-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 LcG2CHHYbcGoqACdHmyUzmKYSCNCE42+j6osxID6m2tHua0fZ4FGfDmwz7KRK8ht
 AmZzwD8PlGhnu6fPz2yVIA==

<SEC-DOCUMENT>0001107049-03-000266.txt : 20030522
<SEC-HEADER>0001107049-03-000266.hdr.sgml : 20030522
<ACCEPTANCE-DATETIME>20030522172952
ACCESSION NUMBER:		0001107049-03-000266
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20030331
FILED AS OF DATE:		20030522

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:		03716904

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

	MAIL ADDRESS:	
		STREET 1:		8503 HILLTOP DR
		STREET 2:		STE 100
		CITY:			OOLTEWAH
		STATE:			TN
		ZIP:			37363
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>miller331_10q.htm
<DESCRIPTION>QUARTERLY REPORT
<TEXT>
<html>
<head>
<title>Miller Industries, Inc. Quarterly Report</title>
</head>
<body link="blue" vlink="purple">

<p align="left"><font size="2"><a href="#INDEX">Table of Contents</a></font></p>

<p align="center"><b><font size="4" face="Times New Roman">SECURITIES AND EXCHANGE COMMISSION<br />
WASHINGTON, DC 20549</font></b></p>

<p align="center"><b><font size="2" 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 March 31, 2003<br />
Commission File No. 0-24298</font></p>

<p align="center"><b><font size="5" face="Times New Roman">MILLER INDUSTRIES, INC.</font><font size="2" face="Times New Roman"><br>
</font></b><font size="2" face="Times New Roman">(Exact name of registrant as specified in its charter)</font></p>

<div align="center">
  <center>

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111" width="430">
<tr>
<td valign="top" width="209">
<p align="center"><b><font size="2" face="Times New Roman">Tennessee</font></b></p>
</td>
<td valign="top" width="221">
<p align="center"><b><font size="2" face="Times New Roman">62-1566286</font></b></p>
</td>
</tr>

<tr>
<td valign="top" width="209">
<p align="center"><font size="2" face="Times New Roman">(State or other jurisdiction of</font></p>
</td>
<td valign="top" width="221">
<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="209">
<p align="center"><font size="2" face="Times New Roman">incorporation or organization)</font></p>
</td>
<td valign="top" width="221"><font size="2">&nbsp;</font></td>
</tr>

</table>


  </center>
</div>


<p>&nbsp;</p>

<div align="center">
  <center>

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111" width="455">
<tr>
<td valign="top" width="237">
<p align="center"><b><font size="2" face="Times New Roman">8503 Hilltop Drive</font></b></p>
</td>
<td valign="top" width="218"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="237">
<p align="center"><b><font size="2" face="Times New Roman">Ooltewah, Tennessee</font></b></p>
</td>
<td valign="top" width="218">
<p align="center"><b><font size="2" face="Times New Roman">37363</font></b></p>
</td>
</tr>

<tr>
<td valign="top" width="237">
<p align="center"><font size="2" face="Times New Roman">(Address of principal executive offices)</font></p>
</td>
<td valign="top" width="218">
<p align="center"><font size="2" face="Times New Roman">(Zip Code)</font></p>
</td>
</tr>
</table>

  </center>
</div>

<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;</font></p>

<p><font size="2" face="Times New Roman">Indicate by check mark whether the registrant (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that
the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90
days.</font></p>

<p align="center"><font size="2" 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">The number of shares outstanding of the registrant's Common Stock, $.01 par value, as of
April&nbsp;30, 2003 was 9,341,436.</font></p>


<p align="center"><font size="2" face="Times New Roman">1<hr size="1" color="#000080" STYLE="page-break-after: always">

<p align="left"><a href="#INDEX">Table of Contents</a></p>

</font>

<p align="center"><b><font size="2" face="Times New Roman">
<img border="0" src="millerlogo.gif" width="156" height="54"></font></b></p>

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

<table border="0" cellspacing="0" cellpadding="0" width="680" bgcolor="#FFF3CE">

<tr>
<td valign="top" width="67">
<p><b><font size="2" face="Times New Roman"><a href="#PART I.">PART I.</a></font></b></p>
</td>
<td colspan="2" valign="top" width="542">
<p><b><font size="2" face="Times New Roman"><a href="#PART I.">FINANCIAL INFORMATION</a></font></b></p>
</td>
<td valign="top" width="71">
<p align="center"><u><font size="2" face="Times New Roman">Page Number</font></u></p>
</td>
</tr>

<tr>
<td valign="top" width="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="39" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="503" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="71" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="67"><font size="2">&nbsp;</font></td>
<td valign="top" width="39">
<p><font size="2" face="Times New Roman"><a href="#Financial Statements">Item 1.</a></font></p>
</td>
<td valign="top" width="503">
<p><font size="2" face="Times New Roman"><a href="#Financial Statements">Financial Statements
</a>(Unaudited)</font></p>
</td>
<td valign="top" width="71"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="39" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="503" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="71" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="67"><font size="2">&nbsp;</font></td>
<td valign="top" width="39"><font size="2">&nbsp;</font></td>
<td valign="top" width="503">
<p><font size="2" face="Times New Roman"><font color="black">
<a href="#BALANCE SHEETS">Condensed Consolidated
Balance Sheets</a></font> - March 31, 2003 and<br>
December 31,
2002.</font></p>
</td>
<td valign="top" width="71">

<p align="center"><font size="2" face="Times New Roman"><br>
3</font></p>
</td>
</tr>

<tr>
<td valign="top" width="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="39" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="503" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="71" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="67"><font size="2">&nbsp;</font></td>
<td valign="top" width="39"><font size="2">&nbsp;</font></td>
<td valign="top" width="503">
<p><font color="black" size="2" face="Times New Roman">
<a href="#STATEMENTS OF OPERATIONS">Condensed Consolidated
Statements of Operations</a></font></p>
</td>
<td valign="top" width="71"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="39" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="503" bgcolor="#FFFFFF">
<p><font size="2" face="Times New Roman">for the Three Months Ended March 31,
2003 and 2002</font></p>
</td>
<td valign="top" width="71" bgcolor="#FFFFFF">
<p align="center"><font size="2" face="Times New Roman">4</font></p>
</td>
</tr>

<tr>
<td valign="top" width="67"><font size="2">&nbsp;</font></td>
<td valign="top" width="39"><font size="2">&nbsp;</font></td>
<td valign="top" width="503"><font size="2">&nbsp;</font></td>
<td valign="top" width="71"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="39" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="503" bgcolor="#FFFFFF">
<p><font color="black" size="2" face="Times New Roman"><a href="#CASH FLOWS">Condensed Consolidated
Statements of Cash Flows</a></font></p>
</td>
<td valign="top" width="71" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="67"><font size="2">&nbsp;</font></td>
<td valign="top" width="39"><font size="2">&nbsp;</font></td>
<td valign="top" width="503">
<p><font size="2" face="Times New Roman">for the Three Months Ended March 31,
2003 and 2002</font></p>
</td>
<td valign="top" width="71">
<p align="center"><font size="2" face="Times New Roman">5</font></p>
</td>
</tr>

<tr>
<td valign="top" width="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="39" bgcolor="#FFFFFF"><font size="2">&nbsp; </font></td>
<td valign="top" width="503" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="71" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="67"><font size="2">&nbsp;</font></td>
<td valign="top" width="39"><font size="2">&nbsp;</font></td>
<td valign="top" width="503">
<p><font size="2" face="Times New Roman"><font color="black"><a href="#NOTES">Notes</a> to Condensed
Consolidated Financial</font> Statements</font></p>
</td>
<td valign="top" width="71">
<p align="center"><font size="2" face="Times New Roman">6</font></p>
</td>
</tr>

<tr>
<td valign="top" width="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="39" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="503" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="71" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="67"><font size="2">&nbsp;</font></td>
<td valign="top" width="39">
<p><font size="2" face="Times New Roman"><a href="#Managements">Item 2.</a></font></p>
</td>
<td valign="top" width="503">
<p><font size="2" face="Times New Roman"><font color="black">
<a href="#Managements">Management's
Discussion and Analysis</a> of Financial</font> Condition and<br>
Results of
Operations</font></p>
</td>
<td valign="top" width="71">

<p align="center"><font size="2" face="Times New Roman"><br>
17</font></p>
</td>
</tr>

<tr>
<td valign="top" width="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="39" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="503" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="71" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="67"><font size="2">&nbsp;</font></td>
<td valign="top" width="39">
<p><font size="2" face="Times New Roman"><a href="#Controls">Item 4.</a></font></p>
</td>
<td valign="top" width="503">
<p><font size="2" face="Times New Roman"><a href="#Controls">Controls and
Procedures</a></font></p>
</td>
<td valign="top" width="71">
<p align="center"><font size="2" face="Times New Roman">24</font></p>
</td>
</tr>

<tr>
<td valign="top" width="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="39" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="503" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="71" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="67">
<p><b><font size="2" face="Times New Roman"><a href="#OTHER">PART II.</a></font></b></p>
</td>
<td colspan="2" valign="top" width="542">
<p><b><font size="2" face="Times New Roman"><a href="#OTHER">OTHER INFORMATION</a></font></b></p>
</td>
<td valign="top" width="71"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="39" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="503" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="71" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="67"><font size="2">&nbsp;</font></td>
<td valign="top" width="39">
<p><font size="2" face="Times New Roman"><a href="#Legal">Item 1.</a></font></p>
</td>
<td valign="top" width="503">
<p><font color="black" size="2" face="Times New Roman"><a href="#Legal">Legal
Proceedings</a></font></p>
</td>
<td valign="top" width="71">
<p align="center"><font size="2" face="Times New Roman">25</font></p>
</td>
</tr>

<tr>
<td valign="top" width="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="39" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="503" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="71" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="67"><font size="2">&nbsp;</font></td>
<td valign="top" width="39">
<p><font size="2" face="Times New Roman"><a href="#Exhibits">Item 6.</a></font></p>
</td>
<td valign="top" width="503">
<p><font color="black" size="2" face="Times New Roman">
<a href="#Exhibits">Exhibits and Reports on Form 8-K</a></font></p>
</td>
<td valign="top" width="71">
<p align="center"><font size="2" face="Times New Roman">25</font></p>
</td>
</tr>

<tr>
<td valign="top" width="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="39" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="503" bgcolor="#FFFFFF"></td>
<td valign="top" width="71" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="609" colspan="3">
<p><b><font size="2" face="Times New Roman"><a href="#SIGNATURES">SIGNATURES</a></font></b></p>
</td>
<td valign="top" width="71">
<p align="center"><font size="2" face="Times New Roman">26</font></p>
</td>
</tr>

<tr>
<td valign="top" width="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="39" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="503" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="71" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="67"><font size="2">&nbsp;</font></td>
<td valign="top" width="39"><font size="2">&nbsp;</font></td>
<td valign="top" width="503">
<p><font size="2" face="Times New Roman"><a href="#Badgley">Certification</a>:&nbsp; Jeffrey I. Badgley</font></p>
</td>
<td valign="top" width="71">
<p align="center"><font size="2" face="Times New Roman">27</font></p>
</td>
</tr>

<tr>
<td valign="top" width="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="39" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="503" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="71" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="67"><font size="2">&nbsp;</font></td>
<td valign="top" width="39"><font size="2">&nbsp;</font></td>
<td valign="top" width="503">
<p><font size="2" face="Times New Roman"><a href="#Mish">Certification</a>:&nbsp; J. Vincent Mish</font></p>
</td>
<td valign="top" width="71">
<p align="center"><font size="2" face="Times New Roman">28</font></p>
</td>
</tr>
</table>


<p><font size="2">&nbsp;</font></p>


<p><font size="2">&nbsp;</font></p>

<p align="center"><font face="Times New Roman" size="2">&nbsp;<hr size="1" color="#000080" STYLE="page-break-after: always">

<p align="left"><a href="#INDEX">Table of Contents</a></p>

</font>

<p><b><font size="2" face="Times New Roman"><a name="PART I.">PART I.&nbsp;</a>&nbsp; FINANCIAL INFORMATION</font></b></p>

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

<p align="center"><b><font size="2" face="Times New Roman">MILLER INDUSTRIES, INC. AND SUBSIDIARIES</font></b></p>

<h1 align="center"><b>
<font size="2" face="Times
New Roman">CONSOLIDATED <a name="BALANCE SHEETS">BALANCE SHEETS</a></font></b><font size="2"><br />
</font><b><font size="2" face="Times New Roman">(In thousands, except share data)</font></b></h1>

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

<div align="center">
  <center>

<table border="0" cellspacing="0" cellpadding="0" width="683" style="border-collapse: collapse" bordercolor="#111111" bgcolor="#FFF3CE">
<tr>
<td valign="top" width="479"><font size="2">&nbsp; </font></td>
<td valign="top" width="17"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><b><font size="2" face="Times New Roman">March 31,<br>
2003</font></b></p>

</td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><b><font size="2" face="Times New Roman">December 31,<br />
 2002</font></b></p>
</td>
</tr>

