="Times New Roman">Item 4.</font></b></p>
</td>
<td valign="top" width="312">
<p><b><font size="2" face="Times New Roman"><a name="Controls and Procedures">Controls and Procedures</a></font></b></p>
</td>
</tr>
</table>

<p style="margin-left: 60"><font size="2" face="Times New Roman">Within 90 days prior to the filing date of this report, the Company carried out an
evaluation, under the supervision and with the participation of the Company&rsquo;s management, including the Chief Executive
Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of the design and operation of its disclosure controls and
procedures as defined in Rules 13a-14(c) under the Securities Exchange Act of 1934.&nbsp; Based upon this evaluation, the
Company&rsquo;s CEO and CFO have concluded that the disclosure controls and procedures are effective to ensure that information
required to be disclosed by the Company in reports that it files or submits under the Exchange Act are recorded, processed,
summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms.</font></p>

<p style="margin-left: 60"><font size="2" face="Times New Roman">There were no significant changes in the Company&rsquo;s internal controls or in other
factors that could significantly affect internal controls subsequent to the date of this evaluation.</font>
</p>

<p align="center"><font size="2" face="Times New Roman">25</font></p>
<hr size="3" color="#000080">
<div STYLE="page-break-before: always">
  &nbsp;
</div>

<p><b><font size="2" face="Times New Roman">PART II.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OTHER INFORMATION</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="645">
<tr>
<td valign="top" width="71">
<p><b><font size="2" face="Times New Roman">Item 1.</font></b></p>
</td>
<td valign="top" width="570">
<p><a name="legalproceedins"><b><font size="2" face="Times New Roman">Legal Proceedings</font></b></a></p>
</td>
</tr>

<tr>
<td valign="top" width="71">&nbsp;</td>
<td valign="top" width="570"></td>
</tr>

<tr>
<td valign="top" width="71"></td>
<td valign="top" width="570">
<p><font size="2" face="Times New Roman">The Company is, from time to time, a party to litigation arising in the normal course of
its business.&nbsp; Management believes that the Company maintains adequate insurance coverage and as a result, none of these
actions, individually or in the aggregate, are expected to have a material adverse effect on the financial position or results of
operations of the Company.</font></p>
</td>
</tr>
</table>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="5" width="662">

<tr>
<td valign="top" width="71">
<p><b><font size="2" face="Times New Roman">Item 6.<a name="exhibitsandreportsonform8k"></a></font></b></p>
</td>
<td colspan="2" valign="top" width="587">
<h6><b><font size="2" face="Times New Roman">Exhibits and Reports on Form 8-K</font></b></h6>
</td>
</tr>

<tr>
<td valign="top" width="71">&nbsp;</td>
<td colspan="2" valign="top" width="587"></td>
</tr>

<tr>
<td valign="top" width="71"></td>
<td valign="top" width="36">
<p><font size="2" face="Times New Roman">(a)</font></p>
</td>
<td valign="top" width="549">
<p><font size="2" face="Times New Roman">Exhibits.&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="71">&nbsp;</td>
<td valign="top" width="36"></td>
<td valign="top" width="549"><font size="2" face="Times New Roman">10.1&nbsp;
  Fourth Amendment to the Credit Agreement by and among the Company and its<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; subsidiaries and The CIT
  Group/Business Credit, Inc. and Bank of America, N.A.<br>
  &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; dated November 14, 2002 (to
  be filed by amendment).<br>
  99.1&nbsp; Certification of Chief Executive Officer Pursuant to 18 U.S.C.
  Section 1350.<br>
  99.2&nbsp; Certification of Chief Financial Officer Pursuant to 18 U.S.C.
  Section 1350.</font></td>
</tr>

<tr>
<td valign="top" width="71"></td>
<td valign="top" width="36">
<p><font size="2" face="Times New Roman">(b)</font></p>
</td>
<td valign="top" width="549">
<p><font size="2" face="Times New Roman">Reports on Form 8-K &ndash; No reports on Form 8-K were filed by the Registrant during the
three months ended September 30, 2002.</font></p>
</td>
</tr>
</table>

