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<SEC-DOCUMENT>0001107049-03-000400.txt : 20030819
<SEC-HEADER>0001107049-03-000400.hdr.sgml : 20030819
<ACCEPTANCE-DATETIME>20030819170443
ACCESSION NUMBER:		0001107049-03-000400
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		6
CONFORMED PERIOD OF REPORT:	20030630
FILED AS OF DATE:		20030819

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:		03856292

	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>miller630_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 June 30, 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
July 31, 2003 was 9,341,436.</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 align="center"><img border="0" src="logo.gif" width="156" height="54"></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="#FINANCIAL">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="#FINANCIAL">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="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="475" 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="67">
<p><font size="2" face="Times New Roman"><a href="#Financial Statements">Item 1.</a></font></p>
</td>
<td valign="top" width="475">
<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="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="475" 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="67"><font size="2">&nbsp;</font></td>
<td valign="top" width="475">
<p><font size="2" face="Times New Roman"><font color="black">
<a href="#BALANCE SHEETS">Condensed Consolidated
Balance Sheets</a></font> - June 30, 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="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="475" 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="67"><font size="2">&nbsp;</font></td>
<td valign="top" width="475">
<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="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="475" bgcolor="#FFFFFF">
<p><font size="2" face="Times New Roman">for the Three Months and Six Months Ended
June 30,
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="67"><font size="2">&nbsp;</font></td>
<td valign="top" width="475"><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="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="475" 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="67"><font size="2">&nbsp;</font></td>
<td valign="top" width="475">
<p><font size="2" face="Times New Roman">for the Six&nbsp; Months Ended June 30,
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="67" bgcolor="#FFFFFF"><font size="2">&nbsp; </font></td>
<td valign="top" width="475" 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="67"><font size="2">&nbsp;</font></td>
<td valign="top" width="475">
<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="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="475" 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="67">
<p><font size="2" face="Times New Roman"><a href="#MD&A">Item 2.</a></font></p>
</td>
<td valign="top" width="475">
<p><font size="2" face="Times New Roman"><font color="black">
<a href="#MD&A">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>
14</font></p>
</td>
</tr>

<tr>
<td valign="top" width="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="475" 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="67">
<p><font size="2" face="Times New Roman"><a href="#Controls">Item 4.</a></font></p>
</td>
<td valign="top" width="475">
<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">20</font></p>
</td>
</tr>

<tr>
<td valign="top" width="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="475" 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="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="475" 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="67">
<p><font size="2" face="Times New Roman"><a href="#Legal">Item 1.</a></font></p>
</td>
<td valign="top" width="475">
<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">22</font></p>
</td>
</tr>

<tr>
<td valign="top" width="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="475" 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="67">
<p><font size="2" face="Times New Roman"><a href="#Exhibits">Item 6.</a></font></p>
</td>
<td valign="top" width="475">
<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">22</font></p>
</td>
</tr>

<tr>
<td valign="top" width="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="475" 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">23</font></p>
</td>
</tr>

<tr>
<td valign="top" width="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="67" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="475" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="71" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
</tr>

</table>


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


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

<p><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<br>
</font>
<font size="2" face="Times
New Roman">CONSOLIDATED <a name="BALANCE SHEETS">BALANCE SHEETS</a></font></b></p>

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

<table border="0" cellspacing="0" cellpadding="0" width="683" style="border-collapse: collapse" bordercolor="#111111" bgcolor="#FFF3CE">
<tr>
<td valign="top" width="496"><font size="2">&nbsp; </font></td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><b><font face="Times New Roman" size="2">June 30,<br>
2003</font></b></p>

</td>
<td valign="top" width="18"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" 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="496" bgcolor="#FFFFFF">
<p><b><font size="2" face="Times New Roman">ASSETS</font></b></p>
</td>
<td valign="top" width="10" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFFFFF">
<font size="2">&nbsp;</font></td>
<td valign="top" width="18" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" 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="496"><font size="2">&nbsp;</font></td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2"><font size="2">&nbsp;</font></td>
<td valign="top" width="18"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" colspan="2"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="496" bgcolor="#FFFFFF">
<p><b><font size="2" face="Times New Roman">CURRENT ASSETS:</font></b></p>
</td>
<td valign="top" width="10" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="18" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" colspan="2" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="496">
<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="10"><font size="2">&nbsp;</font></td>
<td valign="top" width="11">
<p align="left"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="62">
<p align="right"><font size="2" face="Times New Roman">3,793&nbsp;</font></td>
<td valign="top" width="18"><font size="2">&nbsp;</font></td>
<td valign="top" width="24">
<p align="left"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="62">
<p align="right"><font size="2" face="Times New Roman">2,097&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="496" 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="10" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">42,113&nbsp;</font></p>
</td>
<td valign="top" width="18" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" 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="496">
<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="10"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2">
<p align="right"><font size="2" face="Times New Roman">34,399&nbsp;</font></p>
</td>
<td valign="top" width="18"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" colspan="2">
<p align="right"><font size="2" face="Times New Roman">27,815&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="496" 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="10" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2" bgcolor="#FFFFFF">
<p align="right"><font face="Times New Roman" size="2">1,879&nbsp;</font></p>
</td>
<td valign="top" width="18" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" 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="496">
<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="10"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">27,208&nbsp;</font></p>
</td>
<td valign="top" width="18"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" 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="496" 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="10" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFFFFF">
<p align="right"><font face="Times New Roman" size="2">109,392&nbsp;</font></p>
</td>
<td valign="top" width="18" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" 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="496">
<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="10"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2">
<p align="right"><font face="Times New Roman" size="2">22,435&nbsp;</font></p>
</td>
<td valign="top" width="18"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" colspan="2">
<p align="right"><font size="2" face="Times New Roman">23,121&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="496" 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="10" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">11,619&nbsp;</font></p>
</td>
<td valign="top" width="18" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" 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="496">
<p><b><font size="2" face="Times New Roman">OTHER ASSETS</font></b><font size="2">, net</font></p>
</td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2">
<p align="right"><font size="2" face="Times New Roman">2,757&nbsp;</font></p>
</td>
<td valign="top" width="18"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" colspan="2">
<p align="right"><font size="2" face="Times New Roman">2,378&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="496" 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="10" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">10,251&nbsp;</font></p>
</td>
<td valign="top" width="18" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" 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="496"><font size="2">&nbsp;</font></td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" width="11" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="left"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="62" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">156,454&nbsp;</font></td>
<td valign="top" width="18"><font size="2">&nbsp;</font></td>
<td valign="top" width="24" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="left"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="62" 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="496" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="10" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="18" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" colspan="2" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="496">
<p><b><font size="2" face="Times New Roman">LIABILITIES AND SHAREHOLDERS&rsquo; EQUITY</font></b></p>
</td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2"><font size="2">&nbsp;</font></td>
<td valign="top" width="18"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" colspan="2"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="496" bgcolor="#FFFFFF">
<p><b><font size="2" face="Times New Roman">CURRENT LIABILITIES:</font></b></p>
</td>
<td valign="top" width="10" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="18" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" colspan="2" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="496">
<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="10"><font size="2">&nbsp;</font></td>
<td valign="top" width="11">
<p align="left"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="62">
<p align="right"><font size="2" face="Times New Roman">36,243&nbsp;</font></td>
<td valign="top" width="18"><font size="2">&nbsp;</font></td>
<td valign="top" width="24">
<p align="left"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="62">
<p align="right"><font size="2" face="Times New Roman">35,244&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="496" 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="10" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">29,341&nbsp;</font></p>
</td>
<td valign="top" width="18" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" 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="496">
<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="10"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2">
<p align="right"><font size="2" face="Times New Roman">6,384&nbsp;</font></p>
</td>
<td valign="top" width="18"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" colspan="2">
<p align="right"><font size="2" face="Times New Roman">6,147&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="496" 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="10" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">41,714&nbsp;</font></p>
</td>
<td valign="top" width="18" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" 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="496"><font size="2">&nbsp;</font></td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2" style="border-top-style: solid; border-top-width: 1"><font size="2">&nbsp;</font></td>
<td valign="top" width="18"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" colspan="2" style="border-top-style: solid; border-top-width: 1"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="496" 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="10" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">113,682&nbsp;</font></p>
</td>
<td valign="top" width="18" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" 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="496"><font size="2">&nbsp;</font></td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2" style="border-top-style: solid; border-top-width: 1"><font size="2">&nbsp;</font></td>
<td valign="top" width="18"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" colspan="2" style="border-top-style: solid; border-top-width: 1"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="496" 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="10" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">816&nbsp;</font></p>
</td>
<td valign="top" width="18" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" 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="496">
<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="10"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="73" 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">1,212&nbsp;</font></p>
</td>
<td valign="bottom" width="18"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="86" 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="496" bgcolor="#FFFFFF">
<p><b><font size="2" face="Times New Roman">COMMITMENTS AND CONTINGENCIES</font></b><font size="2"> (Notes
7and 11)</font></p>
</td>
<td valign="top" width="10" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="18" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" 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="496">
<p><b><font size="2" face="Times New Roman">SHAREHOLDERS&rsquo; EQUITY</font></b><font size="2">:</font></p>
</td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2"><font size="2">&nbsp;</font></td>
<td valign="top" width="18"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" colspan="2"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="496" 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="10" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman"><br />
 0&nbsp;</font></p>
</td>
<td valign="top" width="18" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" 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="496">
<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
 June 30, 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="10"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2">
<p align="right"><font size="2" face="Times New Roman"><br />
<br />
 93&nbsp;</font></p>
</td>
<td valign="top" width="18"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" 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="496" 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="10" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">145,088&nbsp;</font></p>
</td>
<td valign="top" width="18" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" 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="496">
<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="10"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2">
<p align="right"><font size="2" face="Times New Roman">(104,843)</font></p>
</td>
<td valign="top" width="18"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" colspan="2">
<p align="right"><font size="2" face="Times New Roman">(103,790)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="496" 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="10" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFFFFF">
<p align="right"><font face="Times New Roman" size="2">406&nbsp;</font></p>
</td>
<td valign="top" width="18" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" 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="496">
<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="10"><font size="2">&nbsp;</font></td>
<td valign="top" width="73" 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">40,744&nbsp;</font></p>
</td>
<td valign="top" width="18"><font size="2">&nbsp;</font></td>
<td valign="top" width="86" 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="496" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="10" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="11" 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">$</font></p>
</td>
<td valign="top" width="62" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">156,454&nbsp;</font></td>
<td valign="top" width="18" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
<td valign="top" width="24" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" bgcolor="#FFFFFF">
<p align="left"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="62" 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>


<p align="center"><font face="Times New Roman" size="2">3<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">MILLER INDUSTRIES, INC. AND SUBSIDIARIES<br>
CONSOLIDATED <a name="STATEMENTS OF OPERATIONS">STATEMENTS OF</a></font></b><a name="STATEMENTS OF OPERATIONS"> <font size="2" face="Times New
Roman"><b>OPERATIONS</b></font></a></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="643" style="border-collapse: collapse" bordercolor="#111111">
<tr>
<td valign="top" width="374" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td colspan="4" valign="top" width="132" 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 />
 June 30</font></b></p>
</td>
<td colspan="4" valign="top" width="137" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="center"><b><font size="2" face="Times New Roman">Six Months Ended<br />
 June 30</font></b></p>
</td>
</tr>