<tr>
<td valign="top" width="479" bgcolor="#FFFFFF">
<p><b><font size="2" face="Times New Roman">ASSETS</font></b></p>
</td>
<td valign="top" width="17" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFFFFF">
<font size="2">&nbsp;</font></td>
<td valign="top" width="21" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFFFFF">
<font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="479"><font size="2">&nbsp;</font></td>
<td valign="top" width="17"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2"><font size="2">&nbsp;</font></td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="479" bgcolor="#FFFFFF">
<p><b><font size="2" face="Times New Roman">CURRENT ASSETS:</font></b></p>
</td>
<td valign="top" width="17" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="21" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="479">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and
temporary investments</font></p>
</td>
<td valign="top" width="17"><font size="2">&nbsp;</font></td>
<td valign="top" width="14">
<p align="left"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="53">
<p align="right"><font size="2" face="Times New Roman">4,133&nbsp;</font></td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" width="26">
<p align="left"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="73">
<p align="right"><font size="2" face="Times New Roman">2,097&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="479" bgcolor="#FFFFFF">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts
receivable, net</font></p>
</td>
<td valign="top" width="17" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">39,144&nbsp;</font></p>
</td>
<td valign="top" width="21" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">46,616&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="479">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories,
net</font></p>
</td>
<td valign="top" width="17"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2">
<p align="right"><font size="2" face="Times New Roman">32,958&nbsp;</font></p>
</td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2">
<p align="right"><font size="2" face="Times New Roman">27,815&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="479" bgcolor="#FFFFFF">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses
and other</font></p>
</td>
<td valign="top" width="17" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">2,493&nbsp;</font></p>
</td>
<td valign="top" width="21" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">748&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="479">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current assets of
discontinued operations held for sale</font></p>
</td>
<td valign="top" width="17"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">29,958&nbsp;</font></p>
</td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">32,366&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="479" bgcolor="#FFFFFF">
<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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Total current assets</font></p>
</td>
<td valign="top" width="17" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">108,686&nbsp;</font></p>
</td>
<td valign="top" width="21" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">109,642&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="479">
<p><b><font size="2" face="Times New Roman">PROPERTY, PLANT, AND EQUIPMENT,</font></b><font size="2"> net</font></p>
</td>
<td valign="top" width="17"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2">
<p align="right"><font size="2" face="Times New Roman">22,424&nbsp;</font></p>
</td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2">
<p align="right"><font size="2" face="Times New Roman">23,121&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="479" bgcolor="#FFFFFF">
<p><b><font size="2" face="Times New Roman">GOODWILL,</font></b><font size="2"> net</font></p>
</td>
<td valign="top" width="17" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">11,619&nbsp;</font></p>
</td>
<td valign="top" width="21" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">11,619&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="479">
<p><b><font size="2" face="Times New Roman">OTHER ASSETS</font></b><font size="2">, net</font></p>
</td>
<td valign="top" width="17"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2">
<p align="right"><font size="2" face="Times New Roman">2,167&nbsp;</font></p>
</td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2">
<p align="right"><font size="2" face="Times New Roman">2,378&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="479" bgcolor="#FFFFFF">
<p><b><font size="2" face="Times New Roman">NONCURRENT ASSETS OF DISCONTINUED OPERATIONS Held for sale</font></b></p>
</td>
<td valign="top" width="17" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">13,821&nbsp;</font></p>
</td>
<td valign="top" width="21" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">15,417&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="479"><font size="2">&nbsp;</font></td>
<td valign="top" width="17"><font size="2">&nbsp;</font></td>
<td valign="top" width="14" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="left"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="53" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">158,717&nbsp;</font></td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" width="26" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="left"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="73" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">162,177&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="479" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="17" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="21" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="479">
<p><b><font size="2" face="Times New Roman">LIABILITIES AND SHAREHOLDERS&rsquo; EQUITY</font></b></p>
</td>
<td valign="top" width="17"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2"><font size="2">&nbsp;</font></td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="479" bgcolor="#FFFFFF">
<p><b><font size="2" face="Times New Roman">CURRENT LIABILITIES:</font></b></p>
</td>
<td valign="top" width="17" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="21" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="479">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current portion
of long-term obligations</font></p>
</td>
<td valign="top" width="17"><font size="2">&nbsp;</font></td>
<td valign="top" width="14">
<p align="left"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="53">
<p align="right"><font size="2" face="Times New Roman">37,727&nbsp;</font></td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" width="26">
<p align="left"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="73">
<p align="right"><font size="2" face="Times New Roman">35,244&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="479" bgcolor="#FFFFFF">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts
payable</font></p>
</td>
<td valign="top" width="17" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">26,501&nbsp;</font></p>
</td>
<td valign="top" width="21" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">25,213&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="479">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued
liabilities and other</font></p>
</td>
<td valign="top" width="17"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2">
<p align="right"><font size="2" face="Times New Roman">6,118&nbsp;</font></p>
</td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2">
<p align="right"><font size="2" face="Times New Roman">6,147&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="479" bgcolor="#FFFFFF">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Current
liabilities of discontinued operations held for sale</font></p>
</td>
<td valign="top" width="17" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">46,060</font></p>
</td>
<td valign="top" width="21" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">53,212&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="479"><font size="2">&nbsp;</font></td>
<td valign="top" width="17"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2" style="border-top-style: solid; border-top-width: 1"><font size="2">&nbsp;</font></td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2" style="border-top-style: solid; border-top-width: 1"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="479" bgcolor="#FFFFFF">
<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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Total current liabilities</font></p>
</td>
<td valign="top" width="17" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">116,406&nbsp;</font></p>
</td>
<td valign="top" width="21" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">119,816&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="479"><font size="2">&nbsp;</font></td>
<td valign="top" width="17"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2" style="border-top-style: solid; border-top-width: 1"><font size="2">&nbsp;</font></td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2" style="border-top-style: solid; border-top-width: 1"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="479" bgcolor="#FFFFFF">
<p><b><font size="2" face="Times New Roman">LONG-TERM OBLIGATIONS</font></b><font size="2">, less current portion</font></p>
</td>
<td valign="top" width="17" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">864&nbsp;</font></p>
</td>
<td valign="top" width="21" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">1,214&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="479">
<p><b><font size="2" face="Times New Roman">NONCURRENT LIABILITIES OF DISCONTINUED<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OPERATIONS HELD FOR SALE</font></b></p>
</td>
<td valign="bottom" width="17"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="67" colspan="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">1,372&nbsp;</font></p>
</td>
<td valign="bottom" width="21"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="99" colspan="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">1,450&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="479" bgcolor="#FFFFFF">
<p><b><font size="2" face="Times New Roman">COMMITMENTS AND CONTINGENCIES</font></b><font size="2"> (Notes 8, 9 and 11)</font></p>
</td>
<td valign="top" width="17" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="21" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="479">
<p><b><font size="2" face="Times New Roman">SHAREHOLDERS&rsquo; EQUITY</font></b><font size="2">:</font></p>
</td>
<td valign="top" width="17"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2"><font size="2">&nbsp;</font></td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="479" bgcolor="#FFFFFF">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Preferred stock,
$.01 par value; 5,000,000 shares authorized, none issued or<br />
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
outstanding</font></p>
</td>
<td valign="top" width="17" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman"><br />
 0&nbsp;</font></p>
</td>
<td valign="top" width="21" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman"><br />
 0&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="479">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common stock,
$.01 par value; 100,000,000 shares authorized,<br />
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9,341,436 shares issued and outstanding at March 31, 2003
and<br />
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2002, respectively</font></p>
</td>
<td valign="top" width="17"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2">
<p align="right"><font size="2" face="Times New Roman"><br />
<br />
 93&nbsp;</font></p>
</td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2">
<p align="right"><font size="2" face="Times New Roman"><br />
<br />
 93&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="479" bgcolor="#FFFFFF">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Additional
paid-in capital</font></p>
</td>
<td valign="top" width="17" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">145,088&nbsp;</font></p>
</td>
<td valign="top" width="21" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">145,088&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="479">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated
deficit</font></p>
</td>
<td valign="top" width="17"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2">
<p align="right"><font size="2" face="Times New Roman">(104,349)</font></p>
</td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2">
<p align="right"><font size="2" face="Times New Roman">(103,790)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="479" bgcolor="#FFFFFF">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other
comprehensive loss</font></p>
</td>
<td valign="top" width="17" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">(757)</font></p>
</td>
<td valign="top" width="21" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">(1,694)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="479">
<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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Total shareholders&rsquo; equity</font></p>
</td>
<td valign="top" width="17"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" colspan="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">40,075</font></p>
</td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" width="99" colspan="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">39,697&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="479" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="17" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="14" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" bgcolor="#FFFFFF">
<p align="left"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="53" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">158,717&nbsp;</font></td>
<td valign="top" width="21" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="26" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" bgcolor="#FFFFFF">
<p align="left"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="73" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">162,177&nbsp;</font></td>
</tr>
</table>

</center>
</div>

<p align="center"><font size="2" face="Times New Roman">The accompanying notes are an integral part of these
condensed consolidated balance
sheets.</font></p>

<p align="center"><font face="Times New Roman" size="2">3<hr size="1" color="#000080" STYLE="page-break-after: always">

<p align="left"><font size="1"><a href="#INDEX">Table of Contents</a></font></p>

</font>

<p align="center"><b><font size="2" face="Times New Roman">MILLER INDUSTRIES, INC. AND SUBSIDIARIES<br>
CONSOLIDATED <a name="STATEMENTS OF OPERATIONS">STATEMENTS OF</a></font><a name="STATEMENTS OF OPERATIONS"><font size="2">
</font> <font size="2" face="Times New
Roman">OPERATIONS</font></a></b></p>

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

<div align="center">
  <center>

<table border="0" cellspacing="0" cellpadding="0" width="680" style="border-collapse: collapse" bordercolor="#111111">
<tr>
<td valign="top" width="502" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td colspan="5" valign="top" width="178" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="center"><b><font size="2" face="Times New Roman">Three Months Ended<br />
 March 31,</font></b></p>
</td>
</tr>

<tr>
<td valign="top" width="502"><font size="2">&nbsp;</font></td>
<td valign="top" width="75" colspan="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><b><font size="2" face="Times New Roman">2003</font></b></p>
</td>
<td valign="top" width="10" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="93" colspan="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">2002</font></p>
</td>
</tr>

<tr>
<td valign="top" width="502" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="75" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<font size="2">&nbsp;</font></td>
<td valign="top" width="10" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="502">
<p><b><font size="2" face="Times New Roman">NET SALES</font></b></p>
</td>
<td valign="top" align="right" width="11">
<p align="left"><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top" align="right" width="64">
<b><font size="2" face="Times New Roman">40,742&nbsp;</font></b></td>
<td valign="top" align="right" width="10">
<p align="right">&nbsp;</p>
</td>
<td valign="top" align="right" width="16">
<p align="left"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" align="right" width="77">
<font size="2" face="Times New Roman">47,805&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="502" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="75" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="10" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="502">
<p><b><font size="2" face="Times New Roman">COSTS AND EXPENSES:</font></b></p>
</td>
<td valign="top" colspan="2" width="75"><font size="2">&nbsp;</font></td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93"><font size="2">&nbsp;</font></td>
</tr>

<tr height="11">
<td valign="top" width="502" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">Costs of operations</font></p>
</td>
<td valign="top" colspan="2" width="75" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman">34,815&nbsp;</font></b></p>
</td>
<td valign="top" width="10" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">40,911&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="502">
<p><b><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b><font size="2">
</font> <font size="2" face="Times New
Roman">Selling, general and administrative expenses</font></p>
</td>
<td valign="top" colspan="2" width="75">
<p align="right"><b><font size="2" face="Times New Roman">3,882&nbsp;</font></b></p>
</td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93">
<p align="right"><font size="2" face="Times New Roman">4,206&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="502" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b><font size="2">
</font> <font size="2" face="Times New
Roman">Interest expense, net</font></p>
</td>
<td valign="top" colspan="2" width="75" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman">754&nbsp;</font></b></p>
</td>
<td valign="top" width="10" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">700&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="502">
<p><b><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b><font size="2">
</font> <font size="2" face="Times New
Roman">Total costs and expenses</font></p>
</td>
<td valign="top" colspan="2" width="75" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font face="Times New Roman" size="2">39,451&nbsp;</font></b></p>
</td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">45,817&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="502" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="75" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<font size="2">&nbsp;</font></td>
<td valign="top" width="10" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="502">
<p><b><font size="2" face="Times New Roman">INCOME FROM CONTINUING OPERATIONS BEFORE
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INCOME TAXES</font></b></p>
</td>
<td valign="top" colspan="2" width="75">

<p align="right"><b><font size="2" face="Times New Roman"><br>
1,291&nbsp;</font></b></p>
</td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93">
<p align="right"><font size="2" face="Times New Roman"><br>
 1,988&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="502" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">INCOME TAX PROVISION (BENEFIT)</font></b></p>
</td>
<td valign="top" colspan="2" width="75" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="right"><b><font face="Times New Roman" size="2">333&nbsp;</font></b></p>
</td>
<td valign="top" width="10" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">764&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="502">
<p><b><font size="2" face="Times New Roman">INCOME (LOSS) FROM CONTINUING OPERATIONS</font></b></p>
</td>
<td valign="top" colspan="2" width="75" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font face="Times New Roman" size="2">958&nbsp;</font></b></p>
</td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">1,224&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="502" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="75" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<font size="2">&nbsp;</font></td>
<td valign="top" width="10" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="502">
<p><b><font size="2" face="Times New Roman">DISCONTINUED OPERATIONS:</font></b></p>
</td>
<td valign="top" colspan="2" width="75"><font size="2">&nbsp;</font></td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93"><font size="2">&nbsp;</font></td>
</tr>

<tr height="15">
<td valign="top" width="502" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Loss) from discontinued operations,
before taxes</font></p>
</td>
<td valign="top" colspan="2" width="75" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman">(1,942)</font></b></p>
</td>
<td valign="top" width="10" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">(1,959)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="502">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax provision (benefit)</font></p>
</td>
<td valign="top" colspan="2" width="75" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font face="Times New Roman" size="2">(425)</font></b></p>
</td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">(500)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="502" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Loss) from discontinued
operations</font></p>
</td>
<td valign="top" colspan="2" width="75" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman">(1,517)</font></b></p>
</td>
<td valign="top" width="10" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">(1,459)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="502"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="75"><font size="2">&nbsp;</font></td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="502" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">NET LOSS BEFORE CUMULATIVE EFFECT OF CHANGE IN<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ACCOUNTING
PRINCIPLE:</font></b></p>
</td>
<td valign="top" colspan="2" width="75" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman"><br />
 (559)</font></b></p>
</td>
<td valign="top" width="10" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman"><br />
 (235)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="502">
<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;Cumulative effect of change in accounting principle</font></p>
</td>
<td valign="top" colspan="2" width="75" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">-&nbsp;</font></b></p>
</td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">(21,812)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="502" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">NET LOSS</font></b></p>
</td>
<td valign="top" width="11" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="left"><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top" width="64" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman">(559)</font></b></td>
<td valign="top" width="10" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="16" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="left"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="77" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">(22,047)</font></td>
</tr>

<tr>
<td valign="top" width="502"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="75"><font size="2">&nbsp;</font></td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="502" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">BASIC INCOME (LOSS) PER COMMON SHARE:</font></b></p>
</td>
<td valign="top" colspan="2" width="75" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="10" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="502">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from continuing
operations</font></p>
</td>
<td valign="top" width="11">
<p align="left"><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top" width="64">
<p align="right"><b><font size="2" face="Times New Roman">0.10&nbsp;</font></b></td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" width="16">
<p align="left"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="77">
<p align="right"><font size="2" face="Times New Roman">0.12&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="502" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss from discontinued
operations</font></p>
</td>
<td valign="top" colspan="2" width="75" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman">(0.16)</font></b></p>
</td>
<td valign="top" width="10" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">(0.16)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="502">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumulative effect of change in accounting
principle</font></p>
</td>
<td valign="top" colspan="2" width="75" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">-&nbsp;</font></b></p>
</td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">(2.34)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="502" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic income (loss) per common
share</font></p>
</td>
<td valign="top" width="11" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" bgcolor="#FFF3CE">
<p align="left"><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top" width="64" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman">(0.06)</font></b></td>
<td valign="top" width="10" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="16" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" bgcolor="#FFF3CE">
<font size="2">$</font></td>
<td valign="top" width="77" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">(2.36)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="502"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="75"><font size="2">&nbsp;</font></td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="502" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">DILUTED INCOME (LOSS) PER COMMON SHARE:</font></b></p>
</td>
<td valign="top" colspan="2" width="75" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="10" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="502">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income from continuing
operations</font></p>
</td>
<td valign="top" width="11">
<p align="left"><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top" width="64">
<p align="right"><b><font size="2" face="Times New Roman">0.10&nbsp;</font></b></td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" width="16">
<p align="left"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="77">
<p align="right"><font size="2" face="Times New Roman">0.12&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="502" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss from discontinued
operations</font></p>
</td>
<td valign="top" colspan="2" width="75" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman">(0.16)</font></b></p>
</td>
<td valign="top" width="10" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">(0.16)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="502">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cumulative effect of change in accounting
principle</font></p>
</td>
<td valign="top" colspan="2" width="75" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">-&nbsp;</font></b></p>
</td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">(2.34)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="502" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted income (loss) per common
share</font></p>
</td>
<td valign="top" width="11" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" bgcolor="#FFF3CE">
<p align="left"><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top" width="64" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman">(0.06)</font></b></td>
<td valign="top" width="10" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="16" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" bgcolor="#FFF3CE">
<p align="left"><font size="2">$</font></p>
</td>
<td valign="top" width="77" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">(2.36)</font></td>
</tr>

<tr>
<td valign="top" width="502"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="75"><font size="2">&nbsp;</font></td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="502" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">WEIGHTED AVERAGE SHARES OUTSTANDING:</font></b></p>
</td>
<td valign="top" colspan="2" width="75" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="10" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="502">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic</font></p>
</td>
<td valign="top" colspan="2" width="75" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">9,341&nbsp;</font></b></p>
</td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">9,341&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="502" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted</font></p>
</td>
<td valign="top" colspan="2" width="75" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman">9,349&nbsp;</font></b></p>
</td>
<td valign="top" width="10" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="93" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">9,341&nbsp;</font></p>
</td>
</tr>

</table>

</center>
</div>

<p><font size="2" face="Times New
Roman">&nbsp;The accompanying notes are an integral part of these
condensed consolidated
statements.&nbsp;</font></p>

<p align="center"><font face="Times New Roman" size="2">4<hr size="1" color="#000080" STYLE="page-break-after: always">

<p align="left"><font size="1"><a href="#INDEX">Table of Contents</a></font></p>

</font>

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

<div align="center">
  <center>


<table border="0" cellspacing="0" cellpadding="0" width="673" style="border-collapse: collapse" bordercolor="#111111">
<tr>
<td valign="top" width="518" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td colspan="3" valign="top" width="143" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="center"><b><font size="2" face="Times New Roman">Three Months Ended<br />
 March 31,</font></b></p>
</td>
</tr>

<tr>
<td valign="top" width="518"><font size="2">&nbsp;</font></td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" style="border-top-style: solid; border-top-width: 1; border-bottom-style:solid; border-bottom-width:1">
<p align="center"><b><font size="2" face="Times New Roman">2003</font></b></p>
</td>
<td valign="top" width="29" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="54" style="border-top-style: solid; border-top-width: 1; border-bottom-style:solid; border-bottom-width:1">
<p align="center"><font size="2" face="Times New Roman">2002</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">OPERATING ACTIVITIES:</font></b></p>
</td>
<td valign="top" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" bgcolor="#FFF3CE" style="border-top-style: solid; border-top-width: 1"><font size="2">&nbsp;</font></td>
<td valign="top" width="29" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" bgcolor="#FFF3CE" style="border-top-style: solid; border-top-width: 1"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="518">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss</font></p>
</td>
<td valign="top" width="12">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="60">
<p align="right"><b><font size="2" face="Times New Roman">(559)</font></b></p>
</td>
<td valign="top" width="29">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="54">
<p align="right"><font size="2" face="Times New Roman">(22,047)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash provided by operating activities:</font></p>
</td>
<td valign="top" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" bgcolor="#FFF3CE"><font size="2">&nbsp; </font></td>
<td valign="top" width="29" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="518"><font size="2">&nbsp;</font></td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="60"><font size="2">&nbsp;</font></td>
<td valign="top" width="29"><font size="2">&nbsp;</font></td>
<td valign="top" width="54"><font size="2">&nbsp;</font></td>
</tr>

