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<SEC-DOCUMENT>0001107049-04-000061.txt : 20040120
<SEC-HEADER>0001107049-04-000061.hdr.sgml : 20040119
<ACCEPTANCE-DATETIME>20040120060451
ACCESSION NUMBER:		0001107049-04-000061
CONFORMED SUBMISSION TYPE:	PRER14A
PUBLIC DOCUMENT COUNT:		6
FILED AS OF DATE:		20040120

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:		PRER14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14124
		FILM NUMBER:		04530777

	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>PRER14A
<SEQUENCE>1
<FILENAME>millerpreproxyamd2.htm
<DESCRIPTION>NOTICE AND PROXY STATEMENT - AMENDMENT NO. 2
<TEXT>
<html>
<head>
<title>Miller Industries, Inc. Preliminary Notice and Proxy Statement</title>
</head>
<body>

<p
 align="center"><b><font
 size="2"
 face="Times New Roman">SCHEDULE 14A<br>
INFORMATION REQUIRED IN PROXY STATEMENT<br>
SCHEDULE 14A INFORMATION</font></b></p>

<p
 align="center"><font
 size="2"
 face="Times New Roman"><b>Proxy Statement Pursuant to Section 14(a)
of the<br>
Securities Exchange Act of 1934<br>
(Amendment No. 2)</b></font></p>

<p><font
 size="2"
 face="Times New Roman">Filed by the Registrant&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><FONT FACE="Wingdings 2" size="2">&#83;</FONT><font face="Wingdings"><br>
</font><font
 size="2"
 face="Times New Roman">Filed by a Party other than the Registrant&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font face="Wingdings" size="2">&#168;<br>
</font><font
 size="2"
 face="Times New Roman">Check the appropriate box:<br>
</font><FONT FACE="Wingdings 2" size="2">&#83;</FONT><font
 size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Preliminary Proxy
Statement<br>
<font face="Wingdings">&#168;</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Confidential, for Use of&nbsp;
the Commission Only (as permitted by Rule 14a-6(e)(2))<br>
<font face="Wingdings">&#168;</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Definitive Proxy
Statement<br>
<font face="Wingdings">&#168;</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Definitive Additional
Materials<br>
<font face="Wingdings">&#168;</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Soliciting Material Under Rule
14a-12</font></p>

<p
 align="center"><b><u><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;</font><font
 size="4"
 face="Times New Roman">Miller Industries, Inc.
</font><font
 size="2"
 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<br>
</font></u></b><font
 size="2"
 face="Times New Roman">(Name of Registrant as Specified in its Charter)</font></p>

<p
 align="center"><b><u><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;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N/A&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>
</font></u></b><font
 size="2"
 face="Times New Roman">(Name of Person(s) Filing Proxy Statement, if other than the Registrant)</font></p>

<p><font
 size="2"
 face="Times New Roman">Payment of Filing Fee (Check the appropriate box):<br>
</font><font
 size="2">&nbsp; </font><FONT FACE="Wingdings 2" size="2">&#83;</FONT><font
 size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No fee required.<br>
&nbsp;&nbsp;<font face="Wingdings">&#168;</font><b>&nbsp;&nbsp;</b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fee computed on table below per Exchange Act Rules
14a-6(i)(1) and 0-11.</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;
(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Title of each class of securities to
which transaction applies:</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;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
N/A&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p>

<p><font
 size="2"
 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aggregate number of class of
securities to which transaction applies:</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;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
N/A&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p>

<p><font
 size="2"
 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;Per unit price or other underlying value of transaction computed
pursuant to Exchange Act Rule 0-11<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(set forth the amount on which the filing fee is calculated and state how it was
determined):</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;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
N/A&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p>

<p><font
 size="2"
 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proposed maximum aggregate value of
transaction:</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;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
N/A&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p>

<p><font
 size="2"
 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total fee paid:</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;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
N/A&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p>

<p><font
 size="2"
 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>
 <font
 size="2">&nbsp;<font face="Wingdings">&#168;</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Check box if any part of the
fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fees was paid
previously.&nbsp; Identify the previous filing by registration statement number or the form or schedule and the date of its
filing.<br>
</font><font
 size="2"
 face="Times New Roman">&nbsp;<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amount previously paid:&nbsp;&nbsp;
<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
N/A&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p>

<p><font
 size="2"
 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Form, Schedule or Registration
Statement No.:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
N/A&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p>

<p><font
 size="2"
 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Filing
Party:<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
N/A&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p>

<p><font
 size="2"
 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Date Filed:
<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
N/A&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></p>


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

<p align="center">
<img border="0" src="millerlogo.jpg" width="213" height="45"><br>
<b><font size="2" face="Times New Roman">8503 Hilltop Drive,<br>
Ooltewah, Tennessee&nbsp; 37363<br>
(423) 238-4171</font></b></p>

<p align="center"><b><font size="2" face="Times New Roman">NOTICE OF ANNUAL MEETING OF SHAREHOLDERS</font></b></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Annual Meeting of Shareholders of Miller Industries, Inc. (the &ldquo;Company&rdquo;) will be held at
9:00 a.m. (Eastern
Time), on _____________________, 2004, at 1100 Peachtree Street, Suite 2800, Atlanta, Georgia 30309, for the following
purposes:</font></p>

<ol style="font-family: Times New Roman; font-size: 10pt">
  <li>

<p style="margin-left: 40"><font size="2">To elect five (5) directors to hold office for a term of one (1) year or until their successors are duly elected
and qualified;<br>
&nbsp;</font></p>

  </li>
  <li>

<p style="margin-left: 40"><font size="2">To consider and act upon a proposal to approve the Non-Employee Director Stock Plan, as described in the
accompanying proxy statement;<br>
&nbsp;</font></p>

  </li>
  <li>

<p style="margin-left: 40"><font size="2">To consider and act upon an Exchange Proposal (as defined in the accompanying proxy statement), which entails the
issuance of shares of the Company&rsquo;s Common Stock to an entity owned by certain executive officers of the Company in exchange
for subordinated notes and warrants of the Company; and<br>
&nbsp;</font></p>

  </li>
  <li>

<p style="margin-left: 40"><font size="2">To transact such other business as may properly come before the meeting or any adjournment thereof.</font></p>

  </li>
</ol>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Only shareholders of record at the close of business on ___________, 2004 are entitled to notice of and to vote at the Annual
Meeting.&nbsp; Your attention is directed to the Proxy Statement accompanying this notice for a complete statement regarding
matters to be acted upon at the Annual Meeting.</font></p>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="678">
  <tr>
    <td width="295" style="border-right-style: none; border-right-width: medium">&nbsp;</td>
    <td width="374" style="border-style: none; border-width: medium"><font size="2" face="Times New Roman">By order of the Board of Directors,</font><p><font size="2" face="Times New Roman">&nbsp;</font></p>

<p><b><i><font size="3" face="Times New Roman">/s/ Frank Madonia<br />
</font></i></b><font size="2">Frank Madonia<br />
Secretary</font></p>

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

<p><font size="2" face="Times New Roman">Atlanta, Georgia<br />
____________, 2004</font></p>

<table border="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" cellpadding="0">
<tr>
<td style="border-style:double">
<p style="margin: 10; "><b><font size="2" face="Times New Roman"><br>
We urge you to attend the Annual Meeting.&nbsp; Whether or not you plan to attend,
please complete, date and sign the enclosed proxy card and return it in the enclosed postage-paid envelope.&nbsp; You may revoke
the proxy at any time before it is voted.<br>
&nbsp;</font></b></p>
</td>
</tr>
</table>
<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>
<font size="2" face="Times New Roman"><hr size="1" color="#000080" STYLE="page-break-after: always"></font>

<p align="center"><b><font size="2" face="Times New Roman">MILLER INDUSTRIES, INC.<br />
8503 Hilltop Drive,<br />
Ooltewah, Tennessee&nbsp; 37363<br />
(423) 238-4171</font></b></p>

<p align="center"><b><font size="2" face="Times New Roman">PROXY STATEMENT FOR<br />
ANNUAL MEETING OF SHAREHOLDERS</font></b></p>

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

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The accompanying proxy is solicited by the Board of Directors of Miller Industries, Inc. (the &ldquo;Company&rdquo;) for use at the
Annual Meeting of Shareholders to be held at 1100 Peachtree Street, Suite 2800, Atlanta, Georgia 30309, on
_____, _________, 2004, at 9:00 a.m. (Eastern Time), and any adjournment thereof, for the purposes set forth in the foregoing Notice of Annual
Meeting of Shareholders.&nbsp; This proxy material was first mailed to shareholders on or about
__________, 2004.</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;
A shareholder who signs and returns a proxy may revoke the same at any time before the authority granted thereby is exercised by
attending the Annual Meeting and electing to vote in person, by filing with the Secretary of the Company a written revocation or by
duly executing a proxy bearing a later date.&nbsp; Unless revoked, the shares represented by the proxy will be voted at the Annual
Meeting.&nbsp; Where a choice is specified on the proxy, the shares represented thereby will be voted in accordance with such
specifications.&nbsp; If no specification is made, such shares will be voted <b>FOR</b> the election of the five director nominees,
approval of the Exchange Proposal
and in the discretion of the proxy holders on any other matter that may properly come before the meeting,
but will not be voted <b>FOR</b> approval of the Non-Employee Director Stock
Plan.</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;
The election of the nominees to the Board of Directors requires a plurality of the votes cast by holders of shares of Common Stock
entitled to vote at the Annual Meeting.&nbsp; Unless instructed to the contrary in the proxy, the shares represented by proxies
will be voted <b>FOR</b> the election of the five director nominees.</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;
The approval of the Non-Employee Director Stock Plan requires affirmative votes by the holders of a majority of the outstanding shares of
the Company.&nbsp; Abstentions and broker non-votes (proxies received from brokers or other nominees holding shares on behalf of
their clients who have not been given specific voting instructions from their clients with respect to non-routine matters) would
have the effect of a negative vote for the amendment to the Charter and the adoption of the
Non-Employee Director Stock&nbsp; Plan.</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;
The approval of the issuance of shares of the Company&rsquo;s Common Stock in
the Exchange Proposal requires an
affirmative vote of the majority of the votes cast on the proposal (provided that the total vote for the proposal represents over a
50% interest of all of the Company&rsquo;s Common Stock).&nbsp; Accordingly, abstentions or broker non-votes will not affect the
outcome of the vote on this proposal.&nbsp; Unless instructed to the contrary in the proxy, the shares represented by proxies will
be voted <b>FOR</b> the proposal to approve the issuance of shares of the Company&rsquo;s Common Stock in exchange for a portion of
the Company&rsquo;s subordinated debt.&nbsp;</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;
The Board of Directors knows of no other matters which are to be brought to a vote at the Annual Meeting.&nbsp; However, if any
other matter properly does come before the Annual Meeting, the persons appointed in the proxy or their substitutes will vote in
accordance with their best judgment on such matters.</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;
Only holders of the Common Stock of the Company, $0.01 par value per share (the &ldquo;Common Stock&rdquo;), at the close of
business on __________, 2004 are entitled to vote at the Annual Meeting.&nbsp; On such date, the Company had issued and
outstanding _____________ shares of Common Stock.&nbsp; Holders of the Common Stock will be entitled to one vote for each share of
Common Stock so held, which may be given in person or by proxy duly authorized in writing.</font></p>
<P><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The cost of solicitation of
proxies will be borne by the Company, including expenses in connection with
preparing, assembling and mailing this Proxy Statement.&nbsp; The Company has
retained Georgeson Shareholder Communications, Inc. to solicit proxies, by
telephone, in person or by mail, for a fee of $7,000 plus certain expenses and
per-call telephone charges.&nbsp; In addition,&nbsp; the Company&#146;s executive officers or
employees, who will not receive compensation for their services other than their
regular salaries, may solicit proxies personally or by telephone.&nbsp; The Company
does not anticipate paying any other compensation to any other party for
solicitation of proxies, but may reimburse brokerage firms and others for their
reasonable expenses in forwarding solicitation material to beneficial owners.
</font></P>
<p align="center"><font size="2" face="Times New Roman">1<hr size="1" color="#000080" STYLE="page-break-after: always"></font>

<p align="center"><b><font size="2" face="Times New Roman">SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT</font></b></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth, as of December 31, 2003, certain information with respect to (a) all shareholders known to be
&ldquo;beneficial owners&rdquo; (as that term is defined in the rules of the Securities and Exchange Commission)&nbsp; of more than
five percent of the Common Stock; and (b) the Common Stock &ldquo;beneficially owned&rdquo; (i) by each director or nominee for
director, (ii) by the executive officers named in the Summary Compensation Table and (iii) by all executive officers and directors
of the Company as a group.&nbsp; Except as otherwise indicated, the shareholders listed in the table have sole voting and
investment powers with respect to the Common Stock owned by them.</font></p>

<div align="center">
  <center>

<table border="0" cellspacing="0" width="643" style="border-collapse: collapse" bordercolor="#111111">
<tr>
<td valign="bottom" width="377" style="border-bottom-style: solid; border-bottom-width: 1" colspan="2" bgcolor="#FFFFFF">
<p align="center"><b><font size="2" face="Times New Roman">Name and Address of Beneficial Owner</font></b></p>
</td>
<td valign="bottom" width="33" bgcolor="#FFFFFF">
<p align="center"><b><font size="2" face="Times New Roman">&nbsp;&nbsp;</font></b></p>
</td>
<td valign="bottom" width="119" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFFFFF">
<p align="center"><b><font size="2" face="Times New Roman">Amount and Nature<br />
 of Beneficial<br />
 Ownership<sup>(1)</sup></font></b></p>
</td>
<td valign="bottom" width="31" bgcolor="#FFFFFF">&nbsp;</td>
<td valign="bottom" width="83" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFFFFF">
<p align="center"><b><font size="2" face="Times New Roman">Percent of<br />
 Class<sup>(1)</sup></font></b></p>
</td>
</tr>

<tr>
<td valign="top" width="377" style="border-top-style: solid; border-top-width: 1" colspan="2" bgcolor="#CCEEFF">
<p style="margin-top: 10"><font size="2" face="Times New Roman">William G. Miller<sup>(2)</sup></font></p>
</td>
<td valign="top" width="33" bgcolor="#CCEEFF">
<p style="margin-top: 10"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="89" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCEEFF">
<p align="right" style="margin-top: 10"><font size="2" face="Times New Roman">1,516,157<sup>(3)</sup></font></p>
</td>
<td valign="bottom" width="31" bgcolor="#CCEEFF">
<p style="margin-top: 10"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" width="63" style="border-top-style: solid; border-top-width: 1" bgcolor="#CCEEFF">
<p align="right" style="margin-top: 10"><font size="2" face="Times New Roman">16.2%</font></p>
</td>
</tr>

<tr>
<td valign="top" width="377" colspan="2" bgcolor="#FFFFFF">
<p><font size="2" face="Times New Roman">Account Management, LLC</font><sup><font face="Times New Roman"> </font>
</sup></p>
</td>
<td valign="top" width="33" bgcolor="#FFFFFF">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="89" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">823,530<sup>(4)</sup></font></p>
</td>
<td valign="bottom" width="31" bgcolor="#FFFFFF">
<p><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" width="63" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">8.8&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="377" colspan="2" bgcolor="#CCEEFF">
<p><font size="2" face="Times New Roman">Peter S. Lynch</font><sup><font face="Times New Roman"> </font>
</sup></p>
</td>
<td valign="top" width="33" bgcolor="#CCEEFF">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="89" bgcolor="#CCEEFF">
<p align="right"><font size="2" face="Times New Roman">682,600<sup>(5)</sup></font></p>
</td>
<td valign="bottom" width="31" bgcolor="#CCEEFF">
<p><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" width="63" bgcolor="#CCEEFF">
<p align="right"><font size="2" face="Times New Roman">7.3&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="bottom" width="213" bgcolor="#FFFFFF">
<font size="2" face="Times New Roman">Avocet Capital Management , L.P.</font><sup><font face="Times New Roman"> </font>
</sup>
</td>
<td width="164" bgcolor="#FFFFFF" rowspan="4">
&nbsp;&nbsp;<img border="0" src="bracket.gif" width="15" height="65"></td>
<td valign="top" width="33" bgcolor="#FFFFFF">
<font size="2">&nbsp;</font></td>
<td valign="top" width="89" bgcolor="#FFFFFF">
<font size="2">&nbsp;</font></td>
<td valign="top" width="31" bgcolor="#FFFFFF">
<font size="2">&nbsp;</font></td>
<td valign="top" width="63" bgcolor="#FFFFFF">
<font size="2">&nbsp;</font></td>
</tr>
<tr>
<td valign="bottom" width="213" bgcolor="#FFFFFF">
<font size="2" face="Times New Roman">Blackpool Enterprises, LLC</font><sup><font face="Times New Roman"> </font>
</sup>
</td>
<td valign="top" width="33" bgcolor="#FFFFFF">
<font size="2">&nbsp;</font></td>
<td valign="top" width="89" bgcolor="#FFFFFF">
<font size="2">&nbsp;</font></td>
<td valign="top" width="31" bgcolor="#FFFFFF">
<font size="2">&nbsp;</font></td>
<td valign="top" width="63" bgcolor="#FFFFFF">
<font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="bottom" width="213" bgcolor="#FFFFFF">
<font size="2" face="Times New Roman">Raymond S. Ingelby</font><sup><font face="Times New Roman"> </font>
</sup>
</td>
<td valign="top" width="33" bgcolor="#FFFFFF">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="89" bgcolor="#FFFFFF">
<sup><font face="Times New Roman" size="2">&nbsp;</font></sup></td>
<td valign="top" width="31" bgcolor="#FFFFFF">
<b><font face="Times New Roman" size="2">&nbsp;</font></b></td>
<td valign="top" width="63" bgcolor="#FFFFFF">
<font face="Times New Roman" size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="bottom" width="213" bgcolor="#FFFFFF">
<p><font size="2" face="Times New Roman">Avocet Investment Partners, L.P.<sup>(6)</sup></font></p>
</td>
<td valign="top" width="33" bgcolor="#FFFFFF">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="89" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">539,975<sup>(6)</sup></font></p>
</td>
<td valign="bottom" width="31" bgcolor="#FFFFFF">
<p align="center"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" width="63" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">5.8&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="377" colspan="2" bgcolor="#CCEEFF">
<p><font size="2" face="Times New Roman">Jeffrey I. Badgley</font><sup><font face="Times New Roman"> </font>
</sup></p>
</td>
<td valign="top" width="33" bgcolor="#CCEEFF">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;</font></p>
</td>
<td valign="bottom" width="89" bgcolor="#CCEEFF">
<p align="right"><font size="2" face="Times New Roman">95,901<sup>(7)</sup></font></p>
</td>
<td valign="bottom" width="31" bgcolor="#CCEEFF">
<p><b><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
<td valign="bottom" width="63" bgcolor="#CCEEFF">
<p align="right"><font size="2" face="Times New Roman">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="377" colspan="2" bgcolor="#FFFFFF">
<p><font size="2" face="Times New Roman">Frank Madonia</font><sup><font face="Times New Roman"> </font>
</sup></p>
</td>
<td valign="top" width="33" bgcolor="#FFFFFF">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="89" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">83,401<sup>(8)</sup></font></p>
</td>
<td valign="bottom" width="31" bgcolor="#FFFFFF">
<p><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" width="63" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="377" colspan="2" bgcolor="#CCEEFF">
<p><font size="2" face="Times New Roman">J. Vincent Mish</font><sup><font face="Times New Roman"> </font>
</sup></p>
</td>
<td valign="top" width="33" bgcolor="#CCEEFF">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="89" bgcolor="#CCEEFF">
<p align="right"><font size="2" face="Times New Roman">58,901<sup>(9)</sup></font></p>
</td>
<td valign="bottom" width="31" bgcolor="#CCEEFF">
<p><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" width="63" bgcolor="#CCEEFF">
<p align="right"><font size="2" face="Times New Roman">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="377" colspan="2" bgcolor="#FFFFFF">
<p><font size="2" face="Times New Roman">A. Russell Chandler, III</font><sup><font face="Times New Roman"> </font>
</sup></p>
</td>
<td valign="top" width="33" bgcolor="#FFFFFF">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="89" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">50,108<sup>(10)</sup></font></p>
</td>
<td valign="bottom" width="31" bgcolor="#FFFFFF">
<p><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" width="63" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="377" colspan="2" bgcolor="#CCEEFF">
<p><font size="2" face="Times New Roman">Richard H. Roberts</font><sup><font face="Times New Roman"> </font>
</sup></p>
</td>
<td valign="top" width="33" bgcolor="#CCEEFF">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="89" bgcolor="#CCEEFF">
<p align="right"><font size="2" face="Times New Roman">34,748<sup>(11)</sup></font></p>
</td>
<td valign="bottom" width="31" bgcolor="#CCEEFF">
<p><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" width="63" bgcolor="#CCEEFF">
<p align="right"><font size="2" face="Times New Roman">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="377" colspan="2" bgcolor="#FFFFFF">
<p><font size="2" face="Times New Roman">Paul E. Drack</font><sup><font face="Times New Roman"> </font>
</sup></p>
</td>
<td valign="top" width="33" bgcolor="#FFFFFF">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="89" bgcolor="#FFFFFF">
<p align="right"><font face="Times New Roman" size="2">32,748<sup>(12)</sup></font></p>
</td>
<td valign="bottom" width="31" bgcolor="#FFFFFF">
<p><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" width="63" bgcolor="#FFFFFF">
<p align="right"><font size="2" face="Times New Roman">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="377" colspan="2" bgcolor="#CCEEFF">
<p><font size="2" face="Times New Roman">All Executive Officers and Directors as a Group<br />
 (7 persons)</font></p>
</td>
<td valign="top" width="33" bgcolor="#CCEEFF">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="89" bgcolor="#CCEEFF">
<p align="right"><font size="2" face="Times New Roman">1,871,964<sup>(13)</sup></font></p>
</td>
<td valign="top" width="31" bgcolor="#CCEEFF">
<p><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" width="63" bgcolor="#CCEEFF">
<p align="right"><font size="2" face="Times New Roman">19.5%</font></p>
</td>
</tr>

<tr>
<td valign="top" width="220" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFFFFF">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="157" bgcolor="#FFFFFF">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="33" bgcolor="#FFFFFF">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="89" bgcolor="#FFFFFF">
<sup><font face="Times New Roman" size="2">&nbsp;</font></sup></td>
<td valign="top" width="31" bgcolor="#FFFFFF">
<b><font face="Times New Roman" size="2">&nbsp;</font></b></td>
<td valign="top" width="63" bgcolor="#FFFFFF">
<font face="Times New Roman" size="2">&nbsp;</font></td>
</tr>
</table>

</center>
</div>

<div align="center">
  <center>

<table border="0" cellpadding="4" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="640">
  <tr>
    <td width="17" valign="top"><font size="2" face="Times New Roman">*</font></td>
    <td width="607"><font size="2" face="Times New Roman">Less than one percent</font></td>
  </tr>
  <tr>
    <td width="17" valign="top"><font face="Times New Roman" size="2">(1)</font></td>
    <td width="607"><font size="2" face="Times New Roman">The Percent of Class
    column represents the percentage that the named person or group would
    beneficially own if such person or group, and only such person or group,
    exercised all currently exercisable options and rights to acquire shares of
    Common Stock held by such person or group.</font></td>
  </tr>
  <tr>
<td width="17" valign="top"><font face="Times New Roman" size="2">(2)</font></td>
<td width="607"><font size="2" face="Times New Roman">Mr. Miller&#146; business
    address is Miller Industries, Inc., 3295 River Exchange Parkway, Suite 220,
    Norcross, Georgia 30092.</font></td>
  </tr>
  <tr>
    <td width="17" valign="top"><font face="Times New Roman" size="2">(3)</font></td>
    <td width="607"><font size="2" face="Times New Roman">Includes 109,288 shares held by the Miller Family Foundation,
Inc., a Georgia non-profit corporation of which Mr. Miller is the sole director.&nbsp; Also includes 2,800 shares held by Mr.
Miller&rsquo;s minor son.&nbsp; Does not include shares that may be issued to Harbourside Investments, LLLP
(&ldquo;Harbourside&rdquo;), a partnership of which Mr. Miller is the general partner, upon the consummation of the proposed
exchange of subordinated debt and warrants of the Company that Harbourside currently holds for shares of Common Stock.&nbsp; The
proposed exchange is described in Proposal 3 of this Proxy Statement.</font></td>
  </tr>
  <tr>
    <td width="17" valign="top"><font face="Times New Roman" size="2">(4)</font></td>
    <td width="607"><font size="2" face="Times New Roman">As reported in a Schedule 13G filed with the SEC on February
14, 2003, Account Management, LLC, a registered investment advisor, (Account Management) has sole dispositive power over 823,530 of
the shares reported.&nbsp; Account Management does not have voting power with respect to any of the shares reported.&nbsp; Account
Management&rsquo;s address is 2 Newbury Street, Boston, Massachusetts 02116.</font></td>
  </tr>
  <tr>
    <td width="17" valign="top"><font face="Times New Roman" size="2">(5)</font></td>
    <td width="607"><font size="2" face="Times New Roman">As reported in an amended Schedule 13G filed with the SEC on
February 14, 2003, Mr. Lynch has sole voting and dispositive power over 242,600 of the shares reported and shared voting and
dispositive power over 440,000 of the shares reported.&nbsp; The shares reported include shares beneficially owned by Mr.
Lynch&rsquo;s wife, shares beneficially owned in two charitable lead trusts and a charitable remainder trust, shares beneficially
owned in trust for members of Mr. Lynch&rsquo;s family and shares beneficially owned by a charitable foundation of which Mr. Lynch
is a trustee.&nbsp; Mr. Lynch&rsquo;s address is 82 Devonshire Street, S8A, Boston, Massachusetts 02109.</font></td>
  </tr>
</table>
  </center>
</div>
<p align="center"><font face="Times New Roman" size="2">2<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>

<div align="center">
  <center>

<table border="0" cellpadding="4" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="648">
  <tr>
    <td width="17" valign="top"><font face="Times New Roman" size="2">(6)</font></td>
    <td width="615" align="center">
    <p align="left"><font size="2" face="Times New Roman">As reported in a Schedule 13G filed with the SEC on
    February 20,
2003, Avocet Capital Management, L.P., a registered investment advisor, (ACM), Blackpool Enterprises, LLC (Blackpool) and Raymond
Ingelby (Ingelby) are members of a group who have shares voting and dispositive power over 539,975 of the shares reported.&nbsp;
Avocet Investment Partners, L.P. (AIP) has shared voting and dispositive power over 466,925 of the shares reported.&nbsp; AIP
disclaims membership in a group.&nbsp; ACM, Blackpool and Ingelby expressly disclaim beneficial ownership in the reported shares,
except to the extent of their respective pecuniary interests.&nbsp; AIP expressly disclaims beneficial ownership of any of the
shares reported on the Schedule 13G.&nbsp; The address for ACM, Blackpool, Ingelby and AIP is 5508 Highway 290 West, Austin, Texas
78735.</font></td>
  </tr>
  <tr>
    <td width="17" valign="top"><font face="Times New Roman" size="2">(7)</font></td>
    <td width="615">
    <p align="left"><font size="2" face="Times New Roman">Includes 72,586 shares which are issuable pursuant to options
which are exercisable within sixty days of the date set forth above.&nbsp; Does not include shares that may be issued to
Harbourside, of which Mr. Badgley is a limited partner, upon the proposed exchange of subordinated debt and warrants of the Company
that Habourside currently holds for shares of Common Stock.&nbsp; The proposed exchange is described in Proposal 3 of this Proxy
Statement.</font></td>
  </tr>
  <tr>
    <td width="17" valign="top"><font face="Times New Roman" size="2">(8)</font></td>
    <td width="615">
    <p align="left"><font size="2" face="Times New Roman">&nbsp;Includes 59,786 shares which are issuable pursuant to options
which are exercisable within sixty days of the date set forth above.&nbsp; Does not include shares that may be issued to
Harbourside, of which Mr. Madonia is a limited partner, upon the proposed exchange of subordinated debt and warrants of the Company
that Habourside currently holds for shares of Common Stock.&nbsp; The proposed exchange is described in Proposal 3 of this Proxy
Statement.</font></td>
  </tr>
  <tr>
    <td width="17" valign="top"><font face="Times New Roman" size="2">(9)</font></td>
    <td width="615">
    <p align="left"><font size="2" face="Times New Roman">Includes 43,286 shares which are issuable pursuant to options
which are exercisable within sixty days of the date set forth above.&nbsp; Does not include shares that may be issued to
Harbourside, of which Mr. Mish is a limited partner, upon the proposed exchange of subordinated debt and warrants of the Company
that Habourside currently holds for shares of Common Stock.&nbsp; The proposed exchange is described in Proposal 3 of this Proxy
Statement.</font></td>
  </tr>
  <tr>
    <td width="17" valign="top"><font face="Times New Roman" size="2">(10)</font></td>
    <td width="615">
    <p align="left"><font size="2" face="Times New Roman">Includes 32,748 shares which are issuable pursuant to options which are
exercisable within sixty days of the date set forth above.</font></td>
  </tr>
  <tr>
    <td width="17" valign="top"><font face="Times New Roman" size="2">(11)</font></td>
    <td width="615"><font size="2" face="Times New Roman">Includes 32,748 shares which are issuable pursuant to options which are
exercisable within sixty days of the date set forth above.</font></td>
  </tr>
  <tr>
    <td width="17" valign="top"><font face="Times New Roman" size="2">(12)</font></td>
    <td width="615"><font size="2" face="Times New Roman">Includes 32,748 shares which are issuable pursuant to options which are
exercisable within sixty days of the date set forth above.</font></td>
  </tr>
  <tr>
    <td width="17" valign="top"><font face="Times New Roman" size="2">(13)</font></td>
    <td width="615"><font size="2">Includes <font face="Times New Roman">273,902</font> shares which are issuable pursuant to options which are exercisable within sixty days of the
date set forth above.</font></td>
  </tr>
</table>

  </center>
</div>

<p align="center"><b><u><font size="2" face="Times New Roman">PROPOSAL 1:&nbsp; ELECTION OF DIRECTORS</font></u></b></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Pursuant to the Company&rsquo;s Charter and Bylaws, the Board has fixed the number of directors at five.&nbsp; Under the terms of
the Company&rsquo;s Charter and Bylaws, the members of the Board of Directors comprise a single class and at each annual meeting of
shareholders all directors will be elected.&nbsp; The directors, if reelected, will serve until the annual meeting of shareholders
in 2004.&nbsp; The Board may fill directorships resulting from vacancies or may increase the number of directors to as many as
fifteen or decrease such number to as few as three directors.&nbsp; Executive officers are appointed annually and serve at the
discretion of the Board of Directors.</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;
Unless contrary instructions are received, shares of Common Stock represented by duly executed proxies will be voted in favor of
the election of the five nominees named below to constitute the entire Board.&nbsp; The Board of Directors has no reason to expect
that the nominees will be unable to serve and, therefore, at this time it does not have any substitute nominees under
consideration.</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;
The nominees for election shall be elected by a plurality of the votes cast by holders of the shares of Common Stock entitled to
vote at the Annual Meeting.&nbsp; Shareholders have no right to vote cumulatively for directors, but rather each shareholder shall
have one vote for each director for each share of Common Stock held by such shareholder.</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;
The following persons are the nominees for election to serve as directors.&nbsp; All five nominees are presently directors of the
Company.&nbsp; Certain information relating to the nominees, which has been furnished to the Company by the individuals named, is
set forth below.&nbsp;</font></p>

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

<p>&nbsp;</p>

<div align="center">
  <center>

<table border="0" cellspacing="0" cellpadding="7" style="border:1.5pt solid black; border-collapse:collapse" width="678" fpstyle="6,011111100" bordercolor="#111111">
<tr>
<td valign="top" width="192" style="font-weight: bold; color: white; border-left-style: none; border-right-style: none; border-top-style: none; border-bottom: 1.5pt solid black; background-color: navy">

<p align="center"><b><u><font size="2" face="Times New Roman">Name of Director</font></u></b></p>
</td>
<td valign="top" width="458" style="font-weight: bold; color: white; border-left-style: none; border-right-style: none; border-top-style: none; border-bottom: 1.5pt solid black; background-color: navy">
<p align="center"><b><u><font size="2" face="Times New Roman">Background Information</font></u></b></p>
</td>
</tr>

<tr>
<td valign="top" width="192" style="font-weight: bold; color: black; border-style: none; background-color: silver">
<p><font size="2" face="Times New Roman">Jeffrey I. Badgley</font></p>
</td>
<td valign="top" width="458" style="color: navy; border-style: none; background-color: silver">
<p><font size="2" face="Times New Roman">Mr. Badgley, 51, has served as Co-Chief Executive Officer of the Company with William G.
Miller since October 2003, as President of the Company since June 1996 and as a director since January 1996.&nbsp; Mr. Badgley
served as Chief Executive Officer of the Company from November 1997 to October 2003.&nbsp; In June 1997, he was named Co-Chief
Executive Officer of the Company, a title he shared with Mr. Miller until November 1997.&nbsp; Mr. Badgley served as Vice President
of the Company from 1994 to 1996, and as Chief Operating Officer of the Company from June 1996 to June 1997.&nbsp; In addition, Mr.
Badgley has served as President of Miller Industries Towing Equipment Inc. since 1996.&nbsp; Mr. Badgley served as Vice
President&mdash;Sales of Miller Industries Towing Equipment Inc. from 1988 to 1996.&nbsp; He previously served as Vice
President&mdash;Sales and Marketing of Challenger Wrecker Corporation (&ldquo;Challenger Wrecker&rdquo;), from 1982 until joining
Miller Industries Towing Equipment Inc.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="192" style="font-weight: bold; color: black; border-style: none; background-color: silver">
<p><font size="2" face="Times New Roman">A. Russell Chandler, III</font></p>
</td>
<td valign="top" width="458" style="color: navy; border-style: none; background-color: silver">
<p><font size="2" face="Times New Roman">Mr. Chandler, 58, has served as a director of the Company since April 1994.&nbsp; He
currently serves as Chairman of CNP Technologies, Inc., a company that builds technology platforms, and is founder and Chairman of
Whitehall Group Ltd., a private investment firm based in Atlanta, Georgia.&nbsp; Mr. Chandler served as the Mayor of the Olympic
Village for the Atlanta Committee for the Olympic Games from 1990 through August 1996.&nbsp; From 1987 to 1993, he served as
Chairman of United Plastic Films, Inc., a manufacturer and distributor of plastic bags.&nbsp; He founded Qualicare, Inc., a
hospital management company, in 1972 and served as President and Chief Executive Officer until its sale in 1983.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="192" style="font-weight: bold; color: black; border-style: none; background-color: silver">
<p><font size="2" face="Times New Roman">Paul E. Drack</font></p>
</td>
<td valign="top" width="458" style="color: navy; border-style: none; background-color: silver">
<p><font size="2" face="Times New Roman">Mr. Drack, 74, has served as a director of the Company since April 1994.&nbsp; Mr. Drack
is also a director of Euramax International PLC.&nbsp; Mr. Drack retired in December 1993 as President and Chief Operating Officer
of AMAX Inc., positions he held since August 1991.&nbsp; From 1985 to 1991, Mr. Drack served in various capacities for operating
subsidiaries of AMAX Inc. including Chairman, President and Chief Executive Officer of Alumax Inc. and President of Kawneer
Company.&nbsp; He was a director of AMAX Inc. from 1988 to 1993.&nbsp; Prior to its acquisition by Cyprus&nbsp; Minerals in
November 1993, AMAX Inc. was a producer of aluminum and manufactured aluminum products with interests in domestic energy and gold
production.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="192" style="font-weight: bold; color: black; border-style: none; background-color: silver">
<p><font size="2" face="Times New Roman">William G. Miller</font></p>
</td>
<td valign="top" width="458" style="color: navy; border-style: none; background-color: silver">
<p><font size="2" face="Times New Roman">Mr. Miller, 57, has served as Chairman of the Board since April 1994 and Co-Chief
Executive Officer of the Company since October 2003.&nbsp; From January 2002 to August 2002 Mr. Miller served as the Chief
Executive Officer of Team Sports Entertainment, Inc., as well as Team Sports Entertainment&rsquo;s subsidiary, Team Racing Auto
Circuit.&nbsp; Mr. Miller served as Chief Executive Officer of the Company from April 1994 until June 1997.&nbsp; In June 1997, he
was named Co-Chief Executive Officer, a title he shared with Jeffrey I. Badgley until November 1997.&nbsp; Mr. Miller also served
as President of the Company from April 1994 to June 1996.&nbsp; He served as Chairman of Miller Group, Inc., from August 1990
through May 1994, as its President from August 1990 to March 1993, and as its Chief Executive Officer from March 1993 until May
1994.&nbsp; Prior to 1987, Mr. Miller served in various management positions for Bendix Corporation, Neptune International
Corporation, Wheelabrator-Frye Inc. and The Signal Companies, Inc.</font></p>
</td>
</tr>

</table>

  </center>
</div>

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

<div align="center">
  <center>

<table border="0" cellspacing="0" cellpadding="7" style="border:1.5pt solid black; border-collapse:collapse" width="678" fpstyle="6,011111100" bordercolor="#111111">

<tr>
<td valign="top" width="192" style="font-weight: bold; color: black; border-style: none; background-color: silver">
<p><font size="2" face="Times New Roman">Richard H. Roberts</font></p>
</td>
<td valign="top" width="458" style="color: navy; border-style: none; background-color: silver">
<p><font size="2" face="Times New Roman">Mr. Roberts, 49, has served as a director of the Company since April 1994.&nbsp;
Mr.&nbsp;Roberts currently serves as Senior Vice President, Landair Transport, Inc., a position he has held since August
1994.&nbsp; From August 1994 until July 2002, Mr. Roberts served as General Counsel and Secretary of Forward Air Corporation and
Landair Corporation.&nbsp; From May 1995 until May 2002 Mr. Roberts served as s director of Forward Air Corporation.&nbsp; Mr.
Roberts also a held similar position with Landair Corporation from September 1998 until February 2003.&nbsp; Mr. Roberts was
partner in the law firm of Baker, Worthington, Crossley &amp; Stansberry, counsel to the Company, from January 1991 to August 1994
and prior thereto was an associate of the firm.&nbsp;</font></p>
</td>
</tr>
</table>

  </center>
</div>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board of Directors held five meetings during 2002.&nbsp; The Board of Directors has standing Audit, Compensation and Nominating
Committees.&nbsp; The Audit Committee is comprised of Messrs. Chandler, Drack and Roberts.&nbsp; The Audit Committee recommends the
appointment of independent public accountants, reviews the scope of audits proposed by the independent public accountants, reviews
audit reports on various aspects of corporate operations, and periodically consults with the independent public accountants on
matters relating to internal financial controls and procedures.&nbsp; The report of the Audit Committee is included in this proxy
statement beginning on page 18.&nbsp; The Audit Committee held five meetings during 2002.</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;
The purpose of the Compensation Committee is to establish, among other things, salaries, bonuses and other compensation for the
Company&rsquo;s officers, and to administer the Company&rsquo;s stock option and other employee benefit plans.&nbsp; Messrs.
Chandler, Drack and Roberts comprise the Compensation Committee.&nbsp; The Compensation Committee held one meeting during
2002.</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;
The Nominating Committee is comprised of Messrs. Chandler, Drack and Miller.&nbsp; The Nominating Committee was established to
evaluate candidates for service as directors to the Company.&nbsp; The Nominating Committee held one meeting during 2002.&nbsp; The
Nominating Committee will consider candidates recommended by shareholders.&nbsp; Shareholder recommendations must comply with the
procedures for nominations set forth in Article I, Section 1.2, of the Company&rsquo;s Bylaws.</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;
All incumbent directors attended more than 75% of the meetings of the Board of Directors and the respective committees of which
they are members.&nbsp;</font></p>

<p><b><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; THE BOARD UNANIMOUSLY RECOMMENDS
THAT THE SHAREHOLDERS VOTE &ldquo;FOR&rdquo; THE ELECTION OF EACH OF THE FIVE DIRECTOR NOMINEES.</font></b></p>

<p align="center"><b><u><font size="2" face="Times New Roman">PROPOSAL 2: ADOPTION OF THE NON-EMPLOYEE DIRECTOR STOCK
PLAN</font></u></b></p>

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

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company&rsquo;s Board of Directors recommends that shareholders approve the Miller Industries, Inc. Non-Employee Director Stock
Plan (the &ldquo;Plan&rdquo;), which was adopted by the Board of Directors on February&nbsp;18, 2003 subject to shareholder
approval.&nbsp; A summary of the material terms of the Plan is set forth below and is qualified in its entirety by reference to the
Plan as set forth in Annex A hereto. If the equity portion of the Plan is not so approved, it will be canceled.</font></p>

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

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The purposes of the Plan are to provide compensation to members of the Board of Directors who are not employees of the Company, to
assist the Company in attracting and retaining non-employee directors with experience and ability on a basis competitive with
industry practices, and to associate more fully the interests of such directors with those of the Company&rsquo;s
shareholders.&nbsp;</font></p>

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

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

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Only non-employee directors are eligible to participate in the Plan.&nbsp; Presently, the number of non-employee directors is
3.</font></p>

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

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On the date of approval of the Plan by the Company&rsquo;s shareholders (&ldquo;Initial Award Date&rdquo;), each non-employee
director will be granted an initial award of 7,962 shares of the Company&rsquo;s Common Stock.&nbsp; This award is equal to the
number of shares determined by dividing $25,000 by the closing price of the Company&rsquo;s Common Stock on February&nbsp;18, 2003,
the date the plan was approved by the Board, which was $3.14.&nbsp;</font></p>

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

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Beginning in 2004 and until the Plan is terminated, each non-employee director then serving as such shall be granted an award of
Company Common Stock as of the first day of each calendar year.&nbsp; No shares will actually be issued in 2004 until the Plan is
approved by the shareholders.&nbsp; The number of shares of Company Common Stock to be granted to each non-employee director shall
be determined by dividing $25,000 by the closing price of a share of the Company Common Stock on the first trading day of such
year.&nbsp; The number of shares awarded for any calendar year shall be rounded to the nearest number of whole shares.&nbsp; The
non-employee director shall have all of the rights of a shareholder with respect to such Common Stock.&nbsp;</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;
If, for any calendar year, the stock price is below $1.00 per share, the Board of Directors, in its discretion, may decide to pay
each non-employee director a cash payment equal to $25,000 in lieu of the stock award for such year.</font></p>

<p><b><font size="2" face="Times New Roman">Federal Income Tax Consequences</font></b></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following discussion is a summary of certain federal income tax issues and does not purport to be a complete analysis of all of
the potential tax aspects relating to the Plan or the awards.&nbsp; The discussion is not intended as a substitute for careful tax
planning by each non-employee director, and does not consider state and local taxes that may be applicable to the awards.&nbsp;
Therefore, the Company encourages non-employee directors to consult with their individual tax advisors regarding the taxation of
their awards.&nbsp; The discussion is based on federal income tax laws, regulations and interpretations thereof presently in
effect, all of which are subject to change, possibly with retroactive effect.&nbsp; Nothing in this discussion is or should be
construed as legal or tax advice.&nbsp;&nbsp;</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;
Upon the grant of Company Common Stock, the non-employee director will realize ordinary income in an amount equal to the Fair
Market Value of those shares, and the Company will be entitled to a corresponding deduction of an equal amount.&nbsp; The tax basis
of such stock will be equal to the ordinary income recognized by the non-employee director.&nbsp; Gain or loss realized upon a
subsequent disposition of those shares would generally be treated as a capital gain or loss.&nbsp; Cash dividends paid to the
non-employee director will result in ordinary income to the non-employee director, and the Company will be entitled to a
corresponding deduction.</font></p>

<p><b><font size="2" face="Times New Roman">Shares of Stock Subject to the Plan</font></b></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The shares granted under this Plan may be newly issued shares of the Company&rsquo;s Common Stock or shares held as treasury
shares, including shares purchased by the Company, whether on the market or otherwise, or a combination of each.</font></p>

<p><b><font size="2" face="Times New Roman">Dilution and Other Adjustments</font></b></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The number and kind of shares of the Company Common Stock issuable under the Plan may be adjusted proportionately by the Board of
Directors to reflect stock dividends, stock splits, recapitalizations, mergers, consolidations, combinations or exchanges of
shares, any spin-off or other distribution of assets of the Company to its shareholders, any partial or complete liquidation, or
other similar corporate changes.&nbsp; Such adjustment shall be conclusive and binding for all purposes of the Plan.</font></p>

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

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

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company shall have the right to require the payment (through withholding from any amount payable from the Company to the
non-employee directors or otherwise) of any withholding taxes required by federal, state, or local law in respect of any
award.</font></p>

<p><b><font size="2" face="Times New Roman">Resale Restrictions, Assignment and Transfer</font></b></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Once awarded, the shares of the Company&rsquo;s Common Stock received by non-employee directors will not be freely tradable unless
the Company undertakes to register their resale under the Securities Act of 1933, as amended (the &ldquo;1933 Act&rdquo;).&nbsp;
Even if the Company does undertake such registration, any transfer, assignment, pledge or otherwise encumbrance of the shares
received by the non-employee directors will be subject to restrictions imposed by the 1933 Act and will be subject to the trading
restrictions imposed by Section 16 of the Securities Exchange Act of 1934, as amended.</font></p>

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

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Plan is unfunded.&nbsp; The Company shall not be required to establish any special or separate fund or to make any other
segregation of assets to assure the payment of any award under the Plan.</font></p>

<p><b><font size="2" face="Times New Roman">Prior Directors&rsquo; Stock Plan Superseded</font></b></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This Plan shall supersede the Miller Industries, Inc. Non-Employee Director Stock Option Plan (the &ldquo;Prior Plan&rdquo;).&nbsp;
No further awards shall be made under the Prior Plan, but any awards previously granted shall remain outstanding subject to the
terms and conditions of such Prior Plan.</font></p>

<p><b><font size="2" face="Times New Roman">Duration, Amendments and Terminations</font></b></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Plan shall terminate on the day prior to the 10<sup>th</sup> anniversary of the Effective Date and no further stock awards will
be made under the Plan after such date.&nbsp; The Board of Directors may sooner terminate the Plan or amend the Plan in whole or in
part at any time and from time to time; <u>provided</u> <u>however</u>, that to the extent required by the rules of the exchange on
which the Company&rsquo;s shares of Common Stock are listed or applicable law, no amendment shall be effective unless approved by
the shareholders of the Company at an annual or special meeting.</font></p>

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

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The exact number of shares of the
Company&rsquo;s Common Stock that may be allocated to non-employee directors as a group under the Plan in the future is not
presently determinable and will depend upon the average price of a share of the Company&rsquo;s Common Stock for the period
immediately prior to the date of each award of shares.&nbsp; Below is a table that sets forth, for the non-employee directors as a
group, the initial shares that were awarded on February 18, 2003 and that will be issued upon shareholder approval of the
Plan.&nbsp;</font></p>

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

<p align="center"><b><font size="2" face="Times New Roman">Miller Industries, Inc. Non-Employee Director Stock Plan</font></b></p>

<div align="center">
  <center>

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111" width="412">
<tr>
<td valign="top" width="137">
<p align="center"><b><u><font size="2" face="Times New Roman">Name and Position</font></u></b></p>
</td>
<td valign="top" width="137">
<p align="center"><b><u><font size="2" face="Times New Roman">Dollar Value</font></u></b></p>
</td>
<td valign="top" width="138">
<p align="center"><b><u><font size="2" face="Times New Roman">Number of Shares</font></u></b></p>
</td>
</tr>

<tr>
<td valign="top" width="137">
<p align="center"><font size="2" face="Times New Roman">Non-Employee Directors<sup>1</sup></font></p>
</td>
<td valign="top" width="137">
<p align="center"><font size="2" face="Times New Roman">$75,000<sup>2</sup></font></p>
</td>
<td valign="top" width="138">
<p align="center"><font size="2" face="Times New Roman">23,886<sup>3</sup></font></p>
</td>
</tr>
</table>

  </center>
</div>

<p>______________<br>
<font size="2" face="Times New Roman">(1)&nbsp; Currently, the Company has three non-employee directors.</font></p>

<p><font size="2" face="Times New Roman">(2)&nbsp; Each non-employee director will receive shares with a value equivalent to
$25,000 upon approval of the Plan by the Company&rsquo;s shareholders.</font></p>

<p><font size="2" face="Times New Roman">(3)&nbsp; The total number of shares is based on a closing price of $3.14 per share, as
reported on the New York Stock Exchange on February 18, 2003, the initial grant date.&nbsp; Each non-employee director will be
awarded 7,962 shares upon shareholder approval.</font></p>

<p><b><font size="2" face="Times New Roman
Bold">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; THE BOARD
OF DIRECTORS RECOMMENDS THAT SHAREHOLDERS VOTE FOR THE APPROVAL OF THE MILLER
INDUSTRIES, INC. NON-EMPLOYEE DIRECTOR STOCK PLAN.</font></b></p>

<p align="center"><b><u><font size="2" face="Times New Roman">PROPOSAL 3: APPROVAL OF THE ISSUANCE OF SHARES OF THE COMPANY&rsquo;S COMMON
STOCK<br />
IN EXCHANGE FOR CERTAIN SUBORDINATED NOTES AND WARRANTS OF THE COMPANY</font></u></b></p>
<p><i><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This section describes the
material terms of several agreements to which the Company is a party.&nbsp; These descriptions are qualified by reference to the
actual terms of such agreements.&nbsp; Copies of the agreements described herein have been filed as exhibits to various reports
filed by the Company with the Securities and Exchange Commission and are available to shareholders of the Company upon written
request at no cost to the requesting shareholder.&nbsp; Requests for copies should be made in writing to Frank Madonia, Executive
Vice President, Secretary and General Counsel, Miller Industries, Inc., 8503 Hilltop Drive, Ooltewah, Tennessee
37363.</font></i></p>
<p><b><font size="2" face="Times New Roman">The Proposal and General Background</font></b></p>
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company is seeking shareholder approval for a proposal (the &ldquo;Exchange Proposal&rdquo;) to issue
583, 556 shares of the
Company&rsquo;s Common Stock in exchange for approximately $1.8 million principal amount of the Company&rsquo;s outstanding subordinated
debt and warrants to purchase 82,382 shares of the Company&rsquo;s Common Stock</font><font size="2">
</font><font size="2" face="Times New Roman">that are
currently held by Harbourside Investments, LLLP (&ldquo;Harbourside&rdquo;).&nbsp;</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;
Under the Exchange Proposal, Harbourside will retain 70% of the outstanding principal amount of the subordinated debt that it
currently holds and will convert the remaining 30% of the outstanding principal amount of such debt plus all accrued interest and
commitment fees thereunder into shares of the Company&rsquo;s Common Stock.&nbsp; Harbourside currently holds approximately
$7.45 million of the Company&rsquo;s subordinated debt, consisting of approximately $6.13 million of outstanding principal
and approximately $1.32 million of accrued interest and fees.&nbsp; Therefore, upon shareholder approval of the Exchange Proposal,
Harbourside will continue to hold approximately $4.29 million principal amount of Subordinated Debt and will convert approximately<b>
</b>$3.16<b> </b>million of the subordinated debt (30% of $6.13 million principal amount, plus
approximately $1.32 million of accrued
interest and fees) into 548,738 shares of the Company&rsquo;s Common Stock.&nbsp; In addition, Harbourside will receive 34,818 shares
of the Company&rsquo;s Common Stock in exchange for  the warrants to purchase
82,382 shares of the Company&rsquo;s Common Stock.</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;
The subordinated debt and warrants held by Harbourside were purchased by Harbourside from Contrarian Funds, LLC
(&ldquo;Contrarian&rdquo;) on November 24, 2003.&nbsp; Contrarian had previously purchased all of the Company&rsquo;s outstanding
subordinated debt (the &ldquo;Subordinated Debt&rdquo;) in a series of transactions during the second half of 2003.&nbsp; The
Subordinated Debt was originally issued pursuant to that certain Amended and Restated Credit Agreement, dated July 23, 2001, as
amended, by and among the Company and Miller Industries Towing Equipment, Inc., a Delaware corporation and Bank of America, N.A. in
its capacity as a lender, and certain other financial institutions (the &ldquo;Junior Credit Facility&rdquo;).&nbsp; The Junior
Credit Facility and the notes issued pursuant to it are subordinate to the Company&rsquo;s senior credit facility which was also
entered into on July 23, 2001.&nbsp; The Subordinated Debt had an original aggregate principal amount of $14.0 million bearing
interest at the prime rate plus 6.0% per annum and at the time of Contrarian&rsquo;s purchases had an outstanding principal amount
of approximately $13.85 million bearing interest at the default rate of 14% per annum.&nbsp; The original maturity date of the
Subordinated Debt was July 23, 2003.&nbsp; The total amount outstanding on the Subordinated Debt as of January 14, 2004, including
accrued interest and commitment fees, was approximately $16.83 million with an interest rate of 14% per annum continuing to
apply.&nbsp;</font></p>

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

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As a part of its purchases of the Subordinated Debt, Contrarian also purchased warrants, or the rights to receive warrants, to
purchase 186,028 shares of the Company&rsquo;s Common Stock.&nbsp; These warrants were issued by the Company to the initial lenders
under the Junior Credit Facility pursuant to that certain Warrant Agreement, dated July 23, 2001, by and among the Company and the
initial lenders.<b>&nbsp;</b> The 186,028 total consists of warrants issued in July 2002 for the purchase of 47,417 shares of the
Company&rsquo;s Common Stock at an exercise price of $3.48 and warrants issued in October 2003 for 138,611 shares of Common Stock
at an exercise price of $3.27.&nbsp; Other than these transactions relating to the Subordinated Debt and the warrants, which it
purchased without the involvement of the Company, Contrarian has no relationship with the Company or Harbourside.&nbsp;</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;
On November 24, 2003, Harbourside purchased from Contrarian 44.286% of (1) the Subordinated Debt and (2) the warrants to purchase
186,028 shares of the Company&rsquo;s Common Stock.&nbsp; As a result of this transaction,&nbsp; Harbourside acquired (1)
approximately $6.13 million of the outstanding principal of Subordinated Debt plus accrued interest and fees attributable to this
outstanding principal and (2) warrants to purchase an aggregate of 82,382 shares of the Company&rsquo;s common stock, consisting of
warrants to purchase up to 20,998 shares at an exercise price of $3.48 and 61,384 shares at an exercise price of $3.27.&nbsp;
Contrarian retained the remaining principal outstanding under the Junior Credit Facility, which is approximately $7.72 million,
plus related interest and fees thereon of approximately $1.65 million, and the remaining warrants to purchase 103,646 shares of
Common Stock.</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;
The Company entered into separate agreements with Harbourside and Contrarian as of January 14, 2004, pursuant to which each agreed
to (1) extend the maturity date until July 31, 2005 of 70% of the principal amount of the outstanding Subordinated Debt that they
respectively hold, (2) convert the remaining portion of their Subordinated Debt (which includes 30% of the principal amount plus
all outstanding and accrued interest and fees) into shares of the Company&rsquo;s Common Stock and (3) convert all of their
respective warrants into shares of the Company&rsquo;s Common Stock.<b>&nbsp;</b> Under its agreement, Harbourside, subject to the
condition subsequent of obtaining shareholder approval, agreed to (1)&nbsp;extend the maturity date until July 31, 2005 of
approximately $4.29 million of the principal amount of the Subordinated Debt and reduce the interest rate thereon from the default
interest rate of 14% per annum to 9% per annum, (2) convert approximately $3.16 million of the Subordinated Debt into
548,738
shares of the Company&rsquo;s Common Stock and (3) convert warrants for 82,382 shares of Common Stock into 34,818 shares of the
Company&rsquo;s Common Stock.&nbsp;</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;
Harbourside is a limited liability limited partnership of which executive officers and directors of the Company are partners.&nbsp;
Other than the Exchange Proposal, the Company has not engaged in any transactions with Harbourside.&nbsp; Neither the Company nor
Harbourside currently intend to engage in any other transactions in the future except as may be related to Harbourside&rsquo;s
continuing ownership of a portion of the Subordinated Debt.</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;
The Company&rsquo;s ability to consummate the conversion by Harbourside of a portion of the Subordinated Debt and the warrants that
Harbourside holds into shares of the Company&rsquo;s Common Stock is subject to shareholder approval. The Company is seeking
shareholder approval of the Exchange Proposal because the listing standards of the New York Stock Exchange require shareholder
approval of transactions in which executive officers and directors of the Company receive more than one percent of the outstanding
shares of the Company&rsquo;s Common Stock.&nbsp; Such approval, if given, will be effective for the exchange of such subordinated
debt and warrants for the Company&rsquo;s Common Stock at the exchange ratio described below regardless of the other terms and
conditions or the timing of the exchange transaction or other factors that might be related to the transaction.&nbsp;</font></p>

<p><b><font size="2" face="Times New Roman">Background of the Transaction</font></b></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In June 2003, at the request of the Board of Directors, William G. Miller began to investigate a possible purchase of the
outstanding Subordinated Debt from the Company&rsquo;s junior lenders.&nbsp; At that time, Mr. Miller served only as the Chairman
of the Board of the Company, but was also appointed as Co-Chief Executive Officer of the Company effective on October 9,
2003.&nbsp; Mr. Miller was interested in such a transaction because he believed a restructuring of the Subordinated Debt would be
necessary to facilitate the Company&rsquo;s efforts to refinance its senior debt.</font></p>

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

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
As Mr. Miller was investigating the possibility of purchasing the Subordinated Debt, he learned that Contrarian, with whom he had
no previous relationship, was also interested in such a transaction and had acquired an option to purchase a portion of the
Subordinated Debt, which option was exercised at the end of June.&nbsp; Mr. Miller and Contrarian then entered into discussions
concerning a possible joint purchase of the Subordinated Debt.&nbsp; Mr. Miller indicated that he and certain other officers and
directors of the Company might be interested in investing up to $4.5 million to help purchase some portion of the remaining
Subordinated Debt if Contrarian could purchase it at a reasonable price.&nbsp; Contrarian indicated it might be willing to sell
approximately half of the Subordinated Debt to the group at its cost if it was able to ultimately purchase all of the Subordinated
Debt.&nbsp; Both such indications of interest in a transaction were subject to negotiation of satisfactory terms and
conditions.&nbsp; This potential transaction was discussed by the Board of Directors of the Company at its August 8, 2003 meeting
and the Board agreed that such a transaction, if it could be completed, would be beneficial to the Company and its efforts to
refinance its senior debt.</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;
In October 2003, Contrarian completed its purchase of all of the Subordinated Debt and then approached the Company regarding a
possible exchange of a portion of the Subordinated Debt for equity of the Company.&nbsp; At that time it also notified the Company
of its intention to offer a minority interest of approximately 44% in the Subordinated Debt to Harbourside, which includes certain
officers and directors of the Company as partners.&nbsp; The Board of Directors of the Company empowered a special committee
consisting of its three non-employee members, A. Russell Chandler, III, Paul E. Drack, and Richard H. Roberts, to engage in all
negotiations with Contrarian on behalf of the Company.&nbsp; The special committee engaged its own legal counsel, Nelson Mullins
Riley &amp; Scarborough, L.L.P., and a financial advisor, Morgan Keegan &amp; Company, Inc., to assist and advise it in the
negotiations with Contrarian.&nbsp; During October and November 2003, the Special Committee met nine times, including three times
with representatives of Contrarian.&nbsp; The economic terms of the exchange transaction were negotiated on behalf of the
Subordinated Debt holders by Contrarian with the Special Committee.</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;
Morgan Keegan &amp; Company, Inc. served as financial adviser to the Special Committee of the Board of Directors in its
negotiations with Contrarian.&nbsp; For its advisory services in connection with the negotiation of the exchange transaction and
the rendering of its opinion as to the fairness of the transaction, the Company paid Morgan Keegan $50,000, reimbursed its
out-of-pocket expenses and agreed to indemnify Morgan Keegan against potential liabilities arising out of its engagement.&nbsp; For
this reduced fee, the Company agreed to engage Morgan Keegan for any additional investment banking services that the Company may
require during 2004.&nbsp; On November&nbsp;17, 2003, Morgan Keegan delivered its oral opinion to the
Special Committee that the
issuance of the Company&rsquo;s Common Stock, pursuant to the Exchange Agreement is fair, from a financial point of view.&nbsp; The
oral opinion was later confirmed in writing on November 20, 2003.&nbsp; The
fairness opinion of Morgan Keegan is attached hereto as Annex B.</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;
For purposes of preparing its opinion, Morgan Keegan:</font></p>

<blockquote>
  <ul>
    <li>

<p align="left"><font size="2" face="Times New Roman">reviewed an initial draft of the exchange agreements;<br>
&nbsp;</font></p>

    </li>
    <li>

<p align="left"><font size="2" face="Times New Roman">reviewed certain publicly available business and financial information
relating to the Company;<br>
&nbsp;</font></p>

    </li>
    <li>

<p align="left"><font size="2" face="Times New Roman">reviewed certain other information provided to it by the Company and
discussed the business prospects of the Company with its management;<br>
&nbsp;</font></p>

    </li>
    <li>

<p align="left"><font size="2" face="Times New Roman">reviewed the reported historical prices and historical trading activity for
the Company&rsquo;s common stock for the period from January 1, 2000 to August 10, 2003;<br>
&nbsp;</font></p>

    </li>
    <li>

<p align="left"><font size="2" face="Times New Roman">compared and considered the financial performance of the Company and the
prices and trading activity of the Company&rsquo;s common stock with that of certain other publicly-traded companies and their
securities that were deemed to be comparable to the Company, derived valuation multiples for the Company by analyzing these
company&rsquo;s financial performance, and applied
certain of these valuation multiples to the Company&rsquo;s earnings before interest, taxes, depreciation and amortization
(&ldquo;EBITDA&rdquo;) for the latest twelve months ended June 30, 2003 and projected net income for the year ended December 31,
2004 to derive an implied range of equity values and price per share for the Company&rsquo;s common stock;<br>
&nbsp;</font></p>

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

<blockquote>
  <ul>
    <li>

<p align="left"><font size="2" face="Times New Roman">reviewed the financial terms, to the extent publicly available, of certain
other business combinations and other transactions that it deemed relevant and applied certain of these valuation multiples to the
Company&rsquo;s earnings before EBITDA for the latest twelve months ended June 30, 2003 to derive an implied range of equity values
and price per share for the Company&rsquo;s common stock;</font></p>

    </li>
  </ul>
  <ul>
    <li>

<p align="left"><font size="2" face="Times New Roman">performed a discounted
cash flow analysis on the
projected cash flows of the Company for years ended December 31, 2004 through 2008 and applied a range of discount rates and
terminal value multiples based on estimated EBITDA for the year ending December 31, 2008 to calculate a range of implied equity
values and price per share for the Company&rsquo;s common stock;<br>
&nbsp;</font></p>

    </li>
    <li>

<p align="left"><font size="2" face="Times New Roman">analyzed the discount received for certain transactions whereby the investor
acquired privately issued, unregistered common stock from an publicly-held issuer; and<br>
&nbsp;</font></p>

    </li>
    <li>

<p align="left"><font size="2" face="Times New Roman">performed such other analyses and considered such other factors as it deemed
appropriate.</font></p>

    </li>
  </ul>
</blockquote>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
On November 17, 2003, the Special Committee approved the exchange transaction and recommended to the Board of Directors of the
Company that it approve the transaction.&nbsp; On the same day, the Board of Directors, with Messrs. Miller and Badgley abstaining,
approved the basic terms of the exchange transaction and authorized the Company to enter into exchange agreements with Contrarian
and Harbourside on substantially identical terms.&nbsp; Messrs. Millers and Badgley abstained from the aforementioned vote because
of their ownership interest in Harbourside.&nbsp; The transaction that was contemplated at this time called for the satisfaction of
approximately $9.75 million of the Subordinated Debt, which is 70% of the outstanding principal balance of the Subordinated Debt,
through a cash payment and the conversion of the remainder of such Subordinated Debt, including 30% of the outstanding principal
balance and all accrued interest and fees, into Common Stock.</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;
After its November 17 meeting, the Special Committee and its counsel, together with counsel for the Company, continued to negotiate
the terms of definitive agreements that would memorialize the exchange transaction.&nbsp; As a result of difficulties experienced
with closing the refinancing of the Senior Credit Facility in the manner initially contemplated (as described in the following
section), which would have provided cash to satisfy approximately 70% of the outstanding principal balance of the Subordinated
Notes, these negotiations shifted to the transaction that is described in this  Proposal
3, with the 70% base amount of the
Notes remaining in force with an extended maturity date and the remaining 30% of the principal amount plus all accrued interest and
fees being converted into the Company&rsquo;s Common Stock.&nbsp; On December 18, 2003, the Special Committee approved a modified
exchange transaction with respect to Contrarian and Harbourside and recommended to the Board of Directors of the Company that it
also approve the transaction.&nbsp; This transaction differed from the original proposal primarily by not providing for the
satisfaction with a cash payment of $9.75 million principal amount of the debt, and instead provided that the maturity of such
principal amount would be extended to July 31, 2005.&nbsp; On the same day, the Board of Directors, with Messrs. Miller and Badgley
abstaining due to their ownership interest in Harbourside, approved the terms of the exchange transaction and authorized the
Company to enter into exchange agreements with both Contrarian and Harbourside on substantially identical terms and directed that
the Harbourside transaction be submitted for the approval of the shareholders of the Company.</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;</font> <font size="2">On December
24, 2003, in connection with the completion of the restructuring of the Company&rsquo;s Senior Credit Facility, as described in
further detail below, the Company entered into a Binding Restructuring Agreement with Contrarian and Harbourside.&nbsp; Pursuant to
this agreement, Contrarian and Harbourside agreed to the exchange transaction approved by the Special Committee on December 18,
2003, where they would extend the maturity date of 70% of the outstanding principal amount, approximately $9.75 million, convert
the remaining 30% of the outstanding principal, plus all accrued interest and fees, into the Company&rsquo;s Common Stock and
convert the warrants into the Company&rsquo;s Common Stock.&nbsp; This agreement contemplated that the conversions would be further
documented in separate exchange agreements and also contemplated registration rights agreements.&nbsp; The Binding Restructuring
Agreement also outlined the terms for&nbsp; amending the Junior Credit Facility to extend its maturity date to July 31, 2005 (which
is after the July 23, 2005 maturity date of the Senior Credit Facility), to provide for an interest rate on the remaining debt of
Contrarian at 18% and the remaining debt of Harbourside at a reduced rate (which was ultimately agreed to be 9%), to provide for
financial covenants that match those of the Senior Credit Facility and to make other amendments to the Junior Credit Facility
consistent with amendments made to the Senior Credit Facility as it was amended on December 24, 2003.&nbsp; The disparity in the
interest rates to be earned by Contrarian and Harbourside is caused by Contrarian negotiating an interest rate of 18% as a
condition to it entering into the Binding Restructuring Agreement, as a result of which Harbourside agreed to reduce the rate to be
received by it to 9% so that the Company would continue to pay an effective blended interest rate of 14% on the aggregate of the
Subordinated Debt following the exchange transactions.&nbsp; At the same time, Contrarian and Harbourside entered into an agreement
with the Company&rsquo;s senior lenders to extend the maturity date of the Subordinated Debt that they would continue to
hold.&nbsp; On December 24, 2004, Morgan Keegan affirmed its initial fairness opinion&nbsp; in writing and indicated that the
revised terms of the proposed exchange did not affect the analysis supporting its original November 17, 2003 opinion, because the
revisions did not affect the exchange ratio or number of shares to be issued.&nbsp; As of January 14, 2004, the Company entered
into separate exchange agreements with Contrarian and Harbourside, a registration rights agreement with Contrarian and Harbourside
and an amendment to the Junior Credit Facility with Contrarian and Harbourside, all as contemplated in the Binding Restructuring
Agreement.&nbsp;</font></p>