<tr>
<td valign="top" width="374"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="69" 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" colspan="2" width="63" 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>
<td valign="top" colspan="2" width="65" 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" colspan="2" width="72" 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="374" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="69" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="63" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="65" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="72" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="374">
<p><b><font size="2" face="Times New Roman">NET SALES:</font></b></p>
</td>
<td valign="top" colspan="2" width="69"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="63"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="65"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="72"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="374" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Towing and Recovery Equipment</font></p>
</td>
<td valign="top" align="right" width="11" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top" align="right" width="58" bgcolor="#FFF3CE">
<b><font size="2" face="Times New Roman">&nbsp;51,161&nbsp;</font></b></td>
<td valign="top" align="right" width="17" bgcolor="#FFF3CE">
<p><font face="Times New Roman" size="2">$</font></p>
</td>
<td valign="top" align="right" width="46" bgcolor="#FFF3CE">
<font size="2" face="Times New Roman">54,159&nbsp;</font></td>
<td valign="top" align="right" width="17" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top" align="right" width="48" bgcolor="#FFF3CE">
<b><font size="2" face="Times New Roman">91,903&nbsp;</font></b></td>
<td valign="top" align="right" width="17" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" align="right" width="55" bgcolor="#FFF3CE">
<font size="2" face="Times New Roman">101,964&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="374">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Towing Services</font></p>
</td>
<td valign="top" colspan="2" align="right" width="69" style="border-bottom-style: solid; border-bottom-width: 1">
<p><b><font size="2" face="Times New Roman">&nbsp;6,801&nbsp;</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="63" style="border-bottom-style: solid; border-bottom-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;
7,028&nbsp;</font></p>
</td>
<td valign="top" colspan="2" align="right" width="65" style="border-bottom-style: solid; border-bottom-width: 1">
<p><b><font size="2" face="Times New Roman">&nbsp;&nbsp;
13,952&nbsp;</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="72" style="border-bottom-style: solid; border-bottom-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;14,650&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="right" width="69" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">&nbsp;57,962&nbsp;</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="63" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;61,187&nbsp;</font></p>
</td>
<td valign="top" colspan="2" align="right" width="65" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">&nbsp;
105,855&nbsp;</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="72" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">116,614&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="right" width="69" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="right" width="63" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="right" width="65" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="right" width="72" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="374" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">COSTS AND EXPENSES:</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="69" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="right" width="63" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="right" width="65" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="right" width="72" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
</tr>

<tr height="11">
<td height="11" valign="top" width="374">
<p style="margin-top: 10"><b><font size="2" face="Times New Roman">Costs of operations</font></b></p>
</td>
<td height="11" valign="top" colspan="2" align="right" width="69">
<font size="2">&nbsp;</font></td>
<td height="11" valign="top" colspan="2" align="right" width="63">
<font size="2">&nbsp;</font></td>
<td height="11" valign="top" colspan="2" align="right" width="65">
<font size="2">&nbsp;</font></td>
<td height="11" valign="top" colspan="2" align="right" width="72">
<font size="2">&nbsp;</font></td>
</tr>

<tr height="11">
<td height="11" valign="top" width="374" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Towing and Recovery Equipment</font></p>
</td>
<td height="11" valign="top" colspan="2" align="right" width="69" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">&nbsp;44,234&nbsp;</font></b></p>
</td>
<td height="11" valign="top" colspan="2" align="right" width="63" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">46,497&nbsp;</font></p>
</td>
<td height="11" valign="top" colspan="2" align="right" width="65" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New
Roman">&nbsp; 79,050&nbsp;</font></b></p>
</td>
<td height="11" valign="top" colspan="2" align="right" width="72" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;87,408&nbsp;</font></p>
</td>
</tr>

<tr height="11">
<td height="11" valign="top" width="374">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Towing Services</font></p>
</td>
<td height="11" valign="top" colspan="2" align="right" width="69" style="border-bottom-style: solid; border-bottom-width: 1">
<p><b><font size="2" face="Times New Roman">&nbsp;
5,188&nbsp;</font></b></p>
</td>
<td height="11" valign="top" colspan="2" align="right" width="63" style="border-bottom-style: solid; border-bottom-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;5,576&nbsp;</font></p>
</td>
<td height="11" valign="top" colspan="2" align="right" width="65" style="border-bottom-style: solid; border-bottom-width: 1">
<p><b><font size="2" face="Times New
Roman">&nbsp; 10,618&nbsp;</font></b></p>
</td>
<td height="11" valign="top" colspan="2" align="right" width="72" style="border-bottom-style: solid; border-bottom-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;11,198&nbsp;</font></p>
</td>
</tr>

<tr height="11">
<td height="11" valign="top" width="374" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td height="11" valign="top" colspan="2" align="right" width="69" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">&nbsp;49,422&nbsp;</font></b></p>
</td>
<td height="11" valign="top" colspan="2" align="right" width="63" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">52,073&nbsp;</font></p>
</td>
<td height="11" valign="top" colspan="2" align="right" width="65" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New
Roman">&nbsp; 89,668&nbsp;</font></b></p>
</td>
<td height="11" valign="top" colspan="2" align="right" width="72" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;
98,606&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374">
<p><b><font size="2" face="Times New Roman">&nbsp;&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" align="right" width="69">
<p><b><font size="2" face="Times New Roman">&nbsp;
4,641&nbsp;</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="63">
<p><font size="2" face="Times New Roman">&nbsp;5,471&nbsp;</font></p>
</td>
<td valign="top" colspan="2" align="right" width="65">
<p><b><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp; 8,978&nbsp;</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="72">
<p><font size="2" face="Times New Roman">&nbsp;10,161&nbsp;</font></p>
</td>
</tr>

<tr height="11">
<td height="11" valign="top" width="374" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense, net</font></p>
</td>
<td height="11" valign="top" colspan="2" align="right" width="69" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New
Roman">&nbsp; 685&nbsp;</font></b></p>
</td>
<td height="11" valign="top" colspan="2" align="right" width="63" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">1,169&nbsp;</font></p>
</td>
<td height="11" valign="top" colspan="2" align="right" width="65" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp; 1,439&nbsp;</font></b></p>
</td>
<td height="11" valign="top" colspan="2" align="right" width="72" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">1,869&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on disposition</font></p>
</td>
<td valign="top" colspan="2" align="right" width="69" style="border-bottom-style: solid; border-bottom-width: 1">
<p><b><font size="2" face="Times New
Roman">&nbsp; 682&nbsp;</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="63" style="border-bottom-style: solid; border-bottom-width: 1">
<p><font size="2" face="Times New
Roman">&nbsp;-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" colspan="2" align="right" width="65" style="border-bottom-style: solid; border-bottom-width: 1">
<p><b><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
682&nbsp;</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="72" style="border-bottom-style: solid; border-bottom-width: 1">
<p><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;
- -&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total costs and expenses</font></p>
</td>
<td valign="top" colspan="2" align="right" width="69" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">&nbsp;55,430&nbsp;</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="63" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp; 58,713&nbsp;</font></p>
</td>
<td valign="top" colspan="2" align="right" width="65" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">&nbsp;
100,767&nbsp;</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="72" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp; 110,636&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="right" width="69" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="right" width="63" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="right" width="65" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="right" width="72" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="374" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">INCOME FROM CONTINUING OPERATIONS<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BEFORE INCOME TAXES</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="69" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">&nbsp;<br>
2,532&nbsp;</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="63" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp; <br>
2,474&nbsp;</font></p>
</td>
<td valign="top" colspan="2" align="right" width="65" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New
Roman">&nbsp;&nbsp; <br>
5,088&nbsp;</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="72" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;<br>
&nbsp;5,978&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374">
<p><b><font size="2" face="Times New Roman">INCOME TAX PROVISION</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="69" style="border-bottom-style: solid; border-bottom-width: 1">
<p><b><font size="2" face="Times New
Roman">&nbsp; 889&nbsp;</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="63" style="border-bottom-style: solid; border-bottom-width: 1">
<p><font size="2" face="Times New
Roman">&nbsp; 980&nbsp;</font></p>
</td>
<td valign="top" colspan="2" align="right" width="65" style="border-bottom-style: solid; border-bottom-width: 1">
<p><b><font size="2" face="Times New
Roman">&nbsp; 1,703&nbsp;</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="72" style="border-bottom-style: solid; border-bottom-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;
2,320&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">INCOME (LOSS) FROM CONTINUING<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OPERATIONS</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="69" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">&nbsp; <br>
1,643&nbsp;</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="63" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2"><br>
</font><font size="2" face="Times New Roman">1,494&nbsp;</font></p>
</td>
<td valign="top" colspan="2" align="right" width="65" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New
Roman">&nbsp;&nbsp;<br>
3,385&nbsp;</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="72" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;<br>
3,658&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="right" width="69" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="right" width="63" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="right" width="65" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="right" width="72" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="374" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">DISCONTINUED OPERATIONS:</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="69" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="right" width="63" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="right" width="65" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="right" width="72" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
</tr>

<tr height="15">
<td height="15" valign="top" width="374">
<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 height="15" valign="top" colspan="2" align="right" width="69">
<p><b><font size="2" face="Times New Roman">&nbsp;(3,035)</font></b></p>
</td>
<td height="15" valign="top" colspan="2" align="right" width="63">
<p><font size="2" face="Times New Roman">&nbsp;(2,601)</font></p>
</td>
<td height="15" valign="top" colspan="2" align="right" width="65">
<p><b><font size="2" face="Times New Roman">&nbsp;
(6,243)</font></b></p>
</td>
<td height="15" valign="top" colspan="2" align="right" width="72">
<p><font size="2" face="Times New Roman">&nbsp;
(6,076)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Income tax provision</font></p>
</td>
<td valign="top" colspan="2" align="right" width="69" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">&nbsp;(899)</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="63" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;
(765)</font></p>
</td>
<td valign="top" colspan="2" align="right" width="65" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">&nbsp;
(1,805)</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="72" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;
(1,841)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374">
<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" align="right" width="69" style="border-top-style: solid; border-top-width: 1">
<p><b><font size="2" face="Times New Roman">&nbsp; (2,136)</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="63" style="border-top-style: solid; border-top-width: 1">
<p><font size="2" face="Times New Roman">&nbsp; (1,836)</font></p>
</td>
<td valign="top" colspan="2" align="right" width="65" style="border-top-style: solid; border-top-width: 1">
<p><b><font size="2" face="Times New Roman">&nbsp;&nbsp;
(4,438)</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="72" style="border-top-style: solid; border-top-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;
(4,235)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="right" width="69" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="right" width="63" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="right" width="65" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="right" width="72" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="374">
<p><b><font size="2" face="Times New Roman">NET LOSS BEFORE CUMULATIVE EFFECT OF<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CHANGE IN ACCOUNTING PRINCIPLE:</font></b></p>
</td>
<td valign="bottom" colspan="2" align="right" width="69">
<p><b><font size="2" face="Times New Roman">&nbsp;&nbsp;
(493)</font></b></p>
</td>
<td valign="bottom" colspan="2" align="right" width="63">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;
(342)</font></p>
</td>
<td valign="bottom" colspan="2" align="right" width="65">
<p><b><font size="2" face="Times New Roman">&nbsp;
(1,053)</font></b></p>
</td>
<td valign="bottom" colspan="2" align="right" width="72">
<p><font size="2" face="Times New
Roman">&nbsp;&nbsp; (577)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374" 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;Cumulative effect of change in accounting principle</font></p>
</td>
<td valign="top" colspan="2" align="right" width="69" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="63" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" colspan="2" align="right" width="65" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
<td valign="top" colspan="2" width="72" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">&nbsp;&nbsp; (21,812)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374">
<p><b><font size="2" face="Times New Roman">NET LOSS</font></b></p>
</td>
<td valign="top" align="right" width="11" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p><b><font size="2" face="Times New Roman">$ </font></b></p>
</td>
<td valign="top" align="right" width="58" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<b><font size="2" face="Times New Roman">(493)</font></b></td>
<td valign="top" align="right" width="17" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" align="right" width="46" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<font size="2" face="Times New Roman">(342)</font></td>
<td valign="top" align="right" width="17" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top" align="right" width="48" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<b><font size="2" face="Times New Roman">(1,053)</font></b></td>
<td valign="top" align="right" width="17" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p><font face="Times New Roman" size="2">$</font></p>
</td>
<td valign="top" align="right" width="55" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<font size="2" face="Times New Roman">(22,389)</font></td>
</tr>