<tr height="14">
<td height="14" valign="top" width="518" bgcolor="#FFF3CE">
<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; Loss from
discontinued operations</font></p>
</td>
<td height="14" valign="top" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td height="14" valign="top" width="60" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman">1,517&nbsp;</font></b></p>
</td>
<td height="14" valign="top" width="29" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td height="14" valign="top" width="54" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">1,459&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518">
<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;
Depreciation and amortization</font></p>
</td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="60">
<p align="right"><b><font size="2" face="Times New Roman">1,258&nbsp;</font></b></p>
</td>
<td valign="top" width="29"><font size="2">&nbsp;</font></td>
<td valign="top" width="54">
<p align="right"><font size="2" face="Times New Roman">1,135&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518" bgcolor="#FFF3CE">
<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; Provision
for doubtful accounts</font></p>
</td>
<td valign="top" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman">49&nbsp;</font></b></p>
</td>
<td valign="top" width="29" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">63&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518">
<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;
Cumulative effect of change in accounting principle</font></p>
</td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="60">
<p align="right"><b><font size="2" face="Times New Roman">-&nbsp;</font></b></p>
</td>
<td valign="top" width="29"><font size="2">&nbsp;</font></td>
<td valign="top" width="54">
<p align="right"><font size="2" face="Times New Roman">21,812&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518" bgcolor="#FFF3CE">
<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; (Gain)
Loss on disposals of property, plant, and equipment</font></p>
</td>
<td valign="top" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman">39&nbsp;</font></b></p>
</td>
<td valign="top" width="29" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">(1)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518">
<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;
Other</font></p>
</td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="60">
<p align="right"><b><font size="2" face="Times New Roman">(38)</font></b></p>
</td>
<td valign="top" width="29"><font size="2">&nbsp;</font></td>
<td valign="top" width="54">
<p align="right"><font size="2" face="Times New Roman">95&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518">
<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; Changes
in operating assets and liabilities:</font></p>
</td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="60"><font size="2">&nbsp;</font></td>
<td valign="top" width="29"><font size="2">&nbsp;</font></td>
<td valign="top" width="54"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="518" bgcolor="#FFF3CE">
<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;
Accounts receivable</font></p>
</td>
<td valign="top" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman">6,965&nbsp;</font></b></p>
</td>
<td valign="top" width="29" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">1,377&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518">
<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;
Inventories</font></p>
</td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="60">
<p align="right"><b><font size="2" face="Times New Roman">(4,772)</font></b></p>
</td>
<td valign="top" width="29"><font size="2">&nbsp;</font></td>
<td valign="top" width="54">
<p align="right"><font size="2" face="Times New Roman">(6,214)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518" bgcolor="#FFF3CE">
<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;
Prepaid expenses and other</font></p>
</td>
<td valign="top" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman">(1,694)</font></b></p>
</td>
<td valign="top" width="29" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">(1,552)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518">
<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;
Other assets</font></p>
</td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="60">
<p align="right"><b><font size="2" face="Times New Roman">(13)</font></b></p>
</td>
<td valign="top" width="29"><font size="2">&nbsp;</font></td>
<td valign="top" width="54">
<p align="right"><font size="2" face="Times New Roman">7&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518" bgcolor="#FFF3CE">
<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;
Accounts payable</font></p>
</td>
<td valign="top" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman">975&nbsp;</font></b></p>
</td>
<td valign="top" width="29" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">4,552&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518">
<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;
Accrued liabilities and other</font></p>
</td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">(231)</font></b></p>
</td>
<td valign="top" width="29"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">1,372&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518" bgcolor="#FFF3CE">
<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; Net cash
provided by operating activities from continuing operations</font></p>
</td>
<td valign="top" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman">3,496&nbsp;</font></b></p>
</td>
<td valign="top" width="29" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" bgcolor="#FFF3CE" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">2,058&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518">
<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; Net cash

used in operating activities from discontinued operations</font></p>
</td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">(3,317)</font></b></p>
</td>
<td valign="top" width="29"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">(881)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518" bgcolor="#FFF3CE">
<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; Net cash
provided by operating activities</font></p>
</td>
<td valign="top" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman">179&nbsp;</font></b></p>
</td>
<td valign="top" width="29" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" bgcolor="#FFF3CE" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">1,177&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518"><font size="2">&nbsp;</font></td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="29"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" style="border-top-style: solid; border-top-width: 1"><font size="2">&nbsp; </font></td>
</tr>

<tr>
<td valign="top" width="518" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">INVESTING ACTIVITIES:</font></b></p>
</td>
<td valign="top" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="29" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="518">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of property, plant, and equipment</font></p>
</td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="60">
<p align="right"><b><font size="2" face="Times New Roman">(102)</font></b></p>
</td>
<td valign="top" width="29"><font size="2">&nbsp;</font></td>
<td valign="top" width="54">
<p align="right"><font size="2" face="Times New Roman">(189)</font></p>
</td>
</tr>

<tr height="13">
<td height="13" valign="top" width="518" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of property, plant, and equipment</font></p>
</td>
<td height="13" valign="top" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td height="13" valign="top" width="60" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman">39&nbsp;</font></b></p>
</td>
<td height="13" valign="top" width="29" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td height="13" valign="top" width="54" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">6&nbsp;</font></p>
</td>
</tr>

<tr height="5">
<td height="5" valign="top" width="518">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments received on notes receivables</font></p>
</td>
<td height="5" valign="top" width="12"><font size="2">&nbsp;</font></td>
<td height="5" valign="top" width="60" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">732&nbsp;</font></b></p>
</td>
<td height="5" valign="top" width="29"><font size="2">&nbsp;</font></td>
<td height="5" valign="top" width="54" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">47&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash
provided by (used in) investing activities from continuing operations</font></p>
</td>
<td valign="top" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman">669&nbsp;</font></b></p>
</td>
<td valign="top" width="29" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">(136)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) investing activities from discontinued
operations</font></p>
</td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">1,832&nbsp;</font></b></p>
</td>
<td valign="top" width="29"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">(253)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) investing activities</font></p>
</td>
<td valign="top" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman">2,501&nbsp;</font></b></p>
</td>
<td valign="top" width="29" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">(389)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518"><font size="2">&nbsp;</font></td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="29"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="518" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">FINANCING ACTIVITIES:</font></b></p>
</td>
<td valign="top" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="29" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="518">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net borrowings under senior credit facility</font></p>
</td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="60">
<p align="right"><b><font size="2" face="Times New Roman">2,780&nbsp;</font></b></p>
</td>
<td valign="top" width="29"><font size="2">&nbsp;</font></td>
<td valign="top" width="54">
<p align="right"><font size="2" face="Times New Roman">963&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments on long-term obligations</font></p>
</td>
<td valign="top" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman">(699)</font></b></p>
</td>
<td valign="top" width="29" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">(933)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additions to deferred financing costs</font></p>
</td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="60">
<p align="right"><b><font size="2" face="Times New Roman">(135)</font></b></p>
</td>
<td valign="top" width="29"><font size="2">&nbsp;</font></td>
<td valign="top" width="54">
<p align="right"><font size="2" face="Times New Roman">(177)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Termination of interest rate swap</font></p>
</td>
<td valign="top" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman">-&nbsp;</font></b></p>
</td>
<td valign="top" width="29" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">(341)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash
provided by (used in) financing activities from continuing operations</font></p>
</td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">1,946&nbsp;</font></b></p>
</td>
<td valign="top" width="29"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">(488)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities from discontinued operations</font></p>
</td>
<td valign="top" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman">(3,318)</font></b></p>
</td>
<td valign="top" width="29" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">(3,679)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities</font></p>
</td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">(1,372)</font></b></p>
</td>
<td valign="top" width="29"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">(4,167)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518" bgcolor="#FFF3CE">&nbsp;</td>
<td valign="top" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<font size="2">&nbsp;</font></td>
<td valign="top" width="29" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="518">
<p><b><font size="2" face="Times New Roman">EFFECT OF EXCHANGE RATE CHANGES ON CASH AND TEMPORARY INVESTMENTS</font></b></p>
</td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">667</font></b></p>
</td>
<td valign="top" width="29"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">(78)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">NET CHANGE IN CASH AND TEMPORARY INVESTMENTS</font></b></p>
</td>
<td valign="top" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman">1,975</font></b></p>
</td>
<td valign="top" width="29" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">(3,457)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518">
<p><b><font size="2" face="Times New Roman">CASH AND TEMPORARY INVESTMENTS, beginning of period</font></b></p>
</td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">2,097</font></b></p>
</td>
<td valign="top" width="29"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">9,863&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">CASH AND TEMPORARY INVESTMENTS-DISCONTINUED OPERATIONS,
<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;beginning of
period</font></b></p>
</td>
<td valign="bottom" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="60" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman">1,752&nbsp;</font></b></p>
</td>
<td valign="bottom" width="29" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="54" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518">
<p><b><font size="2" face="Times New Roman">CASH AND TEMPORARY INVESTMENTS-DISCONTINUED OPERATIONS, end of period</font></b></p>
</td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">1,691&nbsp;</font></b></p>
</td>
<td valign="top" width="29"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">--&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">CASH AND TEMPORARY INVESTMENTS, end of period</font></b></p>
</td>
<td valign="top" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman">4,133&nbsp;</font></b></p>
</td>
<td valign="top" width="29" bgcolor="#FFF3CE"></td>
<td valign="top" width="54" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">6,406&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518"><font size="2">&nbsp;</font></td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="29"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="518" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:</font></b></p>
</td>
<td valign="top" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="29" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="518">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash payments for interest</font></p>
</td>
<td valign="top" width="12">
<p align="right"><font size="2">&nbsp;$</font></td>
<td valign="top" width="60" style="border-bottom-style: double">
<p align="right"><b><font size="2" face="Times New Roman">1,193&nbsp;</font></b></p>
</td>
<td valign="top" width="29">
<p align="right"><font size="2">&nbsp;$</font></td>
<td valign="top" width="54" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">1,778&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<font size="2">&nbsp;</font></td>
<td valign="top" width="29" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="518">
<p><font size="2" face="Times New Roman">Cash payments for income taxes</font></p>
</td>
<td valign="top" width="12">
<p align="right"><font size="2">&nbsp;$</font></td>
<td valign="top" width="60" style="border-bottom-style: double">
<p align="right"><b><font size="2" face="Times New Roman">201&nbsp;</font></b></p>
</td>
<td valign="top" width="29">
<p align="right"><font size="2">$</font></td>
<td valign="top" width="54" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">240&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="518"><font size="2">&nbsp;</font></td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="60" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="29"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
</tr>

<tr>
<td colspan="5" valign="top" width="673">
<p align="center"><font size="2" face="Times New Roman">The accompanying notes are an integral part of these
condensed consolidated
statements.</font></p>
</td>
</tr>
</table>


  </center>
  </div>


&nbsp;<p align="center"><font face="Times New Roman" size="2">5<hr size="1" color="#000080" STYLE="page-break-after: always">

<p align="left"><font size="1"><a href="#INDEX">Table of Contents</a></font></p>

  </font>


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

<p><font size="2" face="Times New Roman">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;Basis of Presentation</font></p>

<p style="margin-left: 40"><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 Annual Report on Form 10-K for the year ended December 31, 2002.</font></p>

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

<p style="margin-left: 40"><font size="2" face="Times New Roman">The towing and
recovery equipment manufacturing and towing services industries are</font><font size="2"> highly competitive. Certain competitors may have
substantially greater financial and other resources than the Company. These industries are also subject to a number of external
influences, such as general economic <font face="Times New Roman">conditions</font>, interest rate levels, consumer confidence, and general credit availability. Demand
for the Company's equipment has been negatively impacted by cost pressures facing its customers. Continuation of these pressures
could impact the Company's ability to service its debt.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">At December 31,
2002 the Company&#146;s financial statements were prepared on a going concern basis,
which contemplates the realization of assets and the settlement of liabilities
and commitments in the normal course of business.&nbsp; As more fully described
below, subsequent to December 31, 2002, the Company was in default of certain
covenants under its senior (&#147;Senior Credit Facility&#148;) and subordinated (&#147;Junior
Credit Facility&#148;) credit facility agreements, and its subordinated credit
facility matures on July 23, 2003.&nbsp; The senior and subordinated credit
facility agreements contain certain cross-default provisions and provide for
acceleration of amounts due as well as other remedies in the event of default.&nbsp;
These circumstances raise substantial doubt about the Company&#146;s ability to
continue as a going concern.&nbsp;</font></p>

<p style="margin-left: 40"><font size="2"> The Junior Credit Facility matures on July 23, 2003,
<font face="Times New Roman">under</font> which $13.8 million was outstanding March 31, 2003.&nbsp; There
is no assurance that the Company will be able to repay or refinance the outstanding principal and interest under the Junior Credit
Facility on the maturity date thereof.&nbsp; If the Company fails to repay all outstanding principal, interest and any other
amounts due and owing under the Junior Credit Facility on the maturity date, such failure will constitute an event of default under
the Junior Credit Facility and will also trigger an event of default under the Senior Credit Facility cross-default
provisions.&nbsp; A total of $42.0 million (continuing and discontinuing operations) was outstanding under the Senior Credit
Facility at March 31, 2003.&nbsp; In such case, the junior lender agent would be prevented from taking any enforcement action
against the Company, its subsidiaries or their respective assets in respect of such event of default until the earlier of:&nbsp;
(i) the date which is 120 days (subject to extension to 270 days by notice from senior lender agent to junior lender agent) after
the date upon which the junior lender agent gives notice of enforcement to the senior lender agent pursuant to the terms of the
Intercreditor Agreement; (ii) the acceleration of the maturity of the obligations of the Company under the Senior Credit Facility
by the senior lender agent, and (iii) the commencement of any bankruptcy, insolvency or similar proceeding against the Company or
certain of its subsidiaries.&nbsp; The resulting event of default under the Senior Credit Facility if the Company does not repay
all of the obligations under the Junior Credit Facility could result in the acceleration of the amounts due under the Senior Credit
Facility as well as other remedies if not waived by the senior lenders.&nbsp;&nbsp; There is no assurance that the Company will be
able to obtain such a waiver from the senior lenders or a waiver from the junior lenders of any event of default that would occur
as a result of the failure by the Company to repay or refinance the outstanding principal and interest under the Junior Credit
Facility on the maturity date.</font></p>

<p align="center"><font face="Times New Roman" size="2">6<hr size="1" color="#000080" STYLE="page-break-after: always">

<p align="left"><font size="1"><a href="#INDEX">Table of Contents</a></font></p>

  </font>

<p style="margin-left: 40"><font size="2" face="Times New Roman">Subsequent to December
31, 2002, the Company was in default under certain covenants under its Senior and Junior Credit Facility agreements.&nbsp; While
the Company has on several occasions negotiated amendments to its credit facilities that waived certain defaults and brought the
Company back into compliance, 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 collaterized 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: 40"><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. Pursuant to the Third Amendment, the
amount of the mandatory periodic</font><font size="2"> 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. 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. <font face="Times New Roman">Pursuant</font> 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: 40"><font size="2" face="Times New Roman">In addition,
pursuant to the Third Amendment, the amount of availability that can be
generated for used inventory 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. The Sixth
Amendment (discussed below 2003 Amendments) lowered the $4.3 million limit and
eliminated the further requirement for reduction to $0 after February 28, 2003.</font></p>

<p style="margin-left: 40"><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 </font><font size="2">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.</font></p>

<p align="center"><font face="Times New Roman" size="2">7<hr size="1" color="#000080" STYLE="page-break-after: always">

<p align="left"><font size="1"><a href="#INDEX">Table of Contents</a></font></p>

  </font>

<p style="margin-left: 40"><font size="2" face="Times New Roman">On February 28, 2003,
the Company entered into the Fifth Amendment to the Credit Agreement. Pursuant to the Fifth Amendment, the date upon which the
amount of certain used inventory taken in trade for collateral purposes is reduced to $-0- was extended from February 28, 2003 to
March 31, 2003. In addition, the Fifth Amendment revised the RoadOne revolving commitment reducing the amount to $9.0 million at
February 28, 2003 and $-0- as of March 31, 2003.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">On April 1, 2003, the
Company entered into the Sixth Amendment to Credit Agreement. &nbsp; The Sixth Amendment among other things, revised the RoadOne
revolving commitment, extending by one year the time for the reduction thereof to  $-0- from March 31, 2003 to March 31, 2004.&nbsp; The amount of availability that can be
generated for used inventory considered as eligible inventory for collateral purposes was reduced to $2.7 million with no further
required reductions.&nbsp;</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">Meeting the new
repayment schedule will require that the Company sell its remaining towing
services businesses according to its contemplated schedule on acceptable terms.
While the Company believes its timetable for sales is achievable, there can be
no assurance that the schedule can be met. Failure to achieve the Company's
timetable for such sales or cash flow projections could result in failure to
comply with the amended debt service requirements. 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. 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. 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's business and financial condition would be
materially and adversely affected.</font></p>