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

<p><b><font size="2" face="Times New Roman">Background of Senior Debt Restructuring</font></b></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company&rsquo;s Senior Credit Facility was in default because the Company failed to file its 2002 Form 10-K on a timely basis
and then filed such Form 10-K with a qualified audit opinion.&nbsp; The Junior Credit Facility was also in default as a result of
the failure of the Company to pay the full amount due thereunder on the final maturity date of July 23, 2003.&nbsp; Each of those
defaults also caused a cross-default under the other facility.&nbsp; Pursuant to the terms of the Intercreditor Agreement between
the junior lenders and the senior lenders, the junior lenders were prevented from taking any enforcement action or exercising any
remedies against, or receiving any payments from, the Company, until April 24, 2004.&nbsp; On October 31, 2003, the Company entered
into a forbearance agreement with the senior lenders, pursuant to which the Senior Lenders agreed to forbear from exercising any
remedies in respect of the defaults then existing under the Senior Credit Facility until December 31, 2003.&nbsp;</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;
On October 3, 2003, the Company entered into a letter agreement with a large financial institution, pursuant to which such lender
confirmed its interest in refinancing the senior and junior credit facilities of the Company.&nbsp; Discussions with this
institution regarding such refinancing continued through mid-December, 2003, but the Company experienced increasing difficulties
reaching agreement with the lender on various material terms and conditions.&nbsp; As a result, the Company explored alternative
sources of refinancing for its Senior Credit Facility.&nbsp; During this period, it became clear that any feasible refinancing of the
Company&rsquo;s Senior Credit Facility would not provide adequate funds to also satisfy with a cash payment any portion of the
Junior Credit Facility.&nbsp; This caused the Company to renegotiate the previously contemplated transaction with Contrarian and
Harbourside so that the 70% base principal amount of their Subordinated Notes
would not be repaid in cash in connection with the exchanges but would instead
be held by them and restructured with an extended maturity date of July 31, 2005
(which is after the July 23, 2005 maturity of the senior debt) so that it would
no longer be past due and in default.</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;
On December 24, 2003, William G. Miller, the Chairman of the Board and Co-Chief Executive Officer of the Company, increased his
previous $2 million participation in the existing Senior Credit Facility by an additional $10 million.&nbsp; These funds, along
with additional funds from The CIT Group/Business Credit, Inc. (&#147;CIT&#148;),&nbsp; were used to satisfy the Company's obligations to two of the existing senior lenders with the
result being that CIT, an existing senior lender, and Mr. Miller constituted the senior lenders to the Company, with CIT
holding
62.5% of such loan and Mr. Miller participating in 37.5% of the loan.&nbsp; Mr. Miller&rsquo;s portion of the loan is subordinated
to that of CIT.&nbsp; In conjunction with Mr. Miller's increased participation, the loan was restructured and restated as a $15
million revolving facility and $12 million and $5 million term loans.&nbsp; As a result of this restructuring, all previously
existing defaults under the Senior Credit Facility were waived, the interest rate was lowered by 2% to reflect a non-default rate,
fees attributable to RoadOne of $30,000 per month were eliminated, the financial covenants were substantially relaxed, and
availability under the facility was increased by approximately $5 million.&nbsp; The senior lending group, consisting of CIT and
Mr.&nbsp;Miller,&nbsp; earned fees of $850,000 in connection with the restructuring, including previously unpaid fees of $300,000
for the&nbsp; earlier forbearance agreement through December 31, 2003 and $550,000 for the restructuring of the loans described
above.&nbsp; Of these fees, 37.5% ($318,750) were paid to Mr. Miller and the remainder ($531,250) were paid to CIT.&nbsp; In
addition, the Company will pay additional interest at a rate of 1.8% on Mr. Miller's portion of the loan, which is in recognition
of the fact that Mr. Miller&rsquo;s rights to payments and collateral are subordinate to those of CIT.&nbsp; This transaction was
approved by the Special Committee of the Board, as well as the full Board of Directors with Mr. Miller abstaining due to his
personal interest in the transaction.</font></p>

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

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In order to enter into this restructuring&nbsp; of the Senior Credit Facility, CIT required that the junior lenders agree to extend
the standstill and payment blockage periods, which were to expire at the end of April 2004, until July 31, 2005, which is after the
July 23, 2005 maturity of the senior debt.&nbsp; The junior facility lenders were unwilling to extend such standstill and payment
blockage dates without&nbsp; the conversion provisions described above having been committed to by the Company, subject only to
shareholder approval of the conversion by Harbourside.&nbsp; As a result, the restructuring of the senior debt facility and the
conversion and exchange of subordinated debt and warrants described in this Proposal 3 were cross-conditioned upon each other and
the agreements effecting them were entered into simultaneously on December 24, 2003.&nbsp;</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;
Throughout the negotiations regarding restructuring the Company's junior and senior credit facilities, the Board of Directors was
aware that if the restructuring was not successful, then selling the entire company might be an available alternative for the
Company.&nbsp; As a result, the Board&rsquo;s policy has been to cooperate with any third parties that expressed any interest in an
acquisition of the Company.&nbsp; There were two very preliminary indications of interest in such a transaction from unaffiliated
third parties in 2003.&nbsp; During October through December, 2003, the Company provided due diligence materials and engaged in
discussions with one of such parties regarding the Company&rsquo;s business, operations, assets and liabilities.&nbsp; These
discussions did not progress to substantive discussions regarding an acquisition of the Company.&nbsp; The Company subsequently
notified this third party that these due diligence discussions would cease and that it would continue to focus on completing its
debt restructuring.&nbsp; Such other company has not made any offer to acquire the Company, and the Company does not know whether
such company will ever make any such offer.</font></p>

<p><b><font size="2" face="Times New Roman">Reasons for the Transaction</font></b></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company&rsquo;s Board of Directors believes that it is in the best interests of the Company and its shareholders to approve the
exchange of the Subordinated Debt and the warrants owned by Harbourside for shares of the Company&rsquo;s Common Stock.&nbsp; The
Board considered a number of factors, including those set forth below, in reaching its decision to approve the transaction, and to
recommend its approval to the shareholders of the Company.&nbsp;</font></p>

<ul type="disc">
<li><font size="2" face="Times New Roman">The Board of Directors believes that the transaction
will facilitate the restructuring
of the Company&rsquo;s senior credit facility.&nbsp; In particular, the senior lenders required an extension of the Junior Credit
Facility maturity date as a condition of restructuring the senior credit facility, which extension would not have been granted by
the Subordinated Debt holders without the Company&rsquo;s commitment to effect the accompanying conversion transaction, subject to
shareholder approval.&nbsp; The senior lenders indicated that if the senior debt restructuring was not completed by year end 2003
they would begin action to protect their rights as secured lenders, which the Board of Directors believed could have severely
damaged the operations, financial condition and equity value of the Company.<br>
&nbsp;</font></li>
<li><font size="2" face="Times New Roman">Because the Subordinated Debt currently bears interest at 10.0%
<u>over the prime rate</u>, the
conversion of a portion of the Subordinated Debt into equity will reduce the Company&rsquo;s ongoing interest expense.<br>
&nbsp;</font></li>
<li><font size="2" face="Times New Roman">The issuance of additional equity securities in the form of the Company&rsquo;s Common
Stock will help the Company in its efforts to regain compliance with the New York Stock Exchange listing requirements that the
Company maintain a thirty-day average market capitalization of $50 million and stockholders&rsquo; equity of $50
million.&nbsp;<br>
&nbsp;</font></li>
<li><font size="2" face="Times New Roman">Because the market price for the Company&rsquo; Common Stock is currently higher than it
has been in the past few years, the Company can complete the exchange with the issuance of fewer shares of its Common Stock than it
would have issued in a comparable transaction at any other time during the last few years.&nbsp;<br>
&nbsp;</font></li>
<li><font size="2" face="Times New Roman">The opinion of Morgan Keegan that the issuance of the Company&rsquo;s Common Stock in
exchange for a portion of the Subordinated Debt and the warrants was fair, from a financial point of view.</font></li>
</ul>

<p align="left"><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If the Exchange Proposal is not approved by the shareholders, (a) Harbourside will continue to hold the Subordinated Debt that
would have been converted into equity and (b) Contrarian will have the right, exercisable for five days after the shareholder
meeting, to rescind the conversion of its Subordinated Debt and warrants.&nbsp; Any Subordinated Debt of either holder that is not
converted into equity (1) would continue to bear interest at the default rate of prime plus 10%; (2) would not constitute equity
for purposes of the Company&rsquo;s NYSE compliance plan, which could make it more difficult for the Company to maintain its
listing on the NYSE; and (3) would be due and payable and therefore in default (even though subject to a payment blockage and
standstill through July 31, 2005 that would prevent the holder from receiving any payments or taking any actions to foreclose),
which could cause the debt to be classified as a current obligation and could raise issues as to whether the Company&rsquo;s
independent accountants could issue a report on the Company&rsquo;s 2003 financial statements without a &ldquo;going concern&rdquo;
qualification.</font></p>

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

<p align="left"><b><font size="2" face="Times New Roman">Pro Forma Financial Information</font></b></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following information gives
effect to the conversion of Subordinated Debt and exchange of warrants of Contrarian and Harbourside in the manner described in
this  Proposal 3 as if such transactions occurred as of the September 30, 2003 balance sheet date and at the beginning of the
12 month and 9 month periods ending on December 31, 2002 and September 30, 2003, respectively.</font></p>

<p align="center"><font size="2" face="Times New Roman">(dollars in 000&rsquo;s)</font></p>

<div align="center">
<table border="0" cellspacing="0" cellpadding="0" width="448" height="64">
<tr>
<td valign="top" width="288" height="19"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="top" width="160" height="19">
<p align="center"><font size="2" face="Times New Roman">As of September 30, 2003</font></p>
</td>
</tr>

<tr>
<td valign="top" width="288" height="15"><font size="2">&nbsp;</font></td>
<td valign="top" width="91" height="15">
<p align="center"><u><font size="2" face="Times New Roman">Actual</font></u></p>
</td>
<td valign="top" width="69" height="15">
<p align="center"><u><font size="2" face="Times New Roman">Pro forma</font></u></p>
</td>
</tr>

<tr>
<td valign="top" width="288" height="15">
<p><font size="2" face="Times New Roman">Current Debt</font></p>
</td>
<td valign="top" width="91" height="15">
<p align="center"><font size="2" face="Times New Roman">$32,510</font></p>
</td>
<td valign="top" width="69" height="15">
<p align="center"><font size="2" face="Times New Roman">$26,949</font></p>
</td>
</tr>

<tr>
<td valign="top" width="288" height="15">
<p><font size="2" face="Times New Roman">Shareholders&rsquo; Equity</font></p>
</td>
<td valign="top" width="91" height="15">
<p align="center"><font size="2" face="Times New Roman">$33,382</font></p>
</td>
<td valign="top" width="69" height="15">
<p align="center"><font size="2" face="Times New Roman">$38,943</font></p>
</td>
</tr>
</table>
</div>

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

<div align="center">
<table border="0" cellspacing="0" cellpadding="0" width="446" height="217">
<tr>
<td valign="top" width="142" height="22"><font size="2">&nbsp;</font></td>
<td colspan="4" valign="top" height="22">
<p align="center"><font size="2" face="Times New Roman">For the Period Ending</font></p>
</td>
</tr>

<tr>
<td valign="top" width="142" height="15"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="top" height="15">
<p align="center"><u><font size="2" face="Times New Roman">December 31, 2002</font></u></p>
</td>
<td colspan="2" valign="top" width="150" height="15">
<p align="center"><u><font size="2" face="Times New Roman">September 30, 2003</font></u></p>
</td>
</tr>

<tr>
<td valign="top" width="142" height="15"><font size="2">&nbsp;</font></td>
<td valign="top" width="76" height="15">
<p align="center"><u><font size="2" face="Times New Roman">Actual</font></u></p>
</td>
<td valign="top" width="76" height="15">
<p align="center"><u><font size="2" face="Times New Roman">Pro forma</font></u></p>
</td>
<td valign="top" width="76" height="15">
<p align="center"><u><font size="2" face="Times New Roman">Actual</font></u></p>
</td>
<td valign="top" width="76" height="15">
<p align="center"><u><font size="2" face="Times New Roman">Pro forma</font></u></p>
</td>
</tr>

<tr>
<td valign="top" width="142" height="15"><font size="2">&nbsp;</font></td>
<td valign="top" width="76" height="15"><font size="2">&nbsp;</font></td>
<td valign="top" width="76" height="15"><font size="2">&nbsp;</font></td>
<td valign="top" width="76" height="15"><font size="2">&nbsp;</font></td>
<td valign="top" width="76" height="15"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="142" height="15">
<p><font size="2" face="Times New Roman">Interest Expense</font></p>
</td>
<td valign="top" width="76" align="right" height="15">
<p><font size="2" face="Times New Roman">$4,368&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="76" align="right" height="15">
<p><font size="2" face="Times New Roman">$3,895&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="76" align="right" height="15">
<p><font size="2" face="Times New Roman">$4,786&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="76" align="right" height="15">
<p><font size="2" face="Times New Roman">$4,369&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="142" height="15"><font size="2">&nbsp;</font></td>
<td valign="top" width="76" align="right" height="15"><font size="2">&nbsp;</font></td>
<td valign="top" width="76" align="right" height="15"><font size="2">&nbsp;</font></td>
<td valign="top" width="76" align="right" height="15"><font size="2">&nbsp;</font></td>
<td valign="top" width="76" align="right" height="15"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="142" height="15">
<p><font size="2" face="Times New Roman">Net Income (Loss)</font></p>
</td>
<td valign="top" width="76" align="right" height="15">
<p><font size="2" face="Times New Roman">3,524&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="76" align="right" height="15">
<p><font size="2" face="Times New Roman">3,997&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="76" align="right" height="15">
<p><font size="2" face="Times New Roman">1,396&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="76" align="right" height="15">
<p><font size="2" face="Times New Roman">1,813&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="142" height="30">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp; Continuing<br>
&nbsp;&nbsp; Operations</font></p>

</td>
<td valign="top" width="76" align="right" height="30"><font size="2">&nbsp;</font></td>
<td valign="top" width="76" align="right" height="30"><font size="2">&nbsp;</font></td>
<td valign="top" width="76" align="right" height="30"><font size="2">&nbsp;</font></td>
<td valign="top" width="76" align="right" height="30"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="142" height="15"><font size="2">&nbsp;</font></td>
<td valign="top" width="76" align="right" height="15"><font size="2">&nbsp;</font></td>
<td valign="top" width="76" align="right" height="15"><font size="2">&nbsp;</font></td>
<td valign="top" width="76" align="right" height="15"><font size="2">&nbsp;</font></td>
<td valign="top" width="76" align="right" height="15"><font size="2">&nbsp;</font></td>
</tr>
<tr>
<td valign="top" width="142" height="15">
<p><font size="2" face="Times New Roman">Net Income (Loss)</font></p>
</td>
<td valign="top" width="76" align="right" height="15">
<p><font size="2" face="Times New Roman">(45,694)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="76" align="right" height="15">
<p><font size="2" face="Times New Roman">(45,221)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="76" align="right" height="15">
<p><font size="2" face="Times New Roman">(7,887)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="76" align="right" height="15">
<p><font size="2" face="Times New Roman">(7,470)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>
<tr>
<td valign="top" width="142" height="15"><font size="2">&nbsp;</font></td>
<td valign="top" width="76" align="right" height="15"><font size="2">&nbsp;</font></td>
<td valign="top" width="76" align="right" height="15"><font size="2">&nbsp;</font></td>
<td valign="top" width="76" align="right" height="15"><font size="2">&nbsp;</font></td>
<td valign="top" width="76" align="right" height="15"><font size="2">&nbsp;</font></td>
</tr>
<tr>
<td valign="top" width="142" height="15">
<p><font size="2" face="Times New Roman">Income (Loss) per</font></p>
</td>
<td valign="top" width="76" align="right" height="15"><font size="2">&nbsp;</font></td>
<td valign="top" width="76" align="right" height="15"><font size="2">&nbsp;</font></td>
<td valign="top" width="76" align="right" height="15"><font size="2">&nbsp;</font></td>
<td valign="top" width="76" align="right" height="15"><font size="2">&nbsp;</font></td>
</tr>
<tr>
<td valign="top" width="142" height="15">
<p><font size="2" face="Times New Roman">&nbsp; Common Share</font></p>
</td>
<td valign="top" width="76" align="right" height="15">
<p><font size="2" face="Times New Roman">(4.89)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="76" align="right" height="15">
<p><font size="2" face="Times New Roman">(4.84)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="76" align="right" height="15">
<p><font size="2" face="Times New Roman">(0.84)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="76" align="right" height="15">
<p><font size="2" face="Times New Roman">(0.80)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>
</table>
</div>
<p><b><font size="2" face="Times New Roman">The Exchange Agreements</font></b></p>
<p align="left"><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company has entered into
agreements with Contrarian and Harbourside (the &ldquo;Exchange Agreements&rdquo;) as of January&nbsp;14, 2004,&nbsp; pursuant to which Contrarian and, subject to shareholder approval, Harbourside, agreed to:&nbsp;</font></p>
<blockquote>
  <ul>
    <li>
<p align="left"><font size="2">extend the maturity date of 70% of the outstanding principal amount of the Subordinated Debt to July 31,
2005;</font></p>
    </li>
  </ul>
  <ul>
    <li>
<p align="left"><font size="2">convert the remaining 30% of the outstanding principal amount of the Subordinated Debt, plus accrued interest and
fees (the &ldquo;Conversion Portion&rdquo;) into shares of the Company&rsquo;s Common Stock (the &ldquo;Debt Conversion&rdquo;)
by dividing such total amount by $5.7564, </font><font size="2" face="Times New Roman">
the average closing price per share of the Common Stock for each trading day in
the calendar fourth quarter of 2003 (the &#147;Exchange Ratio&#148;)</font><font size="2">;
and</font></p>

    </li>
  </ul>
</blockquote>
<blockquote>
  <ul>
    <li><font size="2" face="Times New Roman">convert all of the warrants into shares of the Company&rsquo;s Common Stock (the
&ldquo;Warrant Conversion&rdquo;) by exchanging each warrant for a number of shares of Common Stock equal to (1)  the  Exchange
Ratio minus the Exercise Price of the warrant, (2) multiplied by the number of shares underlying the
    warrant, and (3)
divided by the Exchange Ratio.</font></li>
  </ul>
</blockquote>

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

<p align="left"><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except for the condition
subsequent that Harbourside&rsquo;s agreement be approved by the Company&rsquo;s shareholders, the Exchange Agreements are
identical to each other in all material respects.&nbsp; The closing of the transactions contemplated in both Exchange Agreements
occurred on January __, 2004 (the &ldquo;Exchange Closing Date&rdquo;), but the delivery of the
amended notes and Common Stock to Harbourside is subject to the condition subsequent that shareholder approval be obtained.</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; </font><font size="2" face="Times New Roman">Under Harbourside&rsquo;s exchange
agreement, the portion of the Subordinated Debt for which the maturity date will be extended will be $4,293,217.&nbsp; This amount
was determined by multiplying 70% by $6,133,164, which is the outstanding principal amount of the Subordinated Debt Harbourside
held as of the Exchange Closing Date.&nbsp;</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; </font><font size="2" face="Times New Roman">In the Debt Conversion, Harbourside&rsquo;s Conversion Portion, for which Harbourside will
receive shares of the Company&rsquo;s Common Stock, consists of the remaining 30% of the principal outstanding under the
Subordinated Debt held by Harbourside, which is equal to $1,839,950, plus all accrued interest and fees of $1,318,812.&nbsp;
Therefore, Harbourside will receive 548,738 shares of the Company&rsquo;s Common Stock, which is equal to the Conversion Portion
divided by the Exchange Ratio of $5.7564.</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; </font><font size="2" face="Times New Roman">In the Warrant Conversion, Harbourside will receive a total of 34,818 shares of the
Company&rsquo;s common stock in exchange for the warrants it holds.&nbsp; Specifically, Harbourside will receive 8,304 shares for
warrants to purchase 20,998 shares at an exercise price of $3.48 and 26,514 shares for
warrants to purchase 61,384 shares at an
exercise price of $3.27.&nbsp;</font></p>

<p align="left"><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Presuming that the Exchange
Proposal is approved, the Debt Conversion and the Warrant Conversion are summarized in the following table:</font></p>

<div align="center">
<table border="0" cellspacing="0" cellpadding="0" width="666" style="border-collapse: collapse" bordercolor="#111111">
<tr>
<td valign="top" width="94"><font size="1">&nbsp;</font></td>
<td colspan="6" valign="top" width="200">

<p align="center"><u><font size="1" face="Times New Roman"><br>
Prior to Conversion</font></u></p>
</td>
<td colspan="6" valign="top" width="190">

<p align="center"><u><font size="1" face="Times New Roman"><br>
After Conversion</font></u><sup><font size="1">(1)</font></sup></p>
</td>
<td colspan="4" valign="top" width="154">
<p align="center"><font size="1" face="Times New Roman">Number of Shares Issued in <u>Conversion</u><sup>(1)</sup></font></p>
</td>
</tr>

<tr>
<td valign="top" width="94"><font size="1">&nbsp;</font></td>
<td valign="top" width="114" colspan="3">
<p align="center"><font size="1" face="Times New Roman">Principal Amount<br />
 of Subordinated<u><br />
 Debt Outstanding</u></font></p>
</td>
<td valign="top" width="100" colspan="3">
<p align="center"><font size="1" face="Times New Roman">Number of Shares<u><br />
</u> Underlying<br>
<u>Warrants</u></font></p>
</td>
<td valign="top" width="100" colspan="3">
<p align="center"><font size="1" face="Times New Roman">Principal Amount<br />
 of Subordinated<u><br />
 Debt Outstanding</u></font></p>
</td>
<td valign="top" width="95" colspan="3">
<p align="center"><font size="1" face="Times New Roman"><br>
Number of Shares<u><br />
Underlying Warrants</u></font></p>
</td>
<td valign="top" width="66">
<p align="center"><font size="1" face="Times New Roman"><br />
 Debt<br />
 <u>Conversion</u></font></p>
</td>
<td valign="top" width="88" colspan="3">
<p align="center"><font size="1" face="Times New Roman"><br />
 Warrant<br />
 <u>Conversion</u></font></p>
</td>
</tr>

<tr>
<td valign="bottom" width="94">
<p align="left" style="margin-top: 3"><font size="1" face="Times New Roman">Contrarian</font></p>
</td>
<td valign="bottom" width="114" colspan="3">
<p align="right" style="margin-top: 3"><font size="1" face="Times New Roman">$&nbsp; 7,715,919 <sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</sup></font></p>
</td>
<td valign="bottom" width="100" colspan="3">
<p align="center" style="margin-top: 3"><font size="1" face="Times New Roman">103,646</font></p>
</td>
<td valign="bottom" width="100" colspan="3">
<p align="right" style="margin-top: 3"><font size="1" face="Times New Roman">$5,401,144<sup>(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</sup></font></p>
</td>
<td valign="bottom" width="95" colspan="3">
<p align="center" style="margin-top: 3"><font size="1" face="Times New Roman">0</font></p>
</td>
<td valign="bottom" width="66" align="right">
<p style="margin-top: 3"><font size="1">&nbsp;690,348&nbsp;&nbsp;&nbsp;</font></td>
<td valign="bottom" width="88" colspan="3">
<p align="center" style="margin-top: 3"><font size="1" face="Times New Roman">53,803</font></p>
</td>
</tr>

<tr>
<td valign="bottom" width="94">
<p align="left"><font size="1" face="Times New Roman">Harbourside</font></p>
</td>
<td valign="bottom" width="22">
<font size="1">&nbsp;</font></td>
<td valign="bottom" width="70" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="1" face="Times New Roman">$&nbsp;&nbsp; 6,133,167<sup>(3)</sup></font></p>
</td>
<td valign="bottom" width="22">
<sup><font face="Times New Roman" size="1">&nbsp;</font></sup></td>
<td valign="bottom" width="28">
<p align="center"><font size="1" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="39" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="1" face="Times New Roman">82,382</font></td>
<td valign="bottom" width="33">
<font size="1">&nbsp;</font></td>
<td valign="bottom" width="37">
<p align="center"><font size="1">&nbsp;</font></p>
</td>
<td valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" nowrap>
<p align="right">
<font size="1" face="Times New Roman">$4,293,217<sup>(5)</sup></font></td>
<td valign="bottom" width="33">
<p align="center"><sup><font face="Times New Roman" size="1">&nbsp;</font></sup></td>
<td valign="bottom" width="32">
<font size="1">&nbsp;</font></td>
<td valign="bottom" width="28" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font face="Times New Roman" size="1">&nbsp;0</font></td>
<td valign="bottom" width="35">
<font face="Times New Roman" size="1">&nbsp;</font></td>
<td valign="bottom" width="66" align="right"><font size="1">&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;548,738</u>&nbsp;&nbsp;&nbsp;</font></td>
<td valign="bottom" width="20">
<font size="1">&nbsp;</font></td>
<td valign="bottom" width="38" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font face="Times New Roman" size="1">&nbsp;34,818</font></td>
<td valign="bottom" width="30">
<font size="1">&nbsp;</font></td>
</tr>

<tr>
<td valign="bottom" width="94">
<p align="left"><font size="1" face="Times New Roman">Total</font></p>
</td>
<td valign="bottom" width="114" colspan="3">
<p align="right"><font size="1" face="Times New Roman">$13,849,086<sup>(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</sup></font></p>
</td>
<td valign="bottom" width="100" colspan="3">
<p align="center"><font size="1" face="Times New Roman">186,028</font></p>
</td>
<td valign="bottom" width="100" colspan="3">
<p align="right"><font size="1" face="Times New Roman">$9,694,361<sup>(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</sup></font></p>
</td>
<td valign="bottom" width="95" colspan="3">
<p align="center"><font size="1" face="Times New Roman">0</font></p>
</td>
<td valign="bottom" width="66" align="right"><font size="1">&nbsp;1,239,086&nbsp;&nbsp;&nbsp;</font></td>
<td valign="bottom" width="88" colspan="3">
<p align="center"><font size="1" face="Times New Roman">88,621</font></p>
</td>
</tr>
</table>
</div>

<table border="0" cellspacing="0" width="17%" style="border-collapse: collapse" bordercolor="#111111" cellpadding="0">
  <tr>
    <td width="100%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
</table>

<table border="0" cellspacing="0" cellpadding="5" width="662" style="border-collapse: collapse" bordercolor="#111111">
<tr>
<td valign="top" width="38">
<p align="left"><font size="1" face="Times New Roman">(1)</font></p>
</td>
<td valign="top" width="624">
<p align="left"><font size="1" face="Times New Roman">The Debt Conversion is made according to the following formula:&nbsp; the
number of shares issued is equal to (1) the sum of 30% of the principal amount of the Subordinated Debt plus all accrued interest
and fees (2) divided by $5.7564, which is the Exchange Ratio.&nbsp; The Warrant Conversion is made according to the following
formula:&nbsp; each Warrant is exchanged for a number of shares equal to (1) the Exchange Ratio minus the exercise price of the
Warrant, (2) multiplied by the number of shares underlying the Warrant and (3) divided by the Exchange Ratio.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="38">
<p align="left"><font size="1" face="Times New Roman">(2)</font></p>
</td>
<td valign="top" width="624">
<p align="left"><font size="1" face="Times New Roman">Does not include accrued interest and fees of $1,659,150 being converted in the
Debt Conversion.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="38">
<p align="left"><font size="1" face="Times New Roman">(3)</font></p>
</td>
<td valign="top" width="624">
<p align="left"><font size="1" face="Times New Roman">Does not include accrued interest and fees of $
1,318,812 being converted in
the Debt Conversion.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="38">
<p align="left"><font size="1" face="Times New Roman">(4)</font></p>
</td>
<td valign="top" width="624">
<p align="left"><font size="1" face="Times New Roman">Does not include accrued interest and fees of $2,977,962 being converted in the
Debt Conversion.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="38">
<p align="left"><font size="1" face="Times New Roman">(5)</font></p>
</td>
<td valign="top" width="624">
<p align="left"><font size="1" face="Times New Roman">No accrued interest and fees will be outstanding as of the time of the Debt
Conversion.</font></p>
</td>
</tr>
</table>

<p align="left"><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contrarian&rsquo;s Debt
Conversion and Warrant Conversion closed on&nbsp; January __, 2004.&nbsp; If shareholder approval of the Exchange Proposal is not
obtained, then Contrarian will have the right, exercisable within five days of the shareholders&rsquo; meeting, to rescind its Debt
Conversion and Warrant Conversion.&nbsp; In connection with that closing, $9.75 million of the principal amount of the Subordinated
Debt owned by both Contrarian and Harbourside was amended to provide for an extended maturity date of July 31, 2005 (which is after
the July 23, 2005 maturity date of the Senior Credit Facility), subject to the condition subsequent of obtaining shareholder
approval with respect to the portion of the Subordinated Debt held by Harbourside.&nbsp; In addition, the interest rates on the
Subordinated Debt was adjusted to 18% per year on the notes held by Contrarian and 9% per year on the notes held by Harbourside to
yield an effective rate of 14% per year on the Junior Credit Facility.&nbsp; At that time, the financial covenants in the Junior
Credit Facility were amended to match those in the Senior Credit Facility, which had been substantially relaxed in favor of the
Company.&nbsp; Specifically, the consolidated fixed charge coverage ratio covenant was amended to provide that the Company may not
have a consolidated fixed charge coverage ratio of less than 1.1 to 1.0 for each four quarter period beginning with the four
quarter period ending March 30, 2003.&nbsp; The consolidated fixed charge coverage ratio is the ratio of consolidated EBITDA to
consolidated fixed charges.&nbsp; In addition, the consolidated EBITDA covenant was amended to provide that the Company must have
consolidated EBITDA for each trailing three month period ended as of the last day of each month, commencing on March 31, 2004, of
at least $2.5 million.</font></p>

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

<p align="left"><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In addition to the Exchange
Agreements described above, the Company has also entered into registration rights agreements as contemplated in the Binding
Restructuring Agreement with each of Contrarian and Harbourside.&nbsp; Under each of the agreements, the Company has agreed to file
a registration statement covering the shares within 60 days of January __, 2004.&nbsp; The Company is obligated to use its best
efforts to cause the registration statement to be made effective as soon as practicable and to maintain its effectiveness until the
shares become eligible for resale under Rule 144(k).&nbsp;</font></p>

<p><b><font size="2" face="Times New Roman">Interests of Certain Persons in the Transaction</font></b></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
William G. Miller is the general partner of, and controls, Harbourside Investments, LLLP, the entity which holds a portion of the
Subordinated Debt.&nbsp; Mr. Miller is Chairman of the Board and Co-Chief Executive Officer of the Company, as well as the holder
of approximately 16% of the Company&rsquo;s outstanding Common Stock.&nbsp; Mr.&nbsp;Miller, Jeffrey I. Badgley, the
Company&rsquo;s President and Co-Chief Executive Officer, J. Vincent Mish, the Company&rsquo;s Executive Vice President and Chief
Financial Officer and Frank Madonia, the Company&rsquo;s Executive Vice President, Secretary and General Counsel, are all limited
partners in Harbourside Investments, LLLP.&nbsp; In connection with the formation of Harbourside, Mr. Miller made loans to the
other executive officers, the proceeds of which the other executive officers then contributed to Harbourside.&nbsp; These loans
from Mr. Miller to the other executive officers are secured by pledges of their respective limited partnership interests to Mr.
Miller.</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;
As partners of Harbourside, each of Messrs. Miller, Badgley, Mish and Madonia will indirectly receive cash and shares of common
stock of the Company in exchange for the Subordinated Debt and Warrants currently held by Harbourside.&nbsp; As general partner of
Harbourside, Mr. Miller will have sole voting power over the shares of the Company&rsquo;s Common Stock that Harbourside will
receive in the exchange.</font></p>

<p><b><font size="2" face="Times New Roman">Reasons for Seeking Shareholder Approval</font></b></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company is seeking shareholder approval of the issuance of shares to Harbourside in exchange for a portion of the Subordinated
Debt as required by paragraph 312.03(b) of the New York Stock Exchange Listed Company Manual (the &ldquo;NYSE Manual&rdquo;)
because the exchange would result in the issuance of shares of Common Stock greater than one percent of the outstanding shares of
Common Stock to Harbourside, an entity in which executive officers and directors of the Company have a direct interest.&nbsp; This
approval requirement is not required with respect to the exchange by Contrarian.</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;</font><font size="2">
</font><font size="2" face="Times New
Roman">Pursuant to Section 312.03 of the NYSE Manual, an affirmative vote of the majority of the votes cast (provided that the
total vote for the proposal represents over a 50% interest of all of the Company&rsquo;s Common Stock) regarding the proposal is
required for approval of this proposal.&nbsp; Mr. Miller, Mr. Badgley, Mr. Mish and Mr. Madonia collectively own approximately 17%
of the outstanding shares of Common Stock.&nbsp; Each of them has indicated that they currently intend to vote their shares of
Common Stock in favor of the proposal.</font></p>

<p><b><font size="2" face="Times New Roman">Effect of the Transaction</font></b></p>

<p><b><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b> <font size="2">The
number of shares of the Company&rsquo;s Common Stock issued to Harbourside in the Debt Conversion and the Warrant Conversion will
be 548,738 and 34,818, respectively.&nbsp; The total number of shares issuable to Harbourside in the exchange would represent
5.9% of the Company&rsquo;s total issued and outstanding shares after the exchange.&nbsp; The following table shows the number of
shares issued to Contrarian or to be issued to Harbourside in their respective Debt Conversion and Warrant Conversion, as well as
the total number of shares issued or to be issued.</font></p>

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

<div align="left">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111" width="550">
<tr>
<td valign="top" width="150"><font size="2">&nbsp;</font></td>
<td colspan="3" valign="top" width="389">
<p align="center"><b><u><font size="2" face="Times New Roman">Shares of Common Stock Issued In:</font></u></b></p>
</td>
</tr>

<tr>
<td valign="top" width="150"><font size="2">&nbsp;</font></td>
<td valign="top" width="135">
<p align="center"><b><u><font size="2" face="Times New Roman">Debt Conversion</font></u><sup><font size=
"2">(1)</font></sup></b></p>
</td>
<td valign="top" width="144">
<p align="center"><b><u><font size="2" face="Times New Roman">Warrant Conversion</font></u><sup><font size=
"2">(2)</font></sup></b></p>
</td>
<td valign="top" width="121">
<p align="center"><b><u><font size="2" face="Times New Roman">Total</font></u></b></p>
</td>
</tr>

<tr>
<td valign="top" width="150">
<p><font size="2" face="Times New Roman">Contrarian</font></p>
</td>
<td valign="top" width="135" align="right"><font size="2">&nbsp;690,348&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
<td valign="top" width="144">
<p align="center"><font size="2" face="Times New Roman">53,803</font></p>
</td>
<td valign="top" width="121" align="right"><font size="2">&nbsp;734,151&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="150">
<p><font size="2" face="Times New Roman">Harbourside</font></p>
</td>
<td valign="top" width="135" align="right"><font size="2">&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;548,738</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
<td valign="top" width="144">
<p align="center"><u><font size="2" face="Times New Roman">34,818</font></u></p>
</td>
<td valign="top" width="121" align="right"><font size="2">&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;583,556</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="150">
<p><font size="2" face="Times New Roman">Total</font></p>
</td>
<td valign="top" width="135" align="right"><font size="2">&nbsp;1,239,086&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
<td valign="top" width="144">
<p align="center"><font size="2" face="Times New Roman">88,621</font></p>
</td>
<td valign="top" width="121" align="right"><font size="2">&nbsp;1,317,707&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
</tr>
</table>
</div>

<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="17%">
  <tr>
    <td width="100%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
</table>

<table border="0" cellspacing="0" cellpadding="0">
<tr>
<td valign="top">
<p align="left"><font size="1" face="Times New Roman">(1)</font></p>
</td>
<td valign="top">
<p align="left"><font size="1" face="Times New Roman">The Debt Conversion is made according to the following formula:&nbsp; the
number of shares issued is equal to the (1) sum of 30% of the principal amount of the Subordinated Debt plus all accrued interest
and fees (2) divided by $5.7564, which is the Exchange Ratio.&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p align="left"><font size="1" face="Times New Roman">(2)</font></p>
</td>
<td valign="top">
<p align="left"><font size="1" face="Times New Roman">The Warrant Conversion is made according to the following formula:&nbsp; each
warrant is exchanged for a number of shares equal to (1) the Exchange Ratio minus the exercise price of the
warrant, (2) multiplied
by the number of shares underlying the warrant and (3) divided by the Exchange Ratio.</font></p>
</td>
</tr>
</table>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The issuance of the shares of Common Stock in exchange for the Subordinated Debt and
warrants will be dilutive to the outstanding
shares of the Company&rsquo;s Common Stock.&nbsp; The issuance of the Company&rsquo;s Common Stock could also depress the market
price of the Company&rsquo;s Common Stock by increasing the number of shares of the Company&rsquo;s Common Stock that is
outstanding.&nbsp; Prior to the issuance of the Company&rsquo;s Common Stock in the Exchange, holders of the Company&rsquo;s Common
Stock other than Harbourside and its limited partners and Contrarian owned approximately
83.1% of the Company&rsquo;s issued and
outstanding Common Stock.&nbsp; After the consummation of the Exchange Proposal, holders of the Company&rsquo;s Common Stock other
than Harbourside and its limited partners and Contrarian will own approximately
69.0% of the Company&rsquo;s issued and outstanding
Common Stock.</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;
The following table sets forth (1) the beneficial ownership of the Company&rsquo;s Common Stock by the partners of Harbourside as
of December 31, 2003 and (2) the beneficial ownership of the Company&rsquo;s Common Stock by the partners of Harbourside after
giving effect to Harbourside&rsquo;s Debt Conversion and Warrant Conversion.&nbsp; As evidenced by the table, the consummation of
the Exchange Proposal will further consolidate shares of the Company&rsquo;s Common Stock, and thereby voting authority, into the
hands of the Company&rsquo;s executive officers.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="619" style="border-collapse: collapse" bordercolor="#111111">
<tr>
<td valign="bottom" width="216">
<p align="center"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" width="7">
<p align="center"><b><font size="2" face="Times New Roman">&nbsp;&nbsp;</font></b></p>
</td>
<td colspan="3" valign="bottom" width="166" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><b><font size="2" face="Times New Roman">Prior to Giving Effect to the<br />
 Proposal</font></b></p>
</td>
<td valign="bottom" width="15">
<p align="center"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td colspan="3" valign="bottom" width="215" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><b><font size="2" face="Times New Roman">After Giving Effect to the<br>
 Proposal</font></b></p>
</td>
</tr>

<tr>
<td valign="bottom" width="216" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><b><font size="2" face="Times New Roman">Name and Address of Beneficial<br />
 Owner</font></b></p>
</td>
<td valign="bottom" width="7">
<p align="center"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" width="87" 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">Amount and<br />
 Nature of<br />
 Beneficial<br />
 Ownership<sup>(1)</sup></font></b></p>
</td>
<td valign="bottom" width="10" style="border-top-style: solid; border-top-width: 1">
<p align="center"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" 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">Percent of<br />
 Class<sup>(1)</sup></font></b></p>
</td>
<td valign="bottom" width="15">
<p align="center"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" width="103" 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">Amount and<br />
 Nature of<br />
 Beneficial<br />
 Ownership<sup>(1)</sup></font></b></p>
</td>
<td valign="bottom" width="34" style="border-top-style: solid; border-top-width: 1">
<p align="center"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" width="78" 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">Percent of<br />
 Class<sup>(1)</sup></font></b></p>
</td>
</tr>

<tr>
<td valign="top" width="216" style="border-top-style: solid; border-top-width: 1">
<p><font size="2" face="Times New Roman">William G. Miller</font></p>
</td>
<td valign="top" width="7">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="87" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">1,516,157<sup>(2)&nbsp;&nbsp;&nbsp;&nbsp;</sup></font></p>
</td>
<td valign="top" width="10">
<p><b><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
<td valign="top" width="69" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">16.2%&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="15">
<p align="center"><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="103" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font face="Times New Roman" size="2">2,099,713<sup>(3)&nbsp;&nbsp;&nbsp;</sup></font></p>
</td>
<td valign="top" width="34">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="78" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">19.7%&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="216">
<p><font size="2" face="Times New Roman">Jeffrey I. Badgley</font></p>
</td>
<td valign="top" width="7">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="87">
<p align="right"><font size="2" face="Times New Roman">95,901<sup>(4)&nbsp;&nbsp;&nbsp;&nbsp;</sup></font></p>
</td>
<td valign="top" width="10">
<p><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" width="69">
<p align="center"><font size="2" face="Times New Roman">*</font></p>
</td>
<td valign="top" width="15">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="103">
<p align="right"><font size="2" face="Times New Roman">228,527<sup>(5)&nbsp;&nbsp;&nbsp;</sup></font></p>
</td>
<td valign="top" width="34">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="78">
<p align="right"><font size="2" face="Times New Roman">2.1%&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="216">
<p><font size="2" face="Times New Roman">Frank Madonia</font></p>
</td>
<td valign="top" width="7">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="87">
<p align="right"><font size="2" face="Times New Roman">83,401<sup>(6)&nbsp;&nbsp;&nbsp;&nbsp;</sup></font></p>
</td>
<td valign="top" width="10">
<p><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" width="69">
<p align="center"><font size="2" face="Times New Roman">*</font></p>
</td>
<td valign="top" width="15">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="103">
<p align="right"><font size="2" face="Times New Roman">109,926<sup>(7)&nbsp;&nbsp;&nbsp;</sup></font></p>
</td>
<td valign="top" width="34">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="78">
<p align="right"><font size="2" face="Times New Roman">1.0%&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="216">
<p><font size="2" face="Times New Roman">J. Vincent Mish</font></p>
</td>
<td valign="top" width="7">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="87">
<p align="right"><font size="2" face="Times New Roman">58,901<sup>(8)&nbsp;&nbsp;&nbsp;&nbsp;</sup></font></p>
</td>
<td valign="top" width="10">
<p><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" width="69">
<p align="center"><font size="2" face="Times New Roman">*</font></p>
</td>
<td valign="top" width="15">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="103">
<p align="right"><font face="Times New Roman" size="2">85,426<sup>(9)&nbsp;&nbsp;&nbsp;</sup></font></p>
</td>
<td valign="top" width="34">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="78">
<p align="right"><font size="2" face="Times New Roman">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="19%">
  <tr>
    <td width="100%" style="border-bottom-style: solid; border-bottom-width: 1">&nbsp;</td>
  </tr>
</table>
<table border="0" cellpadding="5" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="690">
  <tr>
    <td width="47" valign="top"><font size="2" face="Times New Roman">*&nbsp;</font></td>
    <td width="643"><font size="2" face="Times New Roman">Less than one percent</font></td>
  </tr>
  <tr>
    <td width="47" valign="top"><font size="2" face="Times New Roman">(1)</font></td>
    <td width="643"><font size="2" face="Times New Roman">The Percent of Class column represents the percentage that the named person or group
would beneficially own if such person or group, and only such person or group, exercised all currently exercisable options and
rights to acquire shares of Common Stock held by such person or group.</font></td>
  </tr>
  <tr>
    <td width="47" valign="top"><font size="2" face="Times New Roman">(2)</font></td>
    <td width="643"><font size="2" face="Times New Roman">Includes 109,288 shares held by the Miller Family Foundation, Inc., a Georgia
non-profit corporation of which Mr. Miller is the sole director.&nbsp; Also includes 2,800 shares held by Mr. Miller&rsquo;s minor
son.</font></td>
  </tr>
  <tr>
    <td width="47" valign="top"><font size="2" face="Times New Roman">(3)</font></td>
    <td width="643"><font size="2" face="Times New Roman">Also includes all
    583,556 shares of Common Stock that would be issued to Harbourside,
of which Mr. Miller owns a 21.72% interest as a limited partner and a 1% interest as the sole general partner, in the exchange
transaction.&nbsp; As the sole general partner of Harbourside, Mr. Miller will have sole voting power over the shares of the Common
Stock that would be issued to Harbourside.</font></td>
  </tr>
  <tr>
    <td width="47" valign="top"><font size="2" face="Times New Roman">(4)</font></td>
    <td width="643"><font size="2" face="Times New Roman">Includes 72,586 shares which are issuable pursuant to options which are exercisable
within sixty days of the date set forth above.</font></td>
  </tr>
  <tr>
    <td width="47" valign="top"><font size="2" face="Times New Roman">(5)</font></td>
    <td width="643"><font size="2" face="Times New Roman">Also includes 132,626 shares that would be issued to Harbourside, of which Mr. Badgley
owns a 22.73% interest as a limited partner, in the exchange transaction.</font></td>
  </tr>
  </table>

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

<table border="0" cellpadding="5" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="690">
  <tr>
    <td width="47" valign="top"><font size="2" face="Times New Roman">(6)</font></td>
    <td width="643"><font size="2" face="Times New Roman">Includes 59,786 shares which are issuable pursuant to options which are exercisable
within sixty days of the date set forth above.</font></td>
  </tr>
  <tr>
    <td width="47" valign="top"><font size="2" face="Times New Roman">(7)</font></td>
    <td width="643"><font size="2" face="Times New Roman">Also includes 26,525 shares that would be issued to Harbourside, of which Mr. Madonia
owns a 4.55% interest as a limited partner, in the exchange transaction.</font></td>
  </tr>
  <tr>
    <td width="47" valign="top"><font size="2" face="Times New Roman">(8)</font></td>
    <td width="643"><font size="2" face="Times New Roman">Includes 43,286 shares which are issuable pursuant to options which are exercisable
within sixty days of the date set forth above.</font></td>
  </tr>
  <tr>
    <td width="47" valign="top"><font size="2" face="Times New Roman">(9)</font></td>
    <td width="643"><font size="2" face="Times New Roman">Also</font><font size="2"> includes
    26,525 shares that would be issued to Harbourside, of which Mr. Mish owns a 4.55% interest as a limited partner, in the exchange transaction.</font></td>
  </tr>
</table>

<p><b><font size="2" face="Times New Roman">Description of Subordinated Debt and Warrants</font></b></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<i>The Subordinated Debt</i></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;
The Subordinated Debt held by Contrarian and Harbourside was issued pursuant to the Junior Credit Facility.&nbsp; The Junior Credit
Facility and the notes issued pursuant to it are subordinate to the Company&rsquo;s senior credit facility which was also entered
into on July 23, 2001.&nbsp;</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;
<i>Principal, Maturity and Interest.&nbsp;</i> The Subordinated Debt had an original aggregate principal amount of $14.0 million
and current outstanding principal amount of approximately $13.8 million.&nbsp; The Subordinated Debt currently bears interest at
10.0% <u>over the prime rate</u> as a result of its maturity on July 23, 2003.&nbsp; The total amount outstanding on the Subordinated Debt
as of January 14, 2004, including accrued interest and commitment fees, was
$16,827,048.</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;
<i>Security.&nbsp;</i></font><font size="2"> The Subordinated Debt 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;</font></p>

<p><i><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Terms of the Subordinated
Debt.&nbsp;</font></i><font size="2"> </font>
<font size="2" face="Times New Roman">The Subordinated Debt is not convertible into shares of the Company&rsquo;s
Common Stock by its terms and does not have the right to vote on any matter presented to the shareholders of the Company for their
approval.&nbsp; The Junior Credit Facility contains covenants, events of default and other terms typical in a junior subordinated
facility.&nbsp; Covenants under the Junior Credit Facility include, but are not limited to, providing certain financial reports to
the subordinated debtholders, complying with all applicable laws and notifying the subordinated debtholders of certain material
events.&nbsp; Under the terms of the Junior Credit Facility, the Company may not, among other things, fall below certain financial
covenants (including consolidated EBITDA and fixed charge coverage ratio covenants), enter into certain acquisitions, transfer
assets or merge into another entity without the subordinated debtholders&rsquo; consent.&nbsp; Events of default under the Junior
Credit Facility, include but are not limited to, failure to pay amounts under the facility when due, failure to comply with the
covenants contained in the facility, a change of control of the Company or the Company entering into bankruptcy.&nbsp; Upon an
event of default, the entire subordinated debt will become due and payable, subject to certain procedural requirements.&nbsp; In
addition, the subordinated debtholders may have the right to close on certain collateral to collect on overdue
obligations.</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;
<i>Warrants</i></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;
The Junior Credit Facility also contains provisions for the issuance of warrants.&nbsp; On July 23, 2002, the Company issued 47,417
warrants for the purchase of the Company&rsquo;s Common Stock as a result of these provisions.&nbsp; The Company has issued an
additional 138,611 warrants for shares of Common Stock in accordance with these provisions in October 2003.&nbsp; In connection
with Contrarian&rsquo;s purchase of all of the outstanding Subordinated Debt, Contrarian acquired all of the warrants and
subsequently transferred warrants to purchase 82,382 shares to Harbourside.&nbsp; Harbourside acquired from Contrarian warrants to
purchase 20,998 shares which have an exercise price of $3.48 and warrants to purchase 61,384 shares which have an exercise price of
$3.27.</font></p>

<p><b><font size="2" face="Times New Roman">Description of Common Stock</font></b></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The holders of the Company&rsquo;s
Common Stock are entitled to one vote per share on all matters to be voted on by the shareholders and are entitled to receive such
dividends, if any, as may be declared from time to time by the board of directors from legally available funds. Accordingly, the
holders of a majority of the outstanding shares of Common Stock voting in an election of directors can elect all of the directors
then standing for election, if they choose to do so.&nbsp; All shares of Common Stock are entitled to share equally in any
dividends that the Board of Directors may, in its discretion, declare out of sources legally available therefore.&nbsp; If the
Company dissolves, liquidates or winds up, holders of the Common Stock are entitled to receive on a ratable basis all of our assets
available for distribution, in cash or in kind, after payment or provision for payment of all of the Company&rsquo;s debts and
liabilities, including amounts due to the holders of the Subordinated Debt, and any preferential amount due to holders of preferred
stock.&nbsp; Holders of Common Stock do not have any preemptive or other subscription rights, conversion or redemption rights, or
any rights to share in any sinking fund.</font></p>

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

<p><b><font size="2" face="Times New Roman">Financial Statements, Supplementary Financial Information, and Management&rsquo;s
Discussion and Analysis of Financial Condition and Results of Operations</font></b></p>

<p><i><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial Statements and
Supplementary Financial Information</font></i></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Attached as Annex C to this proxy statement are the financial statements of the Company for the fiscal years ended December 31,
2002 and December 31, 2001 and for the quarter ended September 30, 2003.&nbsp; The financial statements for the fiscal year ended
December 31, 2002 and December 31, 2001 have been excerpted from the Company&rsquo;s Annual Report on Form 10-K for 2002 as filed
with the Securities and Exchange Commission.&nbsp; The financial statements for the quarter ended September 30, 2003, specifically

the notes thereto, have been modified since they were included in the Company&rsquo;s Quarterly Report on Form 10-Q filed with the
Securities and Exchange Commission.&nbsp; The revisions to the quarterly financial statements are indicated in
bolded, italicized and bracketed text in Annex C.&nbsp;</font></p>

<p><i><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Management&rsquo;s Discussion and
Analysis of Financial Condition and Results of Operations</font></i></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Attached as Annex D to this proxy statement is Management&rsquo;s Discussion and Analysis of Financial Condition and Results of
Operation.&nbsp; This discussion consists of modified versions of the separate discussions that were included in the
Company&rsquo;s Annual Report on Form 10-K for 2002, and its Quarterly Report on Form 10-Q for the quarter ended September 30,
2003, which were filed with the Securities and Exchange Commission.&nbsp; Revisions to these sections from their inclusion in the
respective reports are indicated in bolded, italicized and bracketed text in Annex
D.&nbsp;&nbsp;</font></p>

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

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Under Tennessee law, the holders of
the Company&rsquo;s Common Stock are not entitled to dissenters&rsquo; rights in connection with the Exchange Proposal.</font></p>

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

<p><b><font size="2" face="Times New Roman
Bold">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; THE
BOARD OF DIRECTORS, BASED ON
THE RECOMMENDATION OF THE SPECIAL COMMITTEE, RECOMMENDS THAT SHAREHOLDERS VOTE FOR
THE APPROVAL OF THE ISSUANCE OF SHARES OF COMMON
STOCK IN EXCHANGE FOR CERTAIN SUBORDINATED PROMISSORY NOTES AND WARRANTS AS DESCRIBED
IN THE FIRST PARAGRAPH OF THIS SECTION OF THE PROXY STATEMENT.</font></b></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><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">19<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>

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

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

<p align="left"><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The following table sets forth
certain information for the fiscal years ended December 31, 2003 and  2002, the eight month transition period
ended December 31, 2001 (noted as &ldquo;Trans. Per.&rdquo;) and the fiscal years ended April 30, 2001 and 2000 of the Company
concerning compensation paid by the Company and its subsidiaries to the Company&rsquo;s Chief Executive Officer and to each of the
Company&rsquo;s other most highly compensated executive officers as of December 31, 2003 who earned in excess of $100,000 in salary
and bonus during the fiscal year 2003 (collectively, the &ldquo;Named Executive Officers&rdquo;).</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="691" style="border-collapse: collapse" bordercolor="#111111">

<tr>
<td valign="bottom" width="225">
<b><font face="Times New Roman" size="2">&nbsp;</font></b></td>
<td valign="bottom" width="15" align="center" style="border-bottom-style: none; border-bottom-width: medium">
&nbsp;</td>
<td valign="bottom" width="77">
<b><font face="Times New Roman" size="2">&nbsp;</font></b></td>
<td valign="bottom" width="10" align="center" style="border-bottom-style: none; border-bottom-width: medium">
&nbsp;</td>
<td valign="bottom" width="160" colspan="3" align="center" style="border-bottom-style: solid; border-bottom-width: 1">
<b><font size="2">Annual<br>
Compensation</font><sup><font size="2">(1)</font></sup></b></td>
<td valign="bottom" width="10" align="center" style="border-bottom-style: none; border-bottom-width: medium">
&nbsp;</td>
<td valign="bottom" width="194" colspan="3" align="center" style="border-bottom-style: solid; border-bottom-width: 1">
<b><font size="2">Long Term<br>
Compensation<br>
Awards</font></b></td>
</tr>

<tr>
<td valign="bottom" width="225" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><b><font size="2" face="Times New Roman">Name and Principal Position</font></b></p>
</td>
<td valign="bottom" width="15" style="border-style: none; border-width: medium">
<b><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></td>
<td valign="bottom" width="77" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><b><font size="2" face="Times New Roman">Year</font></b></p>
</td>
<td valign="bottom" width="10" style="border-style: none; border-width: medium">
<b><font face="Times New Roman" size="2">&nbsp;</font></b></td>
<td valign="bottom" width="81" style="border-right-style: none; border-right-width: medium; 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">Salary ($)</font></b></p>
</td>
<td valign="bottom" width="15" style="border-style: none; border-width: medium">
<font size="2">&nbsp;</font></td>
<td valign="bottom" width="64" style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><b><font size="2" face="Times New Roman">Bonus ($)</font></b></p>
</td>
<td valign="bottom" width="10" style="border-style: none; border-width: medium">
<b><font face="Times New Roman" size="2">&nbsp;</font></b></td>
<td valign="bottom" width="79" style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; 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">Securities<br />
 Underlying<br />
 Options (#)</font></b></p>
</td>
<td valign="bottom" width="23" style="border-style: none; border-width: medium">
<p align="center">&nbsp;</p>
</td>
<td valign="bottom" width="92" style="border-left-style: none; border-left-width: medium; 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">All Other<br />
 Compensation<br />
 ($)</font></b></td>
</tr>

<tr>
<td valign="top" width="225" style="border-top-style: solid; border-top-width: 1">
<p style="margin-top: 10"><font size="2" face="Times New Roman">William G. Miller</font></p>
</td>
<td valign="top" width="15" style="border-top-style: none; border-top-width: medium">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="77" style="border-top-style: solid; border-top-width: 1">
<p align="center" style="margin-top: 10"><font size="2" face="Times New Roman">2003</font></p>
</td>
<td valign="top" width="10" style="border-top-style: none; border-top-width: medium">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="81" style="border-top-style: solid; border-top-width: 1">
<p align="right" style="margin-top: 10"><font size="2" face="Times New Roman">$180,000&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="15" style="border-top-style: none; border-top-width: medium">
<font size="2">&nbsp;</font></td>
<td valign="top" width="64" style="border-top-style: solid; border-top-width: 1">
<p align="center" style="margin-top: 10"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="10" style="border-top-style: none; border-top-width: medium">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="79" style="border-top-style: solid; border-top-width: 1">
<p align="center" style="margin-top: 10"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="23" style="border-top-style: none; border-top-width: medium">
<font size="2">&nbsp;</font></td>
<td valign="top" width="92" style="border-top-style: solid; border-top-width: 1">
<p align="center" style="margin-top: 10"><font size="2" face="Times New Roman">-</font></p>
</td>
</tr>

<tr>
<td valign="top" width="225">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chairman and Co-Chief Executive<br>
&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;Officer<sup>(2)</sup></font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="77">
<p align="center"><font size="2" face="Times New Roman">2002</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="81">
<p align="right"><font size="2" face="Times New Roman">180,000&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="15">
<font size="2">&nbsp;</font></td>
<td valign="top" width="64">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="79">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="23">
<font size="2">&nbsp;</font></td>
<td valign="top" width="92">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
</tr>

<tr>
<td valign="top" width="225">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="77">
<p align="center"><font size="2" face="Times New Roman">Trans. Per.</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="81">
<p align="right"><font size="2" face="Times New Roman">120,000&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="15">
<font size="2">&nbsp;</font></td>
<td valign="top" width="64">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="79">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="23">
<font size="2">&nbsp;</font></td>
<td valign="top" width="92">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
</tr>

<tr>
<td valign="top" width="225"><font size="2">&nbsp;</font></td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="77">
<p align="center"><font size="2" face="Times New Roman">2001</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="81">
<p align="right"><font size="2" face="Times New Roman">180,000&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="15">
<font size="2">&nbsp;</font></td>
<td valign="top" width="64">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="79">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="23">
<font size="2">&nbsp;</font></td>
<td valign="top" width="92">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
</tr>

<tr>
<td valign="top" width="225"><font size="2">&nbsp;</font></td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="77">
<p align="center"><font size="2" face="Times New Roman">2000</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="81">
<p align="right"><font size="2" face="Times New Roman">180,000&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="15">
<font size="2">&nbsp;</font></td>
<td valign="top" width="64">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="79">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="23">
<font size="2">&nbsp;</font></td>
<td valign="top" width="92">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
</tr>

<tr>
<td valign="top" width="225"><font size="2">&nbsp;</font></td>
<td valign="top" width="15"><font size="2">&nbsp;</font></td>
<td valign="top" width="77"><font size="2">&nbsp;</font></td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" width="81"><font size="2">&nbsp;&nbsp;&nbsp;</font></td>
<td valign="top" width="15"><font size="2">&nbsp;</font></td>
<td valign="top" width="64"><font size="2">&nbsp;</font></td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" width="79"><font size="2">&nbsp;</font></td>
<td valign="top" width="23"><font size="2">&nbsp;</font></td>
<td valign="top" width="92"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="225">
<p><font size="2" face="Times New Roman">Jeffrey I. Badgley</font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="77">
<p align="center"><font size="2" face="Times New Roman">2003</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="81">
<p align="right"><font size="2" face="Times New Roman">276,210&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="15">
<font size="2">&nbsp;</font></td>
<td valign="top" width="64">
<p align="center"><sup><font size="2" face="Times New Roman">-</font></sup></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="79">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="23">
<font size="2">&nbsp;</font></td>
<td valign="top" width="92">
<p align="center"><font size="2" face="Times New Roman">$2,035<sup>(5)</sup></font></p>
</td>
</tr>

<tr>
<td valign="top" width="225">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President and Co-Chief Executive<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Officer<sup>(3)</sup></font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="77">
<p align="center"><font size="2" face="Times New Roman">2002</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="81">
<p align="right"><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;276,210&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="15">
<font size="2">&nbsp;</font></td>
<td valign="top" width="64">
<p align="center"><font size="2" face="Times New Roman">45,000<sup>(4)</sup></font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="79">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="23">
<font size="2">&nbsp;</font></td>
<td valign="top" width="92">
<p align="center"><font size="2" face="Times New Roman">&nbsp;&nbsp; 1,496<sup>(5)</sup></font></p>
</td>
</tr>

<tr>
<td valign="top" width="225">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="77">
<p align="center"><font size="2" face="Times New Roman">Trans. Per.</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="81">
<p align="right"><font size="2" face="Times New Roman">184,133&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="15">
<font size="2">&nbsp;</font></td>
<td valign="top" width="64">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="79">
<p align="right"><font size="2" face="Times New Roman">8,000</font></p>
</td>
<td valign="top" width="23">
<font size="2">&nbsp;</font></td>
<td valign="top" width="92">
<p align="center"><font size="2" face="Times New Roman">&nbsp;&nbsp; 1,726<sup>(5)</sup></font></p>
</td>
</tr>

<tr>
<td valign="top" width="225">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="77">
<p align="center"><font size="2" face="Times New Roman">2001</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="81">
<p align="right"><font size="2" face="Times New Roman">266,667&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="15">
<font size="2">&nbsp;</font></td>
<td valign="top" width="64">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="79">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="23">
<font size="2">&nbsp;</font></td>
<td valign="top" width="92">
<p align="center"><font size="2" face="Times New Roman">&nbsp;&nbsp; 8,928<sup>(6)</sup></font></p>
</td>
</tr>

<tr>
<td valign="top" width="225"><font size="2">&nbsp;</font></td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="77">
<p align="center"><font size="2" face="Times New Roman">2000</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="81">
<p align="right"><font size="2" face="Times New Roman">245,833&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="15">
<font size="2">&nbsp;</font></td>
<td valign="top" width="64">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="79">
<p align="right"><font size="2" face="Times New Roman">16,000</font></p>
</td>
<td valign="top" width="23">
<font size="2">&nbsp;</font></td>
<td valign="top" width="92">
<p align="center"><font size="2" face="Times New Roman">&nbsp;&nbsp; 1,424<sup>(5)</sup></font></p>
</td>
</tr>

<tr>
<td valign="top" width="225"><font size="2">&nbsp;</font></td>
<td valign="top" width="15"><font size="2">&nbsp;</font></td>
<td valign="top" width="77"><font size="2">&nbsp;</font></td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" width="81"><font size="2">&nbsp;</font></td>
<td valign="top" width="15"><font size="2">&nbsp;</font></td>
<td valign="top" width="64"><font size="2">&nbsp;</font></td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" width="79"><font size="2">&nbsp;</font></td>
<td valign="top" width="23"><font size="2">&nbsp;</font></td>
<td valign="top" width="92"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="225">
<p><font size="2" face="Times New Roman">Frank Madonia</font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="77">
<p align="center"><font size="2" face="Times New Roman">2003</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="81">
<p align="right"><font size="2" face="Times New Roman">196,207&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="15">
<font size="2">&nbsp;</font></td>
<td valign="top" width="64">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="79">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="23">
<font size="2">&nbsp;</font></td>
<td valign="top" width="92">
<p align="center"><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp; 1,980<sup>(5)</sup></font></p>
</td>
</tr>

<tr>
<td valign="top" width="225">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive Vice President, Secretary<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and General Counsel</font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="77">
<p align="center"><font size="2" face="Times New Roman">2002</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="81">
<p align="right"><font size="2" face="Times New Roman">196,207&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="15">
<font size="2">&nbsp;</font></td>
<td valign="top" width="64">
<p align="center"><font size="2" face="Times New Roman">22,000<sup>(4)</sup></font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="79">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="23">
<font size="2">&nbsp;</font></td>
<td valign="top" width="92">
<p align="center"><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp; 1,717<sup>(5)</sup></font></p>
</td>
</tr>

<tr>
<td valign="top" width="225">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="77">
<p align="center"><font size="2" face="Times New Roman">Trans. Per.</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="81">
<p align="right"><font size="2" face="Times New Roman">130,800&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="15">
<font size="2">&nbsp;</font></td>
<td valign="top" width="64">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="79">
<p align="right"><font size="2" face="Times New Roman">5,000</font></p>
</td>
<td valign="top" width="23">
<font size="2">&nbsp;</font></td>
<td valign="top" width="92">
<p align="center"><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp; 1,308<sup>(5)</sup></font></p>
</td>
</tr>

<tr>
<td valign="top" width="225">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="77">
<p align="center"><font size="2" face="Times New Roman">2001</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="81">
<p align="right"><font size="2" face="Times New Roman">191,667&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="15">
<font size="2">&nbsp;</font></td>
<td valign="top" width="64">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="79">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="23">
<font size="2">&nbsp;</font></td>
<td valign="top" width="92">
<p align="center"><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6,628<sup>(5)(7)</sup></font></p>
</td>
</tr>

<tr>
<td valign="top" width="225"><font size="2">&nbsp;</font></td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="77">
<p align="center"><font size="2" face="Times New Roman">2000</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="81">
<p align="right"><font size="2" face="Times New Roman">178,333&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="15">
<font size="2">&nbsp;</font></td>
<td valign="top" width="64">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="79">
<p align="right"><font size="2" face="Times New Roman">12,000</font></p>
</td>
<td valign="top" width="23">
<font size="2">&nbsp;</font></td>
<td valign="top" width="92">
<p align="center"><font size="2" face="Times New Roman">&nbsp;&nbsp; 1,762<sup>(5)</sup></font></p>
</td>
</tr>

<tr>
<td valign="top" width="225"><font size="2">&nbsp;</font></td>
<td valign="top" width="15"><font size="2">&nbsp;</font></td>
<td valign="top" width="77"><font size="2">&nbsp;</font></td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" width="81"><font size="2">&nbsp;</font></td>
<td valign="top" width="15"><font size="2">&nbsp;</font></td>
<td valign="top" width="64"><font size="2">&nbsp;</font></td>
<td valign="top" width="10"><font size="2">&nbsp;</font></td>
<td valign="top" width="79"><font size="2">&nbsp;</font></td>
<td valign="top" width="23"><font size="2">&nbsp;</font></td>
<td valign="top" width="92"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td valign="top" width="225">
<p><font size="2" face="Times New Roman">J. Vincent Mish</font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="77">
<p align="center"><font size="2" face="Times New Roman">2003</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="81">
<p align="right"><font size="2" face="Times New Roman">176,206&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="15">
<font size="2">&nbsp;</font></td>
<td valign="top" width="64">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="79">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="23">
<font size="2">&nbsp;</font></td>
<td valign="top" width="92">
<p align="center"><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp; 1,770<sup>(5)</sup></font></p>
</td>
</tr>

<tr>
<td valign="top" width="225">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive Vice President, Chief<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Officer and President of the<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Services
Group</font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="77">
<p align="center"><font size="2" face="Times New Roman">2002</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="81">
<p align="right"><font size="2" face="Times New Roman">176,206&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="15">
<font size="2">&nbsp;</font></td>
<td valign="top" width="64">
<p align="center"><font size="2" face="Times New Roman">22,000<sup>(4)</sup></font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="79">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="23">
<font size="2">&nbsp;</font></td>
<td valign="top" width="92">
<p align="center"><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp; 1,628<sup>(5)</sup></font></p>
</td>
</tr>

<tr>
<td valign="top" width="225">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="77">
<p align="center"><font size="2" face="Times New Roman">Trans. Per.</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="81">
<p align="right"><font size="2" face="Times New Roman">117,467&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="15">
<font size="2">&nbsp;</font></td>
<td valign="top" width="64">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="79">
<p align="center"><font size="2" face="Times New Roman">5,000</font></p>
</td>
<td valign="top" width="23">
<font size="2">&nbsp;</font></td>
<td valign="top" width="92">
<p align="center"><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp; 1,067<sup>(5)</sup></font></p>
</td>
</tr>

<tr>
<td valign="top" width="225">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="77">
<p align="center"><font size="2" face="Times New Roman">2001</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="81">
<p align="right"><font size="2" face="Times New Roman">163,333&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="15">
<font size="2">&nbsp;</font></td>
<td valign="top" width="64">
<p align="center"><font size="2" face="Times New Roman">30,000<sup>(4)</sup></font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="79">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="23">
<font size="2">&nbsp;</font></td>
<td valign="top" width="92">
<p align="center"><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6,222<sup>(5)(8)</sup></font></p>
</td>
</tr>

<tr>
<td valign="top" width="225">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="77">
<p align="center"><font size="2" face="Times New Roman">2000</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="81">
<p align="right"><font size="2" face="Times New Roman">153,333&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" width="15">
<font size="2">&nbsp;</font></td>
<td valign="top" width="64">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="10">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="79">
<p align="right"><font size="2" face="Times New Roman">12,000</font></p>
</td>
<td valign="top" width="23">
<font size="2">&nbsp;</font></td>
<td valign="top" width="92">
<p align="center"><font size="2" face="Times New Roman">&nbsp;&nbsp; 1,312<sup>(5)</sup></font></p>
</td>
</tr>
</table>

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

<table border="0" cellpadding="2" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="690">
  <tr>
    <td width="39" valign="top"><font size="2" face="Times New Roman">(1)</font></td>
    <td width="642"><font size="2" face="Times New Roman">Excludes perquisites and other personal benefits aggregating less than
$50,000 or 10% of the named executive officer&rsquo;s annual salary and bonus.</font></td>
  </tr>
  <tr>
    <td width="39" valign="top"><font size="2" face="Times New Roman">(2)</font></td>
    <td width="642"><font size="2" face="Times New Roman">Mr. Miller became the Co-Chief Executive Officer of the Company in October
2003.</font></td>
  </tr>
  <tr>
    <td width="39" valign="top"><font size="2" face="Times New Roman">(3)</font></td>
    <td width="642"><font size="2" face="Times New Roman">Mr. Badgley served as President and Chief Executive Officer of the Company
until October 2003 when he became Co-Chief Executive Officer.</font></td>
  </tr>
</table>

<p align="center"><font face="Times New Roman" size="2">20<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<table border="0" cellpadding="2" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="690">
  <tr>
    <td width="39" valign="top"><font size="2" face="Times New Roman">(4)</font></td>
    <td width="642"><font size="2" face="Times New Roman">Bonus awards consist entirely of amounts earned in previous fiscal years
which are paid incrementally to the executive officer in the year noted in accordance with the Company&rsquo;s bonus
plan.</font></td>
  </tr>
  <tr>
    <td width="39" valign="top"><font size="2" face="Times New Roman">(5)</font></td>
    <td width="642"><font size="2" face="Times New Roman">Consists of a matching contribution made to the executive&rsquo;s account
in the Company&rsquo;s 401(k) Plan.</font></td>
  </tr>
  <tr>
    <td width="39" valign="top"><font size="2" face="Times New Roman">(6)</font></td>
    <td width="642"><font size="2" face="Times New Roman">Mr. Badgley&rsquo;s other compensation includes $6,250 received from the
sale of 125,000 out of the money options to the Company at a purchase price of $0.05 per option and a $2,678 matching contribution
to Mr. Badgley&rsquo;s account in the Company&rsquo;s 401(k) Plan.</font></td>
  </tr>
  <tr>
    <td width="39" valign="top"><font size="2" face="Times New Roman">(7)</font></td>
    <td width="642"><font size="2" face="Times New Roman">Mr. Madonia&rsquo;s other compensation includes $4,700 received from the
sale of 94,000 out of the money options to the Company at a purchase price of $0.05 per option and a $1,928 matching contribution
to Mr. Madonia&rsquo;s account in the Company&rsquo;s 401(k) Plan.</font></td>
  </tr>
  <tr>
    <td width="39" valign="top"><font size="2" face="Times New Roman">(8)</font></td>
    <td width="642"><font size="2" face="Times New Roman">Mr. Mish&rsquo;s other compensation includes $4,700 received from the sale
of 94,000 out of the money options to the Company at a purchase price of $0.05 per option and a $1,522 matching contribution to Mr.
Mish&rsquo;s account in the Company&rsquo;s 401(k) Plan.</font></td>
  </tr>
</table>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
No options were granted to or exercised by the Named Executive Officers during 2002.</font></p>