<tr>
<td valign="top" width="374" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="69" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="63" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="65" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="72" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="374">
<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="69"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="63"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="65"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="72"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="374" bgcolor="#FFF3CE">
<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" align="right" width="11" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">$ </font></b></p>
</td>
<td valign="top" align="right" width="58" bgcolor="#FFF3CE">
<b><font size="2" face="Times New Roman">0.18&nbsp;</font></b></td>
<td valign="top" align="right" width="17" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" align="right" width="46" bgcolor="#FFF3CE">
<font size="2" face="Times New Roman">0.16&nbsp;</font></td>
<td valign="top" align="right" width="17" bgcolor="#FFF3CE">
<p><font size="2">$</font></p>
</td>
<td valign="top" align="right" width="48" bgcolor="#FFF3CE">
<b><font size="2" face="Times New
Roman">&nbsp;0.36&nbsp;</font></b></td>
<td valign="top" align="right" width="17" bgcolor="#FFF3CE">
<p><font size="2" face="Times New
Roman">$</font></p>
</td>
<td valign="top" align="right" width="55" bgcolor="#FFF3CE">
<font size="2" face="Times New
Roman">0.39&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="374">
<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" align="right" width="69">
<p><b><font size="2" face="Times New Roman">&nbsp;&nbsp;
(0.23)</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="63">
<p><font size="2" face="Times New Roman">&nbsp;
(0.20)</font></p>
</td>
<td valign="top" colspan="2" align="right" width="65">
<p><b><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp; (0.47)</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="72">
<p><font size="2" face="Times New Roman">&nbsp;
(0.45)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374" bgcolor="#FFF3CE">
<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" align="right" width="69" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="63" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" colspan="2" align="right" width="65" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="72" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;
(2.34)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374">
<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" align="right" width="11" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top" align="right" width="58" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<b><font size="2" face="Times New Roman">(0.05)</font></b></td>
<td valign="top" align="right" width="17" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" align="right" width="46" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<font size="2" face="Times New Roman">(0.04)</font></td>
<td valign="top" align="right" width="17" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p><b><font size="2" face="Times New Roman">$ </font></b></p>
</td>
<td valign="top" align="right" width="48" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<b><font size="2" face="Times New Roman">(0.11)</font></b></td>
<td valign="top" align="right" width="17" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p><font size="2" face="Times New Roman">$ </font></p>
</td>
<td valign="top" align="right" width="55" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<font size="2" face="Times New Roman">(2.40)</font></td>
</tr>

<tr>
<td valign="top" width="374" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="69" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="63" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="65" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="72" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="374">
<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="69"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="63"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="65"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="72"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="374" bgcolor="#FFF3CE">
<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" align="right" width="11" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">$ </font></b></p>
</td>
<td valign="top" align="right" width="58" bgcolor="#FFF3CE">
<b><font size="2" face="Times New Roman">0.18&nbsp;</font></b></td>
<td valign="top" align="right" width="17" bgcolor="#FFF3CE">
<p><font face="Times New Roman" size="2">$</font></p>
</td>
<td valign="top" align="right" width="46" bgcolor="#FFF3CE">
<font size="2" face="Times New Roman">0.16&nbsp;</font></td>
<td valign="top" align="right" width="17" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New
Roman">$ </font></b></p>
</td>
<td valign="top" align="right" width="48" bgcolor="#FFF3CE">
<b><font size="2" face="Times New
Roman">0.36&nbsp;</font></b></td>
<td valign="top" align="right" width="17" bgcolor="#FFF3CE">
<p><font size="2" face="Times New
Roman">$&nbsp; </font></p>
</td>
<td valign="top" align="right" width="55" bgcolor="#FFF3CE">
<font size="2" face="Times New
Roman">0.39&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="374">
<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="69">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;
(0.23)</font></b></p>
</td>
<td valign="top" colspan="2" width="63">
<p align="right"><font size="2" face="Times New Roman">&nbsp;
(0.20)</font></p>
</td>
<td valign="top" colspan="2" width="65">
<p align="right"><b><font size="2" face="Times New
Roman">&nbsp;&nbsp; (0.47)</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="72">
<p><font size="2" face="Times New Roman">&nbsp;
(0.45)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374" bgcolor="#FFF3CE">
<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="69" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
<td valign="top" colspan="2" width="63" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="right"><font size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" colspan="2" width="65" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="right"><b><font size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="72" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;
(2.34)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374">
<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" align="right" width="11" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p><b><font size="2" face="Times New Roman">$ </font></b></p>
</td>
<td valign="top" align="right" width="58" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<b><font size="2" face="Times New Roman">(0.05)</font></b></td>
<td valign="top" align="right" width="17" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p><font size="2" face="Times New Roman">$ </font></p>
</td>
<td valign="top" align="right" width="46" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<font size="2" face="Times New Roman">(0.04)</font></td>
<td valign="top" align="right" width="17" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top" align="right" width="48" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<b><font size="2" face="Times New Roman">(0.11)</font></b></td>
<td valign="top" align="right" width="17" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" align="right" width="55" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<font size="2" face="Times New Roman">(2.40)</font></td>
</tr>

<tr>
<td valign="top" width="374" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="right" width="69" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="right" width="63" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="right" width="65" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="right" width="72" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="374">
<p><b><font size="2" face="Times New Roman">WEIGHTED AVERAGE SHARES OUTSTANDING:</font></b></p>
</td>
<td valign="top" colspan="2" align="left" width="69"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="left" width="63"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="left" width="65"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" align="left" width="72"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="374" bgcolor="#FFF3CE">
<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" align="right" width="69" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">&nbsp;
9,341&nbsp;</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="63" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;9,341&nbsp;</font></p>
</td>
<td valign="top" colspan="2" align="right" width="65" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New
Roman">&nbsp;&nbsp; 9,341&nbsp;</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="72" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">9,341&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="374">
<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" align="right" width="69" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p><b><font size="2" face="Times New Roman">&nbsp;
9,346&nbsp;</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="63" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;
9,355&nbsp;</font></p>
</td>
<td valign="top" colspan="2" align="right" width="65" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p><b><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp; 9,348&nbsp;</font></b></p>
</td>
<td valign="top" colspan="2" align="right" width="72" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p><font size="2" face="Times New Roman">9,349&nbsp;</font></p>
</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
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"><a href="#INDEX">Table of Contents</a></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="683" style="border-collapse: collapse" bordercolor="#111111">
<tr>
<td valign="top" width="537" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td colspan="5" valign="top" width="137" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p align="center"><b><font size="2" face="Times New Roman">Six Months Ended<br />
 June 30,</font></b></p>
</td>
</tr>

<tr>
<td valign="top" width="537"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="62" 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="11" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" 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="537" bgcolor="#FFF3CE">
<p style="margin-bottom: 8"><b><font size="2" face="Times New Roman">OPERATING ACTIVITIES:</font></b></p>
</td>
<td valign="top" colspan="2" width="62" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<p style="margin-bottom: 8">
<font size="2">&nbsp;</font></td>
<td valign="top" width="11" bgcolor="#FFF3CE">
<p style="margin-bottom: 8"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<p style="margin-bottom: 8">
<font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="537">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss</font></p>
</td>
<td valign="top" align="right" width="12">
<p><b><font size="2" face="Times New
Roman">$</font></b></p>
</td>
<td valign="top" align="right" width="50">
<b><font size="2" face="Times New
Roman">&nbsp;(1,053)</font></b></td>
<td valign="top" align="right" width="11">
<p align="left"><font size="2">&nbsp;</font></td>
<td valign="top" width="9" align="right">
<p><font size="2" face="Times New
Roman">$</font></p>
</td>
<td valign="top" width="55" align="right">
<font size="2" face="Times New
Roman">(22,389)</font></td>
</tr>

<tr>
<td valign="top" width="537" 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" colspan="2" width="62" align="right" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="11" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" bgcolor="#FFF3CE"></td>
</tr>

<tr>
<td valign="top" width="537"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="62" align="right"><font size="2">&nbsp;</font></td>
<td valign="top" width="11"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right"></td>
</tr>

<tr height="14">
<td valign="top" width="537" 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 valign="top" colspan="2" width="62" align="right" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New
Roman">4,438&nbsp;</font></b></p>
</td>
<td valign="top" width="11" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" bgcolor="#FFF3CE">
<p><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;
4,235&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537">
<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" colspan="2" width="62" align="right">
<p><b><font size="2" face="Times New
Roman">&nbsp;&nbsp;
2,515&nbsp;</font></b></p>
</td>
<td valign="top" width="11"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right">
<p><font size="2" face="Times New
Roman">&nbsp;&nbsp;
2,889&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537" 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" colspan="2" width="62" align="right" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;
98&nbsp;</font></b></p>
</td>
<td valign="top" width="11" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" bgcolor="#FFF3CE">
<p><font size="2" face="Times New
Roman">&nbsp;&nbsp;
127&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537">
<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" colspan="2" width="62" align="right">
<p><b><font size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
<td valign="top" width="11"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right">
<p><font size="2" face="Times New
Roman">&nbsp;
21,812&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537" 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 on
disposals of property, plant, and equipment</font></p>
</td>
<td valign="top" colspan="2" width="62" align="right" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New
Roman">&nbsp;39&nbsp;</font></b></p>
</td>
<td valign="top" width="11" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" bgcolor="#FFF3CE">
<p><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;
12&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537">
<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 on
disposition of business</font></p>
</td>
<td valign="top" colspan="2" width="62" align="right">
<p><b><font size="2" face="Times New
Roman">&nbsp;
682&nbsp;</font></b></p>
</td>
<td valign="top" width="11"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right">
<p><font size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537" 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; Deferred
Income Tax provision</font></p>
</td>
<td valign="top" colspan="2" width="62" align="right" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New
Roman">&nbsp;&nbsp;
(35)</font></b></p>
</td>
<td valign="top" width="11" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" bgcolor="#FFF3CE">
<p><font size="2" face="Times New
Roman">&nbsp;99&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537">
<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; Paid in
kind interest</font></p>
</td>
<td valign="top" colspan="2" width="62" align="right">
<p><b><font size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
<td valign="top" width="11"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right">
<p><font size="2" face="Times New
Roman">&nbsp;&nbsp;
213&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537" 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; Proceeds
from income tax refund</font></p>
</td>
<td valign="top" colspan="2" width="62" align="right" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
<td valign="top" width="11" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" bgcolor="#FFF3CE">
<p><font size="2" face="Times New
Roman">&nbsp;4,248&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537">
<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" colspan="2" width="62" align="right"><font size="2">&nbsp;</font></td>
<td valign="top" width="11"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right"></td>
</tr>

<tr>
<td valign="top" width="537" 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" colspan="2" width="62" align="right" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New
Roman">&nbsp;3,510&nbsp;</font></b></p>
</td>
<td valign="top" width="11" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" bgcolor="#FFF3CE">
<p><font size="2" face="Times New
Roman">&nbsp;&nbsp;(980)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537">
<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" colspan="2" width="62" align="right">
<p><b><font size="2" face="Times New
Roman">&nbsp;(5,710)</font></b></p>
</td>
<td valign="top" width="11"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right">
<p><font size="2" face="Times New
Roman">&nbsp;(873)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537" 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" colspan="2" width="62" align="right" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New
Roman">&nbsp;&nbsp;
(1,058)</font></b></p>
</td>
<td valign="top" width="11" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" bgcolor="#FFF3CE">
<p><font size="2" face="Times New
Roman">&nbsp;
(1,319)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537">
<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" colspan="2" width="62" align="right">
<p><b><font size="2" face="Times New
Roman">&nbsp;
(11)</font></b></p>
</td>
<td valign="top" width="11"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right">
<p><font size="2" face="Times New Roman">(24)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537" 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" colspan="2" width="62" align="right" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New
Roman">&nbsp;
3,366&nbsp;</font></b></p>
</td>
<td valign="top" width="11" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">4,340</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537">
<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" colspan="2" width="62" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
<p><b><font size="2" face="Times New
Roman">&nbsp;(138)</font></b></p>
</td>
<td valign="top" width="11"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
<p><font size="2" face="Times New
Roman">713&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537" 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" colspan="2" width="62" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New
Roman">&nbsp;
6,643&nbsp;</font></b></p>
</td>
<td valign="top" width="11" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New
Roman">&nbsp;13,103&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537">
<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" colspan="2" width="62" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p><b><font size="2" face="Times New
Roman">(7,277)</font></b></p>
</td>
<td valign="top" width="11"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p><font size="2" face="Times New
Roman">(1,952)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537" 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
(used in) provided by operating activities</font></p>
</td>
<td valign="top" colspan="2" width="62" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New
Roman">&nbsp;
(634)</font></b></p>
</td>
<td valign="top" width="11" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New
Roman">&nbsp;
11,151&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="62" align="right" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="11"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" style="border-top-style: solid; border-top-width: 1"></td>
</tr>

<tr>
<td valign="top" width="537" bgcolor="#FFF3CE">
<p style="margin-bottom: 8"><b><font size="2" face="Times New Roman">INVESTING
ACTIVITIES:</font></b></p>
</td>
<td valign="top" colspan="2" width="62" align="left" bgcolor="#FFF3CE">
<p style="margin-bottom: 8"><font size="2">&nbsp;</font></td>
<td valign="top" width="11" align="left" bgcolor="#FFF3CE">
<p style="margin-bottom: 8"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="left" bgcolor="#FFF3CE">
<p style="margin-bottom: 8"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="537">
<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" colspan="2" width="62" align="right">
<p><b><font size="2" face="Times New
Roman">&nbsp;&nbsp;
(894)</font></b></p>
</td>
<td valign="top" width="11"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right">
<p><font size="2" face="Times New
Roman">&nbsp;(429)</font></p>
</td>
</tr>