<p><b><font size="2" face="Times New Roman"></font></b></p>

<p><b><font size="2" face="Times New Roman"></font></b></p>

<p align="center"><font size="2" face="Times New Roman">26</font></p>
<hr size="3" color="#000080">
<div STYLE="page-break-before: always">
  &nbsp;
</div>

<p align="center"><b><font size="2" face="Times New Roman">SIGNATURES</font></b></p>

<p style="margin-left: 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>

<p><font size="2" face="Times New Roman"></font></p>

<table border="0" cellspacing="0" cellpadding="0" width="519">
<tr>
<td valign="top" width="236"></td>
<td valign="top" width="279">
<p><font size="2" face="Times New Roman">MILLER INDUSTRIES, INC.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="236"></td>
<td valign="top" width="279"></td>
</tr>

<tr>
<td valign="top" width="236"></td>
<td valign="top" width="279"></td>
</tr>

<tr>
<td valign="top" width="236"></td>
<td valign="top" width="279">
<p><font size="2" face="Times New Roman">By:&nbsp; /s/ <b><i>J. Vincent Mish</i></b></font></p>
</td>
</tr>

<tr>
<td valign="top" width="236"></td>
<td valign="top" width="279">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J. Vincent Mish</font></p>
</td>
</tr>

<tr>
<td valign="top" width="236"></td>
<td valign="top" width="279">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive Vice President and</font></p>
</td>
</tr>

<tr>
<td valign="top" width="236"></td>
<td valign="top" width="279">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer</font></p>
</td>
</tr>
</table>

<p><font size="2" face="Times New Roman"></font></p>

<p><font size="2" face="Times New Roman">Date:&nbsp;&nbsp;&nbsp; November 15, 2002</font></p>

<p><font size="2" face="Times New Roman"></font></p>

<p><font size="2" face="Times New Roman"></font></p>
<hr size="3" color="#000080">
<div STYLE="page-break-before: always">
  &nbsp;
</div>

<p align="center"><u><font size="2" face="Times New Roman">CERTIFICATIONS</font></u></p>

<p>&nbsp;</p>

<p><font size="2" face="Times New Roman">I, Jeffrey I. Badgley, certify that:</font></p>

<p><font size="2" face="Times New Roman">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I have reviewed this quarterly report on Form 10-Q of Miller Industries,
Inc.;</font></p>

<p><font size="2" face="Times New Roman">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect to the period covered by this quarterly report;</font></p>

<p><font size="2" face="Times New Roman">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, the financial statements, and other financial information
included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in this quarterly report;</font></p>

<p><font size="2" face="Times New Roman">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant&rsquo;s other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the
registrant and we have:</font></p>

<blockquote>
  <blockquote>

<p><font size="2" face="Times New Roman">a) designed such disclosure controls and procedures to ensure that material information
relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this quarterly report is being prepared;</font></p>

<p><font size="2" face="Times New Roman">b) evaluated the effectiveness of the registrant&rsquo;s disclosure controls and
procedures as of a date within 90 days prior to the filing date of this quarterly report (the &ldquo;Evaluation Date&rdquo;);
and</font></p>

<p><font size="2" face="Times New Roman">c) presented in this quarterly report our conclusions about the effectiveness of the
disclosure controls and procedures based on our evaluation as of the Evaluation Date;</font></p>

  </blockquote>
</blockquote>

<p><font size="2" face="Times New Roman">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant&rsquo;s other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant&rsquo;s auditors and the audit committee of registrant&rsquo;s board of directors (or
persons performing the equivalent function):</font></p>

<blockquote>
  <blockquote>

<p><font size="2" face="Times New Roman">a) all significant deficiencies in the design or operation of internal controls which
could adversely affect the registrant&rsquo;s ability to record, process, summarize and report financial data and have identified
for the registrant&rsquo;s auditors any material weaknesses in internal controls; and</font></p>