<p style="margin-left: 40"><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 had also disposed of
certain underperforming RoadOne assets and operations in order to improve liquidity and to reduce expenses and debt. As described
in Note 3, in October 2002, the Company decided to sell all remaining towing services operations.&nbsp; During 2002, the Company
sold 39 towing services locations for proceeds of $23.5 million, which have been used to reduce the RoadOne revolver.&nbsp; The
Company also made the decision in the fourth quarter of 2002 to divest of the operations of the distribution group of the towing
and recovery equipment segment.&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 support to the
over 100 towing services locations and nine distribution 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 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 results of operations.</font></p>

<p align="center"><font face="Times New Roman" size="2">8<hr size="1" color="#000080" STYLE="page-break-after: always">

<p align="left"><font size="1"><a href="#INDEX">Table of Contents</a></font></p>

  </font>

<p style="margin-left: 40"><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 11th, 2001, general economic conditions and the
Company&#146;s operating results.&nbsp; Prospective purchasers of towing services and
distribution 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 style="margin-left: 40"><font size="2" face="Times New Roman">The Company received a
tax refund of approximately $4.2 million during the quarter ended June 30, 2002, which was used to reduce the RoadOne revolver and
cured the over-advance 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;</font></p>

<p><font size="2" face="Times New Roman">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued
Operations</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">During the
fourth quarter of the year ended December 31, 2002, the Company&#146;s management and
board of directors made the decision to divest of its remaining towing services
segment, as well as the operations of the distribution group of the towing and
recovery equipment segment.&nbsp;</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">During the
quarter ended March 31, 2003, the Company disposed of assets in six markets
underperforming towing service markets, as well as assets in other markets of
its towing services segment.&nbsp; Total proceeds from the sales were $1.7
million which included $1.5 million in cash and $0.2 million in notes
receivable.&nbsp; Losses on the sales of discontinued operations were $1.0
million.&nbsp;&nbsp;</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">During the
quarter ended March 31, 2003, the Company sold one distributor location with
total proceeds of approximately $1.9 million in cash and $0.8 million
subordinated notes receivable.&nbsp; The Company had entered into agreements for
the disposition of two of the eight remaining locations of the distribution
group.&nbsp;</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">In accordance with SFAS
No. 144, &ldquo;Accounting for the Impairment or Disposal of Long-Lived Assets&rdquo;, the assets for the towing services segment
and the distribution group are considered a &ldquo;disposal group&rdquo; and are no longer being depreciated.&nbsp; All assets and
liabilities and results of operations associated with these assets have been separately presented in the accompanying financial
statements at March 31, 2003 and December 31, 2002.&nbsp; The statements of operations and related financial statement disclosures
for all prior years have been restated to present the towing services segment and the distribution group as discontinued operations
separate from continuing operations.&nbsp; Results of operations for the towing services segment and the distribution group reflect
interest expense for debt directly attributing to these businesses, as well as an allocation of corporate debt based on
intercompany balances.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">The operating
results for the discontinued operations of the towing services segment and the
distributor group for the quarters ended March 31, 2003 and 2002, were as
follows (in thousands):</font></p>

<p>&nbsp;</p>

<table border="0" cellspacing="0" cellpadding="0" width="703" style="border-collapse: collapse" bordercolor="#111111">
<tr>
<td valign="top" width="293"><font size="2">&nbsp;</font></td>
<td colspan="5" valign="top" width="199" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">Three Months Ended<br>
March 31, 2003</font></p>

</td>
<td valign="top" width="17"><font size="2">&nbsp;</font></td>
<td colspan="5" valign="top" width="194" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">Three Months Ended<br>
March 31, 2002</font></p>

</td>
</tr>

<tr>
<td valign="top" width="293"><font size="2">&nbsp;</font></td>
<td valign="top" width="61" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">Dist.</font></p>
</td>
<td valign="top" width="12" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="54" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">Towing</font></p>
</td>
<td valign="top" width="14" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="58" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">Total</font></p>
</td>
<td valign="top" width="17"><font size="2">&nbsp;</font></td>
<td valign="top" width="51" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">Dist.</font></p>
</td>
<td valign="top" width="16" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="59" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">Towing</font></p>
</td>
<td valign="top" width="12" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="56" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">Total</font></p>
</td>
</tr>

<tr>
<td valign="top" width="293"><font size="2">&nbsp;</font></td>
<td valign="top" width="61" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="54" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="14"><font size="2">&nbsp;</font></td>
<td valign="top" width="58" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="17"><font size="2">&nbsp;</font></td>
<td valign="top" width="51" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="16"><font size="2">&nbsp;</font></td>
<td valign="top" width="59" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="56" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="293">
<p><font size="2" face="Times New Roman">Net Sales</font></p>
</td>
<td valign="top" width="61">
<p align="right"><font size="2" face="Times New Roman">$16,615&nbsp;</font></p>
</td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="54">
<p align="right"><font size="2" face="Times New Roman">$11,419&nbsp;</font></p>
</td>
<td valign="top" width="14"><font size="2">&nbsp;</font></td>
<td valign="top" width="58">
<p align="right"><font size="2" face="Times New Roman">$28,034&nbsp;</font></p>
</td>
<td valign="top" width="17"><font size="2">&nbsp;</font></td>
<td valign="top" width="51">
<p align="right"><font size="2" face="Times New Roman">$22,497&nbsp;</font></p>
</td>
<td valign="top" width="16"><font size="2">&nbsp;</font></td>
<td valign="top" width="59">
<p align="right"><font size="2" face="Times New Roman">$34,029&nbsp;</font></p>
</td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="56">
<p align="right"><font size="2" face="Times New Roman">$56,526&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="293"><font size="2">&nbsp;</font></td>
<td valign="top" width="61"><font size="2">&nbsp;</font></td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="54"><font size="2">&nbsp;</font></td>
<td valign="top" width="14"><font size="2">&nbsp;</font></td>
<td valign="top" width="58"><font size="2">&nbsp;</font></td>
<td valign="top" width="17"><font size="2">&nbsp;</font></td>
<td valign="top" width="51"><font size="2">&nbsp;</font></td>
<td valign="top" width="16"><font size="2">&nbsp;</font></td>
<td valign="top" width="59"><font size="2">&nbsp;</font></td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="56"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="293">
<p><font size="2" face="Times New Roman">Operating income (loss)</font></p>
</td>
<td valign="top" width="61">
<p align="right"><font size="2" face="Times New Roman">(34)</font></p>
</td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="54">
<p align="right"><font size="2" face="Times New Roman">(959)</font></p>
</td>
<td valign="top" width="14"><font size="2">&nbsp;</font></td>
<td valign="top" width="58">
<p align="right"><font size="2" face="Times New Roman">(993)</font></p>
</td>
<td valign="top" width="17"><font size="2">&nbsp;</font></td>
<td valign="top" width="51">
<p align="right"><font size="2" face="Times New Roman">(140)</font></p>
</td>
<td valign="top" width="16"><font size="2">&nbsp;</font></td>
<td valign="top" width="59">
<p align="right"><font size="2" face="Times New Roman">(419)</font></p>
</td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="56">
<p align="right"><font size="2" face="Times New Roman">(559)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="293"><font size="2">&nbsp;</font></td>
<td valign="top" width="61"><font size="2">&nbsp;</font></td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="54"><font size="2">&nbsp;</font></td>
<td valign="top" width="14"><font size="2">&nbsp;</font></td>
<td valign="top" width="58"><font size="2">&nbsp;</font></td>
<td valign="top" width="17"><font size="2">&nbsp;</font></td>
<td valign="top" width="51"><font size="2">&nbsp;</font></td>
<td valign="top" width="16"><font size="2">&nbsp;</font></td>
<td valign="top" width="59"><font size="2">&nbsp;</font></td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="56"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="293">
<p><font size="2" face="Times New Roman">Loss from discontinued operations</font></p>
</td>
<td valign="top" width="61">
<p align="right"><font size="2" face="Times New Roman">(775)</font></p>
</td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="54">
<p align="right"><font size="2" face="Times New Roman">(742)</font></p>
</td>
<td valign="top" width="14"><font size="2">&nbsp;</font></td>
<td valign="top" width="58">
<p align="right"><font size="2" face="Times New Roman">(1,517)</font></p>
</td>
<td valign="top" width="17"><font size="2">&nbsp;</font></td>
<td valign="top" width="51">
<p align="right"><font size="2" face="Times New Roman">(888)</font></p>
</td>
<td valign="top" width="16"><font size="2">&nbsp;</font></td>
<td valign="top" width="59">
<p align="right"><font size="2" face="Times New Roman">(571)</font></p>
</td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="56">
<p align="right"><font size="2" face="Times New Roman">(1,459)</font></p>
</td>
</tr>
</table>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following assets
and liabilities are reclassified as held for sale at March 31, 2003 and December 31, 2002 (in thousands):</font></p>

<p align="center"><font face="Times New Roman" size="2">9<hr size="1" color="#000080" STYLE="page-break-after: always">

<p align="left"><font size="1"><a href="#INDEX">Table of Contents</a></font></p>

  </font>


  <div align="center">
    <center>


<table border="0" cellspacing="0" cellpadding="0" width="640" style="border-collapse: collapse" bordercolor="#111111">

<tr height="19">
<td valign="bottom" width="232" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="194" colspan="8" align="center" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<font size="2">March 31, 2003</font></td>
<td valign="top" width="13" align="center" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td colspan="8" valign="top" width="201" align="center" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<font size="2">December 31, 2002</font></td>
</tr>

<tr height="19">
<td valign="bottom" width="232"><font size="2">&nbsp;</font></td>
<td valign="top" width="53" colspan="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">Dist.</font></p>
</td>
<td valign="top" width="16" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2">&nbsp;</font></td>
<td valign="top" width="61" colspan="2" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">Towing</font></p>
</td>
<td valign="top" width="12" style="border-top-style: solid; border-top-width: 1"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="52" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">Total</font></p>
</td>
<td valign="top" width="13"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="top" width="50" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">Dist.</font></p>
</td>
<td valign="top" width="25" style="border-top-style: solid; border-top-width: 1"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="50" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">Towing</font></p>
</td>
<td valign="top" width="25" style="border-top-style: solid; border-top-width: 1"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="top" width="51" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">Total</font></p>
</td>
</tr>

<tr height="19">
<td valign="bottom" width="232" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">Cash and temporary investments</font></p>
</td>
<td valign="bottom" width="7" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<p align="left"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom" width="46" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<font size="2" face="Times New Roman">1,355</font></td>
<td valign="bottom" width="16" bgcolor="#FFF3CE">
<p align="center"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="13" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<p align="left"><font size="2">$</font></p>
</td>
<td valign="bottom" width="48" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<font size="2" face="Times New Roman">336</font></td>
<td valign="bottom" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="15" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">

<p align="left"><font size="2">$</font></p>
</td>
<td valign="bottom" width="37" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<font size="2" face="Times New Roman">1,691</font></td>
<td valign="top" width="13" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="25" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">$&nbsp; </font></p>
</td>
<td valign="bottom" width="25" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<font size="2" face="Times New Roman">1,443</font></td>
<td valign="top" width="25" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="25" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<p align="left"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom" width="25" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">309</font></td>
<td valign="top" width="25" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="25" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">$&nbsp;&nbsp; </font></p>
</td>
<td valign="bottom" width="26" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<font size="2" face="Times New Roman">1,752</font></td>
</tr>

<tr height="19">
<td valign="bottom" width="232"><font size="2">&nbsp;</font></td>
<td valign="top" width="53" align="right" colspan="2">
<font size="2">&nbsp;</font></td>
<td valign="top" width="16">
<p align="center"><font size="2">&nbsp;</font></td>
<td valign="top" width="61" align="right" colspan="2">
<p align="left">
<font size="2">&nbsp;</font></td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="52" align="right" colspan="2">
<font size="2">&nbsp;</font></td>
<td valign="top" width="13"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="50" align="right">
<font size="2">&nbsp;</font></td>
<td valign="top" width="25"><font size="2">&nbsp;</font></td>
<td valign="bottom" colspan="2" width="50"><font size="2">&nbsp;</font></td>
<td valign="top" width="25"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="51" align="right">
<font size="2">&nbsp;</font></td>
</tr>

<tr height="19">
<td valign="bottom" width="232" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">Accounts receivable, net</font></p>
</td>
<td valign="top" width="53" align="right" colspan="2" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">5,212</font></p>
</td>
<td valign="top" width="16" bgcolor="#FFF3CE">
<p align="center"><font size="2">&nbsp;</font></td>
<td valign="top" width="61" align="right" colspan="2" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">3,846</font></p>
</td>
<td valign="top" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="52" align="right" colspan="2" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">9,058</font></p>
</td>
<td valign="top" width="13" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="50" align="right" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">2,604</font></p>
</td>
<td valign="top" width="25" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" colspan="2" width="50" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">4,894</font></p>
</td>
<td valign="top" width="25" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="51" align="right" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">7,498</font></p>
</td>
</tr>

<tr height="19">
<td valign="bottom" width="232"><font size="2">&nbsp;</font></td>
<td valign="top" width="53" align="right" colspan="2">
<p align="left">
<font size="2">&nbsp;</font></td>
<td valign="top" width="16">
<p align="center"><font size="2">&nbsp;</font></td>
<td valign="top" width="61" align="right" colspan="2">
<font size="2">&nbsp;</font></td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="52" align="right" colspan="2">
<font size="2">&nbsp;</font></td>
<td valign="top" width="13"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="50" align="right">
<font size="2">&nbsp;</font></td>
<td valign="top" width="25"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" colspan="2" width="50"><font size="2">&nbsp;</font></td>
<td valign="top" width="25"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="51" align="right">
<font size="2">&nbsp;</font></td>
</tr>

<tr height="19">
<td valign="bottom" width="232" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">Inventories</font></p>
</td>
<td valign="top" width="53" align="right" colspan="2" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">15,223</font></p>
</td>
<td valign="top" width="16" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="61" align="right" colspan="2" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">--</font></p>
</td>
<td valign="top" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="52" align="right" colspan="2" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">15,223</font></p>
</td>
<td valign="top" width="13" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="50" align="right" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">19,559</font></p>
</td>
<td valign="top" width="25" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" colspan="2" width="50" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">--</font></p>
</td>
<td valign="top" width="25" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="51" align="right" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">19,559</font></p>
</td>
</tr>

<tr height="19">
<td valign="bottom" width="232"><font size="2">&nbsp;</font></td>
<td valign="top" width="53" align="right" colspan="2">
<font size="2">&nbsp;</font></td>
<td valign="top" width="16"><font size="2">&nbsp;</font></td>
<td valign="top" width="61" align="right" colspan="2">
<font size="2">&nbsp;</font></td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="52" align="right" colspan="2">
<font size="2">&nbsp;</font></td>
<td valign="top" width="13"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="50" align="right">
<font size="2">&nbsp;</font></td>
<td valign="top" width="25"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" colspan="2" width="50"><font size="2">&nbsp;</font></td>
<td valign="top" width="25"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="51" align="right">
<font size="2">&nbsp;</font></td>
</tr>

<tr height="19">
<td valign="bottom" width="232" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">Prepaid expenses and other current<br>
assets</font></p>
</td>
<td valign="bottom" width="53" align="right" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">486</font></p>
</td>
<td valign="bottom" width="16" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="61" align="right" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">3,500</font></p>
</td>
<td valign="bottom" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="52" align="right" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">3,986</font></p>
</td>
<td valign="bottom" width="13" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="50" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">170</font></p>
</td>
<td valign="bottom" width="25" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" colspan="2" width="50" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">3,387</font></p>
</td>
<td valign="bottom" width="25" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="51" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">3,557</font></p>
</td>
</tr>

<tr height="19">
<td valign="bottom" width="232"><font size="2">&nbsp;</font></td>
<td valign="top" width="53" align="right" colspan="2" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2">&nbsp;&nbsp;</font></td>
<td valign="top" width="16"><font size="2">&nbsp;</font></td>
<td valign="top" width="61" align="right" colspan="2" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="52" align="right" colspan="2" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="13"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="50" align="right" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="25"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" colspan="2" width="50" style="border-top-style: solid; border-top-width: 1"><font size="2">&nbsp;</font></td>
<td valign="top" width="25"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="51" align="right" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
</tr>

<tr height="19">
<td valign="bottom" width="232" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">Current assets of discontinued <br>
operations held for sale</font></p>
</td>
<td valign="bottom" width="53" align="right" colspan="2" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">22,276</font></p>
</td>
<td valign="bottom" width="16" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="61" align="right" colspan="2" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">7,682</font></p>
</td>
<td valign="bottom" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="52" align="right" colspan="2" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">29,958</font></p>
</td>
<td valign="bottom" width="13" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="50" align="right" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">23,776</font></p>
</td>
<td valign="bottom" width="25" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" colspan="2" width="50" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">8,590</font></p>
</td>
<td valign="bottom" width="25" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="51" align="right" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">32,366</font></p>
</td>
</tr>