<tr height="13">
<td valign="top" width="537" 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 valign="top" colspan="2" width="62" align="right" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New
Roman">&nbsp;&nbsp;
41&nbsp;</font></b></p>
</td>
<td valign="top" width="11" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" bgcolor="#FFF3CE">
<p><font size="2" face="Times New
Roman">&nbsp;&nbsp;
26&nbsp;</font></p>
</td>
</tr>

<tr height="5">
<td valign="top" width="537">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of business</font></p>
</td>
<td valign="top" colspan="2" width="62" align="right">
<p><b><font size="2" face="Times New
Roman">&nbsp;
3,645&nbsp;</font></b></p>
</td>
<td valign="top" width="11"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right">
<p><font size="2" face="Times New
Roman">&nbsp;
- -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr height="5">
<td valign="top" width="537" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments received on notes receivables</font></p>
</td>
<td valign="top" colspan="2" width="62" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New
Roman">&nbsp;
751&nbsp;</font></b></p>
</td>
<td valign="top" width="11" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" 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;
47&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537">
<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" colspan="2" width="62" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p><b><font size="2" face="Times New
Roman">&nbsp;
3,543&nbsp;</font></b></p>
</td>
<td valign="top" width="11"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p><font size="2" face="Times New
Roman">&nbsp;
(356)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by investing activities from discontinued operations</font></p>
</td>
<td valign="top" colspan="2" width="62" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New
Roman">&nbsp;
2,556&nbsp;</font></b></p>
</td>
<td valign="top" width="11" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New
Roman">&nbsp;&nbsp;
767&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by investing activities</font></p>
</td>
<td valign="top" colspan="2" width="62" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p><b><font size="2" face="Times New
Roman">&nbsp;&nbsp;
6,099&nbsp;</font></b></p>
</td>
<td valign="top" width="11"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
<p><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;
411&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="62" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<font size="2">&nbsp;</font></td>
<td valign="top" width="11" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE"></td>
</tr>

<tr>
<td valign="top" width="537">
<p style="margin-bottom: 8"><b><font size="2" face="Times New Roman">FINANCING ACTIVITIES:</font></b></p>
</td>
<td valign="top" colspan="2" width="62" align="right">
<p style="margin-bottom: 8"><font size="2">&nbsp;</font></td>
<td valign="top" width="11">
<p style="margin-bottom: 8"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right">
<p align="left" style="margin-bottom: 8"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="537" bgcolor="#FFF3CE">
<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" colspan="2" width="62" align="right" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New
Roman">&nbsp;&nbsp;
1,810&nbsp;</font></b></p>
</td>
<td valign="top" width="11" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" bgcolor="#FFF3CE">
<p><font size="2" face="Times New
Roman">&nbsp;
1,784&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments on long-term obligations</font></p>
</td>
<td valign="top" colspan="2" width="62" align="right">
<p><b><font size="2" face="Times New
Roman">&nbsp;
(1,393)</font></b></p>
</td>
<td valign="top" width="11"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right">
<p><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;
(2,155)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowings under long-term obligations</font></p>
</td>
<td valign="top" colspan="2" width="62" align="right" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New
Roman">&nbsp;&nbsp;
75&nbsp;</font></b></p>
</td>
<td valign="top" width="11" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" bgcolor="#FFF3CE">
<p><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
71&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additions to deferred financing costs</font></p>
</td>
<td valign="top" colspan="2" width="62" align="right">
<p><b><font size="2" face="Times New
Roman">&nbsp;
(299)</font></b></p>
</td>
<td valign="top" width="11"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right">
<p><font size="2" face="Times New
Roman">&nbsp;&nbsp;
(1,015)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537" 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" colspan="2" width="62" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;
49&nbsp;</font></b></p>
</td>
<td valign="top" width="11" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New
Roman">&nbsp;&nbsp;
(288)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537">
<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" colspan="2" width="62" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p><b><font size="2" face="Times New
Roman">&nbsp;
242&nbsp;</font></b></p>
</td>
<td valign="top" width="11"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p><font size="2" face="Times New
Roman">&nbsp;(1,603)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537" 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" colspan="2" width="62" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New
Roman">&nbsp;
(5,807)</font></b></p>
</td>
<td valign="top" width="11" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New
Roman">&nbsp;&nbsp;
(11,701)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537">
<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" colspan="2" width="62" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p><b><font size="2" face="Times New
Roman">&nbsp;
(5,565)</font></b></p>
</td>
<td valign="top" width="11"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style:solid; border-bottom-width:1">
<p><font size="2" face="Times New
Roman">&nbsp;
(13,304)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="62" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<font size="2">&nbsp;</font></td>
<td valign="top" width="11" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<p align="left"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="537">
<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" colspan="2" width="62" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
<p><b><font size="2" face="Times New
Roman">&nbsp;
1,447&nbsp;</font></b></p>
</td>
<td valign="top" width="11"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
<p><font size="2" face="Times New
Roman">&nbsp;
375&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537" 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" colspan="2" width="62" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New
Roman">&nbsp;&nbsp;
1,347&nbsp;</font></b></p>
</td>
<td valign="top" width="11" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: none; border-bottom-width: medium" bgcolor="#FFF3CE">
<p><font size="2" face="Times New
Roman">&nbsp;&nbsp;
(1,367)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537">
<p><b><font size="2" face="Times New Roman">CASH AND TEMPORARY INVESTMENTS, beginning of period</font></b></p>
</td>
<td valign="top" colspan="2" width="62" align="right" style="border-bottom-style: solid; border-bottom-width: 1">
<p><b><font size="2" face="Times New
Roman">&nbsp;&nbsp;
2,097&nbsp;</font></b></p>
</td>
<td valign="top" width="11"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1">
<p><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;
9,863&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">CASH AND TEMPORARY INVESTMENTS-DISCONTINUED OPERATIONS,<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;beginning of
period</font></b></p>
</td>
<td valign="bottom" colspan="2" width="62" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New
Roman">&nbsp;
1,752&nbsp;</font></b></p>
</td>
<td valign="bottom" width="11" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" colspan="2" width="64" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537">
<p><b><font size="2" face="Times New Roman">CASH AND TEMPORARY INVESTMENTS-DISCONTINUED OPERATIONS,&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;end of period</font></b></p>
</td>
<td valign="bottom" colspan="2" width="62" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p><b><font size="2" face="Times New
Roman">&nbsp;
1,403&nbsp;</font></b></p>
</td>
<td valign="bottom" width="11"><font size="2">&nbsp;</font></td>
<td valign="bottom" colspan="2" width="64" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p><font size="2" face="Times New Roman">-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="537" 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" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New
Roman">$&nbsp;</font></b></p>
</td>
<td valign="top" width="50" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<b><font size="2" face="Times New
Roman">&nbsp;3,793&nbsp;</font></b></td>
<td valign="top" width="11" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="9" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New
Roman">$</font></p>
</td>
<td valign="top" width="55" align="right" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE">
<font size="2" face="Times New
Roman">8,496&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="537"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="62" align="right"><font size="2">&nbsp;</font></td>
<td valign="top" width="11"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right"></td>
</tr>

<tr>
<td valign="top" width="537" bgcolor="#FFF3CE">
<p><b><font size="2" face="Times New Roman">SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:</font></b></p>
</td>
<td valign="top" colspan="2" width="62" align="right" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="11" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" bgcolor="#FFF3CE">
<p align="left"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="537">
<p><font size="2" face="Times New Roman">Cash payments for interest</font></p>
</td>
<td valign="top" width="12" align="right" style="border-bottom-style: double">
<p><b><font size="2" face="Times New
Roman">$&nbsp;</font></b></p>
</td>
<td valign="top" width="50" align="right" style="border-bottom-style: double">
<b><font size="2" face="Times New
Roman">2,872&nbsp;</font></b></td>
<td valign="top" width="11"><font size="2">&nbsp;</font></td>
<td valign="top" width="9" align="right" style="border-bottom-style: double">
<p><font size="2" face="Times New
Roman">$</font></p>
</td>
<td valign="top" width="55" align="right" style="border-bottom-style: double">
<font size="2" face="Times New
Roman">3,718&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="537" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="62" align="right" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="11" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" bgcolor="#FFF3CE">
<p align="left"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="537">
<p><font size="2" face="Times New Roman">Cash payments for income taxes</font></p>
</td>
<td valign="top" width="12" align="right" style="border-bottom-style: double">
<p><b><font size="2" face="Times New
Roman">$&nbsp;&nbsp;</font></b></p>
</td>
<td valign="top" width="50" align="right" style="border-bottom-style: double">
<b><font size="2" face="Times New
Roman">&nbsp;357&nbsp;</font></b></td>
<td valign="top" width="11"><font size="2">&nbsp;</font></td>
<td valign="top" width="9" align="right" style="border-bottom-style: double">
<p><font size="2" face="Times New
Roman">$</font></p>
</td>
<td valign="top" width="55" align="right" style="border-bottom-style: double">
<font size="2" face="Times New
Roman">354&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="537" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="62" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" width="11" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right" bgcolor="#FFF3CE">
<p align="left"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td colspan="6" valign="top" width="681">
<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>


<p align="center"><font face="Times New Roman" size="2">5<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">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; Going Concern</font></p>

<p style="margin-left: 40"> <font size="2">At December
31, 2002 the Company&rsquo;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 under its senior (&ldquo;Senior Credit Facility&rdquo;) and subordinated (&ldquo;Junior Credit Facility&rdquo;)
credit facility agreements, and its subordinated credit facility matured 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 a 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"> <font
size="2" color="black">On July 29, 2003, the junior lender agent gave a notice to the senior lender agent of its intent to commence
an enforcement action based upon the event of default for
failure to repay the outstanding obligations under the Junior Credit Facility on the maturity date thereof.&nbsp;
Pursuant to the terms of the Intercreditor Agreement (defined below), the
junior lender agent and the junior lenders are prevented from taking any
enforcement action or exercising any remedies against the Company, its subsidiaries or their respective assets in respect of such
event of default during a standstill period (&ldquo;Standstill Period&rdquo;) which will expire on the earlier of:&nbsp; (i)
November 26, 2003 (the date which is 120 days after the date that written notice was
given by the junior lender agent to the senior lender agent of its intent to commence an enforcement action as a result of the
occurrence of the Junior Credit Facility defaults), subject to extension by notice from senior lender agent to junior lender agent
to April 24, 2004 (the date which is 270 days after the date that written
notice was given by the junior lender agent to the senior lender agent of its intent to commence an enforcement action as a result
of the occurrence of the Junior Credit Facility defaults); (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;</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"><a href="#INDEX">Table of Contents</a></p>

  </font>

<p style="margin-left: 40"><font size="2" color="black" face="Times New Roman">On August
5, 2003, the senior agent gave a payment blockage notice to the junior agent based upon certain events of default under Senior
Credit Facility, thereby preventing the junior agent and junior lenders from receiving any payments from the Company in respect of
the Junior Credit Facility while such blockage notice remains in effect.&nbsp; Pursuant to the terms of the Intercreditor Agreement
(defined below), such payment blockage period will expire on the earlier of (i) February 1, 2004 (the date which is 180 days after
the date that such payment blockage notice was given), subject to extension to May 1, 2004 (the date which is 270 days after the
date that such payment blockage notice was given) if the Standstill Period is extended from November 26, 2003 to April 24, 2004 at
the election of the senior lender agent by notice to the junior lender agent as described above, or (ii) the date that the Senior
Credit Facility defaults giving rise to such payment blockage notice have been cured or waived.&nbsp; An event of default has also
occurred under the Junior Credit Facility and the Senior Credit Facility as a result of the auditor&rsquo;s report for the
Company&rsquo;s December 31, 2002 financial statements including an explanatory paragraph that referred to uncertainty about the
Company&rsquo;s ability to continue as a going concern for a reasonable period of time.&nbsp; These existing events of default
under the Senior 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 have occurred.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">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&#146;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.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">The Company is currently in discussions with the lenders under the Junior Credit Facility
to extend the maturity date of the Junior Credit Facility and/or to refinance the Junior Credit Facility.&nbsp; The Company has
also entered into discussions with the lenders under the Senior Credit Facility to refinance the Senior Credit Facility.&nbsp;
There has been no agreement with respect to any such extension or refinancing and there can be no assurance that the Company will
be able to extend the maturity date of the Junior Credit Facility or refinance either or both Credit Facilities.&nbsp; If the
Company were to be unsuccessful in its efforts to refinance the Credit Facilities, the Company might 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">As described in Note 3,
in October 2002, the Company decided to sell all remaining towing services operations.&nbsp; The Company sold eleven towing
services locations and other assets from towing services operations for proceeds of $5.1 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">7<hr size="1" color="#000080" STYLE="page-break-after: always">