<p><font size="2" face="Times New Roman">b) any fraud, whether or not material, that involves management or other employees who
have a significant role in the registrant&rsquo;s internal controls; and</font></p>

  </blockquote>
</blockquote>

<p><font size="2" face="Times New Roman">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant&rsquo;s other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly
affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to
significant deficiencies and material&nbsp; weaknesses.</font></p>

<p>&nbsp;</p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Date: November
15,
2002</font></p>

<p>&nbsp;</p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>/s/ Jeffrey I. Badgley&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
</u></font><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Jeffrey I. Badgley<br>
</font><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
President and Chief Executive Officer</font></p>

<font size="2" face="Times New Roman"><br clear="all" />
</font>

<hr size="3" color="#000080">
<div STYLE="page-break-before: always">
  &nbsp;
</div>

<p align="center"><u><font size="2" face="Times New Roman">CERTIFICATIONS</font></u></p>

<p>&nbsp;</p>

<p><font size="2" face="Times New Roman">I, J. Vincent Mish, certify that:</font></p>

<p><font size="2" face="Times New Roman">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I have reviewed this quarterly report on Form 10-Q of Miller Industries,
Inc.;</font></p>

<p><font size="2" face="Times New Roman">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, this quarterly report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect to the period covered by this quarterly report;</font></p>

<p><font size="2" face="Times New Roman">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based on my knowledge, the financial statements, and other financial information
included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in this quarterly report;</font></p>

<p><font size="2" face="Times New Roman">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant&rsquo;s other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the
registrant and we have:</font></p>

<blockquote>
  <blockquote>

<p><font size="2" face="Times New Roman">a) designed such disclosure controls and procedures to ensure that material information
relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this quarterly report is being prepared;</font></p>

<p><font size="2" face="Times New Roman">b) evaluated the effectiveness of the registrant&rsquo;s disclosure controls and
procedures as of a date within 90 days prior to the filing date of this quarterly report (the &ldquo;Evaluation Date&rdquo;);
and</font></p>

<p><font size="2" face="Times New Roman">c) presented in this quarterly report our conclusions about the effectiveness of the
disclosure controls and procedures based on our evaluation as of the Evaluation Date;</font></p>

  </blockquote>
</blockquote>

<p>&nbsp;</p>

<p><font size="2" face="Times New Roman">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant&rsquo;s other certifying officers and I have disclosed, based on our
most recent evaluation, to the registrant&rsquo;s auditors and the audit committee of registrant&rsquo;s board of directors (or
persons performing the equivalent function):</font></p>

<blockquote>
  <blockquote>

<p><font size="2" face="Times New Roman">a) all significant deficiencies in the design or operation of internal controls which
could adversely affect the registrant&rsquo;s ability to record, process, summarize and report financial data and have identified
for the registrant&rsquo;s auditors any material weaknesses in internal controls; and</font></p>

<p><font size="2" face="Times New Roman">b) any fraud, whether or not material, that involves management or other employees who
have a significant role in the registrant&rsquo;s internal controls; and</font></p>

  </blockquote>
</blockquote>

<p><font size="2" face="Times New Roman">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The registrant&rsquo;s other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly
affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to
significant deficiencies and material&nbsp; weaknesses.</font></p>

<p>&nbsp;</p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Date: November 15, 2002</font></p>

<p>&nbsp;</p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;
/s/ J. Vincent
Mish&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
</u></font><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
J. Vincent Mish<br>
</font><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Executive Vice President and Chief Financial Officer</font></p>

</body>
</html>


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>badgleycert.htm
<DESCRIPTION>CERTIFICATION
<TEXT>
<html>

<head>
<meta name="GENERATOR" content="Microsoft FrontPage 4.0">
<meta name="ProgId" content="FrontPage.Editor.Document">
<title>EXHIBIT 99</title>
</head>