<tr height="19">
<td valign="bottom" width="232"><font size="2">&nbsp;</font></td>
<td valign="top" width="53" align="right" colspan="2" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2">&nbsp;</font></td>
<td valign="top" width="16"><font size="2">&nbsp;</font></td>
<td valign="top" width="61" align="right" colspan="2" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" width="52" align="right" colspan="2" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="13"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="50" align="right" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="25"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" colspan="2" width="50" style="border-top-style: solid; border-top-width: 1"><font size="2">&nbsp;</font></td>
<td valign="top" width="25"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="51" align="right" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
</tr>

<tr height="19">
<td valign="bottom" width="232" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">Property, plant and equipment</font></p>
</td>
<td valign="bottom" width="53" align="right" colspan="2" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">--</font></p>
</td>
<td valign="bottom" width="16" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="61" align="right" colspan="2" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">11,893</font></p>
</td>
<td valign="bottom" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="52" align="right" colspan="2" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">11,893</font></p>
</td>
<td valign="bottom" width="13" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="50" align="right" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">--</font></p>
</td>
<td valign="bottom" width="25" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" colspan="2" width="50" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">13,368</font></p>
</td>
<td valign="bottom" width="25" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="51" align="right" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">13,368</font></p>
</td>
</tr>

<tr height="19">
<td valign="bottom" width="232"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="53" align="right" colspan="2">
<p align="center"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="16"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="61" align="right" colspan="2">
<font size="2">&nbsp;</font></td>
<td valign="bottom" width="12"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="52" align="right" colspan="2">
<font size="2">&nbsp;</font></td>
<td valign="bottom" width="13"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="50" align="right">
<font size="2">&nbsp;</font></td>
<td valign="bottom" width="25"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" colspan="2" width="50"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="25"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="51" align="right">
<font size="2">&nbsp;</font></td>
</tr>

<tr height="19">
<td valign="bottom" width="232" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">Other long-term assets</font></p>
</td>
<td valign="bottom" width="53" align="right" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">--</font></p>
</td>
<td valign="bottom" width="16" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="61" align="right" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">1,928</font></p>
</td>
<td valign="bottom" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="52" align="right" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">1,928</font></p>
</td>
<td valign="bottom" width="13" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="50" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; --</font></p>
</td>
<td valign="bottom" width="25" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" colspan="2" width="50" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">2,049</font></p>
</td>
<td valign="bottom" width="25" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="51" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">2,049</font></p>
</td>
</tr>

<tr height="19">
<td valign="bottom" width="232"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="53" align="right" colspan="2" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="16"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="61" align="right" colspan="2" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="bottom" width="12"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="52" align="right" colspan="2" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="bottom" width="13"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="50" align="right" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="bottom" width="25"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" colspan="2" width="50" style="border-top-style: solid; border-top-width: 1"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="25"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="51" align="right" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
</tr>

<tr height="19">
<td valign="bottom" width="232" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">Noncurrent assets of discontinued<br>
operations held for sale</font></p>
</td>
<td valign="bottom" width="53" align="right" colspan="2" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">--</font></p>
</td>
<td valign="bottom" width="16" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="61" align="right" colspan="2" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">13,821</font></p>
</td>
<td valign="bottom" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="52" align="right" colspan="2" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">13,821</font></p>
</td>
<td valign="bottom" width="13" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="50" align="right" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; --</font></p>
</td>
<td valign="bottom" width="25" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" colspan="2" width="50" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">15,417</font></p>
</td>
<td valign="bottom" width="25" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="51" align="right" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">15,417</font></p>
</td>
</tr>

<tr height="19">
<td valign="bottom" width="232"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="53" align="right" colspan="2" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="16"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="61" colspan="2" style="border-top-style: solid; border-top-width: 1"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="12"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="52" colspan="2" style="border-top-style: solid; border-top-width: 1"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="13"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="50" align="right" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="bottom" width="25"><font size="2">&nbsp;</font></td>
<td valign="bottom" colspan="2" width="50" style="border-top-style: solid; border-top-width: 1"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="25"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="51" align="right" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
</tr>

<tr height="19">
<td valign="bottom" width="232" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">Current portion of long-term debt</font></p>
</td>
<td valign="bottom" align="right" width="53" colspan="2" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">11,735</font></p>
</td>
<td valign="bottom" width="16" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" width="61" colspan="2" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">9,142</font></p>
</td>
<td valign="bottom" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" width="52" colspan="2" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">20,877</font></p>
</td>
<td valign="bottom" width="13" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" align="right" width="50" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">12,632</font></p>
</td>
<td valign="bottom" width="25" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" colspan="2" width="50" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">11,484</font></p>
</td>
<td valign="bottom" width="25" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="51" align="right" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">24,116</font></p>
</td>
</tr>

<tr height="19">
<td valign="bottom" width="232"><font size="2">&nbsp;</font></td>
<td valign="top" align="right" width="53" colspan="2">
<p align="center"><font size="2">&nbsp;</font></td>
<td valign="top" width="16"><font size="2">&nbsp;</font></td>
<td valign="top" align="right" width="61" colspan="2">
<font size="2">&nbsp;</font></td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" align="right" width="52" colspan="2">
<font size="2">&nbsp;</font></td>
<td valign="top" width="13"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" align="right" width="50">
<font size="2">&nbsp;</font></td>
<td valign="top" width="25"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" colspan="2" width="50"><font size="2">&nbsp;</font></td>
<td valign="top" width="25"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="51" align="right">
<font size="2">&nbsp;</font></td>
</tr>

<tr height="19">
<td valign="bottom" width="232" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">Accounts payable</font></p>
</td>
<td valign="top" align="right" width="53" colspan="2" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">3,407</font></p>
</td>
<td valign="top" width="16" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" align="right" width="61" colspan="2" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">8,160</font></p>
</td>
<td valign="top" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" align="right" width="52" colspan="2" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">11,567</font></p>
</td>
<td valign="top" width="13" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" align="right" width="50" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">5,710</font></p>
</td>
<td valign="top" width="25" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" colspan="2" width="50" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">7,841</font></p>
</td>
<td valign="top" width="25" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="51" align="right" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">13,551</font></p>
</td>
</tr>

<tr height="19">
<td valign="bottom" width="232"><font size="2">&nbsp;</font></td>
<td valign="top" align="right" width="53" colspan="2">
<p align="center"><font size="2">&nbsp;</font></td>
<td valign="top" width="16"><font size="2">&nbsp;</font></td>
<td valign="top" align="right" width="61" colspan="2">
<font size="2">&nbsp;</font></td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" align="right" width="52" colspan="2">
<font size="2">&nbsp;</font></td>
<td valign="top" width="13"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" align="right" width="50">
<font size="2">&nbsp;</font></td>
<td valign="top" width="25"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" colspan="2" width="50"><font size="2">&nbsp;</font></td>
<td valign="top" width="25"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="51" align="right">
<font size="2">&nbsp;</font></td>
</tr>

<tr height="19">
<td valign="bottom" width="232" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">Accrued liabilities and other</font></p>
</td>
<td valign="top" align="right" width="53" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman"><br />
 4,019</font></p>
</td>
<td valign="top" width="16" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" align="right" width="61" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman"><br />
 9,597</font></p>
</td>
<td valign="top" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" align="right" width="52" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman"><br />
 13,616</font></p>
</td>
<td valign="top" width="13" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" align="right" width="50" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">4,169</font></p>
</td>
<td valign="top" width="25" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" colspan="2" width="50" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">11,376</font></p>
</td>
<td valign="top" width="25" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="51" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">15,545</font></p>
</td>
</tr>

<tr height="19">
<td valign="bottom" width="232"><font size="2">&nbsp;</font></td>
<td valign="top" align="right" width="53" colspan="2" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2">&nbsp;</font></td>
<td valign="top" width="16"><font size="2">&nbsp;</font></td>
<td valign="top" align="right" width="61" colspan="2" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" align="right" width="52" colspan="2" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="13"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" align="right" width="50" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="25"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" colspan="2" width="50" style="border-top-style: solid; border-top-width: 1"><font size="2">&nbsp;</font></td>
<td valign="top" width="25"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="51" align="right" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
</tr>

<tr height="19">
<td valign="bottom" width="232" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">Current liabilities of discontinued<br>
operations held for sale</font></p>
</td>
<td valign="bottom" align="right" width="53" colspan="2" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">19,161</font></p>
</td>
<td valign="bottom" width="16" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" width="61" colspan="2" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">26,899</font></p>
</td>
<td valign="bottom" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" width="52" colspan="2" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">46,060</font></p>
</td>
<td valign="bottom" width="13" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" align="right" width="50" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">22,511</font></p>
</td>
<td valign="bottom" width="25" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" colspan="2" width="50" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">30,701</font></p>
</td>
<td valign="bottom" width="25" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="51" align="right" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">53,212</font></p>
</td>
</tr>

<tr height="19">
<td valign="bottom" width="232"><font size="2">&nbsp; </font></td>
<td valign="top" align="right" width="53" colspan="2" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2">&nbsp;</font></td>
<td valign="top" width="16"><font size="2">&nbsp;</font></td>
<td valign="top" align="right" width="61" colspan="2" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" align="right" width="52" colspan="2" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="13"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" align="right" width="50" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="25"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" colspan="2" width="50" style="border-top-style: solid; border-top-width: 1"><font size="2">&nbsp;</font></td>
<td valign="top" width="25"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="51" align="right" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
</tr>

<tr height="19">
<td valign="bottom" width="232" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">Long-term debt</font></p>
</td>
<td valign="top" align="right" width="53" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">--</font></p>
</td>
<td valign="top" width="16" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" align="right" width="61" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">1,372</font></p>
</td>
<td valign="top" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" align="right" width="52" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">1,372</font></p>
</td>
<td valign="top" width="13" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" align="right" width="50" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; --</font></p>
</td>
<td valign="top" width="25" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" colspan="2" width="50" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">1,450</font></p>
</td>
<td valign="top" width="25" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="51" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">1,450</font></p>
</td>
</tr>

<tr height="19">
<td valign="bottom" width="232"><font size="2">&nbsp;</font></td>
<td valign="top" align="right" width="53" colspan="2" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2">&nbsp;</font></td>
<td valign="top" width="16"><font size="2">&nbsp;</font></td>
<td valign="top" align="right" width="61" colspan="2" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="12"><font size="2">&nbsp;</font></td>
<td valign="top" align="right" width="52" colspan="2" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="13"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" align="right" width="50" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="25"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" colspan="2" width="50" style="border-top-style: solid; border-top-width: 1"><font size="2">&nbsp;</font></td>
<td valign="top" width="25"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="bottom" width="51" align="right" style="border-top-style: solid; border-top-width: 1"></td>
</tr>

<tr height="19">
<td valign="bottom" width="232" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">Noncurrent liabilities of discontinued<br>
operations held for sale</font></p>
</td>
<td valign="bottom" align="right" width="7" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p align="left"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom" align="right" width="46" style="border-bottom-style: double" bgcolor="#FFF3CE">
<font size="2" face="Times New Roman">&nbsp;--</font></td>
<td valign="bottom" width="16" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" width="13" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p align="left"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom" align="right" width="48" style="border-bottom-style: double" bgcolor="#FFF3CE">
<font size="2" face="Times New Roman">1,372</font></td>
<td valign="bottom" width="12" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" width="15" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p align="left"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom" align="right" width="37" style="border-bottom-style: double" bgcolor="#FFF3CE">
<font size="2" face="Times New Roman">1,372</font></td>
<td valign="bottom" width="13" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" width="25" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p align="left"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom" align="right" width="25" style="border-bottom-style: double" bgcolor="#FFF3CE">
<font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
- --</font></td>
<td valign="bottom" width="25" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" width="25" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p align="left"><font size="2" face="Times New Roman">$&nbsp; </font></p>
</td>
<td valign="bottom" align="right" width="25" style="border-bottom-style: double" bgcolor="#FFF3CE">
<font size="2" face="Times New Roman">1,450</font></td>
<td valign="bottom" width="25" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="25" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">$&nbsp;&nbsp;&nbsp; </font></p>
</td>
<td valign="bottom" width="26" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">1,450</font></td>
</tr>
</table>


</center>
</div>

<p align="center"><font size="2" face="Times New Roman">10<hr size="1" color="#000080" STYLE="page-break-after: always">

<p align="left"><font size="1"><a href="#INDEX">Table of Contents</a></font></p>

</font>

<p><font size="2" face="Times New Roman">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Income (Loss) Per Share</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">Basic</font><font size="2">
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 and 100 potential dilutive
common shares for the three months ended March 31, 2003 and 2002, respectively.</font></p>

<p><font size="2" face="Times New Roman">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories</font></p>

<p style="margin-left: 40"><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, </font><font size="2">
first</font><font size="2" face="Times New Roman">-out basis.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">Inventories for
continuing operations at March 31, 2003 and December 31, 2002 consisted of the
following (in thousands):</font></p>

<div align="center">
  <center>

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111" width="355">
<tr>
<td valign="top" width="150"><font size="2">&nbsp;</font></td>
<td valign="top" width="32"><font size="2">&nbsp;</font></td>
<td valign="top" width="64" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><b><font size="2" face="Times New Roman">March 31,<br />
 2003</font></b></p>
</td>
<td valign="top" width="23"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">December 31,<br />
 2002</font></p>
</td>
</tr>

<tr>
<td valign="top" width="150"><font size="2">&nbsp;</font></td>
<td valign="top" width="32"><font size="2">&nbsp;</font></td>
<td valign="top" width="64" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="23"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="150">
<p><font size="2" face="Times New Roman">Chassis</font></p>
</td>
<td valign="top" width="32">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;$</font></b></p>
</td>
<td valign="top" width="64">
<p align="right"><b><font size="2" face="Times New Roman">3,269</font></b></p>
</td>
<td valign="top" width="23">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="86">
<p align="right"><font size="2" face="Times New Roman">1,316</font></p>
</td>
</tr>

<tr>
<td valign="top" width="150">
<p><font size="2" face="Times New Roman">Raw Materials</font></p>
</td>
<td valign="top" width="32"><font size="2">&nbsp;</font></td>
<td valign="top" width="64">
<p align="right"><b><font size="2" face="Times New Roman">11,793</font></b></p>
</td>
<td valign="top" width="23"><font size="2">&nbsp;</font></td>
<td valign="top" width="86">
<p align="right"><font size="2" face="Times New Roman">10,993</font></p>
</td>
</tr>

<tr>
<td valign="top" width="150">
<p><font size="2" face="Times New Roman">Work in process</font></p>
</td>
<td valign="top" width="32"><font size="2">&nbsp;</font></td>
<td valign="top" width="64">
<p align="right"><b><font size="2" face="Times New Roman">7,812</font></b></p>
</td>
<td valign="top" width="23"><font size="2">&nbsp;</font></td>
<td valign="top" width="86">
<p align="right"><font size="2" face="Times New Roman">7,746</font></p>
</td>
</tr>

<tr>
<td valign="top" width="150">
<p><font size="2" face="Times New Roman">Finished goods</font></p>
</td>
<td valign="top" width="32"><font size="2">&nbsp;</font></td>
<td valign="top" width="64" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">10,084</font></b></p>
</td>
<td valign="top" width="23"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">7,760</font></p>
</td>
</tr>

<tr>
<td valign="top" width="150"><font size="2">&nbsp;</font></td>
<td valign="top" width="32">
<p align="right"><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top" width="64" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><b><font size="2" face="Times New Roman">32,958</font></b></p>
</td>
<td valign="top" width="23">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="86" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">27,815</font></p>
</td>
</tr>
</table>

</center>
  </div>

<p><font size="2" face="Times New Roman">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Special Charges and Other
Expenses</font></p>

<p style="margin-left: 40"><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 year ended December 31, 2002 and 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&#146;s towing and
recovery equipment segment were not fully recoverable.</font></p>

<p style="margin-left: 40"><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 $1,553,000 and $2,644,000 were
recorded for the year ended December&nbsp;31, 2002 and 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 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: 40"><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 $1,637,000 and $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 year
ended December 31, 2002 and the eight months ended December 31, 2001.</font></p>

<p align="center"><font size="2" face="Times New Roman">11<hr size="1" color="#000080" STYLE="page-break-after: always">

<p align="left"><font size="1"><a href="#INDEX">Table of Contents</a></font></p>

</font>

<p><font size="2" face="Times New Roman">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;Goodwill and Other Long-Lived
Assets</font></p>

<p style="margin-left: 40"><font size="2" 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: 40"><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 three months ended March 31, 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><font size="2" face="Times New Roman">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;Long-Term Obligations</font></p>