<p align="left"><a href="#INDEX">Table of Contents</a></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 has
received notification from the New York Stock Exchange (&#147;NYSE&#148;) that based on
market information and information in the Company&#146;s recent public filings, it is
not in compliance with the NYSE&#146;s continued listing standards.&nbsp; The NYSE
requires shareholders&#146; equity of not less than $50.0 million and a 30-day
average market capitalization of $50.0 million.&nbsp; The Company&#146;s
shareholders&#146; equity was $40.1 million, as reported in the Company&#146;s March 31,
2003 Form 10-Q filed with the Securities and Exchange Commission on May 22,
2003.&nbsp; As of May 27, 2003, the Company had a 30-day average market
capitalization of $28.9 million.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">The Company has
compiled a three-pronged plan for regaining compliance with the continued listing standards.&nbsp; The Company&rsquo;s plan is to
restructure the Company&rsquo;s bank facilities and rationalize the timing of the Company&rsquo;s debt service, dispose of the
Company&rsquo;s remaining RoadOne and distributor operations within the time period specified and focus all of the Company&rsquo;s
resources, manpower as well as financial, on returning the manufacturing operations to their historically profitable levels.&nbsp;
The NYSE may take up to 45 days to review and evaluate the plan after it is submitted.&nbsp; If the plan is accepted, the Company
will be subject to quarterly monitoring for compliance by the NYSE.&nbsp; If the NYSE does not accept the plan, the Company will be
subject to NYSE trading suspension and delisting.&nbsp; In that event, the Company would pursue listing on an alternative national
securities exchange.</font></p>

<p><font size="2" face="Times New Roman">3. &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 six
months ended June 30, 2003, the Company disposed of substantially all of the
assets in eleven towing service markets, as well as assets remaining from other
markets of its towing services segment.&nbsp; Total proceeds from the sales were
$5.1 million which included $4.9 million in cash and $0.2 million in notes
receivable.&nbsp; Losses on the sales of discontinued operations were $2.0
million.&nbsp;&nbsp; Subsequent to June 30, 2003 the Company disposed of assets
in three markets with proceeds of approximately $1.1 million.&nbsp; As of August
12, 2003, there are two towing service markets remaining to be sold, as well as
miscellaneous assets remaining from previous towing market sales.&nbsp;
Agreements subject to satisfaction of certain conditions have been signed for
the disposition of the two remaining towing services markets.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">During the six
months ended June 30, 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 has entered into negotiations for the
disposition of all of the eight remaining locations of the distribution group.&nbsp;
As of August 12, 2003, agreements for the disposition of two of the locations
are being negotiated, and letters of intent are being negotiated for three of
the locations.</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"><a href="#INDEX">Table of Contents</a></p>

  </font>

<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 June 30, 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 results of operations and loss on disposal associated with certain towing services
markets, which were sold in June 2003 have been reclassified from discontinued operations to continuing operations given the
Company's significant continuing involvement in the operations of the disposal components via a consulting agreement and the
Company's ongoing interest in the cash flows of the operations of the disposal components via a long-term license
agreement.</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 three and six months ended June 30, 2003 and 2002,
were as follows (in thousands):</font></p>

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

<table border="0" cellspacing="0" cellpadding="0" width="686" style="border-collapse: collapse" bordercolor="#111111">
<tr>
<td valign="top" width="207"><font size="2">&nbsp;</font></td>
<td colspan="8" valign="top" width="243" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">Three Months Ended<br>
June 30, 2003</font></p>

</td>
<td valign="top" width="19"><font size="2">&nbsp;</font></td>
<td colspan="8" valign="top" width="217" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">Three Months Ended<br>
June 30, 2002</font></p>

</td>
</tr>

<tr>
<td valign="top" width="207"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="72" 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="21" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="65" 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="20" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="65" 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="19"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="66" 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="19" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" 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="14" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" 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">Total</font></p>
</td>
</tr>

<tr>
<td valign="top" width="207"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="72" 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" colspan="2" width="65" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="20"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="65" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="19"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="66" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="19"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="59" 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" colspan="2" width="59" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="207">
<p><font size="2" face="Times New Roman">Net Sales</font></p>
</td>
<td valign="top" width="19" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="53" align="right">
<font size="2" face="Times New Roman">15,085&nbsp;</font></td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" width="20" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="45" align="right">
<font size="2" face="Times New Roman">3,250&nbsp;</font></td>
<td valign="top" width="20"><font size="2">&nbsp;</font></td>
<td valign="top" width="17" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="48" align="right">
<font size="2" face="Times New Roman">18,335&nbsp;</font></td>
<td valign="top" width="19"><font size="2">&nbsp;</font></td>
<td valign="top" width="15" align="right">
<p><font face="Times New Roman" size="2">$</font></p>
</td>
<td valign="top" width="51" align="right">
<font size="2" face="Times New Roman">21,041&nbsp;</font></td>
<td valign="top" width="19"><font size="2">&nbsp;</font></td>
<td valign="top" width="14" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="45" align="right">
<font size="2" face="Times New Roman">27,690&nbsp;</font></td>
<td valign="top" width="14"><font size="2">&nbsp;</font></td>
<td valign="top" width="16" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="43" align="right">
<font size="2" face="Times New Roman">48,731&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="207"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="72" align="right"><font size="2">&nbsp;</font></td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="65" align="right"><font size="2">&nbsp;</font></td>
<td valign="top" width="20"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="65" align="right"><font size="2">&nbsp;</font></td>
<td valign="top" width="19"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="66" align="right"><font size="2">&nbsp;</font></td>
<td valign="top" width="19"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="59" align="right"><font size="2">&nbsp;</font></td>
<td valign="top" width="14"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="59" align="right"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="207">
<p><font size="2" face="Times New Roman">Operating income (loss)</font></p>
</td>
<td valign="top" width="19" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="53" align="right">
<font size="2" face="Times New Roman">(64)</font></td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" width="20" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="45" align="right">
<font size="2" face="Times New Roman">(1,063)</font></td>
<td valign="top" width="20"><font size="2">&nbsp;</font></td>
<td valign="top" width="17" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="48" align="right">
<font size="2" face="Times New Roman">(1,127)</font></td>
<td valign="top" width="19"><font size="2">&nbsp;</font></td>
<td valign="top" width="15" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="51" align="right">
<font size="2" face="Times New Roman">(43)</font></td>
<td valign="top" width="19"><font size="2">&nbsp;</font></td>
<td valign="top" width="14" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="45" align="right">
<font size="2" face="Times New Roman">(1,010)</font></td>
<td valign="top" width="14"><font size="2">&nbsp;</font></td>
<td valign="top" width="16" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="43" align="right">
<font size="2" face="Times New Roman">(1,053)</font></td>
</tr>

<tr>
<td valign="top" width="207"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="72" align="right"><font size="2">&nbsp;</font></td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="65" align="right"><font size="2">&nbsp;</font></td>
<td valign="top" width="20"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="65" align="right"><font size="2">&nbsp;</font></td>
<td valign="top" width="19"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="66" align="right"><font size="2">&nbsp;</font></td>
<td valign="top" width="19"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="59" align="right"><font size="2">&nbsp;</font></td>
<td valign="top" width="14"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="59" align="right"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="207">
<p><font size="2" face="Times New Roman">Loss from discontinued operations</font></p>
</td>
<td valign="top" width="19" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="53" align="right">
<font size="2" face="Times New Roman">(1,283)</font></td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" width="20" align="right">
<p><font size="2" face="Times New Roman">$ </font></p>
</td>
<td valign="top" width="45" align="right">
<font size="2" face="Times New Roman">(853)</font></td>
<td valign="top" width="20"><font size="2">&nbsp;</font></td>
<td valign="top" width="17" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="48" align="right">
<font size="2" face="Times New Roman">(2,136)</font></td>
<td valign="top" width="19"><font size="2">&nbsp;</font></td>
<td valign="top" width="15" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="51" align="right">
<font size="2" face="Times New Roman">&nbsp;(876)</font></td>
<td valign="top" width="19"><font size="2">&nbsp;</font></td>
<td valign="top" width="14" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="45" align="right">
<font size="2" face="Times New Roman">(960)</font></td>
<td valign="top" width="14"><font size="2">&nbsp;</font></td>
<td valign="top" width="16" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="43" align="right">
<font size="2" face="Times New Roman">(1,836)</font></td>
</tr>
</table>

<p>&nbsp;</p>

<table border="0" cellspacing="0" cellpadding="0" width="686" style="border-collapse: collapse" bordercolor="#111111">
<tr>
<td valign="top" width="207"><font size="2">&nbsp;</font></td>
<td colspan="8" valign="top" width="243" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font face="Times New Roman" size="2">Six Months Ended<br>
June 30, 2003</font></p>

</td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td colspan="8" valign="top" width="215" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font face="Times New Roman" size="2">Six Months Ended<br>
June 30, 2002</font></p>

</td>
</tr>

<tr>
<td valign="top" width="207"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="72" 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="21" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="65" 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="20" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="65" 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="21"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" 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="19" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" 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="14" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" 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">Total</font></p>
</td>
</tr>

<tr>
<td valign="top" width="207"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="72" 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" colspan="2" width="65" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="20"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="65" 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" colspan="2" width="64" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="19"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="59" 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" colspan="2" width="59" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="207">
<p><font size="2" face="Times New Roman">Net Sales</font></p>
</td>
<td valign="top" width="19" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="53" align="right">
<font size="2" face="Times New Roman">31,700&nbsp;</font></td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" width="20" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="45" align="right">
<font size="2" face="Times New Roman">14,669&nbsp;</font></td>
<td valign="top" width="20"><font size="2">&nbsp;</font></td>
<td valign="top" width="17" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="48" align="right">
<font size="2" face="Times New Roman">46,369&nbsp;</font></td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" width="13" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="51" align="right">
<font size="2" face="Times New Roman">43,537&nbsp;</font></td>
<td valign="top" width="19"><font size="2">&nbsp;</font></td>
<td valign="top" width="14" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="45" align="right">
<font size="2" face="Times New Roman">54,097&nbsp;</font></td>
<td valign="top" width="14"><font size="2">&nbsp;</font></td>
<td valign="top" width="16" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="43" align="right">
<font face="Times New Roman" size="2">97,634&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="207"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="72" align="right"><font size="2">&nbsp;</font></td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="65" align="right"><font size="2">&nbsp;</font></td>
<td valign="top" width="20"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="65" align="right"><font size="2">&nbsp;</font></td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right"><font size="2">&nbsp;</font></td>
<td valign="top" width="19"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="59" align="right"><font size="2">&nbsp;</font></td>
<td valign="top" width="14"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="59" align="right"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="207">
<p><font size="2" face="Times New Roman">Operating income (loss)</font></p>
</td>
<td valign="top" width="19" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="53" align="right">
<font size="2" face="Times New Roman">(97)</font></td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" width="20" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="45" align="right">
<font size="2" face="Times New Roman">(1,025)</font></td>
<td valign="top" width="20"><font size="2">&nbsp;</font></td>
<td valign="top" width="17" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="48" align="right">
<font size="2" face="Times New Roman">(1,122)</font></td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" width="13" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="51" align="right">
<font size="2" face="Times New Roman">(183)</font></td>
<td valign="top" width="19"><font size="2">&nbsp;</font></td>
<td valign="top" width="14" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="45" align="right">
<font size="2" face="Times New Roman">(2,987)</font></td>
<td valign="top" width="14"><font size="2">&nbsp;</font></td>
<td valign="top" width="16" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="43" align="right">
<font size="2" face="Times New Roman">(3,170)</font></td>
</tr>