<body>

<p align="right"><b>EXHIBIT 99.1</b></p>

<p align="center">&nbsp;</p>

<p align="center"><b><u><font size="2" face="Times New Roman">CERTIFICATION PURSUANT TO 18
U.S.C. SECTION 1350</font></u></b></p>

<p>&nbsp;</p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I,
Jeffrey I. Badgley, President and Chief Executive&nbsp; Officer of Miller Industries, Inc. (the &ldquo;Company&rdquo;), certify, pursuant to
18 U.S.C. &sect; 1350 as adopted by &sect; 906 of the Sarbanes-Oxley Act of 2002, that:</font></p>

<blockquote>

<p><font size="2" face="Times New Roman">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Quarterly Report on Form 10-Q of the Company
for the quarterly period ended September 30, 2002 (the &ldquo;Report&rdquo;) fully complies with the requirements of Section 13(a)
or 15(d) of the Securities Exchange Act of 1934; and</font></p>

<p><font size="2" face="Times New Roman">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the information contained in the Report fairly
presents, in all material respects, the financial condition and result of operations of the Company.</font></p>

</blockquote>

<p><font size="2" face="Times New Roman">Dated: November 15, 2002</font></p>

<table border="0" width="645" cellspacing="0" cellpadding="0">
  <tr>
    <td width="276"></td>
    <td width="353">

<p>&nbsp;</p>

<p><font size="2" face="Times New Roman"><u>&nbsp;&nbsp; /s/ Jeffrey I. Badgley&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
</u>Jeffrey I. Badgley<br>
President and Chief Executive Officer</font></p>

    </td>
  </tr>
</table>

<font size="2" face="Times New Roman"><br clear="all" />
</font>

</body>

</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>4
<FILENAME>mishcert.htm
<DESCRIPTION>CERTIFICATION
<TEXT>
<html>

<head>
<meta name="GENERATOR" content="Microsoft FrontPage 4.0">
<meta name="ProgId" content="FrontPage.Editor.Document">
<title>EXHIBIT 99</title>
</head>

<body>

<p align="right"><b>EXHIBIT 99.2</b></p>

<p align="center">&nbsp;</p>

<p align="center"><b><u><font size="2" face="Times New Roman">CERTIFICATION PURSUANT TO 18
U.S.C. SECTION 1350</font></u></b></p>

<p>&nbsp;</p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; I, J. Vincent Mish,
Executive Vice President and Chief Financial Officer of Miller Industries, Inc. (the &ldquo;Company&rdquo;), certify, pursuant to
18 U.S.C. &sect; 1350 as adopted by &sect; 906 of the Sarbanes-Oxley Act of 2002, that:</font></p>

<blockquote>

<p><font size="2" face="Times New Roman">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the Quarterly Report on Form 10-Q of the Company
for the quarterly period ended September 30, 2002 (the &ldquo;Report&rdquo;) fully complies with the requirements of Section 13(a)
or 15(d) of the Securities Exchange Act of 1934; and</font></p>

<p><font size="2" face="Times New Roman">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the information contained in the Report fairly
presents, in all material respects, the financial condition and result of operations of the Company.</font></p>

</blockquote>

<p><font size="2" face="Times New Roman">Dated: November 15, 2002</font></p>

<table border="0" width="645" cellspacing="0" cellpadding="0">
  <tr>
    <td width="276"></td>
    <td width="353">

<p>&nbsp;</p>

<p><font size="2" face="Times New Roman"><u>&nbsp;&nbsp; /s/ J. Vincent
Mish&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
</u>J. Vincent Mish<br>
Executive Vice President and<br>
Chief Financial Officer</font></p>

    </td>
  </tr>
</table>

<font size="2" face="Times New Roman"><br clear="all" />
</font>

</body>

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</TEXT>
</DOCUMENT>
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<SEQUENCE>6
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`
end

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