<p><b><font size="2" face="Times New Roman">Option Values as of December 31, 2003</font></b></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table summarizes certain information regarding option values of the Named Executive Officers as of the end of
December 31, 2003.&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="655" style="border-collapse: collapse" bordercolor="#111111">
<tr>
<td valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">Name</font></p>
</td>
<td valign="bottom">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="3" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">No. of Securities Underlying<br />
 Unexercised Options at<br />
 Fiscal Year End</font></p>
</td>
<td valign="bottom">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="3" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">Value of Unexercised<br />
 In-the-Money Options<br />
 At Fiscal Year End(1)</font></p>
</td>
</tr>

<tr>
<td valign="top" style="border-top-style: solid; border-top-width: 1"><font size="2">&nbsp;</font></td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" 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">Exercisable</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" 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">Unexercisable</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" 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">Exercisable</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" 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">Unexercisable</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">William G. Miller</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">Jeffrey I. Badgley</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">72,586</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">4,000</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">$&nbsp; 17,840</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">$ 17,840</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">Frank Madonia</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">59,786</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">2,500</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp; 11,150</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;&nbsp; 11,150</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">J. Vincent Mish</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">43,286</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">2,500</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp; 11,150</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;&nbsp; 11,150</font></p>
</td>
</tr>
</table>

<p><font size="2" face="Times New Roman">__________________________<br>
(1)&nbsp;&nbsp; As required by the rules of the Securities and Exchange Commission, the
value of unexercised in-the-money options for the Common Stock is calculated based on the closing sale price on the New York Stock
Exchange as of December 31, 2003, which was $7.51 per share.&nbsp;</font></p>

<p><b><font size="2" face="Times New Roman">Employment Contracts, Termination of Employment, Severance and Change-in-Control
Arrangements</font></b></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In December 2002, the Company entered into an employment agreement with Mr. Mish.&nbsp; The employment agreement provides for a
rolling three-year term, extended automatically as of each annual shareholders&rsquo; meeting such that the remaining term of the
employment agreement is three years as of that date.&nbsp; Notwithstanding the foregoing, the term of the agreement ends on Mr.
Mish&rsquo;s 65<sup>th</sup> birthday.&nbsp; The employment agreement provides for a base salary of $175,000, subject to annual
review by the Board of Directors.&nbsp; Additionally, Mr. Mish may participate in any bonus plans or other benefits generally
available to executive officers of the Company.&nbsp; The Company may terminate Mr. Mish pursuant to this employment agreement for
any reason upon written notice.&nbsp; However, if termination is for other than &ldquo;just cause&rdquo; (as defined in the
employment agreements), 100% of Mr. Mish&rsquo;s options on Company stock granted pursuant to the Company&rsquo;s Stock Option and
Incentive Plan will vest and become immediately exercisable, and the Company must pay Mr. Mish his current base salary plus bonuses
and health and life insurance benefits for a period of three years, or until the end of the term of the employment agreement,
whichever is shorter.&nbsp; Finally, the employment agreement also provides for non-competition and confidentiality during
employment and for a period ending two years from termination or expiration of the employment agreement (or one year if termination
occurs pursuant to a change in control).</font></p>

<p>&nbsp;</p>

<p align="center"><font face="Times New Roman" size="2">21<hr size="1" color="#000080" STYLE="page-break-after: always">
<p align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In September 1998, the Company entered into employment agreements with Messrs. Badgley and Madonia.&nbsp; Each employment agreement
provides for a rolling three-year term, extended automatically each day for an additional day such that the remaining term of each
employment agreement is three years.&nbsp; However, on each individual&rsquo;s 62nd birthday, the employment agreement ceases to
extend automatically, and instead terminates three years from that date.&nbsp; The employment agreements provide for base salaries
of $200,000 to Mr. Badgley, and $165,000 to Mr. Madonia, each subject to annual review by the Board of Directors.&nbsp;
Additionally, each individual may participate in any bonus plans or other benefits generally available to executive officers of the
Company.&nbsp; The Company may terminate Messrs. Badgley or Madonia pursuant to their respective employment agreements for any
reason upon written notice.&nbsp; However, if termination is for other than &ldquo;just cause&rdquo; (as defined in the employment
agreements), 100% of the terminated individual&rsquo;s options on Company stock granted pursuant to the Company&rsquo;s Stock
Option and Incentive Plan will vest and become immediately exercisable, and the Company must pay the terminated individual his
current base salary plus bonuses and health and life insurance benefits for a period of three years, or until the end of the term
of the employment agreement, whichever is shorter.&nbsp; Finally, each employment agreement also provides for non-competition and
confidentiality during employment and for a period ending two years from termination or expiration of the employment agreement (or
one year if termination occurs pursuant to a change in control as defined in each individual&rsquo;s change in control agreement
described below).</p>
</font>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In September 1998, the Company entered into change in control agreements with Messrs. Badgley and Madonia.&nbsp; Each change in
control agreement provides for a rolling three-year term, extended automatically each day for an additional day such that the
remaining term of each employment agreement is three years.&nbsp; However, on each individual&rsquo;s 62nd birthday, the employment
agreement ceases to extend automatically, and instead terminates three years from that date.&nbsp; Upon termination within 6 months
prior to or 2 years after a change in control (as defined in each respective change in control agreement), Messrs. Badgley and
Madonia are entitled to payment of then current salary, plus bonuses and incentives, and health and life insurance coverage for a
period of three years following termination.&nbsp;</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;
In July 1997, the Company entered into an employment agreement with Mr. Miller which provides for a base salary as agreed to by the
Company and Mr. Miller from time to time, but which shall in any event be substantially the same as the base salary of the Chief
Executive Officer of the Company unless Mr. Miller agrees to accept a lower salary.&nbsp; Mr. Miller also receives certain
insurance and other benefits as are generally provided by the Company to its executive employees.&nbsp; Mr. Miller's employment
agreement is for an indeterminate term and allows Mr. Miller to pursue other business related interests as long as they do not
interfere with his duties for the Company.&nbsp; Employment may be terminated by either party upon three years written notice or
for &ldquo;cause,&rdquo; as defined in the employment agreement.&nbsp; The agreement also provides for non-competition by Mr.
Miller for a period ending three years from termination of the agreement if the agreement is terminated by breach of Mr.
Miller.</font></p>

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

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The members of the Board of Directors who are employees of the Company do not receive additional compensation for Board or
committee service.&nbsp; Prior to 2003, upon initial election to the Board, each non-employee director was granted an option to
purchase 2,000 shares of Common Stock as of the date of becoming a director.&nbsp; In addition, on the first business day following
each annual meeting of shareholders, each non-employee director would receive an option to purchase a number of shares of the
Company's Common Stock equal to $32,500 divided by the Black-Scholes value (as established by the Company's independent accountant)
of an option to purchase one such share, and up to 400 additional shares based upon the earnings of the Company.&nbsp; Messrs.
Chandler, Drack and Roberts were granted 9,400 options each on May 28, 2002.&nbsp;</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;
In February 2003, the Board approved a new compensation plan beginning in 2003 for non-employee directors that includes a cash and
an equity compensation component.&nbsp; Each non-employee director is entitled to receive an annual payment of $25,000 as
compensation for service on the Board of Directors.&nbsp; The payment to the directors of the cash portion of their compensation
has not occurred for fiscal year 2003.&nbsp; In addition, each director is entitled to awards under the Non-Employee Director Stock
Plan, subject to the approval of the plan by the Company&rsquo;s shareholders.&nbsp; The awards will be paid in shares of Common
Stock equal to $25,000 divided by the closing price of the Common Stock on the first day of the fiscal year.&nbsp; If the
Non-Employee Director Stock Plan is approved by the Company&rsquo;s shareholders, all future equity compensation paid to the
directors will be made in accordance with the plan.&nbsp;</font></p>

<p><b><font size="2" face="Times New Roman">Compensation Committee Interlocks and Insider Participation</font></b></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During 2002, the Compensation Committee was comprised of Messrs. Chandler, Drack and Roberts, all of whom were non-employee
directors.&nbsp;</font></p>

<p align="center"><font face="Times New Roman" size="2">22<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>

<p><b><font size="2" face="Times New Roman">Compensation Committee Report on Executive Compensation</font></b></p>

<p><i><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Overview.</font></i><font size=
"2">&nbsp; The Company&rsquo;s general compensation policies on executive officer compensation are administered by the Compensation
Committee (the &ldquo;Committee&rdquo;) of the Board of Directors; however, the Committee submits its determinations to the full
Board for its comments and concurrence.&nbsp; All members of the Committee are non-employee directors.&nbsp; It is the
responsibility of the Committee to determine whether the executive compensation policies are reasonable and appropriate, meet their
stated objectives and effectively serve the best interests of the Company and its shareholders.</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;
The three components of executive officer compensation are base salary, annual cash bonus awards and stock option grants.&nbsp; In
addition to the Committee&rsquo;s determinations on base salary and bonus award, the Committee administers the Company&rsquo;s 1994
stock option plan (&ldquo;1994 Plan&rdquo;) and recommends to the Board of Directors the options to be granted to executive
officers.&nbsp; In fiscal 2002, none of the Named Executive Officers were granted stock options.</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;
The Company believes that its executive compensation policy should be reviewed annually and should be reviewed in light of the
Company&rsquo;s financial performance, its annual budget, its position within its industry sectors and the compensation policies of
similar companies in its business sectors.&nbsp; The Committee believes that in addition to corporate performance, it is
appropriate to consider in setting and reviewing executive compensation the level of experience and the responsibilities of each
executive as well as the personal contributions a particular individual may make to the success of the corporate enterprise.&nbsp;
Such qualitative factors as leadership skills, analytical skills, organization development, public affairs and civic involvement
are deemed to be important qualitative factors to take into account in considering levels of compensation.&nbsp; No relative weight
is assigned to these qualitative factors, which are applied subjectively by the Committee.</font></p>

<p><i><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Option Grants.</font></i><font
size="2">&nbsp; The Company has historically used grants of options to better align the interests of the Company&rsquo;s officers
and employees with the long-term interests of the Company and its shareholders.&nbsp; All options for the purchase of 500 or more
shares generally vest in four equal annual installments, and all options for the purchase of fewer than 500 shares vest in two
equal annual installments.&nbsp; All options are exercisable until the tenth anniversary of the grant date unless otherwise earlier
terminated pursuant to the terms of the individual option agreement.&nbsp; In general, the Committee believes it is important for
the non-executive officer employees of the Company to have a long-term equity interest in the Company.&nbsp; However, during 2002,
the Company did not grant options to employees and executive officers under the 1994 Plan</font></p>

<p><i><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Salaries.</font></i><font size=
"2">&nbsp; During 2002, the Committee reviewed the salaries of all executive officers and the established levels of participation
of those officers in the Company&rsquo;s Cash Bonus Plan and the 1994 Plan.&nbsp; In its review, the Committee discussed the
performance of the executive officers with the Chief Executive Officer and further considered the compensation packages, employment
agreements (as applicable) and existing stock options (as applicable) of each officer and of the Chief Executive Officer.&nbsp; The
Committee&rsquo;s review of executive officer compensation included consideration of individual performance and contribution to the
Company, a comparison to compensation paid to executive officers in companies of similar size in related industries, the financial
performance of the Company, and other factors the Committee believed were relevant in making its determination.</font></p>

<p><i><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Employment
Agreements</font></i><font size="2">.&nbsp; As a result of an executive compensation study conducted during fiscal 1999 by the
Compensation Committee with the assistance of an independent consulting firm specializing in these matters, the Company began the
incremental process of increasing the compensation of its executive officers by entering into the employment agreements described
under &ldquo;Employment Contracts, Termination of Employment, Severance and Change in Control Arrangements&rdquo;, providing for
the salary increases and the option grants reflected in such agreements.&nbsp; Each of Messrs. Badgley, Miller, Madonia and Mish is
a party to an employment agreement with the Company or a subsidiary of the Company, which is described under &ldquo;Employment
Contracts, Termination of Employment, Severance and Change-in-Control Arrangements.&rdquo;</font></p>

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

<p><i><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Federal Income Tax Deductibility
Limitation on Executive Compensation.</font></i><font size="2">&nbsp; Section 162(m) of the Internal Revenue Code was enacted as
part of the 1993 Omnibus Budget Reconciliation Act (&ldquo;OBRA&rdquo;) and generally disallows a corporate deduction for
compensation over $1,000,000 paid to the Company&rsquo;s Chief Executive Officer or any other of the four highest compensated
officers.&nbsp; The Committee continues to analyze the potential impact of this limitation.&nbsp; Under the regulations and the
transition rules, executive compensation pursuant to the 1994 Plan should be qualifying &ldquo;performance based&rdquo;
compensation and therefore be excluded from the $1,000,000 limit.&nbsp; Other forms of compensation provided by the Company,
however, including base salary and amounts awarded under the Cash Bonus Plan, are not excluded from the limit.&nbsp; The Committee
currently anticipates that substantially all compensation to be paid in future years will be deductible under Section 162(m)
because of the spread between present levels of executive officer compensation and the limit under the regulation.&nbsp; In any
event, the Committee believes that performance based compensation is desirable and can be structured in a manner to constitute
qualifying as performance based compensation under Section 162(m).</font></p>

<p align="center"><font size="2" face="Times New Roman">&nbsp;&nbsp;Paul E. Drack &mdash; A. Russell Chandler, III &mdash; Richard H. Roberts</font></p>

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

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company&rsquo;s Audit Committee is comprised of three independent members, as required by applicable listing standards of the
New York Stock Exchange.&nbsp; The Audit Committee acts pursuant to a written charter adopted and approved by the board of
directors in March 2000.&nbsp; The Company&rsquo;s management is responsible for its internal accounting controls and the financial
reporting process.&nbsp; The Company&rsquo;s independent accountants, PricewaterhouseCoopers LLP, are responsible for performing an
audit of the Company&rsquo;s consolidated financial statements in accordance with auditing standards generally accepted in the
United States and for expressing an opinion as to their conformity with generally accepted accounting principles.&nbsp; The Audit
Committee&rsquo;s responsibility is to monitor and oversee these processes.</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;
In keeping with that responsibility, the Audit Committee has reviewed and discussed the Company&rsquo;s audited consolidated
financial statements with management and the independent accountants.&nbsp; In addition, the Audit Committee has discussed with the
Company&rsquo;s independent accountants the matters required to be discussed by Statement on Auditing Standards No. 61,
&ldquo;Communications with Audit Committee,&rdquo; as currently in effect.&nbsp; In addition, the Audit Committee has received the
written disclosures from the independent accountants required by Independence Standards Board Standard No. 1, &ldquo;Independence
Discussions with Audit Committees,&rdquo; and has discussed with the independent accountants their independence.&nbsp; The Audit
Committee has also considered whether the provision of non-audit services by the independent accountants is compatible with
maintaining such accountants&rsquo; independence.</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;
The members of the Audit Committee are not professionally engaged in the practice of auditing or accounting and are not experts in
the fields of accounting or auditing, including in respect of auditor independence.&nbsp; Members of the Committee rely without
independent verification on the information provided to them and on the representations made by management and the independent
accountants.&nbsp; Accordingly, the Audit Committee&rsquo;s oversight does not provide an independent basis to determine that
management has maintained appropriate accounting and financial reporting principles or appropriate internal control and procedures
designed to assure compliance with accounting standards and applicable laws and regulations.&nbsp; Furthermore, the Audit
Committee&rsquo;s considerations and discussions referred to above do not assure that the audit of the Company&rsquo;s financial
statements has been carried out in accordance with generally accepted auditing standards, that the financial statements are
presented in accordance with generally accepted accounting principles or that the Company&rsquo;s auditors are in fact
&ldquo;independent&rdquo;.</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;
Based on the reports and discussions described in this report, and subject to the limitations on the role and responsibilities of
the Committee referred to above and in the Audit Committee Charter, the Committee recommended to the Board of Directors that the
audited consolidated financial statements of the Company be included in the Annual Report on Form 10-K for the year ended December
31, 2002 for filing with the Securities and&nbsp; Exchange Commission.</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;
This report is respectfully submitted by the Audit Committee of the Board of Directors.</font></p>

<p align="center"><font size="2" face="Times New Roman">Paul E. Drack &mdash; A. Russell Chandler, III &mdash; Richard H. Roberts</font></p>

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

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

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PriceWaterhouseCoopers LLP were the independent public accountants for the Company for the fiscal year ended December 31,
2002.&nbsp; On October 3, 2003, PriceWaterhouseCoopers LLP resigned as the Company&rsquo;s principal accountants.&nbsp; On October
9, 2003 the Company engaged Joseph Decosimo and Company, LLP to be its principal accountants.&nbsp; The decision to engage Joseph
Decosimo and Company, LLP was made upon the recommendation of the Company&rsquo;s Audit Committee and the approval of its the Board
of Directors.&nbsp; During the Company's two most recent fiscal years and the subsequent interim period through October 9, 2003,
the Company has not consulted with Joseph Decosimo and Company, LLP regarding any matter requiring disclosure under Regulation S-K,
Item 304(a)(2)(i) and (ii).</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;
The report of PricewaterhouseCoopers LLP for the year ended December 31, 2002 included an explanatory paragraph.&nbsp; This
explanatory paragraph was included as a result of the Company being in default of certain covenants under its senior and
subordinated credit facility agreements, and because 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 the acceleration of amounts
due as well as other remedies in the event of default.&nbsp; The report of PricewaterhouseCoopers indicated that these
circumstances raise substantial doubt about the Company&rsquo;s ability to continue as a going concern.</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;
The report of PricewaterhouseCoopers LLP for the period ending December 31, 2001 included a separate paragraph regarding the
Company&rsquo;s default under certain credit agreements and related waivers.</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;
Except as described in the two preceding paragraphs, neither of the reports of PricewaterhouseCoopers LLP on the financial
statements of the Company for the past two fiscal years contained an adverse opinion or disclaimer of opinion, nor was either
qualified or modified as to uncertainty, audit scope, or accounting principle.</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;
In connection with its audits for the two most recent fiscal years of the Company and through October 3, 2003, there were no
disagreements with PricewaterhouseCoopers LLP on any matter of accounting principles or practices, financial statement disclosure,
or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of PricewaterhouseCoopers LLP, would have
caused them to make reference to the subject matter of the disagreements in their reports on the financial statements for such
fiscal years.</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;
Representatives of Joseph Decosimo and Company, LLP and PricewaterhouseCoopers LLP are expected to be present at the Annual
Meeting, and will have the opportunity to make a statement if they desire to do so, and to respond to appropriate
questions.</font></p>

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

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PricewaterhouseCoopers LLP billed the Company aggregate fees of $515,601 for professional services rendered for the audit of
financial statements during fiscal 2002, including the re-audit of the financial statements for the fiscal years ended 2001 and
2000, and the reviews of financial statements included in Forms 10-Q filed during fiscal 2002.&nbsp; PricewaterhouseCoopers LLP and
Arthur Andersen LLP billed the Company aggregate fees of $237,475 for professional services rendered for the audit of financial
statements for the eight months ended December 31, 2001 (the &ldquo;Transition Period&rdquo;), and reviews of financial statements
included in the Forms 10-Q filed during the Transition Period.</font></p>

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

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
PricewaterhouseCoopers LLP billed the Company fees of $97,405 for additional services provided to the Company during fiscal
2002.&nbsp; The Company did not engage PricewaterhouseCoopers LLP or Arthur Andersen LLP to provide additional services during the
Transition Period.&nbsp; The Company did not engage PricewaterhouseCoopers LLP or Arthur Andersen LLP during fiscal 2002 or the
Transition Period for management information system services.</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;
The Audit Committee has considered whether the provision of other services by PricewaterhouseCoopers LLP is compatible with
maintaining the independence of PricewaterhouseCoopers LLP.</font></p>

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

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

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following line graph compares the percentage change in the cumulative shareholder return of the Common Stock with The New York
Stock Exchange Composite Index and the Standard &amp; Poor&rsquo;s Composite Index over the period of time from April 30, 1997
through December 31, 2003.&nbsp; The respective returns assume reinvestment of dividends paid.</font></p>

<p align="center">
<img border="0" src="performancegraph.gif" width="624" height="410"></p>

<table border="0" cellspacing="0" cellpadding="0" width="672">
<tr>
<td valign="top"></td>
<td valign="top" align="center">
<p><u><font size="2" face="Times New Roman">4/30/97</font></u></p>
</td>
<td valign="top" align="center">
<p><u><font size="2" face="Times New Roman">4/30/98</font></u></p>
</td>
<td valign="top" align="center">
<p><u><font size="2" face="Times New Roman">4/30/99</font></u></p>
</td>
<td valign="top" align="center">
<p><u><font size="2" face="Times New Roman">4/28/00</font></u></p>
</td>
<td valign="top" align="center">
<p><u><font size="2" face="Times New Roman">4/30/01</font></u></p>
</td>
<td valign="top" align="center">
<p><u><font size="2" face="Times New Roman">12/31/01</font></u></p>
</td>
<td valign="top" align="center">
<p><u><font size="2" face="Times New Roman">12/31/02</font></u></p>
</td>
<td valign="top" align="center">
<p><u><font size="2" face="Times New Roman">12/31/03</font></u></p>
</td>
</tr>

<tr>
<td valign="bottom">
<p><font size="2" face="Times New Roman">Miller Industries, Inc.</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">100</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">66</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">43</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">29</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">6</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">5</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">5</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">7</font></p>
</td>
</tr>

<tr>
<td valign="bottom">
<p><font size="2" face="Times New Roman">NYSE Composite Index</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">100</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">138</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">152</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">154</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">152</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">141</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">113</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">147</font></p>
</td>
</tr>

<tr>
<td valign="bottom">
<p><font size="2" face="Times New Roman">S&amp;P Construction Index</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">100</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">156</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">178</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">136</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">129</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">166</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">140</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">238</font></p>
</td>
</tr>
</table>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
For the year ended December 31, 2002, Standard &amp; Poors transferred the Heavy Duty Trucks and Parts index, the index previously
used by the Company, to the S&amp;P 500 &ndash; Construction and Farm Machinery and Heavy Trucks Index.&nbsp; As a result, the
Company has elected to use the S&amp;P 500 &ndash; Construction and Farm Machinery and Heavy Trucks index in the above
comparison.</font></p>

<p align="center"><b><font size="2" face="Times New Roman">COMPLIANCE WITH SECTION 16(a) OF THE<br />
SECURITIES EXCHANGE ACT OF 1934</font></b></p>

<p align="left"><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 16(a) of the
Securities Exchange Act of 1934 and the disclosure requirements of Item 405 of Regulation S-K require the directors and executive
officers of the Company, and any persons holding more than 10% of any class of equity securities of the Company, to report their
ownership of such equity securities and any subsequent changes in that ownership to the Securities and Exchange Commission, The New
York Stock Exchange and the Company.&nbsp; Based solely on a review of the written statements and copies of such reports furnished
to the Company by its executive officers and directors, the Company believes that during fiscal 2002 all Section 16(a) filing
requirements applicable to its executive officers, directors and shareholders were complied with, and the Company is not aware of
any filing delinquencies.&nbsp;</font></p>

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

<p align="center"><b><font size="2" face="Times New Roman">DEADLINES FOR SUBMISSION BY SHAREHOLDERS OF PROPOSALS<br />
 TO BE PRESENTED AT THE 2004 ANNUAL MEETING OF SHAREHOLDERS</font></b></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Any proposal intended to be presented for action at the 2004 Annual Meeting of Shareholders by any shareholder of the Company must
be received by the Secretary of the Company not later than August 4, 2004 in order for such proposal to be considered for inclusion
in the Company&rsquo;s Proxy Statement and proxy relating to its 2004 Annual Meeting of Shareholders.&nbsp; In the event that a
proposal intended to be presented for action at the 2004 Annual Meeting of Shareholders by any shareholder of the Company is not
received by the Secretary of the Company on or before October 17, 2004, then the management proxies would be allowed to use their
discretionary voting authority if the proposal is raised at the annual meeting, whether or not the matter is discussed in the Proxy
Statement.&nbsp; Nothing in this paragraph shall be deemed to require the Company to include any shareholder proposal which does
not meet all the requirements for such inclusion established by the Securities and Exchange Commission at the time in
effect.</font></p>

<p align="center"><b><font size="2" face="Times New Roman">METHOD OF COUNTING VOTES</font></b></p>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Unless a contrary choice is indicated, all duly executed proxies will be voted in accordance with the instructions set forth on the
back side of the proxy card.&nbsp; Abstentions and &ldquo;non-votes&rdquo; will be counted for the purposes of determining a
quorum.&nbsp; Abstentions and non-votes are treated as votes against the proposals presented to the shareholders other than the
election of directors.&nbsp; Because directors are elected by a plurality of the votes cast, abstentions are not considered in the
election.&nbsp; A &ldquo;non-vote&rdquo; occurs when a nominee holding shares for a beneficial owner votes on one proposal, but
does not vote on another proposal because the nominee does not have discretionary voting power and has not received instructions
from the beneficial owner.</font></p>

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

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
It is important that proxies be returned promptly to avoid unnecessary expense.&nbsp; Therefore, shareholders who do not expect to
attend in person are urged, regardless of the number of shares of stock owned, to date, sign and return the enclosed proxies
promptly.</font></p>

<p><b><font size="2" face="Times New Roman">A COPY OF THE COMPANY&rsquo;S ANNUAL REPORT ON FORM 10-K FOR THE FISCAL YEAR ENDED
DECEMBER 31, 2002 HAS PREVIOUSLY BEEN MAILED TO SHAREHOLDERS.&nbsp; COPIES OF EXHIBITS FILED WITH THE FORM 10-K AND OTHER REPORTS
OF THE COMPANY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ARE AVAILABLE UPON WRITTEN REQUEST AT NO COST TO THE REQUESTING
SHAREHOLDER.&nbsp; REQUESTS SHOULD BE MADE IN WRITING TO FRANK MADONIA, EXECUTIVE VICE PRESIDENT, SECRETARY AND GENERAL COUNSEL,
MILLER INDUSTRIES, INC., 8503 HILLTOP DRIVE, OOLTEWAH, TENNESSEE&nbsp; 37363.</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 align="center"><font face="Times New Roman" size="2">27<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>

<p align="center">&nbsp; <b><font size="2" face="Times New Roman">MILLER INDUSTRIES, INC<i>.</i></font></b></p>

<p align="center"><b><font size="2" face="Times New Roman">This Proxy is Solicited by the Board of Directors for the Annual Meeting
of<br />
Shareholders to be Held on _______, _______ __, 2004</font></b></p>

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

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned shareholder of Miller
Industries, Inc. hereby constitutes and appoints William G. Miller and Frank Madonia, or either of them, the true and lawful
attorneys and proxies of the undersigned with full power of substitution and appointment, for and in the name, place and stead of
the undersigned, to vote all of the undersigned's shares of Common Stock of Miller Industries, Inc., at the Annual Meeting of the
Shareholders to be held at 1100 Peachtree Street, Suite 2800, Atlanta, Georgia 30309, on ________, the ____ day of _________, 2004,
at 9:00 a.m., and at any and all adjournments thereof as follows:</font></p>

<p>&nbsp;</p>

<table border="0" cellspacing="0" cellpadding="0" width="677">
<tr>
<td valign="top" width="40">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="54">
<p align="center"><font size="2" face="Times New Roman">(1)</font></p>
</td>
<td valign="top" width="58">
<p align="center"><font size="2">&nbsp;</font><font face="Wingdings" size="2">&#168;</font></p>
</td>
<td valign="top" width="525">
<p><font size="2" face="Times New Roman"><b>FOR</b></font><font size="2"> all of the following nominees for director (except
as marked to the contrary below):</font></p>
</td>
</tr>

<tr>
<td valign="top" width="40">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="54">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="58">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="525">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="40">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="54">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="58">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="525">
<p><font size="2" face="Times New Roman">NOMINEES:&nbsp; Jeffrey I. Badgley, A. Russell Chandler, III,</font> <font size="2">Paul
E. Drack, William G. Miller and Richard H. Roberts.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="40">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="54">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="58">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="525">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="40">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="54">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="58">
<p align="center"><font face="Wingdings" size="2">&#168;</font></p>
</td>
<td valign="top" width="525">
<p><b><font size="2" face="Times New Roman">WITHHOLD AUTHORITY </font></b><font size="2">to vote for all nominees listed.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="40">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="54">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="58">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="525">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="40">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="54">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="58">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="525">
<p><font size="2" face="Times New Roman">(Instruction:&nbsp; To withhold authority to vote for any individual nominee, write that
nominee's name in the space provided below.)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="40">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="54">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="58">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="525">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>
</table>

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

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

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

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

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

<p><b><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; THE BOARD OF DIRECTORS FAVORS A VOTE "FOR"
EACH OF THE NOMINEES LISTED ABOVE AND UNLESS INSTRUCTIONS TO THE CONTRARY ARE INDICATED IN THE SPACE PROVIDED, THE PROXY WILL BE SO
VOTED.</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="677">
<tr>
<td valign="top" width="40">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="54">
<p><font size="2" face="Times New Roman">(2)</font></p>
</td>
<td colspan="6" valign="top" width="583">
<p><font size="2" face="Times New Roman">Proposal to adopt the Non-Employee Director
Stock Plan.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="40">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="54">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="97">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="97">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="97">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="97">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="97">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="98">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="40">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="54">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="97">
<p align="center"><font face="Wingdings" size="2">&#168;</font></p>
</td>
<td valign="top" width="97">
<p align="left"><b><font size="2" face="Times New Roman">FOR</font></b></p>
</td>
<td valign="top" width="97">
<p align="center"><font face="Wingdings" size="2">&#168;</font></p>
</td>
<td valign="top" width="97">
<p align="left"><b><font size="2" face="Times New Roman">AGAINST</font></b></p>
</td>
<td valign="top" width="97">
<p align="center"><font face="Wingdings" size="2">&#168;</font></p>
</td>
<td valign="top" width="98">
<p align="left"><b><font size="2" face="Times New Roman">ABSTAIN</font></b></p>
</td>
</tr>

<tr>
<td valign="top" width="40">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="54">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="97">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="97">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="97">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="97">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="97">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="98">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="40">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="54">
<p><font size="2" face="Times New Roman">(3)</font></p>
</td>
<td colspan="6" width="583">
<p><font size="2" face="Times New Roman">Exchange Proposal to issues shares of Common Stock for subordinated debt and
warrants.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="40">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="54">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="97">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="97">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="97">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="97">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="97">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="98">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="40">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="54">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="97">
<p align="center"><font face="Wingdings" size="2">&#168;</font></p>
</td>
<td valign="top" width="97">
<p align="left"><b><font size="2" face="Times New Roman">FOR</font></b></p>
</td>
<td valign="top" width="97">
<p align="center"><font face="Wingdings" size="2">&#168;</font></p>
</td>
<td valign="top" width="97">
<p align="left"><b><font size="2" face="Times New Roman">AGAINST</font></b></p>
</td>
<td valign="top" width="97">
<p align="center"><font face="Wingdings" size="2">&#168;</font></p>
</td>
<td valign="top" width="98">
<p align="left"><b><font size="2" face="Times New Roman">ABSTAIN</font></b></p>
</td>
</tr>

<tr>
<td valign="top" width="40">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="54">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="97">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="97">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="97">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="97">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="97">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="98">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="40">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="54">
<p><font size="2" face="Times New Roman">(4)</font></p>
</td>
<td colspan="6" valign="top" width="583">
<p><font size="2" face="Times New Roman">For the transaction of such other business as may lawfully come before the meeting, hereby
revoking any proxies as to said shares heretofore given by the undersigned and ratifying and confirming all that said attorneys and
proxies may lawfully do by virtue hereof.</font></p>
</td>
</tr>

<tr>
<td valign="top" width="40">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="54">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="97">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="97">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="97">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="97">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="97">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="98">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>
</table>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; It is understood that this proxy confers
discretionary authority in respect to matters not known or determined at the time of the mailing of the notice of the meeting to
the undersigned.</font></p>

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

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

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The undersigned hereby acknowledges receipt of
the Notice of Annual Meeting of Shareholders dated _______ ___, 200__ and the Proxy Statement furnished therewith.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="690">
<tr>
<td valign="top" width="354"></td>
<td valign="top" width="336">
<p><font size="2" face="Times New Roman">Dated and signed ____ ____________________, 200__</font></p>

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

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

<p><font size="2" face="Times New Roman">(Signature should agree with the name(s) hereon.&nbsp; Executors, administrators,
trustees, guardians and attorneys should so indicate when signing.&nbsp; For joint accounts each owner should sign.&nbsp;
Corporations should sign their full corporate name by a duly authorized officer.)</font></p>
</td>
</tr>
</table>

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

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This proxy is revocable at or at any time prior
to the meeting.&nbsp; Please sign and return this proxy to SunTrust Bank, Atlanta, P.O. Box 105649, Atlanta, Georgia 30348-9923, in
the accompanying prepaid envelope.</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><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>
<font face="Times New Roman" size="2"><hr size="1" color="#000080" STYLE="page-break-after: always">
</font>

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

<p align="center"><b><font size="2" face="Times New Roman">THE MILLER INDUSTRIES, INC.<br />
NON-EMPLOYEE DIRECTOR STOCK PLAN<br />
(Effective as of February&nbsp;18, 2003)</font></b></p>

<h1><b><font size="2" face="Times New Roman">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purposes</font></b></h1>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The principal purposes of the
Miller Industries, Inc. Non-Employee Director Stock Plan (the &ldquo;Plan&rdquo;) are to provide compensation to those members of
the Board of Directors of Miller Industries, Inc. (the &ldquo;Company&rdquo;) who are not also employees of the Company, assist the
Company in attracting and retaining outside directors with experience and ability on a basis competitive with industry practices,
and associate more fully the interests of such directors with those of the Company&rsquo;s shareholders.</font></p>

<h1><b><font size="2" face="Times New Roman">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Effective Date</font></b></h1>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Plan was unanimously approved
by the Board of Directors of the Company and became effective on February&nbsp;18, 2003 (the &ldquo;Effective Date&rdquo;),
conditioned upon shareholder approval.</font></p>

<h1><b><font size="2" face="Times New Roman">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Administration</font></b></h1>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Plan shall be administered and
interpreted by the Board of Directors of the Company (the &ldquo;Board&rdquo;).&nbsp; The Board shall have full power and authority
to administer and interpret the Plan and to adopt such rules, regulations, guidelines and instruments for the administration of the
Plan and for the conduct of its business as the Board deems necessary or advisable.&nbsp; The Board's interpretations of the Plan,
and all actions taken and determinations made by the Board pursuant to the authority given its members hereunder, shall be
conclusive and binding on all parties concerned, including the Company, its directors and shareholders and any employee of the
Company.&nbsp; The costs and expenses of administering the Plan shall be borne by the Company and not charged against any award or
to any award recipient.</font></p>

<h1><b><font size="2" face="Times New Roman">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Eligibility</font></b></h1>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Directors of the Company who are
not employees of the Company (&ldquo;Non-Employee Directors&rdquo;) are eligible to receive awards under the Plan.&nbsp; Directors
of the Company who are employees of the Company are not eligible to participate in the Plan, but shall be eligible to participate
in other benefit and compensation plans of the Company.</font></p>

<h1><b><font size="2" face="Times New Roman">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Initial Award for 2003</font></b></h1>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On the date this Plan is approved
by the Company&rsquo;s shareholders (&ldquo;Initial Award Date&rdquo;), each Non-Employee Director shall be granted an initial
award of Company Common Stock equal to the number of shares determined by dividing $25,000 by the closing price of a share of the
Company&rsquo;s Common Stock on the Effective Date.&nbsp; The number of shares so determined shall be rounded to the nearest number
of whole shares.&nbsp;</font></p>

<h1><b><font size="2" face="Times New Roman">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Annual Award</font></b></h1>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beginning in 2004 and continuing
until this Plan is terminated, each Non-Employee Director serving as such on January&nbsp;1 of a year shall be granted an award of
a number of shares Company Common Stock determined by dividing $25,000 by the closing price of a share of the Company&rsquo;s
Common Stock on the first day of such calendar year that the Common Stock is traded.&nbsp; The number of shares awarded for any
calendar year shall be rounded to the nearest number of whole shares.&nbsp; The Non-Employee Directors shall have all of the rights
of a shareholder with respect to such Common Stock.&nbsp; Notwithstanding the foregoing, if, for any year, the stock price is below
$1.00 per share, the Board of Directors, in its discretion, may decide to pay each Non-Employee Director a cash payment equal to
$25,000 in lieu of the stock award for such year.</font></p>

<p align="center"><font size="2">A-1</font></p>

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

<h1><b><font size="2" face="Times New Roman">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Shares of Stock Subject to the Plan</font></b></h1>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The shares granted under the Plan
may be newly issued shares of the Company&rsquo;s Common Stock or shares held as treasury shares, including shares purchased by the
Company, whether on the market or otherwise, or a combination of each.</font></p>

<h1><b><font size="2" face="Times New Roman">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dilution and Other Adjustments</font></b></h1>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The number and kind of shares of
Company Common Stock issuable under the Plan may be adjusted proportionately by the Board to reflect stock dividends, stock splits,
recapitalizations, mergers, consolidations, combinations or exchanges of shares, any spin-off or other distribution of assets of
the Company to its shareholders, any partial or complete liquidation, or other similar corporate changes.&nbsp; Such adjustment
shall be conclusive and binding for all purposes of the Plan.</font></p>

<h1><b><font size="2" face="Times New Roman">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Withholding Taxes</font></b></h1>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company shall have the right to
require the payment (through withholding from any amount payable from the Company to the Non-Employee Director or otherwise) of any
withholding taxes required by federal, state, local or foreign law in respect of any award.</font></p>

<h1><b><font size="2" face="Times New Roman">10.&nbsp;&nbsp;&nbsp; Resale Restrictions, Assignment and Transfer</font></b></h1>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Once awarded, the shares of the
Company&rsquo;s Common Stock received by Non-Employee Directors may be freely transferred, assigned, pledged or otherwise subjected
to lien, subject to restrictions imposed by the Securities Act of 1933, as amended, and subject to the trading restrictions imposed
by Section 16 of the Securities Exchange Act of 1934, as amended.</font></p>

<h1><b><font size="2" face="Times New Roman">11.&nbsp;&nbsp;&nbsp; Funding</font></b></h1>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Plan shall be unfunded.&nbsp;
The Company shall not be required to establish any special or separate fund or to make any other segregation of assets to assure
the payment of any award under the Plan.</font></p>

<h1><b><font size="2" face="Times New Roman">12.&nbsp;&nbsp;&nbsp; Prior Directors&rsquo; Stock Plan Superseded</font></b></h1>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Upon this Plan&rsquo;s approval by
the shareholders of the Company, this Plan shall supersede the Miller Industries, Inc. Non-Employee Director Stock Option Plan (the
&ldquo;Prior Plan&rdquo;).&nbsp; Thereafter, no further awards shall be made under the Prior Plan, but any awards previously
granted shall remain outstanding subject to the terms and conditions of such Prior Plan.</font></p>

<h1><b><font size="2" face="Times New Roman">13.&nbsp;&nbsp;&nbsp; Duration, Amendments and Terminations</font></b></h1>

<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Plan shall terminate on the day
prior to the 10<sup>th</sup> anniversary of the Effective Date and no further stock awards will be made under the Plan after such
date.&nbsp; The Board of Directors may sooner terminate the Plan or amend the Plan in whole or in part at any time and from time to
time; <u>provided</u>, <u>however</u>, that to the extent required by the rules of the exchange on which the Company&rsquo;s shares
of Common Stock are listed or applicable law, no amendment shall be effective unless approved by the shareholders of the Company at
an annual or special meeting.</font></p>

<p align="center"><font size="2">A-2</font></p>

<font face="Times New Roman" size="2"><hr size="1" color="#000080" STYLE="page-break-after: always">
<h2 align="center"><b>ANNEX B</b></h2>

<div style="border-bottom-style: solid; border-bottom-width: 1; padding-bottom: 1">
<h2 align="right"><b><font size="5" face="Arial">Morgan Keegan</font></b></h2>
</div>

<p><b><font size="1" face="Arial">Morgan Keegan &amp; Company, Inc.<br>
Morgan Keegan Tower<br>
Fifty Front Street<br>
Memphis, Tennessee&nbsp; 38103<br>
901/524-4100&nbsp; WATS 800/366-7426<br>
Members New York Stock Exchange, Inc</font><font size="1">.</font></b></p>

<p><font size="3" face="Times New Roman">November 20, 2003</font></p>

<p><font size="3" face="Times New Roman">Special Committee of the Board of Directors of Miller Industries, Inc.<br>
c/o Nelson, Mullins, Riley &amp; Scarborough<br>
999 Peachtree Street, N.E.<br>
Suite 1400<br>
Atlanta, GA 30309</font></p>

<p><font size="3" face="Times New Roman">Members of the Special Committee:</font></p>

<p><font size="3" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; We understand that Miller Industries, Inc. ("Miller" or the
&ldquo;Company&rdquo;), on one hand, and Contrarian Funds, LLC (&ldquo;Contrarian&rdquo;) and Harbourside Investments, LLLP
(&ldquo;Harbourside&rdquo;), on the other hand, propose to enter into an Exchange Agreement, substantially in the form of the draft
dated November 17, 2003 (the "Agreement"), which provides, among other things, that the Company will (i) issue between
approximately 900,000 to 1,260,000 shares of the Company&rsquo;s common stock, depending on Miller&rsquo;s average common share
price during the fourth quarter of 2003, subject to a minimum price of $5.00 per share and a maximum price of $7.00 per share (the
&ldquo;Exchange Ratio&rdquo;), to retire approximately $6.3 million of subordinated debt and accrued interest, and (ii) cancel and
convert 186,029 warrants with an weighted average exercise price of $3.32 into between 62,374 to 136,785 shares of the
Company&rsquo;s common stock, subject to the Exchange Ratio (collectively the &ldquo;Transaction&rdquo;). The terms and conditions
of the Transaction are more fully set forth in the Agreement.&nbsp; Capitalized terms not defined herein shall have the meaning set
forth in the Agreement.</font></p>

<p><font size="3" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; You have asked for our opinion as to whether the issuance
of the Miller Common Stock, pursuant to the Agreement, is fair from a financial point of view to the shareholders of Miller other
than the Insiders.&nbsp; We have not been requested to opine as to, and our opinion does not in any manner address, Miller&rsquo;s
underlying business decision to proceed with or effect the Transaction.</font></p>

<p><font size="3" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For purposes of the opinion set forth herein, we
have:</font></p>

</font>

<font face="Times New Roman">

<blockquote>
  <ol type="i" style="font-size: 12pt">
    <li>reviewed the draft of the Agreement by and among Miller, Contrarian and&nbsp;
Harbourside;<br>
&nbsp;</li>
    <li>reviewed certain publicly available business and financial information relating to
Miller;</li>
  </ol>
</blockquote>
</font>

<font face="Times New Roman" size="2">
<hr size="1" color="#000080" STYLE="page-break-after: always">
<p>Special Committee of the Board of
Directors of Miller Industries, Inc.<br>
November 20, 2003<br>
Page 2 of 3</p>
</font>

<font face="Times New Roman">
<blockquote>
  <ol type="i" start="3" style="font-size: 12pt">
    <li>reviewed certain other information provided to us by Miller and discussed the business prospects of
Miller with its management;<br>
&nbsp;</li>
    <li>reviewed the reported historical prices and historical trading activity for Miller&rsquo;s common
stock for the period from January 1, 2000 to November 10, 2003;<br>
&nbsp;</li>
    <li>compared and considered the financial performance of Miller and the prices and trading activity of
Miller&rsquo;s common stock with that of certain other publicly-traded companies and their securities;<br>
&nbsp;</li>
    <li>reviewed the financial terms, to the extent publicly available, of certain other business
combinations and other transactions that we deemed relevant;<br>
&nbsp;</li>
    <li>performed a discounted cash flow analysis (&ldquo;DCF&rdquo;) on the projected cash flows of Miller
for years ended December 31, 2004 through December 31, 2008 using a range of discount rates and terminal value multiples based on
estimated EBITDA for the year ending December 31, 2008;<br>
&nbsp;</li>
    <li>analyzed the discount received for certain transactions whereby investors&nbsp; acquired privately
issued, unregistered common stock from an publicly-held issuer; and<br>
&nbsp;</li>
    <li>performed such other analyses and considered such other factors as we deemed
appropriate.</li>
  </ol>
</blockquote>

</font>

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

<p><font size="3" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; We have assumed and relied upon, without independent
verification, the accuracy and completeness of the information reviewed by us for the purposes of this opinion and have not assumed
any obligation to independently verify such information. &nbsp; We have assumed that the internal financial statements and other
financial and operating data have been reasonably prepared on bases reflecting the best currently available estimates and judgments
of the management of Miller.&nbsp; We have also assumed that there have been no material changes in Miller&rsquo;s assets,
financial condition, results of operations, business or prospects since the respective dates of the last financial statements made
available to us. We have not made any independent valuation, inspection or appraisal of the assets or liabilities of Miller, nor
have we been furnished with any such appraisals or valuations.&nbsp; In addition, you have informed us, and we have assumed, that
the Transaction will be accounted for in accordance with U.S. generally accepted accounting principles and will be consummated in
accordance with the terms set forth in the draft of the Agreement that we have reviewed and the applicable provisions of the
Securities Act of 1933, as amended (the &ldquo;Securities Act&rdquo;), the Securities Exchange Act of 1934, as amended, and all
other applicable federal, state and local statutes, rules, regulations and ordinances.&nbsp; Our opinion is necessarily based on
financial, economic, market and other conditions as in effect on, and the information made available to us as of, the date
hereof.<font color="black">&nbsp; In addition, we are not expressing any opinion as to the actual value of Miller Common Stock or
the prices at which the Miller Common Stock will trade following the date of this opinion.</font></font></p>

<hr size="1" color="#000080" STYLE="page-break-after: always">

<p>Special Committee of the Board of
Directors of Miller Industries, Inc.<br>
November 20, 2003<br>
Page 3 of 3</p>

<p>&nbsp;</p>

<p><font size="3" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company will pay Morgan Keegan a fee in connection with
this Opinion.&nbsp; In addition, the Company has agreed to engage Morgan Keegan for investment banking services related to certain
other transactions that might occur before or on December 31, 2004.</font></p>


<p><font size="3" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font color="black">Miller has agreed to indemnify us for
certain liabilities that may arise out of rendering this opinion.&nbsp;</font> In the past, Morgan Keegan &amp; Company, Inc. has
provided financial advisory and financing services for Miller and has received fees for rendering these services.<font color=
"black">&nbsp; In the ordinary course of our business, we may actively trade in the equity securities of Miller for our own account
and the accounts of our customers and, accordingly, may at any time hold a significant long or short position in such
securities.</font></font></p>

<p><font size="3" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Our opinion is directed to the Special Committee of the
Board of Directors of Miller in connection with its consideration and approval of the Transaction.&nbsp; Our opinion is not advice
or a recommendation to the Board of Directors of Miller that it pursue the Transaction or any similar transaction.&nbsp; Our
opinion addresses only the fairness from a financial point of view to the shareholders of Miller, other than the Insiders, of the
Transaction and does not address the underlying business decision of Miller to pursue the Transaction, the relative merits of the
Transaction as compared to any alternative course of action by Miller or the effect of any other transaction or course of action
that Miller might pursue.&nbsp; This opinion is addressed solely to the Special Committee of the Board of Directors of Miller and
may not be reproduced, quoted or otherwise referred to in any other document and may not be relied upon by any other person without
our advance written consent.&nbsp; In furnishing this opinion, we do not admit that we are experts within the meaning of the term
&ldquo;experts&rdquo; as used in the Securities Act and the rules and regulations thereunder, nor do we admit that this opinion
constitutes a report or valuation within the meaning of Section 11 of the Securities Act.</font></p>

<p><font size="3" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Based upon and subject to the foregoing, and in reliance
thereon, we are of the opinion on the date hereof that the issuance of the Miller Common Stock, pursuant to the Agreement, is fair
from a financial point of view to the shareholders of Miller, other than the Insiders.</font></p>

<p><font size="3" face="Times New Roman">Very truly yours,</font></p>

<p><img border="0" src="morgankeegan2.gif" width="411" height="90"></p>
<p align="left">&nbsp;</p>
<hr size="1" color="#000080" STYLE="page-break-after: always">
<p align="center">&nbsp;</p>
</font>

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

<p align="center">
<img border="0" src="millerlogo.jpg" width="213" height="45"><p align="center">
<font color="#0000ff"><b>INDEX TO FINANCIAL STATEMENTS</b></font></p><p align="center">
&nbsp;<p align="left">
&nbsp;<div align="center">
  <center>
  <table border="0" cellpadding="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
    <tr>
      <td bgcolor="#FFF3CE" colspan="2"><p align="left">
<b><font size="2">[The following audited financial statements and related notes
are excerpted from the Company's Annual Report on Form 10-K for fiscal year
ended December 31, 2002]</font></b></td>
      </tr>
    <tr>
      <td bgcolor="#FFF3CE"><font size="2"><b>&nbsp;</b></font></td>
      <td valign="bottom" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
      </tr>
    <tr>
      <td bgcolor="#FFF3CE"><b><font size="2">Audited Financial Statements</font></b></td>
      <td valign="bottom" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
      </tr>
    <tr>
      <td bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
      <td valign="bottom" bgcolor="#FFFFFF"><font size="2">&nbsp;</font></td>
      </tr>
    <tr>
      <td bgcolor="#FFF3CE"><font size="2">Report of Independent Accountants</font></td>
      <td valign="bottom" bgcolor="#FFF3CE"><font size="2">C-2</font></td>
      </tr>
      <tr>
        <td><font size="2">&nbsp;</font></td>
        <td valign="bottom"><font size="2">&nbsp;</font></td>
      </tr>
      <tr>
        <td bgcolor="#FFF3CE"><font size="2">Consolidated Balance Sheets
        December 31, 2002 and 2001, and April&nbsp;30,
        2001</font></td>
        <td valign="bottom" bgcolor="#FFF3CE"><font size="2">C-3</font></td>
        </tr>
        <tr>
          <td><font size="2">&nbsp;</font></td>
          <td valign="bottom"><font size="2">&nbsp;</font></td>
        </tr>
        <tr>
          <td bgcolor="#FFF3CE"><font size="2">Consolidated Statements of&nbsp; Operations
          for the Year Ended
          December 31, 2002,&nbsp; Eight Months Ended<br>
          December 31, 2001 and Years
          Ended April 30, 2001 and
2000</font></td>
          <td valign="bottom" bgcolor="#FFF3CE"><font size="2">C-4</font></td>
          </tr>
          <tr>
            <td><font size="2">&nbsp;</font></td>
            <td valign="bottom"><font size="2">&nbsp;</font></td>
          </tr>
          <tr>
            <td bgcolor="#FFF3CE"><font size="2">Consolidated Statements of
            Shareholders&#8217; Equity for the year
            Ended
December 31, 2002, Eight Months Ended<br>
            December 31, 2001 and
            Years Ended April
30, 2001 and 2000</font></td>
            <td valign="bottom" bgcolor="#FFF3CE"><font size="2">C-5</font></td>
            </tr>
            <tr>
              <td><font size="2">&nbsp;</font></td>
              <td valign="bottom"><font size="2">&nbsp;</font></td>
            </tr>
            <tr>
              <td bgcolor="#FFF3CE"><font size="2">Consolidated Statements of Cash
              Flows for the Year Ended
              December 31, 2002,
Eight Months<br>
              Ended December 31, 2001 and
              Years Ended April 30, 2001 and
2002</font></td>
              <td valign="bottom" bgcolor="#FFF3CE"><font size="2">C-6</font></td>
              </tr>
              <tr>
                <td><font size="2">&nbsp;</font></td>
                <td valign="bottom"><font size="2">&nbsp;</font></td>
              </tr>
              <tr>
                <td bgcolor="#FFF3CE"><font size="2">Notes to Consolidated Financial&nbsp; Statements  December 31,
2002</font></td>
                <td valign="bottom" bgcolor="#FFF3CE"><font size="2">C-7</font></td>
                </tr>
                <tr>
                  <td><font size="2">&nbsp;</font></td>
                  <td valign="bottom"><font size="2">&nbsp;</font></td>
                </tr>
                <tr>
                  <td colspan="2"><font size="2">&nbsp;</font><b><font size="2" face="Times New Roman">[The
                  following unaudited financial statements and&nbsp; related
                  notes are a modified version of the unaudited financial
                  statements and&nbsp; related notes that appeared in the
                  Company&#146;s Quarterly Report on Form 10-Q for&nbsp; quarter
                  ended September 30, 2003.&nbsp;&nbsp; All modifications appear&nbsp;in
                  bolded, italicized and bracketed  text.]</font></b></td>
                </tr>
    <tr>
                  <td><font size="2">&nbsp;</font></td>
                  <td valign="bottom"><font size="2">&nbsp;</font></td>
                </tr>
    <tr>
                  <td bgcolor="#FFF3CE"><b><font size="2">Unaudited Financial
                  Statements</font></b></td>
                  <td valign="bottom" bgcolor="#FFF3CE"><font size="2">&nbsp;</font></td>
                </tr>
    <tr>
                  <td><font size="2">&nbsp;</font></td>
                  <td valign="bottom"><font size="2">&nbsp;</font></td>
                </tr>
    <tr>
                  <td bgcolor="#FFF3CE"><font size="2">Unaudited Condensed
                  Consolidated Balance Sheets - September 30, 2003 and December
                  31, 2002</font></td>
                  <td valign="bottom" bgcolor="#FFF3CE"><font size="2">C-30</font></td>
                </tr>
    <tr>
                  <td><font size="2">&nbsp;</font></td>
                  <td valign="bottom"><font size="2">&nbsp;</font></td>
                </tr>
    <tr>
                  <td bgcolor="#FFF3CE"><font size="2">Unaudited Condensed
                  Consolidated Statements of Operations for the Three and Nine
                  Months Ended<br>
                  September 30, 2003 and 2003</font></td>
                  <td valign="bottom" bgcolor="#FFF3CE"><font size="2">C-31</font></td>
                </tr>
    <tr>
                  <td><font size="2">&nbsp;</font></td>
                  <td valign="bottom"><font size="2">&nbsp;</font></td>
                </tr>
    <tr>
                  <td bgcolor="#FFF3CE"><font size="2">Unaudited Condensed
                  Consolidated Statements of Cash Flows for the Nine Months
                  Ended September 30,<br>
                  2003 and 2003</font></td>
                  <td valign="bottom" bgcolor="#FFF3CE"><font size="2">C-32</font></td>
                </tr>
    <tr>
                  <td><font size="2">&nbsp;</font></td>
                  <td valign="bottom"><font size="2">&nbsp;</font></td>
                </tr>
    <tr>
                  <td bgcolor="#FFF3CE"><font size="2">Notes to the Unaudited
                  Condensed Consolidated Financial Statements</font></td>
                  <td valign="bottom" bgcolor="#FFF3CE"><font size="2">C-33</font></td>
                </tr>
                <tr>
                  <td><font size="2">&nbsp;</font></td>
                  <td valign="bottom"><font size="2">&nbsp;</font></td>
                </tr>
                </table>
                </center>
              </div>
              <p align="center">
<font face="Times New Roman" size="2">C-1<hr size="1" color="#000080" STYLE="page-break-after: always">
              </font><p align="center">
<b><font size="2"><a name="REPORT">REPORT</a>
OF INDEPENDENT ACCOUNTANTS</font></b><p>
&nbsp;<p>
<font size="2">To the Shareholders and the <br>
Board of Directors of Miller Industries, Inc.:</font></p><p>
<font size="2">In our opinion, the consolidated financial statements listed in the accompanying
index present fairly, in all material respects, the financial position of Miller
Industries, Inc. and its subsidiaries at December 31, 2002 and 2001 and April
30, 2001, and the results of their operations and their cash flows for the year
ended December 31, 2002, the eight month period ended December 31, 2001 and the
years ended April 30, 2001 and 2000, in conformity with accounting principles
generally accepted in the United States of America. In addition, in our opinion,
the financial statement schedule listed in the accompanying index, presents
fairly, in all material respects, the information set forth therein when read in
conjunction with the related consolidated<b> </b>financial statements. These
financial statements and financial statement schedule are the responsibility of
the Company&#8217;s management; our responsibility is to express an opinion on
these financial statements and financial statement schedule based on our audits.
We conducted our audits of these statements in accordance with auditing
standards generally accepted in the United States of America, which require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.</font></p><p>
<font size="2">The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern.  As discussed in Notes 2 and 8 to the
consolidated financial statements, subsequent to December 31, 2002, the Company
was in default of certain covenants under its senior and subordinated credit
facility agreements, and its subordinated credit facility matures on July 23,
2003.  The senior and subordinated credit facility agreements contain certain
cross-default provisions and provide for the acceleration of amounts due as well
as other remedies in the event of default.  These circumstances raise
substantial doubt about the Company&#8217;s ability to continue as a going
concern.  Management&#8217;s actions and plans in regard to these matters are
also described in Note 2.  The consolidated financial statements do not include
any adjustments that might result from the outcome of this uncertainty.</font></p><p>
<font size="2">As discussed in Note 7 to the financial statements, the Company changed its
method of assessing impairment of intangible assets in 2002.</font></p><p>
<font size="2">&nbsp;</font></p><p>
<font size="2">/s/ PricewaterhouseCoopers LLP</font></p><p>
<font size="2">&nbsp;</font></p><p>
<font size="2">Atlanta, Georgia<br>
April 11, 2003, except as to Notes 2 and 8 for which the date is May 1,
2003</font></p><p align="center">
<font face="Times New Roman" size="2">C-2<hr size="1" color="#000080" STYLE="page-break-after: always">
              </font><p align="center">
<b>MILLER INDUSTRIES, INC. AND SUBSIDIARIES<br>
<font size="2">CONSOLIDATED
<a name="BALANCE">BALANCE</a>
SHEETS<br>
DECEMBER 31,
2002 AND 2001, AND APRIL&nbsp;30, 2001<br>
</font><font size="1">(In thousands, except share data)</font></b><div align="center">
  <center>
  <table border="0" width="711" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111">
<tr valign="top">
<td width="405" colspan="1" rowspan="1" bgcolor=#FFF3CE height="31">
<p style="margin-top: 5">
<font size="2">&nbsp;</font></td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="31">
<p style="margin-top: 5">
<font size="2">&nbsp;</font></td>
<td width="82" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-bottom-style: solid; border-bottom-width: 1" height="31">
<p align="center" style="margin-top: 5">
<font size="2"><b>December
31,</b><br><b>2002</b></font></p align="center">
</td>
<td width="14" colspan="1" rowspan="1" bgcolor=#FFF3CE height="31">
<p style="margin-top: 5">
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-bottom-style: solid; border-bottom-width: 1" height="31">
<p align="center" style="margin-top: 5">
<font size="2">December
31,<br>2001</font></p align="center">
</td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="31">
<p style="margin-top: 5">
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-bottom-style: solid; border-bottom-width: 1" height="31">
<p align="center" style="margin-top: 5">
<font size="2">April 30, <br>2001</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" height="13" >
<p style="margin-bottom: 11">
<font size="2"><b>ASSETS</b></font></p>
</td>
<td width="7" colspan="1" rowspan="1" height="13" >
<p style="margin-bottom: 11">
<font size="2">&nbsp;</font></td>
<td width="82" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1" height="14" >
<p style="margin-bottom: 11">
<font size="2">&nbsp;</font></td>
<td width="14" colspan="1" rowspan="1" height="13" >
<p style="margin-bottom: 11">
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1" height="14" >
<p style="margin-bottom: 11">
<font size="2">&nbsp;</font></td>
<td width="7" colspan="1" rowspan="1" height="13" >
<p style="margin-bottom: 11">
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1" height="14" >
<p style="margin-bottom: 11">
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" height="15" >
<p>
<font size="2"><b>CURRENT ASSETS:</b></font></p>
</td>
<td width="7" colspan="1" rowspan="1" height="15" >
<font size="2">&nbsp;</font></td>
<td width="82" colspan="1" rowspan="1" height="15" >
<font size="2">&nbsp;</font></td>
<td width="14" colspan="1" rowspan="1" height="15" >
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" height="15" >
<font size="2">&nbsp;</font></td>
<td width="7" colspan="1" rowspan="1" height="15" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" height="15" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and temporary
investments</font></p>
</td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="82" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p align="right">
<font size="2">$2,097&nbsp;</font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p align="right">
<font size="2">$9,863&nbsp;</font></p align="right">
</td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p align="right">
<font size="2">$6,627&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" height="45" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable,
net of allowance for doubtful accounts of $805,<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;$3,023 and $2,853 at <br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December
31, 2002, and 2001 and April 30, 2001, respectively</font></p>
</td>
<td width="7" colspan="1" rowspan="1" height="45" >
<font size="2">&nbsp;</font></td>
<td width="82" colspan="1" rowspan="1" height="45" >
<p align="right">
<font size="2"><br>
<br>
46,616&nbsp;</font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" height="45" >
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" height="45" >
<p align="right">
<font size="2"><br>
<br>
66,555&nbsp;</font></p align="right">
</td>
<td width="7" colspan="1" rowspan="1" height="45" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" height="45" >
<p align="right">
<font size="2"><br>
<br>
75,104&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories,
net</font></p>
</td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="82" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p align="right">
<font size="2">27,815&nbsp;</font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p align="right">
<font size="2">60,114&nbsp;</font></p align="right">
</td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p align="right">
<font size="2">67,835&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" height="15" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income
taxes</font></p>
</td>
<td width="7" colspan="1" rowspan="1" height="15" >
<font size="2">&nbsp;</font></td>
<td width="82" colspan="1" rowspan="1" height="15" >
<p align="right">
<font size="2">0&nbsp;</font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" height="15" >
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" height="15" >
<p align="right">
<font size="2">12,421&nbsp;</font></p align="right">
</td>
<td width="7" colspan="1" rowspan="1" height="15" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" height="15" >
<p align="right">
<font size="2">5,371&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and
other</font></p>
</td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="82" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p align="right">
<font size="2">748&nbsp;</font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p align="right">
<font size="2">12,178&nbsp;</font></p align="right">
</td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p align="right">
<font size="2">12,010&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" height="16" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current assets of
discontinued operations held for sale</font></p>
</td>
<td width="7" colspan="1" rowspan="1" height="16" >
<font size="2">&nbsp;</font></td>
<td width="82" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" height="16" >
<p align="right">
<font size="2">32,366&nbsp;</font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" height="16" >
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" height="16" >
<p align="right">
<font size="2">0&nbsp;</font></p align="right">
</td>
<td width="7" colspan="1" rowspan="1" height="16" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" height="16" >
<p align="right">
<font size="2">0&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&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 width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="82" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1" height="16">
<p align="right">
<font size="2">109,642&nbsp;</font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1" height="16">
<p align="right">
<font size="2">161,131&nbsp;</font></p align="right">
</td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1" height="16">
<p align="right">
<font size="2">166,947&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" height="15" >
<p>
<font size="2"><b>PROPERTY, PLANT, AND EQUIPMENT, </b>net</font></p>
</td>
<td width="7" colspan="1" rowspan="1" height="15" >
<font size="2">&nbsp;</font></td>
<td width="82" colspan="1" rowspan="1" height="15" >
<p align="right">
<font size="2">23,121&nbsp;</font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" height="15" >
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" height="15" >
<p align="right">
<font size="2">53,122&nbsp;</font></p align="right">
</td>
<td width="7" colspan="1" rowspan="1" height="15" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" height="15" >
<p align="right">
<font size="2">58,564&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p>
<font size="2"><b>GOODWILL, </b>net</font></p>
</td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="82" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p align="right">
<font size="2">11,619&nbsp;</font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p align="right">
<font size="2">33,435&nbsp;</font></p align="right">
</td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p align="right">
<font size="2">46,736&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" height="30" >
<p>
<font size="2"><b>PATENTS, TRADEMARKS, AND OTHER PURCHASED PRODUCT
</b><br><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RIGHTS,
</b>net</font></p>
</td>
<td width="7" colspan="1" rowspan="1" height="30" >
<font size="2">&nbsp;</font></td>
<td width="82" colspan="1" rowspan="1" height="30" >
<p align="right">
<font size="2"><br>
537&nbsp;</font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" height="30" >
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" height="30" >
<p align="right">
<font size="2"><br>
1,101&nbsp;</font></p align="right">
</td>
<td width="7" colspan="1" rowspan="1" height="30" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" height="30" >
<p align="right">
<font size="2"><br>
834&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p>
<font size="2"><b>OTHER ASSETS</b></font></p>
</td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="82" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p align="right">
<font size="2">1,841&nbsp;</font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p align="right">
<font size="2">4,174&nbsp;</font></p align="right">
</td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p align="right">
<font size="2">8,206&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" height="30" >
<p>
<font size="2"><b>NONCURRENT ASSETS OF DISCONTINUED OPERATIONS
</b></font><font face="Times New Roman Bold" size="2"><b>HELD<br>
&nbsp;&nbsp;&nbsp;&nbsp;FOR
SALE</b></font></p>
</td>
<td width="7" colspan="1" rowspan="1" height="30" >
<font size="2">&nbsp;</font></td>
<td width="82" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" height="30" >
<p align="right">
<font size="2">15,417&nbsp;</font></p align="right">
</td>
<td width="14" valign="bottom" height="30" >
<font size="2">&nbsp;</font></td>
<td width="81" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" height="30" >
<p align="right">
<font size="2">0&nbsp;</font></p align="right">
</td>
<td width="7" valign="bottom" height="30" >
<font size="2">&nbsp;</font></td>
<td width="69" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" height="30" >
<p align="right">
<font size="2">0&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" bgcolor=#FFF3CE height="17">
<font size="2">&nbsp;</font></td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="17">
<font size="2">&nbsp;</font></td>
<td width="82" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" height="20">
<p align="right">
<font size="2">$162,177&nbsp;</font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" bgcolor=#FFF3CE height="17">
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" height="20">
<p align="right">
<font size="2">$252,963&nbsp;</font></p align="right">
</td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="17">
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" height="20">
<p align="right">
<font size="2">$281,287&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" height="15" >
<p style="margin-bottom: 11">
<font size="2"><b>LIABILITIES AND SHAREHOLDERS&#8217; EQUITY</b></font></p>
</td>
<td width="7" colspan="1" rowspan="1" height="15" >
<p style="margin-bottom: 11">
<font size="2">&nbsp;</font></td>
<td width="82" colspan="1" rowspan="1" height="15" >
<p style="margin-bottom: 11">
<font size="2">&nbsp;</font></td>
<td width="14" colspan="1" rowspan="1" height="15" >
<p style="margin-bottom: 11">
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" height="15" >
<p style="margin-bottom: 11">
<font size="2">&nbsp;</font></td>
<td width="7" colspan="1" rowspan="1" height="15" >
<p style="margin-bottom: 11">
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" height="15" >
<p style="margin-bottom: 11">
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" height="15" >
<p>
<font size="2"><b>CURRENT LIABILITIES:</b></font></p>
</td>
<td width="7" colspan="1" rowspan="1" height="15" >
<font size="2">&nbsp;</font></td>
<td width="82" colspan="1" rowspan="1" height="15" >
<font size="2">&nbsp;</font></td>
<td width="14" colspan="1" rowspan="1" height="15" >
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" height="15" >
<font size="2">&nbsp;</font></td>
<td width="7" colspan="1" rowspan="1" height="15" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" height="15" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current portion of
long-term obligations</font></p>
</td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="82" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p align="right">
<font size="2">$35,244&nbsp;</font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p align="right">
<font size="2">$12,405&nbsp;</font></p align="right">
</td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p align="right">
<font size="2">$7,213&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" height="15" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts
payable</font></p>
</td>
<td width="7" colspan="1" rowspan="1" height="15" >
<font size="2">&nbsp;</font></td>
<td width="82" colspan="1" rowspan="1" height="15" >
<p align="right">
<font size="2">25,213&nbsp;</font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" height="15" >
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" height="15" >
<p align="right">
<font size="2">36,366&nbsp;</font></p align="right">
</td>
<td width="7" colspan="1" rowspan="1" height="15" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" height="15" >
<p align="right">
<font size="2">43,064&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities and
other</font></p>
</td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="82" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p align="right">
<font size="2">6,147&nbsp;</font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p align="right">
<font size="2">24,759&nbsp;</font></p align="right">
</td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p align="right">
<font size="2">25,356&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" height="16" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Current liabilities of
discontinued operations held for sale</font></p>
</td>
<td width="7" colspan="1" rowspan="1" height="16" >
<font size="2">&nbsp;</font></td>
<td width="82" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" height="16" >
<p align="right">
<font size="2">53,212&nbsp;</font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" height="16" >
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" height="16" >
<p align="right">
<font size="2">0&nbsp;</font></p align="right">
</td>
<td width="7" colspan="1" rowspan="1" height="16" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" height="16" >
<p align="right">
<font size="2">0&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="82" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1" height="16">
<p align="left"><font size="2">&nbsp;</font></td>
<td width="14" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1" height="16">
<font size="2">&nbsp;</font></td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1" height="16">
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" height="16" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&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 width="7" colspan="1" rowspan="1" height="16" >
<font size="2">&nbsp;</font></td>
<td width="82" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" height="16" >
<p align="right">
<font size="2">119,816&nbsp;</font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" height="16" >
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" height="16" >
<p align="right">
<font size="2">73,530&nbsp;</font></p align="right">
</td>
<td width="7" colspan="1" rowspan="1" height="16" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" height="16" >
<p align="right">
<font size="2">75,633&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="82" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1" height="16">
<font size="2">&nbsp;</font></td>
<td width="14" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1" height="16">
<font size="2">&nbsp;</font></td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1" height="16">
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" height="16" >
<p>
<font size="2"><b>LONG-TERM OBLIGATIONS</b>, less current portion</font></p>
</td>
<td width="7" colspan="1" rowspan="1" height="16" >
<font size="2">&nbsp;</font></td>
<td width="82" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" height="16" >
<p align="right">
<font size="2">1,214&nbsp;</font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" height="16" >
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" height="16" >
<p align="right">
<font size="2">91,562&nbsp;</font></p align="right">
</td>
<td width="7" colspan="1" rowspan="1" height="16" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" height="16" >
<p align="right">
<font size="2">99,121&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" bgcolor=#FFF3CE height="16">
<p>
<font size="2"><b>DEFERRED INCOME TAXES</b></font></p>
</td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="16">
<font size="2">&nbsp;</font></td>
<td width="82" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="17">
<p align="right">
<font size="2">0&nbsp;</font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" bgcolor=#FFF3CE height="16">
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="17">
<p align="right">
<font size="2">3,028&nbsp;</font></p align="right">
</td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="16">
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="17">
<p align="right">
<font size="2">0&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td colspan="1" rowspan="1" >
<p>
<font size="2"><b>NONCURRENT LIABILITIES OF DISCONTINUED
</b><br><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OPERATIONS
HELD FOR SALE</b></font></p>
</td>
<td width="7" colspan="1" rowspan="1" height="30" >
<font size="2">&nbsp;</font></td>
<td width="82" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" valign="bottom" height="31" >
<p align="right">
<font size="2">1,450&nbsp;</font></p align="right">
</td>
<td width="14" valign="bottom" height="30" >
<font size="2">&nbsp;</font></td>
<td width="81" style="border-top-style: solid; border-top-width: 1; border-bottom-style:solid; border-bottom-width:1" valign="bottom" height="31" >
<p align="right">
<font size="2">0&nbsp;</font></p align="right">
</td>
<td width="7" valign="bottom" height="30" >
<font size="2">&nbsp;</font></td>
<td width="69" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" valign="bottom" height="31" >
<p align="right">
<font size="2">0&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p>
<font size="2"><b>COMMITMENTS AND CONTINGENCIES </b>(Notes 8, 9 and
11)</font></p>
</td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="82" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1" height="16">
<font size="2">&nbsp;&nbsp;</font></td>
<td width="14" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1" height="16">
<font size="2">&nbsp;</font></td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1" height="16">
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p style="margin-top: 8">
<font size="2"><b>SHAREHOLDERS&#8217; EQUITY</b>:</font></p>
</td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p style="margin-top: 8">
<font size="2">&nbsp;</font></td>
<td width="82" bgcolor=#FFF3CE height="15">
<p style="margin-top: 8">
<font size="2">&nbsp;</font></td>
<td width="14" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p style="margin-top: 8">
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p style="margin-top: 8">
<font size="2">&nbsp;</font></td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p style="margin-top: 8">
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p style="margin-top: 8">
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" height="30" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, $.01
par value; 5,000,000 shares authorized,<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;none issued
or&nbsp;outstanding</font></p>
</td>
<td width="7" colspan="1" rowspan="1" height="30" >
<font size="2">&nbsp;</font></td>
<td width="82" height="30" >
<p align="right">
<font size="2">
<br>0&nbsp;</font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" height="30" >
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" height="30" >
<p align="right">
<font size="2">
<br>0&nbsp;</font></p align="right">
</td>
<td width="7" colspan="1" rowspan="1" height="30" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" height="30" >
<p align="right">
<font size="2">
<br>0&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" bgcolor=#FFF3CE height="45">
<p>
<font size="2">&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;9,341,436,
and 9,341,753 shares issued and outstanding
at<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;December 31, 2002 and
2001, and April 30, 2001, respectively</font></p>
</td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="45">
<font size="2">&nbsp;</font></td>
<td width="82" bgcolor=#FFF3CE height="45">
<p align="right">
<font size="2">
<br><br>93&nbsp;</font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" bgcolor=#FFF3CE height="45">
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE height="45">
<p align="right">
<font size="2">
<br><br>93&nbsp;</font></p align="right">
</td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="45">
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" bgcolor=#FFF3CE height="45">
<p align="right">
<font size="2">
<br><br>93&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" height="15" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional paid-in
capital</font></p>
</td>
<td width="7" colspan="1" rowspan="1" height="15" >
<font size="2">&nbsp;</font></td>
<td width="82" height="15" >
<p align="right">
<font size="2">145,088&nbsp;</font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" height="15" >
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" height="15" >
<p align="right">
<font size="2">145,088&nbsp;</font></p align="right">
</td>
<td width="7" colspan="1" rowspan="1" height="15" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" height="15" >
<p align="right">
<font size="2">145,088&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated
deficit</font></p>
</td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="82" bgcolor=#FFF3CE height="15">
<p align="right">
<font size="2">(103,790)</font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p align="right">
<font size="2">(58,096)</font></p align="right">
</td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" bgcolor=#FFF3CE height="15">
<p align="right">
<font size="2">(36,509)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" height="16" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accumulated other
comprehensive loss</font></p>
</td>
<td width="7" colspan="1" rowspan="1" height="16" >
<font size="2">&nbsp;</font></td>
<td width="82" style="border-bottom-style: solid; border-bottom-width: 1" height="16" >
<p align="right">
<font size="2">(1,694)</font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" height="16" >
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" height="16" >
<p align="right">
<font size="2">(2,242)</font></p align="right">
</td>
<td width="7" colspan="1" rowspan="1" height="16" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" height="16" >
<p align="right">
<font size="2">(2,139)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" bgcolor=#FFF3CE height="16">
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
shareholders&#8217; equity</font></p>
</td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="16">
<font size="2">&nbsp;</font></td>
<td width="82" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="17">
<p align="right">
<font size="2">39,697&nbsp;</font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" bgcolor=#FFF3CE height="16">
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="17">
<p align="right">
<font size="2">84,843&nbsp;</font></p align="right">
</td>
<td width="7" colspan="1" rowspan="1" bgcolor=#FFF3CE height="16">
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" height="17">
<p align="right">
<font size="2">106,533&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="405" colspan="1" rowspan="1" height="19" >
<font size="2">&nbsp;</font></td>
<td width="7" colspan="1" rowspan="1" height="19" >
<font size="2">&nbsp;</font></td>
<td width="82" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" height="20">
<p align="right">
<font size="2">$162,177&nbsp;</font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" height="19" >
<font size="2">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" height="20" >
<p align="right">
<font size="2">$252,963</font></p align="right">
</td>
<td width="7" colspan="1" rowspan="1" height="19" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" height="20" >
<p align="right">
<font size="2">$281,287&nbsp;</font></p align="right">
</td>
</tr>
</table>
  </center>
</div>
<p align="center">
<font size="2">The accompanying notes are an integral part of these consolidated
balance sheets.<br>
</font>
<font face="Times New Roman" size="2">C-3<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p align="center">
<b>MILLER INDUSTRIES, INC. AND SUBSIDIARIES</b><p align="center">