<p style="margin-left: 40"><b><font size="2" face="Times New Roman">2001 Credit Facility</font></b></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">In July 2001, the Company entered into a new four year senior credit facility (the "Senior
Credit Facility") with a syndicate of lenders to replace the existing credit facility. As part of this agreement, the previous
credit facility was reduced with proceeds from the Senior Credit Facility and amended to provide for a $14.0 million subordinated
secured facility. The Senior Credit Facility originally consisted of an aggregate $102.0 million revolving credit facility and an
$8.0 million term loan. The revolving credit facility provides for separate and distinct loan commitment levels for the Company's
towing and recovery equipment segment and RoadOne segment, respectively. At
March 31, 2003, $31.9 million and $7.6 million,
respectively were outstanding under the towing and recovery equipment segment and RoadOne portions of the revolving credit
facility. In addition, $2.5 million was outstanding under the senior term loan, and $13.8 million was outstanding under the
subordinated secured facility.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">Availability under the revolving Senior 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's property, plant, and
equipment.&nbsp; The Company is required to make monthly amortization payments on the term loan of $167,000.&nbsp; The Senior
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 align="center"><font size="2" face="Times New Roman">12<hr size="1" color="#000080" STYLE="page-break-after: always">

<p align="left"><font size="1"><a href="#INDEX">Table of Contents</a></font></p>

</font>

<p style="margin-left: 40"><font size="2" face="Times New Roman">The Senior Credit Facility matures in July 2005 and is collateralized by substantially all
the assets of the Company. The Senior 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). In addition, the Senior Credit Facility contains restrictions on capital
expenditures, incurrence of indebtedness, mergers and acquisitions, distributions and transfers and sales of assets. The Senior
Credit Facility also contains requirements related to weekly and monthly collateral reporting.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">The subordinated credit facility (&ldquo;Junior Credit Facility&rdquo;) is by its terms
expressly subordinated only to the Senior Credit Facility. The subordinated secured facility matures on July 23, 2003 and bears
interest at 6.0% over the prime rate. The Company is required to make quarterly amortization payments on the Junior Credit Facility
of $875,000 beginning not later than May 2002 provided that certain conditions are met, including satisfying a fixed charge
coverage ratio test and a minimum availability limit. The Junior Credit 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. The Junior Credit
Facility contains requirements for certain fees to be paid at six month intervals beginning in January 2002 based on the
outstanding balance of the subordinated secured facility at the time. The Junior Credit Facility also contains provisions for the
issuance of warrants for up to 0.5% of the outstanding shares of the Company's common stock in July 2002 and up to an additional
1.5% in July, 2003. The number of warrants which may be issued would be reduced pro rata as the balance of the Junior Credit
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: 40"><font size="2" face="Times New Roman">The Junior Credit Facility contains, among other restrictions, requirements for the
maintenance of certain financial covenants and imposes restrictions on capital expenditures, incurrence of indebtedness, mergers
and acquisitions, distributions and transfers and sales of assets.</font></p>

<p style="margin-left: 40"><font size="2" color="black" face="Times New Roman">There is no assurance that the Company will be able to
repay or refinance the outstanding principal and interest under the Junior Credit Facility on the maturity date thereof.&nbsp; If
the Company fails to repay all outstanding principal, interest and any other amounts due and owing under the Junior Credit Facility
on the maturity date, such failure will constitute an event of default under the Junior Credit Facility and will also trigger an
event of default under the Senior Credit Facility cross-default provisions.&nbsp; In such case, the junior lender agent would be
prevented from taking any enforcement action against the Company, its subsidiaries or their respective assets in respect of such
event of default until the earlier of: (i) the date which is 120 days (subject to extension to 270 days by notice from senior
lender agent to junior lender agent) after the date upon which the junior lender agent gives notice of enforcement to the senior
lender agent pursuant to the terms of the Intercreditor Agreement; (ii) the acceleration of the maturity of the obligations of the
Company under the Senior Credit Facility by the senior lender agent, and (ii) the commencement of any bankruptcy, insolvency or
similar proceeding against the Company or certain of its subsidiaries.&nbsp; The resulting event of default under the Senior Credit
Facility if the Company does not repay all of the obligations under the Junior Credit Facility could result in the acceleration of
the amounts due under the Senior Credit Facility as well as other remedies if not waived by the senior lenders.&nbsp; There is no
assurance that the Company will be able to obtain such a waiver from the senior lenders or a waiver from the junior lenders of any
event of default that would occur as a result of the failure by the Company to repay or refinance the outstanding principal and
interest under the Junior Credit Facility on the maturity date.</font></p>

<p align="center"><font size="2" face="Times New Roman">13<hr size="1" color="#000080" STYLE="page-break-after: always">

<p align="left"><font size="1"><a href="#INDEX">Table of Contents</a></font></p>

</font>

<p style="margin-left: 40"><b><font size="2" face="Times New Roman">2002 Amendments</font></b></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">The Company was in an over-advance position under its credit facility during the first
quarter of 2002. On February 28, 2002 the Company entered into a Forbearance Agreement and First Amendment to its Senior Credit
Agreement with the lenders under the Senior 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
"Forbearance Agreement"). As a result of a revised asset appraisal conducted by the senior lenders, the senior lenders determined
that the amounts outstanding under the Senior Credit Facility should be lowered below the amount then outstanding under the Senior
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 Senior Credit Facility and a corresponding event of default under the Junior Credit Facility. The Forbearance
Agreement and subsequent amendments waived the Company's overadvance under the Senior 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'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: 40"><font size="2" face="Times New Roman">On April 15, 2002 the Company amended the Senior 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 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 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. 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: August 12, 2002- to $34.0 million; October 2, 2002 - to $30.0 million; March 31, 2003 - to
$27.0 million; thereafter- quarterly reductions of $3.0 million through June 30, 2005. 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 (ii)
extended the time for payment of certain scheduled amortization payments. 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.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">On September 13, 2002, the Company entered into the Third Amendment to the 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 Senior 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 Facility.</font></p>

<p align="center"><font size="2" face="Times New Roman">14<hr size="1" color="#000080" STYLE="page-break-after: always">

<p align="left"><font size="1"><a href="#INDEX">Table of Contents</a></font></p>

</font>

<p style="margin-left: 40"><font size="2" face="Times New Roman">In addition, pursuant to the Third Amendment, the amount of availability that can be
generated for used inventory 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; The Sixth Amendment (discussed below 2003 Amendments) lowered the $4.3
million limit and eliminated the further requirement for reduction to $0 after February 28, 2003.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">On November 14, 2002, the Company entered into the Fourth Amendment to the Senior 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.</font></p>

<p style="margin-left: 40"><b><font size="2" face="Times New Roman">2003 Amendments</font></b></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">On February 28, 2003, the Company entered into the Fifth Amendment to the Senior Credit
Facility.&nbsp; Pursuant to the Fifth Amendment, the date upon which the amount of certain used inventory taken in trade for
collateral purposes is reduced to $-0- was extended from February 28, 2003 to March 31, 2003.&nbsp; In addition, the Fifth
Amendment revised the RoadOne revolving commitment reducing the amount to $9.0 million at February 28, 2003 and $-0- as of March
31, 2003.&nbsp;</font></p>

<p style="margin-left: 40"><font size="2" color="black" face="Times New Roman">On April 1,</font><font size="2">2003, the Company entered into the </font>
<font size="2" color="black">Sixth Amendment to </font><font size="2">Senior Credit Facility.&nbsp; The </font> <font size="2" color=
"black">Sixth</font><font size="2"> Amendment</font><font size="2" color="black">, among other things, revised</font><font size=
"2"> the </font> <font size="2" color="black">RoadOne revolving commitment, extending
by one year the time for the reduction thereof to $-0- from March 31, 2003 to March 31,
2004.&nbsp; The amount</font><font size="2"> of availability that can be generated for<font color="black"> used inventory considered
as eligible inventory for collateral purposes was reduced to $2.7 million with no further required
reductions.&nbsp;</font></font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">Meeting the new repayment schedule for the RoadOne revolving commitments as described
above under 2002 Amendments to Senior Credit Facility and 2003 Amendments to Senior Credit Facility will require that the Company
sell its towing services businesses according to its contemplated schedule on acceptable terms. 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: 40"><font size="2" face="Times New Roman">Subsequent to April 1, 2003, the Company was in default under certain covenants under its
Senior and Junior Credit Facility agreements.&nbsp; Accordingly, amounts outstanding under these Facilities are presented as
current liabilities in the accompanying December 31, 2002 and March 31, 2003 consolidated balance sheet.&nbsp;</font><font size="2"> Waivers of such covenants typically require payment of substantial additional fees, and there can be no assurance that the
lenders will agree to any future waivers or amendments. The Company's bank facilities are collateralized by liens on all of the
Company's assets. 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.</font></p>

<p align="center"><font size="2" face="Times New Roman">15<hr size="1" color="#000080" STYLE="page-break-after: always">

<p align="left"><font size="1"><a href="#INDEX">Table of Contents</a></font></p>

</font>

<p style="margin-left: 40"><font size="2" face="Times New Roman">The Company could be required to find alternative funding sources, such as sale of assets
or other financing sources. 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's business and financial condition would be materially and adversely
affected. 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: 40"><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. As described in Note 3, in October 2002, the Company decided to sell all remaining
towing services operations. 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. 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.</font></p>

<p><font size="2" face="Times New Roman">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font><font size="2">&nbsp;Financial Instruments and Hedging Activities</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">&nbsp;SFAS No. 133
"Accounting for Derivative Instruments and Hedging Activities", 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. SFAS No. 133 requires that 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'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></p>

<p style="margin-left: 40"><font size="2" 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 expire 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; Subsequent to year end December
31, 2001, 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 be recorded in Other
Comprehensive Loss in February 2002 and reclassified to earning as interest
expense over the term of the Senior Credit Facility.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">As described in Note 8,
the subordinated secured debt facility contains provisions for the issuance of warrants of up to 0.5% of the outstanding shares of
the Company&rsquo;s common stock on July 2002 and up to an additional 1.5% in July 2003.&nbsp; The warrants were valued as of July
2001 based on the estimated relative fair value using the Black Scholes model with the following assumptions:&nbsp; risk-free rate
of 4.9% estimated life of 7 years, 72% volatility and no dividend yield.&nbsp; Accordingly, the Company has recorded a liability
and makes periodic mark to market adjustments, which are reflected in the accompanying consolidated statement of operations in
accordance with EITF Issue 00-19, &ldquo;Accounting for Derivative Financial Instruments Indexed to, and Potentially Settled in, a
Company&rsquo;s Own Stock&rdquo;.&nbsp; At March 31, 2003 and December 31, 2002, the related liability was $359,000 and $362,000,
respectively, and is included in accrued liabilities in the accompanying consolidated financial statements.</font></p>

<p align="center"><font size="2" face="Times New Roman">16<hr size="1" color="#000080" STYLE="page-break-after: always">

<p align="left"><font size="1"><a href="#INDEX">Table of Contents</a></font></p>

</font>

<p><font size="2" face="Times New Roman">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-Based Compensation</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">The Company accounts for its stock-based compensation plans under Accounting Principles
Board Opinion No. 25, "Accounting for Stock Issued to Employees". The Company has adopted the disclosure option of SFAS No. 123,
"Accounting for Stock-Based Compensation". Accordingly, no compensation cost has been recognized for stock option grants since the
options have exercise prices equal to the market value of the common stock at the date of grant.&nbsp;
There were no grants in the three months ended March 31, 2003 or 2002.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">Had compensation cost for stock option grants been determined based on the fair value at the grant dates consistent with the method prescribed by SFAS No. 123, the
Company's net loss and net loss per share would have been adjusted to the pro forma amounts indicated below:</font></p>

<div align="center">
  <center>

<table border="0" cellspacing="0" cellpadding="0" width="592" style="border-collapse: collapse" bordercolor="#111111">
<tr>
<td valign="top"><font size="2">&nbsp;</font></td>
<td colspan="3" valign="top">
<p align="center"><font size="2" face="Times New Roman">Three Months Ended</font></p>
</td>
</tr>

<tr>
<td valign="top"><font size="2">&nbsp;</font></td>
<td valign="top">

<p align="center"><u><font size="2" face="Times New Roman">March 31, 2003</font></u></p>
</td>
<td valign="top"><font size="2">&nbsp;</font></td>
<td valign="top">

<p align="center"><u><font size="2" face="Times New Roman">March 31, 2002</font></u></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">Net loss available to common stockholders, as reported</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$&nbsp; (559)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top"><font size="2">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$&nbsp; (22,047)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Add:&nbsp; Stock-based employee compensation expense<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;included in reported net loss, net of
related tax effects</font></p>
</td>
<td valign="bottom">

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

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

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deduct:&nbsp; Total stock-based employee compensation<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;expense determined under fair value
based method for all<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;awards, net of related tax effects</font></p>
</td>
<td valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">

<p align="right"><font size="2" face="Times New Roman">(82)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">

<p align="right"><font size="2" face="Times New Roman">(229)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">Net loss available to common stockholders, pro forma</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">$&nbsp; (641)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top"><font size="2">&nbsp;</font></td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">$&nbsp; (22,276)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">Loss per common share:<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted, as reported<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted, pro forma</font></p>

</td>
<td valign="bottom" style="border-top-style: solid; border-top-width: 1">

<p align="right"><font size="2" face="Times New Roman">$ (0.06)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
$ (0.07)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

</td>
<td valign="bottom"><font size="2">&nbsp;</font></td>
<td valign="bottom" style="border-top-style: solid; border-top-width: 1">

<p align="right"><font size="2" face="Times New Roman">$ (2.36)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
$ (2.38)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

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


  </center>
</div>


<p>&nbsp;</p>

<p align="center"><font size="2" face="Times New Roman">17<hr size="1" color="#000080" STYLE="page-break-after: always">

<p align="left"><font size="1"><a href="#INDEX">Table of Contents</a></font></p>

</font>

<p><font size="2" face="Times New Roman">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Commitments and Contingencies</font></p>

<p style="margin-left: 40">
<font size="2">The Company is, from time to time, a party to litigation arising
in the normal course of its business. Litigation is subject to various inherent
uncertainties, and it is possible that some of these matters could be resolved
unfavorably to the Company, which could result in substantial damages against
the Company. The Company has established accruals for matters that are probable
and reasonably estimable and maintains product liability and other insurance
that management believes to be adequate. Management believes that any liability
that may ultimately result from the resolution of these matters in excess of
available insurance coverage and accruals will not have a material adverse
effect on the consolidated financial position or results of operations of the
Company.</font></p>

<p><font size="2" face="Times New Roman">12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income Taxes</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">At December 31,
2002, the Company recorded a full valuation allowance against its net deferred
tax asset from continuing and discontinuing operations totaling approximately
$18.0 million.</font></p>

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

<p style="margin-left: 40">
<font size="2">
In April 2002, the FASB issued SFAS No. 145, &#8220;Rescission of SFAS Nos. 4, 44, and 64, Amendment of SFAS No. 13, and Technical Corrections as of April 2002.&#8221;  This Statement rescinds SFAS No. 4, &#8220;Reporting Gains and Losses from Extinguishment of Debt&#8221;, and an amendment of that Statement, SFAS No. 64, &#8220;Extinguishments of Debt Made to Satisfy Sinking-Fund Requirements&#8221;.  This Statement also rescinds SFAS No. 44, &#8220;Accounting for Intangible Assets of Motor Carriers&#8221;.  This Statement amends SFAS No. 13, &#8220;Accounting for Leases&#8221;, to eliminate an inconsistency between the required accounting for sale-leaseback transactions and the required accounting for certain lease modifications for sale-leaseback transaction and the required accounting for certain lease modifications that have economic effects that are similar to sale-leaseback transactions.  SFAS No. 145 will be effective for fiscal 2003, which begins January 1, 2002.  Management does not expect the adop
tion of this statement to have a material impact on the Company&#8217;s results of operations of financial position.&nbsp;</font></p>
<p style="margin-left: 40">
<font size="2">
FASB has issued SFAS No. 146, &#8220;Accounting for Exit or Disposal Activities&#8221;. SFAS No. 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. SFAS No. 146 supersedes Emerging Issues Task Force Issue No. 94-3, &#8220;Liability Recognition for Certain Employee Termination Benefits and Other Costs to Exit an Activity (including Certain Costs Incurred in a Restructuring)&#8221; and requires liabilities associated with exit and disposal activities to be expensed as incurred. SFAS No. 146 will be effective for exit or disposal activities of the Company that are initiated after December 31, 2002.
</font>	</p>

<p>&nbsp;</p>

<p align="center"><font size="2" face="Times New Roman">18<hr size="1" color="#000080" STYLE="page-break-after: always">

<p align="left"><font size="1"><a href="#INDEX">Table of Contents</a></font></p>

</font>

<p><b><font size="2" face="Times New Roman">Item 2.&nbsp;&nbsp;
<a name="Managements">Management's</a> Discussion and Analysis of Financial Condition and
Results of Operations</font></b></p>



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



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



<p style="margin-left: 40"><font face="Times New Roman" size="2">The Company&#146;s
financial statements have been prepared on a going concern basis, which
contemplates the realization of assets and the settlement of liabilities and
commitments in the normal course of business.&nbsp; Subsequent to December 31,
2002, the Company was in default of certain covenants under its Senior and
Junior Credit Facility Agreements, and its Junior Credit Facility matures on
July 23, 2003.&nbsp; The Senior and Junior Credit Facility Agreements contain
certain cross-default provisions and provide for acceleration on amounts due as
well as other remedies in the event of default.&nbsp; These circumstances raise
substantial doubt about the Company&#146;s ability to continue as a going
concern.</font></p>