<tr>
<td valign="top" width="207"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="72" align="right"><font size="2">&nbsp;</font></td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="65" align="right"><font size="2">&nbsp;</font></td>
<td valign="top" width="20"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="65" align="right"><font size="2">&nbsp;</font></td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="64" align="right"><font size="2">&nbsp;</font></td>
<td valign="top" width="19"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="59" align="right"><font size="2">&nbsp;</font></td>
<td valign="top" width="14"><font size="2">&nbsp;</font></td>
<td valign="top" colspan="2" width="59" align="right"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="207">
<p><font size="2" face="Times New Roman">Loss from discontinued operations</font></p>
</td>
<td valign="top" width="19" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="53" align="right">
<font size="2" face="Times New Roman">(2,058)</font></td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" width="20" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="45" align="right">
<font size="2" face="Times New Roman">(2,380)</font></td>
<td valign="top" width="20"><font size="2">&nbsp;</font></td>
<td valign="top" width="17" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="48" align="right">
<font size="2" face="Times New Roman">(4,438)</font></td>
<td valign="top" width="21"><font size="2">&nbsp;</font></td>
<td valign="top" width="13" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="51" align="right">
<font size="2" face="Times New Roman">&nbsp;(1,764)</font></td>
<td valign="top" width="19"><font size="2">&nbsp;</font></td>
<td valign="top" width="14" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="45" align="right">
<font size="2" face="Times New Roman">(2,471)</font></td>
<td valign="top" width="14"><font size="2">&nbsp;</font></td>
<td valign="top" width="16" align="right">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="43" align="right">
<font size="2" face="Times New Roman">(4,235)</font></td>
</tr>
</table>

<p><font size="2" face="Times New Roman">&nbsp;</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"><a href="#INDEX">Table of Contents</a></p>

  </font>

<p style="margin-left: 40"><font size="2" face="Times New Roman">The following
assets and liabilities are reclassified as held for sale at June 30, 2003 and
December 31, 2002 (in thousands):</font></p>


<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">June 30, 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">$</font></p>
</td>
<td valign="bottom" width="46" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<font face="Times New Roman" size="2">924</font></td>
<td valign="bottom" width="16" bgcolor="#FFF3CE">
<p align="center"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="13" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<p align="left"><font size="2">$</font></p>
</td>
<td valign="bottom" width="48" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<font face="Times New Roman" size="2">479</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">$</font></p>
</td>
<td valign="bottom" width="37" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<font size="2" face="Times New Roman">1,403</font></td>
<td valign="top" width="13" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="25" align="right" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE">
<p><font size="2" face="Times New Roman">$&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 face="Times New Roman" size="2">3,565</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 face="Times New Roman" size="2">2,521</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 face="Times New Roman" size="2">6,086</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">16,621</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">16,621</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">463</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 face="Times New Roman" size="2">2,635</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">3,098</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 face="Times New Roman" size="2">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">21,573</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 face="Times New Roman" size="2">5,635</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">27,208</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 face="Times New Roman" size="2">8,637</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 face="Times New Roman" size="2">8,637</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">1,614</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">1,614</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">10,251</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">10,251</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">13,928</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 face="Times New Roman" size="2">3,869</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 face="Times New Roman" size="2">17,797</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">2,911</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 face="Times New Roman" size="2">9,212</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">12,123</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 />
 4,042</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 />
 7,752</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 />
 11,794</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 face="Times New Roman" size="2">20,881</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">20,833</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">41,714</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">1,212</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">1,212</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">1,212</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">$</font></p>
</td>
<td valign="bottom" align="right" width="37" style="border-bottom-style: double" bgcolor="#FFF3CE">
<font size="2" face="Times New Roman">1,212</font></td>
<td valign="bottom" width="13" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
<td valign="bottom" align="right" width="25" style="border-bottom-style: double" bgcolor="#FFF3CE">
<p align="left"><font size="2" face="Times New Roman">$</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>


<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">Basic net
income (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares
outstanding.&nbsp; Diluted net income (loss) per share is calculated by dividing net income (loss) by the weighted average number
of common and potential dilutive common shares outstanding.&nbsp; Diluted net income per share takes into consideration the assumed
conversion of outstanding stock options resulting in 5,000 and 14,000 potential dilutive common shares for the three months ended
June 30, 2003 and 2002, respectively, and 7,000 and 8,000 potential dilutive common shares for the six months ended June 30, 2003,
and 2002.</font></p>


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

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

</font>

<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 mater</font><font size="2">ials, labor and factory overhead.&nbsp;
Inventories are stated at the lower of cost or market, determined on a first-in,
first-out basis.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">Inventories for </font>
<font size="2">continuing</font><font size="2" face="Times New Roman">
operations at June 30, 2003 and December 31, 2002 consisted of the following (in
thousands):</font></p>

<div align="center">
  <center>

<table border="0" cellspacing="0" cellpadding="0" width="387" style="border-collapse: collapse" bordercolor="#111111">
<tr>
<td valign="top" width="182"><font size="2">&nbsp;</font></td>
<td valign="top" width="32"><font size="2">&nbsp;</font></td>
<td valign="top" width="66" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><b><font size="2" face="Times New Roman">June 30,<br />
 2003</font></b></p>
</td>
<td valign="top" width="27"><font size="2">&nbsp;</font></td>
<td valign="top" width="80" 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="182"><font size="2">&nbsp;</font></td>
<td valign="top" width="32"><font size="2">&nbsp;</font></td>
<td valign="top" width="66" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" width="27"><font size="2">&nbsp;</font></td>
<td valign="top" width="80" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="182">
<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">$</font></b></p>
</td>
<td valign="top" width="66">
<p align="right"><b><font size="2" face="Times New Roman">2,297</font></b></p>
</td>
<td valign="top" width="27">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="80">
<p align="right"><font size="2" face="Times New Roman">1,316</font></p>
</td>
</tr>

<tr>
<td valign="top" width="182">
<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="66">
<p align="right"><b><font size="2" face="Times New Roman">13,308</font></b></p>
</td>
<td valign="top" width="27"><font size="2">&nbsp;</font></td>
<td valign="top" width="80">
<p align="right"><font size="2" face="Times New Roman">10,993</font></p>
</td>
</tr>

<tr>
<td valign="top" width="182">
<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="66">
<p align="right"><b><font size="2" face="Times New Roman">8,674</font></b></p>
</td>
<td valign="top" width="27"><font size="2">&nbsp;</font></td>
<td valign="top" width="80">
<p align="right"><font size="2" face="Times New Roman">7,746</font></p>
</td>
</tr>

<tr>
<td valign="top" width="182">
<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="66" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">10,120</font></b></p>
</td>
<td valign="top" width="27"><font size="2">&nbsp;</font></td>
<td valign="top" width="80" 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="182"><font size="2">&nbsp;</font></td>
<td valign="top" width="32">
<p align="right"><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top" width="66" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><b><font size="2" face="Times New Roman">34,399</font></b></p>
</td>
<td valign="top" width="27">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" width="80" 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;&nbsp; Special Charges and Other
Expenses</font></p>

<p style="margin-left: 40"> <font size="2">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 as<font face="Times New Roman">s</font>ets may
be recoverable based upon the future operating cash flows expected to be
generated by those assets.&nbsp; 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; 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 six months ended June 30,
2002 as a cumulative effect of a change in accounting principle.</font></p>

<p><font size="2" face="Times New Roman">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long-Term Obligations</font></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  </font>
<font size="2">revolving</font><font size="2" face="Times New Roman"> 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 June 30, 2003, $33.1 million and $3.0 million,
respectively, were outstanding under the towing and recovery equipment segment and RoadOne portions of the revolving credit
facility. In addition, $2.0 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  </font>
<font size="2">and</font><font size="2" face="Times New Roman"> 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>


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<p align="left"><a href="#INDEX">Table of Contents</a></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" color="black" face="Times New Roman">
The subordinated credit facility (&#147;Junior Credit Facility&#148;) is by its terms
expressly subordinated only to the Senior Credit Facility.&nbsp; The Junior
Credit Facility matured and was due and payable on July 23, 2003, under which
$13.8 million was outstanding at June 30, 2003.&nbsp; The Company has not yet
repaid or refinanced the outstanding principal and interest under the Junior
Credit Facility.&nbsp; The Company&#146;s failure to repay all outstanding principal,
interest and any other amounts due and owing under the Junior Credit Facility on
the maturity date constituted an event of default under the Junior Credit
Facility and also triggered an event of default under the Senior Credit Facility
cross-default provisions.&nbsp;Pursuant to the terms of the Intercreditor Agreement
(defined below), the junior lender agent and the junior lenders are prevented
from taking any enforcement action or exercising any remedies against the
Company, its subsidiaries or their respective assets in respect of such event of
default during a standstill period (the &#147;Standstill Period&#148;) which will expire
on the earlier of:&nbsp; (i) November 26, 2003 (the date which is 120 days after
the date that written notice was given by the junior lender agent to the senior
lender agent of its intent to commence an enforcement action as a result of the
occurrence of the Junior Credit Facility defaults), subject to extension by
notice from senior lender agent to junior lender agent to April 24, 2004 (the
date which is 270 days after the date that written notice was given by the
junior lender agent to the senior lender agent of its intent to commence an
enforcement action as a result of the occurrence of the Junior Credit Facility
defaults); (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.</font></p>

<p style="margin-left: 40"><font size="2" color="black" face="Times New Roman">On August 5, 2003, the senior agent gave a payment blockage notice to the
junior agent based upon certain events of default under the Senior Credit Facility, thereby preventing the junior agent and junior
lenders from receiving any payments from the Company in respect of the Junior Credit Facility while such blockage notice remains in
effect.&nbsp; Pursuant to the terms of the Intercreditor Agreement, such payment blockage period will expire on the earlier of (i)
February 1, 2004 (the date which is 180 days after the date that such payment blockage notice was given), subject to extension to
May 1, 2004 (the date which is 270 days after the date that such payment blockage notice was given) if the Standstill Period is
extended from November 26, 2003 to April 24, 2004 at the election of the senior lender agent by notice to the junior lender agent
as described above, or (ii) the date that the Senior Credit Facility defaults giving rise to such payment blockage notice have been
cured or waived.&nbsp; An event of default has also occurred under the Junior Credit Facility and the Senior
Credit Facility as a result of the auditor&rsquo;s report for the Company&rsquo;s December 31, 2002 financial statements including
an explanatory paragraph that referred to uncertainty about the Company&rsquo;s ability to continue as a going concern for a
reasonable period of time.&nbsp; These existing events of default under the Senior 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 events of default that
have occurred.</font></p>


<p align="center"><font face="Times New Roman" size="2">12<hr size="1" color="#000080" STYLE="page-break-after: always">

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

</font>

<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 June 30, 2003 consolidated balance sheets.&nbsp;
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 style="margin-left: 40"><font size="2" face="Times New Roman">The Company is currently in discussions with the lenders under the Junior Credit Facility
to extend the maturity date of the Junior Credit Facility and/or to refinance the Junior Credit Facility.&nbsp; The Company has
also entered into discussions with the lenders under the Senior Credit Facility to refinance the Senior Credit Facility.
There has been no agreement with respect to any such extension or refinancing and there can be no assurance that the Company will
be able to extend the maturity date of the Junior Credit Facility or refinance either or both Credit Facilities.&nbsp; If the
Company were to be unsuccessful in its efforts to refinance the Credit Facilities, the Company might be required to seek bankruptcy
court or other protection from its creditors.</font></p>

<p><font size="2" face="Times New Roman">8.&nbsp;&nbsp;&nbsp;&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
six months ended June 30, 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">
<table border="0" cellspacing="0" cellpadding="0" width="640" style="border-collapse: collapse" bordercolor="#111111">

<tr>
<td valign="top" width="365"><font size="2">&nbsp;</font></td>
<td valign="top" width="137" colspan="2" align="center">
<font size="2">Three Months Ended<br>
June 30,</font></td>
<td valign="top" width="138" colspan="2" align="center">
<font size="2">Six Months Ended<br>
June 30,</font></td>
</tr>

<tr>
<td valign="top" width="365"><font size="2">&nbsp;</font></td>
<td valign="top" width="68">
<p align="center"><u><font size="2" face="Times New Roman">2003</font></u></p>
</td>
<td valign="top" width="69">
<p align="center"><u><font size="2" face="Times New Roman">2002</font></u></p>
</td>
<td valign="top" width="69">
<p align="center"><u><font size="2" face="Times New Roman">2003</font></u></p>
</td>
<td valign="top" width="69">
<p align="center"><u><font size="2" face="Times New Roman">2002</font></u></p>
</td>
</tr>