<b><font size="2">CONSOLIDATED
STATEMENTS OF <a name="OPERATIONS">OPERATIONS</a></font></b><p align="center">


<b><font size="2">FOR THE YEAR ENDED DECEMBER 31, 2002, EIGHT
MONTHS ENDED DECEMBER 31,<br>2001 AND YEARS ENDED APRIL 30, 2001 AND 2000<br>
(IN THOUSANDS, EXCEPT PER SHARE DATA)<br>
&nbsp;</font></b><div align="center">
  <center><table border=0 cellpadding=0 cellspacing =0 width="717" style="border-collapse: collapse" bordercolor="#111111" >
<tr valign="top">
<td width="341" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="97" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>December
31,</b><br><b>2002</b></font></p>
</td>
<td width="14" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="98" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">December 31,<br>2001</font></p>
</td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="71" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">April 30,<br>2001</font></p>
</td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="68" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">April 30,<br>2000</font></p>
</td>
</tr>
<tr valign="top">
<td width="341" colspan="1" rowspan="1" >
<font size="2">&nbsp; </font></td>
<td width="97" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="14" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="98" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="15" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="71" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="13" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="68" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="341" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>NET SALES</b></font></p>
</td>
<td width="97" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2"><b>$203,059&nbsp;</b></font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="98" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$142,445&nbsp;</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="71" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$212,885&nbsp;</font></p align="right">
</td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="68" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$261,907&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="341" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="97" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="14" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="98" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="15" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="71" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="13" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="68" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="341" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>COSTS AND EXPENSES:</b></font></p>
</td>
<td width="97" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="14" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="98" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="71" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="68" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="341" colspan="1" rowspan="1" >
<p>
<font size="2">Costs of operations</font></p>
</td>
<td width="97" colspan="2" rowspan="1" >
<p align="right">
<font size="2"><b>174,516&nbsp;</b></font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="98" colspan="2" rowspan="1" >
<p align="right">
<font size="2">122,753&nbsp;</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="71" colspan="2" rowspan="1" >
<p align="right">
<font size="2">181,517&nbsp;</font></p align="right">
</td>
<td width="13" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="68" colspan="2" rowspan="1" >
<p align="right">
<font size="2">220,602&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="341" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling, general and
administrative expenses</font></p>
</td>
<td width="97" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2"><b>17,434&nbsp;</b></font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="98" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">12,547&nbsp;</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="71" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">20,663&nbsp;</font></p align="right">
</td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="68" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">22,791&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="341" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Special
Charges</font></p>
</td>
<td width="97" colspan="2" rowspan="1" >
<p align="right">
<font size="2"><b>--&nbsp;</b></font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="98" colspan="2" rowspan="1" >
<p align="right">
<font size="2">1,794&nbsp;</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="71" colspan="2" rowspan="1" >
<p align="right">
<font size="2">--&nbsp;</font></p align="right">
</td>
<td width="13" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="68" colspan="2" rowspan="1" >
<p align="right">
<font size="2">2,770&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="341" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest expense,
net</font></p>
</td>
<td width="97" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>4,368&nbsp;</b></font></p>
</td>
<td width="14" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="98" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">1,055&nbsp;</font></p>
</td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="71" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">2,137&nbsp;</font></p>
</td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="68" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">6,036&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="341" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total costs and
expenses</font></p>
</td>
<td width="97" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>196,318&nbsp;</b></font></p>
</td>
<td width="14" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="98" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">138,149&nbsp;</font></p>
</td>
<td width="15" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="71" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">204,317&nbsp;</font></p>
</td>
<td width="13" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="68" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">252,199&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="341" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="97" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="14" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="98" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="71" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="68" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="341" colspan="1" rowspan="1" >
<p>
<font size="2"><b>INCOME FROM CONTINUING OPERATIONS<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BEFORE INCOME TAXES
</b></font></p>
</td>
<td width="97" colspan="2" valign="bottom" >
<p align="right">
<font size="2"><b>6,741&nbsp;</b></font></p align="right">
</td>
<td width="14" valign="bottom" >
<font size="2">&nbsp;</font></td>
<td width="98" colspan="2" valign="bottom" >
<p align="right">
<font size="2">4,296&nbsp;</font></p align="right">
</td>
<td width="15" valign="bottom" >
<font size="2">&nbsp;</font></td>
<td width="71" colspan="2" valign="bottom" >
<p align="right">
<font size="2">8,568&nbsp;</font></p align="right">
</td>
<td width="13" valign="bottom" >
<font size="2">&nbsp;</font></td>
<td width="68" colspan="2" valign="bottom" >
<p align="right">
<font size="2">9,708&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="341" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>INCOME TAX PROVISION (BENEFIT)</b></font></p>
</td>
<td width="97" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>3,217&nbsp;</b></font></p>
</td>
<td width="14" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="98" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">2,419&nbsp;</font></p>
</td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="71" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">2,533&nbsp;</font></p>
</td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="68" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">6,505&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="341" colspan="1" rowspan="1" >
<p>
<font size="2"><b>INCOME (LOSS) FROM CONTINUING<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OPERATIONS </b></font></p>
</td>
<td width="97" colspan="2" valign="bottom" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>3,524&nbsp;</b></font></p>
</td>
<td width="14" valign="bottom" >
<font size="2">&nbsp;</font></td>
<td width="98" colspan="2" valign="bottom" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">1,877&nbsp;</font></p>
</td>
<td width="15" valign="bottom" >
<font size="2">&nbsp;</font></td>
<td width="71" colspan="2" valign="bottom" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">6,035&nbsp;</font></p>
</td>
<td width="13" valign="bottom" >
<font size="2">&nbsp;</font></td>
<td width="68" colspan="2" valign="bottom" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">3,203&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="341" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;</font></p>
</td>
<td width="97" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="14" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;&nbsp; </font></td>
<td width="98" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;&nbsp; </font></td>
<td width="71" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;&nbsp; </font></td>
<td width="68" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="341" colspan="1" rowspan="1" >
<p>
<font size="2"><b>DISCONTINUED OPERATIONS:</b></font></p>
</td>
<td width="97" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="14" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="98" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="15" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="71" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="13" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="68" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="341" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Loss) from
discontinued operations, before taxes</font></p>
</td>
<td width="97" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2"><b>(26,146)</b></font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="98" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(24,041)</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="71" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(18,176)</font></p align="right">
</td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="68" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(96,159)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="341" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax provision
(benefit)</font></p>
</td>
<td width="97" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>1,260&nbsp;</b></font></p>
</td>
<td width="14" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="98" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(577)</font></p>
</td>
<td width="15" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="71" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(5,707)</font></p>
</td>
<td width="13" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="68" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(19,813)</font></p>
</td>
</tr>
<tr valign="top">
<td width="341" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Loss) from
discontinued operations</font></p>
</td>
<td width="97" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2"><b>(27,406)</b></font></p align="right">
</td>
<td width="14" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="98" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(23,464)</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="71" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(12,469)</font></p align="right">
</td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="68" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(76,346)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="341" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="97" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="14" colspan="1" rowspan="1" >
<font size="2">&nbsp;&nbsp; </font></td>
<td width="98" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="15" colspan="1" rowspan="1" >
<font size="2">&nbsp;&nbsp; </font></td>
<td width="71" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="13" colspan="1" rowspan="1" >
<font size="2">&nbsp;&nbsp; </font></td>
<td width="68" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="341" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>NET LOSS BEFORE CUMULATIVE EFFECT OF<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CHANGE IN ACCOUNTING
METHOD</b></font></p>
</td>
<td width="97" colspan="2" bgcolor=#FFF3CE valign="bottom">
<p align="right">
<font size="2"><b>(23,882)</b></font></p align="right">
</td>
<td width="14" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="98" colspan="2" bgcolor=#FFF3CE valign="bottom">
<p align="right">
<font size="2">(21,587)</font></p align="right">
</td>
<td width="15" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="71" colspan="2" bgcolor=#FFF3CE valign="bottom">
<p align="right">
<font size="2">(6,434)</font></p align="right">
</td>
<td width="13" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="68" colspan="2" bgcolor=#FFF3CE valign="bottom">
<p align="right">
<font size="2">(73,143)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="341" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cumulative effect of change in accounting<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;principle</font></p>
</td>
<td width="97" colspan="2" valign="bottom" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"><b>(21,812)</b></font></p>
</td>
<td width="14" valign="bottom" >
<font size="2">&nbsp;</font></td>
<td width="98" colspan="2" valign="bottom" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">--&nbsp;</font></p>
</td>
<td width="15" valign="bottom" >
<font size="2">&nbsp;</font></td>
<td width="71" colspan="2" valign="bottom" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">--&nbsp;</font></p>
</td>
<td width="13" valign="bottom" >
<font size="2">&nbsp;</font></td>
<td width="68" colspan="2" valign="bottom" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">--&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="341" bgcolor="#FFF3CE" >
<font size="2"><b>NET LOSS</b></font></td>
<td width="49" bgcolor="#FFF3CE" style="border-bottom-style: double" >
<p align="left">
<font size="2">$</font></p align="right">
</td>
<td width="48" bgcolor="#FFF3CE" style="border-bottom-style: double" >
<p align="right">
<font size="2"><b>(45,694)</b></font></td>
<td width="14" bgcolor="#FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="32" bgcolor="#FFF3CE" style="border-bottom-style: double" >
<font size="2">$</font></td>
<td width="66" bgcolor="#FFF3CE" style="border-bottom-style: double" >
<p align="right">
<font size="2">(21,587)</font></td>
<td width="15" bgcolor="#FFF3CE" >
<font size="2"><i>&nbsp;</i></font></td>
<td width="21" bgcolor="#FFF3CE" style="border-bottom-style: double" >
<font size="2">$</font></td>
<td width="50" bgcolor="#FFF3CE" style="border-bottom-style: double" >
<p align="right">
<font size="2">(6,434)</font></td>
<td width="13" bgcolor="#FFF3CE" >
<font size="2"><i>&nbsp;</i></font></td>
<td width="20" bgcolor="#FFF3CE" style="border-bottom-style: double" >
<font size="2">$</font></td>
<td width="48" bgcolor="#FFF3CE" style="border-bottom-style: double" >
<p align="right">
<font size="2">(73,143)</font></td>
</tr>
<tr valign="top">
<td width="341" colspan="1" >
<p style="margin-top: 10">
<font size="2"><b>BASIC INCOME (LOSS) PER COMMON SHARE:</b></font></td>
<td width="97" colspan="2" >
<p style="margin-top: 10">
<font size="2"><b>&nbsp;</b></font></td>
<td width="14" colspan="1" >
<p style="margin-top: 10">
<font size="2">&nbsp;</font></td>
<td width="98" colspan="2" >
<p style="margin-top: 10">
<font size="2">&nbsp;</font></td>
<td width="15" colspan="1" >
<p style="margin-top: 10">
<font size="2">&nbsp; </font></td>
<td width="71" colspan="2" >
<p style="margin-top: 10">
<font size="2">&nbsp;</font></td>
<td width="13" colspan="1" >
<p style="margin-top: 10">
<font size="2">&nbsp; </font></td>
<td width="68" colspan="2" >
<p style="margin-top: 10">
<font size="2">&nbsp;</font></td>
</tr>
<tr>
<td width="341" bgcolor="#FFF3CE" >
<font size="2">Income from continuing operations</font></td>
<td width="49" bgcolor="#FFF3CE" >
<p align="left">
<font size="2">$</font></p align="right">
</td>
<td width="48" bgcolor="#FFF3CE" >
<p align="right"><font size="2"><b>0.38&nbsp;</b></font></td>
<td width="14" bgcolor="#FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="32" bgcolor="#FFF3CE" >
<font size="2">$</font></td>
<td width="66" bgcolor="#FFF3CE" >
<p align="right"><font size="2">0.20&nbsp;</font></td>
<td width="15" bgcolor="#FFF3CE" >
<font size="2"><i>&nbsp;</i></font></td>
<td width="21" bgcolor="#FFF3CE" >
<font size="2">$</font></td>
<td width="50" bgcolor="#FFF3CE" >
<p align="right"><font size="2">0.65&nbsp;</font></td>
<td width="13" bgcolor="#FFF3CE" >
<font size="2"><i>&nbsp;</i></font></td>
<td width="20" bgcolor="#FFF3CE" >
<font size="2">$</font></td>
<td width="48" bgcolor="#FFF3CE" >
<p align="right"><font size="2">0.34&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="341" colspan="1" >
<font size="2">Loss from discontinued operations</font></td>
<td width="97" colspan="2" >
<p align="right">
<font size="2"><b>(2.93)</b></font></td>
<td width="14" colspan="1" >
<font size="2">&nbsp;</font></td>
<td width="98" colspan="2" >
<p align="right">
<font size="2">(2.51)</font></p align="right">
</td>
<td width="15" colspan="1" >
<font size="2">&nbsp;</font></td>
<td width="71" colspan="2" >
<p align="right">
<font size="2">(1.34)</font></p align="right">
</td>
<td width="13" colspan="1" >
<font size="2">&nbsp;</font></td>
<td width="68" colspan="2" >
<p align="right">
<font size="2">(8.17)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="341" bgcolor="#FFF3CE" >
<font size="2">Cumulative effect of change in accounting principle </font>
</td>
<td width="97" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE" >
<p align="right">
<font size="2"><b>(2.34)</b></font></p align="right">
</td>
<td width="14" bgcolor="#FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="98" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE" >
<p align="right">
<font size="2"><i>--&nbsp;</i></font></p align="right">
</td>
<td width="15" bgcolor="#FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="71" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE" >
<p align="right">
<font size="2"><i>--&nbsp;</i></font></p align="right">
</td>
<td width="13" bgcolor="#FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="68" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE" >
<p align="right">
<font size="2"><i>--&nbsp;</i></font></p align="right">
</td>
</tr>
<tr>
<td width="341" colspan="1" >
<font size="2">Basic income (loss) per common share</font></td>
<td width="49" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" >
<p align="left">
<font size="2">$</font></p align="right">
</td>
<td width="48" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" >
<p align="right"><font size="2"><b>(4.89)</b></font></td>
<td width="14" colspan="1" >
<font size="2">&nbsp;</font></td>
<td width="32" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" >
<font size="2">$</font></td>
<td width="66" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" >
<p align="right"><font size="2">2.31&nbsp;</font></td>
<td width="15" colspan="1" >
<font size="2"><i>&nbsp;</i></font></td>
<td width="21" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" >
<font size="2">$</font></td>
<td width="50" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" >
<p align="right"><font size="2">(0.69)</font></td>
<td width="13" colspan="1" >
<font size="2"><i>&nbsp;</i></font></td>
<td width="20" style="border-bottom-style: double; border-top-style:solid; border-top-width:1" >
<font size="2">$</font></td>
<td width="48" style="border-bottom-style: double; border-top-style:solid; border-top-width:1" >
<p align="right"><font size="2">(7.83)</font></td>
</tr>
<tr valign="top">
<td width="341" bgcolor="#FFF3CE" >
<p style="margin-top: 10">
<font size="2"><b>DILUTED INCOME (LOSS) PER COMMON<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SHARE:</b></font></td>
<td width="97" colspan="2" bgcolor="#FFF3CE" >
<p style="margin-top: 10">
<font size="2">&nbsp;</font></td>
<td width="14" bgcolor="#FFF3CE" >
<p style="margin-top: 10">
<font size="2">&nbsp;</font></td>
<td width="98" colspan="2" bgcolor="#FFF3CE" >
<p style="margin-top: 10">
<font size="2">&nbsp;</font></td>
<td width="15" bgcolor="#FFF3CE" >
<p style="margin-top: 10">
<font size="2">&nbsp;</font></td>
<td width="71" colspan="2" bgcolor="#FFF3CE" >
<p style="margin-top: 10">
<font size="2">&nbsp;</font></td>
<td width="13" bgcolor="#FFF3CE" >
<p style="margin-top: 10">
<font size="2">&nbsp;</font></td>
<td width="68" colspan="2" bgcolor="#FFF3CE" >
<p style="margin-top: 10">
<font size="2">&nbsp;</font></td>
</tr>
<tr>
<td width="341" colspan="1" >
<font size="2">Income from continuing operations</font></td>
<td width="49" >
<p align="left">
<font size="2">$</font></p align="right">
</td>
<td width="48" >
<p align="right"><font size="2"><b>0.38&nbsp;</b></font></td>
<td width="14" colspan="1" >
<font size="2">&nbsp;</font></td>
<td width="32" >
<font size="2">$</font></td>
<td width="66" >
<p align="right"><font size="2">0.20&nbsp;</font></td>
<td width="15" colspan="1" >
<font size="2"><i>&nbsp;</i></font></td>
<td width="21" >
<font size="2">$</font></td>
<td width="50" >
<p align="right"><font size="2">0.65&nbsp;</font></td>
<td width="13" colspan="1" >
<font size="2"><i>&nbsp;</i></font></td>
<td width="20" >
<font size="2">$</font></td>
<td width="48" >
<p align="right"><font size="2">0.34&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="341" bgcolor="#FFF3CE" >
<font size="2">Loss from discontinued operations</font></td>
<td width="97" colspan="2" bgcolor="#FFF3CE" >
<p align="right">
<font size="2"><b>(2.93)</b></font></p align="right">
</td>
<td width="14" bgcolor="#FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="98" colspan="2" bgcolor="#FFF3CE" >
<p align="right">
<font size="2">(2.51)</font></p align="right">
</td>
<td width="15" bgcolor="#FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="71" colspan="2" bgcolor="#FFF3CE" >
<p align="right">
<font size="2">(1.34)</font></p align="right">
</td>
<td width="13" bgcolor="#FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="68" colspan="2" bgcolor="#FFF3CE" >
<p align="right">
<font size="2">(8.17)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="341" colspan="1" >
<font size="2">Cumulative effect of change in accounting principle </font></td>
<td width="97" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2"><b>(2.34)</b></font></p align="right">
</td>
<td width="14" colspan="1" >
<font size="2">&nbsp;</font></td>
<td width="98" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2"><i>--&nbsp;</i></font></p align="right">
</td>
<td width="15" colspan="1" >
<i>
<font size="2">&nbsp;</font></i></td>
<td width="71" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2"><i>--&nbsp;</i></font></p align="right">
</td>
<td width="13" colspan="1" >
<i>
<font size="2">&nbsp;</font></i></td>
<td width="68" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2"><i>--&nbsp;</i></font></p align="right">
</td>
</tr>
<tr>
<td width="341" bgcolor="#FFF3CE" >
<font size="2">Diluted income (loss) per common share</font></td>
<td width="49" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" bgcolor="#FFF3CE" >
<p align="left">
<font size="2">$</font></p align="right">
</td>
<td width="48" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" bgcolor="#FFF3CE" >
<p align="right"><font size="2"><b>(4.89)</b></font></td>
<td width="14" bgcolor="#FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="32" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" bgcolor="#FFF3CE" >
<font size="2">$</font></td>
<td width="66" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" bgcolor="#FFF3CE" >
<p align="right"><font size="2">(2.31)</font></td>
<td width="15" bgcolor="#FFF3CE" >
<font size="2"><i>&nbsp;</i></font></td>
<td width="21" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" bgcolor="#FFF3CE" >
<font size="2">$</font></td>
<td width="50" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" bgcolor="#FFF3CE" >
<p align="right"><font size="2">(0.69)</font></td>
<td width="13" bgcolor="#FFF3CE" >
<font size="2"><i>&nbsp;</i></font></td>
<td width="20" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" bgcolor="#FFF3CE" >
<font size="2">$</font></td>
<td width="48" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" bgcolor="#FFF3CE" >
<p align="right"><font size="2">(7.83)</font></td>
</tr>
<tr valign="top">
<td width="341" colspan="1" >
<p style="margin-top: 10">
<font size="2"><b>WEIGHTED AVERAGE SHARES<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OUTSTANDING:</b></font></td>
<td width="97" colspan="2" >
<p style="margin-top: 10">
<font size="2">&nbsp;</font></td>
<td width="14" colspan="1" >
<p style="margin-top: 10">
<font size="2">&nbsp;</font></td>
<td width="98" colspan="2" >
<p style="margin-top: 10">
<font size="2">&nbsp;</font></td>
<td width="15" colspan="1" >
<p style="margin-top: 10">
<font size="2">&nbsp;</font></td>
<td width="71" colspan="2" >
<p style="margin-top: 10">
<font size="2">&nbsp;</font></td>
<td width="13" colspan="1" >
<p style="margin-top: 10">
<font size="2">&nbsp;</font></td>
<td width="68" colspan="2" >
<p style="margin-top: 10">
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="341" bgcolor="#FFF3CE" >
<font size="2">Basic</font></td>
<td width="97" colspan="2" bgcolor="#FFF3CE" >
<p align="right" style="border-bottom:double">
<font size="2"><b>9,341</b></font></p>
</td>
<td width="14" bgcolor="#FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="98" colspan="2" bgcolor="#FFF3CE" >
<p align="right" style="border-bottom:double">
<font size="2">9,341</font></p>
</td>
<td width="15" bgcolor="#FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="71" colspan="2" bgcolor="#FFF3CE" >
<p align="right" style="border-bottom:double">
<font size="2">9,341</font></p>
</td>
<td width="13" bgcolor="#FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="68" colspan="2" bgcolor="#FFF3CE" >
<p align="right" style="border-bottom:double">
<font size="2">9,339</font></p>
</td>
</tr>
<tr valign="top">
<td width="341" colspan="1" >
<font size="2">Diluted</font></td>
<td width="97" colspan="2" >
<p align="right" style="border-bottom:double">
<font size="2"><b>9,348</b></font></p>
</td>
<td width="14" colspan="1" >
<font size="2">&nbsp;</font></td>
<td width="98" colspan="2" >
<p align="right" style="border-bottom:double">
<font size="2">9,345</font></p>
</td>
<td width="15" colspan="1" >
<font size="2">&nbsp;</font></td>
<td width="71" colspan="2" >
<p align="right" style="border-bottom:double">
<font size="2">9,350</font></p>
</td>
<td width="13" colspan="1" >
<font size="2">&nbsp;</font></td>
<td width="68" colspan="2" >
<p align="right" style="border-bottom:double">
<font size="2">9,426</font></p>
</td>
</tr>
</table>
  </center>
</div>
<p align="center">
<font size="2">The accompanying notes are an integral part of these consolidated
statements.</font></p><p align="center">
<font face="Times New Roman" size="2">C-4<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p align="center">
<b><font size="2">MILLER INDUSTRIES, INC. AND SUBSIDIARIES</font></b><p align="center">
<b><font size="2">CONSOLIDATED
STATEMENTS OF SHAREHOLDERS&#8217; <a name="EQUITY">EQUITY</a></font></b><p align="center">
<b><font size="2">FOR THE YEAR ENDED DECEMBER 31,
2002, EIGHT MONTHS ENDED DECEMBER 31,<br>2001 AND YEARS ENDED APRIL 30, 2001 AND
2000<br>
(In thousands, except share data)<br>
&nbsp;</font></b><div align="center">
  <table border="0" cellspacing="0" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111" width="717">
<tr valign="top">
<td width="261" colspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="71" bgcolor=#FFF3CE align="center" valign="bottom" colspan="3" style="border-bottom-style: solid; border-bottom-width: 1">
<b><font size="2">Common<br>
Stock</font></b></td>
<td width="10" bgcolor=#FFF3CE align="center" valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="77" bgcolor=#FFF3CE align="center" valign="bottom" colspan="3" style="border-bottom-style: solid; border-bottom-width: 1">
<b><font size="2">Additional<br>
Paid-In<br>
Capital</font></b></td>
<td width="5" bgcolor=#FFF3CE align="center" valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="100" bgcolor=#FFF3CE align="center" valign="bottom" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1">
<b><font size="2">Retained<br>
Earnings<br>
(Accumulated<br>
Deficit)</font></b></td>
<td width="13" bgcolor=#FFF3CE align="center" valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="101" bgcolor=#FFF3CE align="center" valign="bottom" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1">
<b><font size="2">Accumulated<br>
Other<br>
Comprehensive<br>
Less</font></b></td>
<td width="10" bgcolor=#FFF3CE align="center" valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="69" bgcolor=#FFF3CE align="center" valign="bottom" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1">
<b><font size="2">Total</font></b></td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="71" colspan="3" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td width="5" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" >
<p>
<font size="2"><b>BALANCE, April 30, 1999</b></font></p>
</td>
<td width="36" colspan="2" align="right" >
<p align="left">
<font size="2">$</font></p align="right">
</td>
<td width="35" align="right" >
<font size="2">93</font></td>
<td width="10" align="right" >
<font size="2">&nbsp;</font></td>
<td width="38" colspan="2" align="right" >
<p align="left">
<font size="2"> $</font></p align="right">
</td>
<td width="39" align="right" >
<font size="2"> 144,981</font></td>
<td width="5" align="right" >
<p align="left">
<font size="2">&nbsp;</font></td>
<td width="50" align="right" >
<p align="left">
<font size="2">$</font></p align="right">
</td>
<td width="50" align="right" >
<font size="2">43,068&nbsp;</font></td>
<td width="13" align="right" >
<font size="2">&nbsp;</font></td>
<td width="20" align="right" >
<p align="left">
<font size="2">$</font></p align="right">
</td>
<td width="81" align="right" >
<font size="2">(839)</font></td>
<td width="10" align="right" >
<font size="2">&nbsp;</font></td>
<td width="18" align="right" >
<p align="left">
<font size="2">$</font></p align="right">
</td>
<td width="51" align="right" >
<font size="2">187,303&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="71" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="5" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive
loss:</font></p>
</td>
<td width="71" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="5" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="13" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss</font></p>
</td>
<td width="71" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="5" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(73,143)&nbsp;</font></p align="right">
</td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">0&nbsp;</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(73,143)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive,
net of tax:</font></p>
</td>
<td width="71" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="5" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="13" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency
translation</font></p>
</td>
<td width="71" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="5" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments</font></p>
</td>
<td width="71" colspan="3" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="5" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2">0&nbsp;</font></p align="right">
</td>
<td width="13" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2">(439)</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2">(439)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive
loss</font></p>
</td>
<td width="71" colspan="3" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1">
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1">
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="5" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1">
<p align="right">
<font size="2">(73,143)</font></p align="right">
</td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1">
<p align="right">
<font size="2">(439)</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1">
<p align="right">
<font size="2">(73,582)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exercise of stock
options</font></p>
</td>
<td width="71" colspan="3" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2">100</font></p align="right">
</td>
<td width="5" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2">0&nbsp;</font></p align="right">
</td>
<td width="13" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2">0&nbsp;</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2">100&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>BALANCE, April 30, 2000</b></font></p>
</td>
<td width="71" colspan="3" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1">
<p align="right">
<font size="2">93</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1">
<p align="right">
<font size="2">145,081</font></p align="right">
</td>
<td width="5" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1">
<p align="right">
<font size="2">(30,075)</font></p align="right">
</td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1">
<p align="right">
<font size="2">(1,278)</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1">
<p align="right">
<font size="2">113,821&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="71" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="5" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="13" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive
loss:</font></p>
</td>
<td width="71" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="5" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss</font></p>
</td>
<td width="71" colspan="3" rowspan="1" >
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" >
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="5" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" >
<p align="right">
<font size="2">(6,434)</font></p align="right">
</td>
<td width="13" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" >
<p align="right">
<font size="2">0&nbsp;</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" >
<p align="right">
<font size="2">(6,434)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive,
net of tax:</font></p>
</td>
<td width="71" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="5" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency
translation</font></p>
</td>
<td width="71" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="5" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="13" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments</font></p>
</td>
<td width="71" colspan="3" rowspan="1" bgcolor=#FFF3CE style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" bgcolor=#FFF3CE style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="5" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" bgcolor=#FFF3CE style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right">
<font size="2">0&nbsp;</font></p align="right">
</td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" bgcolor=#FFF3CE style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right">
<font size="2">(861)</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" bgcolor=#FFF3CE style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right">
<font size="2">(861)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive
loss</font></p>
</td>
<td width="71" colspan="3" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="5" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<p align="right">
<font size="2">(6,434)</font></p align="right">
</td>
<td width="13" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<p align="right">
<font size="2">(861)</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<p align="right">
<font size="2">(7,295)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exercise of stock
options</font></p>
</td>
<td width="71" colspan="3" rowspan="1" bgcolor=#FFF3CE style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" bgcolor=#FFF3CE style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right">
<font size="2">7</font></p align="right">
</td>
<td width="5" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" bgcolor=#FFF3CE style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right">
<font size="2">0&nbsp;</font></p align="right">
</td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" bgcolor=#FFF3CE style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right">
<font size="2">0&nbsp;</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" bgcolor=#FFF3CE style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right">
<font size="2">7&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" >
<p>
<font size="2"><b>BALANCE, April 30, 2001</b></font></p>
</td>
<td width="71" colspan="3" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<p align="right">
<font size="2">93</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<p align="right">
<font size="2">145,088</font></p align="right">
</td>
<td width="5" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<p align="right">
<font size="2">(36,509)</font></p align="right">
</td>
<td width="13" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<p align="right">
<font size="2">(2,139)</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<p align="right">
<font size="2"> 106,533&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss</font></p>
</td>
<td width="71" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="5" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(21,587)</font></p align="right">
</td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">0&nbsp;</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(21,587)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive,
net of tax:</font></p>
</td>
<td width="71" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="5" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="13" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign currency
translation</font></p>
</td>
<td width="71" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="5" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments</font></p>
</td>
<td width="71" colspan="3" rowspan="1" >
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" >
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="5" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" >
<p align="right">
<font size="2">0&nbsp;</font></p align="right">
</td>
<td width="13" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" >
<p align="right">
<font size="2">(91)</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" >
<p align="right">
<font size="2">(91)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized loss on
financial<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
instruments</font></p>
</td>
<td width="71" colspan="3" bgcolor=#FFF3CE valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="10" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" bgcolor=#FFF3CE valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="5" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" bgcolor=#FFF3CE valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right">
<font size="2">0&nbsp;</font></p align="right">
</td>
<td width="13" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" bgcolor=#FFF3CE valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right">
<font size="2">(12)</font></p align="right">
</td>
<td width="10" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" bgcolor=#FFF3CE valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right">
<font size="2">(12)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comprehensive
loss</font></p>
</td>
<td width="71" colspan="3" rowspan="1" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="5" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2">(21,587)</font></p align="right">
</td>
<td width="13" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2">(103)</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2">(21,690)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2"><b>BALANCE, December 31, 2001</b></font></p>
</td>
<td width="71" colspan="3" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1">
<p align="right">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;93</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1">
<p align="right">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;145,088</font></p align="right">
</td>
<td width="5" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1">
<p align="right">
<font size="2">(58,096)</font></p align="right">
</td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1">
<p align="right">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2,242)</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1">
<p align="right">
<font size="2">84,843&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net loss</font></p>
</td>
<td width="71" colspan="3" rowspan="1" >
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" >
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="5" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" >
<p align="right">
<font size="2">(45,694)</font></p align="right">
</td>
<td width="13" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" >
<p align="right">
<font size="2">0&nbsp;</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" >
<p align="right">
<font size="2">(45,694)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive,
net of tax:</font></p>
</td>
<td width="71" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="5" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" >
<p>
<font size="2">Foreign currency translation</font></p>
</td>
<td width="71" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="5" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="13" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Adjustments</font></p>
</td>
<td width="71" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="5" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">0&nbsp;</font></p align="right">
</td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">788&nbsp;</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">788&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" >
<p>
<font size="2">Unrealized loss on financial instruments</font></p>
</td>
<td width="71" colspan="3" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2">
0</font></p align="right">
</td>
<td width="10" valign="bottom" >
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2">
0</font></p align="right">
</td>
<td width="5" valign="bottom" >
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2">
0&nbsp;</font></p align="right">
</td>
<td width="13" valign="bottom" >
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2">
(240)</font></p align="right">
</td>
<td width="10" valign="bottom" >
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2">
(240)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Comprehensive loss</font></p>
</td>
<td width="71" colspan="3" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1">
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="77" colspan="3" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1">
<p align="right">
<font size="2">0</font></p align="right">
</td>
<td width="5" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="100" colspan="2" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1">
<p align="right">
<font size="2">(45,694)</font></p align="right">
</td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1">
<p align="right">
<font size="2">548&nbsp;</font></p align="right">
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="69" colspan="2" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1">
<p align="right">
<font size="2">(45,146)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="261" colspan="1" rowspan="1" >
<p>
<font size="2"><b>BALANCE, December 31, 2002</b></font></p>
</td>
<td width="17" style="border-bottom-style: double" >
<p align="left">
<font size="2">$</font></p align="right">
</td>
<td width="19" style="border-bottom-style: double" >
<font size="2">&nbsp;</font></td>
<td width="35" style="border-bottom-style: double" >
<p align="right">
<font size="2">93</font></td>
<td width="10" >
<font size="2">&nbsp;</font></td>
<td width="19" style="border-bottom-style: double" >
<p align="left">
<font size="2">$</font></p align="right">
</td>
<td width="19" style="border-bottom-style: double" >
<font size="2">&nbsp;</font></td>
<td width="39" style="border-bottom-style: double" >
<font size="2">145,088</font></td>
<td width="5" >
<font size="2">&nbsp;</font></td>
<td width="50" style="border-bottom-style: double" >
<font size="2">&nbsp;$</font></td>
<td width="50" style="border-bottom-style:  double" >
<font size="2">(103,790)</font></td>
<td width="13" >
<font size="2">&nbsp;</font></td>
<td width="20" style="border-bottom-style: double" >
<p align="left">
<font size="2">$</font></p align="right">
</td>
<td width="81" style="border-bottom-style: double" >
<p align="right">
<font size="2">(1,694)</font></td>
<td width="10" >
<font size="2">&nbsp;</font></td>
<td width="18" style="border-bottom-style: double" >
<p align="left">
<font size="2">$&nbsp;&nbsp;</font></p align="right">
</td>
<td width="51" style="border-bottom-style: double" align="right" >
<font size="2">&nbsp;39,697&nbsp;</font></td>
</tr>
</table></div>
<p align="center">
<font size="2">The accompanying notes are an integral part of these consolidated
statements</font></p><p align="center">
<font face="Times New Roman" size="2">C-5<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p align="center" style="margin-bottom: 5">
<b><font size="2">MILLER INDUSTRIES, INC. AND SUBSIDIARIES<br>
CONSOLIDATED
STATEMENTS OF <a name="CASH">CASH</a> FLOWS<br>
FOR THE YEAR ENDED DECEMBER 31, 2002, EIGHT MONTHS ENDED DECEMBER 31,<br>2001
AND YEARS ENDED APRIL 30, 2001 AND 2002<br>
(In thousands)</font></b><div align="center" style="position:relative; left: 0">
  <table border=0 cellpadding=0 cellspacing =0 width="692" style="border-collapse: collapse" bordercolor="#111111" >
<tr valign="top">
<td width="361" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="1"><b>December
31,</b><br><b>2002</b></font></p>
</td>
<td width="12" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="1">December 31,<br>2001</font></p>
</td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="1">April 30,<br>2001</font></p>
</td>
<td width="9" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="1">April 30,<br>2000</font></p>
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="12" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="15" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="9" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="1"><b>OPERATING ACTIVITIES:</b></font></p>
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="12" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="9" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" >
<p style="margin-left: 10">
<font size="1">Net loss </font></p>
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" >
<p align="right">
<font size="1"><b>$(45,694)</b></font></p align="right">
</td>
<td width="12" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" >
<p align="right">
<font size="1">$(21,587)</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" >
<p align="right">
<font size="1">$(6,434)</font></p align="right">
</td>
<td width="9" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" >
<p align="right">
<font size="1">$(73,143)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p style="margin-left: 10">
<font size="1">Adjustments to reconcile net loss to net cash provided by<br>
operating activities:</font></p>
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="12" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="9" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="12" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="15" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="9" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from discontinued
operations</font></p>
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1"><b>27,406&nbsp;</b></font></p align="right">
</td>
<td width="12" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">23,464&nbsp;</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">12,469&nbsp;</font></p align="right">
</td>
<td width="9" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">76,346&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" >
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and
amortization</font></p>
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" >
<p align="right">
<font size="1"><b>6,554&nbsp;</b></font></p align="right">
</td>
<td width="12" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" >
<p align="right">
<font size="1">4,192&nbsp;</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" >
<p align="right">
<font size="1">6,585&nbsp;</font></p align="right">
</td>
<td width="9" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" >
<p align="right">
<font size="1">4,563&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision for doubtful
accounts</font></p>
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1"><b>563&nbsp;</b></font></p align="right">
</td>
<td width="12" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">168&nbsp;</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">25&nbsp;</font></p align="right">
</td>
<td width="9" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">105&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" >
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cumulative effect of
change in accounting principle</font></p>
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" >
<p align="right">
<font size="1"><b>21,812&nbsp;</b></font></p align="right">
</td>
<td width="12" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" >
<p align="right">
<font size="1">0&nbsp;</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" >
<p align="right">
<font size="1">0&nbsp;</font></p align="right">
</td>
<td width="9" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" >
<p align="right">
<font size="1">0&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Special charges and
other operating expenses, net</font></p>
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1"><b>0&nbsp;</b></font></p align="right">
</td>
<td width="12" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">1,794&nbsp;</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">0&nbsp;</font></p align="right">
</td>
<td width="9" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">


<font size="1">2,770&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" >
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) Loss on
disposals of property, plant, and equipment</font></p>
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" >
<p align="right">
<font size="1"><b>(4)</b></font></p align="right">
</td>
<td width="12" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" >
<p align="right">
<font size="1">(19)</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" >
<p align="right">
<font size="1">(5)</font></p align="right">
</td>
<td width="9" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" >
<p align="right">
<font size="1">(3)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax
(benefit) provision</font></p>
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1"><b>3,726&nbsp;</b></font></p align="right">
</td>
<td width="12" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">

<font size="1">3,476&nbsp;</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">(1,202)</font></p align="right">
</td>
<td width="9" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">(12,730)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" >
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Paid in kind
interest</font></p>
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" >
<p align="right">
<font size="1"><b>574&nbsp;</b></font></p align="right">
</td>
<td width="12" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" >
<p align="right">
<font size="1">0&nbsp;</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" >
<p align="right">
<font size="1">0&nbsp;</font></p align="right">
</td>
<td width="9" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" >
<p align="right">
<font size="1">0&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from tax
refunds</font></p>
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1"><b>9,046&nbsp;</b></font></p align="right">
</td>
<td width="12" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">0&nbsp;</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">0&nbsp;</font></p align="right">
</td>
<td width="9" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">0&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" >
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating
assets and liabilities:</font></p>
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="12" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="15" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="9" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts
receivable</font></p>
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1"><b>(1,742)</b></font></p align="right">
</td>
<td width="12" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">3,467&nbsp;</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">10,422&nbsp;</font></p align="right">
</td>
<td width="9" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">(8,329)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" >
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories</font></p>
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" >
<p align="right">
<font size="1"><b>5,286&nbsp;</b></font></p align="right">
</td>
<td width="12" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" >
<p align="right">
<font size="1">6,825&nbsp;</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" >
<p align="right">
<font size="1">9,189&nbsp;</font></p align="right">
</td>
<td width="9" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" >
<p align="right">
<font size="1">147&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="1">&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 width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1"><b>(102)</b></font></p align="right">
</td>
<td width="12" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">1,429&nbsp;</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">(1,052)</font></p align="right">
</td>
<td width="9" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">629&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" >
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets</font></p>
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" >
<p align="right">
<font size="1"><b>(33)</b></font></p align="right">
</td>
<td width="12" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" >
<p align="right">
<font size="1">158&nbsp;</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" >
<p align="right">
<font size="1">(1,716)</font></p align="right">
</td>
<td width="9" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" >
<p align="right">
<font size="1">(374)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts
payable</font></p>
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1"><b>637&nbsp;</b></font></p align="right">
</td>
<td width="12" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">(5,014)</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">572&nbsp;</font></p align="right">
</td>
<td width="9" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">6,090&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" >
<p>
<font size="1">&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 width="10" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1"><b>(2,446)</b></font></p>
</td>
<td width="12" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">(6,067)</font></p>
</td>
<td width="15" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">(2,335)</font></p>
</td>
<td width="9" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">10,677&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by
operating activities from<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;continuing operations</font></p>
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="81" bgcolor=#FFF3CE valign="bottom">
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1"><b>25,583&nbsp;</b></font></p>
</td>
<td width="12" bgcolor=#FFF3CE valign="bottom">
<font size="1">&nbsp;</font></td>
<td width="79" bgcolor=#FFF3CE valign="bottom">
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">12,286&nbsp;</font></p>
</td>
<td width="15" bgcolor=#FFF3CE valign="bottom">
<font size="1">&nbsp;</font></td>
<td width="61" bgcolor=#FFF3CE valign="bottom">
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">26,518</font></p>
</td>
<td width="9" bgcolor=#FFF3CE valign="bottom">
<font size="1">&nbsp;</font></td>
<td width="64" bgcolor=#FFF3CE valign="bottom">
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">6,748&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" >
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in)
provided by operating activities<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;from discontinued operations</font></p>
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="81" valign="bottom" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1"><b>(5,993)</b></font></p>
</td>
<td width="12" valign="bottom" >
<font size="1">&nbsp;</font></td>
<td width="79" valign="bottom" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">(2,480)</font></p>
</td>
<td width="15" valign="bottom" >
<font size="1">&nbsp;</font></td>
<td width="61" valign="bottom" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">(4,647)</font></p>
</td>
<td width="9" valign="bottom" >
<font size="1">&nbsp;</font></td>
<td width="64" valign="bottom" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">1,772&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided
operating activities</font></p>
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1"><b>19,590&nbsp;</b></font></p>
</td>
<td width="12" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">9,806&nbsp;</font></p>
</td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">21,871</font></p>
</td>
<td width="9" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">8,520&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" >
<p style="margin-top: 10">
<font size="1"><b>INVESTING ACTIVITIES:</b></font></p>
</td>
<td width="10" colspan="1" rowspan="1" >
<p style="margin-top: 10"><font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" >
<p style="margin-top: 10"><font size="1">&nbsp;</font></td>
<td width="12" colspan="1" rowspan="1" >
<p style="margin-top: 10"><font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" >
<p style="margin-top: 10"><font size="1">&nbsp;</font></td>
<td width="15" colspan="1" rowspan="1" >
<p style="margin-top: 10"><font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" >
<p style="margin-top: 10"><font size="1">&nbsp;</font></td>
<td width="9" colspan="1" rowspan="1" >
<p style="margin-top: 10"><font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" >
<p style="margin-top: 10"><font size="1">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of property, plant, and equipment</font></p>
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1"><b>(1,090)</b></font></p align="right">
</td>
<td width="12" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">(532)</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">(1,501)</font></p align="right">
</td>
<td width="9" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">(3,828)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" >
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of property, plant, and equipment</font></p>
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" >
<p align="right">
<font size="1"><b>52&nbsp;</b></font></p align="right">
</td>
<td width="12" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" >
<p align="right">
<font size="1">24&nbsp;</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" >
<p align="right">
<font size="1">91</font></p align="right">
</td>
<td width="9" colspan="1" rowspan="1" >
<font size="1">&nbsp; </font></td>
<td width="64" colspan="1" rowspan="1" >
<p align="right">
<font size="1">16&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments received on notes receivables</font></p>
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1"><b>142&nbsp;</b></font></p>
</td>
<td width="12" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">151&nbsp;</font></p>
</td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">314</font></p>
</td>
<td width="9" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">--&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" >
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities from continuing<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;operations</font></p>
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1"><b>(896)</b></font></p>
</td>
<td width="12" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">(357)</font></p>
</td>
<td width="15" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">(1,096)</font></p>
</td>
<td width="9" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">(3,812)</font></p>
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) investing activities<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;from
discontinued operations</font></p>
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1"><b>19,134&nbsp;</b></font></p>
</td>
<td width="12" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">192&nbsp;</font></p>
</td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">9,377</font></p>
</td>
<td width="9" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">(3,799)</font></p>
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" >
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) investing activities</font></p>
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1"><b>18,238&nbsp;</b></font></p>
</td>
<td width="12" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">(165)</font></p>
</td>
<td width="15" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">8,281</font></p>
</td>
<td width="9" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">(7,611)</font></p>
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p style="margin-top: 10">
<font size="1"><b>FINANCING ACTIVITIES:</b></font></p>
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p style="margin-top: 10"><font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p style="margin-top: 10"><font size="1">&nbsp;</font></td>
<td width="12" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p style="margin-top: 10"><font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p style="margin-top: 10"><font size="1">&nbsp;</font></td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p style="margin-top: 10"><font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p style="margin-top: 10"><font size="1">&nbsp;</font></td>
<td width="9" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p style="margin-top: 10"><font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p style="margin-top: 10"><font size="1">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" >
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (payments) borrowings under senior credit facility</font></p>
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" >
<p align="right">
<font size="1"><b>(1,310)</b></font></p align="right">
</td>
<td width="12" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" >
<p align="right">
<font size="1">25,885&nbsp;</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" >
<p align="right">
<font size="1">0</font></p align="right">
</td>
<td width="9" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" >
<p align="right">
<font size="1">0&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp; Borrowings under subordinated credit facility</font></p>
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1"><b>--&nbsp;</b></font></p align="right">
</td>
<td width="12" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">14,000</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">0</font></p align="right">
</td>
<td width="9" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">0&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" >
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net (payments) borrowings under former credit facility</font></p>
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" >
<p align="right">
<font size="1"><b>--&nbsp;</b></font></p align="right">
</td>
<td width="12" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" >
<p align="right">
<font size="1">(23,543)</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" >
<p align="right">
<font size="1">(15,298)</font></p align="right">
</td>
<td width="9" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" >
<p align="right">
<font size="1">(1,679)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp; Payments on long-term obligations</font></p>
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1"><b>(4,948)</b></font></p align="right">
</td>
<td width="12" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">(2,122)</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">(701)</font></p align="right">
</td>
<td width="9" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">(1,063)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" >
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrowings under long-term obligations</font></p>
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" >
<p align="right">
<font size="1"><b>78&nbsp;</b></font></p align="right">
</td>
<td width="12" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" >
<p align="right">
<font size="1">0&nbsp;</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" >
<p align="right">
<font size="1">0&nbsp;</font></p align="right">
</td>
<td width="9" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" >
<p align="right">
<font size="1">43&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additions to deferred financing costs</font></p>
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1"><b>(1,699)</b></font></p align="right">
</td>
<td width="12" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">(3,348)</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">0&nbsp;</font></p align="right">
</td>
<td width="9" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="1">0&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" >
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Termination of interest rate swap</font></p>
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" >
<p align="right">
<font size="1"><b>(239)</b></font></p align="right">
</td>
<td width="12" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" >
<p align="right">
<font size="1">0&nbsp;</font></p align="right">
</td>
<td width="15" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" >
<p align="right">
<font size="1">0&nbsp;</font></p align="right">
</td>
<td width="9" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" >
<p align="right">
<font size="1">0&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from exercise of stock options</font></p>
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1"><b>0&nbsp;</b></font></p>
</td>
<td width="12" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">0&nbsp;</font></p>
</td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">7&nbsp;</font></p>
</td>
<td width="9" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">100&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" >
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used in) provided by financing activities from<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;continuing operations</font></p>
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="81" valign="bottom" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1"><b>(8,118)</b></font></p>
</td>
<td width="12" valign="bottom" >
<font size="1">&nbsp;</font></td>
<td width="79" valign="bottom" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">10,872&nbsp;</font></p>
</td>
<td width="15" valign="bottom" >
<font size="1">&nbsp;</font></td>
<td width="61" valign="bottom" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">(15,992)</font></p>
</td>
<td width="9" valign="bottom" >
<font size="1">&nbsp;</font></td>
<td width="64" valign="bottom" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">(2,599)</font></p>
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities from discontinued<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;operations</font></p>
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="81" bgcolor=#FFF3CE valign="bottom">
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1"><b>(36,232)</b></font></p>
</td>
<td width="12" bgcolor=#FFF3CE valign="bottom">
<font size="1">&nbsp;</font></td>
<td width="79" bgcolor=#FFF3CE valign="bottom">
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">(17,132)</font></p>
</td>
<td width="15" bgcolor=#FFF3CE valign="bottom">
<font size="1">&nbsp;</font></td>
<td width="61" bgcolor=#FFF3CE valign="bottom">
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">(13,169)</font></p>
</td>
<td width="9" bgcolor=#FFF3CE valign="bottom">
<font size="1">&nbsp;</font></td>
<td width="64" bgcolor=#FFF3CE valign="bottom">
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">(1,452)</font></p>
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" >
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities</font></p>
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1"><b>(44,350)</b></font></p>
</td>
<td width="12" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">(6,260)</font></p>
</td>
<td width="15" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">(29,161)</font></p>
</td>
<td width="9" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">(4,051)</font></p>
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="1"><b>EFFECT OF EXCHANGE RATE CHANGES ON CASH AND&nbsp;TEMPORARY
INVESTMENTS</b></font></p>
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">
<br><b>508&nbsp;</b></font></p>
</td>
<td width="12" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">
<br>(145)</font></p>
</td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">
<br>(354)</font></p>
</td>
<td width="9" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">
<br>(199)</font></p>
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="12" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="15" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="9" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="1"><b>NET CHANGE IN CASH AND TEMPORARY INVESTMENTS</b></font></p>
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="81" bgcolor=#FFF3CE valign="bottom">
<p align="right">
<font size="1"><b>(6,014)</b></font></p align="right">
</td>
<td width="12" bgcolor=#FFF3CE valign="bottom">
<font size="1">&nbsp;</font></td>
<td width="79" bgcolor=#FFF3CE valign="bottom">
<p align="right">
<font size="1">3,236&nbsp;</font></p align="right">
</td>
<td width="15" bgcolor=#FFF3CE valign="bottom">
<font size="1">&nbsp;</font></td>
<td width="61" bgcolor=#FFF3CE valign="bottom">
<p align="right">
<font size="1">637&nbsp;</font></p align="right">
</td>
<td width="9" bgcolor=#FFF3CE valign="bottom">
<font size="1">&nbsp;</font></td>
<td width="64" bgcolor=#FFF3CE valign="bottom">
<p align="right">
<font size="1">(3,341)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" >
<p>
<font size="1"><b>CASH AND TEMPORARY INVESTMENTS, beginning of
period</b></font></p>
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="81" valign="bottom" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1"><b>9,863&nbsp;</b></font></p>
</td>
<td width="12" valign="bottom" >
<font size="1">&nbsp;</font></td>
<td width="79" valign="bottom" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">6,627&nbsp;</font></p>
</td>
<td width="15" valign="bottom" >
<font size="1">&nbsp;</font></td>
<td width="61" valign="bottom" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">5,990&nbsp;</font></p>
</td>
<td width="9" valign="bottom" >
<font size="1">&nbsp;</font></td>
<td width="64" valign="bottom" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">9,331&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="1"><b>CASH AND TEMPORARY INVESTMENTS-DISCONTINUED &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OPERATIONS, end of
period</b></font></p>
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">
<br><b>1,752&nbsp;</b></font></p>
</td>
<td width="12" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">
<br>0&nbsp;</font></p>
</td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">
<br>0&nbsp;</font></p>
</td>
<td width="9" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="1">
<br>0&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" >
<p>
<font size="1"><b>CASH AND TEMPORARY INVESTMENTS, end of period</b></font></p>
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="1"><b>$2,097&nbsp;</b></font></p>
</td>
<td width="12" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="1">$ 9,863&nbsp;</font></p>
</td>
<td width="15" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="1">$ 6,627&nbsp;</font></p>
</td>
<td width="9" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="1">$ 5,990&nbsp;</font></p>
</td>

</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="12" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="9" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" >
<p>
<font size="1"><b>SUPPLEMENTAL DISCLOSURE OF CASH FLOW