<p style="margin-left: 40"><i><font face="Times New Roman" size="2">Discontinued
Operations</font></i></p>

<p style="margin-left: 40">
<font size="2">During
the year ended December 31, 2002, the Company&#8217;s management and its board
of directors made the decision to divest of its remaining towing services
segment, as well as the<font face="Times New Roman"> </font>operations of the distribution group of the towing and
recovery equipment segment. In accordance with SFAS No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets", the assets for the towing services
segment and the distribution group are considered a "disposal group" and the
assets are no longer being depreciated. All assets and liabilities and results
of operations associated with these assets have been separately presented in the
accompanying financial statements. The statements of operations and related
financial statement disclosures for all prior years have been restated to
present the towing services segment and the distribution group as discontinued
operations separate from continuing operations. The analyses contained herein
are of continuing operations, as restated, unless otherwise noted.</font></p>

<p><b><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <i>&nbsp;Results of
Operations--Three Months Ended March 31, 2003 Compared to Three Months Ended March&nbsp;31,&nbsp;2002</i></font></b></p>

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

<p style="margin-left: 40"><font size="2" face="Times New Roman">Net sales for
continuing operations for the three months ended March 31, 2003, decreased 14.8%
to $40.7 million from $47.8 million for the comparable period in 2002.&nbsp; Net
sales decreased as demand for the Company&#146;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; In addition, the war with
Iraq during the quarter  had a negative impact on sales.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">Costs of
operations for continuing operations for the three months ended March 31, 2003,
decreased 14.9% to $34.8 from $40.9 million for the comparable period in 2002
reflecting the aforementioned decrease in sales.&nbsp;
Costs of operations decreased slightly as a percentage of net sales from 85.6%
to 85.5%.&nbsp;</font></p>

<p style="margin-left: 40"><font size="2"> Selling, general, and administrative expenses for the three months ended March 31, 2003, decreased to $3.9 million
from $4.2 million for the three months ended March 31, 2002<font face="Times New Roman">,
reflecting the Company&#146;s ongoing focus on operating cost control.</font></font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">Net interest
expense increased $0.1 million to $0.8 million for the three months ended March
31, 2003 from $0.7 million for the three months ended March 31, 2003 due to
stable levels of debt and stable interest rates.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">The provision
for income taxes for continuing operations for the three months ended March 31,
2003 reflects a combined effective U.S. federal and state tax rate of 38%, net
of a tax benefit related to the Company's foreign tax liability.&nbsp; The
provision for the three months ended March 31, 2002 reflects a similar effective
U.S. federal and state rate plus additional taxes on foreign income for the
period.</font></p>

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

<p style="margin-left: 40"><font size="2" face="Times New Roman">Net sales from
discontinued operations decreased to $28.0 million for the three months ended
March 31, 2003 from $56.5 million for the three months ended March 31, 2002.&nbsp;
Net sales of the distribution group were $16.6 million for the three months
ended March 31, 2003 compared to $22.5 million for the three months ended March
31, 2002. Revenues for the distribution group were negatively impacted by cost
pressures facing its customers and current tightness in the credit markets.&nbsp;
Net sales for the towing and recovery services segment were $11.4 million for
the three months ended March 11, 2003 compared to $34.0 million for the three
months ended March 31, 2002.&nbsp; Revenues of the towing services segment were

affected by the Company&#146;s ongoing efforts to
sell or close discontinued operations.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">Cost of sales
as a percentage of net sales for the distribution group was 93.5% for the three
months ended March 31, 2003 compared to 92.2% for the three months ended March
31, 2002.&nbsp; The increase is primarily the result of decreases in sales
volume as explained above. Cost of sales for the towing services segment was
78.0% for the three months ended March 31, 2003 compared to 82.7% for the three
months ended March 31, 2002.&nbsp; Decreases result from the impact of the
continuing disposal of towing services operations.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">Selling,
general and administrative expenses as a percentage of sales was 6.7% for the
distribution group and 21.7% for the towing services segment for the three
months ended March 31, 2003 compared to 8.5% and 18.6% respectively, for the
three months ended March 31, 2002.&nbsp; The decrease for the distribution group
reflects the Company&#146;s ongoing focus on operating cost control.&nbsp; Increases for the towing services segment were
primarily the result of increased insurance costs for the remaining operations.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">Net interest expense of
discontinued operations decreased $0.4 million from $1.4 million for the three months ended March&nbsp;31, 2002 to $1.0 million for the
three months ended March 31, 2003 as a result of decreased borrowings under the Company&#146;s RoadOne revolving credit
facility.&nbsp;</font></p>

<p align="center"><font size="2" face="Times New Roman">19<hr size="1" color="#000080" STYLE="page-break-after: always">

<p align="left"><font size="1"><a href="#INDEX">Table of Contents</a></font></p>

</font>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b><i>&nbsp;Liquidity and
Capital Resources</i></b></font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">Cash provided
by operating activities was $0.2 million for the three months ended March 31,
2003, compared to $1.2 million for the comparable period of 2002.&nbsp; The cash
provided by operating activities for the three months ended March 31, 2003 was
primarily the result of an increase in accounts receivable and accounts payable,
partially offset by
an increase in inventories.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">Cash provided
by investing activities was $2.5 million for the three months ended March 31,
2003, compared to $0.3 million used in investing
activities for the comparable period in 2002.&nbsp; The cash provided by investing activities was primarily
due to the sale of towing
services operations.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">Cash used in
financing activities was $1.4 million for the three months ended March 31, 2003
and $4.2 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: 40"><font size="2" face="Times New Roman">The Company&#146;s
primary capital requirements are for working capital, debt service, and capital
expenditures.&nbsp; Since 1996, the Company has financed its operations and
growth from internally generated funds and debt financing.</font></p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p align="center"><font face="Times New Roman" size="2">20<hr size="1" color="#000080" STYLE="page-break-after: always">

<p align="left"><font size="1"><a href="#INDEX">Table of Contents</a></font></p>

</font>

<p><b><font size="2" face="Times New Roman">2001 Credit Facility</font></b></p>

<p style="margin-left: 40"><font size="2" color="black" face="Times New Roman">In July 2001, the Company entered into a new four year senior secured credit
facility (the &ldquo;Senior Credit Facility&rdquo;) with a syndicate of lenders to replace the existing credit facility.&nbsp; As a
part of this agreement, the previous credit facility was reduced with proceeds from the Senior Credit Facility and amended to
provide for a $14.0 million subordinated secured facility.&nbsp; The Senior Credit Facility originally consisted of an aggregate
$102.0 million revolving credit facility and an $8.0 million term loan.&nbsp; On July 25, 2001, the Company borrowed $85.0 million
under the new Senior Credit Facility ($77.0 million under the revolving credit facility and $8.0 million under the term
loan).&nbsp; Availability under the revolving Senior 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&#146;s property, plant, and equipment.&nbsp; The Company is </font>
<font size="2" face="Times New Roman">required</font><font size="2" color="black" face="Times New Roman">
to make monthly amortization payments on the term loan of $167,000.&nbsp; The
Senior Credit Facility bore 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 3.00% or prime rate (as defined) plus 1.00% on the term
portion.</font></p>

<p style="margin-left: 40"><font size="2" color="black" face="Times New Roman">
The Senior Credit Facility matures in July, 2005 and is collateralized by
substantially all the assets of the Company.&nbsp; The Senior Credit Facility
contains requirements related to maintaining minimum excess availability at all
times and minimum quarterly levels of earnings before </font>
<font size="2" face="Times New Roman">income</font><font size="2" color="black" face="Times New Roman">
taxes, depreciation and amortization (as defined) and a minimum quarterly fixed
charge coverage ratio (as defined).&nbsp; In addition, the Senior Credit
Facility contains restrictions on capital expenditures, incurrence of
indebtedness, mergers and acquisitions, distributions and transfers and sales of
assets.&nbsp; The Senior Credit Facility also contains requirements related to
weekly and monthly collateral reporting.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">The $14.0 million Junior Credit Facility is by its terms expressly subordinated only to
the Senior Credit Facility.&nbsp; The Junior Credit Facility, under which $13.8 million was outstanding at March 31, 2003, matures
on July 23, 2003 and bears interest at 6.0% over the prime rate.&nbsp; <font color="black">There can be no assurance tha</font>t<font color="black"> the
Company will be able to repay or refinance the outstanding principal and interest under the Junior Credit Facility on the maturity
date thereof.&nbsp; If the Company fails to repay all outstanding principal, interest and any other amounts due and owing under the
Junior Credit Facility on the maturity date, such failure will constitute an event of default under the Junior Credit Facility and
will also trigger an event of default under the Senior Credit Facility cross-default provisions.&nbsp; A total of $42.0 million
(continuing and discontinued operations) was outstanding under the Senior Credit Facility at March 31, 2003.&nbsp; In such case,
the junior lender agent would be prevented from taking any enforcement action against the Company, its subsidiaries or their
respective assets in respect of such event of default until the earlier of: (i) the date which is 120 days (subject to extension to
270 days by notice from senior lender agent to junior lender agent) after the date upon which the junior lender agent gives notice
of enforcement to the senior lender agent pursuant to the terms of the Intercreditor Agreement; (ii) the acceleration of the
maturity of the obligations of the Company under the Senior Credit Facility by the senior lender agent, and (ii) the commencement
of any bankruptcy, insolvency or similar proceeding against the Company or certain of its subsidiaries.&nbsp; The resulting event
of default under the Senior Credit Facility if the Company does not repay all of the obligations under the Junior Credit Facility
could result in the acceleration of the amounts due under the Senior Credit Facility as well as other remedies if not waived by the
senior lenders.&nbsp; There is no assurance that the Company will be able to obtain such a waiver from the senior lenders or a
waiver from the junior lenders of any event of default that would occur as a result of the failure by the Company to repay or
refinance the outstanding principal and interest under the Junior Credit Facility on the maturity date.</font></font></p>

<p align="center"><font face="Times New Roman" size="2">21<hr size="1" color="#000080" STYLE="page-break-after: always">

<p align="left"><font size="1"><a href="#INDEX">Table of Contents</a></font></p>

</font>

<p style="margin-left: 40"><font size="2" color="black" face="Times New Roman">
The Junior Credit Facility is secured by certain specified assets of the Company
and by a second priority lien and security interest in substantially all other
assets of the Company.&nbsp; The Junior Credit Facility contains requirements
for certain fees to be paid at six month intervals beginning in January, 2002
based on the outstanding balance of the facility at the time.&nbsp; The Junior
Credit Facility also contains provisions for the issuance of warrants for up to
0.5% of the outstanding shares of the Company&#146;s common stock in July, 2002 and
up to an additional 1.5% on July 23, 2003 with an exercise price equal to the
then fair market value of the Company&#146;s common stock.&nbsp; The number of
warrants </font><font size="2" face="Times New Roman">which</font><font size="2" color="black" face="Times New Roman">
may be issued would be reduced pro rata as the balance of the Junior Credit
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: 40"><font size="2" color="black" face="Times New Roman">
The Junior Credit Facility contains </font>
<font size="2" face="Times New Roman">requirements</font><font size="2" color="black" face="Times New Roman">
for the maintenance of certain financial covenants and imposes restrictions on
capital expenditures, incurrence of indebtedness, mergers and acquisitions,
distributions and transfers and sales of assets.</font></p>

<p style="margin-left: 40"><i><font size="2" face="Times New Roman">2002 Amendments to the Credit Facility</font></i></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">On February 28, 2002 the Company entered into a Forbearance Agreement and First Amendment
to the Senior Credit Facility with the lenders under the Senior 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 Senior Credit Facility should be lowered below
the amount then outstanding under the Senior 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 Senior 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
Senior 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: 40"><font size="2" face="Times New Roman">On April 15, 2002 the Company entered into the Second Amendment to the Senior 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 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 was scheduled to be reduced as follows:&nbsp; August 12, 2002
&ndash; to $34.0 million; October 2, 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.&nbsp; At the same time,</font> 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; 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
(the &ldquo;Intercreditor Agreement&rdquo;), 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 align="center"><font face="Times New Roman" size="2">22<hr size="1" color="#000080" STYLE="page-break-after: always">

<p align="left"><font size="1"><a href="#INDEX">Table of Contents</a></font></p>

</font>

<p style="margin-left: 40"><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 Senior 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 color="black">.</font></font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">In addition, pursuant to the Third Amendment, the amount of availability that can be
generated for used inventory considered as eligible inventory for collateral purposes was limited to $4.3 million (subject to
downward adjustments upon certain sales of assets and stock by the Company and certain of its subsidiaries) through February 28,
2003 and reduced to $0 thereafter.&nbsp; The Sixth Amendment (discussed below under 2003 Amendments) lowered the $4.3 million limit and
eliminated the further requirement for reduction to $0after February 28, 2003.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">On November 14, 2002, the Company entered into the Fourth Amendment to the Senior Credit
Facility, which granted waivers from the senior lenders of violations of certain financial covenants for the quarter ended
September 2002.&nbsp; There were no violations under the Junior Credit facility.&nbsp; The Amendment al<font color="black">s</font>o 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.&nbsp; In addition, the amendment revised the RoadOne 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.</font></p>

<p style="margin-left: 40"><i><font size="2" face="Times New Roman">2003 Amendments to Credit Facility</font></i></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">On February 28, 2003, the Company entered into the Fifth Amendment to the Senior Credit
Facility.&nbsp; Pursuant to the Fifth Amendment, the date upon which the amount of certain used inventory taken in trade for
collateral purposes is reduced to $-0- was extended from February 28, 2003 to March 31,
<font color="black">2003</font>.&nbsp; In addition, the Fifth
Amendment revised the RoadOne revolving commitment, reducing the amount to $9.0 million at February 28, 2003 and $-0- as of March
31, 2003.</font></p>

<p style="margin-left: 40"><font size="2" color="black" face="Times New Roman">On April 1,</font><font size=
"2">2003, the Company entered into the </font> <font size="2" color="black">Sixth Amendment to</font><font size="2"> the Senior Credit Facility.&nbsp; The </font> <font size="2" color=
"black">Sixth</font><font size="2"> Amendment</font><font size="2" color="black">,
among other things, revised </font><font size="2">the </font> <font size="2" color="black">RoadOne revolving commitment, extending the time for the reduction thereof to $9.0 million
from March 31, 2003 to March 31, 2004 and extending the time for reduction to $-0- from March 31, 2003 to March 31, 2004.&nbsp; The
amount</font><font size="2"> of availability that can be generated for </font> <font
size="2" color="black">used inventory considered <font face="Times New Roman">as</font> eligible inventory for collateral purposes was reduced to $2.7 million with no further required reductions.&nbsp; The Sixth
Amendment also extended the time for required delivery of the Company&rsquo;s annual </font><font size=
"2">financial </font> <font size="2" color="black">reports for fiscal year ended </font><font size="2">December 31, 2002 and </font> <font size="2" color="black">certain related items
from March 31, 2003 to April 30, 2003.</font></p>

<p align="center"><font face="Times New Roman" size="2">23<hr size="1" color="#000080" STYLE="page-break-after: always">

<p align="left"><font size="1"><a href="#INDEX">Table of Contents</a></font></p>

</font>

<p style="margin-left: 40"><font size="2" face="Times New Roman">Meeting the new repayment schedule <font color="black">for the RoadOne revolving
commitments as described above under Amendments to the Credit Facilities,</font> 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: 40"><font size="2" face="Times New Roman">The Company is currently in default under both the Senior and Junior Credit Facility as a
result of the &ldquo;going concern&rdquo; explanatory paragraph included in the auditors&rsquo; report as well as the failure to
file this Annual Report prior to April 30, 2003.&nbsp; Additionally, the Company is in default of the EBITDA covenant under the
Junior Credit Facility only for the first quarter of calendar 2003.&nbsp; The Company is currently not pursuing a waiver of the default
or an amendment to the Credit Facilities to cure the default.&nbsp; The Company has had informal discussions with its creditors
indicating that the creditors will not take action against the Company as a result of the default.&nbsp; However, there can be no
assurance that to the creditors will not pursue action in the future as a result of this default or any other default under the Credit
Facilities.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">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 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 Senior 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 Senior Credit Facility on acceptable terms or find an alternative source
of repayment for the Senior 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 accepted to the Company or at all.&nbsp; If the Company is not successful in its efforts to refinance
or extend the maturity date of the Junior Credit Facility, the Company would likely be required to seek bankruptcy court or other
protection from its creditors.</font></p>