<tr>
<td valign="top" width="365">
<p style="margin-top: 5"><font size="2" face="Times New Roman">Net loss available to common stockholders, as<br>
reported</font></p>
</td>
<td valign="top" width="68">
<p align="center" style="margin-top: 5"><font size="2" face="Times New Roman">$(493)</font></p>
</td>
<td valign="top" width="69">
<p align="center" style="margin-top: 5"><font size="2" face="Times New Roman">$(342)</font></p>
</td>
<td valign="top" width="69">
<p align="center" style="margin-top: 5"><font size="2" face="Times New Roman">$(1,053)</font></p>
</td>
<td valign="top" width="69">
<p align="center" style="margin-top: 5"><font size="2" face="Times New Roman">$(22,389)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="365">
<p style="margin-left: 20"><font size="2" face="Times New Roman">Add:&nbsp; Stock-based employee compensation<br>
&nbsp;&nbsp;&nbsp;&nbsp;expense included in reported net loss, net of <br>
&nbsp;&nbsp;&nbsp;&nbsp;related tax effects</font></p>
</td>
<td valign="bottom" width="68">

<p align="center"><font size="2" face="Times New Roman">--</font></p>
</td>
<td valign="bottom" width="69">

<p align="center"><font size="2" face="Times New Roman">--</font></p>
</td>
<td valign="bottom" width="69">

<p align="center"><font size="2" face="Times New Roman">--</font></p>
</td>
<td valign="bottom" width="69">

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

<tr>
<td valign="top" width="365">
<p style="margin-left: 20"><font size="2" face="Times New Roman">Deduct:&nbsp; Total stock-based employee compensation<br>
&nbsp;&nbsp;&nbsp;&nbsp;expense determined under fair value
based method<br>
&nbsp;&nbsp;&nbsp;&nbsp;for all awards, net of related tax effects</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1" width="68">
<p align="center"><font size="2" face="Times New Roman">(74)</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1" width="69">
<p align="center"><font size="2" face="Times New Roman">(18)</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1" width="69">
<p align="center"><font size="2" face="Times New Roman">(156)</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1" width="69">
<p align="center"><font size="2" face="Times New Roman">(247)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="365">
<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" width="68">
<p align="center"><font size="2" face="Times New Roman">$(567)</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" width="69">
<p align="center"><font size="2" face="Times New Roman">$(360)</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" width="69">
<p align="center"><font size="2" face="Times New Roman">$(1,209)</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" width="69">
<p align="center"><font size="2" face="Times New Roman">$(22,636)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="365">
<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" width="68">

<p align="center"><font size="2" face="Times New Roman">$(0.05)<br>
$(0.06)</font></p>

</td>
<td valign="bottom" style="border-top-style: solid; border-top-width: 1" width="69">

<p align="center"><font size="2" face="Times New Roman">$(0.04)<br>
$(0.04)</font></p>

</td>
<td valign="bottom" style="border-top-style: solid; border-top-width: 1" width="69">
<p align="center"><font size="2" face="Times New Roman">$(0.11)<br>
$(0.13)</font></p>

</td>
<td valign="bottom" style="border-top-style: solid; border-top-width: 1" width="69">

<p align="center"><font size="2" face="Times New Roman">$(2.40)<br>
$(2.42)</font></p>

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


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

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

</font>

<p><font size="2" face="Times New Roman">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Commitments and
Contingencies</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">The Company is,
from time to time, a party to litigation arising in the normal course of its
business.&nbsp; 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.&nbsp;
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.&nbsp; 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">10.&nbsp;&nbsp;&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.&nbsp; An additional $1.7 million of deferred tax assets and
offsetting valuation allowance was recorded for the six months ended June 30,
2003.</font></p>

<p><font size="2" face="Times New Roman">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Recent Accounting Pronouncements</font></p>

<p style="margin-left: 40"> <font size="2">No new
pronouncements have been or are to be adopted by the Company that are expected to have a material impact on the Company&rsquo;s
financial position, results of operations or cash flows<font face="Times New Roman">.</font></font></p>

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



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

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

<p style="margin-left: 40"><font size="2" face="Times New Roman">The Company&rsquo;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 matured on July 23, 2003.&nbsp; The Senior and Junior 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&rsquo;s ability to continue as a going
concern.</font></p>

<p style="margin-left: 40"><i><font size="2" face="Times New Roman">New York Stock Exchange Listing Standards</font></i></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">The Company has
received notification from the New York Stock Exchange (NYSE) on June 26, 2003
that, based on market information and information in the Company&#146;s recent public
filings, it is not in compliance with the NYSE&#146;s continued listing standards.&nbsp;
The NYSE requires shareholders&#146; equity of not less than $50.0 million and a 30-day
average market capitalization of $50.0 million.&nbsp; The Company&#146;s
shareholders&#146; equity was $40.1 million, as reported in the Company&#146;s March 31,
2003 Form 10-Q filed with the Securities and Exchange Commission on May 22,
2003.&nbsp; As of May 27, 2003, the Company had a 30-day average market
capitalization of $28.9 million.</font></p>


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

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

</font>

<p style="margin-left: 40"><font size="2" face="Times New Roman">The Company has
compiled a three-pronged plan for regaining compliance with the continued listing standards.&nbsp; The Company&rsquo;s plan is to
restructure the Company&rsquo;s bank facilities and rationalize the timing of the Company&rsquo;s debt service, dispose of the
Company&rsquo;s remaining RoadOne and distributor operations within the time period specified and focus all of the Company&rsquo;s
resources, manpower as well as financial, on returning the manufacturing operations to their historically profitable levels.&nbsp;
The NYSE may take up to 45 days to review and evaluate the plan after it is submitted.&nbsp; If the plan is accepted, the Company
will be subject to quarterly monitoring for compliance by the NYSE.&nbsp; If the NYSE does not accept the plan, the Company will be
subject to NYSE trading suspension and delisting.&nbsp; In that event, the Company would pursue listing on an alternative national
securities exchange.</font></p>

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

<p style="margin-left: 40"><font size="2" face="Times New Roman">During the year ended December 31, 2002, the Company's management and its 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. 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 style="margin-left: 40"><b><font size="2" face="Times New Roman"> <i>Results of
Operations--Three Months Ended June 30, 2003 Compared to Three Months Ended June 30,&nbsp;2002</i></font></b></p>

<p style="margin-left: 40">
<i><font size="2">Continuing Operations</font></i></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">Net sales of
towing and recovery equipment for the three months ended June 30, 2003,
decreased 5.5% to $51.2 million from $54.2 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 of towing and recovery equipment operations for the three months
ended June 30, 2003, decreased 4.9% to $44.2 from $46.5 million for the
comparable period in 2002, reflecting the aforementioned decrease in sales
volume.&nbsp; Costs of operations increased slightly as a percentage of net
sales from 85.9% to 86.5%.&nbsp;</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">Towing services sales and towing services cost of operations reflect the change in status
during the three months ended June 30, 2003 of certain towing services markets from discontinued to continuing operations based on
certain on-going cash flows provided for under the disposal agreements.&nbsp; The loss on disposal recognized during the period is
also attributable to this transaction.</font></p>



<p style="margin-left: 40">
<font size="2">Selling, general, and administrative expenses for the three months ended June 30, 2003, decreased to $4.3 million
from $4.9 million for the three months ended June 30, 2002 reflecting the Company&rsquo;s ongoing focus on operating cost
control.</font></p>


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<p style="margin-left: 40"><font size="2" face="Times New Roman">Net interest
expense decreased $0.5 million to $0.7 million for the three months ended June
30, 2003 from $1.2 million for the three months ended June 30, 2002 reflecting
the current interest rate environment in the Company&#146;s ongoing efforts to reduce
debt levels.</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 June 30,
2003 reflects the combined effective US federal and state tax rate of 38%, net
of tax benefit related to the Company&#146;s foreign tax liability.&nbsp; The
provision for the three months ended June 30, 2002 reflects a similar effective
US federal and state rate, plus additional taxes on foreign income for the
period.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman"> <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 $18.3 million for the three months ended
June 30, 2003 from $48.7 million for the three months ended June 30, 2002.&nbsp;
Net sales of the distribution group were $15.1 million for the three months
ended June 30, 2003 compared to $21.0 million for the three months ended June
30, 2002. Revenues for the distribution group were negatively impacted by cost
pressures facing its customers and current tightness in the credit markets.&nbsp;
Additionally, revenues were negatively impacted by the disposition of one
distribution operation at the beginning of the quarter.&nbsp; Net sales for the
towing and recovery services segment were $3.3 million for the three months
ended June 30, 2003 compared to $27.7 million for the three months ended June
30, 2002.&nbsp; Revenues of the towing services segment decreased because of the
ongoing sales of the market locations over the past two years.</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 91.1% for the three
months ended June 30, 2003 compared to 91.6% for the three months ended June 30,
2002.&nbsp; The slight decrease is primarily the result of decreases in sales
volume as explained above. Cost of sales for the towing services segment was
63.1% for the three months ended June 30, 2003 compared to 84.6% for the three
months ended June 30, 2002.&nbsp; This decrease resulted from ongoing cost
controls in the remaining 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 9.3% for the
distribution group and 69.6% for the towing services segment for the three
months ended June 30, 2003 compared to 8.6% and 19.1% respectively, for the
three months ended June 30, 2002.&nbsp; Increases for the towing services
segment were primarily the result of increased insurance costs for the remaining
operations spread over a smaller revenue base, slightly offset by reduced
personnel costs.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">Net interest expense of
discontinued operations decreased $0.1 million from $1.4 million for the three months ended June 30, 2002 to $1.3 million for the
three months ended June 30, 2003 as a result of decreased borrowings under the Company&rsquo;s RoadOne revolving credit
facility.&nbsp;</font></p>

<p style="margin-left: 40"><b><i><font size="2" face="Times New Roman">Results of Operations &ndash; Six Months Ended June 30, 2003 Compared to Six Months
Ended June 20, 2002.</font></i></b></p>

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

<p style="margin-left: 40"><font size="2" face="Times New Roman">Nets sales for towing and recovery equipment operations for the six months ended June 30,
2003, decreased 9.9% to $91.9 million from $102.0 million for the comparable period in 2002.&nbsp; Net sales deceased as demand for
the Company&rsquo;s towing and recovery equipment continued to be negatively impacted by cost pressures facing its customers and
the tightness of the current credit markets.&nbsp; In addition, the war with Iraq during the six months had a negative impact on
sales.</font></p>


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<p style="margin-left: 40"><font size="2" face="Times New Roman">Cost of operations for towing and recovery equipment operations for the six months ended
June 30, 2003, decreased to $79.0 million from $87.4 million for the six months ended June 30, 2002, reflecting the aforementioned
decrease in sales volume.&nbsp; Cost of operations increased slightly as a percentage of net sales from 85.7% to 86.0%.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">Towing services sales and towing services cost of operations reflect the change in status
during the six months ended June 30, 2003 of certain towing services markets from discontinued to continuing operations based on
certain on-going cash flows provided for under the disposal agreements.&nbsp; The loss on disposal recognized during the period is
also attributable to this transaction.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">Selling, general, and administrative expenses for the six months ended June 30, 2003,
decreased to $8.2 million from $9.1 million for the six months ended June 30, 2002 reflecting the Company&rsquo;s ongoing focus on
operating cost control.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">Net interest expenses decreased $0.5 million to $1.4 million for the six month ended June
30, 2003 from $1.9 million for the six months ended June 30, 2002 reflecting the current interest rate environment in the
Company&rsquo;s ongoing efforts to reduce debt levels.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">The provision for income taxes for continuing operations for the six months ended June 30,
2003 reflects combined effective US federal and state tax rate of 38%, net of tax benefit related to the Company&rsquo;s foreign
tax liability.&nbsp; The provision for the six months ended June 30, 2002 reflects similar effective US federal and state tax rate,
plus additional taxes on foreign income for the period.</font></p>