INFORMATION:</b></font></p>
</td>
<td width="10" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="12" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="15" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="9" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash payments for interest</font></p>
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="1"><b>$7,392</b></font></p>
</td>
<td width="12" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="1">$ 5,693&nbsp;</font></p>
</td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="1">$13,981&nbsp;</font></p>
</td>
<td width="9" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="1">$13,254&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="12" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="15" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="9" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash payments for income taxes</font></p>
</td>
<td width="10" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="1"><b>$&nbsp;&nbsp;&nbsp;581</b></font></p>
</td>
<td width="12" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="1">$&nbsp;&nbsp;&nbsp;383&nbsp;</font></p>
</td>
<td width="15" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="1">$&nbsp;&nbsp;&nbsp;&nbsp;690&nbsp;</font></p>
</td>
<td width="9" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="1">$&nbsp;&nbsp;&nbsp;&nbsp;2,094&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="361" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="10" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="81" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="12" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="79" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="15" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="9" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="637" colspan="9" rowspan="1" >
<p align="center">
<font size="1">The accompanying notes are an integral part of these consolidated
statements.</font></p>
</td>
</tr>
</table></div>
<p align="center">
<font face="Times New Roman" size="2">C-6<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p align="center">
<b><font size="2">MILLER INDUSTRIES, INC. AND SUBSIDIARIES</font></b><p align="center">
<b><font size="2">NOTES
TO CONSOLIDATED FINANCIAL STATEMENTS</font></b><p>
<b><font size="2">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ORGANIZATION AND NATURE OF OPERATIONS</font></b><p>
<font size="2">Miller Industries, Inc. and subsidiaries ("the Company") has historically been
an integrated provider of vehicle towing and recovery equipment. As further
described in Note 3, during the year ended December 31, 2002, the
Company&#8217;s management and board of directors made the decision to divest of
the remainder of its towing services segment, as well as the operations of the
distribution group of the towing and recovery equipment segment.  The principal
markets for the Company&#8217;s towing and recovery equipment are approximately
150 independent distributors and users of towing and recovery equipment located
primarily throughout the United States and other customers throughout the world.
The Company&#8217;s products are marketed under the brand names of Century,
Challenger, Holmes, Champion, Eagle, Jige, Boniface, Vulcan, and Chevron.</font></p><p>
<font size="2">The Company markets its towing and recovery services in the United States
through its wholly-owned subsidiary RoadOne, Inc.</font></p><p>
<b><font size="2">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GOING CONCERN</font></b><p>
<font size="2">The towing and recovery equipment manufacturing and towing services industries
are highly competitive. Certain competitors may have substantially greater
financial and other resources than the Company. These industries are also
subject to a number of external influences, such as general economic conditions,
interest rate levels, consumer confidence, and general credit availability.
Demand for the Company&#8217;s equipment has been negatively impacted by cost
pressures facing its customers.  Continuation of these pressures could impact
the Company&#8217;s ability to service its debt.</font></p><p>
<font size="2">The Company&#8217;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.  As more fully
described below, subsequent to December 31, 2002, the Company was in default of
certain covenants under its senior (&#8220;Senior Credit Facility&#8221;) and
subordinated (&#8220;Junior Credit Facility&#8221;) credit facility agreements,
and its subordinated credit facility matures on July 23, 2003.  The senior and

subordinated credit facility agreements contain certain cross-default provisions
and provide for acceleration of amounts due as well as other remedies in the
event of default.  These circumstances raise substantial doubt about the
Company&#8217;s ability to continue as a going concern. </font>  <p>
<font size="2">The Junior Credit Facility, under which $14.4 million
was outstanding December 31, 2002&nbsp; matures on July 23, 2003.  There is no assurance that the Company will
be able to repay or refinance the outstanding principal and interest under the
Junior Credit Facility on the maturity date thereof.  If the Company fails to
repay all outstanding principal, interest and any other amounts due and owing
under the Junior Credit Facility on the maturity date, such failure will
constitute an event of default under the Junior Credit Facility and will also
trigger an event of default under the Senior Credit Facility cross-default
provisions.  A total of $42.4 million (continuing and discontinuing operations)
was outstanding under the Senior Credit Facility at December 31, 2002.  In such
case, the junior lender agent would be prevented from taking any enforcement
action against the Company, its subsidiaries or their respective assets in
respect of such event of default until the earlier of: (i) the date which is 120
days (subject to extension to 270 days by notice from senior lender agent to
junior lender agent) after the date upon which the junior lender agent gives
notice of enforcement to the senior lender agent pursuant to the terms of the
Intercreditor Agreement; (ii) the acceleration of the maturity of the
obligations of the Company under the </font></p><p align="center">
<font face="Times New Roman" size="2">C-7<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<font size="2">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.  The resulting event of default under the Senior Credit
Facility if the Company does not repay all of the obligations under the Junior
Credit Facility could result in the acceleration of the amounts due under the
Senior Credit Facility as well as other remedies if not waived by the senior
lenders.  There is no assurance that the Company will be able to obtain such a
waiver from the senior lenders or a waiver from the junior lenders of any event
of default that would occur as a result of the failure by the Company to repay
or refinance the outstanding principal and interest under the Junior Credit
Facility on the maturity date.</font></p><p>
<font size="2">Subsequent to December 31, 2002, the Company was in default under certain
covenants under its Senior and Junior Credit Facility agreements.  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.
The Company&#8217;s bank facilities are collateralized by liens on all of the
Company&#8217;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>
<font size="2">On September 13, 2002, the Company entered into the Third Amendment to Credit
Agreement in connection with its Senior Credit Facility. Pursuant to the Third
Amendment, the amount of the mandatory periodic reductions in the RoadOne
revolving loan commitment amount, as established in the April 15, 2002 Second
Amendment to Senior Credit Agreement, were increased by amounts calculated based
on updated asset appraisals completed in September 2002. Consequently, the
Company will need to repay outstanding loans and permanently reduce the RoadOne
loan commitment under its Senior Credit Facility over the life of the loan and
prior to the maturity date. Pursuant to the terms of the Second and Third
Amendments, the failure by the Company to repay outstanding loans and to reduce
the RoadOne revolving loan commitment by the amounts and the times required
pursuant to these amendments will result in increased interest rates on the
senior loans and/or the occurrence of an event of default under the Senior
Credit Facility.</font></p><p>
<font size="2">In addition, pursuant to the Third Amendment, the amount of availability that
can be generated for used inventory considered as eligible inventory for
collateral purposes was limited to $4.3 million (subject to downward adjustments
upon certain sales of sales of assets and stock by the Company and certain of
its subsidiaries) through February 28, 2003 and reduced to $0 thereafter. The
Sixth Amendment (discussed below 2003 Amendments) lowered the $4.3 million limit
and eliminated the further requirement for reduction to $0 after February 28,
2003.</font></p><p>
<font size="2">On November 14, 2002, the Company entered into the Fourth Amendment to the
Senior Credit Facility, which granted waivers from the senior lenders of
violations of certain financial covenants for the quarter ended September 2002.
There were no violations under the Junior Credit Facility. The Amendment also
reduced the level of certain financial covenants for future periods, basing them
strictly on the results of the towing and recovery equipment segment for those
periods. In addition, the amendment revised the Road One revolving commitment
amount based on the plan to sell all remaining towing service operations,
reducing the commitment amount to $15.0 million at November 30, 2002, $12.0
million at December 31, 2002, $9.0 million at January 31, 2003, $6.0 million at
February 28, 2003 and reducing to zero as of March 31, 2003. </font> <p>
<font size="2">On February 28, 2003, the Company entered into the Fifth Amendment to the Senior
Credit Facility. Pursuant to the Fifth Amendment, the date upon which the amount
of certain used inventory taken in trade for collateral purposes is reduced to
$-0- was extended from February 28, 2003 to March 31, 2003. </font></p><p align="center">
<font face="Times New Roman" size="2">C-8<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<font size="2">In addition, the Fifth Amendment revised the RoadOne revolving commitment
reducing the amount to $9.0 million at February 28, 2003 and $-0- as of March
31, 2003. </font> <p>
<font size="2">On April 1, 2003, the Company entered into the Sixth Amendment to the Senior
Credit Facility.  The Sixth Amendment among other things, revised the RoadOne
revolving commitment, extending the time by one year for the reduction thereof to $9.0
million from March 31, 2003 to March 31, 2004 and extending the time for
reduction to $-0- from March 31, 2003 to March 31, 2004.  The amount of
availability that can be generated for used inventory considered as eligible
inventory for collateral purposes was reduced to $2.7 million with no further
required reductions. </font>  <p>
<font size="2">Meeting the new repayment schedule will require that the Company sell its
remaining towing services businesses according to its contemplated schedule on
acceptable terms. While the Company believes its timetable for sales is
achievable, there can be no assurance that the schedule can be met. Failure to
achieve the Company&#8217;s timetable for such sales or cash flow projections
could result in failure to comply with the amended debt service requirements.
Such non-compliance would result in additional events of default, which if not waived by
the lending groups, would result in the acceleration of the amounts due under
the credit facility as well as other remedies. In such case, the Company would
seek to refinance the remaining balances, but there is no assurance that the
Company would be able to obtain any such refinancing. If the Company were unable
to refinance the credit facility on acceptable terms or find an alternative
source of repayment for the credit facility, the Company&#8217;s business and
financial condition would be materially and adversely affected.</font></p><p>
<font size="2">Prior to making the determination to sell all of its remaining towing services
operations, the Company had focused on cost reduction and expense control, as
well as other opportunities for improving operating cash flows to improve
liquidity. The Company had also disposed of certain underperforming RoadOne

assets and operations in order to improve liquidity and to reduce expenses and
debt. As described in Note 3, in October 2002, the Company decided to sell all
remaining towing services operations.  During 2002, the Company sold 29 towing
services markets for proceeds of $23.5 million, which have been used to reduce
the RoadOne revolver.  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.  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.
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.
Although the Company believes that it can manage the wind down effectively,
there can be no assurance that such will be the case.  Even if the Company is
able to manage the wind down effectively, it may nevertheless have an adverse
impact on the Company&#8217;s results of operations.</font></p><p>
<font size="2">In addition, the Company has experienced difficulty in maintaining its insurance
and surety bond coverage primarily as a result of disruption in these markets
resulting from the events of September 11<sup>th</sup>, 2001, general economic
conditions and the Company&#8217;s operating results.  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>
<font size="2">The Company received a tax refund of approximately $4.2 million during the
quarter ended June 30, 2002, which was used to reduce the RoadOne revolver and
cured the over-advance position that existed at that time.  An additional tax
refund of $4.6 million was received during the quarter ended September 30, 2002,
with proceeds used to further reduce the borrowings under the RoadOne revolver.
</font></p><p align="center">
<font face="Times New Roman" size="2">C-9<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<font size="2">All of these efforts have resulted in approximately $28.1 million in reductions
to the RoadOne revolver since December 31, 2001. Additionally, the towing and
recovery equipment revolver and the term loan have been reduced $10.9 million
and $4.1 million, respectively, during the current fiscal year.</font></p><p>
<font size="2">The consolidated financial statements do not include any adjustments that might
result from the resolution of these matters.</font></p><p>
<b><font size="2">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DISCONTINUED OPERATIONS</font></b><p>
<font size="2">During the fourth quarter of the year ended December 31, 2002, the
Company&#8217;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. </font>  <p>
<font size="2">During the year ended December 31, 2002, the Company disposed of assets in 29
underperforming towing service markets, as well as assets in other markets of
its towing services segment.  Total proceeds from the sales were $23.5 million
which included $22.7 million in cash and $0.8 million in notes receivable.
Losses on the sales of discontinued operations were $5.1 million.  Subsequent to
year end, the Company entered into agreements for the sale of four towing
service markets and certain other assets with proceeds of approximately $1.6
million. </font>  <p>
<font size="2">At December 31, 2002, the Company had entered into agreements for the
disposition of three of the nine locations of the distribution group.
Subsequent to year end, the Company sold one distributor location with total
proceeds of approximately $1.9 million in cash and $0.8 million subordinated
notes receivable.</font></p><p>
<font size="2">In accordance with SFAS No. 144, &#8220;Accounting for the Impairment or
Disposal of Long-Lived Assets&#8221;, the assets for the towing services segment
and the distribution group are considered a &#8220;disposal group&#8221; and 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 at December 31, 2002.  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.  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>
<font size="2">The operating results for the discontinued operations of the towing services
segment and the distributor group for the year ended December 31, 2002, the
eight months ended December 31, 2001, and the years ended April 30, 2001 and
2000 were as follows (in thousands):</font></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="147.999963" bgcolor=#FFF3CE valign="bottom">
<font size="1">&nbsp;</font></td>
<td width="139.999965" colspan="6" bgcolor=#FFF3CE valign="bottom">
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="1">Year Ended December 31, 2002</font></p>
</td>
<td width="18.666662" bgcolor=#FFF3CE valign="bottom">
<font size="1">&nbsp;</font></td>
<td width="141.333298" colspan="6" bgcolor=#FFF3CE valign="bottom">
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="1">Eight Months Ended<br>December 31,
2001</font></p>
</td>
<td width="14.666663" bgcolor=#FFF3CE valign="bottom">
<font size="1">&nbsp;</font></td>
<td width="141.333298" colspan="6" bgcolor=#FFF3CE valign="bottom">
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="1">Year Ended April 30, 2001</font></p>
</td>
<td width="14.666663" bgcolor=#FFF3CE valign="bottom">
<font size="1">&nbsp;</font></td>
<td width="147.999963" colspan="6" bgcolor=#FFF3CE valign="bottom">
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="1">Year Ended April 30, 2000</font></p>
</td>
</tr>
<tr valign="top">
<td width="147.999963" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="45.333322" colspan="2" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="1">Dist.</font></p>
</td>
<td width="50.666654" colspan="2" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="1">Towing</font></p>
</td>
<td width="42.666656" colspan="2" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="1">Total</font></p>
</td>
<td width="18.666662" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="50.666654" colspan="2" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="1">Dist.</font></p>
</td>
<td width="47.999988" colspan="2" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="1">Towing</font></p>
</td>
<td width="42.666656" colspan="2" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="1">Total</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="50.666654" colspan="2" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="1">Dist.</font></p>
</td>
<td width="47.999988" colspan="2" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="1">Towing</font></p>
</td>
<td width="42.666656" colspan="2" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="1">Total</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td width="57.333319" colspan="2" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="1">Dist.</font></p>
</td>
<td width="47.999988" colspan="2" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="1">Towing</font></p>
</td>
<td width="42.666656" colspan="2" rowspan="1" >
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="1">Total</font></p>
</td>
</tr>
<tr valign="top">
<td width="147.999963" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="45.333322" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="50.666654" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="42.666656" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="18.666662" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp; </font></td>
<td width="50.666654" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="47.999988" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="42.666656" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp; </font></td>
<td width="50.666654" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="47.999988" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="42.666656" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp; </font></td>
<td width="57.333319" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="47.999988" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="42.666656" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="147.999963" colspan="1" rowspan="1" >
<p>
<font size="1">Net Sales</font></p>
</td>
<td rowspan="1" >
<p align="center">
<font size="1">$&nbsp;</font></p align="right">
</td>
<td rowspan="1" >
<p align="right">
<font size="1">85,353&nbsp;</font></td>
<td rowspan="1" >
<p align="center">
<font size="1">$&nbsp;</font></p align="right">
</td>
<td rowspan="1" >
<p align="right">
<font size="1">121,569&nbsp;</font></td>
<td rowspan="1" >
<font size="1">$</font></td>
<td rowspan="1" >
<p align="right">
<font size="1">206,922&nbsp;</font></p align="right">
</td>
<td colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td rowspan="1" >
<p align="center"><font size="1">$</font></td>
<td rowspan="1" >
<p align="right">
<font size="1">60,555&nbsp;</font></p align="right">
</td>
<td rowspan="1" >
<p align="center"><font size="1">$</font></td>
<td rowspan="1" >
<p align="right">
<font size="1">100,953&nbsp;</font></p align="right">
</td>
<td rowspan="1" >
<p align="center">
<font size="1">$</font></p align="right">
</td>
<td rowspan="1" >
<font size="1">161,508&nbsp;</font></td>
<td colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td rowspan="1" >
<p align="center"><font size="1">$</font></td>
<td rowspan="1" >
<p align="right">
<font size="1">100,322&nbsp;</font></p align="right">
</td>
<td rowspan="1" >
<p align="center"><font size="1">$</font></td>
<td rowspan="1" >
<p align="right">
<font size="1">182,255&nbsp;</font></p align="right">
</td>
<td rowspan="1" >
<p align="center"><font size="1">$</font></td>
<td rowspan="1" >
<p align="right">
<font size="1">282,577&nbsp;</font></p align="right">
</td>
<td colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td rowspan="1" >
<p align="center"><font size="1">$</font></td>
<td rowspan="1" >
<p align="right">
<font size="1">112,280&nbsp;</font></p align="right">
</td>
<td rowspan="1" >
<p align="center"><font size="1">$</font></td>
<td rowspan="1" >
<p align="right">
<font size="1">207,942&nbsp;</font></p align="right">
</td>
<td rowspan="1" >
<p align="center"><font size="1">$</font></td>
<td rowspan="1" >
<p align="right">
<font size="1">320,222&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="147.999963" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="45.333322" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp; </font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp; </font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp; </font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="147.999963" colspan="1" rowspan="1" >
<p>
<font size="1">Operating income (loss)</font></p>
</td>
<td width="45.333322" colspan="2" rowspan="1" >
<p align="right">
<font size="1">(982)</font></p align="right">
</td>
<td colspan="2" rowspan="1" >
<p align="right">
<font size="1">(1,930)</font></p align="right">
</td>
<td colspan="2" rowspan="1" >
<p align="right">
<font size="1">(2,912)</font></p align="right">
</td>
<td colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" >
<p align="right">
<font size="1">(2,171)</font></p align="right">
</td>
<td colspan="2" rowspan="1" >
<p align="right">
<font size="1">(15,600)</font></p align="right">
</td>
<td colspan="2" rowspan="1" >
<p align="right">
<font size="1">(17,771)</font></p align="right">
</td>
<td colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" >
<p align="right">
<font size="1">366</font></p align="right">
</td>
<td colspan="2" rowspan="1" >
<p align="right">
<font size="1">(3,944)</font></p align="right">
</td>
<td colspan="2" rowspan="1" >
<p align="right">
<font size="1">(3,578)</font></p align="right">
</td>
<td colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" >
<p align="right">
<font size="1">(5,439)</font></p align="right">
</td>
<td colspan="2" rowspan="1" >
<p align="right">
<font size="1">(82,727)</font></p align="right">
</td>
<td colspan="2" rowspan="1" >
<p align="right">
<font size="1">(88,166)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="147.999963" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="45.333322" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp; </font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp; </font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp; </font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="147.999963" colspan="1" rowspan="1" >
<p>
<font size="1">Net loss before taxes</font></p>
</td>
<td width="45.333322" colspan="2" rowspan="1" >
<p align="right">
<font size="1">(6,619)</font></p align="right">
</td>
<td colspan="2" rowspan="1" >
<p align="right">
<font size="1">(19,527)</font></p align="right">
</td>
<td colspan="2" rowspan="1" >
<p align="right">
<font size="1">(26,146)</font></p align="right">
</td>
<td colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" >
<p align="right">
<font size="1">(5,036)</font></p align="right">
</td>
<td colspan="2" rowspan="1" >
<p align="right">
<font size="1">(19,005)</font></p align="right">
</td>
<td colspan="2" rowspan="1" >
<p align="right">
<font size="1">(24,041)</font></p align="right">
</td>
<td colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" >
<p align="right">
<font size="1">(6,749)</font></p align="right">
</td>
<td colspan="2" rowspan="1" >
<p align="right">
<font size="1">(11,427)</font></p align="right">
</td>
<td colspan="2" rowspan="1" >
<p align="right">
<font size="1">(18,176)</font></p align="right">
</td>
<td colspan="1" rowspan="1" >
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" >
<p align="right">
<font size="1">(7,223)</font></p align="right">
</td>
<td colspan="2" rowspan="1" >
<p align="right">
<font size="1">(88,936)</font></p align="right">
</td>
<td colspan="2" rowspan="1" >
<p align="right">
<font size="1">(96,159)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="147.999963" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td width="45.333322" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp; </font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp; </font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp; </font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
<td colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="1">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="147.999963" colspan="1" rowspan="1" >
<p>
<font size="1">Loss from discontinued<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; operations</font></p>
</td>
<td width="45.333322" valign="bottom" colspan="2" >
<p align="right">
<font size="1">(7,179)</font></p align="right">
</td>
<td valign="bottom" colspan="2" >
<p align="right">
<font size="1">(20,227)</font></p align="right">
</td>
<td valign="bottom" colspan="2" >
<p align="right">
<font size="1">(27,406)</font></p align="right">
</td>
<td valign="bottom" >
<font size="1">&nbsp;</font></td>
<td valign="bottom" colspan="2" >
<p align="right">
<font size="1">(5,074)</font></p align="right">
</td>
<td valign="bottom" colspan="2" >
<p align="right">
<font size="1">(18,390)</font></p align="right">
</td>
<td valign="bottom" colspan="2" >
<p align="right">
<font size="1">(23,464)</font></p align="right">
</td>
<td valign="bottom" >
<font size="1">&nbsp;</font></td>
<td valign="bottom" colspan="2" >
<p align="right">
<font size="1">(6,749)</font></p align="right">
</td>
<td valign="bottom" colspan="2" >
<p align="right">
<font size="1">(5,720)</font></p align="right">
</td>
<td valign="bottom" colspan="2" >
<p align="right">
<font size="1">(12,469)</font></p align="right">
</td>
<td valign="bottom" >
<font size="1">&nbsp;</font></td>
<td valign="bottom" colspan="2" >
<p align="right">
<font size="1">(7,223)</font></p align="right">
</td>
<td valign="bottom" colspan="2" >
<p align="right">
<font size="1">(69,123)</font></p align="right">
</td>
<td valign="bottom" colspan="2" >
<p align="right">
<font size="1">(76,346)</font></p align="right">
</td>
</tr>
</table></div>
<p align="center">
<font face="Times New Roman" size="2">C-10<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<font size="2">The following assets and liabilities are reclassified as held for sale at
December 31, 2002 (in thousands):</font></p>
<div align="center">
  <table border=0 cellpadding=0 cellspacing =0 style="border-collapse: collapse" bordercolor="#111111" width="573" >
<tr valign="top">
<td width="302" colspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="271" colspan="10" bgcolor=#FFF3CE style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2">Year Ended December 31, 2002</font></td>
</tr>
<tr valign="top">
<td width="302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="73" colspan="3" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="center">
<font size="2">Dist.</font></p align="center">
</td>
<td width="33" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<font size="2">&nbsp;</font></td>
<td width="73" colspan="3" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="center">
<font size="2">Towing</font></p align="center">
</td>
<td width="33" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<font size="2">&nbsp;</font></td>
<td width="59" colspan="2" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="center">
<font size="2">Total</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="302" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="73" colspan="3" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<font size="2">&nbsp;</font></td>
<td width="33" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<font size="2">&nbsp;</font></td>
<td width="73" colspan="3" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<font size="2">&nbsp;</font></td>
<td width="33" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<font size="2">&nbsp;</font></td>
<td width="59" colspan="2" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Cash and temporary investments</font></p>
</td>
<td width="17" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="left">
<font size="2">$</font></p align="right">
</td>
<td width="52" colspan="2" bgcolor=#FFF3CE>
<p align="right">
<font size="2">1,443</font></p align="right">
</td>
<td width="33" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="12" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="left">
<font size="2">$</font></p align="right">
</td>
<td width="61" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">309</font></p align="right">
</td>
<td width="33" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td bgcolor=#FFF3CE>
<p align="left">
<font size="2">$</font></p align="right">
</td>
<td bgcolor=#FFF3CE>
<p align="right">
<font size="2">1,752</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="302" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="73" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="33" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="73" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="33" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="59" colspan="2" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Accounts receivable, net</font></p>
</td>
<td width="73" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">2,604</font></p align="right">
</td>
<td width="33" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td colspan="3" rowspan="1" bgcolor=#FFF3CE width="73">
<p align="right">
<font size="2">4,894</font></p align="right">
</td>
<td width="33" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="59" colspan="2" bgcolor=#FFF3CE>
<p align="right">
<font size="2">7,498</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="302" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="73" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="33" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td colspan="3" rowspan="1" width="73" >
<font size="2">&nbsp;</font></td>
<td width="33" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="59" colspan="2" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Inventories</font></p>
</td>
<td width="73" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">19,559</font></p align="right">
</td>
<td width="33" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td colspan="3" rowspan="1" bgcolor=#FFF3CE width="73">
<p align="right">
<font size="2">--</font></p align="right">

</td>
<td width="33" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="59" colspan="2" bgcolor=#FFF3CE>
<p align="right">
<font size="2">19,559</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="302" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="73" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="33" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td colspan="3" rowspan="1" width="73" >
<font size="2">&nbsp;</font></td>
<td width="33" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="59" colspan="2" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Prepaid expenses and other<br>
current assets</font></p>
</td>
<td width="73" colspan="3" bgcolor=#FFF3CE valign="bottom">
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">170</font></p>
</td>
<td width="33" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td colspan="3" bgcolor=#FFF3CE valign="bottom" width="73">
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">3,387</font></p>
</td>
<td width="33" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="59" colspan="2" bgcolor=#FFF3CE valign="bottom">
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">3,557</font></p>
</td>
</tr>
<tr valign="top">
<td width="302" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="73" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="33" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td colspan="3" rowspan="1" width="73" >
<font size="2">&nbsp;</font></td>
<td width="33" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="59" colspan="2" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Current assets of discontinued<br>
operations held for sale</font></p>
</td>
<td width="73" colspan="3" bgcolor=#FFF3CE valign="bottom">
<p align="right" style="border-bottom:double">

<font size="2">23,776</font></p>
</td>
<td width="33" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td colspan="3" bgcolor=#FFF3CE valign="bottom" width="73">
<p align="right" style="border-bottom:double">
<font size="2">8,590</font></p>
</td>
<td width="33" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="59" colspan="2" bgcolor=#FFF3CE valign="bottom">
<p align="right" style="border-bottom:double">
<font size="2">32,366</font></p>
</td>
</tr>
<tr valign="top">
<td width="302" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="73" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="33" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td colspan="3" rowspan="1" width="73" >
<font size="2">&nbsp;</font></td>
<td width="33" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="59" colspan="2" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Property, plant and equipment</font></p>
</td>
<td width="73" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">--</font></p align="right">
</td>
<td width="33" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td colspan="3" rowspan="1" bgcolor=#FFF3CE width="73">
<p align="right">
<font size="2">13,368</font></p align="right">
</td>
<td width="33" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="59" colspan="2" bgcolor=#FFF3CE>
<p align="right">
<font size="2">13,368</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="302" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="73" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="33" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td colspan="3" rowspan="1" width="73" >
<font size="2">&nbsp;</font></td>
<td width="33" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="59" colspan="2" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Other long-term assets</font></p>
</td>
<td width="73" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> --</font></p>
</td>
<td width="33" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td colspan="3" rowspan="1" bgcolor=#FFF3CE width="73">
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">2,049</font></p>
</td>
<td width="33" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="59" colspan="2" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">2,049</font></p>
</td>
</tr>
<tr valign="top">
<td width="302" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="73" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="33" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td colspan="3" rowspan="1" width="73" >
<font size="2">&nbsp;</font></td>
<td width="33" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="59" colspan="2" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Noncurrent assets of<br>
discontinued operations held<br>
for sale</font></p>
</td>
<td width="73" colspan="3" bgcolor=#FFF3CE valign="bottom">
<p align="right" style="border-bottom:double">
<font size="2">--</font></p>
</td>
<td width="33" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td colspan="3" bgcolor=#FFF3CE valign="bottom" width="73">
<p align="right" style="border-bottom:double">
<font size="2">15,417</font></p>
</td>
<td width="33" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="59" colspan="2" bgcolor=#FFF3CE valign="bottom">
<p align="right" style="border-bottom:double">
<font size="2">15,417</font></p>
</td>
</tr>
<tr valign="top">
<td width="302" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="73" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="33" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td colspan="3" rowspan="1" width="73" >
<font size="2">&nbsp;</font></td>
<td width="33" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="59" colspan="2" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Current portion of long-term debt</font></p>
</td>
<td width="73" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">12,632</font></p align="right">
</td>
<td width="33" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td colspan="3" rowspan="1" bgcolor=#FFF3CE width="73">
<p align="right">
<font size="2">11,484</font></p align="right">
</td>
<td width="33" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="59" colspan="2" bgcolor=#FFF3CE>
<p align="right">
<font size="2">24,116</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="302" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="73" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="33" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td colspan="3" rowspan="1" width="73" >
<font size="2">&nbsp;</font></td>
<td width="33" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="59" colspan="2" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Accounts payable</font></p>
</td>
<td width="73" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">5,710</font></p align="right">
</td>
<td width="33" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td colspan="3" rowspan="1" bgcolor=#FFF3CE width="73">
<p align="right">
<font size="2">7,841</font></p align="right">
</td>
<td width="33" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="59" colspan="2" bgcolor=#FFF3CE>
<p align="right">
<font size="2">13,551</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="302" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="73" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="33" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td colspan="3" rowspan="1" width="73" >
<font size="2">&nbsp;</font></td>

<td width="33" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="59" colspan="2" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Accrued liabilities and other</font></p>
</td>
<td width="73" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">4,169</font></p>
</td>
<td width="33" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td colspan="3" rowspan="1" bgcolor=#FFF3CE width="73">
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">11,376</font></p>
</td>
<td width="33" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="59" colspan="2" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">15,545</font></p>
</td>
</tr>
<tr valign="top">
<td width="302" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="73" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="33" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td colspan="3" rowspan="1" width="73" >
<font size="2">&nbsp;</font></td>
<td width="33" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="59" colspan="2" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Current liabilities of<br>
discontinued operations held<br>
for sale</font></p>
</td>
<td width="73" colspan="3" bgcolor=#FFF3CE valign="bottom">
<p align="right" style="border-bottom:double">
<font size="2">22,511</font></p>
</td>
<td width="33" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td colspan="3" bgcolor=#FFF3CE valign="bottom" width="73">
<p align="right" style="border-bottom:double">
<font size="2">30,701</font></p>
</td>
<td width="33" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="59" colspan="2" bgcolor=#FFF3CE valign="bottom">
<p align="right" style="border-bottom:double">
<font size="2">53,212</font></p>
</td>
</tr>
<tr valign="top">
<td width="302" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="73" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="33" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td colspan="3" rowspan="1" width="73" >
<font size="2">&nbsp;</font></td>
<td width="33" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="59" colspan="2" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Long-term debt</font></p>
</td>
<td width="73" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">0</font></p>
</td>
<td width="33" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td colspan="3" rowspan="1" bgcolor=#FFF3CE width="73">
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">1,450</font></p>
</td>
<td width="33" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="59" colspan="2" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">1,450</font></p>
</td>
</tr>
<tr valign="top">
<td width="302" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="73" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="33" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td colspan="3" rowspan="1" width="73" >
<font size="2">&nbsp;</font></td>
<td width="33" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="59" colspan="2" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Noncurrent liabilities of<br>
discontinued operations held<br>
for sale</font></p>
</td>
<td colspan="2" bgcolor=#FFF3CE valign="bottom">
<p align="left" style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="52" bgcolor=#FFF3CE valign="bottom">
<p align="right" style="border-bottom:double">
<font size="2">0</font></p>
</td>
<td bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td colspan="2" bgcolor=#FFF3CE valign="bottom">
<p align="left" style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td bgcolor=#FFF3CE valign="bottom">
<p align="right" style="border-bottom:double">
<font size="2">1,450</font></p>
</td>
<td bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td bgcolor=#FFF3CE valign="bottom">
<p align="left" style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="40" bgcolor=#FFF3CE valign="bottom">
<p align="right" style="border-bottom:double">
<font size="2">1,450</font></p>
</td>
</tr>
</table></div>
<p align="center">
<font face="Times New Roman" size="2">C-11<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<font size="2">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</font></p><p>
<b><font size="2">Use of Estimates in the Preparation of Financial Statements</font></b><p>
<font size="2">The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.</font></p><p>
<b><font size="2">Consolidation</font></b><p>
<font size="2">The accompanying consolidated financial statements include the accounts of
Miller Industries, Inc. and its subsidiaries. All significant intercompany
transactions and balances have been eliminated.</font></p><p>
<b><font size="2">Cash and Temporary Investments</font></b><p>
<font size="2">Cash and temporary investments include all cash and cash equivalent investments
with original maturities of three months or less, primarily consisting of
overnight repurchase agreements.</font></p><p>
<b><font size="2">Fair Value of Financial Instruments</font></b><p>
<font size="2">The carrying values of cash and temporary investments, accounts receivable,
accounts payable, and accrued liabilities are reasonable estimates of their fair
values because of the short maturity of these financial instruments. The
carrying values of long-term obligations are reasonable estimates of their fair
values based on the rates available for obligations with similar terms and
maturities.</font></p><p>
<b><font size="2">Inventories</font></b><p>
<font size="2">Inventory costs include materials, labor, and factory overhead. Inventories are
stated at the lower of cost or market, determined on a first-in, first-out
basis. Inventories for continuing operations at December 31, 2002 and
consolidated operations at December 31, 2001, and April 30, 2001 consisted of
the following (in thousands):</font></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="219.999945" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="122.666636" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">December 31, 2002</font></p>
</td>
<td width="22.666661" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="131.999967" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">December 31, 2001</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="118.666637" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">April 30, 2001</font></p>
</td>
</tr>
<tr valign="top">
<td width="219.999945" colspan="1" rowspan="1" >
<p>
<font size="2">Chassis</font></p>
</td>
<td width="19.999995" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="102.666641" colspan="1" rowspan="1" >
<p align="right">
<font size="2">1,316&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="22.666661" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td colspan="2" rowspan="1" >
<p align="right">
<font size="2">8,157&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="94.666643" colspan="1" rowspan="1" >
<p align="right">
<font size="2">8,650&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="219.999945" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Raw materials</font></p>
</td>
<td width="122.666636" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">10,993&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="22.666661" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">12,187&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="118.666637" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">14,133&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="219.999945" colspan="1" rowspan="1" >
<p>
<font size="2">Work in process</font></p>
</td>
<td width="122.666636" colspan="2" rowspan="1" >
<p align="right">
<font size="2">7,746&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="22.666661" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td colspan="3" rowspan="1" >
<p align="right">
<font size="2">9,614&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="118.666637" colspan="2" rowspan="1" >
<p align="right">
<font size="2">10,544&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="219.999945" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Finished goods</font></p>
</td>
<td width="122.666636" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">7,760&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="22.666661" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">30,156&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="118.666637" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">34,508&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="219.999945" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="19.999995" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="102.666641" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">27,815&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="22.666661" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="33.333325" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">60,114&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="23.999994" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="94.666643" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">67,835&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
<b><font size="2">Property, Plant, and Equipment</font></b><p>
<font size="2">Property, plant, and equipment are recorded at cost. Depreciation for financial
reporting purposes is provided using the straight-line method over the estimated
useful lives of the assets. Accelerated depreciation methods are used for income
tax reporting purposes. Estimated useful lives range from 20 to 30 years for
buildings and improvements and 5 to 10 years for machinery and equipment,
furniture and fixtures, and software costs. Expenditures for routine maintenance
and repairs are charged to expense as incurred. Expenditures related to major
overhauls and refurbishments of towing services equipment that extend the
related useful lives are capitalized. Internal labor is used in certain capital
projects.</font></p><p align="center">
<font face="Times New Roman" size="2">C-12<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<font size="2">Property, plant, and equipment for continuing operations at December 31, 2002
and consolidated operations at December 31, 2001, and April 30, 2001 consisted
of the following (in thousands):</font></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="211.999947" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="125.333302" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">December 31, 2002</font></p>
</td>
<td width="26.666660" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="130.666634" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">December 31, 2001</font></p>
</td>
<td width="27.999993" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="109.333306" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">April 30, 2001</font></p>
</td>
</tr>
<tr valign="top">
<td width="211.999947" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="125.333302" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="26.666660" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="130.666634" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="27.999993" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="109.333306" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="211.999947" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Land</font></p>

</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="105.333307" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">1,734&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="26.666660" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="33.333325" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">3,858&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="27.999993" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">4,052&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="211.999947" colspan="1" rowspan="1" >
<p>
<font size="2">Buildings and improvements</font></p>
</td>
<td width="125.333302" colspan="2" rowspan="1" >
<p align="right">
<font size="2">18,696&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="26.666660" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="130.666634" colspan="2" rowspan="1" >
<p align="right">
<font size="2">19,672&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="27.999993" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="109.333306" colspan="2" rowspan="1" >
<p align="right">
<font size="2">22,444&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="211.999947" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Machinery and equipment</font></p>
</td>
<td width="125.333302" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">11,046&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="26.666660" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="130.666634" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">58,633&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="27.999993" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="109.333306" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">58,256&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="211.999947" colspan="1" rowspan="1" >
<p>
<font size="2">Furniture and fixtures</font></p>
</td>
<td width="125.333302" colspan="2" rowspan="1" >
<p align="right">
<font size="2">5,416&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="26.666660" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="130.666634" colspan="2" rowspan="1" >
<p align="right">
<font size="2">9,336&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="27.999993" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="109.333306" colspan="2" rowspan="1" >
<p align="right">
<font size="2">9,724&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="211.999947" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Software costs</font></p>
</td>
<td width="125.333302" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">5,598&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="26.666660" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="130.666634" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">5,041&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="27.999993" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="109.333306" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">4,707&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="211.999947" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="125.333302" colspan="2" rowspan="1" >
<p align="right">
<font size="2">42,490&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="26.666660" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="130.666634" colspan="2" rowspan="1" >
<p align="right">
<font size="2">96,540&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="27.999993" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="109.333306" colspan="2" rowspan="1" >
<p align="right">
<font size="2">99,183&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="211.999947" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Less accumulated depreciation</font></p>
</td>
<td width="125.333302" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(19,369)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="26.666660" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="130.666634" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(43,418)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="27.999993" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="109.333306" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(40,619)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="211.999947" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="19.999995" colspan="1" rowspan="1" >


<p align="right" style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="105.333307" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">23,121&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="26.666660" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="33.333325" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="97.333309" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">53,122&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="27.999993" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="13.333330" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">58,564&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
<font size="2">The Company recognized $3,566,000, $2,496,000, $3,864,000 and $3,209,000 in
depreciation expense for continuing operations for the year ended December 31,
2002, the eight months ended December 31, 2001 and the fiscal years ended April
30, 2001, and 2000, respectively.  Depreciation expense for discontinued
operations was $2,822,000, $3,530,000, $5,820,000 and $10,689,000 for the year
ended December 31, 2002, the eight months ended December 31, 2001, and the
fiscal years ended April 30, 2001 and 2000, and is included in the loss from
discontinued operations in the consolidated statement of operations. </font>  <p>
<font size="2">The Company capitalizes costs related to software development in accordance with
established criteria, and amortizes those costs to expense on a straight-line
basis over five years. System development costs not meeting proper criteria for
capitalization are expensed as incurred.</font></p><p>
<b><font size="2">Net Income (Loss) Per Share</font></b><p>
<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. Diluted net income
(loss) per share is calculated by dividing net income (loss) by the weighted
average number of common and potential dilutive common shares outstanding.
Diluted net income per share takes into consideration the assumed exercise of
outstanding stock options resulting in approximately 7,000, 4,000, 9,000 and
87,000 potential dilutive common shares for the year ended December 31, 2002,
the eight months ended December 31, 2001, and the years ended April 30, 2001 and
2000, respectively.</font></p><p>
<font size="2">On October 1, 2001, the Company effected a one-for-five reverse common stock
split. All historical and per share amounts have been retroactively restated to
reflect the reverse common stock split.</font></p><p>
<b><font size="2">Goodwill and Long-Lived Assets</font></b><p>
<font size="2">Goodwill is accounted for in accordance with SFAS No. 141 "Business
Combinations" and SFAS No. 142 "Goodwill and Other Intangible Assets". Upon
adoption of these standards in January 2002, the Company ceased to amortize
goodwill (see Note 7 for further discussion).</font></p><p>
<font size="2">In accordance with SFAS No. 144, &#8220;Accounting for the Impairment of
Long-Lived Assets&#8221;, management evaluates the carrying value of long-lived
assets when significant adverse changes in economic value of these assets
requires an analysis, including property and equipment and other intangible
assets.  With the adoption of SFAS No. 144, in January 2002, a long-lived asset
is considered impaired when its fair value is less than its carrying value.  In
that event, a loss is calculated based on the amount the carrying value exceeds
the fair value which is estimated based on future cash flows.  Prior to adopting
SFAS No. 144, a long-lived asset was considered impaired when undiscounted
cash flows or fair value, whichever was more readily determinable, to be
realized from such asset was less than the carrying value.</font></p><p align="center">
<font face="Times New Roman" size="2">C-13<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<font size="2">Accumulated amortization of goodwill was $2,140,000, for continuing operations
at December 31, 2002 and $4,373,000 and $4,550,000 for consolidated operations
at December 31, 2001 and April 30, 2001, respectively.  Amortization expense for
continuing operations for the eight months ended December 31, 2001 and the
fiscal years ended April 30, 2001, and 2000, was $272,000, $410,000, and
$398,000, respectively.  Amortization expense for discontinued operations was
$751,000, $1,146,000, and $2,393,000 for the eight months ended December 31,
2001, and the fiscal years ended April 30, 2001 and 2000, and is included in the
loss from discontinued operations in the consolidated statement of operations.
</font>
<p>
<b><font size="2">Patents, Trademarks, and Other Purchased Product Rights</font></b><p>
<font size="2">The cost of acquired patents, trademarks, and other purchased product rights is
capitalized and amortized using the straight-line method over various periods
not exceeding 20 years. Total accumulated amortization of these assets was
$1,219,000 for continuing operations at December 31, 2002 and $1,080,000 and
$961,000 for consolidated operations at December 31, 2001 and April 30, 2001.
Amortization expense for continuing operations for the year ended December 31,
2002, the eight months ended December 31, 2001 and the fiscal years ended April
30, 2001, and 2000 was $162,000, $112,000, $168,000, and $134,000, respectively.
Amortization expense for discontinued operations was $149,000, $7,000, and
$5,000 for the year ended December 31, 2002, the eight months ended December 31,
2001, and the fiscal year ended April 30, 2001, and is included in the loss from
discontinued operations in the consolidated statement of operations.  Based on
the current amount of intangible assets subject to amortization, the estimated
amortization expense for the succeeding five years are as follows:  2003 -
$144,000; 2004 - $141,000; 2005 - $140,000; 2006 - $113,000; and 2007 - $-0-.
As acquisitions and dispositions of intangible assets occur in the future, these
amounts may vary.</font></p><p>
<b><font size="2">Deferred Financing Costs</font></b><p>
<font size="2">All deferred financing costs are included in other assets of continuing
operations and are amortized over the terms of the respective obligations. Total
accumulated amortization of deferred financing costs at December 31, 2002, and
2001, and April 30, 2001 was $3,227,000, $349,000, and $2,968,000, respectively.
Amortization expense for the year ended December 31, 2002, the eight months
ended December 31, 2001 and the fiscal years ended April 30, 2001, and 2000 was
$2,878,000, $1,272,000, $2,127,000, and $961,000, respectively, and is included
in interest expense in the accompanying consolidated statements of
operations.</font></p><p>
<b><font size="2">Accrued Liabilities and Other</font></b><p>
<font size="2">Accrued liabilities and other consisted of the following for continuing
operations at December 31, 2002 and for consolidated operations at December 31,
2001, and April 30, 2001 (in thousands):</font></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="177.333289" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="133.333300" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">December 31, 2002</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="139.999965" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">December 31, 2001</font></p>
</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="139.999965" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">April 30, 2001</font></p>
</td>
</tr>
<tr valign="top">
<td width="177.333289" colspan="1" rowspan="1" >
<p>
<font size="2">Accrued wages, commissions, bonuses, and benefits</font></p>
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="114.666638" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3,447&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="13.333330" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="125.333302" colspan="1" rowspan="1" >
<p align="right">
<font size="2">10,713&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="19.999995" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="13.333330" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="125.333302" colspan="1" rowspan="1" >
<p align="right">
<font size="2">12,665&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="177.333289" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Accrued income taxes</font></p>
</td>
<td width="133.333300" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">590&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="139.999965" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">676&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>


<font size="2">&nbsp;</font></td>
<td width="139.999965" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">635&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="177.333289" colspan="1" rowspan="1" >
<p>
<font size="2">Accrued special charge</font></p>
</td>
<td width="133.333300" colspan="2" rowspan="1" >
<p align="right">
<font size="2">--&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="139.999965" colspan="2" rowspan="1" >
<p align="right">
<font size="2">1,089&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="19.999995" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="139.999965" colspan="2" rowspan="1" >
<p align="right">
<font size="2">2,023&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="177.333289" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Accrued Insurance</font></p>
</td>
<td width="133.333300" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="139.999965" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">3,712&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="139.999965" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">3,469&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="177.333289" colspan="1" rowspan="1" >
<p>
<font size="2">Other</font></p>
</td>
<td width="133.333300" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">2,100&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="139.999965" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">8,569&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="19.999995" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="139.999965" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">6,564&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="177.333289" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="114.666638" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">6,147&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="125.333302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">24,759&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="13.333330" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="125.333302" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">25,356&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>
</table></div>
<p align="center">
<font face="Times New Roman" size="2">C-14<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<b><font size="2">Stock-Based Compensation</font></b><p>
<font size="2">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.</font></p><p>
<font size="2">For SFAS No. 123 purposes, the fair value of each option grant has been
estimated as of the date of grant using the Black-Scholes option-pricing model
with the following weighted average assumptions for grants in the year ended
December 31, 2002, the eight months ended December 31, 2001 and the fiscal years
ended April 30, 2001, 2000, and 1999, respectively: expected dividend yield of
0%; expected volatility of 84%, 72%, 71%, and 59%; risk-free interest rate of
3.84%, 4.28%, 6.10%, and 6.13%; and expected lives of 3.0 years for the year
ended December 31, 2002, 5.0 years for the eight months ended December 31, 2001
and 5.5 years for the fiscal years ended April 30, 2001, and 2000. Using these
assumptions, the fair value of options granted in the year ended December 31,
2002, the eight months ended December 31, 2001, and the fiscal years ended April
30, 2001 and 2000 is approximately $53,000, $355,000, $300,000, and $1,259,000,
respectively, which would be amortized as compensation expense over the vesting
period of the options.</font></p><p>
<font size="2">Had compensation cost for stock option grants in the fiscal year ended December
31, 2002, the eight months ended December 31, 2001 and the fiscal years ended
April 30, 2001 and 2000, been determined based on the fair value at the grant
dates consistent with the method prescribed by SFAS No. 123, the Company&#8217;s
net loss and net loss per share would have been adjusted to the pro forma
amounts indicated below:</font></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="241.333273" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="118.666637" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">December 31, 2002</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="122.666636" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">December 31, 2001</font></p>
</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="94.666643" colspan="2" bgcolor=#FFF3CE valign="bottom">
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">April 30, 2001</font></p>
</td>
<td width="17.333329" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="94.666643" colspan="2" bgcolor=#FFF3CE valign="bottom">
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">April 30, 2000</font></p>
</td>
</tr>
<tr valign="top">
<td width="241.333273" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="118.666637" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="122.666636" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="15.999996" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="94.666643" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="17.333329" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="94.666643" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="241.333273" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Net loss available to common<br>
stockholders, as reported</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="97.333309" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(45,694)</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="25.333327" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>

<p align="right">
<font size="2">(21,587)</font></p align="right">
</td>
<td width="15.999996" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="26.666660" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="66.666650" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(6,434)</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="74.666648" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(73,143)</font></p align="right">
</td>
</tr>
<tr valign="top">

<td width="241.333273" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Add:  Stock-based employee<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;compensation expense included in<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;reported net loss,
net of related tax<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;effects </font> </p>
</td>
<td width="118.666637" colspan="2" valign="bottom" >
<p align="right">
<p align="right">
<font size="2">--</font></p align="right">
</td>
<td width="14.666663" valign="bottom" >
<font size="2">&nbsp;</font></td>
<td width="122.666636" colspan="2" valign="bottom" >
<p align="right">
<p align="right">
<font size="2">--</font></p align="right">
</td>
<td width="15.999996" valign="bottom" >
<font size="2">&nbsp;</font></td>
<td width="94.666643" colspan="2" valign="bottom" >
<p align="right">
<p align="right">
<font size="2">--</font></p align="right">
</td>
<td width="17.333329" valign="bottom" >
<font size="2">&nbsp;</font></td>
<td width="94.666643" colspan="2" valign="bottom" >
<p align="right">
<p align="right">
<font size="2">--</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="241.333273" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deduct:  Total stock-based employee<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;compensation expense determined<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;under fair
value based method for<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all awards, net of related tax effects</font></p>
</td>
<td width="118.666637" colspan="2" bgcolor=#FFF3CE valign="bottom">
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;(400)</font></p>
</td>
<td width="14.666663" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="122.666636" colspan="2" bgcolor=#FFF3CE valign="bottom">
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">226</font></p>
</td>
<td width="15.999996" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="94.666643" colspan="2" bgcolor=#FFF3CE valign="bottom">
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(1,783)</font></p>
</td>
<td width="17.333329" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="94.666643" colspan="2" bgcolor=#FFF3CE valign="bottom">
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(2,596)</font></p>
</td>
</tr>
<tr valign="top">
<td width="241.333273" colspan="1" rowspan="1" >
<p>
<font size="2">Net loss available to common<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;stockholders, pro forma</font></p>
</td>
<td width="21.333328" valign="bottom" >
<p align="right" style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="97.333309" valign="bottom" >
<p align="right" style="border-bottom:double">
<font size="2">(46,094)</font></p>
</td>
<td width="14.666663" valign="bottom" >
<font size="2">&nbsp;</font></td>
<td width="25.333327" valign="bottom" >
<p align="right" style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="95.999976" valign="bottom" >
<p align="right" style="border-bottom:double">
<font size="2">(21,361)</font></p>
</td>
<td width="15.999996" valign="bottom" >
<font size="2">&nbsp;</font></td>
<td width="26.666660" valign="bottom" >
<p align="right" style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="66.666650" valign="bottom" >
<p align="right" style="border-bottom:double">
<font size="2">(8,217)</font></p>
</td>
<td width="17.333329" valign="bottom" >
<font size="2">&nbsp;</font></td>
<td width="19.999995" valign="bottom" >
<p align="right" style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="74.666648" valign="bottom" >
<p align="right" style="border-bottom:double">
<font size="2">(75,739)</font></p>
</td>
</tr>

<tr valign="top">
<td width="241.333273" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Loss per common share:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted, as reported</font></p>
</td>
<td width="21.333328" bgcolor=#FFF3CE valign="bottom">
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="97.333309" bgcolor=#FFF3CE valign="bottom">
<p align="right">
<font size="2">(4.89)</font></p align="right">
</td>
<td width="14.666663" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="25.333327" bgcolor=#FFF3CE valign="bottom">
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="95.999976" bgcolor=#FFF3CE valign="bottom">
<p align="right">
<font size="2">(2.31)</font></p align="right">
</td>
<td width="15.999996" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="26.666660" bgcolor=#FFF3CE valign="bottom">
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="66.666650" bgcolor=#FFF3CE valign="bottom">
<p align="right">
<font size="2">(0.69)</font></p align="right">
</td>
<td width="17.333329" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="19.999995" bgcolor=#FFF3CE valign="bottom">
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="74.666648" bgcolor=#FFF3CE valign="bottom">
<p align="right">
<font size="2">(7.83)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="241.333273" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted, pro forma</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="97.333309" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(4.93)</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="25.333327" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(2.29)</font></p align="right">
</td>
<td width="15.999996" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="26.666660" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(0.88)</font></p align="right">
</td>
<td width="17.333329" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="19.999995" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="74.666648" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(8.11)</font></p align="right">
</td>
</tr>
</table></div>
<p align="center">
<font face="Times New Roman" size="2">C-15<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<b><font size="2">Product Warranty</font></b><p>
<font size="2">The Company provides a one-year limited product and service warranty on certain
of its products.  The Company provides for the estimated cost of this warranty
at the time of sale. Warranty expense for continuing operations for the year
ended December 31, 2002, the eight months ended December 31, 2001 and the fiscal
years ended April 30, 2001, and 2000 was $1,489,000, $1,271,000, $2,126,000, and
$2,079,000, respectively.</font></p><p>
<b><font size="2">Credit Risk</font></b><p>
<font size="2">Financial instruments that potentially subject the Company to significant
concentrations of credit risk consist principally of cash investments and trade
accounts receivable. The Company places its cash investments with high-quality
financial institutions and limits the amount of credit exposure to any one
institution. The Company&#8217;s trade receivables are primarily from
independent distributors of towing and recovery equipment and towing service
customers. Such receivables are generally not collateralized for towing service
customers. The Company monitors its exposure for credit losses and maintains
allowances for anticipated losses.</font></p><p>
<b><font size="2">Revenue Recognition</font></b><p>
<font size="2">Revenue is recorded by the Company when equipment is shipped to independent
distributors or other customers. Revenue from towing services (discontinued
operations) is recognized when services are performed.</font></p><p>
<b><font size="2">Financial Instruments</font></b><p>
<font size="2">SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities",
establishes accounting and reporting standards requiring that every derivative
instrument (including certain derivative instruments embedded in other
contracts) be recorded in the balance sheet as either an asset or liability
measured at its fair value. Changes in the derivative&#8217;s fair value are
recognized currently in earnings unless specific hedge accounting criteria are
met. Special accounting for qualifying hedges allows a derivative&#8217;s gains
and losses to offset related results on the hedged item in the income statement,
and requires that a company must formally document, designate, and assess the
effectiveness of transactions that receive hedge accounting. The adoption of
SFAS No. 133 did not have a material effect on the Company&#8217;s financial
statements. See Note 9 for additional discussions.</font></p><p>
<b><font size="2">Recent Accounting Pronouncements</font></b><p>
<font size="2">In April 2002, the FASB issued SFAS No. 145, &#8220;Rescission of SFAS Nos. 4,
44, and 64, Amendment of SFAS No. 13, and Technical Corrections as of April
2002.&#8221;  This Statement rescinds SFAS No. 4, &#8220;Reporting Gains and
Losses from Extinguishment of Debt&#8221;, and an amendment of that Statement,
SFAS No. 64, &#8220;Extinguishments of Debt Made to Satisfy Sinking-Fund
Requirements.&#8221;  This Statement also rescinds SFAS No. 44,
&#8220;Accounting for Intangible Assets of Motor Carriers.&#8221;  This
Statement amends SFAS No. 13, &#8220;Accounting for Leases&#8221;, to eliminate
an inconsistency between the required accounting for sale-leaseback transactions
and the required accounting for certain lease modifications that have economic
effects that are similar to sale-leaseback transactions.  SFAS No. 145 will be
effective for fiscal 2003, which begins January 1, 2003.  Management does not
expect the adoption of this statement to have a material impact on the
Company&#8217;s results of operations or financial position.</font></p><p align="center">
<font face="Times New Roman" size="2">C-16<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<font size="2">FASB has issued SFAS No. 146, &#8220;Accounting for Exit or Disposal
Activities&#8221;.  SFAS No. 146 addresses the recognition, measurement, and
reporting of costs that are associated with exit and disposal activities,
including costs related to terminating a contract that is not a capital lease
and termination benefits that employees who are involuntarily terminated receive
under the terms of a one-time benefit arrangement that is not an ongoing benefit
arrangement or an individual deferred-compensation contract.  SFAS No. 146
supersedes Emerging Issues Task Force Issue No. 94-3, &#8220;Liability
Recognition for Certain Employee Termination Benefits and Other Costs to Exit an
Activity (including Certain Costs Incurred in a Restructuring)&#8221; and
requires liabilities associated with exit and disposal activities to be expensed
as incurred.  SFAS No. 146 will be effective for exit or disposal activities of
the Company that are initiated after December 31, 2002.</font></p><p>
<b><font size="2">Reclassifications</font></b><p>
<font size="2">Certain prior year amounts have been reclassified to conform to current year
presentation, with no impact on previously reported shareholders&#8217; equity
or net income (loss).</font></p><p>
<b><font size="2">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FISCAL YEAR CHANGE</font></b><p>
<font size="2">Effective December 31, 2001, the Company changed its fiscal year end from April
30 to December 31. The table below summarizes selected financial data for the
eight months ended December 31, 2001 and December 31, 2000.</font></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="279.999930" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="126.666635" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">
<br>Eight months ended<br>December 31,
2001</font></p>
</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="139.999965" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">Eight months ended<br>December 31,
2000<br>(unaudited)</font></p>
</td>
</tr>
<tr valign="top">
<td width="279.999930" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="286.666595" colspan="3" rowspan="1" >
<p align="center">

<font size="2">(in thousands)</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="279.999930" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Net Sales</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$142,445&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="139.999965" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$136,551&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="279.999930" colspan="1" rowspan="1" >
<p>
<font size="2">Depreciation and amortization</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2,880&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="19.999995" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="139.999965" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2,941&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="279.999930" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Special charges and other operating expenses, net</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">1,794&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="139.999965" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">-0-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="279.999930" colspan="1" rowspan="1" >
<p>
<font size="2">Operating income (loss)</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
<p align="right">
<font size="2">5,351&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="19.999995" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="139.999965" colspan="1" rowspan="1" >
<p align="right">
<font size="2">5,495&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="279.999930" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Interest expense, net</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">1,055&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="139.999965" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">5,546&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="279.999930" colspan="1" rowspan="1" >
<p>
<font size="2">Income from continuing operations</font></p>
</td>
<td width="126.666635" colspan="1" rowspan="1" >
<p align="right">
<font size="2">1,877&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="19.999995" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="139.999965" colspan="1" rowspan="1" >
<p align="right">
<font size="2">4,296&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
</table></div>
<p>
<b><font size="2">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SPECIAL CHARGES</font></b><p>
<font size="2">During the year ended December 31, 2002, the eight months ended December 31,
2001, and the fiscal year ended April 30, 2000, the Company recorded special
charges and other net operating expenses for asset impairments and the
rationalization of certain operations, as follows (in thousands):</font></p>
<div align="center"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="97.333309" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">December 31,<br>2002</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="97.333309" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">December 31,<br>2001</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="98.666642" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">April 30,<br>2000</font></p>
</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2">Towing Services (included in discontinued operations)</font></p>
</td>
<td width="97.333309" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>

<td width="97.333309" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="98.666642" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of goodwill</font></p>
</td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">--</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">10,778</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="19.999995" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">50,542</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of long-lived assets</font></p>
</td>
<td width="97.333309" colspan="2" rowspan="1" >
<p align="right">
<font size="2">1,533</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="97.333309" colspan="2" rowspan="1" >
<p align="right">
<font size="2">2,644</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="98.666642" colspan="2" rowspan="1" >
<p align="right">
<font size="2">18,576</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Special charges and  rationalization<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of operations</font></p>
</td>
<td width="97.333309" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">8,658</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="97.333309" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">--</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="98.666642" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">6,041</font></p>
</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">$</font></p>
</td>
<td width="77.333314" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">10,191</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="97.333309" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">13,422</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="98.666642" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">75,159</font></p>
</td>



</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Towing and Recovery Equipment:</font></p>
</td>
<td width="97.333309" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="97.333309" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="98.666642" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="97.333309" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="97.333309" colspan="2" rowspan="1" >

<font size="2">&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="98.666642" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Impairment of goodwill</font></p>
</td>
<td width="97.333309" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="97.333309" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="98.666642" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuing Operations</font></p>
</td>
<td width="97.333309" colspan="2" rowspan="1" >
<p align="right">
<font size="2">--</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="97.333309" colspan="2" rowspan="1" >
<p align="right">
<font size="2">564</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="98.666642" colspan="2" rowspan="1" >
<p align="right">
<font size="2">--</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued Operations</font></p>
</td>
<td width="97.333309" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> --</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="97.333309" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">916</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="98.666642" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">4,967</font></p>
</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="97.333309" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="97.333309" colspan="2" rowspan="1" >
<p align="right">
<font size="2">1,480</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="98.666642" colspan="2" rowspan="1" >
<p align="right">
<font size="2">4,967</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Impairment of long-lived assets</font></p>
</td>
<td width="97.333309" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="97.333309" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="98.666642" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuing Operations</font></p>
</td>
<td width="97.333309" colspan="2" rowspan="1" >
<p align="right">
<font size="2">--</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>


<td width="97.333309" colspan="2" rowspan="1" >
<p align="right">
<font size="2">1,230</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="98.666642" colspan="2" rowspan="1" >
<p align="right">
<font size="2">2,770</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued Operations</font></p>
</td>
<td width="97.333309" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">1,637</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="97.333309" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">540</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="98.666642" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">--</font></p>
</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="97.333309" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">1,637</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="97.333309" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">1,770</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="98.666642" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">2,770</font></p>
</td>
</tr>
<tr valign="top">
<td width="221.333278" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
</p>
</td>
<td colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">11,828</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="77.333314" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">16,672</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="78.666647" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">82,896</font></p>
</td>
</tr>
</table></div>
<p align="center">
<font face="Times New Roman" size="2">C-17<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<font size="2">During the twelve months ended April 30, 2000, the Company recorded pretax,
special charges of $6,041,000 for costs related to the rationalization of its
towing services operations. These charges include approximately $4,589,000 for
the cost of early termination of certain employment contracts, approximately
$857,000 for the cost of early termination of facility leases and $595,000 for
losses on the disposal of certain excess equipment and other property-related
charges. At December 31, 2002, approximately $5,638,000 had been charged against
the related reserves. The remaining reserve will be utilized as payments are
made under the terms of employment termination agreements and facility
leases.</font></p><p>
<font size="2">The Company periodically reviews the carrying amount of long-lived assets and
goodwill in both its towing services and towing equipment segments to determine
if those assets may be recoverable based upon the future operating cash flows
expected to be generated by those assets. As a result of such review during the
eight months ended December 31, 2001 and the fiscal year ended April 30, 2000,
the Company concluded that the carrying value of such assets in certain towing
services markets and certain assets within the Company&#8217;s towing and
recovery equipment segment were not fully recoverable.</font></p><p>
<font size="2">Impairment charges of $10,778,000 and $50,542,000 were recorded for the eight
months ended December 31, 2001 and the fiscal year ended April 30, 2000,
respectively, to write-down the goodwill in certain towing services markets to
their estimated fair value. Additionally, charges of $10,191,000, $2,644,000 and
$18,576,000 were recorded for the year ended December 31, 2002, the eight months
ended December 31, 2001 and the fiscal year ended April 30, 2000 to write-down
the carrying value of certain long-lived assets (primarily property and
equipment) and other special changes in related markets to estimated fair value.
The Company determined fair value for these assets on a market by market basis
taking into consideration various factors affecting the valuation in each
market.</font></p><p>
<font size="2">The Company also reviewed the carrying values of the goodwill associated with
certain investments within its towing and recovery equipment segment. This
evaluation indicated that the recorded amounts of goodwill for certain of these
investments were not fully recoverable. Impairment charges of $1,480,000 and
$4,967,000 were recorded to reduce the carrying amounts of the goodwill to
estimated fair value at December 31, 2001 and April 30, 2000, respectively. The
Company recorded $1,637,000, $1,770,000 and $2,770,000 of additional costs
related to the write-down of the carrying value of other long-lived assets of
its towing and recovery equipment segment for the year ended December 31, 2002
the eight months ended December 31, 2001 and the twelve months ended April 30,
2000.</font></p><p>
<font size="2">In accordance with SFAS No. 121 and APB No. 17, the Company wrote-off goodwill
and long-lived assets of $3,250,000 and $7,737,000 associated with the towing
and recovery equipment segment as of December 31, 2001 and April 30, 2000,
respectively. Additionally, during the eight months ended December 31, 2001 and
the fiscal year ended April 30, 2000, the Company wrote-off goodwill and
long-lived assets associated with the towing services segment of $13,422,000 and
$69,118,000, respectively. Management believes its long-lived assets are
appropriately valued following the impairment charges.</font></p><p align="center">
<font face="Times New Roman" size="2">C-18<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<b>
<font size="2">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GOODWILL AND OTHER LONG-LIVED ASSETS</font></b><p>
<font size="2">In June 2001, the FASB issued SFAS No. 141, "Business Combinations" and SFAS No.
142, "Goodwill and Other Intangible Assets" (collectively the "Standards"). The
Standards were effective for fiscal years beginning after December 15, 2001.
Companies with fiscal years beginning after March 15, 2001 could early adopt,
but only as of the beginning of that fiscal year and only if all existing
goodwill was evaluated for impairment by the end of that fiscal year. SFAS No.
141 requires companies to recognize acquired identifiable intangible assets
separately from goodwill if control over the future economic benefits of the
asset results from contractual or other legal rights or the intangible asset is
capable of being separated or divided and sold, transferred, licensed, rented, or exchanged. The Standards
require the value of a separately identifiable intangible asset meeting any of
the criteria to be measured at its fair value. SFAS No. 142 requires that
goodwill not be amortized and that amounts recorded as goodwill be tested for
impairment. Annual impairment tests have to be performed at the lowest level of
an entity that is a business and that can be distinguished, physically and
operationally and for internal reporting purposes, from the other activities,
operations, and assets of the entity.</font><p>
<font size="2">Upon adoption of SFAS No. 142 in January 2002, the Company ceased to amortize
goodwill. In lieu of amortization, the Company is required to perform an initial
impairment review of goodwill in 2002 and an annual impairment review
thereafter. As a result of impairment reviews, the Company wrote-off goodwill of
$2,886,000 in the towing equipment segment and $18,926,000 in the towing
services segment during the year ended December 31, 2002. The write-off has been
accounted for as a cumulative effect of change in accounting principle to
reflect application of the new accounting standards.</font></p><p>
<font size="2">Had the Company applied the non-amortization of goodwill provisions of SFAS No.
142 in the eight months ended December 31, 2001, and the years ended April 30,
2001 and 2000 reported net loss and basic and diluted loss per share would have
been as follows (in thousands):</font></p>
<div align="center"><table border=0 cellpadding=0 cellspacing =0 width="542" >
<tr valign="top">
<th width="188" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></th>
<th width="8" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></th>
<th width="81" colspan="4" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">December 31,<br>2001</font></p>
</th>
<th width="39" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></th>
<th width="109" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">April 30,<br>2001</font></p>
</th>
<th width="35" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></th>
<th width="82" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">April 30,<br>2000</font></p>
</th>
</tr>
<tr valign="top">
<th width="188" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></th>
<th width="8" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></th>
<th width="81" colspan="4" rowspan="1" >
<font size="2">&nbsp;</font></th>
<th width="39" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></th>
<th width="109" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></th>
<th width="35" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></th>
<th width="82" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></th>
</tr>
<tr valign="top">
<td width="188" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Net loss:</font></p>
</td>
<td width="8" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="81" colspan="4" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="39" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="109" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="35" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="82" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="188" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As reported</font></p>
</td>
<td width="8" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="23" colspan="2" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="58" colspan="2" rowspan="1" >
<p align="right">
<font size="2">(21,587)</font></p align="right">
</td>
<td width="39" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="43" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="66" colspan="2" rowspan="1" >
<p align="right">
<font size="2">(6,434)</font></p align="right">
</td>
<td width="35" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="23" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="59" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(73,143)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="188" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill amortization</font></p>
</td>
<td width="8" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="81" colspan="4" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="39" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="109" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="35" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="82" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="188" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuing operations</font></p>
</td>
<td width="8" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="81" colspan="4" rowspan="1" >
<p align="right">
<font size="2">272&nbsp;</font></p align="right">
</td>
<td width="39" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="109" colspan="3" rowspan="1" >
<p align="right">
<font size="2">410&nbsp;</font></p align="right">
</td>
<td width="35" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="82" colspan="2" rowspan="1" >
<p align="right">
<font size="2">398&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">


<td width="188" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued
operations</font></p>
</td>
<td width="8" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="81" colspan="4" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">751&nbsp;</font></p>
</td>
<td width="39" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="109" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">1,146&nbsp;</font></p>
</td>
<td width="35" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="82" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">2,393&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="188" colspan="1" rowspan="1" >
<p>
<font size="2">Pro forma loss</font></p>
</td>
<td width="8" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="23" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">$</font></p>
</td>
<td width="58" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(20,564)</font></p>
</td>
<td width="39" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="43" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">$</font></p>
</td>
<td width="66" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(4,878)</font></p>
</td>
<td width="35" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="23" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">$</font></p>
</td>
<td width="59" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(70,352)</font></p>
</td>
</tr>
<tr valign="top">
<td width="188" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="8" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="81" colspan="4" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="39" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="109" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="35" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="82" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="188" colspan="1" rowspan="1" >
<p>
<font size="2">Basic loss per share</font></p>
</td>
<td width="8" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="81" colspan="4" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="39" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="109" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="35" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="82" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="188" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As reported</font></p>
</td>
<td width="8" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="23" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="58" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(2.31)</font></p align="right">
</td>
<td width="39" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="43" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="66" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(0.69)</font></p align="right">
</td>
<td width="35" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="23" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="59" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(7.83)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="188" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill
amortization</font></p>
</td>
<td width="8" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="81" colspan="4" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="39" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="109" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="35" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="82" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="188" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuing
operations</font></p>
</td>
<td width="8" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="81" colspan="4" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">0.03&nbsp;</font></p align="right">
</td>
<td width="39" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="109" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">0.04&nbsp;</font></p align="right">
</td>
<td width="35" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="82" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">0.04&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="188" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued
operations</font></p>
</td>
<td width="8" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="81" colspan="4" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">0.08&nbsp;</font></p>
</td>
<td width="39" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="109" colspan="3" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">0.12&nbsp;</font></p>
</td>
<td width="35" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="82" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">0.26&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="183" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Pro forma basic loss per share</font></p>
</td>
<td width="14" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="22" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">$</font></p>
</td>
<td width="58" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (2.20)</font></p>
</td>
<td width="39" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="43" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">$</font></p>
</td>
<td width="66" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(0.53)</font></p>
</td>
<td width="35" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="23" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">$</font></p>
</td>
<td width="59" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> (7.53)</font></p>
</td>
</tr>
<tr valign="top">
<td width="188" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="8" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="81" colspan="4" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="39" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="109" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="35" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="82" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="188" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Diluted loss per share</font></p>
</td>
<td width="8" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="81" colspan="4" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="39" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="109" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="35" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="82" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="188" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As reported</font></p>
</td>
<td width="8" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="23" colspan="3" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="58" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(2.31)</font></p align="right">
</td>
<td width="39" colspan="3" rowspan="1" >

<font size="2">&nbsp;</font></td>
<td width="43" colspan="2" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="66" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(0.69)</font></p align="right">
</td>
<td width="35" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="23" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="59" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(7.83)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="188" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill
amortization</font></p>
</td>
<td width="8" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="81" colspan="4" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="39" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="109" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="35" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="82" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="188" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuing
operations</font></p>
</td>
<td width="8" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="81" colspan="4" rowspan="1" >
<p align="right">
<font size="2">0.03&nbsp;</font></p align="right">
</td>
<td width="39" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="109" colspan="3" rowspan="1" >
<p align="right">
<font size="2">0.04&nbsp;</font></p align="right">
</td>
<td width="35" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="82" colspan="2" rowspan="1" >
<p align="right">
<font size="2">0.04&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="188" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued
operations</font></p>
</td>
<td width="8" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="81" colspan="4" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">0.08&nbsp;</font></p>
</td>
<td width="39" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="109" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">0.12&nbsp;</font></p>
</td>
<td width="35" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="82" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">0.25&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="188" colspan="1" rowspan="1" >
<p>
<font size="2">Pro forma diluted loss per share</font></p>
</td>
<td width="8" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td colspan="3" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="58" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">(2.20)</font></p>
</td>
<td width="39" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="43" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="66" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2"> (0.53)</font></p>
</td>
<td width="35" colspan="3" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="23" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="59" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">(7.54)</font></p>
</td>
</tr>
</table></div>
<p align="center">
<font face="Times New Roman" size="2">C-19<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<b>
<font size="2">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LONG-TERM OBLIGATIONS AND LINE OF CREDIT</font></b><p>
<b><font size="2">Long-Term Obligations</font></b><p>
<font size="2">Long-term obligations consisted of the following for continuing operations at
December 31, 2002 and for consolidated operations at December 31, 2001, and
April 30, 2001 and 2000 (in thousands):</font></p>
<div align="center">
  <table border=0 cellpadding=0 cellspacing =0 width="704" style="border-collapse: collapse" bordercolor="#111111" >
<tr valign="top">

<td width="352" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="120" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">December 31, 2002</font></p>
</td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="119" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">December 31, 2001</font></p>
</td>
<td width="11" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="89" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">April 30, 2001</font></p>
</td>
</tr>
<tr valign="top">
<td width="352" colspan="1" rowspan="1" >
<p>
<font size="2">Outstanding borrowings under Senior Credit Facility</font></p>
</td>
<td width="120" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$19,740&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="13" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="119" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$85,463&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="11" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="89" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$100,000&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="352" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Outstanding borrowings under Junior Credit Secured<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Facility</font></p>
</td>
<td width="120" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">14,431&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="119" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">14,000&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="11" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="89" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">0&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="352" colspan="1" rowspan="1" >
<p>
<font size="2">Mortgage notes payable, weighted average interest rate of<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.37%, payable in
monthly installments, maturing 2003 to<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2011</font></p>
</td>
<td width="120" colspan="1" rowspan="1" >
<p align="right">
<font size="2">1,500&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="13" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="119" colspan="1" rowspan="1" >
<p align="right">
<font size="2">1,674&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="11" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="89" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2,568&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="352" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Equipment notes payable, weighted average interest rate of <br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.51%, payable
in monthly installments, maturing 2003 to<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2005</font></p>
</td>
<td width="120" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">601&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="119" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">822&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="11" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="89" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">926&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>

</tr>
<tr valign="top">
<td width="352" colspan="1" rowspan="1" >
<p>
<font size="2">Other notes payable, weighted average interest rate of 6.06%,<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;payable in
monthly installments, maturing 2003 to 2006</font></p>
</td>
<td width="120" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2">186&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="13" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="119" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2">2,008&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="11" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="89" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2">2,840&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="352" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="120" colspan="1" rowspan="1" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1; border-bottom-style: none; border-bottom-width: medium">
<p align="right">
<font size="2">36,458&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="119" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1">
<p align="right">
<font size="2">103,967&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="11" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="89" bgcolor=#FFF3CE style="border-top-style: solid; border-top-width: 1">
<p align="right">
<font size="2">106,334&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="352" colspan="1" rowspan="1" >
<p>
<font size="2">Less current portion</font></p>
</td>
<td width="120" colspan="1" rowspan="1" style="border-top-style: none; border-top-width: medium" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(35,244)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="13" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="119" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(12,405)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="11" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="89" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(7,213)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="352" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="120" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">$1,214&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="13" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="119" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">$91,562&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="11" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="89" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">$99,121&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
<font size="2">The December 31, 2002 figures do not include $22.7 million
outstanding under the Senior Credit Facility relating to discontinued
operations.&nbsp; Certain equipment and manufacturing facilities are pledged as collateral under
the mortgage and equipment notes payable.</font></p><p>
<b><font size="2">2001 Credit Facility</font></b><p>
<font size="2">In July 2001, the Company entered into a new four year senior credit facility
(the "Senior Credit Facility") with a syndicate of lenders to replace the
existing credit facility. As part of this agreement, the previous credit
facility was reduced with proceeds from the Senior Credit Facility and amended
to provide for a $14.0 million subordinated secured facility. The Senior Credit