<p style="margin-left: 40"><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 $5.0 million of mortgage
notes payable, equipment notes payable and other long-term obligations at March 31, 2003.&nbsp; The Company also had approximately
$18.2&nbsp; million in non-cancellable operating lease obligations, $17.6
million of which relates to truck and building leases of discontinued operations.&nbsp;</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">Certain
statements in this Form 10-Q, including but not limited to &#147;Management&#146;s
Discussion and Analysis of Financial Condition and Results of Operations,&#148; 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&#146;s belief as well as assumptions made by, and information
currently available to, management pursuant to &#147;safe harbor&#148; provisions of the
Private Securities Litigation Reform Act of 1995.&nbsp; The Company&#146;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 &#147;Risk Factors&#148; in the
Company&#146;s Annual Report on Form 10-K, filed on May 22, 2003, 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&#146;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>

<p align="center"><font face="Times New Roman" size="2">24<hr size="1" color="#000080" STYLE="page-break-after: always">

<p align="left"><font size="1"><a href="#INDEX">Table of Contents</a></font></p>

</font>

<p><b><font size="2" face="Times New Roman">Item 4.&nbsp;&nbsp;
<a name="Controls">Controls</a> and Procedures</font></b></p>

<p style="margin-left: 40"><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&#146;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&#146;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: 40"><font size="2" face="Times New Roman">There were no
significant changes in the Company&#146;s internal controls or in other factors that
could significantly affect internal controls subsequent to the date of this
evaluation.</font></p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p align="center"><font face="Times New Roman" size="2">25<hr size="1" color="#000080" STYLE="page-break-after: always">

<p align="left"><font size="1"><a href="#INDEX">Table of Contents</a></font></p>

</font>

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

<p><b><font size="2" face="Times New Roman">Item 1.&nbsp;&nbsp; <a name="Legal">Legal</a> Proceedings</font></b></p>

<p style="margin-left: 40">
<font size="2">The Company is, from time to time, a party to litigation arising
in the normal course of its business. Litigation is subject to various inherent
uncertainties, and it is possible that some of these matters could be resolved
unfavorably to the Company, which could result in substantial damages against
the Company. The Company has established accruals for matters that are probable
and reasonably estimable and maintains product liability and other insurance
that management believes to be adequate. Management believes that any liability
that may ultimately result from the resolution of these matters in excess of
available insurance coverage and accruals will not have a material adverse
effect on the consolidated financial position or results of operations of the
Company.</font></p>

<p><b><font size="2" face="Times New Roman">Item 6.&nbsp;&nbsp;
<a name="Exhibits">Exhibits</a> and Reports on Form
8-K</font></b></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exhibits.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Reports on Form 8-K &ndash; No reports on
Form 8-K were filed by the Registrant during the three months ended March&nbsp;31, 2003.</font></p>

<p>&nbsp;</p>

<p align="center"><font face="Times New Roman" size="2">26<hr size="1" color="#000080" STYLE="page-break-after: always">

<p align="left"><font size="1"><a href="#INDEX">Table of Contents</a></font></p>

</font>

&nbsp;<p align="center"><b><font size="2" face="Times New Roman">
<a name="SIGNATURES">SIGNATURES</a></font></b></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pursuant to the
requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, Miller Industries, Inc. has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.</font></p>

<p>&nbsp;</p>

<table border="0" cellspacing="0" cellpadding="0" width="652">
<tr>
<td valign="top" width="355"><font size="2">&nbsp;</font></td>
<td valign="top" width="297">
<p><font size="2" face="Times New Roman">MILLER INDUSTRIES, INC.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="355"><font size="2">&nbsp;</font></td>
<td valign="top" width="297"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="355"><font size="2">&nbsp;</font></td>
<td valign="top" width="297"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="355"><font size="2">&nbsp;</font></td>
<td valign="top" width="297">
<p><font size="2" face="Times New Roman">By<u><font color="blue">:&nbsp;&nbsp;&nbsp;<b><i>/s/
J. Vincent Mish&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</i></b></font></u></font></p>
</td>
</tr>

<tr>
<td valign="top" width="355"><font size="2">&nbsp;</font></td>
<td valign="top" width="297">
<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="355"><font size="2">&nbsp;</font></td>
<td valign="top" width="297">
<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="355"><font size="2">&nbsp;</font></td>
<td valign="top" width="297">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer</font></p>
</td>
</tr>
</table>

<p>&nbsp;</p>

<p><font size="2" face="Times New Roman">Date:&nbsp;&nbsp;&nbsp; May&nbsp;&nbsp;22, 2003</font></p>

<p>&nbsp;</p>


<p align="center"><font face="Times New Roman" size="2">27<hr size="1" color="#000080" STYLE="page-break-after: always">

<p align="left"><font size="1"><a href="#INDEX">Table of Contents</a></font></p>

</font>


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

<p>&nbsp;</p>

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

<ol style="font-family: Times New Roman; font-size: 10pt">
  <li><font size="2" face="Times New Roman">I have reviewed this quarterly
  report on Form 10-Q of Miller Industries, Inc.<br>
&nbsp;</font></li>
  <li><font size="2" face="Times New Roman">Based on my knowledge, this
  quarterly report does not contain any untrue statement of 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;<br>
&nbsp;</font></li>
  <li><font size="2" face="Times New Roman">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;<br>
&nbsp;</font></li>
  <li><font size="2" face="Times New Roman">The registrant&#146;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></li>
</ol>
<blockquote>
  <ol style="font-family: Times New Roman; font-size: 10pt" type="a">
    <li><font size="2" face="Times New Roman">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 entitles, particularly during the period in which this
    quarterly report is being prepared;<br>
&nbsp;</font></li>
    <li><font size="2" face="Times New Roman">evaluated the effectiveness of the
    registrant&#146;s disclosure controls and procedures as of a date within 90 days
    prior to the filing date of this quarterly report (the &#147;Evaluation Date&#148;);
    and<br>
&nbsp;</font></li>
    <li><font size="2" face="Times New Roman">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></li>
  </ol>
</blockquote>
<ol style="font-family: Times New Roman; font-size: 10pt" start="5">
  <li><font size="2" face="Times New Roman">The registrant&#146;s other certifying
  officers and I have disclosed, based on our most recent evaluation, to the
  registrant&#146;s auditors and the audit committee of registrant&#146;s board of
  directors (or persons performing the equivalent function):</font></li>
</ol>
<blockquote>
  <ol style="font-family: Times New Roman; font-size: 10pt" type="a">
    <li><font size="2" face="Times New Roman">&nbsp;all significant deficiencies
    in the design or operation of internal controls which could adversely affect
    the registrant&#146;s ability to record, process, summarize and report financial
    data and have identified for the registrant&#146;s auditors any material
    weaknesses in internal controls; and<br>
&nbsp;</font></li>
    <li><font size="2" face="Times New Roman">any fraud, whether or not
    material, that involves management or other employees who have a significant
    role in the registrant&#146;s internal controls; and</font></li>
  </ol>
</blockquote>
<ol style="font-family: Times New Roman; font-size: 10pt" start="6">
  <li><font size="2" face="Times New Roman">The registrant&#146;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 weaknesses.&nbsp;</font></li>
</ol>

<p><font size="2" face="Times New Roman">Date:&nbsp;&nbsp;&nbsp; May 22, 2003</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="562">
<tr>
<td valign="top" width="310"><font size="2">&nbsp;</font></td>
<td valign="top" width="252">
<p><u><font size="2" face="Times New Roman">/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;</font></u></p>
</td>
</tr>

<tr>
<td valign="top" width="310"><font size="2">&nbsp;</font></td>
<td valign="top" width="252">
<p><font size="2" face="Times New Roman">Jeffrey I. Badgley<br>
President and Chief Executive Officer</font></p>

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

<p align="center"><font face="Times New Roman" size="2">28<hr size="1" color="#000080" STYLE="page-break-after: always">

<p align="left"><font size="1"><a href="#INDEX">Table of Contents</a></font></p>

</font>


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

<p>&nbsp;</p>

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

<ol style="font-family: Times New Roman; font-size: 10pt">
  <li><font size="2" face="Times New Roman">I have reviewed this quarterly
  report on Form 10-Q of Miller Industries, Inc.<br>
&nbsp;</font></li>
  <li><font size="2" face="Times New Roman">Based on my knowledge, this
  quarterly report does not contain any untrue statement of 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;<br>
&nbsp;</font></li>
  <li><font size="2" face="Times New Roman">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;<br>
&nbsp;</font></li>
  <li><font size="2" face="Times New Roman">The registrant&#146;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></li>
</ol>
<blockquote>
  <ol style="font-family: Times New Roman; font-size: 10pt" type="a">
    <li><font size="2" face="Times New Roman">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 entitles, particularly during the period in which this
    quarterly report is being prepared;<br>
&nbsp;</font></li>
    <li><font size="2" face="Times New Roman">evaluated the effectiveness of the
    registrant&#146;s disclosure controls and procedures as of a date within 90 days
    prior to the filing date of this quarterly report (the &#147;Evaluation Date&#148;);
    and<br>
&nbsp;</font></li>
    <li><font size="2" face="Times New Roman">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></li>
  </ol>
</blockquote>
<ol style="font-family: Times New Roman; font-size: 10pt" start="5">
  <li><font size="2" face="Times New Roman">The registrant&#146;s other certifying
  officers and I have disclosed, based on our most recent evaluation, to the
  registrant&#146;s auditors and the audit committee of registrant&#146;s board of
  directors (or persons performing the equivalent function):</font></li>
</ol>
<blockquote>
  <ol style="font-family: Times New Roman; font-size: 10pt" type="a">
    <li><font size="2" face="Times New Roman">&nbsp;all significant deficiencies
    in the design or operation of internal controls which could adversely affect
    the registrant&#146;s ability to record, process, summarize and report financial
    data and have identified for the registrant&#146;s auditors any material
    weaknesses in internal controls; and<br>
&nbsp;</font></li>
    <li><font size="2" face="Times New Roman">any fraud, whether or not
    material, that involves management or other employees who have a significant
    role in the registrant&#146;s internal controls; and</font></li>
  </ol>
</blockquote>
<ol style="font-family: Times New Roman; font-size: 10pt" start="6">
  <li><font size="2" face="Times New Roman">The registrant&#146;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 weaknesses.&nbsp;</font></li>
</ol>

<p><font size="2" face="Times New Roman">Date:&nbsp;&nbsp;&nbsp; May 22, 2003</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="626">
<tr>
<td valign="top" width="310"><font size="2">&nbsp;</font></td>
<td valign="top" width="316">
<p><u><font size="2" face="Times New Roman">/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;</font></u></p>
</td>
</tr>

<tr>
<td valign="top" width="310"><font size="2">&nbsp;</font></td>
<td valign="top" width="316">
<p><font size="2" face="Times New Roman">J. Vincent Mish<br>
Executive Vice President and Chief Financial Officer</font></p>

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

<p align="center"><font face="Times New Roman" size="2">29</font></body></html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>badgleycert.htm
<DESCRIPTION>CERTIFICATION
<TEXT>
<p align="center"><b>CERTIFICATION
<html>

<head>
<meta name="GENERATOR" content="Microsoft FrontPage 5.0">
<meta name="ProgId" content="FrontPage.Editor.Document">
<title>EXHIBIT 99</title>
</head>

<body>

</b>

</p>

<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&nbsp; Report on Form 10-Q of the Company
for the quarterly period ended March 31, 2003&nbsp; (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: May 22, 2003</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>

<head>
<meta name="GENERATOR" content="Microsoft FrontPage 5.0">
<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"><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 March 31, 2003 (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: May 22, 2003</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>

</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>5
<FILENAME>millerlogo.gif
<DESCRIPTION>LOGO
<TEXT>
begin 644 millerlogo.gif
M1TE&.#=AG``V`'<``"'^&E-O9G1W87)E.B!-:6-R;W-O9G0@3V9F:6-E`"P`
M````G``V`(0````1$1$B(B(S,S-$1$15555F9F9W=W>(B(B9F9FJJJJ[N[O,
MS,S=W=WN[N[___\!`@,!`@,!`@,!`@,!`@,!`@,!`@,!`@,!`@,!`@,!`@,!
M`@,!`@,!`@,!`@,!`@,$__#)2:N]..O-N_]@>"T!$)2G*1@.Y2C(D3`7@Q0$
M42!MY1B&0G`H%"(P!(%2,%@*$I6$L[DD<!S8K+:G&:2^@8-D<<@1#C3,`<!N
MN]F+!X/P9AL:$FF=7>`^%GMU!A8,@6QX%`.&8A8+BH9O`FD6#9!->Y(7#@D*
M"7I[!9``!@*B`8AY!R6&`18&A@,5E89Q%0BB@;45:[B!"AN%O<)UK;*B%JM[
M1Q2\F!;-PVP"%Z6L!]5[?HV&5@S)T6U0%9#3%,&!J!+8=8P3@-;?;[_FHC2W
M@<MJAFFO@0$(=`P5,":P0JA`L>CMJQ#O#90$AO))Z!>H',4Z`S,\(C;AXILT
M#?_;#*)PSQ?#B+M8V1+5`MJ;=A)"MEDF$T!"389&/ECGIMB#C77F37#0H*C1
MHQ7>H:O`TPW,!S4!6/EI2-P847C.[=%I00$M"5K?Z*RI#<3!/3?!0IKT1Q24
M68'\>'R3<*X;JQ8"<I3@TDTMI76FNAM@IG".=`\@X7U@5UH%O7$?]&V3-K'B
MF)`04\@YH2D;GV?K+(9<IX)70]IJ/A65T#,;B8"S/3B-,`/M.FG"NM$)R8\#
M2%P?D'8C^*JA=!`A_8K]QL]P-QD3`)E.W0!;@_XZ?FU;FR0D70\<U)3(V%"Y
M"<_=M&AL<YQR$2X639`)NFH%H*4I)(^\&>5045;\9HC_4`_L%PA\%-SVD5J!
M\(8:!7!M]1@W266F'X`/E"0;>L`AR*$S$RTT&X7,?!>??12$1M=]N+C&QXDB
M(BB@,O-E)X&*=S$%212]N8</C.#X=:%Y'N9QG'%[M-/C!+KMQF(@Q8WXX`0:
M[L')`@HH@*667()'E7Q%XD?9!#BVD09S;43)'@`$SK@'@<+!\F1W'[BY(8(1
M.C0!D3>B6*.-5"ZYIY\2B$(>!U6N6.1D;/2@H%.#\H<D*',&9IJ%%$2EV08N
M`K"8"#()5N8A$CS:1D9DFCA!GO),2.>'('[`:D]%RC%@I'6<-RJ;)QF2DJ]`
MBM9502`P^F*1H_IDH)Z%`CN!_ZFGZA@(JD9.V>L>#&!1%%$-$%565->)0&R<
M2W%'*07IP0&AJA.(F28&3?8"4[R?U;JL&VG825RJN02;GW:`2J!OCAB@B0M,
M:QX:`@$HF.#P>0F@T'`)0H%A`@J7?N%P"<$),/'&U!:X\<@!E.4"0$ZDK'(?
MZ*KLQ*:UQBSSS#37;//-..>L\\X\]^SSST`'+?301!=M]-%()ZWTTDPW[?33
M4$<M]=08F&RTU4!;?0U;23@:`%L&!.#Q"A9$7(LW3RFP2I01CRTV3&*++4`!
MB"7A0MQCPTF1PA^0(!$"`<PCWJ']!.X*`&R5,A)$;(4B-AN5W3)/(5P)F,0H
M"7K\6?\8_:70'@6EG'C""01Z%0##`'@)`B`PK5',;T_1<;JZ%+R2>*,B@Q<*
M'@XH`I[D:G'EU3(>7Z#(!9_O!(`?H?\7,KH`X%%)<*L#T#H;;UE/3T*%J)DZ
MZ"\RGF+TP7LW.>;/VM1"`^$JC_Q-NR<"0'Q1CL_(`C!WP'J))H2G_01KT(4"
M$&,[T!$F>N)+%2)^4YPUG*]RE(%39^9G`1,D(`;]`]^Z3D>8RBBE`.WKV__X
M8CU/50(F\<M``3LS@$(4`"*Z(U^AT@(\6P6'`=AX'E60UY/K'.\_;[``X-H@
M01%>3SRG&&&<L%:>Q,6"#FMHG`P9:+[R$:(?FFG>.`2@`$7_2%"+#ZC$5+"F
M`#J<1P3[`^#R;K$&%,HP/(<##Q-L1;L^(0(07*EA&O,@&`=:X(?CB(5XWB@!
M0/JO?F1J!QA#L$?)+$]Y2KQ%/@3@/2=*("!2E!X=V`*(J:Q!(FL0!QU4M\@9
M2N`6(0,C%3'@,=YED$E,I$`CU]"">\"D$E]S9'!6J`[NU?$!*JI?"92`NU5!
M;IC&HV`@:Y0.0^J+*\EY!%=.Z(%9RK`43S'0*6S1PA2AR@#=!"`3!C``A37@
M$0-0G2/80(!-%:`RZD!5`@:`PK0X8)Q-&,!BALBYNSTE`X[`"P(&T(-Y'JJ,
B`[@#U:"&@$\M]*$S:\`9(4K1F<6R"J(8S:A&-PJ""```.S\_
`
end

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