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

<p style="margin-left: 40"><font size="2" face="Times New Roman">Net sales from discontinued operations decreased $58.4 million for the six months ended
June 30, 2003, from $97.6 million for the six months ended June 30, 2002, to $39.2 million for the six months ended June 30,
2003.&nbsp; Net sales of the distribution group were $31.7 million for the six months ended June 30, 2003 compared to $43.5 million
for the six months ended June 30, 2002.&nbsp; Revenues for the distribution group were negatively impacted by cost pressures facing
its customers and current tightness in the credit markets and by the disposition of one distribution operation at the beginning of
the quarter.&nbsp; Net sales for the towing and recovery services segment were $7.5 million for the six months ended June 30, 2003
compared to $54.1 million for the six months ended June 30, 2002.&nbsp; Revenues of the towing services decreased because of the
ongoing sales of the market locations over the past two years.</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 92.4% for the
six months ended June 30, 2003 compared to 91.9% for the six months ended June 30, 2002.&nbsp; The increase was primarily the
result of decreases in sales volume as explained above.&nbsp; Cost of sales for the towing services segment was 73.5% for the six
months ended June 30, 2003 compared to 84.9% for the six months ended June 30, 2002.&nbsp; This decrease resulted from the ongoing
cost controls in the remaining 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 7.9% for the
distribution group and 57.0% for the towing services segment for the six months ended June 30, 2003 compared to 8.5% and 20.6%
respectively, for the six months ended June 30, 2002.&nbsp; The decrease for the distribution group reflects the Company&rsquo;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 spread over a smaller revenue base, slightly offset by reduced personnel
costs.</font></p>


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<p style="margin-left: 40"><font size="2" face="Times New Roman">Net interest expense of discontinued operations decreased $0.5 million from $2.8 million
for the six months ended June 30, 2002 to $2.3 million for the six months ended June 30, 2003 as a result of decreased borrowings
under the Company&rsquo;s RoadOne revolving credit facility.</font></p>

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

<p style="margin-left: 40"><font size="2" face="Times New Roman">Cash used in
operating activities was $0.6 million for the six months ended June 30, 2003,
compared to $11.1 million provided by operating activities for the comparable
period of 2002.&nbsp; The cash used in operating activities for the three months
ended June 30, 2003 was primarily used in discontinued operations reflecting
decreases in accounts payable and accrued liabilities.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">Cash provided
by investing activities was $6.1 million for the six months ended June 30, 2003,
compared to $0.4 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 $5.6 million for the six months ended June 30, 2003 and
$13.3 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 style="margin-left: 40"><b><i><font size="2" face="Times New Roman">Credit
Facilities</font></i></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 its then 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&rsquo;s property, plant, and
equipment.&nbsp; The Company is required to make monthly amortization payments on the term loan of $167,000.&nbsp; The 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.&nbsp;</font>
<font size="2" color="black">A total of $38.1 million (continuing and discontinued operations) was
outstanding under the Senior Credit Facility at June 30, 2003.&nbsp;</font></p>

<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.&nbsp; The Senior Credit Facility contains requirements related to maintaining minimum
excess availability at all times and minimum quarterly levels of earnings before income taxes, depreciation and amortization (as
defined) and a minimum quarterly fixed charge coverage ratio (as defined).&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>


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<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 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 0.5% of the outstanding shares of the Company&rsquo;s common stock (47,417 shares) in July, 2002 and an additional
1.5% (138,611 shares) on July 23, 2003 with an exercise price equal to the then fair market value of the Company&rsquo;s common
stock.  The Junior Credit Facility contains requirements for the maintenance of certain
financial covenants.&nbsp; It also 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" face="Times New Roman">The Junior Credit Facility, under which $13.8 million was outstanding at
June 30, 2003, matured on July 23, 2003 and bears interest at a default rate of
10.0% over the prime rate.  The Company has not yet repaid or refinanced the outstanding principal
and interest under the Junior Credit Facility.  The Company&rsquo;s failure to repay all outstanding principal, interest and any other
amounts due and owing under the Junior Credit Facility on the maturity date constituted an event of default under the Junior Credit
Facility and also triggered an event of default under the Senior Credit Facility cross-default provisions.&nbsp;
The Company is also 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 its Annual Report prior to April
30, 2003.  Additionally, the Company is in default of the EBITDA covenant under the Junior Credit Facility only for the first
quarter of calendar 2003.&nbsp;</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">Pursuant to the terms of the Intercreditor Agreement, the
junior lender agent and the junior lenders are prevented from taking any enforcement action or exercising
any remedies against the Company, its subsidiaries or their respective assets in respect of such event of default during a
standstill period (the &ldquo;Standstill Period&rdquo;).&nbsp; On July 29, 2003, the junior lender agent gave a notice of
enforcement to the senior lender agent based upon the event of default for failure to repay the outstanding obligations under the
Junior Credit Facility on the Junior Credit Facility&rsquo;s maturity date.&nbsp; This notice of enforcement began the running of
the Standstill Period which will expire on the earlier of:&nbsp; (i) November 26, 2003 (the date which
is 120 days after the date that written notice was given by the junior lender agent to the senior lender
agent of its intent to commence an enforcement action as a result of the occurrence of the Junior Credit Facility defaults),
subject to extension by notice from senior lender agent to junior lender agent to April 24, 2004 (the
date which is 270 days after the date that written notice was given by the junior lender agent to the
senior lender agent of its intent to commence an enforcement action as a result of the occurrence of the Junior Credit Facility
defaults); (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.</font></p>

<p style="margin-left: 40"><font size="2" color="black" face="Times New Roman">On August 5, 2003, the senior agent gave a payment blockage notice to the
junior agent based upon certain events of default under the Senior Credit Facility, thereby preventing the junior agent and junior
lenders from receiving any payments from the Company in respect of the Junior Credit Facility while such blockage notice remains in
effect.&nbsp; Pursuant to the terms of the Intercreditor Agreement, such payment blockage period will expire on the earlier of (i)
February 1, 2004 (the date which is 180 days after the date that such payment blockage notice was given), subject to extension to
May 1, 2004 (the date which is 270 days after the date that such payment blockage notice was given) if the Standstill Period is
extended from November 26, 2003 to April 24, 2004 at the election of the senior lender agent by notice to the junior lender agent
as described above, or (ii) the date that the Senior Credit Facility defaults giving rise to such payment blockage notice have been
cured or waived.</font></p>


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<p style="margin-left: 40"><font size="2" color="black" face="Times New Roman">These existing events of default under the Senior
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 events of default that have occurred. The Company is currently in discussions with the lenders under the Junior Credit Facility
to extend the maturity date of the Junior Credit Facility and/or to refinance the Junior Credit Facility.&nbsp; The Company has
also entered into discussions with the lenders under the Senior Credit Facility to refinance the Senior Credit Facility.&nbsp;
There has been no agreement with respect to any such extension or refinancing and there can be no assurance that the Company will
be able to extend the maturity date of the Junior Credit Facility or refinance either or both Credit Facilities.
If the Company were to be unsuccessful in its efforts to refinance the Credit Facilities, the Company might 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 $3.6 million of mortgage
notes payable, equipment notes payable and other long-term obligations at June 30, 2003.&nbsp; The Company also had approximately
$12.4 million in non-cancellable operating lease obligations $11.2 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><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>


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

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

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

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

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

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

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

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

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

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


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</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" face="Times New Roman">The Company is,
from time to time, a party to litigation arising in the normal course of its
business.&nbsp; 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.&nbsp;
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.&nbsp; 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: 90"><font size="2" face="Times New Roman">31.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Certification of Jeffrey I. Badgley, President and Chief Executive Officer of Miller Industries, Inc., pursuant to rule 13a-14(a)
or 15d-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.</font></p>

<p style="margin-left: 90"><font size="2" face="Times New Roman">31.2</font><font size="2" face="Arial Unicode
MS">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> <font size="2">Certification of J.
Vincent Mish, Executive Vice President and Chief Financial Officer of Miller Industries, Inc., pursuant to rule 13a-14(a) or
15d-14(a) of the Exchange Act, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002<font face="Times New Roman">.</font></font></p>

<p style="margin-left: 90"><font size="2" face="Times New Roman">32.1</font><font size="2" face="Arial Unicode
MS">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> <font size="2">Certification of
Jeffrey I. Badgley, President and Chief Executive Officer of Miller Industries, Inc., pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002<font face="Times New Roman">.</font></font></p>

<p style="margin-left: 90"><font size="2" face="Times New Roman">32.2</font><font size="2" face="Arial Unicode
MS">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> <font size="2">Certification of J.
Vincent Mish, Executive Vice President and Chief Financial Officer of Miller Industries, Inc., pursuant to 18 U.S.C. Section 1350,
as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002<font face="Times New Roman">.</font></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; The Registrant
filed a report on Form 8-K on May 30, 2003 under Item 12.</font></p>

<p>&nbsp;</p>

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

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

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

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

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

<p><font face="Times New Roman" size="2">&nbsp;</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"><a href="#INDEX">Table of Contents</a></p>

</font>

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

<p style="text-indent: 60"><font size="2" face="Times New Roman">Pursuant to the
requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934,
Miller Industries, Inc. has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="613">
<tr>
<td valign="top" width="382"><font size="2">&nbsp;</font></td>
<td valign="top" width="231">
<p><font size="2" face="Times New Roman">MILLER INDUSTRIES, INC.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="382"><font size="2">&nbsp;</font></td>
<td valign="top" width="231"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="382"><font size="2">&nbsp;</font></td>
<td valign="top" width="231"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="382"><font size="2">&nbsp;</font></td>
<td valign="top" width="231">
<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;</i></b></font></u></font></p>
</td>
</tr>

<tr>
<td valign="top" width="382"><font size="2">&nbsp;</font></td>
<td valign="top" width="231">
<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="382"><font size="2">&nbsp;</font></td>
<td valign="top" width="231">
<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="382"><font size="2">&nbsp;</font></td>
<td valign="top" width="231">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer</font></p>
</td>
</tr>
</table>

<p><font size="2" face="Times New Roman">Date:&nbsp;&nbsp;&nbsp; August 19, 2003</font></p>

<p>&nbsp;</p>
<p align="center"><font size="2">23</font></p>
</body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.1
<SEQUENCE>3
<FILENAME>ex311.htm
<DESCRIPTION>CERTIFICATION
<TEXT>
<html>

<head>
<title>Certification</title>
</head>

<body>

<p align="right">

<b>Exhibit 31.1</b></p>

<p align="center">

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

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

<ol style="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 a material fact or
  omit to state a material fact necessary to make the statements made, in light
  of the circumstances under which such statements were made, not misleading
  with respect to the period covered by this quarterly report;<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-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-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-size: 10pt" type="a">
    <li><font size="2" face="Times New Roman">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-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; August 19, 2003</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="659">
<tr>
<td valign="top" width="391"><font size="2">&nbsp;</font></td>
<td valign="top" width="268">
<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="391"></td>
<td valign="top" width="268">
<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">&nbsp;</p>

</body>

</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31.2
<SEQUENCE>4
<FILENAME>ex312.htm
<DESCRIPTION>CERTIFICATION
<TEXT>
<html>

<head>
<title>Certification</title>
</head>

<body>

<p align="right">

<b>Exhibit 31.2</b></p>

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

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

<ol style="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 a material fact or
  omit to state a material fact necessary to make the statements made, in light
  of the circumstances under which such statements were made, not misleading
  with respect to the period covered by this quarterly report;<br>
&nbsp;</font></li>
  <li><font size="2" face="Times New Roman">&nbsp;Based on my knowledge, the
  financial statements, and other financial information included in this
  quarterly report, fairly present in all material respects the financial
  condition, results of operations and cash flows of the registrant as of, and
  for, the periods presented in this quarterly report;<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-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&rsquo;s disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report
(the &ldquo;Evaluation Date&rdquo;); and<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-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-size: 10pt" type="a">
    <li><font size="2" face="Times New Roman">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 start="6" style="font-size: 10pt">
  <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; August 19, 2003</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="695">
<tr>
<td valign="top" width="331">&nbsp;</td>
<td valign="top" width="364">
<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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>
</td>
</tr>

<tr>
<td valign="top" width="331">&nbsp;</td>
<td valign="top" width="364">
<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>&nbsp;</p>

</body>

</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32.1
<SEQUENCE>5
<FILENAME>ex321.htm
<DESCRIPTION>CERTIFICATION
<TEXT>
<html>

<head>
<title>Certification</title>
</head>

<body>

<p align="right"><b>EXHIBIT 32.1</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 June 30, 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: August 19, 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;&nbsp;&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;&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-32.2
<SEQUENCE>6
<FILENAME>ex322.htm
<DESCRIPTION>CERTIFICATION
<TEXT>
<HTML>
<head>
<meta name="GENERATOR" content="Microsoft FrontPage 5.0">
<meta name="ProgId" content="FrontPage.Editor.Document">
<title>Certification</title>
</head>


<body>

<p align="right"><b>EXHIBIT 32.2</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 June 30, 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: August 19, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>
</u>J. Vincent Mish<br>
Executive Vice President and<br>
Chief Financial Officer</font></p>

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

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

</body>

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