Facility originally consisted of an aggregate $102.0 million revolving credit
facility and an $8.0 million term loan. The revolving credit facility provides
for separate and distinct loan commitment levels for the Company&#8217;s towing
and recovery equipment segment and RoadOne segment, respectively. At December
31, 2002, $29.4 million and $10.0 million, respectively were outstanding under
the towing and recovery equipment segment and RoadOne portions of the revolving
credit facility. In addition, $3.0 million was outstanding under the senior term
loan, and $14.4 million was outstanding under the subordinated secured
facility.</font></p><p>
<font size="2">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.  Borrowings under the term loan are collateralized by the
Company&#8217;s property, plant, and equipment.  The Company is required to make
monthly amortization payments on the term loan of $167,000.  The Senior Credit
Facility bears interest at the option of the Company at either the rate of LIBOR
plus 2.75% or prime rate (as defined) plus 0.75% on the revolving portion and
LIBOR plus 3.0% or prime rate (as defined) plus 1.0% on the term portion.</font></p><p>
<font size="2">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 align="center">
<font face="Times New Roman" size="2">C-20<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<font size="2">The subordinated credit facility (&#8220;Junior Credit Facility&#8221;) is by
its terms expressly subordinated only to the Senior Credit Facility. The
subordinated secured facility matures on July 23, 2003 and bears interest at
6.0% over the prime rate. The Company is required to make quarterly amortization
payments on the Junior Credit Facility of $875,000 beginning not later than May 2002 provided
that certain conditions are met, including satisfying a fixed charge coverage
ratio test and a minimum availability limit. The Junior Credit Facility is
collateralized by certain specified assets of the Company and by a second
priority lien and security interest in substantially all other assets of the
Company. The Junior Credit Facility contains requirements for certain fees to be
paid at six month intervals beginning in January 2002 based on the outstanding
balance of the subordinated secured facility at the time. The Junior Credit
Facility also contains provisions for the issuance of warrants for up to 0.5% of
the outstanding shares of the Company&#8217;s common stock in July 2002 and up
to an additional 1.5% in July, 2003. The number of warrants which may be issued
would be reduced pro rata as the balance of the Junior Credit Facility is
reduced.  On July 23, 2002, the Company issued 47,417 warrants for the purchase
of common stock in conjunction with these related provisions.</font><p>
<font size="2">The Junior Credit Facility contains, among other restrictions, requirements for
the maintenance of certain financial covenants and imposes restrictions on
capital expenditures, incurrence of indebtedness, mergers and acquisitions,
distributions and transfers and sales of assets.</font></p><p>
<font size="2">There is no assurance that the Company will be able to
repay or refinance the outstanding principal and interest under the Junior
Credit Facility on the maturity date thereof.  If the Company fails to repay all
outstanding principal, interest and any other amounts due and owing under the
Junior Credit Facility on the maturity date, such failure will constitute an
event of default under the Junior Credit Facility and will also trigger an event
of default under the Senior Credit Facility cross-default provisions.  In such
case, the junior lender agent would be prevented from taking any enforcement
action against the Company, its subsidiaries or their respective assets in
respect of such event of default until the earlier of: (i) the date which is 120
days (subject to extension to 270 days by notice from senior lender agent to
junior lender agent) after the date upon which the junior lender agent gives
notice of enforcement to the senior lender agent pursuant to the terms of the
Intercreditor Agreement; (ii) the acceleration of the maturity of the
obligations of the Company under the Senior Credit Facility by the senior lender
agent, and (ii) the commencement of any bankruptcy, insolvency or similar
proceeding against the Company or certain of its subsidiaries.  The resulting
event of default under the Senior Credit Facility if the Company does not repay
all of the obligations under the Junior Credit Facility could result in the
acceleration of the amounts due under the Senior Credit Facility as well as
other remedies if not waived by the senior lenders.  There is no assurance that
the Company will be able to obtain such a waiver from the senior lenders or a
waiver from the junior lenders of any event of default that would occur as a
result of the failure by the Company to repay or refinance the outstanding
principal and interest under the Junior Credit Facility on the maturity date.
</font>
<p>
<b><font size="2">2002 Amendments</font></b><p>
<font size="2">The Company was in an over-advance position under its credit facility during the
first quarter of 2002. On February 28, 2002 the Company entered into a
Forbearance Agreement and First Amendment to its Senior Credit Agreement with
the lenders under the Senior Credit Facility, as amended by that certain
Amendment to Forbearance Agreement dated as of March 18, 2002 and that certain
Second Amendment to the Forbearance Agreement dated as of March 29, 2002 (as so
amended, the "Forbearance Agreement"). As a result of a revised asset appraisal
conducted by the senior lenders, the senior lenders determined that the amounts
outstanding under the Senior Credit Facility should be lowered below the amount
then outstanding under the Senior Credit Facility, causing the Company to be
over-advanced on its line of credit which resulted in the occurrence of an event
of default under the Senior Credit Facility and a corresponding event of default
under the Junior Credit Facility. The Forbearance Agreement and subsequent
amendments waived the Company&#8217;s overadvance under the Senior Credit
Facility and amended the terms of the credit agreement to, among other things,
(i) permanently reduce the commitment levels to $42.0 million for the towing and
recovery equipment segment and $36.0 million for the RoadOne segment portion of the revolving credit facility and $6,611,000 for
the term loan facility, (ii) eliminate the Company&#8217;s ability to borrow
funds at a LIBOR rate of interest, and (iii) increase the interest rate to a
floating rate of interest equal to the prime rate plus 2.75%.</font></p><p align="center">
<font face="Times New Roman" size="2">C-21<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<font size="2">On April 15, 2002 the Company amended the Senior Credit Facility, pursuant to
which, among other things: (i) the senior lenders waived the overadvance event
of default and other events of default, (ii) interest on advances will be
charged at the prime rate (as defined) plus 2.75% on the revolving portion and
the term portion, subject to substantial upward adjustments in the interest rate
on and after certain specified dates based on the amounts outstanding under the
revolving loan commitment relating to RoadOne (escalating at generally quarterly
intervals from prime plus 4.50% as of October 1, 2002 to prime plus 14.00% as of
April 1, 2005) and (iii) the revolving loan commitment amount relating to
RoadOne is subject to mandatory reductions over time commencing August 12, 2002,
which reductions will require a mandatory repayment of portions of outstanding
loans at specified dates and the failure to timely make such repayments shall
result in an event of default under the bank credit agreements. The RoadOne
revolving commitment amount, which was set at $36.0 million through the April
15, 2002 amendment, is scheduled to be reduced as follows: August 12, 2002- to
$34.0 million; October 2, 2002 - to $30.0 million; March 31, 2003 - to $27.0
million; thereafter- quarterly reductions of $3.0 million through June 30, 2005.
On April 15, 2002 the Company also amended the Junior Credit Facility, pursuant
to which, among other things, (i) the junior lenders waived the events of
default, and (ii) extended the time for payment of certain scheduled
amortization payments. On April 15, 2002, the junior lender agent, the senior
lender agent and the Company entered into an Amended and Restated Intercreditor
and Subordination Agreement, pursuant to which, among other things, subject to
certain terms and conditions, the junior lenders have agreed to defer the
required payment of amortization payments under the Junior Credit Facility until
November 20, 2002, April 5, 2003 and May 20, 2003.</font></p><p>
<font size="2">On September 13, 2002, the Company entered into the Third Amendment to the
Senior Credit Facility.  Pursuant to the Third Amendment, the amount of the
mandatory periodic reductions in the RoadOne revolving loan commitment amount,
as established in the April 15, 2002 Second Amendment to Senior Credit
Agreement, were increased by amounts calculated based on updated asset
appraisals completed in September 2002.  Consequently, the Company will need to
repay outstanding loans and permanently reduce the RoadOne loan commitment under
its Senior Credit Facility over the life of the loan and prior to the maturity
date.  Pursuant to the terms of the Second and Third Amendments, the failure by
the Company to repay outstanding loans and to reduce the RoadOne revolving loan
commitment by the amounts and the times required pursuant to these amendments
will result in increased interest rates on the senior loans and/or the
occurrence of an event of default under the Senior Credit Facility.</font></p><p>
<font size="2">In addition, pursuant to the Third Amendment, the amount of availability that
can be generated for used inventory considered as eligible inventory for
collateral purposes was limited to $4.3 million (subject to downward adjustments
upon certain sales of sales of assets and stock by the Company and certain of
its subsidiaries) through February 28, 2003 and reduced to $0 thereafter.  The
Sixth Amendment (discussed below 2003 Amendments) lowered the $4.3 million limit
and eliminated the further requirement for reduction to $0 after February 28,
2003.</font></p><p align="center">
<font face="Times New Roman" size="2">C-22<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<font size="2">On November 14, 2002, the Company entered into the Fourth Amendment to the
Senior Credit Facility, which granted waivers from the Senior Lenders of
violations of certain financial covenants for the quarter ended September 2002.
There were no violations under the Junior Credit Facility. The Amendment also
reduced the level of certain financial covenants for future periods, basing them
strictly on the results of the towing and recovery equipment segment for those
periods. In addition, the amendment revised the Road One revolving commitment
amount based on the plan to sell all remaining towing service operations,
reducing the commitment amount to $15.0 million at November 30, 2002, $12.0 million at December 31, 2002, $9.0 million at January 31, 2003,
$6.0 million at February 28, 2003 and reducing to zero as of March 31, 2003.</font><p>
<b><font size="2">2003 Amendments</font></b><p>
<font size="2">On February 28, 2003, the Company entered into the Fifth Amendment to the Senior
Credit Facility.  Pursuant to the Fifth Amendment, the date upon which the
amount of certain used inventory taken in trade for collateral purposes is
reduced to $-0- was extended from February 28, 2003 to March 31, 2003.  In
addition, the Fifth Amendment revised the RoadOne revolving commitment reducing
the amount to $9.0 million at February 28, 2003 and $-0- as of March 31, 2003.
</font>
<p>
<font size="2">On April 1, 2003, the Company
entered into the Sixth Amendment to
Senior Credit Facility.  The Sixth Amendment, among other things,
revised the RoadOne revolving
commitment, extending the time by one year for the reduction thereof to $-0-
from March 31, 2003 to March 31, 2004.  The amount of
availability that can be generated for used inventory
considered as eligible inventory for collateral purposes was reduced to $2.7
million with no further required reductions. </font>  <p>
<font size="2">Meeting the new repayment schedule for the RoadOne revolving commitments as
described above under 2002 Amendments to Senior Credit Facility and 2003
Amendments to Senior Credit Facility will require that the Company sell its
towing services businesses according to its contemplated schedule on acceptable
terms. While the Company believes its timetable for sales is achievable, there
can be no assurance that the schedule can be met.</font></p><p>
<font size="2">Subsequent to April 1, 2003, the Company was in default under certain covenants
under its Senior and Junior Credit Facility agreements.  Accordingly, amounts
outstanding under these Facilities are presented as current liabilities in the
accompanying December 31, 2002 consolidated balance sheet.  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&#8217;s bank facilities are collateralized by liens on
all of the Company&#8217;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>
<font size="2">The Company could be required to find alternative funding sources, such as sale
of assets or other financing sources. If the Company were unable to refinance
the credit facility on acceptable terms or find an alternative source of
repayment for the credit facility, the Company&#8217;s business and financial
condition would be materially and adversely affected. There is no assurance that
the Company would be able to obtain any such refinancing or that it would be
able to sell assets on terms that are acceptable to the Company or at all.</font></p><p>
<font size="2">Prior to making the determination to sell all of its remaining towing services
operations, the Company had focused on cost reduction and expense control, as
well as other opportunities for improving operating cash flows, to improve
liquidity. The Company has also disposed of certain underperforming RoadOne
assets and operations in order to improve liquidity and to reduce expenses and
debt. As described in Note 3, in October 2002, the Company decided to sell all
remaining towing services operations. The Company received a tax refund of
approximately $4.2 million during the quarter ended June 30, 2002, which also
reduced the RoadOne revolver and cured the overadvance position that existed at
that time. An additional tax refund of approximately $4.6 million was received
during the quarter ended September 30, 2002, with proceeds used to further
reduce the borrowings under the RoadOne revolver. All of these efforts have
resulted in $28.1 million in reductions to the RoadOne revolver since December
31, 2001. Additionally, the towing and recovery equipment revolver and the term loan have been reduced
$10.9 million and $4.1 million, respectively, during the current fiscal year.</font></p><p align="center">
<font face="Times New Roman" size="2">C-23<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<font size="2">Future maturities of long-term obligations after giving effect to the
aforementioned events of default at December 31, 2002 are as follows (in
thousands):</font></p>
<div><table border=0 cellpadding=0 cellspacing =0 width="640" >
<tr valign="top">
<td width="119" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="183" colspan="5" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<u><font size="2">Continuing Operations</font></u></p align="center">
</td>
<td width="175" colspan="4" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<u><font size="2">Discontinued Operations</font></u></p align="center">
</td>
<td width="163" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<u><font size="2">Total</font></u></p align="center">
</td>
</tr>
<tr valign="top">
<td width="119" colspan="1" rowspan="1" >
<p>
<font size="2">2003</font></p>
</td>
<td width="58" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="59" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$&nbsp;&nbsp;35,244</font></p align="right">
</td>
<td width="66" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="51" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="61" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$&nbsp;&nbsp;24,116</font></p align="right">
</td>
<td width="63" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="37" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="71" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$&nbsp;&nbsp;59,360</font></p align="right">
</td>
<td width="55" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="119" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">2004</font></p>
</td>
<td width="117" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">407</font></p align="right">
</td>
<td width="66" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="112" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">739</font></p align="right">
</td>
<td width="63" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="108" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">1,146</font></p align="right">
</td>
<td width="55" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="119" colspan="1" rowspan="1" >
<p>
<font size="2">2005</font></p>
</td>
<td width="117" colspan="3" rowspan="1" >
<p align="right">
<font size="2">211</font></p align="right">
</td>
<td width="66" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="112" colspan="3" rowspan="1" >
<p align="right">
<font size="2">454</font></p align="right">
</td>
<td width="63" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="108" colspan="2" rowspan="1" >
<p align="right">
<font size="2">665</font></p align="right">
</td>
<td width="55" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="119" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">2006</font></p>
</td>
<td width="117" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">118</font></p align="right">
</td>
<td width="66" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="112" colspan="3" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">257</font></p align="right">
</td>
<td width="63" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="108" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">375</font></p align="right">
</td>
<td width="55" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="119" colspan="1" rowspan="1" >
<p>
<font size="2">2007</font></p>
</td>
<td width="117" colspan="3" rowspan="1" >
<p align="right">
<font size="2">107</font></p align="right">
</td>
<td width="66" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="112" colspan="3" rowspan="1" >
<p align="right">
<font size="2">-</font></p align="right">
</td>
<td width="63" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="108" colspan="2" rowspan="1" >
<p align="right">
<font size="2">107</font></p align="right">
</td>
<td width="55" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="119" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Thereafter</font></p>
</td>
<td width="57" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="60" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">371</font></p>
</td>
<td width="66" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="51" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="61" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-</font></p>
</td>
<td width="63" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="37" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="71" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">371</font></p>
</td>
<td width="55" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="119" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="57" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="60" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">$&nbsp;&nbsp;36,458</font></p>
</td>
<td width="32" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>

<td width="34" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="51" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="61" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">$&nbsp;&nbsp;25,566</font></p>
</td>
<td width="63" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="37" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="71" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">$&nbsp;&nbsp;62,024</font></p>
</td>
<td width="55" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
</table></div>
<p>
<b>
<font size="2">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES</font></b><p>
<font size="2">SFAS No. 133 "Accounting for Derivative Instruments and Hedging Activities",
establishes accounting and reporting standards requiring that every derivative
instrument (including certain derivatives embedded in other contracts) be
recorded in the balance sheet as either an asset or liability measured at its
fair value. SFAS No. 133 requires that changes in the derivatives fair value be
recognized currently in earnings unless specific hedge criteria are met. Special
accounting for qualifying hedges allows a derivative&#8217;s gains and losses to
offset related results on the hedged item on the income statement, and requires
that the Company must formally document, designate, and assess the effectiveness
of transactions that receive hedge accounting.</font></p><p>
<font size="2">In October 2001, the Company obtained interest rate swaps as required by terms
in its Senior Credit Facility to hedge exposure to market fluctuations. The
interest rate swaps cover $40.0 million in notional amounts of variable rate
debt and with fixed rates ranging from 2.535% to 3.920%. The swaps expire
annually from October 2002 to October 2004. Because the Company hedges only with
derivatives that have high correlation with the underlying transaction pricing,
changes in derivatives fair values and the underlying pricing largely offset.
The hedges were deemed to be fully effective resulting in a pretax loss of
$12,000 recorded in Other Comprehensive Loss at December 31, 2001. Upon
expiration of these hedges, the amount recorded in Other Comprehensive Loss will
be reclassified into earnings as interest.  Subsequent to year end December 31,
2001, the borrowing base was converted from LIBOR to prime, which rendered the
swap ineffective as a hedge. Accordingly, concurrent with the conversion, the
Company prematurely terminated the swap in February 2002 at a cost of $341,000.
The resulting loss will be recorded in Other Comprehensive Loss in February 2002
and reclassified to earning as interest expense over the term of the Senior
Credit Facility.</font></p><p>
<font size="2">As described in Note 8, the Junior Credit Facility contains provisions for the
issuance of warrants of up to 0.5% of the outstanding shares of the
Company&#8217;s common stock on July 2002 and up to an additional 1.5% in July
2003.  The warrants were valued as of July 2001 based on the estimated relative
fair value using the Black Scholes model with the following assumptions:
risk-free rate of 4.9% estimated life of 7 years, 72% volatility and no dividend
yield.  Accordingly, the Company has recorded a liability and makes periodic
mark to market adjustments, which are reflected in the accompanying consolidated
statement of operations in accordance with EITF Issue 00-19, &#8220;Accounting
for Derivative Financial Instruments Indexed to, and Potentially Settled in, a
Company&#8217;s Own Stock&#8221;.  At&nbsp;December 31, 2002, the related
liability was $362,000 and is included in accrued liabilities in the
accompanying consolidated financial statements.</font></p><p align="center">
<font face="Times New Roman" size="2">C-24<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<b>
<font size="2">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;STOCK-BASED COMPENSATION PLANS</font></b><p>
<font size="2">In accordance with the Company&#8217;s stock-based compensation plans, the
Company may grant incentive stock options as well as non-qualified and other
stock-related incentives to officers, employees, and non-employee directors of
the Company. Options vest ratably over a two to four-year period beginning on
the grant date and expire ten years from the date of grant. Shares available for
granting options at December 31, 2002 and 2001, and April 30, 2001 were
approximately 0.5 million, 0.4 million, and 0.5 million, respectively.</font></p><p>
<font size="2">A summary of the activity of stock options for the year ended December 31, 2002,
the eight months ended December 31, 2001 and the years ended April 30, 2001, and
2000, is presented below (shares in thousands):</font></p>
<div align="center">
  <table border="0" cellspacing="0" cellpadding="0" width="693" style="border-collapse: collapse; background-color: white" fpTblFormat="11;010101100" bordercolor="#111111">
<tr valign="top">
<td width="167" style="background-color: #FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="122" colspan="2" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1; background-color: #FFFFDD" >
<p align="center">
<font size="2">December 31, 2002</font></p align="center">
</td>
<td width="12" rowspan="1" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="127" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1; background-color: #FFF3CE" >
<p align="center">
<font size="2">December 31, 2001</font></p align="center">
</td>
<td width="12" style="background-color: #FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="125" colspan="2" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1; background-color: #FFFFDD" >
<p align="center">
<font size="2">April 30, 2001</font></p align="center">
</td>
<td width="13" rowspan="1" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="115" colspan="2" style="border-bottom-style: solid; border-bottom-width: 1; background-color: #FFF3CE" >
<p align="center">
<font size="2">April 30, 2000</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="167" valign="bottom" style="background-color: #FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="65" valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1; background-color: #FFFFDD" >
<p align="center">
<font size="2">Shares<br>
Under<br>
Option</font></td>
<td width="57" valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1; background-color: #FFF3CE" >
<p align="center">
<font size="2">Weighted<br>Average<br>Exercise<br>
Price</font></p align="center">
</td>
<td width="12" valign="bottom" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="60" valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1; background-color: #FFF3CE" >
<p align="center">
<font size="2">
<br>Shares<br>Under<br>Option</font></p align="center">
</td>
<td width="67" valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1; background-color: #FFFFDD" >
<p align="center">
<font size="2">Weighted<br>Average<br>Exercise<br>
&nbsp;Price</font></p align="center">
</td>
<td width="12" valign="bottom" style="background-color: #FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="58" valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1; background-color: #FFFFDD" >
<p align="center">
<font size="2">
<br>Shares<br>Under<br>Option</font></p align="center">
</td>
<td width="67" valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1; background-color: #FFF3CE" >
<p align="center">
<font size="2">Weighted<br>Average<br>Exercise<br>Price</font></p align="center">
</td>
<td width="13" valign="bottom" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="51" valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1; background-color: #FFF3CE" >
<p align="center">
<font size="2">Shares<br>Under<br>Option</font></p align="center">
</td>
<td width="64" valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1; background-color: #FFFFDD" >
<p align="center">
<font size="2">Weighted<br>Average<br>Exercise<br>Price</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="167" style="background-color: #FFF3CE" >
<p style="margin-top: 10">
<font size="2">Outstanding at Beginning<br>
&nbsp;&nbsp;&nbsp;of Period</font></p>
</td>
<td width="65" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1; background-color: #FFFFDD" >

<p align="right" style="margin-top: 10">
<font size="2">948</font></p align="right">
</td>
<td width="57" style="border-top-style: solid; border-top-width: 1; background-color: #FFF3CE" >
<p align="right" style="margin-top: 10">
<font size="2">$19.49</font></p align="right">
</td>
<td width="12" rowspan="1" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="60" style="border-top-style: solid; border-top-width: 1; background-color: #FFF3CE" >
<p align="right" style="margin-top: 10">
<font size="2">789</font></p align="right">
</td>
<td width="67" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1; background-color: #FFFFDD" >
<p align="right" style="margin-top: 10">
<font size="2">$23.36</font></p align="right">
</td>
<td width="12" style="background-color: #FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="58" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1; background-color: #FFFFDD" >
<p align="right" style="margin-top: 10">
<font size="2">1,010</font></p align="right">
</td>
<td width="67" style="border-top-style: solid; border-top-width: 1; background-color: #FFF3CE" >
<p align="right" style="margin-top: 10">
<font size="2">$32.61</font></p align="right">
</td>
<td width="13" rowspan="1" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="51" style="border-top-style: solid; border-top-width: 1; background-color: #FFF3CE" >
<p align="right" style="margin-top: 10">
<font size="2">1,033</font></p align="right">
</td>
<td width="64" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1; background-color: #FFFFDD" >
<p align="right" style="margin-top: 10">
<font size="2">$37.13</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="167" style="background-color: #FFF3CE" >
<p>
<font size="2">    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Granted</font></p>
</td>
<td width="65" colspan="1" rowspan="1" style="background-color: #FFFFDD" >
<p align="right">
<font size="2">28</font></p align="right">

</td>
<td width="57" style="background-color: #FFF3CE" >
<p align="right">
<font size="2">3.37</font></p align="right">
</td>
<td width="12" rowspan="1" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="60" style="background-color: #FFF3CE" >
<p align="right">
<font size="2">175</font></p align="right">
</td>
<td width="67" colspan="1" rowspan="1" style="background-color: #FFFFDD" >
<p align="right">
<font size="2">3.38</font></p align="right">
</td>
<td width="12" style="background-color: #FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="58" colspan="1" rowspan="1" style="background-color: #FFFFDD" >
<p align="right">
<font size="2">100</font></p align="right">
</td>
<td width="67" style="background-color: #FFF3CE" >
<p align="right">
<font size="2">6.11</font></p align="right">
</td>
<td width="13" rowspan="1" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="51" style="background-color: #FFF3CE" >
<p align="right">
<font size="2">160</font></p align="right">
</td>
<td width="64" colspan="1" rowspan="1" style="background-color: #FFFFDD" >
<p align="right">
<font size="2">14.56</font></p align="right">
</td>
</tr>
<tr valign="top">


<td width="167" style="background-color: #FFF3CE" >
<p>
<font size="2">    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exercised</font></p>
</td>
<td width="65" colspan="1" rowspan="1" style="background-color: #FFFFDD" >
<p align="right">
<font size="2">--</font></p align="right">
</td>
<td width="57" style="background-color: #FFF3CE" >
<p align="right">
<font size="2">--</font></p align="right">
</td>
<td width="12" rowspan="1" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="60" style="background-color: #FFF3CE" >
<p align="right">
<font size="2">---</font></p align="right">
</td>
<td width="67" colspan="1" rowspan="1" style="background-color: #FFFFDD" >
<p align="right">
<font size="2">----</font></p align="right">
</td>
<td width="12" style="background-color: #FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="58" colspan="1" rowspan="1" style="background-color: #FFFFDD" >
<p align="right">
<font size="2">(1)</font></p align="right">
</td>
<td width="67" style="background-color: #FFF3CE" >
<p align="right">
<font size="2">11.67</font></p align="right">
</td>
<td width="13" rowspan="1" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="51" style="background-color: #FFF3CE" >
<p align="right">
<font size="2">(8)</font></p align="right">
</td>
<td width="64" colspan="1" rowspan="1" style="background-color: #FFFFDD" >
<p align="right">
<font size="2">12.73</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="167" style="background-color: #FFF3CE" >
<p>
<font size="2">    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Forfeited and cancelled</font></p>
</td>
<td width="65" colspan="1" rowspan="1" style="background-color: #FFFFDD" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(215)</font></p>
</td>
<td width="57" style="background-color: #FFF3CE" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;&nbsp;16.91</font></p>
</td>
<td width="12" rowspan="1" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="60" style="background-color: #FFF3CE" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">&nbsp;(16)</font></p>
</td>
<td width="67" colspan="1" rowspan="1" style="background-color: #FFFFDD" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">34.43</font></p>
</td>
<td width="12" style="background-color: #FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="58" colspan="1" rowspan="1" style="background-color: #FFFFDD" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(320)</font></p>
</td>
<td width="67" style="background-color: #FFF3CE" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">47.20</font></p>
</td>
<td width="13" rowspan="1" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="51" style="background-color: #FFF3CE" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(175)</font></p>
</td>
<td width="64" colspan="1" rowspan="1" style="background-color: #FFFFDD" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">43.56</font></p>
</td>
</tr>
<tr valign="top">
<td width="167" style="background-color: #FFF3CE" >
<p>
<font size="2">Outstanding at End of Period</font></p>
</td>
<td width="65" colspan="1" rowspan="1" style="background-color: #FFFFDD" >
<p align="right" style="border-bottom:double">
<font size="2">  761</font></p>
</td>
<td width="57" style="background-color: #FFF3CE" >
<p align="right" style="border-bottom:double">
<font size="2">$19.58</font></p>
</td>
<td width="12" rowspan="1" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="60" style="background-color: #FFF3CE" >
<p align="right" style="border-bottom:double">
<font size="2"> 948</font></p>
</td>
<td width="67" colspan="1" rowspan="1" style="background-color: #FFFFDD" >
<p align="right" style="border-bottom:double">
<font size="2"> $19.49</font></p>
</td>
<td width="12" style="background-color: #FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="58" colspan="1" rowspan="1" style="background-color: #FFFFDD" >
<p align="right" style="border-bottom:double">
<font size="2">  789</font></p>
</td>
<td width="67" style="background-color: #FFF3CE" >
<p align="right" style="border-bottom:double">
<font size="2">$23.36</font></p>
</td>
<td width="13" rowspan="1" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="51" style="background-color: #FFF3CE" >
<p align="right" style="border-bottom:double">
<font size="2">1,010</font></p>
</td>
<td width="64" colspan="1" rowspan="1" style="background-color: #FFFFDD" >
<p align="right" style="border-bottom:double">
<font size="2">$32.61</font></p>
</td>
</tr>
<tr valign="top">
<td width="167" style="background-color: #FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="65" colspan="1" rowspan="1" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="57" style="background-color: #FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="12" rowspan="1" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="60" style="background-color: #FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="67" colspan="1" rowspan="1" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="12" style="background-color: #FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="58" colspan="1" rowspan="1" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="67" style="background-color: #FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="13" rowspan="1" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="51" style="background-color: #FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="64" colspan="1" rowspan="1" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="167" style="background-color: #FFF3CE" >
<p>
<font size="2">Options exercisable at year<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;end</font></p>
</td>
<td width="65" valign="bottom" style="background-color: #FFFFDD" >
<p align="right" style="border-bottom:double">
<font size="2">&nbsp;&nbsp;648</font></p>
</td>
<td width="57" valign="bottom" style="background-color: #FFF3CE" >
<p align="right">
<font size="2">$22.22</font></p align="right">
</td>
<td width="12" valign="bottom" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="60" valign="bottom" style="background-color: #FFF3CE" >
<p align="right" style="border-bottom:double">
<font size="2">&nbsp;646</font></p>
</td>
<td width="67" valign="bottom" style="background-color: #FFFFDD" >
<p align="right">
<font size="2">$25.18</font></p align="right">
</td>
<td width="12" valign="bottom" style="background-color: #FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="58" valign="bottom" style="background-color: #FFFFDD" >
<p align="right" style="border-bottom:double">
<font size="2">&nbsp;&nbsp;588</font></p>
</td>
<td width="67" valign="bottom" style="background-color: #FFF3CE" >
<p align="right">
<font size="2">$25.76</font></p align="right">
</td>
<td width="13" valign="bottom" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="51" valign="bottom" style="background-color: #FFF3CE" >
<p align="right" style="border-bottom:double">
<font size="2">&nbsp;&nbsp;&nbsp;665</font></p>
</td>
<td width="64" valign="bottom" style="background-color: #FFFFDD" >
<p align="right">
<font size="2">$32.73</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="167" style="background-color: #FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="65" valign="bottom" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="57" valign="bottom" style="background-color: #FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="12" valign="bottom" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="60" valign="bottom" style="background-color: #FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="67" valign="bottom" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="12" valign="bottom" style="background-color: #FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="58" valign="bottom" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="67" valign="bottom" style="background-color: #FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="13" valign="bottom" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="51" valign="bottom" style="background-color: #FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="64" valign="bottom" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="167" style="background-color: #FFF3CE" >
<p>
<font size="2">Weighted average fair value<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of options granted</font></p>
</td>
<td width="65" valign="bottom" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="57" valign="bottom" style="background-color: #FFF3CE" >
<p align="right">
<font size="2">$1.88</font></p align="right">
</td>
<td width="12" valign="bottom" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="60" valign="bottom" style="background-color: #FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="67" valign="bottom" style="background-color: #FFFFDD" >
<p align="right">
<font size="2">$1.92</font></p align="right">
</td>
<td width="12" valign="bottom" style="background-color: #FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="58" valign="bottom" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="67" valign="bottom" style="background-color: #FFF3CE" >
<p align="right">
<font size="2">$3.60</font></p align="right">
</td>
<td width="13" valign="bottom" style="background-color: #FFFFDD" >
<font size="2">&nbsp;</font></td>
<td width="51" valign="bottom" style="background-color: #FFF3CE" >
<font size="2">&nbsp;</font></td>
<td width="64" valign="bottom" style="background-color: #FFFFDD" >
<p align="right">
<font size="2">$9.50</font></p align="right">
</td>
</tr>
</table></div>
<p>
<font size="2">A summary of options outstanding under the Company&#8217;s stock-based
compensation plans at December 31, 2002 is presented below (shares in
thousands):</font></p align="center">
<div align="center" style="position:relative; left: 0">
  <table border="0" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" cellpadding="0" width="666">
<tr valign="top">
<td width="153" colspan="3" bgcolor=#FFF3CE valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">

<p align="center">
<font size="2">
Exercise<br>
Price Range</font></td>
<td width="16" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="74" bgcolor=#FFF3CE valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center">
<font size="2">
Shares<br>
Under<br>
Option</font></td>
<td width="16" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="134" colspan="3" bgcolor=#FFF3CE valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center">
<font size="2">Weighted Average<br>Exercise Price of<br>Options<br>
Outstanding</font></p align="center">
</td>
<td width="7" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="102" colspan="3" bgcolor=#FFF3CE valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center">
<font size="2">Weighted<br>Average<br>Remaining<br>
Life</font></p align="center">
</td>
<td width="16" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="79" colspan="3" bgcolor=#FFF3CE valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center">
<font size="2">
Options<br>Exercisable</font></p align="center">
</td>
<td width="16" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="117" colspan="3" bgcolor=#FFF3CE valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center">
<font size="2">
Weighted Average<br>Exercise Price of <br>shares Exercisable</font></p align="center">
</td>
</tr>
<tr valign="top">
<td width="91" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<font size="2">&nbsp;</font></td>
<td width="23" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<font size="2">&nbsp;</font></td>
<td width="39" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<font size="2">&nbsp;</font></td>
<td width="16" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="74" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<font size="2">&nbsp;</font></td>
<td width="16" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="134" colspan="3" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<font size="2">&nbsp;</font></td>
<td width="7" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="102" colspan="3" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<font size="2">&nbsp;</font></td>
<td width="16" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="79" colspan="3" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<font size="2">&nbsp;</font></td>
<td width="16" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="117" colspan="3" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="91" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$  3.05</font></p align="right">
</td>
<td width="23" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">-</font></p align="right">
</td>
<td width="39" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">

<font size="2">$17.50</font></p align="right">
</td>
<td width="16" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="74" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">428</font></p align="right">
</td>
<td width="16" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="48" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="53" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.15</font></p align="right">
</td>
<td width="33" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="7" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="78" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">5.2</font></p align="right">
</td>
<td width="24" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="16" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="61" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">315</font></p align="right">
</td>
<td width="18" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="16" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="94" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.48</font></p align="right">
</td>
<td width="23" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="91" colspan="1" rowspan="1" >
<p align="right">
<font size="2">  18.89</font></p align="right">
</td>
<td width="23" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-</font></p align="right">
</td>
<td width="39" colspan="1" rowspan="1" >
<p align="right">
<font size="2">  27.41</font></p align="right">
</td>
<td width="16" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="74" colspan="1" rowspan="1" >
<p align="right">
<font size="2">158</font></p align="right">
</td>
<td width="16" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" >
<p align="right">
<font size="2"> 19.45</font></p align="right">
</td>
<td width="33" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="7" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="78" colspan="2" rowspan="1" >
<p align="right">
<font size="2">3.4</font></p align="right">
</td>
<td width="24" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="16" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="61" colspan="2" rowspan="1" >
<p align="right">
<font size="2">158</font></p align="right">
</td>
<td width="18" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="16" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="94" colspan="2" rowspan="1" >
<p align="right">
<font size="2">19.45</font></p align="right">
</td>
<td width="23" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="91" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">  28.75</font></p align="right">
</td>
<td width="23" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">-</font></p align="right">
</td>
<td width="39" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">  38.44</font></p align="right">
</td>
<td width="16" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="74" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">87</font></p align="right">
</td>
<td width="16" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">34.78</font></p align="right">
</td>
<td width="33" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="7" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="78" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">4.1</font></p align="right">
</td>
<td width="24" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="16" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="61" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2"> 87</font></p align="right">
</td>
<td width="18" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="16" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="94" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2"> 34.78</font></p align="right">
</td>
<td width="23" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="91" colspan="1" rowspan="1" >
<p align="right">
<font size="2">  43.96</font></p align="right">
</td>
<td width="23" colspan="1" rowspan="1" >
<p align="right">
<font size="2">-</font></p align="right">
</td>
<td width="39" colspan="1" rowspan="1" >
<p align="right">
<font size="2">  64.38</font></p align="right">
</td>
<td width="16" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="74" colspan="1" rowspan="1" >
<p align="right">
<font size="2">61</font></p align="right">
</td>
<td width="16" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="101" colspan="2" rowspan="1" >
<p align="right">
<font size="2">54.73</font></p align="right">
</td>
<td width="33" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="7" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="78" colspan="2" rowspan="1" >
<p align="right">
<font size="2">3.0</font></p align="right">
</td>
<td width="24" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="16" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="61" colspan="2" rowspan="1" >
<p align="right">
<font size="2"> 61</font></p align="right">
</td>
<td width="18" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="16" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="94" colspan="2" rowspan="1" >
<p align="right">
<font size="2"> 54.73</font></p align="right">

</td>
<td width="23" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="91" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">  67.50</font></p align="right">
</td>
<td width="23" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">-</font></p align="right">
</td>
<td width="39" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">  84.06</font></p align="right">
</td>
<td width="16" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="74" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">27</font></p>
</td>
<td width="16" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="48" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="53" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">73.49</font></p>
</td>
<td width="33" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="7" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="24" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="54" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">3.7</font></p>
</td>
<td width="24" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="16" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="17" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="44" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> 27</font></p>
</td>
<td width="18" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="16" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="46" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="48" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"> 73.49</font></p>
</td>
<td width="23" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="153" colspan="3" rowspan="1" >
<p align="right">
<font size="2">Total</font></p align="right">
</td>
<td width="16" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="74" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;761</font></p>
</td>
<td width="16" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="48" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="53" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.58</font></p>
</td>
<td width="33" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="7" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="24" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="54" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">4.5</font></p>
</td>
<td width="24" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="16" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="17" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="44" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">648</font></p>
</td>
<td width="18" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="16" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="46" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="48" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.22</font></p>
</td>
<td width="23" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
</table></div>
<p align="center">
<font face="Times New Roman" size="2">C-25<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<b>
<font size="2">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;COMMITMENTS AND CONTINGENCIES</font></b><p>
<i><font size="2">Commitments</font></i><p>
<font size="2">The Company has entered into various operating leases for buildings, office
equipment, and trucks. Rental expense under these leases for continuing
operations was $487,000, $489,000, $642,000, and $624,000, for the year ended
December 31, 2002, the eight months ended December 31, 2001 and the fiscal years ended April 30, 2001, and 2000, respectively. Rental expense under
these leases for discontinued operations was $10,395,000, $7,934,000,
$13,111,000, and $13,988,000, for the year ended December 31, 2002, the eight
months ended December 31, 2001, and the fiscal years ended April 30, 2001 and
2002, respectively.  The lease and rental expense from discontinued operations
includes approximately $640,000 annually in payments to former owners of
businesses that the Company has acquired and covers properties used in the
acquired business&#8217; operations.</font></p><p>
<font size="2">At December 31, 2002, future minimum lease payments under non-cancelable
operating leases for the next five fiscal years are as follows (in
thousands):</font></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="138.666632" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="178.666622" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<u><font size="2">Continuing Operations</font></u></p align="center">
</td>
<td width="165.333292" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<u><font size="2">Discontinued Operations</font></u></p align="center">
</td>
<td width="158.666627" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center">
<u><font size="2">Total</font></u></p align="center">
</td>
</tr>
<tr valign="top">
<td width="138.666632" colspan="1" rowspan="1" >
<p style="margin-top: 10">
<font size="2">2003</font></p>
</td>
<td width="106.666640" colspan="1" rowspan="1" >
<p align="right" style="margin-top: 10">
<font size="2">$347</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p style="margin-top: 10">
<font size="2">&nbsp;</font></td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right" style="margin-top: 10">
<font size="2">$6,995</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<p style="margin-top: 10">
<font size="2">&nbsp;</font></td>
<td width="99.999975" colspan="1" rowspan="1" >
<p align="right" style="margin-top: 10">
<font size="2">$7,342</font></p align="right">
</td>
<td width="58.666652" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="138.666632" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">2004</font></p>
</td>
<td width="106.666640" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">253</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="93.333310" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">5,173</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>

<td width="99.999975" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">5,426</font></p align="right">
</td>
<td width="58.666652" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="138.666632" colspan="1" rowspan="1" >
<p>
<font size="2">2005</font></p>
</td>
<td width="106.666640" colspan="1" rowspan="1" >
<p align="right">
<font size="2">130</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3,218</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="99.999975" colspan="1" rowspan="1" >
<p align="right">
<font size="2">3,348</font></p align="right">
</td>
<td width="58.666652" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="138.666632" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">2006</font></p>
</td>
<td width="106.666640" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">63</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="93.333310" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">1,681</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="99.999975" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">1,744</font></p align="right">
</td>
<td width="58.666652" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="138.666632" colspan="1" rowspan="1" >
<p>
<font size="2">2007</font></p>
</td>
<td width="106.666640" colspan="1" rowspan="1" >
<p align="right">
<font size="2">45</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right">
<font size="2">579</font></p align="right">
</td>
<td width="71.999982" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="99.999975" colspan="1" rowspan="1" >
<p align="right">
<font size="2">624</font></p align="right">
</td>
<td width="58.666652" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
</table></div>
<p>

<i><font size="2">Contingencies</font></i><p>
<font size="2">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. The Company has established accruals for matters that are probable
and reasonably estimable and maintains product liability and other insurance
that management believes to be adequate. Management believes that any liability
that may ultimately result from the resolution of these matters in excess of
available insurance coverage and accruals will not have a material adverse
effect on the consolidated financial position or results of operations of the
Company.</font></p><p>
<b>
<font size="2">12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INCOME TAXES</font></b><p>
<font size="2">Deferred tax assets and liabilities are determined based on the differences
between the financial and tax bases of existing assets and liabilities using the
currently enacted tax rates in effect for the year in which the differences are
expected to reverse.</font></p><p>
<font size="2">The (benefit) provision for income taxes on income from continuing operations
consisted of the following for the year ended December 31, 2002, the eight
months ended December 31, 2001 and the years ended April 30, 2001, and 2000 (in
thousands):</font></p>
<p>
<font size="2">&nbsp;</font></p>
<p>
<font size="2">&nbsp;</font></p>
<p align="center">
<font face="Times New Roman" size="2">C-26<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<div align="center" style="position:relative; left: 0">
  <table border=0 cellpadding=0 cellspacing =0 width="635" >
<tr valign="top">
<td width="142" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="121" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">December 31, 2002</font></p>
</td>
<td width="17" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="127" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">December 31, 2001</font></p>
</td>
<td width="19" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="99" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">April 30, 2001</font></p>
</td>
<td width="17" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="93" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">April 30, 2000</font></p>
</td>
</tr>
<tr valign="top">
<td width="142" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="121" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="17" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="127" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="19" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="99" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="17" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="93" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="142" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Current:</font></p>
</td>
<td width="121" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="17" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="127" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="19" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="99" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="17" colspan="1" rowspan="1" bgcolor=#FFF3CE>

<font size="2">&nbsp;</font></td>
<td width="93" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="142" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal</font></p>
</td>
<td width="20" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="101" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(4,247)</font></p align="right">
</td>
<td width="17" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="29" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="98" colspan="1" rowspan="1" >
<p align="right">
<font size="2">--&nbsp;</font></p align="right">
</td>
<td width="19" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="28" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="71" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2,476&nbsp;</font></p align="right">
</td>
<td width="17" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="20" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="73" colspan="1" rowspan="1" >
<p align="right">
<font size="2">4,847&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="142" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State</font></p>
</td>
<td width="121" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">297&nbsp;</font></p align="right">
</td>
<td width="17" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="127" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">319&nbsp;&nbsp; </font>  </p align="right">
</td>
<td width="19" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="99" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">--&nbsp;</font></p align="right">
</td>
<td width="17" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="93" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">1,400&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="142" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign</font></p>
</td>
<td width="121" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">533&nbsp;</font></p>
</td>
<td width="17" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="127" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">388&nbsp;</font></p>
</td>
<td width="19" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="99" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">190&nbsp;</font></p>
</td>
<td width="17" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="93" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">594&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="142" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="121" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(3,417)</font></p>
</td>
<td width="17" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="127" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">707&nbsp;</font></p>
</td>
<td width="19" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="99" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">2,666&nbsp;</font></p>
</td>
<td width="17" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="93" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">6,841&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="142" colspan="1" rowspan="1" >
<p>
<font size="2">Deferred:</font></p>
</td>
<td width="121" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="17" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="127" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="19" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="99" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="17" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="93" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="142" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Federal</font></p>
</td>
<td width="121" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">6,620&nbsp;</font></p align="right">
</td>
<td width="17" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="127" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">1,863&nbsp;</font></p align="right">
</td>
<td width="19" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="99" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(179)</font></p align="right">
</td>
<td width="17" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="93" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(168)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="142" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;State</font></p>
</td>
<td width="121" colspan="2" rowspan="1" >
<p align="right">
<font size="2">(177)</font></p align="right">
</td>
<td width="17" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="127" colspan="2" rowspan="1" >
<p align="right">
<font size="2">206&nbsp;</font></p align="right">
</td>
<td width="19" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="99" colspan="2" rowspan="1" >
<p align="right">
<font size="2">(21)</font></p align="right">
</td>
<td width="17" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="93" colspan="2" rowspan="1" >
<p align="right">
<font size="2">(20)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="142" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign</font></p>
</td>
<td width="121" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">191&nbsp;</font></p>
</td>
<td width="17" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="127" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(357)</font></p>
</td>
<td width="19" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="99" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">67&nbsp;</font></p>
</td>
<td width="17" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="93" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(148)</font></p>
</td>
</tr>
<tr valign="top">
<td width="142" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="121" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">6,634&nbsp;</font></p>
</td>
<td width="17" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="127" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">1,712&nbsp;</font></p>
</td>
<td width="19" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="99" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(133)</font></p>
</td>
<td width="17" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="93" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(336)</font></p>
</td>
</tr>
<tr valign="top">
<td width="142" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="20" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="101" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">3,217&nbsp;</font></p>
</td>
<td width="17" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="29" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="98" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">2,419&nbsp;</font></p>
</td>
<td width="19" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="28" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="71" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">2,533&nbsp;</font></p>
</td>
<td width="17" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="20" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="73" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">6,505&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
<font size="2">The principal differences between the federal statutory tax rate and the income
expense (benefit) from continuing operations for the year ended December 31,
2002, the eight months ended December 31, 2001, and the years ended April 30,
2001 and 2000 were as follows (in thousands):</font></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="190.666619" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="118.666637" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">December 31, 2002</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="122.666636" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">December 31, 2001</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">April 30, 2001</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="94.666643" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">April 30, 2000</font></p>
</td>
</tr>
<tr valign="top">

<td width="190.666619" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="118.666637" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="122.666636" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="95.999976" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="94.666643" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="190.666619" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Federal statutory tax rate</font></p>
</td>
<td width="118.666637" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">34.0%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="122.666636" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">34.0%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">34.0%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="94.666643" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">34.0%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="190.666619" colspan="1" rowspan="1" >
<p>
<font size="2">State taxes, net of federal tax<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;benefit</font></p>
</td>
<td width="118.666637" colspan="1" rowspan="1" >
<p align="right">
<font size="2">1.2%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="122.666636" colspan="1" rowspan="1" >
<p align="right">
<font size="2">9.7%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(0.3)%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="94.666643" colspan="1" rowspan="1" >
<p align="right">
<font size="2">9.3%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="190.666619" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Non-deductible goodwill<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;amortization and impairment<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;charges</font></p>
</td>
<td width="118.666637" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">0.2%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="122.666636" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">5.7%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">2.0%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="94.666643" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">21.5%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="190.666619" colspan="1" rowspan="1" >
<p>
<font size="2">Excess of foreign tax over US<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;tax on foreign income</font></p>
</td>
<td width="118.666637" colspan="1" rowspan="1" >
<p align="right">
<font size="2">7.6%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="122.666636" colspan="1" rowspan="1" >
<p align="right">
<font size="2">0.2%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right">
<font size="2">2.5%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="94.666643" colspan="1" rowspan="1" >
<p align="right">
<font size="2">1.0%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="190.666619" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Other</font></p>
</td>
<td width="118.666637" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">4.7%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="122.666636" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">6.7%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="95.999976" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(8.6)%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="94.666643" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">1.2%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>
<tr valign="top">
<td width="190.666619" colspan="1" rowspan="1" >
<p>
<font size="2">Effective tax rate</font></p>
</td>
<td width="118.666637" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">47.7%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="122.666636" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">56.3%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="95.999976" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">29.6%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="94.666643" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">67.0%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>
</table></div>
<p>
<font size="2">Deferred income tax assets and liabilities at December 31, 2002 and 2001 and
April 30, 2001 reflect the impact of temporary differences between the amounts
of assets and liabilities for financial reporting and income tax reporting
purposes. Temporary differences and carry forwards which give rise to deferred
tax assets and liabilities at December 31, 2002 and 2001 and April 30, 2001 are
as follows (in thousands):</font></p>
<div align="center"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="237.333274" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="110.666639" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">December 31, 2002</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="111.999972" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">December 31, 2001</font></p>
</td>
<td width="33.333325" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="87.999978" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="center" style="border-bottom:solid windowtext .5pt">
<font size="2">April 30, 2001</font></p>
</td>
</tr>
<tr valign="top">
<td width="237.333274" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="110.666639" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="21.333328" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="111.999972" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="33.333325" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="87.999978" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>


</tr>
<tr valign="top">
<td width="237.333274" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Deferred tax assets:</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="111.999972" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="33.333325" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="87.999978" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="237.333274" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Allowance for
doubtful accounts</font></p>
</td>
<td width="19.999995" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="90.666644" colspan="1" rowspan="1" >
<p align="right">
<font size="2">305&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="33.333325" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="78.666647" colspan="1" rowspan="1" >
<p align="right">
<font size="2">1,149&nbsp;</font></p align="right">
</td>
<td width="33.333325" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="19.999995" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$</font></p align="right">
</td>
<td width="67.999983" colspan="1" rowspan="1" >
<p align="right">
<font size="2">724</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="237.333274" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accruals and
reserves</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">1,326&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="111.999972" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">5,892&nbsp;</font></p align="right">
</td>
<td width="33.333325" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="87.999978" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">4,526</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="237.333274" colspan="1" rowspan="1" >
<p>
<font size="2">Federal net operating loss carryforward</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" >
<p align="right">
<font size="2">17,542&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="111.999972" colspan="2" rowspan="1" >
<p align="right">
<font size="2">15,776&nbsp;</font></p align="right">
</td>
<td width="33.333325" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="87.999978" colspan="2" rowspan="1" >
<p align="right">
<font size="2">12,482</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="237.333274" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">Deductible goodwill and impairment charges</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(33)</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="111.999972" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">4,758&nbsp;</font></p align="right">
</td>
<td width="33.333325" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="87.999978" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">948</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="237.333274" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">272&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="111.999972" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">1,545&nbsp;</font></p>
</td>
<td width="33.333325" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="87.999978" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">1,667</font></p>
</td>
</tr>
<tr valign="top">

<td width="237.333274" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deferred tax
assets</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">19,412&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="111.999972" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">29,120&nbsp;</font></p>
</td>
<td width="33.333325" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="87.999978" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">20,347</font></p>
</td>
</tr>
<tr valign="top">
<td width="237.333274" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less valuation
allowance</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(13,601)</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="111.999972" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(7,111)</font></p>
</td>
<td width="33.333325" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="87.999978" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">-</font></p>
</td>
</tr>
<tr valign="top">
<td width="237.333274" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net deferred tax
asset</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">5,811&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="111.999972" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">22,009&nbsp;</font></p align="right">
</td>
<td width="33.333325" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="87.999978" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">20,347</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="237.333274" colspan="1" rowspan="1" >
<p>
<font size="2">Deferred tax liabilities:</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="21.333328" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="111.999972" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="33.333325" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="87.999978" colspan="2" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="237.333274" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property, plant, and
equipment</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">5,811&nbsp;</font></p align="right">
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="111.999972" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">7,454&nbsp;</font></p align="right">
</td>
<td width="33.333325" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="87.999978" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">7,433</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="237.333274" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">--&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="111.999972" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">5,162&nbsp;</font></p>
</td>
<td width="33.333325" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="87.999978" colspan="2" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">2,386</font></p>
</td>
</tr>
<tr valign="top">
<td width="237.333274" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total deferred tax
liabilities</font></p>
</td>
<td width="110.666639" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">5,811</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="111.999972" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">12,616&nbsp;</font></p>
</td>
<td width="33.333325" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="87.999978" colspan="2" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">9,819</font></p>
</td>
</tr>
<tr valign="top">
<td width="237.333274" colspan="1" rowspan="1" >
<p>
<font size="2">Net deferred tax asset</font></p>
</td>
<td colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="90.666644" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2"> --&nbsp;</font></p>
</td>
<td width="21.333328" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="33.333325" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="78.666647" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2"> 9,393&nbsp;</font></p>
</td>
<td width="33.333325" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">$</font></p>
</td>
<td width="67.999983" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">10,528</font></p>
</td>
</tr>
</table></div>
<p align="center">
<font face="Times New Roman" size="2">C-27<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<font size="2">Included in the Company&#8217;s noncurrent assets of discontinued operations at
December 31, 2002, is a net noncurrent deferred tax asset of $7.2 million
relating primarily to tax deductible goodwill and reserves that are not
deductible for tax purposes until paid.  In addition, the Company&#8217;s noncurrent liabilities of discontinued operations at December 31, 2002, include
noncurrent deferred tax liability of $2.7 million related primarily to
differences in the book and tax bases of fixed assets.  The net deferred tax
asset of $4.4 million has a full valuation allowance.</font></p><p>
<font size="2">As of December 31, 2002, the Company had federal net operating loss
carryforwards of approximately $50.4 million which will expire between 2004 and
2022.  While the majority of these loss carryforwards are associated with the
Company&#8217;s discontinued operations, the Company has classified the related
deferred tax asset and valuation allowance as a component of continuing
operations since it believes it will be able to retain these tax attributes.  In
addition, the Company had charitable contributions and capital loss
carryforwards of $1.4 million that may be carried forward through 2006 and an AMT
credit carryforward of $0.2 million, which may be carried forward
indefinitely.</font></p><p>
<font size="2">A consolidated valuation allowance of $7.1 million related to rationalization of
net operating loss carryforwards generated by the Company&#8217;s discontinued
operations was established as of December 31, 2001. The allowance reflects the
Company&#8217;s recognition that continuing losses from operations and certain
liquidity matters discussed in Note 2&nbsp;indicate that it is more likely than
not that certain future tax benefits will not be realized as a result of future
taxable income.  At December 31, 2002, the Company recorded a full valuation
allowance against its net deferred tax asset from continuing and discontinuing
operations totalling approximately $18.0 million.</font></p><p>
<font size="2">As of December 31, 2002, the Company has state net operating loss carryforwards
of approximately $97.0 million.  As the Company believes that realization of the
benefit of these state losses is remote, it has not recorded deferred tax assets
associated with these losses.</font></p><p>
<font size="2">The Company received a tax refund of approximately $4.2 million during the
quarter ended June 30, 2002, which was used to reduce the RoadOne revolver and
cured the over-advance position that existed at that time.  An additional tax
refund of $4.6 million was received during the quarter ended September 30, 2002,
with proceeds used to further reduce the borrowings under the RoadOne revolver.
</font>
<p>
<b>
<font size="2">13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PREFERRED STOCK</font></b><p>
<font size="2">The Company has authorized 5,000,000 shares of undesignated preferred stock
which can be issued in one or more series. The terms, price, and conditions of
the preferred shares will be set by the board of directors. No shares have been
issued.</font></p><p>
<b>
<font size="2">14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EMPLOYEE BENEFIT PLANS</font></b><p>
<font size="2">During 1996, the Company established a contributory retirement plan for all
full-time employees with at least 90 days of service. Effective January 1, 1999,
the Company split the plan into two identical plans by operating segment. As a
result of the Company&#8217;s decision to dispose of its towing services
operations the two separate plans will be combined to form a consolidated plan
effective January 1, 2003. These plans are designed to provide tax-deferred
income to the Company&#8217;s employees in accordance with the provisions of
Section 401 (k) of the Internal Revenue Code.</font></p><p>
<font size="2">These plans provide that each participant may contribute up to 15% of his or her
salary. The Company matches 33.33% of the first 3% of participant contributions.
Matching contributions vest over a period of five years. Company contributions
to the plans were not significant in 2001, 2000, and 1999.</font></p><p align="center">
<font face="Times New Roman" size="2">C-28<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<b>
<font size="2">15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;QUARTERLY FINANCIAL INFORMATION (UNAUDITED)</font></b><p>
<font size="2">The following is a summary of the unaudited quarterly financial information for
the twelve months ended December 31, 2002 and 2001 (in thousands, except per
share data):</font></p>
<div align="center" style="position:relative; left: 0"><table border=0 cellpadding=0 cellspacing =0 >
<tr valign="top">
<td width="191.999952" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="57.333319" bgcolor=#FFF3CE valign="bottom">
<p align="center">
<font size="2"><b>Net</b></font><br><font size="2"><b>Sales</b></font></p align="center">
</td>
<td width="14.666663" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="70.666649" bgcolor=#FFF3CE valign="bottom">
<p align="center">
<font size="2"><b>Operating<br>
Income</b></font><br><font size="2"><b>(Loss)</b></font></p align="center">
</td>
<td width="14.666663" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="93.333310" bgcolor=#FFF3CE valign="bottom">
<p align="center">
<font size="2"><b>Loss
From</b></font><br><font size="2"><b>Discontinued</b></font><br><font size="2"><b>Operations</b></font></p align="center">
</td>
<td width="30.666659" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="63.999984" bgcolor=#FFF3CE valign="bottom">
<p align="center">
<font size="2"><b>Net</b></font><br><font size="2"><b>Income</b></font><br><font size="2"><b>(Loss)(a)</b></font></p align="center">
</td>
<td width="14.666663" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="82.666646" bgcolor=#FFF3CE valign="bottom">
<p align="center">
<font size="2"><b>Basic</b></font><br><font size="2"><b>Net</b></font><br><font size="2"><b>Loss
Per</b></font><br><font size="2"><b>Share</b></font></p align="center">
</td>
<td width="23.999994" bgcolor=#FFF3CE valign="bottom">
<font size="2">&nbsp;</font></td>
<td width="62.666651" bgcolor=#FFF3CE valign="bottom">
<p align="center">
<font size="2"><b>Diluted</b></font><br><font size="2"><b>Net</b></font><br><font size="2"><b>Loss
Per</b></font><br><font size="2"><b>Share</b></font></p align="center">
</td>


</tr>
<tr valign="top">
<td width="191.999952" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="57.333319" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="70.666649" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="93.333310" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="30.666659" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="63.999984" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="82.666646" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="23.999994" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="62.666651" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="191.999952" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<p>
<font size="2">Year ended December 31, 2002:</font></p>
</td>
<td width="57.333319" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="70.666649" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="93.333310" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="30.666659" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="63.999984" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="82.666646" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="62.666651" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="191.999952" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First
quarter</font></p>
</td>
<td width="57.333319" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$  47,805</font></p align="right">


</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$  2,688</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$(1,213)</font></p align="right">
</td>
<td width="30.666659" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="63.999984" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$(22,047)</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="82.666646" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$(2.36)</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="62.666651" colspan="1" rowspan="1" >
<p align="right">
<font size="2">$(2.36)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="191.999952" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Second
quarter</font></p>
</td>
<td width="57.333319" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">54,159</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="70.666649" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">2,740</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="93.333310" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(2,016)</font></p align="right">
</td>
<td width="30.666659" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="63.999984" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(342)</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="82.666646" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(0.04)</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="62.666651" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(0.04)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="191.999952" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Third
quarter</font></p>
</td>
<td width="57.333319" colspan="1" rowspan="1" >
<p align="right">
<font size="2">47,771</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">1,491</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(586)</font></p align="right">
</td>
<td width="30.666659" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="63.999984" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(962)</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="82.666646" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(0.10)</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="62.666651" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(0.10)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="191.999952" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fourth
quarter</font></p>
</td>
<td width="57.333319" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">53,324</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="70.666649" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">4,190</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="93.333310" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(23,591)</font></p>
</td>
<td width="30.666659" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="63.999984" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(22,343)</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="left">
<font size="2">&nbsp;(b)</font></td>
<td width="82.666646" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(2.39)</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="62.666651" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(2.39)</font></p>
</td>
</tr>
<tr valign="top">
<td width="191.999952" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</font></p>
</td>
<td width="57.333319" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">$203,059</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">$11,109</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">$(27,406)</font></p>
</td>
<td width="30.666659" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="63.999984" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">$(45,694)</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="82.666646" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">$(4.89)</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="62.666651" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:double">
<font size="2">$(4.89)</font></p>
</td>
</tr>
<tr valign="top">
<td width="191.999952" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="57.333319" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="70.666649" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="93.333310" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="30.666659" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="63.999984" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="82.666646" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="62.666651" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="191.999952" colspan="1" rowspan="1" >
<p>
<font size="2">Year ended December 31, 2001:</font></p>
</td>
<td width="57.333319" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="70.666649" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="93.333310" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="30.666659" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="63.999984" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="82.666646" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="23.999994" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="62.666651" colspan="1" rowspan="1" >

<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="191.999952" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First
quarter</font></p>
</td>
<td width="57.333319" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$  49,490</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="70.666649" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$   1,827</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="93.333310" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$(1,459)</font></p align="right">
</td>
<td width="30.666659" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="63.999984" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$    (1,949)</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="82.666646" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$(0.20)</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="62.666651" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">$(0.20)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="191.999952" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Second
quarter</font></p>
</td>
<td width="57.333319" colspan="1" rowspan="1" >
<p align="right">
<font size="2">62,613</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right">
<font size="2">4,319</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="93.333310" colspan="1" rowspan="1" >


<p align="right">
<font size="2">(7,915)</font></p align="right">
</td>
<td width="30.666659" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="63.999984" colspan="1" rowspan="1" >
<p align="right">
<font size="2">29</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="82.666646" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(0.00)</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="62.666651" colspan="1" rowspan="1" >
<p align="right">
<font size="2">(0.00)</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="191.999952" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Third
quarter</font></p>
</td>
<td width="57.333319" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">53,017</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="70.666649" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">2,179</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="93.333310" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(697)</font></p align="right">
</td>
<td width="30.666659" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="63.999984" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(719)</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="82.666646" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(0.08)</font></p align="right">
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="62.666651" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right">
<font size="2">(0.08)</font></p align="right">
</td>
</tr>
<tr valign="top">

<td width="191.999952" colspan="1" rowspan="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fourth
quarter</font></p>
</td>
<td width="57.333319" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">53,859</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="70.666649" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">2,236</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2"><u>(</u>15,869<u>)</u></font></p>
</td>
<td width="30.666659" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="63.999984" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(17,725)(b)</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="82.666646" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(1.90)</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" >
<font size="2">&nbsp;</font></td>
<td width="62.666651" colspan="1" rowspan="1" >
<p align="right" style="border-bottom:solid windowtext .5pt">
<font size="2">(1.90)</font></p>
</td>
</tr>
<tr valign="top">
<td width="191.999952" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</font></p>
</td>
<td width="57.333319" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">$218,979</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="70.666649" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">$10,561</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>

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

<td width="93.333310" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">$(25,940)</font></p>
</td>
<td width="30.666659" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="63.999984" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">$(20,364)</font></p>
</td>
<td width="14.666663" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="82.666646" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">$(2.18)</font></p>
</td>
<td width="23.999994" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<font size="2">&nbsp;</font></td>
<td width="62.666651" colspan="1" rowspan="1" bgcolor=#FFF3CE>
<p align="right" style="border-bottom:double">
<font size="2">$(2.18)</font></p>
</td>
</tr>
</table></div>
<p>
&nbsp;<table border="0" cellpadding="4" cellspacing="0" style="border-collapse: collapse" bordercolor="#111111" width="100%">
  <tr>
    <td valign="top"><font size="2">(a)</font></td>
    <td><font size="2">The income tax provision (benefit) has been
allocated by quarter based on the effective rate for the twelve months ended
December 31, 2002 and 2001.</font></td>
    </tr>
    <tr>
      <td valign="top"><font size="2">(b)</font></td>
      <td><font size="2">The results for the three months ended December
31, 2002 and December 31, 2001 reflect asset impairments and other special
charges of $11,828,000 and $16,672,000 as discussed in Note 6.</font></td>
      </tr>
    </table>
    <p>
&nbsp;<p>
&nbsp;<p>
&nbsp;<p>
&nbsp;<p>
&nbsp;<p>
&nbsp;<p align="center">
<font face="Times New Roman" size="2">C-29<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>

<p align="center"><b><font size="2" color="black" face="Times New Roman">
[The following unaudited financial statements and related notes are a modified
version of the unaudited financial statements and related notes that appeared in
the Company&#146;s Quarterly Report on Form 10-Q for quarter ended September 30,
2003.&nbsp; All modifications appear in bolded, italicized and bracketed text.]</font></b></p>

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

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

<div align="center">
<table border="0" cellspacing="0" cellpadding="0" width="630" style="border-collapse: collapse" bordercolor="#111111">
<tr>
<td colspan="3" valign="top" width="397">
<p><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" width="14">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><b><font size="2" face="Times New Roman">September 30,<br />
 2003</font></b></p>
</td>
<td width="19">
<p><b><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
<td valign="bottom" width="12">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" width="94" 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 colspan="3" valign="top" width="397">
<p><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" width="14">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="94" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="397">
<p><b><font size="2" face="Times New Roman">ASSETS</font></b></p>
</td>
<td valign="bottom" width="14">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94"><font size="2">&nbsp;</font></td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="397">
<p><b><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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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></b></p>
</td>
<td valign="bottom" width="14">
<p align="center"><font size="2" face="Times New Roman">&nbsp;&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><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;</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><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;</font></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="397">
<p><b><font size="2" face="Times New Roman">CURRENT ASSETS</font></b></p>
</td>
<td valign="bottom" width="14">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94"><font size="2">&nbsp;</font></td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="397">
<p><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" width="14">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94"><font size="2">&nbsp;</font></td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="24">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="373">
<p><font size="2" face="Times New Roman">Cash and temporary investments</font></p>
</td>
<td valign="bottom" width="14">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">5,340&nbsp;</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">2,097&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="24">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="373">
<p><font size="2" face="Times New Roman">Accounts receivable, net</font></p>
</td>
<td valign="bottom" width="14">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">39,805&nbsp;</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">46,616&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="24">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="373">
<p><font size="2" face="Times New Roman">Inventories, net</font></p>
</td>
<td valign="bottom" width="14">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">29,604&nbsp;</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">27,815&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="24">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="373">
<p><font size="2" face="Times New Roman">Prepaid expenses and other</font></p>
</td>
<td valign="bottom" width="14">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">1,443&nbsp;</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">748&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="24">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="373">
<p><font size="2" face="Times New Roman">Current assets of discontinued operations held for sale</font></p>
</td>
<td valign="bottom" width="14">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">26,249&nbsp;</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94" 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="24">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="26">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="347">
<p><font size="2" face="Times New Roman">Total current assets</font></p>
</td>
<td valign="bottom" width="14">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">102,441&nbsp;</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">109,642&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="24">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="373">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="14">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94"></td>
</tr>

<tr>
<td colspan="3" valign="top" width="397">
<p><b><font size="2" face="Times New Roman">PROPERTY, PLANT AND EQUIPMENT,</font></b> net</p>
</td>
<td valign="bottom" width="14">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">21,608&nbsp;</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">23,121&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="397">
<p><b><font size="2" face="Times New Roman">GOODWILL,</font></b> net</p>
</td>
<td valign="bottom" width="14">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">11,619&nbsp;</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">11,619&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="397">
<p><b><font size="2" face="Times New Roman">OTHER ASSETS,</font></b> net</p>
</td>
<td valign="bottom" width="14">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">1,253&nbsp;</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">2,378&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="397">
<p><b><font size="2" face="Times New Roman">NONCURRENT ASSETS 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="14">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">7,483&nbsp;</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">15,417&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="397">
<p><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" width="14">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom" width="94" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">144,404&nbsp;</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom" width="94" 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></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="397">
<p style="margin-top: 10"><b><font size="2" face="Times New Roman">LIABILITIES AND SHAREHOLDERS&rsquo; EQUITY</font></b></p>
</td>
<td valign="bottom" width="14">
<p align="center" style="margin-top: 10"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right" style="margin-top: 10"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="19">
<p style="margin-top: 10"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right" style="margin-top: 10"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right" style="margin-top: 10"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="397">
<p><b><font size="2" face="Times New Roman">CURRENT LIABILITIES:</font></b></p>
</td>
<td valign="bottom" width="14">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="24">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="373">
<p><font size="2" face="Times New Roman">Current portion of long-term obligations</font></p>
</td>
<td valign="bottom" width="14">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">32,510&nbsp;</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">35,244&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="24">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="373">
<p><font size="2" face="Times New Roman">Accounts payable</font></p>
</td>
<td valign="bottom" width="14"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">33,702&nbsp;</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">25,213&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="24">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="373">
<p><font size="2" face="Times New Roman">Accrued liabilities and other</font></p>
</td>
<td valign="bottom" width="14"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">4,107&nbsp;</font></p>
</td>
<td width="19"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">6,147&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="24">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="373">
<p><font size="2" face="Times New Roman">Current liabilities of discontinued operations held for sale</font></p>
</td>
<td valign="bottom" width="14"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="94" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">38,778&nbsp;</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">53,212&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="24">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="26">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="347">
<p><font size="2" face="Times New Roman">Total current liabilities</font></p>
</td>
<td valign="bottom" width="14"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="94" 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">109,097&nbsp;</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94" 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">119,816&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="397">
<p style="margin-top: 10"><b><font size="2" face="Times New Roman">LONG-TERM OBLIGATIONS,</font></b>
<font size="2">less current portion</font></p>
</td>
<td valign="bottom" width="14">
<p style="margin-top: 10"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="94" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right" style="margin-top: 10"><font size="2" face="Times New Roman">912&nbsp;</font></p>
</td>
<td width="19">
<p style="margin-top: 10"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right" style="margin-top: 10"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right" style="margin-top: 10"><font size="2" face="Times New Roman">1,214&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="397">
<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="14"><font size="2">&nbsp;</font></td>
<td valign="bottom" width="94" 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">1,013&nbsp;</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94" 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 colspan="3" valign="top" width="397">
<p style="margin-top: 10"><b><font size="2" face="Times New Roman">COMMITMENTS AND CONTINGENCIES</font></b><font size="2">
(Notes 7 and 9)</font></p>
</td>
<td valign="bottom" width="14">
<p align="center" style="margin-top: 10"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="center" style="margin-top: 10"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="19">
<p align="center" style="margin-top: 10"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="center" style="margin-top: 10"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="center" style="margin-top: 10"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="3" valign="top" width="397">
<p><b><font size="2" face="Times New Roman">SHAREHOLDERS&rsquo; EQUITY:</font></b></p>
</td>
<td valign="bottom" width="14">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="19">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="24">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="373">
<p><font size="2" face="Times New Roman">Preferred stock, $.01 par value; 5,000,000 shares authorized,<br />
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;none issued or outstanding</font></p>
</td>
<td valign="bottom" width="14">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">0&nbsp;</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">0&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="24">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="373">
<p><font size="2" face="Times New Roman">Common stock, $.01 par value; 100,000,000 shares authorized,<br />
 9,341,436 shares issued and outstanding at September 30, 2003 and December 31, 2002, respectively</font></p>
</td>
<td valign="bottom" width="14">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">93&nbsp;</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">93&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="24">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="373">
<p><font size="2" face="Times New Roman">Additional paid-in capital</font></p>
</td>
<td valign="bottom" width="14">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">145,088&nbsp;</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">145,088&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top" width="24">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="373">
<p><font size="2" face="Times New Roman">Accumulated deficit</font></p>
</td>
<td valign="bottom" width="14">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">(111,677)</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94">
<p align="right"><font size="2" face="Times New Roman">(103,790)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="24">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="373">
<p><font size="2" face="Times New Roman">Accumulated other comprehensive loss</font></p>
</td>
<td valign="bottom" width="14">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">(122)</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">(1,694)</font></p>
</td>
</tr>

<tr>
<td valign="top" width="24">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="26">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="347">
<p><font size="2" face="Times New Roman">Total shareholders&rsquo; equity</font></p>
</td>
<td valign="bottom" width="14">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94" 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">33,382&nbsp;</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94" 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="24">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="373">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="14">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom" width="94" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">144,404&nbsp;</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="12">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="94" 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></p>
</td>
</tr>
</table>
</div>

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

<p align="center"><font face="Times New Roman" size="2">C-30<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>

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



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

<div align="center">
  <center>

<table border="0" cellspacing="0" cellpadding="0" width="643" style="border-collapse: collapse" bordercolor="#111111">
<tr>
<td colspan="4" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="5" valign="top" style="border-bottom-style: solid; border-bottom-width: medium">
<p align="center"><b><font size="2" face="Times New Roman">Three Months Ended<br />
 September 30,</font></b></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: medium">
<p align="center"><b><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
<td colspan="5" valign="top" style="border-bottom-style: solid; border-bottom-width: medium">
<p align="center"><b><font size="2" face="Times New Roman">Nine Months Ended<br />
 September 30,</font></b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: medium">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: medium">
<p align="center"><b><font size="2" face="Times New Roman">2003</font></b></p>
</td>
<td valign="top" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: medium">
<p align="right"><font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
<td valign="top" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: medium">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: medium">
<p align="center"><font size="2" face="Times New Roman">2002</font></p>
</td>
<td valign="top" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: medium">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: medium">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: medium">
<p align="center"><b><font size="2" face="Times New Roman">2003</font></b></p>
</td>
<td valign="top" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: medium">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: medium">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: medium">
<p align="center"><font size="2" face="Times New Roman">2002</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p style="margin-top: 10"><b><font size="2" face="Times New Roman">NET SALES:</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="3" valign="top">
<p><font size="2" face="Times New Roman">Towing and Recovery Equipment</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">50,321&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">47,771&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">142,225&nbsp;</font></b></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">149,735&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="3" valign="top">
<p><font size="2" face="Times New Roman">Towing Services</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">&ndash;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">7,005&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">13,952&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">21,655&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="3" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1; border-top-style:solid; border-top-width:1">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1; border-top-style:solid; border-top-width:1">
<p align="right"><b><font size="2" face="Times New Roman">50,321&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1; border-top-style:solid; border-top-width:1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1; border-top-style:solid; border-top-width:1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1; border-top-style:solid; border-top-width:1">
<p align="right"><font size="2" face="Times New Roman">54,776&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1; border-top-style:solid; border-top-width:1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1; border-top-style:solid; border-top-width:1">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1; border-top-style:solid; border-top-width:1">
<p align="right"><b><font size="2" face="Times New Roman">156,177&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1; border-top-style:solid; border-top-width:1">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1; border-top-style:solid; border-top-width:1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1; border-top-style:solid; border-top-width:1">
<p align="right"><font size="2" face="Times New Roman">171,390&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p style="margin-top: 10"><b><font size="2" face="Times New Roman">COSTS AND EXPENSES:</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="3" valign="top">
<p><b><font size="2" face="Times New Roman">Costs of operations</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top"><font size="2">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top">
<p><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">Towing and Recovery Equipment</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">44,611&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">41,376&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">123,660&nbsp;</font></b></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">128,784&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top">
<p><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">Towing Services</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">&ndash;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">5,880&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">10,618&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">17,078&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">44,611&nbsp;</font></b></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">47,256&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">134,278&nbsp;&nbsp;</font></b></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">145,862&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top"><font size="2">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="3" valign="top">
<p><font size="2" face="Times New Roman">Selling, general and administrative expenses</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">4,271&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">5,454&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">13,250&nbsp;</font></b></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">15,617&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="3" valign="top">
<p><font size="2" face="Times New Roman">Interest expense, net</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">3,347&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">607&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">4,786&nbsp;</font></b></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">2,476&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="3" valign="top">
<p><font size="2" face="Times New Roman">Loss on disposition</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">&ndash;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&ndash;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">682&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&ndash;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="3" valign="top">
<p><font size="2" face="Times New Roman">Total costs and expenses</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">52,229&nbsp;</font></b></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" 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">53,317&nbsp;</font></p>
</td>
<td valign="top" 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">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">152,996&nbsp;</font></b></p>
</td>

<td valign="top" 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;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" 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">163,955&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p style="margin-top: 10"><b><font size="2" face="Times New Roman">INCOME (LOSS) FROM CONTINUING OPERATIONS</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"><font size="2">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p><b><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BEFORE INCOME
TAXES</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">(1,908)</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">1,459&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">3,181&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">7,435&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p><b><font size="2" face="Times New Roman">INCOME TAX PROVISION</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">82&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">610&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">1,785&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">2,930&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p><b><font size="2" face="Times New Roman">INCOME (LOSS) FROM CONTINUING</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p><b><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OPERATIONS</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">(1,990)</font></b></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">849&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">1,396&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">4,505&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p style="margin-top: 10"><b><font size="2" face="Times New Roman">DISCONTINUED OPERATIONS:</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top"><font size="2">&nbsp;</font></td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="3" valign="top">
<p><font size="2" face="Times New Roman">Loss from discontinued operations, before taxes</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">(4,845)</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(2,242)</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">(11,089)</font></b></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(8,317)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="3" valign="top">
<p><font size="2" face="Times New Roman">Income tax provision</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">&ndash;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">(431)</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">(1,806)</font></b></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">(2,272)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="3" valign="top">
<p><font size="2" face="Times New Roman">Loss from discontinued operations</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">(4,845)</font></b></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">(1,811)</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">(9,283)</font></b></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">(6,045)</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p style="margin-top: 10"><b><font size="2" face="Times New Roman">NET LOSS BEFORE CUMULATIVE EFFECT OF</font></b></p>
</td>
<td valign="top">
<p align="right" style="margin-top: 10"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right" style="margin-top: 10"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p style="margin-top: 10"><font size="2">&nbsp;</font></td>
<td valign="top">
<p align="right" style="margin-top: 10"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right" style="margin-top: 10"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p style="margin-top: 10"><font size="2">&nbsp;</font></td>
<td valign="top">
<p align="center" style="margin-top: 10"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right" style="margin-top: 10"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right" style="margin-top: 10"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p style="margin-top: 10"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right" style="margin-top: 10"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right" style="margin-top: 10"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td colspan="3" valign="top">
<p><b><font size="2" face="Times New Roman">CHANGE IN ACCOUNTING PRINCIPLE:</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">(6,835)</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(962)</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">(7,887)</font></b></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(1,540)</font></p>
</td>
</tr>

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

<tr>
<td colspan="4" valign="top">
<p><b><font size="2" face="Times New Roman">NET LOSS</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><b><font size="2" face="Times New Roman">(6,835)</font></b></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">(962)</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><b><font size="2" face="Times New Roman">(7,887)</font></b></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">(23,352)</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p><b><font size="2" face="Times New Roman">BASIC INCOME (LOSS) PER COMMON SHARE:</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="3" valign="top">
<p><font size="2" face="Times New Roman">Income (loss) from continuing operations</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">(0.21)</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">0.09&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">0.15&nbsp;</font></b></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">0.49&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="3" valign="top">
<p><font size="2" face="Times New Roman">Loss from discontinued operations</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">(0.52)</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(0.19)</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">(0.99)</font></b></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(0.65)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="3" valign="top">
<p><font size="2" face="Times New Roman">Cumulative effect of change in accounting principle</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">&ndash;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&ndash;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">&ndash;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">(2.34)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="3" valign="top">
<p><font size="2" face="Times New Roman">Basic income (loss) per common share</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><b><font size="2" face="Times New Roman">(0.73)</font></b></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">(0.10)</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><b><font size="2" face="Times New Roman">(0.84)</font></b></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">(2.50)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="3" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p><b><font size="2" face="Times New Roman">DILUTED INCOME (LOSS) PER COMMON SHARE:</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="3" valign="top">
<p><font size="2" face="Times New Roman">Income (loss) from continuing operations</font></p>
</td>
<td valign="top">

<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">(0.21)</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">0.09&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">0.15&nbsp;</font></b></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">0.49&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="3" valign="top">
<p><font size="2" face="Times New Roman">Loss from discontinued operations</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">(0.52)</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(0.19)</font></p>
</td>
<td valign="top">

<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">(0.99)</font></b></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(0.65)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="3" valign="top">
<p><font size="2" face="Times New Roman">Cumulative effect of change in accounting principle</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">&ndash;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&ndash;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><b><font size="2" face="Times New Roman">&ndash;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">(2.34)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="3" valign="top">
<p><font size="2" face="Times New Roman">Diluted income (loss) per common share</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><b><font size="2" face="Times New Roman">(0.73)</font></b></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">(0.10)</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<font size="2">&nbsp;</font></td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><b><font size="2" face="Times New Roman">(0.84)</font></b></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">(2.50)</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top">
<p><b><font size="2" face="Times New Roman">WEIGHTED AVERAGE SHARES OUTSTANDING:</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="3" valign="top">
<p><font size="2" face="Times New Roman">Basic</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: double">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: double">
<p align="right"><b><font size="2" face="Times New Roman">9,341&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">9,341&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: double">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: double">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: double">
<p align="right"><b><font size="2" face="Times New Roman">9,341&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: double">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">9,341&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="3" valign="top">
<p><font face="Times New Roman" size="2">Diluted</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: double">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: double">
<p align="right"><b><font size="2" face="Times New Roman">9,359&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">9,349&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: double">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: double">
<p align="right"><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: double">
<p align="right"><b><font size="2" face="Times New Roman">9,351&nbsp;</font></b></p>
</td>
<td valign="top" style="border-bottom-style: double">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: double">
<p align="right"><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
balance sheets</font></p>

<p align="center"><font face="Times New Roman" size="2">C-31<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>

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

<div align="center">
<table border="0" cellspacing="0" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111" width="646">
<tr>
<td colspan="4" valign="top" width="457"><font size="2">&nbsp;</font></td>
<td width="19"><font size="2">&nbsp;</font></td>
<td colspan="4" style="border-bottom-style: solid; border-bottom-width: 1" width="190">
<p align="center"><b><font size="2" face="Times New Roman">Nine Months Ended<br />
 September 30</font></b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top" width="457">
<p><b><font size="2" face="Times New Roman">&nbsp;</font></b></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="72">
<p align="center"><b><font size="2" face="Times New Roman">2003</font></b></p>
</td>
<td style="border-top-style: solid; border-top-width: 1" width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1" width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="78">
<p align="center"><b><font size="2" face="Times New Roman">2002</font></b></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top" width="457">
<p><b><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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1" width="72">
<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;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="17">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1" width="78">
<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;</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top" width="457">
<p><b><font size="2" face="Times New Roman">OPERATING ACTIVITIES</font></b></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="72">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="78">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="3" valign="top" width="441">
<p><font size="2" face="Times New Roman">Net loss</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;$</font></p>
</td>
<td valign="bottom" width="72">
<p align="right"><font size="2" face="Times New Roman">(7,887)</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="17">
<p><font size="2" face="Times New Roman">&nbsp;$</font></p>
</td>
<td valign="bottom" width="78">
<p align="right"><font size="2" face="Times New Roman">(23,352)</font></p>
</td>
</tr>

<tr>
<td width="16"><font size="2">&nbsp;</font></td>
<td colspan="3" valign="top" width="441">
<p><font size="2" face="Times New Roman">Adjustments to reconcile net loss to net cash provided by operating activities</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="72"><font size="2">&nbsp;</font></td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="78"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Loss from discontinued operations</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="72">
<p align="right"><font size="2" face="Times New Roman">9,283&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="78">
<p align="right"><font size="2" face="Times New Roman">6,045&nbsp;</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Depreciation and amortization</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="72">
<p align="right"><font size="2" face="Times New Roman">5,843&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="78">
<p align="right"><font size="2" face="Times New Roman">4,454&nbsp;</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Provision for doubtful accounts</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="72">
<p align="right"><font size="2" face="Times New Roman">184&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="78">
<p align="right"><font size="2" face="Times New Roman">127&nbsp;</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Cumulative effect of change in accounting principle</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="72">
<p align="right"><font size="2" face="Times New Roman">&ndash;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="78">
<p align="right"><font size="2" face="Times New Roman">21,812&nbsp;</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Loss on disposals of property, plant, and equipment</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="72">
<p align="right"><font size="2" face="Times New Roman">39&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="78">
<p align="right"><font size="2" face="Times New Roman">1&nbsp;</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Loss on disposition of business</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="72">
<p align="right"><font size="2" face="Times New Roman">682&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="78">
<p align="right"><font size="2" face="Times New Roman">&ndash;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Deferred income tax provision</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="72">
<p align="right"><font size="2" face="Times New Roman">3&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="78">
<p align="right"><font size="2" face="Times New Roman">4,904&nbsp;</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Paid in kind interest</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="72">
<p align="right"><font size="2" face="Times New Roman">&ndash;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="78">
<p align="right"><font size="2" face="Times New Roman">213&nbsp;</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Proceeds from income tax refund</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="72">
<p align="right"><font size="2" face="Times New Roman">&ndash;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="78">
<p align="right"><font size="2" face="Times New Roman">4,248&nbsp;</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Changes in operating assets and liabilities:</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="72"><font size="2">&nbsp;</font></td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="78"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="32">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="393">
<p><font size="2" face="Times New Roman">Accounts receivable</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="72">
<p align="right"><font size="2" face="Times New Roman">5,438&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="78">
<p align="right"><font size="2" face="Times New Roman">4,756&nbsp;</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="32">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="393">
<p><font size="2" face="Times New Roman">Inventories</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="72">
<p align="right"><font size="2" face="Times New Roman">(1,355)</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="78">
<p align="right"><font size="2" face="Times New Roman">1,177&nbsp;</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="32">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="393">
<p><font size="2" face="Times New Roman">Prepaid expenses and other</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="72">
<p align="right"><font size="2" face="Times New Roman">(680)</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="78">
<p align="right"><font size="2" face="Times New Roman">(658)</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="32">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="393">
<p><font size="2" face="Times New Roman">Other assets</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="72">
<p align="right"><font size="2" face="Times New Roman">(18)</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="78">
<p align="right"><font size="2" face="Times New Roman">(57)</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="32">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="393">
<p><font size="2" face="Times New Roman">Accounts payable</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="72">
<p align="right"><font size="2" face="Times New Roman">8,094&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="78">
<p align="right"><font size="2" face="Times New Roman">1,309&nbsp;</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="32">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="393">
<p><font size="2" face="Times New Roman">Accrued liabilities and other</font></p>
</td>
<td style="border-bottom-style: solid; border-bottom-width: 1" width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" width="72">
<p align="right"><font size="2" face="Times New Roman">(2,274)</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-bottom-style: solid; border-bottom-width: 1" width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" width="78">
<p align="right"><font size="2" face="Times New Roman">(3,508)</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Net cash provided by operating activities from continuing operations</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="72">
<p align="right"><font size="2" face="Times New Roman">17,352&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="78">
<p align="right"><font size="2" face="Times New Roman">21,471&nbsp;</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Net cash used in operating activities from discontinued operations</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="72">
<p align="right"><font size="2" face="Times New Roman">(8,709)</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="78">
<p align="right"><font size="2" face="Times New Roman">(3,468)</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Net cash provided by operating activities</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="72">
<p align="right"><font size="2" face="Times New Roman">8,643&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="78">
<p align="right"><font size="2" face="Times New Roman">18,003&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top" width="457">
<p><b><font size="2" face="Times New Roman">INVESTING ACTIVITIES</font></b></p>
</td>
<td style="border-top-style: solid; border-top-width: 1" width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1" width="72">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1" width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1" width="78">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Purchases of property, plant, and equipment</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="72">
<p align="right"><font size="2" face="Times New Roman">(1,072)</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="78">
<p align="right"><font size="2" face="Times New Roman">(788)</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Proceeds from sale of property, plant and equipment</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="72">
<p align="right"><font size="2" face="Times New Roman">41&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="78">
<p align="right"><font size="2" face="Times New Roman">43&nbsp;</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Proceeds from sale of business</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="72">
<p align="right"><font size="2" face="Times New Roman">3,645&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="78">
<p align="right"><font size="2" face="Times New Roman">&ndash;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td width="16"><font size="2">&nbsp;</font></td>
<td valign="top" width="16"><font size="2">&nbsp;</font></td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Payments received on notes receivables</font></p>
</td>
<td width="19" style="border-bottom-style: solid; border-bottom-width: 1"><font size="2">&nbsp;</font></td>
<td valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" width="72">
<p align="right"><font size="2" face="Times New Roman">767&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="17" style="border-bottom-style: solid; border-bottom-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" width="78">
<p align="right"><font size="2" face="Times New Roman">47&nbsp;</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Net cash provide by (used in) investing activities from<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;continuing operations</font></p>
</td>
<td width="19" 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;</font></p>
</td>
<td valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="72">
<p align="right"><font size="2" face="Times New Roman">3,381&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="17" 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;</font></p>
</td>
<td valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="78">
<p align="right"><font size="2" face="Times New Roman">(698)</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Net cash provided by investing activities from discontinued&nbsp; operations</font></p>
</td>
<td style="border-bottom-style: solid; border-bottom-width: 1; border-top-style:solid; border-top-width:1" width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="72">
<p align="right"><font size="2" face="Times New Roman">3,547&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-bottom-style: solid; border-bottom-width: 1; border-top-style:solid; border-top-width:1" width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="78">
<p align="right"><font size="2" face="Times New Roman">6,218&nbsp;</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Net cash provided by investing activities</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="72">
<p align="right"><font size="2" face="Times New Roman">6,928&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="78">
<p align="right"><font size="2" face="Times New Roman">5,520&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top" width="457">
<p><b><font size="2" face="Times New Roman">FINANCING ACTIVITIES</font></b></p>
</td>
<td style="border-top-style: solid; border-top-width: 1" width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1" width="72">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1" width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1" width="78">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Net borrowings (payments) under senior credit facility</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="72">
<p align="right"><font size="2" face="Times New Roman">(4,832)</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="78">
<p align="right"><font size="2" face="Times New Roman">1,345</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Payments on long-term obligations</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="72">
<p align="right"><font size="2" face="Times New Roman">(2,111)</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="78">
<p align="right"><font size="2" face="Times New Roman">(2,900)</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Borrowings under long-term obligations</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="72">
<p align="right"><font size="2" face="Times New Roman">233&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="78">
<p align="right"><font size="2" face="Times New Roman">77&nbsp;</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Additions to deferred financing costs</font></p>
</td>
<td width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="72">
<p align="right"><font size="2" face="Times New Roman">(1,211)</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" width="78">
<p align="right"><font size="2" face="Times New Roman">(1,415)</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Termination of interest rate swap</font></p>
</td>
<td style="border-bottom-style: solid; border-bottom-width: 1" width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" width="72">
<p align="right"><font size="2" face="Times New Roman">73&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-bottom-style: solid; border-bottom-width: 1" width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1" width="78">
<p align="right"><font size="2" face="Times New Roman">(264)</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Net cash used in financing activities from continuing operations</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="72">
<p align="right"><font size="2" face="Times New Roman">(7,848)</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="78">
<p align="right"><font size="2" face="Times New Roman">(3,157)</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Net cash used in financing activities from discontinued operations</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="72">
<p align="right"><font size="2" face="Times New Roman">(5,949)</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="78">
<p align="right"><font size="2" face="Times New Roman">(21,044)</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Net cash used in financing activities</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1; border-bottom-style:solid; border-bottom-width:1" width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="72">
<p align="right"><font size="2" face="Times New Roman">(13,797)</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="78">
<p align="right"><font size="2" face="Times New Roman">(24,201)</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top" width="457">
<p><b><font size="2" face="Times New Roman">EFFECT OF EXCHANGE RATE CHANGES ON CASH AND<br />
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TEMPORARY INVESTMENTS</font></b></p>
</td>
<td style="border-bottom-style: solid; border-bottom-width: 1; border-top-style:solid; border-top-width:1" width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="72">
<p align="right"><font size="2" face="Times New Roman"><br>
1,180&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="78">
<p align="right"><font size="2" face="Times New Roman"><br />
 358&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top" width="457">
<p><b><font size="2" face="Times New Roman">NET CHANGE IN CASH AND TEMPORARY INVESTMENTS</font></b></p>
</td>
<td style="border-top-style: solid; border-top-width: 1" width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1" width="72">
<p align="right"><font size="2" face="Times New Roman">2,954&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1" width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1" width="78">
<p align="right"><font size="2" face="Times New Roman">(320)</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top" width="457">
<p><b><font size="2" face="Times New Roman">CASH AND TEMPORARY INVESTMENTS, beginning of period</font></b></p>
</td>
<td style="border-bottom-style: solid; border-bottom-width: 1" width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-bottom-style: solid; border-bottom-width: 1" width="72">
<p align="right"><font size="2" face="Times New Roman">2,097&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-bottom-style: solid; border-bottom-width: 1" width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-bottom-style: solid; border-bottom-width: 1" width="78">
<p align="right"><font size="2" face="Times New Roman">9,863&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top" width="457">
<p><b><font size="2" face="Times New Roman">CASH AND TEMPORARY INVESTMENTS,-DISCONTINUED<br />
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OPERATIONS, beginning of period</font></b></p>
</td>
<td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="72">
<p align="right"><font size="2" face="Times New Roman"><br />
 1,752&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="78">
<p align="right"><font size="2" face="Times New Roman">&ndash;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top" width="457">
<p><b><font size="2" face="Times New Roman">CASH AND TEMPORARY INVESTMENTS-DISCONTINUED<br />
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OPERATIONS, end of period</font></b></p>
</td>
<td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="72">
<p align="right"><font size="2" face="Times New Roman"><br />
 1,463&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" width="78">
<p align="right"><font size="2" face="Times New Roman">&ndash;&nbsp;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top" width="457">
<p style="margin-top: 10"><b><font size="2" face="Times New Roman">CASH AND TEMPORARY INVESTMENTS, end of period</font></b></p>
</td>
<td style="border-bottom-style: solid; border-bottom-width: 1" width="19">
<p style="margin-top: 10"><font size="2" face="Times New Roman">$</font></p>
</td>
<td style="border-bottom-style: solid; border-bottom-width: 1" width="72">
<p align="right" style="margin-top: 10"><font size="2" face="Times New Roman">5,340&nbsp;</font></p>
</td>
<td width="23">
<p style="margin-top: 10"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-bottom-style: solid; border-bottom-width: 1" width="17">
<p style="margin-top: 10"><font size="2" face="Times New Roman">$</font></p>
</td>
<td style="border-bottom-style: solid; border-bottom-width: 1" width="78">
<p align="right" style="margin-top: 10"><font size="2" face="Times New Roman">9,543&nbsp;</font></p>
</td>
</tr>

<tr>
<td colspan="4" valign="top" width="457">
<p><b><font size="2" face="Times New Roman">SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION</font></b></p>
</td>
<td style="border-top-style: solid; border-top-width: 1" width="19">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1" width="72"><font size="2">&nbsp;</font></td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1" width="17">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1" width="78"><font size="2">&nbsp;</font></td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Cash payments for interest</font></p>
</td>
<td style="border-bottom-style: double" width="19">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td style="border-bottom-style: double" width="72">
<p align="right"><font size="2" face="Times New Roman">4,056&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-bottom-style: double" width="17">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom" style="border-bottom-style: double" width="78">
<p align="right"><font size="2" face="Times New Roman">5,552&nbsp;</font></p>
</td>
</tr>

<tr>
<td width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" width="16">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" width="425">
<p><font size="2" face="Times New Roman">Cash payments for income taxes</font></p>

</td>
<td style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" width="19">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" width="72">
<p align="right"><font size="2" face="Times New Roman">357&nbsp;</font></p>
</td>
<td width="23">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" width="17">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" width="78">
<p align="right"><font size="2" face="Times New Roman">576</font></p>
</td>
</tr>
</table>
</div>

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

<p align="center"><font size="2" face="Times New Roman">&nbsp;C-32</p>

<hr size="1" color="#000080" STYLE="page-break-after: always"></font>

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

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

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

<p style="margin-left: 40"><font size="2" face="Times New Roman">The condensed consolidated financial statements of Miller Industries, Inc. and
subsidiaries (the "Company") included herein have been prepared by the Company pursuant to the rules and regulations of the
Securities and Exchange Commission. &nbsp; Certain information and footnote disclosures normally included in annual financial
statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted
pursuant to such rules and regulations. &nbsp; Nevertheless, the Company believes that the disclosures are adequate to make the
financial information presented not misleading.&nbsp; In the opinion of management, the accompanying unaudited condensed
consolidated financial statements reflect all adjustments, which are of a normal recurring nature, to present fairly the Company's
financial position, results of operations and cash flows at the dates and for the periods presented.&nbsp; Cost of goods sold for
interim periods for certain entities in the towing and recovery equipment segment is determined based on estimated gross profit
rates.&nbsp; Interim results of operations are not necessarily indicative of results to be expected for the fiscal year.&nbsp;
These condensed consolidated financial statements should be read in conjunction with the Company's Annual Report on Form 10-K for
the year ended December 31, 2002.</font></p>

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

<p style="margin-left: 40"><font size="2" face="Times New Roman">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
<b><i> <font color="black">[was]</font></i></b> 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 <b><i>[mature<font color="black">d]</font></i>
</b>on July&nbsp;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<font color="black"> a</font> 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"><font size="2" color="black" face="Times New Roman">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 </font>
<font size="2" color="black">event of default</font><font size="2">
</font>
<font size="2" color="black">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)</font><font
size="2"> <font color=
"black">November 26, 2003 (the date which is 120 days</font> <font color="black">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</font>
<font color="black">April 24, 2004 (the date which is 270 days</font> <font color="black">
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 </font>
<font face="Times New Roman">commencement</font><font color="black"> of any
bankruptcy, insolvency or similar proceeding against the Company or certain of
its subsidiaries.&nbsp;</font></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 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.</font></p>

<p align="center"><font size="2" face="Times New Roman">&nbsp;C-33</p>

<hr size="1" color="#000080" STYLE="page-break-after: always"></font>

<p style="margin-left: 40"><font size="2" color="black" face="Times New Roman">On October 31, 2003, the Company entered into a Forbearance Agreement with
the lenders and the senior lender agent under the Senior Credit Facility (the "Forbearance Agreement"), pursuant to which, among
other things, the senior lenders agreed to forbear from exercising any remedies in respect
of the defaults then existing under the
senior credit facility (collectively, the "Existing Senior  Facility Defaults") as a result of (i) the failure to timely
deliver financial statements for fiscal year 2002 and the failure to deliver a report of their independent certified public
accountants which is unqualified in any respect, as well as the event of default under the Senior Credit Facility as a result of
the event of default arising from such failure under the Junior Credit Facility; (ii) the failure to fulfill certain payment
obligations to the junior lenders under the Junior Credit Facility; and (iii) the failure to fulfill certain financial covenants in
the Junior Credit Facility for one or more of the fiscal quarters ending in fiscal year 2003, which failure would constitute an
event of default under the Senior Credit Facility.&nbsp; The forbearance period under the Forbearance Agreement (the "Forbearance
Period") expires on the earlier of (x) December 31, 2003, (y) the occurrence of certain bankruptcy type events in respect of
Company of any of its Subsidiaries, or (z) the failure of the Company or any of its Subsidiaries that are borrower parties under
the Senior Credit Facility to perform their obligations under the Senior Credit Facility or the Forbearance Agreement.&nbsp; Under
the Forbearance Agreement, the senior lenders and the senior lender agent do not waive their rights and remedies with respect to
the Existing Senior Facility Defaults, but agree to forbear from exercising rights and remedies with respect to the Existing Senior
Facility Defaults solely during the Forbearance Period.&nbsp; There can be no assurance that the senior lenders or the senior
lender agent under the Senior Credit Facility will agree to extend the date of the Forbearance Period upon the expiration thereof
or to waive any of the Existing Senior Facility Defaults.&nbsp; If the Existing Senior Facility Defaults are not waived, upon
expiration of the Forbearance Period, such events of default could result in the acceleration of the amounts due under the Senior
Credit Facility as well as other remedies.&nbsp; There is no assurance that the Company will be able to obtain such a waiver from
the senior lenders of the Existing Senior Facility Defaults.&nbsp; Further, the Company has not obtained any waiver from the junior
lenders in respect of certain events of default that have occurred under the Junior Credit Facility and there can be no assurance
that the Company will be able to obtain such a waiver from the junior lenders.</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&rsquo;s assets.&nbsp; The liens give the lenders
the right to foreclose on the assets of the Company under certain defined events of default and such foreclosure could allow the
lenders to gain control of the operations of the Company.&nbsp;</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">On October 3, 2003, the Company entered into a letter agreement with a large financial
institution pursuant to which such lender confirmed its interest in providing up to $53 million of financing in order to refinance
the Senior Credit Facility and the Junior Credit Facility.&nbsp; The agreement does not constitute a commitment or undertaking by
such lender to provide financing, and is subject to completion of due diligence and various other conditions.&nbsp; The lender has
commenced its due diligence process and, if the transaction proceeds to closing, the Company anticipates the closing occurring by
year end 2003.&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">Simultaneous with entering into the Forbearance Agreement on October 31, 2003, William G.
Miller, the Chairman of the Board and Co-CEO of the Company, made a $2 million loan to the Company as a part of the Senior Credit
Facility.&nbsp; The loan to the Company and Mr. Miller&rsquo;s participation in the Senior Credit Facility were effected by the
Seventh Amendment to the Credit Agreement and a Participation Agreement between Mr. Miller and the Senior Credit Facility
lenders.</font></p>

<p align="center"><font size="2" face="Times New Roman">&nbsp;C-34</p>

<hr size="1" color="#000080" STYLE="page-break-after: always"></font>

<p style="margin-left: 40"><font size="2" face="Times New Roman">The Company also is negotiating an agreement with the holders of all of the subordinated
notes issued under the Junior Credit Facility pursuant to which all obligations in excess of approximately $9.7 million arising
under such notes would be converted into shares of common stock of the Company.&nbsp; Such conversion would be at an exchange ratio
equal to the average closing prices of the Company&rsquo;s Common Stock during the fourth quarter of 2003.&nbsp; Such conversion
would occur simultaneously with and conditioned upon the closing of the proposed new credit facility described above.&nbsp; The
conversion of approximately 44% of such debt obligations is further conditioned upon approval of the shareholders of the Company
because this common stock would be issued to insiders of the Company.&nbsp;
There is no definitive agreement regarding this transaction at this time and
there can be no assurance that any such agreement will actually be entered into.</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; During the nine months ended September 30, 2003, the Company sold fifteen towing services locations and
other assets from towing services operations for proceeds of $6.4 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  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;  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 style="margin-left: 40"><font size="2" face="Times New Roman">The Company received notification from the New York Stock Exchange (&ldquo;NYSE&rdquo;) on
June 26, 2003 that, based on market information and information in the Company&rsquo;s recent public filings, it is not in
compliance with the NYSE&rsquo;s continued listing standards.&nbsp; The NYSE requires shareholders&rsquo; equity of not less than
$50.0 million and a 30-day average market capitalization of $50.0 million.&nbsp; The Company&rsquo;s shareholders&rsquo; equity was
$40.7 million as of June 30, 2003 and was $33.4 as of September 30, 2003&nbsp; As of October 31, 2003, the Company had a 30-day
average market capitalization of $44.1 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; In September 2003, the Company was notified that the NYSE accepted its
plan to regain compliance with the NYSE continued listing standards related to shareholders' equity and market capitalization
within an eighteen month timeframe.&nbsp; During this timeframe, the Company will be subject to quarterly monitoring for compliance
by the NYSE.</font></p>

<p align="center"><font size="2" face="Times New Roman">&nbsp;C-35</p>

<hr size="1" color="#000080" STYLE="page-break-after: always"></font>

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

<p style="margin-left: 40"><font size="2" face="Times New Roman">During the fourth quarter of the year ended December 31, 2002, the Company&rsquo;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 nine months ended September 30, 2003, the Company disposed of substantially all
of the assets in fifteen towing service markets, as well as assets remaining from other markets of its towing services
segment.&nbsp; Total proceeds from the sales were $6.4 million which included $6.2 million in cash and $0.2 million in notes
receivable.&nbsp; Losses on the sales of discontinued operations were $3.3 million.&nbsp; Subsequent to September 30, 2003, the
Company disposed of assets in the last remaining towing services market with proceeds of approximately $0.3 million.&nbsp; As of
October 31, 2003, there are miscellaneous assets remaining from previous towing market sales.&nbsp;</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">During the nine months ended September 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
October 31, 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 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 September 30, 2003 and December&nbsp;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</font><font size="2"> 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 nine months ended September 30, 2003 and 2002, were as follows (in thousands):</font></p>

<div align="center">
  <center>

<table border="0" cellspacing="0" cellpadding="0" width="686" style="border-collapse: collapse" bordercolor="#111111">
<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="8" valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">Three Months Ended<br />
 September 30, 2003</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="8" valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">Three Months Ended<br />
 September 30, 2002</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" 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" style="border-top-style: solid; border-top-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" 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" style="border-top-style: solid; border-top-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" 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">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" 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" style="border-top-style: solid; border-top-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" 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" style="border-top-style: solid; border-top-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" 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">
<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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" valign="top" style="border-top-style: solid; border-top-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" style="border-top-style: solid; border-top-width: 1">
<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;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" valign="top" style="border-top-style: solid; border-top-width: 1">
<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;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" valign="top" style="border-top-style: solid; border-top-width: 1">
<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;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" valign="top" style="border-top-style: solid; border-top-width: 1">
<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; </font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" valign="top" style="border-top-style: solid; border-top-width: 1">
<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;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">Net Sales</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">18,168&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">644&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">18,812&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">22,015&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">25,799&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">47,814&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top">
<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;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">Operating income (loss)</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(5)</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(540)</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(545)</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">208&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(678)</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(470)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">Loss from discontinued operations</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(1,196)</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(3,649)</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(4,845)</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(977)</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(834)</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(1,811)</font></p>
</td>
</tr>
</table>

</center>
  </div>

<p>&nbsp;</p>

  <div align="center">
    <center>

<table border="0" cellspacing="0" cellpadding="0" width="686" style="border-collapse: collapse" bordercolor="#111111">
<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="8" valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">Nine Months Ended<br />
 September 30, 2003</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="8" valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">Nine Months Ended<br />
 September 30, 2002</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" 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" style="border-top-style: solid; border-top-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" 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" style="border-top-style: solid; border-top-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" 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">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" 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" style="border-top-style: solid; border-top-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" 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" style="border-top-style: solid; border-top-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" valign="top" 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">
<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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" valign="top" style="border-top-style: solid; border-top-width: 1">
<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;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" valign="top" style="border-top-style: solid; border-top-width: 1">
<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;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" valign="top" style="border-top-style: solid; border-top-width: 1">
<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;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" valign="top" style="border-top-style: solid; border-top-width: 1">
<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;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" valign="top" style="border-top-style: solid; border-top-width: 1">
<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;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" valign="top" style="border-top-style: solid; border-top-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">Net Sales</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">49,868&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">8,161&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">58,029&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">65,553&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">79,896&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">145,449&nbsp;</font></p>
</td>
</tr>

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

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">Operating income (loss)</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(102)</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(2,147)</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(2,249)</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">25&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(3,664)</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(3,639)</font></p>
</td>
</tr>

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

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">Loss from discontinued operations</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(3,254)</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(6,029)</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(9,283)</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(2,743)</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(3,302)</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">(6,045)</font></p>
</td>
</tr>
</table>

</center>
    </div>

<p align="center"><font face="Times New Roman" size="2">C-36<hr size="1" color="#000080" STYLE="page-break-after: always">
</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 September 30,
2003 and December 31, 2002 (in thousands):</font></p>

    <div align="center">
      <center>

<table border="0" cellspacing="0" cellpadding="0" width="640" style="border-collapse: collapse" bordercolor="#111111">
<tr height="19">
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="8" height="19" valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">September 30, 2003</font></p>
</td>
<td height="19" valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="8" height="19" valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">December 31, 2002</font></p>
</td>
</tr>

<tr height="19">
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" 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 height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" 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 height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" 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 height="19" valign="bottom">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" 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 height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" 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 height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" 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 height="19" valign="bottom">
<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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top" style="border-top-style: solid; border-top-width: 1">
<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;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p><font size="2" face="Times New
Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr height="19">
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">Cash and temporary investments</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">1,456</font></p>
</td>
<td height="19" valign="bottom">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">7</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">1,463</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">$&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">1,443</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">309</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">$&nbsp;&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">1,752</font></p>
</td>
</tr>

<tr height="19">
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr height="19">
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">Accounts receivable, net</font></p>
</td>
<td colspan="2" height="19" valign="top">
<p align="right"><font size="2" face="Times New Roman">4,361</font></p>
</td>
<td height="19" valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top">
<p align="right"><font size="2" face="Times New Roman">1,814</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top">
<p align="right"><font size="2" face="Times New Roman">6,175</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">2,604</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">4,894</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">7,498</font></p>
</td>
</tr>

<tr height="19">
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr height="19">
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">Inventories</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">15,803</font></p>
</td>
<td height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&ndash;&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">15,803</font></p>
</td>
<td height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">19,559</font></p>
</td>
<td height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&ndash;&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">19,559</font></p>
</td>
</tr>

<tr height="19">
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr height="19">
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">Prepaid expenses and other current<br />
 assets</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">325</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">2,483</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">2,808</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">170</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">3,387</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">3,557</font></p>
</td>
</tr>

<tr height="19">
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr height="19">
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">Current assets of discontinued<br />
 operations held for sale</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">21,945</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">4,304</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">26,249</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">23,776</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">8,590</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">32,366</font></p>
</td>
</tr>

<tr height="19">
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr height="19">
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">Property, plant and equipment</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">9</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">5,923</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">5,932</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&ndash;&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">13,368</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">13,368</font></p>
</td>
</tr>

<tr height="19">
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr height="19">
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">Other long-term assets</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&ndash;&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">1,551</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">1,551</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&ndash;&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">2,049</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">2,049</font></p>
</td>
</tr>

<tr height="19">
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr height="19">
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">Noncurrent assets of discontinued<br />
 operations held for sale</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">9</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">7,474</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">7,483</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">&ndash;&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">15,417</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">15,417</font></p>
</td>
</tr>

<tr height="19">
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr height="19">
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">Current portion of long-term debt</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">11,063</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">3,190</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">14,253</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">12,632</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">11,484</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">24,116</font></p>
</td>
</tr>

<tr height="19">
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr height="19">
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">Accounts payable</font></p>
</td>
<td colspan="2" height="19" valign="top">
<p align="right"><font size="2" face="Times New Roman">3,762</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top">
<p align="right"><font size="2" face="Times New Roman">8,179</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top">
<p align="right"><font size="2" face="Times New Roman">11,941</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">5,710</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">7,841</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">13,551</font></p>
</td>
</tr>

<tr height="19">
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr height="19">
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">Accrued liabilities and other</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">5,094</font></p>
</td>
<td height="19" valign="bottom"><font size="2">&nbsp;</font></td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">7,490</font></p>
</td>
<td height="19" valign="bottom"><font size="2">&nbsp;</font></td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">12,584</font></p>
</td>
<td height="19" valign="bottom">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">4,169</font></p>
</td>
<td height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">11,376</font></p>
</td>
<td height="19" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">15,545</font></p>
</td>
</tr>

<tr height="19">
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top" style="border-top-style: solid; border-top-width: 1">
<font size="2">&nbsp;</font></td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr height="19">
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">Current liabilities of discontinued<br />
 operations held for sale</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">19,919</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">18,859</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">38,778</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">22,511</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">30,701</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">53,212</font></p>
</td>
</tr>

<tr height="19">
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr height="19">
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">Long-term debt</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&ndash;&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">1,013</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">1,013</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">&ndash;&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">1,450</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">1,450</font></p>
</td>
</tr>

<tr height="19">
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="2" height="19" valign="bottom" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
</tr>

<tr height="19">
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">Noncurrent liabilities of discontinued<br />
 operations held for sale</font></p>
</td>
<td height="19" valign="bottom" style="border-bottom-style: double">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td height="19" valign="bottom" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">&ndash;&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="bottom" style="border-bottom-style: double">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td height="19" valign="bottom" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">1,013</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="bottom" style="border-bottom-style: double">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td height="19" valign="bottom" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">1,013</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="bottom" style="border-bottom-style: double">
<p><font size="2" face="Times New Roman">$</font></p>
</td>
<td height="19" valign="bottom" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">&ndash;&nbsp;</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="bottom" style="border-bottom-style: double">
<p><font size="2" face="Times New Roman">$&nbsp;</font></p>
</td>
<td height="19" valign="bottom" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">1,450</font></p>
</td>
<td height="19" valign="bottom">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td height="19" valign="bottom" style="border-bottom-style: double">
<p><font size="2" face="Times New Roman">$&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td height="19" valign="bottom" style="border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">1,450</font></p>
</td>
</tr>
</table>

</center>
</div>

<p>&nbsp;</p>

<p align="center"><font face="Times New Roman" size="2">C-37<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>

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

<p style="margin-left: 40"><font size="2" face="Times New Roman">Basic 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 18,000 and 10,000 potential
dilutive common shares for the three months ended September&nbsp;30, 2003 and 2002, respectively, and 10,000 and 8,000 potential
dilutive common shares for the nine months ended September 30, 2003, and 2002.</font></p>

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

<p style="margin-left: 40"><font size="2" face="Times New Roman">Inventory costs include materials, labor and factory overhead.&nbsp; Inventories are
stated at the lower of cost or market, determined on a first-in, first-out basis.</font></p>

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

<div align="center">
<table border="0" cellspacing="0" cellpadding="0" width="424" style="border-collapse: collapse" bordercolor="#111111">
<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><b><font size="2" face="Times New Roman">September 30,<br />
 2003</font></b></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" 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">
<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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<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;</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<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;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">Chassis</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">4,333</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">1,316</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">Raw Materials</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">10,444</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">10,993</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">Work in process</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">7,520</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">7,746</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">Finished goods</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">7,307</font></p>
</td>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top" 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">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td valign="top">
<p align="right"><b><font size="2" face="Times New Roman">$</font></b></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">29,604</font></p>
</td>
<td valign="top">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right"><font size="2" face="Times New Roman">27,815</font></p>
</td>
</tr>
</table>
</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" face="Times New Roman">The Company periodically reviews the carrying amount of the long-lived assets and goodwill
in both its towing services and towing equipment businesses to determine if those assets may be recoverable based upon the future
operating cash flows expected to be generated by those assets.&nbsp; 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 nine months ended September
30, 2002 as a cumulative effect of a change in accounting principle.&nbsp; Charges of $2,071,000 were recorded during the three
months ended September 30, 2003 to write-down the carrying value of certain long-lived assets in the towing services segment.&nbsp;
The related charges have been included in the loss from discontinued operations in the accompanying financial
statements.</font></p>

<p><font size="2" face="Times New Roman">7.&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 revolving credit facility and an
$8.0 million term loan. The revolving credit facility provides for separate and distinct loan commitment levels for the Company's
towing and recovery equipment segment and RoadOne segment, respectively. At September 30, 2003, $25.7 million and $2.3 million,
respectively, were outstanding under the towing and recovery equipment segment and RoadOne portions of the revolving credit
facility. In addition, $1.5 million was outstanding under the senior term loan, and $15.3 million was outstanding under the
subordinated secured facility.</font></p>

<p align="center"><font face="Times New Roman" size="2">C-38<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>

<p style="margin-left: 40"><font size="2" face="Times New Roman">Availability under the revolving Senior Credit Facility is based on a formula of eligible
accounts receivable, inventory and fleet vehicles as separately calculated for the towing and recovery equipment segment and the
RoadOne segment, respectively.&nbsp; Borrowings under the term loan are collateralized by the Company's property, plant, and
equipment.&nbsp; The Company is required to make monthly amortization payments on the term loan of $167,000.&nbsp; The Company
entered into a Seventh Amendment to Credit Agreement on October 31, 2003 (the "Seventh Amendment"), pursuant to which, among other
things, (i) the $167,000 amortization payment due on November 1, 2003 was extended until the termination date of the Senior Credit
Facility and (ii) the $167,000 amortization payment due on December 1, 2003 was deferred until December 31, 2003.&nbsp; The Senior
Credit Facility bears interest at the prime rate (as defined) plus 2.75%, subject to the rights of the senior lender agent or the
required lenders to charge a default rate equal to the prime rate (as defined) plus 4.75% during the continuance of any event of
default under the Senior Credit Facility, provided, however, that during the Forbearance Period (described above), the Senior
Credit Facility bears interest at the prime rate (as defined) pus 2.75% in accordance with the terms of the Forbearance
Agreement.</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. 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;</font><font size="2">
</font> <font size="2" color="black">The Junior Credit
Facility matured and was due and payable on July 23, 2003, under which $15.3 million principal amount was outstanding at September
30, 2003.&nbsp; The Company has not yet repaid or refinanced the outstanding principal, fees and interest under the</font><font size="2">
</font> <font size="2" color="black">Junior Credit Facility.&nbsp; The</font><font size="2">
</font>
<font size="2" color="black">Company&rsquo;s failure to repay all outstanding principal, fees,
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;</font><font size="2"> </font>
<font size="2" color="black">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 &ldquo;Standstill Period&rdquo;) which will expire on the earlier of:&nbsp;
(i)</font><font size="2"> <font color="black">November 26, 2003 (the date which is 120 days</font> <font color="black">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</font> <font color="black">April 24, 2004 (the date which is 270 days</font> <font color="black">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></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.</font></p>

<p align="center"><font face="Times New Roman" size="2">C-39<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>

<p style="margin-left: 40"><font size="2" color="black" face="Times New Roman">On October 31, 2003, the Company entered into a Forbearance Agreement with
the lenders and the senior lender agent under the Senior Credit Facility (the "Forbearance Agreement"), pursuant to which, among
other things, the senior lenders agreed to forbear from exercising any remedies in respect of the defaults then existing under the
senior credit facility (collectively, the "Existing Senior  Facility Defaults") as a result of (i) the failure to timely
deliver financial statements for fiscal year 2002 and the failure to deliver a report of their independent certified public
accountants which is unqualified in any respect, as well as the event of default under the Senior Credit Facility caused by the
event of default arising from such failure under the Junior Credit Facility; (ii) the failure to fulfill certain payment
obligations to the junior lenders under the Junior Credit Facility; and (iii) the failure to fulfill certain financial covenants in
the Junior Credit Facility for one or more of the fiscal quarters ending in fiscal year 2003, which failure would constitute an
event of default under the Senior Credit Facility.&nbsp; The forbearance period under the Forbearance Agreement (the "Forbearance
Period") expires on the earlier of (x) December 31, 2003, (y) the occurrence of certain bankruptcy type events in respect of the
Company or any of its Subsidiaries, and (z) the failure of the Company or any of its Subsidiaries that are borrower parties under
the Senior Credit Facility to perform their obligations under the Senior Credit Facility or the Forbearance Agreement.&nbsp; Under
the Forbearance Agreement, the senior lenders and the senior lender agent do not waive their rights and remedies with respect to
the Existing Senior Facility Defaults, but agree to forbear from exercising rights and remedies with respect to the Existing Senior
Facility Defaults solely during the Forbearance Period.&nbsp; There can be no assurance that the senior lenders or the senior
lender agent under the Senior Credit Facility will agree to extend the date of the Forbearance Period upon the expiration thereof
or to waive any of the Existing Senior Facility Defaults.&nbsp; If the Existing Senior Facility Defaults are not waived, upon
expiration of the Forbearance Period, such events of default could result in the acceleration of the amounts due under the Senior
Credit Facility as well as other remedies.&nbsp; There is no assurance that the Company will be able to obtain such a waiver from
the senior lenders of the Existing Senior Facility Defaults.&nbsp; Further, the Company has not obtained any waiver from the junior
lenders in respect of certain events of default that have occurred under the Junior Credit Facility and there can be no assurance
that the Company will be able to obtain such a waiver from the junior lenders.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">Subsequent to April 1, 2003, the Company was in default under certain covenants under its
Senior and Junior Credit Facility agreements.&nbsp; Accordingly, amounts outstanding under these Facilities are presented as
current liabilities in the accompanying December 31, 2002 and September 30, 2003 consolidated balance sheets.&nbsp;</font><font size="2"> Waivers of such covenants typically require payment of substantial additional fees, and there can be no assurance that the
lenders will agree to any future waivers or amendments. The Company's bank facilities are collateralized by liens on all of the
Company's assets. The liens give the lenders the right to foreclose on the assets of the Company under certain defined events of
default and such foreclosure could allow the lenders to gain control of the operations of the Company.</font></p>

<p style="margin-left: 40"><font size="2" face="Times New Roman">On October 3, 2003, the Company entered into a letter agreement with a large financial
institution pursuant to which such lender confirmed its interest in providing up to $53 million of financing in order to refinance
the Senior Credit Facility and the Junior Credit Facility.&nbsp; The agreement does not constitute a commitment or undertaking by
such lender to provide financing, and is subject to completion of due diligence and various other conditions.&nbsp;The lender has commenced its due diligence process and, if
the transaction proceeds to closing, the Company anticipates the closing occurring by year end 2003.&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">Simultaneous</font><font size="2"> with entering into the Forbearance Agreement on October
31, 2003, William G. Miller, the Chairman of the Board and Co-CEO of the Company, made a $2 million loan to the Company as a part
of the Senior Credit Facility.&nbsp; The loan to the Company and Mr. Miller&rsquo;s participation in the Senior Credit Facility
were effected by the Seventh Amendment to the Credit Agreement and a Participation Agreement between Mr. Miller and the Senior
Credit Facility lenders.</font></p>

<p align="center"><font face="Times New Roman" size="2">C-40<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>

<p style="margin-left: 40"><font size="2" face="Times New Roman">The Company also is negotiating an agreement with the holders of all of the subordinated
notes issued under the Junior Credit Facility pursuant to which all obligations in excess of approximately $9.7 million arising
under such notes would be converted into shares of common stock of the Company.&nbsp; Such conversion would be at an exchange ratio
equal to the average closing prices of the Company&rsquo;s Common Stock during the fourth quarter of 2003.&nbsp; Such conversion
would occur simultaneously with and conditioned upon the closing of the proposed new credit facility described above.&nbsp; The
conversion of approximately 44% of such debt obligations is further conditioned upon approval of the shareholders of the Company
because this common stock would be issued to insiders of the Company.&nbsp;
There is no definitive agreement regarding this transaction at this time and
there can be no assurance that any such agreement will actually be entered into.</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
nine months ended September 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="598" style="border-collapse: collapse" bordercolor="#111111">
<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;</font></p>
</td>
<td colspan="6" valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">Three Months Ended<br />
 September 30,</font></p>
</td>
<td colspan="5" valign="top" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">Nine Months Ended<br />
 September 30,</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p style="margin-top: 10"><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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>
</td>
<td colspan="3" valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="center" style="margin-top: 10"><u><font size="2" face="Times New Roman">2003</font></u></p>
</td>
<td colspan="4" valign="top">
<p align="center" style="margin-top: 10"><u><font size="2" face="Times New Roman">2002</font></u></p>
</td>
<td colspan="2" valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="center" style="margin-top: 10"><u><font size="2" face="Times New Roman">2003</font></u></p>
</td>
<td colspan="2" valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="center" style="margin-top: 10"><u><font size="2" face="Times New Roman">2002</font></u></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">Net loss available to common stockholders, as<br />
 reported</font></p>
</td>
<td colspan="2" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td colspan="2" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">(6,835)</font></p>
</td>
<td valign="bottom">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom">
<p align="right"><font size="2" face="Times New Roman">(962)</font></p>
</td>
<td colspan="2" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom">
<p align="right"><font size="2" face="Times New Roman">(7,887)</font></p>
</td>
<td valign="bottom">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom">
<p align="right"><font size="2" face="Times New Roman">(23,352)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><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 colspan="4" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&ndash;&nbsp;</font></p>
</td>
<td colspan="2" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&ndash;&nbsp;&nbsp;</font></p>
</td>
<td colspan="3" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&ndash;&nbsp;&nbsp;</font></p>
</td>
<td colspan="2" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">&ndash;&nbsp;&nbsp;</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><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 colspan="4" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">(55)</font></p>
</td>
<td colspan="2" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">(29)</font></p>
</td>
<td colspan="3" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">(211)</font></p>
</td>
<td colspan="2" valign="bottom" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="right"><font size="2" face="Times New Roman">(276)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">Net loss available to common stockholders, pro forma</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td colspan="3" valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">(6,890)</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">(991)</font></p>
</td>
<td colspan="2" valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">(8,098)</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="top" style="border-top-style: solid; border-top-width: 1">
<p align="right"><font size="2" face="Times New Roman">(23,628)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">Loss per common share:<br />
 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted, as reported</font></p>
</td>
<td valign="bottom">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td colspan="3" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">(0.73)</font></p>
</td>
<td valign="bottom">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom">
<p align="right"><font size="2" face="Times New Roman">(0.10)</font></p>
</td>
<td colspan="2" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom">
<p align="right"><font size="2" face="Times New Roman">(0.84)</font></p>
</td>
<td valign="bottom">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom">
<p align="right"><font size="2" face="Times New Roman">(2.50)</font></p>
</td>
</tr>

<tr>
<td valign="top">
<p><font size="2" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic and diluted, pro forma</font></p>
</td>
<td valign="bottom">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td colspan="3" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">(0.74)</font></p>
</td>
<td valign="bottom">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom">
<p align="right"><font size="2" face="Times New Roman">(0.11)</font></p>
</td>
<td colspan="2" valign="bottom">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom">
<p align="right"><font size="2" face="Times New Roman">(0.87)</font></p>
</td>
<td valign="bottom">
<p align="right"><font size="2" face="Times New Roman">$</font></p>
</td>
<td valign="bottom">
<p align="right"><font size="2" face="Times New Roman">(2.53)</font></p>
</td>
</tr>
</table>
</div>

<p><font size="2" face="Times New Roman">9.&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; 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 $0.3
million of deferred tax assets and offsetting valuation allowance was recorded for the nine months ended September 30,
2003.</font></p>

<p align="center"><font face="Times New Roman" size="2">C-41<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>

<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" face="Times New Roman">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></p>

<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center">&nbsp;</p>
<p align="center"><font size="2">C-42</font></p>

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

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

<p align="right">
<b><font size="2">[The following discussion is a modified version of
Management's<br>
Discussion and Analysis that appeared in the
Company's Annual<br>
Report on Form 10-K
for fiscal year ended December 31, 2002<br>
All modifications appear in italicized, bolded and bracketed text]</font></b><p align="center">
<b><font size="2">MANAGEMENT&#8217;S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION<br>
AND RESULTS OF OPERATIONS</font></b><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following discussion of the results of operations and financial condition of the
Company should be read in conjunction with the Consolidated Financial Statements
and Notes thereto.</font></p><p>
<b><font size="2">GENERAL</font></b><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>&nbsp;Going
Concern. </i>&nbsp;The
Company&#8217;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.  As more fully
described under 2003 Amendment to Credit Facility, subsequent to December 31, 2002, the Company was
in default of certain covenants under its Senior and Junior Credit Facility
Agreements, and its Junior Credit Facility matures on July 23, 2003.  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.  These circumstances raise substantial doubt about the
Company&#8217;s ability to continue as a going concern.</font></p><p>
<i><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Discontinued Operations</font></i><font size="2">.&nbsp; &nbsp;During
the year ended December 31, 2002, the Company&#8217;s management and its board
of directors made the decision to divest of its remaining towing services
segment, as well as the 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>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
consolidated financial statements are prepared in accordance with accounting
principles generally accepted in the United States of America, which require the
Company to make estimates.  Certain accounting policies are deemed
&#8220;critical,&#8221; as they require management&#8217;s highest degree of
judgment, estimates and assumptions.  A discussion of critical accounting
policies, the judgments and uncertainties affecting their application and the
likelihood that materially different amounts would be reported under different
conditions or using different assumptions follows:</font></p><p>
<i><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts
receivable. </font>  </i><font size="2">The Company extends credit to customers in the normal course of
business.  Collections from customers are continuously monitored and an
allowance for doubtful accounts is maintained based on historical experience and
any specific customer collection issues.  While such bad debt expenses have
historically been within expectations and the allowance established, there can
be no assurance that the Company will continue to experience the same credit
loss rates as in the past. </font>  <p>
<i><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Valuation
of long-lived assets and goodwill. </font>  </i><font size="2">Long-lived assets and goodwill are
reviewed for impairment whenever events or circumstances indicate that the
carrying amount of these assets may not be fully recoverable.  When a
determination has been made that the carrying amount of long-lived assets and
goodwill may not be fully recovered, the amount of impairment is measured by
comparing an asset&#8217;s estimated fair value to its carrying value.  The
determination of fair value is based on projected future cash flows discounted
at a rate determined by management, or if available independent appraisals or
sales price negotiations.  The estimation of fair value includes significant
judgment regarding assumptions of revenue, operating costs, interest rates,
property and equipment additions; and industry competition and general economic
and business conditions among other factors.</font></p>
<p align="center"><font face="Times New Roman" size="2">D-1</font></p>
<font face="Times New Roman" size="2"><hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
adoption of Financial Accounting Standard No. 142, <i>Goodwill and Other
Intangible Assets </i>on January 1, 2002, the Company ceased to amortize
goodwill.  In lieu of amortization, the Company is required to perform an
initial impairment review of goodwill in 2002 and an annual impairment review
thereafter.  For further detail of the Company&#8217;s impairment review and
related write downs, See Note 7 to the Consolidated Financial Statements.</font></p><p>
<i><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income
taxes. </font>  </i><font size="2">The Company recognizes deferred tax assets and liabilities based on
differences between the financial statement carrying amounts and the tax bases
of assets and liabilities.  The Company considers the need to record a valuation
allowance to reduce deferred tax assets to the amount that is more likely than
not to be realized.  The Company considers tax loss carrybacks, reversal of
deferred tax liabilities, tax planning and estimates of future taxable income in
assessing the need for a valuation allowance.  The Company established a
deferred tax valuation allowance of $18.0 million as of December 31, 2002.  The
allowance reflects the Company&#8217;s recognition that continuing losses from
operations and certain liquidity matters associated with the Company&#8217;s
credit facility indicate that it is more likely than not that certain future tax
benefits will not be realized through future taxable income.  At December 31,
2002, the Company recorded a full valuation allowance against its net deferred
tax assets from continuing and discontinuing operations totaling approximately
$18.0 million.</font></p><p>
<i><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues</font></i><font size="2">.
Under the Company&#8217;s accounting policies, sales are recorded when equipment
is shipped to independent distributors or other customers.  While the Company
manufactures only the bodies of wreckers, which are installed on truck chassis
manufactured by third parties, the Company sometimes purchases the truck chassis
for resale to its customers.  Sales of Company-purchased truck chassis are
included in net sales.  Margins are substantially lower on completed recovery
vehicles containing Company-purchased chassis because the markup over the cost
of the chassis is nominal.  Revenue from Company owned distributors is recorded
at the time equipment is shipped to customers or services are rendered.  The
towing services division recognizes revenue at the time services are performed.
</font>
<p>
<i><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seasonality</font></i><font size="2">.
The Company&#8217;s towing and recovery equipment segment has experienced some
seasonality in net sales due in part to decisions by purchasers of light duty
wreckers to defer wrecker purchases near the end of the chassis model year.  The
segment&#8217;s net sales have historically been seasonally impacted due in part
to sales made at the largest towing and recovery equipment trade show which is
held in the spring. </font>  <p>
<i><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change
in Fiscal Year</font></i><font size="2">. On September 25, 2001, the Company announced that its Board
of Directors had approved a change in the Company&#8217;s fiscal year, from
April 30 to December 31, effective December 31, 2001.  The change to a December
31 fiscal year will enable the Company to report results on a conventional
calendar basis.  As a result of the change in fiscal year, the Company filed a
transition report for the eight-month period ended December 31, 2001, and the
comparative data below compares the financial results for that period against
the results for the fiscal year ended April&nbsp;&nbsp;30, 2001.  The periods
are not directly comparable, in that they relate to periods of materially
different lengths, and also that the transition period does not include results
from the three months ended April 30, a fiscal quarter in which the
Company&#8217;s sales have traditionally been seasonally higher than other
quarters.</font></p>
<p align="center"><font face="Times New Roman" size="2">D-2</font></p>
<font face="Times New Roman" size="2"><hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<b><font size="2">RESULTS OF OPERATIONS</font></b><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table sets forth, for the periods indicated, the components of the
consolidated statements of operations expressed as a percentage of net
sales.</font></p>
  <table border="0" cellspacing="0" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
<tr valign="top">
<td width="269.333266" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="93.333310" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">
<br></font><b><font size="2">Year Ended</font></b></p align="center">
</td>
<td width="15.999996" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="106.666640" bgcolor="#FFF3CE" >
<p align="center">
<b><font size="2">Eight Months<br>
Ended</font></b></td>
<td width="14.666663" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="162.666626" colspan="3" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="269.333266" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="center">
<b><font size="2">December 31,</font></b></p align="center">
</td>
<td width="15.999996" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="106.666640" colspan="1" rowspan="1" >
<p align="center">
<b><font size="2">December 31,</font></b></p align="center">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="162.666626" colspan="3" rowspan="1" >
<p align="center">
<b><font size="2">Years Ended April 30,</font></b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="269.333266" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="93.333310" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE" >
<p align="center">
<b><font size="2">2002</font></b></p align="center">
</td>
<td width="15.999996" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="106.666640" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE" >
<p align="center">
<b><font size="2">2001</font></b></p align="center">
</td>
<td width="14.666663" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="79.999980" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE" >
<p align="center">
<b><font size="2">2001</font></b></p align="center">
</td>
<td width="14.666663" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="66.666650" style="border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE" >
<p align="center">
<b><font size="2">2000</font></b></p align="center">
</td>
</tr>
<tr valign="top">
<td width="269.333266" colspan="1" rowspan="1" >
<p>
<u><font size="2">Continuing Operations</font></u><font size="2">:</font></p>
</td>
<td width="93.333310" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<font size="2">
&nbsp;</font></td>
<td width="15.999996" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="106.666640" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<font size="2">
&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="79.999980" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<font size="2">
&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="66.666650" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1" >
<font size="2">
&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="269.333266" bgcolor="#FFF3CE" >
<p>
<font size="2">Net Sales</font></p>
</td>
<td width="93.333310" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">100.0%</font></p align="center">
</td>
<td width="15.999996" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="106.666640" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">100.0%</font></p align="center">
</td>
<td width="14.666663" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="79.999980" bgcolor="#FFF3CE" >
<p align="right">
<font size="2">100.0%</font></p align="right">
</td>
<td width="14.666663" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="66.666650" bgcolor="#FFF3CE" >
<p align="right">
<font size="2">100.0%</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="269.333266" colspan="1" rowspan="1" >
<p style="margin-left: 20">
<font size="2">Costs and expenses:</font></p>
</td>
<td width="93.333310" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="15.999996" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="106.666640" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="79.999980" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="66.666650" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="269.333266" bgcolor="#FFF3CE" >
<p style="margin-left: 20">
<font size="2">Costs of operations</font></p>
</td>
<td width="93.333310" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">85.9%</font></p align="center">
</td>
<td width="15.999996" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="106.666640" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">86.2%</font></p align="center">
</td>
<td width="14.666663" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="79.999980" bgcolor="#FFF3CE" >
<p align="right">
<font size="2">85.3%</font></p align="right">
</td>
<td width="14.666663" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="66.666650" bgcolor="#FFF3CE" >
<p align="right">
<font size="2">84.2%</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="269.333266" colspan="1" rowspan="1" >
<p style="margin-left: 20">
<font size="2">Selling, general and administrative</font></p>
</td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="center">
<font size="2">8.6%</font></p align="center">
</td>
<td width="15.999996" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="106.666640" colspan="1" rowspan="1" >
<p align="center">
<font size="2">8.8%</font></p align="center">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right">
<font size="2">9.7%</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">8.7%</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="269.333266" bgcolor="#FFF3CE" >
<p style="margin-left: 20">
<font size="2">Special charges and other operating<br>
expenses, net</font></p>
</td>
<td width="93.333310" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">
<br>  0.0%</font></p align="center">
</td>
<td width="15.999996" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="106.666640" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">
<br>  1.3%</font></p align="center">
</td>
<td width="14.666663" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="79.999980" bgcolor="#FFF3CE" >
<p align="right">
<font size="2">
<br>0.0%</font></p align="right">
</td>
<td width="14.666663" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="66.666650" bgcolor="#FFF3CE" >
<p align="right">
<font size="2">
<br>1.1%</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="269.333266" colspan="1" rowspan="1" >
<p style="margin-left: 20">
<font size="2">Interest expense, net</font></p>
</td>
<td width="93.333310" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="center">
<font size="2">2.2%</font></p align="center">
</td>
<td width="15.999996" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<font size="2">
&nbsp;</font></td>
<td width="106.666640" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="center">
<font size="2">0.7%</font></p align="center">
</td>
<td width="14.666663" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<font size="2">
&nbsp;</font></td>
<td width="79.999980" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2">1.0%</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<font size="2">
&nbsp;</font></td>
<td width="66.666650" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2">2.3%</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="269.333266" bgcolor="#FFF3CE" >
<p style="margin-left: 30">
<font size="2">Total costs and expenses</font></p>
</td>
<td width="93.333310" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">96.7%</font></p align="center">
</td>
<td width="15.999996" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="106.666640" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">97.0%</font></p align="center">
</td>
<td width="14.666663" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="79.999980" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE" >
<p align="right">
<font size="2">96.0%</font></p align="right">
</td>
<td width="14.666663" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="66.666650" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE" >
<p align="right">
<font size="2">96.3%</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="269.333266" colspan="1" rowspan="1" >
<p>
<font size="2">Income before income taxes</font></p>
</td>
<td width="93.333310" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" >
<p align="center">
<font size="2">3.3%</font></p align="center">
</td>
<td width="15.999996" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" >
<font size="2">
&nbsp;</font></td>
<td width="106.666640" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" >
<p align="center">
<font size="2">3.0%</font></p align="center">
</td>
<td width="14.666663" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" >
<font size="2">
&nbsp;</font></td>
<td width="79.999980" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" >
<p align="right">
<font size="2">4.0%</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" >
<font size="2">
&nbsp;</font></td>
<td width="66.666650" colspan="1" rowspan="1" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double" >
<p align="right">
<font size="2">3.7%</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="269.333266" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="93.333310" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="15.999996" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="106.666640" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="14.666663" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="79.999980" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="14.666663" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="66.666650" style="border-top-style: solid; border-top-width: 1" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="269.333266" colspan="1" rowspan="1" >
<p>
<u><font size="2">Discontinued Operations</font></u><font size="2">:</font></p>
</td>
<td width="93.333310" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="15.999996" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="106.666640" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="79.999980" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="66.666650" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="269.333266" bgcolor="#FFF3CE" >
<p>
<font size="2">Net Sales</font></p>
</td>
<td width="93.333310" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">100.0%</font></p align="center">
</td>
<td width="15.999996" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="106.666640" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">100.00%</font></p align="center">
</td>
<td width="14.666663" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="79.999980" bgcolor="#FFF3CE" >
<p align="right">
<font size="2">100.0%</font></p align="right">
</td>
<td width="14.666663" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="66.666650" bgcolor="#FFF3CE" >
<p align="right">
<font size="2">100.0%</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="269.333266" colspan="1" rowspan="1" >
<p style="margin-left: 20">
<font size="2">Costs and expenses:</font></p>
</td>
<td width="93.333310" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="15.999996" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="106.666640" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="79.999980" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="66.666650" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="269.333266" bgcolor="#FFF3CE" >
<p style="margin-left: 20">
<font size="2">Costs of operations</font></p>
</td>
<td width="93.333310" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">87.2%</font></p align="center">
</td>
<td width="15.999996" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="106.666640" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">86.4%</font></p align="center">
</td>
<td width="14.666663" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="79.999980" bgcolor="#FFF3CE" >
<p align="right">
<font size="2">85.4%</font></p align="right">
</td>
<td width="14.666663" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="66.666650" bgcolor="#FFF3CE" >
<p align="right">
<font size="2">84.1%</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="269.333266" colspan="1" rowspan="1" >
<p style="margin-left: 20">
<font size="2">Selling, general and administrative</font></p>
</td>
<td width="93.333310" colspan="1" rowspan="1" >
<p align="center">
<font size="2">20.8%</font></p align="center">
</td>
<td width="15.999996" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="106.666640" colspan="1" rowspan="1" >
<p align="center">
<font size="2">15.4%</font></p align="center">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="79.999980" colspan="1" rowspan="1" >
<p align="right">
<font size="2">15.8%</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" >
<font size="2">
&nbsp;</font></td>
<td width="66.666650" colspan="1" rowspan="1" >
<p align="right">
<font size="2">20.3%</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="269.333266" bgcolor="#FFF3CE" >
<p style="margin-left: 20">
<font size="2">Special charges and other operating expense,<br>
&nbsp;&nbsp;&nbsp;net</font></p>
</td>
<td width="93.333310" bgcolor="#FFF3CE" >
<p align="center">
<font size="2"><br>
0.8%</font></p align="center">
</td>
<td width="15.999996" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="106.666640" bgcolor="#FFF3CE" >
<p align="center">
<font size="2"><br>
9.2%</font></p align="center">
</td>
<td width="14.666663" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="79.999980" bgcolor="#FFF3CE" >
<p align="right">
<font size="2"><br>
0.0%</font></p align="right">
</td>
<td width="14.666663" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="66.666650" bgcolor="#FFF3CE" >
<p align="right">
<font size="2"><br>
23.1%</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="269.333266" colspan="1" rowspan="1" >
<p>
<font size="2">Interest Expense, net</font></p>
</td>
<td width="93.333310" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="center">
<font size="2">3.1%</font></p align="center">
</td>
<td width="15.999996" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<font size="2">
&nbsp;</font></td>
<td width="106.666640" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="center">
<font size="2">3.9%</font></p align="center">
</td>
<td width="14.666663" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<font size="2">
&nbsp;</font></td>
<td width="79.999980" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2">5.2%</font></p align="right">
</td>
<td width="14.666663" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<font size="2">
&nbsp;</font></td>
<td width="66.666650" colspan="1" rowspan="1" style="border-bottom-style: solid; border-bottom-width: 1" >
<p align="right">
<font size="2">2.5%</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="269.333266" bgcolor="#FFF3CE" >
<p style="margin-left: 30">
<font size="2">Total costs and expenses</font></p>
</td>
<td width="93.333310" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">111.9%</font></p align="center">
</td>
<td width="15.999996" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="106.666640" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE" >
<p align="center">
<font size="2">114.9%</font></p align="center">
</td>
<td width="14.666663" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="79.999980" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE" >
<p align="right">
<font size="2">106.4%</font></p align="right">
</td>
<td width="14.666663" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE" >
<font size="2">
&nbsp;</font></td>
<td width="66.666650" style="border-top-style: solid; border-top-width: 1; border-bottom-style: solid; border-bottom-width: 1" bgcolor="#FFF3CE" >
<p align="right">
<font size="2">130.0%</font></p align="right">
</td>
</tr>
<tr valign="top">
<td width="269.333266" colspan="1" rowspan="1" >
<p>
<font size="2">Loss before income taxes</font></p>
</td>
<td width="93.333310" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="center">
<font size="2">(11.9)%</font></p align="center">
</td>
<td width="15.999996" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<font size="2">
&nbsp;</font></td>
<td width="106.666640" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="center">
<font size="2">(14.9)%</font></p align="center">
</td>
<td width="14.666663" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<font size="2">
&nbsp;</font></td>
<td width="79.999980" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right">
<font size="2">(6.4)%</font></p align="right">
</td>
<td width="14.666663" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<font size="2">
&nbsp;</font></td>
<td width="66.666650" style="border-top-style: solid; border-top-width: 1; border-bottom-style: double">
<p align="right">
<font size="2">(30.0)%</font></p align="right">
</td>
</tr>
</table>
<p>
<b><font size="2">Twelve Months Ended December 31, 2002 Compared to Eight Months Ended December
31, 2001</font></b><p>
<i><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuing
Operations</font></i><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
sales from continuing operations of the towing and recovery equipment segment
were $203.1 million for the twelve months ended December 31, 2002 compared to
$142.4 million for the eight months ended December 31, 2001. Net sales at
December 31, 2001 include only eight months of activity, accounting for a
substantial portion of the increase from period to period. Demand for the
Company&#8217;s towing and recovery equipment continues to be negatively
impacted by cost pressures facing its customers and tightness in the current
credit markets.</font></p>
<p align="center"><font face="Times New Roman" size="2">D-3</font></p>
<font face="Times New Roman" size="2"><hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Costs
of operations of the Company as a percentage of net sales decreased slightly to
85.9% for the year ended December 31, 2002 from 86.2% for the eight months ended
December 31, 2001. Selling, general, and administrative expenses decreased 0.2%
as a percentage of net sales from 8.8% for the eight months ended December 31,
2001 to 8.6% for the twelve months ended December 31, 2002. The slight decrease
in costs of sales and selling, general, and administrative expenses as a
percentage of sales is the result of the Company&#8217;s continued focus on
controlling costs of its continuing operations while disposing of its towing
services segment and distribution group.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
January 2002, the Company adopted SFAS No. 142, "Goodwill and Other Intangible
Assets". Upon adoption of SFAS No. 142, the Company ceased to amortize goodwill.
In lieu of amortization, the Company was required to perform an initial
impairment review, which resulted in the write-off of $1.7 million of goodwill
attributable to continuing operations and $20.1 million of goodwill attributable
to discontinued operations.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company periodically reviews the carrying value of goodwill and long-lived
assets to determine if those assets may be recoverable based upon future
operating cash flows expected to be generated by those assets. During the eight
months ended December 31, 2001, evaluations of these assets indicated that
projected future cash flows from certain towing and recovery equipment
operations were not sufficient to fully recover the carrying value of its
goodwill and certain other long-lived assets. Accordingly, a non-cash impairment
charge of $1.7 million was recorded.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest
expense for continuing operations for the year ended December 31, 2002 was $4.3
million compared to $1.1 million for the eight months ended December 31, 2001 as
a result of the acceleration of amortization of deferred financing costs.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
effective rate for the provision for income taxes for continuing operations was
47.7% for the year ended December 31, 2002 compared to 56.3% for the eight
months ended December 31, 2001.  The decrease in the effective rate is due to a
deferred tax valuation allowance recorded as of December 31, 2001 and permanent
differences.  The allowance reflected the Company&#8217;s recognition that
continuing losses from operations and certain liquidity matters associated with
the Company&#8217;s credit facility indicate that it is more likely than not
that certain future tax benefits will not be realized through future taxable
income.</font></p><p>
<i><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued
Operations</font></i><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
sales of discontinued operations increased to $206.9 million for the year ended
December 31, 2002 from $ 161.5 million for the eight months ended December 31,
2001. The increase is primarily due to the fact that net sales at December 31,
2001 include only eight months of activity. Net sales of the distribution group
were $85.4 million for the year ended December 31, 2002 compared to $60.6
million for the eight months ended December 31, 2001. Net sales of the towing
services segment were $121.6 million for the year ended December 31, 2002
compared to $101.0 million for the eight months ended December 31, 2001.
Revenues of the towing services segment were negatively affected by the
Company&#8217;s ongoing efforts to sell or close under performing and other
markets.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost
of sales as a percentage of net sales for the distribution group was 92.1 % for
the year ended December 31, 2002 compared to 91.7% for the eight months ended
December 31, 2001. Cost of sales of the towing services segment increased 0.4%
from 83.3% for the eight months ended December 31, 2001 to 83.7% for the year
ended December 31, 2002.</font></p>
<p align="center"><font face="Times New Roman" size="2">D-4</font></p>
<font face="Times New Roman" size="2"><hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling,
general, and administrative expenses as a percentage of sales was 8.8% for the
distribution group and 29.2% for the towing services segment for the year ended
December 31, 2002 compared to 9.5% and 18.9%, respectively for the eight months
ended December 31, 2001.  The decrease for the distribution group was the result of
the Company&#8217;s continued cost reduction efforts as the Company began
implementation of its plans for disposition of these operations.  The increase
in the towing services segment was the result of expenses not decreasing as
rapidly as revenues as markets were sold throughout the year as well as various
expenses incurred in connection with such dispositions.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
interest expense was $6.5 million for the year ended December 31, 2002 compared
to $6.3 million for the eight months ended December 31, 2001, respectively.</font></p><p>
<b><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b><font size="2">The
effective rate for the provision for income taxes for discontinued operations
was 12.8% for the year ended December 31, 2002 compared to 2.4% for the eight
months ended December 31, 2001.</font></p><p>
<b><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eight
Months Ended December 31, 2001 Compared to Year Ended April 30, 2001</font></b><p>
<i><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuing
Operations</font></i><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
sales for the eight months ended December 31, 2001 were $142.4 compared to
$212.9 for the twelve months ended April 30, 2001.  Net sales at December 31,
2001 include only eight months activity, accounting for a substantial portion of
the decrease.  The Company experienced generally stable order rates for towing
and recovery equipment in the face of continued challenging business conditions
during the eight months ended December 31, 2001.  Demand for the Company&#8217;s
towing and recovery equipment continued to be negatively impacted by cost
pressures facing its customers.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost
of operations for the Company as a percentage of net sales increased to 86.2%
for the eight months ended December 31, 2001 compared to 85.3% for the year
ended April 30, 2001.  The increase as a percentage of net sales was primarily
due to declines in overall sales volume as discussed above.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling,
general, and administrative expenses decreased 0.9% as a percentage of net sales
from 9.7% for the year ended April 30, 2001 to 8.8% for the eight months ended
December 31, 2001.  The slight decrease in selling, general, as a percentage of
sales, is a result of the Company&#8217;s continued focus on cost reduction
efforts implemented in prior fiscal years.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company periodically reviews the carrying value of goodwill and long-lived
assets in both to determine if those assets may be recoverable based upon the
future operating cash flows expected to be generated by those assets.  During
the eight months ended December 31, 2001 evaluations indicated that projected
cash flows from certain towing services markets were not sufficient to fully
recover the carrying value of its goodwill and other long-lived assets.
Accordingly, the Company recorded non-cash impairment charges of $1.7 million
for continuing operations and $14.9 million for discontinued operations.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest
expense for the eight months ended December 31, 2001 and the year ended April
30, 2001 was $1.1 million and $2.1 million, respectively.  During the eight
months ended December 31, 2001, the Company incurred lower interest expense as a
result of refinancing its line of credit at more favorable rates in July 2001, a
decrease in debt levels and four months less interest expense in the transition
period.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
effective rate of the provision for income taxes for continuing operations for
the eight months ended December 31, 2001 was 56.3% compared to 29.7% for the
year ended April 30, 2001.  The increase in the effective rate is due to a
deferred tax valuation allowance recorded as of December 31, 2001.  The
allowance reflects the Company&#8217;s recognition that continuing losses from
operations and certain liquidity matters associated with the Company&#8217;s
credit facility indicate that it is more likely than not that certain future tax
benefits will not be realized through future taxable income.</font></p>
<p align="center"><font face="Times New Roman" size="2">D-5</font></p>
<font face="Times New Roman" size="2"><hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<i><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued
Operations</font></i><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
sales of discontinued operations decreased from $282.6 million for the year
ended April 30, 2001 to $ 161.5 million for the eight months ended December 31,
2002. The decrease is primarily due to the fact that net sales at December 31,
2001 include only eight months of activity. Net sales of the distribution group
were $60.6 million for the eight months ended December 31, 2001 compared to
$100.3 million for the year ended April 30, 2001. Net sales of the towing
services segment was $101.0 million for the eight months ended December 31, 2001
compared to $182.3 million for the year ended April 30, 2001. Revenues in the
distribution group were negatively impacted by cost pressures facing its
customers. Revenues in the towing services segment were negatively impacted
during the eight months ended December 31, 2001 due to unseasonably mild
temperatures, the impact on the overall transportation industry following the
events of September 11<sup>th</sup>, and the sale of several towing services
markets as part of the Company&#8217;s continued efforts to eliminate
underperforming terminals.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost
of sales as a percentage of net sales for the distribution group was 91.7% for
the eight months ended December 31, 2001 compared to 91.3% for the year ended
April 30, 2001. Cost of sales of the towing services increased 1.1% from 82.2%
for the year ended April 30, 2001 to 83.3% for the eight months ended December
31, 2001 primarily due to declines in revenues of underperforming markets</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling,
general, and administrative expenses as a percentage of sales was 9.5% for the
distribution group and 18.9% for the towing services segment for the eight
months ended December 31, 2001 compared to 8.4% and 19.9%, respectively for the
year ended April 30, 2001. The increase for the distribution group was primarily
due to declines in sales volume as described above. The decrease for the towing
services segment was the result of the Company&#8217;s continued cost reduction
efforts.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
interest expense of discontinued operations decreased $8.3 million from $14.6
million for the year ended April 31, 2001 to $6.3 million for the eight months
ended December 31, 2001. During the eight months ended December 31, 2001, the
Company experienced overall lower interest expense as a result of refinancing
its line of credit at more favorable rates in July 2001, a decrease in debt
levels, and four months less interest expense in the transition period.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
effective rate for the provision for income taxes for discontinued operations
was 2.4% for the eight months ended December 31, 2001 compared to 31.4% for the
year ended April 30, 2001.</font></p><p>
<b><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Year
Ended April 30, 2001 Compared to Year Ended April 30, 2000</font></b><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><i><font size="2">Continuing
Operations</font></i><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
sales for the year ended April 30, 2001 decreased 18.7% to $212.9 million from
$261.9 million for the comparable period in 2000.  Net sales were adversely
impacted as demand for the Company&#8217;s towing and recovery equipment
continued to be negatively impacted by the cost pressures facing its customers
during the year ended April 30, 2001.</font></p>
<p align="center"><font face="Times New Roman" size="2">D-6</font></p>
<font face="Times New Roman" size="2"><hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Costs
of operations for the Company as a percentage of net sales increased to 85.3%
for the year ended April 30, 2001 compared to 84.2% for the comparable prior
year.  The increase as a percentage of net sales was primarily the result of
declines in sales volume as discussed above.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling,
general, and administrative costs decreased 9.3% to $20.7 million from $22.8
million for the comparable period of fiscal 2000.  As a percentage of sales
these costs increased slightly from 8.7% in fiscal 2000 to 9.7% in fiscal
2001.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company periodically reviews the carrying amount of the long-lived assets and
goodwill in both its towing services and towing and recovery equipment
businesses to determine if those assets may be recoverable based upon the future
operating cash flows expected to be generated by those assets.  As a result of
such review during the fourth quarter of fiscal 2000, the Company concluded that
projected cash flows from certain Company towing services markets and certain
equipment distributors were not fully recoverable.  Accordingly, the Company
recorded non-cash impairment charges of $69.1 million and $7.7 million in its
towing services and towing and recovery equipment segments, respectively.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
interest expense decreased $3.9 million to $2.1 from $6.0 million for fiscal
2000 primarily due to higher interest rates on the Company&#8217;s line of
credit facility.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
effective rate for the provision for income taxes for continuing operations was
29.7% for the year ended April 30, 2001 compared to 67.0% for the year ended
April 30, 2000.  The difference is due primarily to the impact of lower earnings
and impairment charges related to non-deductible goodwill.</font></p><p>
<i><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discontinued
Operations</font></i><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
sales of discontinued operations decreased $37.6 million from $320.2 million for
the year ended April 30, 2000 to $ 282.6 million for the year ended April 30,
2001. Net sales of the distribution group were $100.3 million for the year ended
April 30, 2001 compared to $112.3 million for the year ended April 30, 2000. Net
sales of the towing services segment were $182.3 million for the year ended
April 30, 2001 compared to $207.9 million for the year ended April 30, 2000. Net
sales of the distribution group were negatively impacted by cost pressures
facing its customers. Revenues in the towing services segment decreased
primarily due to the disposition of eleven underperforming markets during 2001,
as well as declines in revenues of certain other underperforming markets.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost
of sales as a percentage of net sales for the distribution group was 91.3% for
the year ended April 30, 2001 compared to 91.1% for the year ended April 30,
2000. Cost of sales of the towing services increased 1.8% from 80.4% for the
year ended April 30, 2000 to 82.2% for the year ended April 30, 2001. The
increase as a percentage of sales was due to declines in revenue explained
above, coupled with increased labor and fuel costs. The increase was partially
offset by a reduction in insurance costs due to favorable claims and a return on
premium.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Selling,
general, and administrative expenses as a percentage of sales was 8.4% for the
distribution group and 19.9% for the towing services segment for the year ended
April 30, 2001 compared to 9.3% and 26.2%, respectively for the ended April 30,
2000. The decrease as a percentage of sales was primarily the result of
company-wide cost reduction efforts implemented in late fiscal 2000 and the
first quarter of 2001.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the second quarter of 2000, the Company recorded special charges of $6.0 million
for the further rationalization of its towing services operations. These charges
included the cost of early termination of certain employment contracts and
facility leases, as well as losses on the disposal of certain excess equipment
and other property-related charges.</font></p>
<p align="center"><font face="Times New Roman" size="2">D-7</font></p>
<font face="Times New Roman" size="2"><hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net
interest expense of discontinued operations increased $6.6 million from $8.0
million for the year ended April 31, 2000 to $14.6 million for the eight months
ended December 31, 2001 primarily due to higher interest rates on the
Company&#8217;s line of credit. </font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
effective rate for the provision for income taxes for discontinued operations
was 31.4% for the year ended April 30, 2001 compared to 20.6% for the year ended
April 30, 2000. </font></p><p>
<b><font size="2">LIQUIDITY AND CAPITAL RESOURCES</font></b><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#8217;s primary capital requirements are for working capital, debt
service, and capital expenditures.  Since 1996, the Company has financed its
operations and growth from internally generated funds and debt financing.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash
provided by operating activities was $19.6 million for the year ended December
31, 2002 compared to $9.8 million for the eight months ended December 31, 2001,
$21.9 million for the year ended April 30, 2001 and $8.5 million for the year
ended April 30, 2000.  Cash provided by operations for the year ended December
31, 2002 included approximately $9.0 million of tax refunds received during the
year.  The cash provided by operating activities also reflects decreases in
inventory levels and accrued liabilities, partially offset by increases in
accounts receivable.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash
provided by investing activities was $18.3 million for the year ended December
31, 2002 compared to $0.2 million used in investing activities for the eight
months ended December 31, 2001, $8.3 million provided by investing activities
for the year ended April 30, 2001 and $7.6 million used in investing activities
for the year ended April 30, 2000.  The cash provided by investing activities
for the year ended December 31, 2002 was primarily the result of proceeds from
the sale of towing services operations.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash
used in financing activities was $44.4 million for the year ended December 31,
2002 compared to $6.3 million for the eight months ended December 31, 2001,
$29.1 million for the year ended April 30, 2001 and $4.0 million for the year
ended April 30, 2000.  The cash was used  almost entirely to reduce borrowings
under the Company&#8217;s credit facilities and other outstanding long-term debt
and capital lease obligations.</font></p><p>
<b><font size="2">2001 Credit Facility</font></b><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In July 2001, the Company entered into a&nbsp;
four year senior secured credit facility (the &#147;Senior Credit Facility&#148;) with a
syndicate of lenders to replace the existing credit facility.&nbsp;&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 (the &#147;Junior Credit Facility&#148;).  The Senior Credit Facility originally consisted of an aggregate
$102.0 million revolving credit facility and an $8.0 million term loan.  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).  <b><i>[Borrowing availability under the revolving Senior Credit Facility
is based on a percentage of eligible inventory and accounts (determined on
eligibility criteria set forth in the credit facility) and subject to a maximum
borrowing limitation.]</i></b>&nbsp;  Borrowings under the term loan are
collateralized by the Company&#8217;s property, plant, and equipment.  The
Company is required to make monthly amortization payments on the term loan of
$167,000.  The Senior Credit Facility bore interest at the option of the Company
at either the rate of LIBOR plus 2.75% or prime rate (as defined) plus 0.75% on
the revolving portion and LIBOR plus 3.00% or prime rate (as defined) plus 1.00%
on the term portion.</font></p>
<p align="center"><font face="Times New Roman" size="2">D-8</font></p>
<font face="Times New Roman" size="2"><hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 related to maintaining minimum excess availability at all
times and minimum quarterly levels of earnings before income taxes, depreciation
and amortization (as defined) and a minimum quarterly fixed charge coverage
ratio (as defined).  In addition, the 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>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
$14.0 million Junior Credit Facility is by its terms expressly subordinated only
to the Senior Credit Facility.  The Junior Credit Facility, under which $14.4
million was outstanding at December 31, 2002, matures on July 23, 2003 and bears
interest at 6.0% over the prime rate. There can be no
assurance that the Company will be able to repay or refinance the outstanding
principal and interest under the Junior Credit Facility on the maturity date
thereof.  If the Company fails to repay all outstanding principal, interest and
any other amounts due and owing under the Junior Credit Facility on the maturity
date, such failure will constitute an event of default under the Junior Credit
Facility and will also trigger an event of default under the Senior Credit
Facility cross-default provisions.  A total of $42.4 million (continuing and
discontinued operations) was outstanding under the Senior Credit Facility at
December 31, 2002.  In such case, the junior lender agent would be prevented
from taking any enforcement action against the Company <b><i>[under the
Intercreditor Agreement]</i></b>, its subsidiaries or
their respective assets in respect of such event of default until the earlier
of: (i) the date which is 120 days (subject to extension to 270 days by notice
from senior lender agent to junior lender agent) after the date upon which the
junior lender agent gives notice of enforcement to the senior lender agent
pursuant to the terms of the Intercreditor Agreement; (ii) the acceleration of
the maturity of the obligations of the Company under the Senior Credit Facility
by the senior lender agent, and (ii) the commencement of any bankruptcy,
insolvency or similar proceeding against the Company or certain of its
subsidiaries.  The resulting event of default under the Senior Credit Facility
if the Company does not repay all of the obligations under the Junior Credit
Facility could result in the acceleration of the amounts due under the Senior
Credit Facility as well as other remedies if not waived by the senior lenders.
There is no assurance that the Company will be able to obtain such a waiver from
the senior lenders or a waiver from the junior lenders of any event of default
that would occur as a result of the failure by the Company to repay or refinance
the outstanding principal and interest under the Junior Credit Facility on the
maturity date. </font> <p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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.  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.  The Junior Credit
Facility also contains provisions for the issuance of warrants for up to 0.5% of
the outstanding shares of the Company&#8217;s common stock in July, 2002 and up
to an additional 1.5% on July 23, 2003 with an exercise price equal to the then
fair market value of the Company&#8217;s common stock.  The number of warrants
which may be issued would be reduced pro rata as the balance of the Junior
Credit Facility is reduced.  On July 23, 2002, the Company issued 47,417
warrants for the purchase of common stock in conjunction with these related
provisions.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Junior Credit Facility contains requirements for the maintenance of certain
financial covenants and imposes restrictions on capital expenditures, incurrence
of indebtedness, mergers and acquisitions, distributions and transfers and sales
of assets. </font>
<p align="center"><font face="Times New Roman" size="2">D-9</font></p>
<font face="Times New Roman" size="2"><hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Outstanding
borrowings under the Senior and Junior Credit Facilities as of March 31, 2003
and as of December 31, 2001 were as follows (in thousands):</font></p>
<div align="center">
  <table border="0" cellspacing="0" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111" height="136" width="477">
<tr valign="top">
<td width="225" colspan="1" rowspan="1" height="15" >
<font size="2">
&nbsp;</font></td>
<td width="98" colspan="2" height="15" align="center" style="border-bottom-style: solid; border-bottom-width: 1" >
<p>
<font size="2">March 31, 2003</font></p>
</td>
<td width="44" height="15" align="center" >
<font size="2">
&nbsp;</font></td>
<td width="110" colspan="2" height="15" align="center" style="border-bottom-style: solid; border-bottom-width: 1" >
<p>
<font size="2">December 31, 2001</font></p>
</td>
</tr>
<tr valign="top">
<td width="225" colspan="1" rowspan="1" height="15" >
<p>
<font size="2">Senior Credit Facility</font></p>
</td>
<td width="98" colspan="2" rowspan="1" height="15" style="border-top-style: solid; border-top-width: 1" >
<font size="2">
&nbsp;</font></td>
<td width="44" colspan="1" rowspan="1" height="15" >
<font size="2">
&nbsp;</font></td>
<td width="110" colspan="2" rowspan="1" height="15" style="border-top-style: solid; border-top-width: 1" >
<font size="2">
&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="225" colspan="1" rowspan="1" height="15" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Manufacturing</font></p>
</td>
<td width="32" rowspan="1" height="15" >
<p>
<font size="2">$</font></p>
</td>
<td width="66" height="15" align="right" >
<font size="2">31,897&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
<td width="44" colspan="1" rowspan="1" height="15" >
<font size="2">
&nbsp;</font></td>
<td width="41" rowspan="1" height="15" >
<p>
<font size="2">$ </font></p>
</td>
<td width="69" height="15" align="right" >
<font size="2">40,219&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="225" colspan="1" rowspan="1" height="1" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Road One</font></p>
</td>
<td width="32" rowspan="1" height="1" >
<p>
<font size="2">$</font></p>
</td>
<td width="66" height="1" align="right" >
<font size="2">&nbsp;7,617&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
<td width="44" colspan="1" rowspan="1" height="1" >
<font size="2">
&nbsp;</font></td>
<td width="41" rowspan="1" height="1" >
<p>
<font size="2">$ </font></p>
</td>
<td width="69" height="1" align="right" >
<font size="2">38,079&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="225" colspan="1" rowspan="1" height="15" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Term Loan</font></p>
</td>
<td width="32" rowspan="1" height="15" style="border-bottom-style: solid; border-bottom-width: 1" >
<p>
<font size="2">$</font></p>
</td>
<td width="66" height="15" align="right" style="border-bottom-style: solid; border-bottom-width: 1" >
<font size="2">&nbsp;2,520&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
<td width="44" colspan="1" rowspan="1" height="15" >
<font size="2">
&nbsp;</font></td>
<td width="41" rowspan="1" height="15" style="border-bottom-style: solid; border-bottom-width: 1" >
<p>
<font size="2">$ </font></p>
</td>
<td width="69" height="15" align="right" style="border-bottom-style: solid; border-bottom-width: 1" >
<font size="2">7,165&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="225" colspan="1" rowspan="1" height="15" >
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</font></p>
</td>
<td width="32" rowspan="1" height="15" style="border-top-style: solid; border-top-width: 1" >
<p>
<font size="2">$</font></p>
</td>
<td width="66" height="15" align="right" style="border-top-style: solid; border-top-width: 1" >
<font size="2">42,034&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
<td width="44" colspan="1" rowspan="1" height="15" >
<font size="2">
&nbsp;</font></td>
<td width="41" rowspan="1" height="15" style="border-top-style: solid; border-top-width: 1" >
<p>
<font size="2">$ </font></p>
</td>
<td width="69" height="15" align="right" style="border-top-style: solid; border-top-width: 1" >
<font size="2">85,463&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="225" colspan="1" rowspan="1" height="15" >
<font size="2">
&nbsp;</font></td>
<td width="98" colspan="2" rowspan="1" height="15" >
<font size="2">
&nbsp;</font></td>
<td width="44" colspan="1" rowspan="1" height="15" >
<font size="2">
&nbsp;</font></td>
<td width="41" rowspan="1" height="15" >
<font size="2">
&nbsp;</font></td>
<td width="69" height="15" align="right" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="225" colspan="1" rowspan="1" height="15" >
<p>
<font size="2">Junior Credit Facility</font></p>
</td>
<td width="32" rowspan="1" height="15" style="border-bottom-style: solid; border-bottom-width: 1" >
<p>
<font size="2">$</font></p>
</td>
<td width="66" height="15" align="right" style="border-bottom-style: solid; border-bottom-width: 1" >
<font size="2">13,707&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
<td width="44" colspan="1" rowspan="1" height="15" >
<font size="2">
&nbsp;</font></td>
<td width="41" rowspan="1" height="15" style="border-bottom-style: solid; border-bottom-width: 1" >
<p>
<font size="2">$ </font></p>
</td>
<td width="69" height="15" align="right" style="border-bottom-style: solid; border-bottom-width: 1" >
<font size="2">14,000&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="225" colspan="1" rowspan="1" height="15" >
<font size="2">
&nbsp;</font></td>
<td width="98" colspan="2" rowspan="1" height="15" >
<font size="2">
&nbsp;</font></td>
<td width="44" colspan="1" rowspan="1" height="15" >
<font size="2">
&nbsp;</font></td>
<td width="41" rowspan="1" height="15" style="border-top-style: solid; border-top-width: 1" >
<font size="2">
&nbsp;</font></td>
<td width="69" height="15" align="right" style="border-top-style: solid; border-top-width: 1" >
<font size="2">&nbsp;</font></td>
</tr>
<tr valign="top">
<td width="225" colspan="1" rowspan="1" height="15" >
<p>
<font size="2">Total Outstanding Borrowings</font></p>
</td>
<td width="32" rowspan="1" height="15" style="border-bottom-style: double" >
<p>
<font size="2">$</font></p>
</td>
<td width="66" height="15" align="right" style="border-bottom-style: double" >
<font size="2">55,741&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
<td width="44" colspan="1" rowspan="1" height="15" >
<font size="2">
&nbsp;</font></td>
<td width="41" rowspan="1" height="15" style="border-bottom-style: double" >
<p>
<font size="2">$ </font></p>
</td>
<td width="69" height="15" align="right" style="border-bottom-style: double" >
<font size="2">99,463&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
</tr>
</table></div>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;These
substantial reductions in the Company&#8217;s overall indebtedness were due to
improved operating cost flow resulting from&nbsp;cost reductions and
expense controls.&nbsp; Dispositions of RoadOne
assets and operations improved liquidity and reduced expenses, and tax refunds of approximately $4.2 million during
the quarter ended June 30, 2002 and  $4.6 million during the quarter ended September 30, 2002,  were
used to  reduce debt.</font></p><p>
<i><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2002
Amendments to the Credit Facility</font></i><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
February 28, 2002 the Company entered into a Forbearance Agreement and First
Amendment to the Senior Credit Facility with the lenders under the Senior Credit
Facility, as amended by that certain Amendment to Forbearance Agreement dated as
of March 18, 2002 and that certain Second Amendment to the Forbearance Agreement
dated as of March 29, 2002 (as so amended, the &#8220;Forbearance
Agreement&#8221;).  As a result of a revised asset appraisal conducted by the
senior lenders, <b><i>[the senior lenders reduced the Company's line of credit],</i></b> causing the Company to be over-advanced on its
line of credit which resulted in the occurrence of an event of default under the
Senior Credit Facility and a corresponding event of default under the Junior
Credit Facility.  The Forbearance Agreement and subsequent amendments waived the
Company&#8217;s overadvance under the Senior Credit Facility and amended the
terms of the credit agreement to, among other things, (i) permanently reduce the
commitment levels to $42.0 million for the towing and recovery equipment segment
and $36.0 million for the RoadOne segment portion of the revolving credit
facility and $6,611,000 for the term loan facility, (ii) eliminate the
Company&#8217;s ability to borrow funds at a LIBOR rate of interest, and (iii)
increase the interest rate to a floating rate of interest equal to the prime
rate plus 2.75%.</p>
	</font>	<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
April 15, 2002 the Company entered into the Second Amendment to the Senior
Credit Facility, pursuant to which, among other things: (i) the senior lenders
waived the overadvance event of default and other events of default, (ii)
interest on advances will be charged at the prime rate (as defined) plus 2.75%
on the revolving portion and the term portion, subject to substantial upward
adjustments in the interest rate on and after certain specified dates based on
the amounts outstanding under the revolving loan commitment relating to RoadOne
(escalating at generally quarterly intervals from prime plus 4.50% as of October
1, 2002 to prime plus 14.00% as of April 1, 2005) and (iii) the revolving loan
commitment amount relating to RoadOne is subject to mandatory reductions over
time commencing August 12, 2002, which reductions will require a mandatory
repayment of portions of outstanding loans at specified dates and the failure to
timely make such repayments shall result in an event of default under the bank
credit agreements.  The RoadOne revolving commitment amount, which was set at
$36.0 million through the April 15, 2002 amendment was scheduled to be reduced
as follows:  August 12, 2002 - to $34.0 million; October 2, 2002 - to $30.0
million; March 31, 2003 - to $27.0 million; thereafter - quarterly reductions of
$3.0 million through June 30, 2005.  At the same time, the Company also amended
the Junior Credit Facility, pursuant to which, among other things, (i) the
junior lenders waived the events of default, and (ii) extended the time for
payment of certain scheduled amortization payments.  On April 15, 2002, the
junior lender agent, the senior lender agent and the Company entered into an
Amended and Restated  Intercreditor and Subordination Agreement (the
&#8220;Intercreditor Agreement&#8221;), pursuant to which, among other things,
subject to certain terms and conditions, the junior lenders have agreed to defer
the required payment of amortization payments under the Junior Credit Facility
until November 20, 2002, April 5, 2003 and May 20, 2003. </font>
<p align="center"><font face="Times New Roman" size="2">D-10</font></p>
<font face="Times New Roman" size="2">
<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
September 13, 2002, the Company entered into the Third Amendment to Credit
Agreement in connection with its Senior Credit Facility.  Pursuant to the Third
Amendment, the amount of the mandatory periodic reductions in the RoadOne
revolving loan commitment amount, as established in the April 15, 2002 Second
Amendment to Senior Credit Agreement, were increased by amounts calculated based
on updated asset appraisals completed in September 2002.  Consequently, the
Company will need to repay outstanding loans and permanently reduce the RoadOne
loan commitment under its senior credit facility over the life of the loan and
prior to the maturity date.  Pursuant to the terms of the Second and Third
Amendments, the failure by the Company to repay outstanding loans and to reduce
the RoadOne revolving loan commitment by the amounts and the times required
pursuant to these amendments will result in increased interest rates on the
senior loans and/or the occurrence of an event of default under the senior
credit agreement.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, pursuant to the Third Amendment, the amount of availability that can
be generated for used inventory considered as eligible inventory for collateral
purposes was limited to $4.3 million (subject to downward adjustments upon
certain sales of assets and stock by the Company and certain of its
subsidiaries) through February 28, 2003 and reduced to $0 thereafter.
The Sixth Amendment<font color="#0000ff"><u>
</u></font>(discussed below under 2003 Amendments) lowered the $4.3 million
limit and eliminated the further requirement for reduction to
$0 after February 28, 2003.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
November 14, 2002, the Company entered into the Fourth Amendment to the Senior
Credit Facility, which granted waivers from the senior lenders of violations of
certain financial covenants for the quarter ended September 2002.  There were no
violations under the Junior Credit facility.  The Amendment also reduced the
level of certain financial covenants for future periods, basing them strictly on
the results of the towing and recovery equipment segment for those periods.  In
addition, the amendment revised the RoadOne revolving commitment amount based on
the plan to sell all remaining towing service operations, reducing the
commitment amount to $15.0 million at November 30, 2002, $12.0 million at
December 31, 2002, $9.0 million at January 31, 2003, $6.0 million at February
28, 2003 and reducing to zero as of March 31, 2003.</font></p><p>
<i><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2003
Amendments to Credit </font> </i><font size="2">Facility</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
February 28, 2003, the Company entered into the Fifth Amendment to the Senior
Credit Facility.  Pursuant to the Fifth Amendment, the date upon which the
amount of certain used inventory taken in trade for collateral purposes is
reduced to $-0- was extended from February 28, 2003 to March 31, 2003.  In
addition, the Fifth Amendment revised the RoadOne revolving commitment, reducing
the amount to $9.0 million at February 28, 2003 and $-0- as of March 31,
2003.</font></p>
<p align="center"><font face="Times New Roman" size="2">D-11</font></p>
<font face="Times New Roman" size="2"><hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
April 1, 2003, the Company entered into the Sixth Amendment to the Senior
Credit Facility.  The Sixth Amendment, among other things,
revised the RoadOne revolving
commitment, extending by one year the time for the reduction thereof to $-0-
from March 31, 2003 to March 31, 2004.  The amount of
availability that can be generated for used inventory
considered as eligible inventory for collateral purposes was reduced to $2.7
million with no further required reductions.  The Sixth Amendment also extended
the time for required delivery of the Company&#8217;s
annual financial reports for fiscal
year ended December 31, 2002 and certain related items from March 31, 2003 to April 30,
2003.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Meeting
the new repayment schedule for the RoadOne revolving commitments as described
above under Amendments to the Credit Facilities, will require that the Company
sell its towing services businesses according to its contemplated schedule on
acceptable terms.  While the Company believes its timetable for sales is
achievable there can be no assurance that the schedule can be met.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b><i>[Because of the amount of obligations
outstanding under the Company's Credit Facilities and the connection of the
interest rates under each facility (including the default rates) to the prime
rate, an increase in the prime rate could have a significant effect on the
Company's ability to satisfy its obligations under the Credit Facilities and
increase its interest expense significantly.&nbsp; Therefore, the Liquidity of
the Company and its access to capital resources could be further affected by
increasing interest rates.]</i></b></font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition to the borrowings under the Senior and Junior Credit Facilities
described above, the Company had approximately $5.2 million of mortgage notes
payable, equipment notes payable and other long-term obligations at December 31,
2002.  The Company also had approximately $18.2 million in noncancellable
operating lease obligations, approximately, $17.6 million of which relates to
truck and building leases of discontinued operations.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company is currently in default under both the Senior and Junior Credit Facility
as a result of the &#8220;going concern&#8221; explanatory paragraph included in
the auditors&#8217; report as well as the failure to file this 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.  The Company is currently not pursuing a waiver of the default or an
amendment to the Credit Facilities to cure the default.  The Company has had
informal discussions with its creditors indicating that the creditors will not
take action against the Company as a result of the default.  However, there can
be no assurance that the creditors will not pursue action in the future as a
result of this default or any other default under the Credit Facilities.</font></p><p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Failure
to achieve the Company&#8217;s revenue and income projections, or to sell towing
services operations for the prices and on the timetable contemplated, could
result in failure to comply with the amended debt service requirements.  Such
non-compliance would result in an event of default, which if not waived by the
lending groups, would result in the acceleration of the amounts due under the
Senior Credit Facility as well as other remedies.  Under these circumstances the
Company could be required to find alternative funding sources, such as sale of
assets or other financing sources.  If the Company were unable to refinance the
Senior Credit Facility on acceptable terms or find an alternative source of
repayment for the Senior Credit Facility, the Company&#8217;s business and
financial condition would be materially and adversely affected.  There is no
assurance that the Company would be able to obtain any such refinancing or that
it would be able to sell assets on terms that are accepted to the Company or at
all.  If the Company is not successful in its efforts to refinance or extend the
maturity date of the Junior Credit Facility, the Company would likely be
required to seek bankruptcy court or other protection from its creditors.</font></p>
<p align="center"><font face="Times New Roman" size="2">D-12</font></p>
<font face="Times New Roman" size="2">
<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>
<p>
<b><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial
Instruments</font></b></p>
<p><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SFAS No. 133, &#8220;Accounting for Derivative Instruments and Hedging Activities&#8221;, as amended, is effective for fiscal years beginning after June 15, 2000.  SFAS No. 133 establishes accounting and reporting standards requiring that every derivative instrument (including certain derivative instruments embedded in other contracts) be recorded in the balance sheet as either an asset or liability measured at its fair value.  SFAS
No. 133 requires that changes in the derivative&#146;s fair value be recognized
currently in earnings unless specific hedge accounting criteria are met. Special
accounting for qualifying hedges allows a derivative&#146;s gains and losses to
offset related results on the hedged item in the income statement, and requires
that a company must formally document, designate, and assess the effectiveness
of transactions that receive hedge accounting.</font></p>
<p><font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In October 2001, the Company obtained interest rate swaps
as required by terms in its Senior Credit Facility to hedge exposure to market
fluctuations. The interest rate swaps cover $40.0 million in notional amounts of
variable rate debt and with fixed rates ranging from 2.55% to 3.920%. The swaps
expire annually from October 2002 to October 2004. The hedges were deemed to be
fully effective resulting in a pretax loss of $12,000 recorded in Other
Comprehensive Loss at December 31, 2001. Upon expiration of these hedges, the
amount recorded in Other Comprehensive Loss will be reclassified into earnings
as interest. Subsequent to year end, the borrowing base was converted from LIBOR
to prime, which rendered the swap ineffective as a hedge. Accordingly,
concurrent with the conversion the Company prematurely terminated the swap in
February 2002 at a cost of $341,000. The resulting loss will be recorded in
Other Comprehensive Loss in February 2002 and reclassified to earnings as
interest expense over the term of the Senior Credit Facility.
</font></p>
<p>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Junior Credit Facility contains provisions for the issuance of warrants of up to
0.5% of the outstanding shares of the Company&#8217;s common stock on July 2002
and up to an additional 1.5% in July 2003.  The warrants were valued as of July
2001 based on the relative fair value using the Black Scholes model with the
following assumptions:  risk-free rate of 4.9% estimated life of 7 years, 72%
volatility and no dividend yield.  Accordingly, the Company has recorded a
liability and makes periodic mark to market adjustments, which are reflected in
the accompanying consolidated statement of operations in accordance with EITF
Issue 00-19, &#8220;Accounting for Derivative Financial Instruments Indexed to,
and Potentially Settled in, a Company&#8217;s Own Stock.  At December 31, 2002,
the related liability was $362,638 and is included in accrued liabilities in the
accompanying consolidated financial statements.</font></p>
<p>
<font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>&nbsp;&nbsp;&nbsp;Recent Accounting Pronouncements&nbsp;</b></font></p>
<p>
<font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In April 2002, the FASB issued SFAS No. 145, &#8220;Rescission of SFAS Nos. 4, 44, and 64, Amendment of SFAS No. 13, and Technical Corrections as of April 2002.&#8221;  This Statement rescinds SFAS No. 4, &#8220;Reporting Gains and Losses from Extinguishment of Debt&#8221;, and an amendment of that Statement, SFAS No. 64, &#8220;Extinguishments of Debt Made to Satisfy Sinking-Fund Requirements&#8221;.  This Statement also rescinds SFAS No. 44, &#8220;Accounting for Intangible Assets of Motor Carriers&#8221;.  This Statement amends SFAS No. 13, &#8220;Accounting for Leases&#8221;, to eliminate an inconsistency between the required accounting for sale-leaseback transactions and the required accounting for certain lease modifications for sale-leaseback transaction and the required accounting for certain lease modifications that have economic effects that are similar to sale-leaseback transactions.  SFAS No. 145 will be effective
 for fiscal 2003, which begins January 1, 2002.  Management does not expect the adoption of this statement to have a material impact on the Company&#8217;s results of operations of financial position.&nbsp;</font></p>
<p>
<font size="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FASB has issued SFAS No. 146, &#8220;Accounting for Exit or Disposal Activities&#8221;. SFAS No. 146 addresses the recognition, measurement, and reporting of costs that are associated with exit and disposal activities, including costs related to terminating a contract that is not a capital lease and termination benefits that employees who are involuntarily terminated receive under the terms of a one-time benefit arrangement that is not an ongoing benefit arrangement or an individual deferred-compensation contract. SFAS No. 146 supersedes Emerging Issues Task Force Issue No. 94-3, &#8220;Liability Recognition for Certain Employee Termination Benefits and Other Costs to Exit an Activity (including Certain Costs Incurred in a Restructuring)&#8221; and requires liabilities associated with exit and disposal activities to be expensed as incurred. SFAS No. 146 will be effective for exit or disposal activities of the Company that are
 initiated after December 31, 2002.
</font>	</p>
<font face="Times New Roman" size="2">
<p align="center">D-13</p>
<hr size="1" color="#000080" STYLE="page-break-after: always">
</font>

<p align="right">
<b><font size="2">[The following discussion is a modified version of
Management's<br>
Discussion and Analysis that appeared in the
Company's Quarterly<br>
Report on Form 10-Q
for the quarter ended September 30, 2003.<br>
All modifications appear in italicized, bolded and bracketed text]</font></b><p align="right">
&nbsp;<p align="center"><b><font size="2" face="Times New Roman">Management's Discussion and
Analysis of Financial Condition<br />
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and Results of
Operations</font></b></p>

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

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

<p><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 without refinancing such credit facilities.</font></p>

<p><i><font size="2" face="Times New Roman">New York Stock Exchange Listing Standards</font></i></p>

<p><font size="2" face="Times New Roman">The Company received notification from the New York Stock Exchange (&ldquo;NYSE&rdquo;) on
June 26, 2003 that, based on market information and information in the Company&rsquo;s recent public filings, it is not in
compliance with the NYSE&rsquo;s continued listing standards.&nbsp; The NYSE requires shareholders&rsquo; equity of not less than
$50.0 million and a 30-day average market capitalization of $50.0 million.&nbsp; The Company&rsquo;s shareholders&rsquo; equity was
$40.7 million as of June 30, 2003 and was $33.4 as of September 30, 2003.&nbsp; As of October 31, 2003, the Company had a 30-day
average market capitalization of $44.1 million.</font></p>

<p><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; In September 2003, the Company was notified that the NYSE accepted its
plan to regain compliance with the NYSE's continued listing standards related to shareholders' equity and market capitalization
within an eighteen month timeframe.&nbsp; During this timeframe, the Company will be subject to quarterly monitoring for compliance
by the NYSE.</font></p>

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

<p><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><b><i><font size="2" face="Times New Roman">[Critical Accounting Policies</font></i></b></p>

<p><i><font size="2" face="Times New Roman"><b>The consolidated financial statements are prepared in accordance with accounting
principles generally accepted in the United States of America, which require the Company to make estimates.&nbsp; Certain
accounting policies are deemed &ldquo;critical,&rdquo; as they require management&rsquo;s highest degree of judgment, estimates and
assumptions.&nbsp; A discussion of critical accounting policies, the judgments and uncertainties affecting their application and
the likelihood that materially different amounts would be reported under different conditions or using different assumptions
follows:</b></font></i></p>

<p>&nbsp;</p>

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

<p><i><font size="2" face="Times New Roman"><b>Accounts receivable.&nbsp; The Company extends credit to customers in the normal
course of business.&nbsp; Collections from customers are continuously monitored and an allowance for doubtful accounts is
maintained based on historical experience and any specific customer collection issues.&nbsp; While such bad debt expenses have
historically been within expectations and the allowance established, there can be no assurance that the Company will continue to
experience the same credit loss rates as in the past.&nbsp;</b></font></i></p>

<p><i><font size="2" face="Times New Roman"><b>Valuation of long-lived assets and goodwill.&nbsp; Long-lived assets and goodwill
are reviewed for impairment whenever events or circumstances indicate that the carrying amount of these assets may not be fully
recoverable.&nbsp; When a determination has been made that the carrying amount of long-lived assets and goodwill may not be fully
recovered, the amount of impairment is measured by comparing an asset&rsquo;s estimated fair value to its carrying value.&nbsp; The
determination of fair value is based on projected future cash flows discounted at a rate determined by management, or if available
independent appraisals or sales price negotiations.&nbsp; The estimation of fair value includes significant judgment regarding
assumptions of revenue, operating costs, interest rates, property and equipment additions; and industry competition and general
economic and business conditions among other factors.&nbsp; Management believes that these estimates are reasonable; however,
changes in any of these factors could affect these evaluations.</b></font></i></p>

<p><i><font size="2" face="Times New Roman"><b>Upon adoption of Financial Accounting Standard No. 142, Goodwill and Other
Intangible Assets on January 1, 2002, the Company ceased to amortize goodwill.&nbsp; In lieu of amortization, the Company is
required to perform an initial impairment review of goodwill in 2002 and an annual impairment review thereafter.&nbsp; For further
detail of the Company&rsquo;s impairment review and related write downs, See Note 7 to the Consolidated Financial
Statements.</b></font></i></p>

<p><i><font size="2" face="Times New Roman"><b>Warranty Reserves. The Company estimates expense for product warranty claims at
the time products are sold.&nbsp; These estimates are established using historical information about the nature, frequency, and
average cost of warranty claims.&nbsp; Management reviews trends of warranty claims and takes actions to improve product quality
and minimize warranty claims.&nbsp; Management believes the warranty reserve is adequate; however; actual claims incurred could
differ from the original estimates, requiring adjustments to the accrual.</b></font></i></p>

<p><i><font size="2" face="Times New Roman"><b>Income taxes.&nbsp; The Company recognizes deferred tax assets and liabilities
based on differences between the financial statement carrying amounts and the tax bases of assets and liabilities.&nbsp; The
Company considers the need to record a valuation allowance to reduce deferred tax assets to the amount that is more likely than not
to be realized.&nbsp; The Company considers tax loss carrybacks, reversal of deferred tax liabilities, tax planning and estimates
of future taxable income in assessing the need for a valuation allowance.&nbsp; The Company established a deferred tax valuation
allowance of $18.0 million as of December 31, 2002.&nbsp; The allowance reflects the Company&rsquo;s recognition that continuing
losses from operations and certain liquidity matters associated with the Company&rsquo;s credit facility indicate that it is more
likely than not that certain future tax benefits will not be realized through future taxable income.&nbsp; At December 31, 2002,
the Company recorded a full valuation allowance against its net deferred tax assets from continuing and discontinuing operations
totaling approximately $18.0 million.</b></font></i></p>

<p><i><font size="2" face="Times New Roman"><b>Revenues.&nbsp; Under the Company&rsquo;s accounting policies, sales are recorded
when equipment is shipped to independent distributors or other customers.&nbsp; While the Company manufactures only the bodies of
wreckers, which are installed on truck chassis manufactured by third parties, the Company sometimes purchases the truck chassis for
resale to its customers.&nbsp; Sales of Company-purchased truck chassis are included in net sales.&nbsp; Margins are substantially
lower on completed recovery vehicles containing Company-purchased chassis because the markup over the cost of the chassis is
nominal.&nbsp; Revenue from Company owned distributors is recorded at the time equipment is shipped to customers or services are
rendered.&nbsp; The towing services division recognizes revenue at the time services are performed.&nbsp;</b></font></i></p>

<p><i><font size="2" face="Times New Roman"><b>Seasonality.&nbsp; The Company&rsquo;s towing and recovery equipment segment has
experienced some seasonality in net sales due in part to decisions by purchasers of light duty wreckers to defer wrecker purchases
near the end of the chassis model year.&nbsp; The segment&rsquo;s net sales have historically been seasonally impacted due in part
to sales made at the largest towing and recovery equipment trade show which is held in the spring.&nbsp;</b></font></i></p>

<p><b><i><font size="2" face="Times New Roman">Change in Fiscal Year. On September 25, 2001, the Company announced that its Board
of Directors had approved a change in the Company&rsquo;s fiscal year, from April 30 to December 31, effective December 31,
2001.&nbsp; The change to a December 31 fiscal year will enable the Company to report results on a conventional calendar
basis.&nbsp; As a result of the change in fiscal year, the Company filed a transition report for the eight-month period ended
December 31, 2001, and the comparative data below compares the financial results for that period against the results for the fiscal
year ended April&nbsp;&nbsp;30, 2001.&nbsp; The periods are not directly comparable, in that they relate to periods of materially
different lengths, and also that the transition period does not include results from the three months ended April 30, a fiscal
quarter in which the Company&rsquo;s sales have traditionally been seasonally higher than other quarters.]</font></i></b></p>

<p>&nbsp;</p>

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

<p><b><i><font size="2" face="Times New Roman">Results of Operations--Three Months Ended September 30, 2003 Compared to Three
Months Ended September 30,&nbsp;2002</font></i></b></p>

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

<p><font size="2" face="Times New Roman">Net sales of towing and recovery equipment for the three months ended September 30, 2003,
increased 5.3% to $50.3 million from $47.8 million for the comparable period in 2002.&nbsp; Net sales increased primarily as a
result of improved demand at foreign manufacturing operations, offset by the domestic cost pressures facing its customers and
tightness of the current credit markets.&nbsp;</font></p>

<p><font size="2" face="Times New Roman">Costs of operations of towing and recovery equipment operations for the three months ended
September 30, 2003, increased 7.8% to $44.6 from $41.4 million for the comparable period in 2002, reflecting the aforementioned
increase in sales volume.&nbsp; Costs of operations increased as a percentage of net sales from 86.6% to 88.7% due to the fixed
cost impact of lower sales volume for domestic manufacturing.</font></p>

<p><font size="2" face="Times New Roman">Selling, general, and administrative expenses for the three months ended September 30,
2003, decreased to $4.3 million from $5.5 million for the three months ended September 30, 2002 reflecting the Company&rsquo;s
ongoing focus on operating cost control.</font></p>

<p><font size="2" face="Times New Roman">Net interest expense increased $2.7 million to $3.3 million for the three months ended
September&nbsp;30, 2003 from $0.6 million for the three months ended September 30, 2002 as a result of commitment fees charged in
conjunction with the maturity of the Junior Facility in July 2003.&nbsp; Also, during the three months ended September 30, 2003 the
Company wrote-off unamortized loan costs from the existing Senior Facility.</font></p>

<p><font size="2" face="Times New Roman">The provision for income taxes for continuing operations for the three months ended
September&nbsp;30, 2003 reflects the 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 three months ended September 30, 2002 reflects a similar
effective US federal and state rate, plus additional taxes on foreign income for the period.</font></p>

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

<p><font size="2" face="Times New Roman">Net sales from discontinued operations decreased to $18.8 million for the three months
ended September 30, 2003 from $47.8 million for the three months ended September 30, 2002.&nbsp; Net sales of the distribution
group were $18.2 million for the three months ended September 30, 2003 compared to $22.0 million for the three months ended
September 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 $0.6 million for the
three months ended September 30, 2003 compared to $25.8 million for the three months ended September 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><font size="2" face="Times New Roman">Cost of sales as a percentage of net sales for the distribution group was 92.3% for the
three months ended September 30, 2003 compared to 91.0% for the three months ended September 30, 2002.&nbsp; The increase is
primarily the result of decreases in sales volume as explained above. Cost of sales for the towing services segment was 71.7% for
the three months ended September 30, 2003 compared to 84.8% for the three months ended September 30, 2002.&nbsp; This decrease
resulted from ongoing cost controls in the remaining towing services operations.</font></p>

<p><font size="2" face="Times New Roman">Selling, general and administrative expenses as a percentage of sales was 7.6% for the
distribution group and 112.1% for the towing services segment for the three months ended September 30, 2003 compared to 8.1% and
17.8% respectively, for the three months ended September 30, 2002.&nbsp;The
decrease for the distribution group reflected the Company's ongoing focus on
operating cost control.&nbsp;&nbsp; Increases
in percentage of sales for the towing services segment were primarily
the result of lower administrative expenses spread over a smaller revenue base,
as the Company continues to sell towing services locations.</font></p>

<p><font size="2" face="Times New Roman">Net interest expense of discontinued operations decreased $0.5 million from $1.7 million
for the three months ended September 30, 2002 to $1.2 million for the three months ended September 30, 2003 as a result of
decreased borrowings under the Company&rsquo;s RoadOne revolving credit facility.&nbsp;</font></p>

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

<p><b><i><font size="2" face="Times New Roman">Results of Operations &#150; Nine
Months Ended September 30, 2003 Compared to Nine Months Ended September 30, 2002</font></i></b></p>

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

<p><font size="2" face="Times New Roman">Nets sales for towing and recovery equipment operations for the nine months ended
September&nbsp;30, 2003, decreased 5.0% to $142.2 million from $149.7 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 nine months
had a negative impact on sales.</font></p>

<p><font size="2" face="Times New Roman">Cost of operations for towing and recovery equipment operations for the nine months ended
September 30, 2003, decreased to $123.7 million from $128.8 million for the nine months ended September 30, 2002, reflecting the
aforementioned decrease in sales volume.&nbsp; Cost of operations increased slightly as a percentage of net sales from 86.0% to
86.9%.</font></p>

<p><font size="2" face="Times New Roman">Towing services revenues and cost of operations reflect the change in status during the
nine months ended September 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><font size="2" face="Times New Roman">Selling, general, and administrative expenses for the nine months ended September 30,
2003, decreased to $13.3 million from $15.6 million for the nine months ended September 30, 2002 reflecting the Company&rsquo;s
ongoing focus on operating cost control.</font></p>

<p><font size="2" face="Times New Roman">Net interest expenses increased $2.3 million to $4.8 million for the nine months ended
September&nbsp;30, 2003 from $2.5 million for the nine months ended September 30, 2002 as a result of commitment fees charged in
conjunction with the maturity of the Junior Facility in July 2003.&nbsp; Also, during the three months ended September 30, 2003 the
Company wrote-off unamortized loan costs from the existing Senior Facility.</font></p>

<p><font size="2" face="Times New Roman">The provision for income taxes for continuing operations for the nine months ended
September 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 nine months ended September 30, 2002 reflects similar effective
US federal and state tax rate, plus additional taxes on foreign income for the period.</font></p>

<h2><i><font size="2" face="Times New Roman">Discontinued Operations</font></i></h2>

<p><font size="2" face="Times New Roman">Net sales from discontinued operations decreased $87.4 million for the nine months ended
September 30, 2003, from $145.4 million for the nine months ended September 30, 2002, to $58.0 million for the nine months ended
September 30, 2003.&nbsp; Net sales of the distribution group were $49.9 million for the nine months ended September 30, 2003
compared to $65.6 million for the nine months ended September 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.&nbsp; Net sales for the towing and recovery services segment were $8.1 million for the nine months ended
September 30, 2003 compared to $79.8 million for the nine months ended September 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><font size="2" face="Times New Roman">Cost of sales as a percentage of net sales for the distribution group was 92.3% for the
nine months ended September 30, 2003 compared to 91.6% for the nine months ended September 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 73.3%
for the nine months ended September&nbsp;30, 2003 compared to 84.9% for the nine months ended September 30, 2002.&nbsp; This
decrease resulted from the ongoing cost controls in the remaining towing services operations.</font></p>

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

<p><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 53.0% for the towing services segment for the nine months ended September 30, 2003 compared to 8.4% and
19.7% respectively, for the nine months ended September 30, 2002.&nbsp; The
decrease for the distribution group reflected the Company's ongoing focus on
operating cost control.&nbsp; Increases
in percentage of sales for the towing services segment were primarily
the result of lower administrative expenses spread over a smaller revenue base,
as the Company continues to sell towing services locations.</font></p>

<p><font size="2" face="Times New Roman">Net interest expense of discontinued operations decreased $1.0 million from $4.6 million
for the nine months ended September&nbsp;30, 2002 to $3.6 million for the nine months ended September&nbsp;30, 2003 as a result of
decreased borrowings under the Company&rsquo;s RoadOne revolving credit facility.</font></p>

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

<p><font size="2" face="Times New Roman">Cash provided by operating activities was $8.6 million for the nine months ended September
30, 2003, compared to $18.0 million provided by operating activities for the comparable period of 2002.&nbsp; The cash provided by
operating activities for the nine months ended September 30, 2003 was primarily due to decreases in accounts receivable.</font></p>

<p><font size="2" face="Times New Roman">Cash provided by investing activities was $6.9 million for the nine months ended September
30, 2003, compared to $5.5 million provided by 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><font size="2" face="Times New Roman">Cash used in financing activities was $13.8 million for the nine months ended September
30, 2003 and $24.2 million for the comparable period in the prior year.&nbsp; The cash was used primarily to </font><font size=
"2">reduce borrowings under Company's credit facilities and other outstanding long-term debt and capital lease
obligations.</font></p>

<p><font size="2" face="Times New Roman">The Company&rsquo;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><b><i><font size="2" face="Times New Roman">[Contractual Obligations</font></i></b></p>

<p><b><i><font size="4" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></i></b>
<b><i><font size="2">The following is a summary of the Company&rsquo;s contractual obligations for its continuing operations as of
December 31, 2003.]&nbsp;</font></i></b></p>

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

<table border="0" cellspacing="0" cellpadding="0" width="698" style="border-collapse: collapse" bordercolor="#111111">

<tr>
<td valign="top" width="372" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman"><br />
 Contractual Obligations</font></p>
</td>
<td valign="top" width="16">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="47" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman"><br />
 Total</font></p>
</td>
<td valign="top" width="16">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="66" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">Less than<br />
 1 year</font></p>
</td>
<td valign="top" width="16">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="60" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman"><br />
 1-3 years</font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="58" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman"><br />
 3-5 years</font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="81" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">More than<br />
 5 years</font></p>
</td>
</tr>

<tr>
<td valign="top" width="372" style="border-top-style: solid; border-top-width: 1">
<p><font size="2" face="Times New Roman">Outstanding Borrowings Under<br>
Senior Credit Facility</font></p>
</td>
<td valign="top" width="16">
<font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font>
</td>
<td valign="top" width="47" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font face="Times New Roman" size="2">29,498</font></p>
</td>
<td valign="top" width="16">
<font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
<td valign="top" width="66" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font face="Times New Roman" size="2">29,498</font></p>
</td>
<td valign="top" width="16">
<font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
<td valign="top" width="60" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
<td valign="top" width="58" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></td>
<td valign="top" width="81" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
</tr>

<tr>
<td valign="top" width="372">
<p><font size="2" face="Times New Roman">Outstanding Borrowings Under<br>
Junior Credit Facility</font></p>
</td>
<td valign="top" width="16">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="47">
<p align="center"><font size="2" face="Times New Roman">15,261</font></p>
</td>
<td valign="top" width="16">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="66">
<p align="center"><font size="2" face="Times New Roman">15,261</font></p>
</td>
<td valign="top" width="16">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="60">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="58">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="81">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
</tr>

<tr>
<td valign="top" width="372">
<p><font size="2" face="Times New Roman">Mortgage Notes Payable</font></p>
</td>
<td valign="top" width="16">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="47">
<p align="center"><font size="2" face="Times New Roman">1,355</font></p>
</td>
<td valign="top" width="16">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="66">
<p align="center"><font face="Times New Roman" size="2">576</font></p>
</td>
<td valign="top" width="16">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="60">
<p align="center"><font size="2" face="Times New Roman">273</font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="58">
<p align="center"><font size="2" face="Times New Roman">215</font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="81">
<p align="center"><font face="Times New Roman" size="2">291</font></p>
</td>
</tr>

<tr>
<td valign="top" width="372">
<p><font size="2" face="Times New Roman">Equipment Notes Payable (Capital<br>
Lease Obligations)</font></p>
</td>
<td valign="top" width="16">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="47">
<p align="center"><font face="Times New Roman" size="2">494</font></p>
</td>
<td valign="top" width="16">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="66">
<p align="center"><font size="2" face="Times New Roman">326</font></p>
</td>
<td valign="top" width="16">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="60">
<p align="center"><font face="Times New Roman" size="2">164</font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="58">
<p align="center"><font face="Times New Roman" size="2">4</font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="81">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
</tr>

<tr>
<td valign="top" width="372">
<p><font size="2" face="Times New Roman">Other</font></p>
</td>
<td valign="top" width="16">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="47">
<p align="center"><font face="Times New Roman" size="2">2,081</font></p>
</td>
<td valign="top" width="16">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="66">
<p align="center"><font face="Times New Roman" size="2">1,068</font></p>
</td>
<td valign="top" width="16">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="60">
<p align="center"><font face="Times New Roman" size="2">1,013</font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="58">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="81">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
</tr>

<tr>
<td valign="top" width="372">
<p><font size="2" face="Times New Roman">Operating Lease Obligations</font></p>
</td>
<td valign="top" width="16">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="47" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font face="Times New Roman" size="2">10,190</font></p>
</td>
<td valign="top" width="16">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="66" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font face="Times New Roman" size="2">7,885</font></p>
</td>
<td valign="top" width="16">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="60" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">1,782</font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="58" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">&nbsp;&nbsp;523</font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="81" style="border-bottom-style: solid; border-bottom-width: 1">
<p align="center"><font size="2" face="Times New Roman">-</font></p>
</td>
</tr>

<tr>
<td valign="top" width="372">
<p><font size="2" face="Times New Roman">Total</font></p>
</td>
<td valign="top" width="16">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="47" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font face="Times New Roman" size="2">58,879</font></p>
</td>
<td valign="top" width="16">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="66" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font face="Times New Roman" size="2">54,614</font></p>
</td>
<td valign="top" width="16">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="60" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font face="Times New Roman" size="2">3,232</font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="58" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font size="2" face="Times New Roman">742</font></p>
</td>
<td valign="top" width="15">
<font face="Times New Roman" size="2">&nbsp;</font></td>
<td valign="top" width="81" style="border-top-style: solid; border-top-width: 1">
<p align="center"><font face="Times New Roman" size="2">291</font></p>
</td>
</tr>
</table>

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

<p><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; <i><b>[Borrowing availability under the revolving Senior Credit Facility is based on a
percentage of eligible inventory and accounts (determined on eligibility
criteria set forth in the credit facility) subject to a maximum borrowing
limitation.]&nbsp; </b></i>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 Company entered into a
Seventh Amendment to Credit Agreement on October 31, 2003 (the "Seventh Amendment"), pursuant to which, among other things, (i) the
$167,000 amortization payment due on November 1, 2003 was extended until the termination date of the Senior Credit Facility, and
(ii) the $167,000 amortization payment due on December 1, 2003 was deferred until December 31, 2003.&nbsp; The Senior Credit
Facility bears interest at the prime rate (as defined) plus 2.75%, subject to the rights of the senior lender agent or the required
lenders to charge a default rate equal to the prime rate (as defined) plus 4.75% during the continuance of any event of default
under the Senior Credit Facility, provided, however, that during the Forbearance period (described above), the Senior Credit
Facility bears interest at the prime rate (as defined) plus 2.75% in accordance with the terms of the Forbearance Agreement&nbsp; A
total of $29.5 million (continuing and discontinued operations) in principal amount of loans and other extensions of credit was
outstanding under the Senior Credit Facility at September 30, 2003.</font></p>

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

<p><font size="2" color="black" face="Times New Roman">The Senior Credit Facility matures in July, 2005 and is collateralized by
substantially all the assets of the Company.&nbsp; The Senior Credit Facility contains requirements related to maintaining minimum
excess availability at all times and minimum quarterly levels of earnings before 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>

<p><font size="2" color="black" 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.&nbsp;</font><font size="2"> </font> <font size="2" color="black">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><font size="2" color="black" face="Times New Roman">The Junior Credit Facility, under which $15.3 million in principal, interest
and fees was outstanding at September 30, 2003, mature</font><font size="2" color="black">d on
July 23, 2003 and bears interest at</font><font size="2"> </font>
<font size="2" color="black">a default rate of 10.0%
over the prime rate.&nbsp;</font><font size="2"> </font>
<font size="2" color="black">The Company</font><font size="2"> </font>
<font size="2"
color="black">has not yet repaid or refinanced the outstanding principal and interest under the Junior Credit
Facility.&nbsp;</font><font size="2"> </font> <font size="2" color="black">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; Additionally, the Company is in default of the EBITDA covenant under the Junior Credit
Facility only for the first quarter of calendar 2003.&nbsp; The Company is 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,</font><font size="2">
</font> <font size="2" color="black">2003.</font></p>

<p><font size="2" color="black" face="Times New Roman">Pursuant to the terms of the Intercreditor Agreement, the </font>
<font size=
"2" color="black">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)</font><font size=
"2"> <font color="black">November 26, 2003 (the date which
is 120 days</font> <font color="black">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</font> <font color="black">April&nbsp;24, 2004
(the date which is 270 days</font> <font color="black">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></font></p>

<p><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&nbsp;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>

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

<p><font size="2" color="black" face="Times New Roman">On October 31, 2003, the Company entered into a Forbearance Agreement with
the lenders and the senior lender agent under the Senior Credit Facility (the "Forbearance Agreement"), pursuant to which, among
other things, the senior lenders agreed to forbear from exercising any remedies in respect of the defaults then existing under the
senior credit facility (collectively, the "Existing Senior Facility Defaults") as a result of (i)
the failure to timely deliver financial statements for fiscal year 2002 and the
failure to deliver a report of their independent certified public accountants
which is unqualified in any respect, as well as the event of default under the
Senior Credit Facility caused by the event of default arising from such failure
under the Junior Credit Facility; (ii) the failure to fulfill certain payment
obligations to the junior lenders under the Junior Credit Facility; and (iii)
the failure to fulfill certain financial covenants in the Junior Credit Facility
for one or more of the fiscal quarters ending in fiscal year 2003, which failure
would constitute an event of default under the Senior Credit Facility.&nbsp; The
forbearance period under the Forbearance Agreement (the &quot;Forbearance Period&quot;)
expires on the earlier of (x) December 31, 2003, (y) the occurrence of certain
bankruptcy type events in respect of Company or any of its Subsidiaries, and (z)
the failure of the Company or any of its Subsidiaries that are borrower parties
under the Senior Credit Facility to perform their obligations under the Senior
Credit Facility or the Forbearance Agreement.&nbsp; Under the Forbearance
Agreement, the senior lenders and the senior lender agent do not waive their
rights and remedies with respect to the Existing Senior Facility Defaults, but
agree to forbear from exercising rights and remedies with respect to the
Existing Senior Facility Defaults solely during the Forbearance Period.&nbsp;
There can be no assurance that the senior lenders or the senior lender agent
under the Senior Credit Facility will agree to extend the date of the
Forbearance Period upon the expiration thereof or to waive any of the Existing
Senior Facility Defaults.&nbsp; If the Existing Senior Facility Defaults are not
waived, upon expiration of the Forbearance Period, such events of default could
result n the acceleration of the amounts due under the Senior Credit Facility as
well as other remedies.&nbsp; There is no assurance that the Company will be
able to obtain such a waiver from the senior lenders of the Existing Senior
Facility Defaults.&nbsp; Further, the Company has not obtained any waiver from
the junior lenders in respect of certain events of default that have occurred
under the Junior Credit Facility and there can be no assurance that the Company
will be able to obtain such a waiver from the junior lenders.</font></p>

<p><font size="2" face="Times New Roman">On October 3, 2003, the Company entered into a letter agreement with a large financial
institution pursuant to which such lender confirmed its interest in providing up to $53 million of financing in order to refinance
the Senior Credit Facility and the Junior Credit Facility.&nbsp; The agreement does not constitute a commitment or undertaking by
such lender to provide financing, and is subject to completion of due diligence and various other conditions.&nbsp;The lender has commenced its due diligence process and, if
the transaction proceeds to closing, the Company anticipates the closing occurring by year end 2003.&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">Simultaneous with entering into the</font><font size="2">
</font> <font size="2" color=
"black">Forbearance</font><font size="2"> Agreement on October 31, 2003, William G. Miller, the Chairman of the Board and Co-CEO of
the Company, made a $2 million loan to the Company as a part of the Senior Credit Facility.&nbsp; The loan to the Company and Mr.
Miller&rsquo;s participation in the Senior Credit Facility were effected by the Seventh Amendment to the Credit Agreement and a
Participation Agreement between Mr. Miller and the Senior Credit Facility lenders.</font></p>

<p><font size="2" face="Times New Roman">The Company also is negotiating an agreement with the holders of all of the subordinated
notes issued under the Junior Credit Facility pursuant to which all obligations in excess of approximately $9.7 million arising
under such notes would be converted into shares of common stock of the Company.&nbsp; Such conversion would be at an exchange ratio
equal to the average closing prices of the Company&rsquo;s Common Stock during the fourth quarter of 2003.&nbsp; Such conversion
would occur simultaneously with and conditioned upon the closing of the proposed new credit facility described above.&nbsp; The
conversion of approximately 44% of such debt obligations is further conditioned upon approval of the shareholders of the Company
because this common stock would be issued to insiders of the Company.&nbsp;
There is no definitive agreement regarding this transaction at this time and
there can be no assurance that any such agreement will actually be entered into.</font></p>

<p><b><i><font face="Times New Roman" size="2">[Because of the amount of
obligations outstanding under the Company&#146;s Credit Facilities and the connection
of the interest rates under each facility (including the default rates) to the
prime rate, an increase in the prime rate could have a significant effect on the
Company&#146;s ability to satisfy its obligations under the Credit Facilities and
increase its interest expense significantly.  Therefore, the Liquidity of the Company and its access to capital
resources could be further affected by increasing interest rates.]</font></i></b></p>

<p><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 $3.9 million of mortgage notes payable, equipment notes payable and other long-term
obligations at September 30, 2003.&nbsp; The Company also had approximately $10.3 million in non-cancellable operating lease
obligations, $9.5 million of which relates to truck and building leases of discontinued operations.&nbsp;</font></p>

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

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

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

<p align="center"><font face="Times New Roman" size="2">D-21</font><p align="center">&nbsp;</p>

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</TEXT>
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<SEQUENCE>5
<FILENAME>performancegraph.gif
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<TEXT>
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M!`$`````+`4`!0!F`I$!A(&!@0``````@#/,S/\`_____P$"`P$"`P$"`P$"
M`P$"`P$"`P$"`P$"`P$"`P$"`P$"`P$"`P$"`P$"`P$"`P$"`P$"`P$"`P$"
M`P$"`P$"`P$"`P$"`P$"`P$"`P$"`P/_&+K<_C#*2:N]..O-N_]@*(YD:9YH
MJG)%Z[YP+,]T;=]XKN]\[__`H'!(+!J/R*1RR6SR%,ZH=$JM6J_8K';+[2JA
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`
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`
end

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