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<SEC-DOCUMENT>0000910680-06-000992.txt : 20061018
<SEC-HEADER>0000910680-06-000992.hdr.sgml : 20061018
<ACCEPTANCE-DATETIME>20061018152321
ACCESSION NUMBER:		0000910680-06-000992
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20061110
FILED AS OF DATE:		20061018
DATE AS OF CHANGE:		20061018
EFFECTIVENESS DATE:		20061018

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DRYCLEAN USA INC
		CENTRAL INDEX KEY:			0000065312
		STANDARD INDUSTRIAL CLASSIFICATION:	TELEPHONE & TELEGRAPH APPARATUS [3661]
		IRS NUMBER:				112014231
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14757
		FILM NUMBER:		061150805

	BUSINESS ADDRESS:	
		STREET 1:		290 NE 68 STREET
		CITY:			MIAMI
		STATE:			FL
		ZIP:			33138
		BUSINESS PHONE:		3057544551

	MAIL ADDRESS:	
		STREET 1:		290 NE 68 STREET
		CITY:			MIAMI
		STATE:			FL
		ZIP:			33138

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	METRO TEL CORP
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>def14a111006.htm
<DESCRIPTION>DEFINITIVE PROXY STATEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SCHEDULE 14A INFORMATION<BR>
Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934</FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Filed by the Registrant&nbsp;<IMG SRC="ballotx.jpg" ALIGN="AbsMiddle" HEIGHT="20" WIDTH="20"></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Filed by a party other than the
Registrant <IMG SRC="ballot.jpg" ALIGN="AbsMiddle" HEIGHT="20" WIDTH="20"> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Check the appropriate box: </FONT></P>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="5%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><IMG SRC="ballot.jpg" ALIGN="AbsMiddle" HEIGHT="20" WIDTH="20"> </FONT></TD>
     <TD WIDTH="95%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Preliminary Proxy Statement</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><IMG SRC="ballot.jpg" ALIGN="AbsMiddle" HEIGHT="20" WIDTH="20"> </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><IMG SRC="ballotx.jpg" ALIGN="AbsMiddle" HEIGHT="20" WIDTH="20"> </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Definitive Proxy Statement</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><IMG SRC="ballot.jpg" ALIGN="AbsMiddle" HEIGHT="20" WIDTH="20"> </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Definitive Additional Materials</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><IMG SRC="ballot.jpg" ALIGN="AbsMiddle" HEIGHT="20" WIDTH="20"> </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Soliciting Material Pursuant to &sect;240.14a-11(c) or  &sect;240.14a-12</FONT></TD></TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Head Center Underline" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>DRYCLEAN USA, Inc.</U><BR>
(Name of Registrant as Specified in Its Charter)</FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2> </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Name of Person(s)
Filing Proxy Statement, if other than the Registrant) </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Payment of Filing Fee (Check the
appropriate box): </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><IMG SRC="ballotx.jpg" ALIGN="AbsMiddle" HEIGHT="20" WIDTH="20"> </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>No
fee required  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><IMG SRC="ballot.jpg" ALIGN="AbsMiddle" HEIGHT="20" WIDTH="20"> </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fee
computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1)  </FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=91%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Title
of each class of securities to which transaction applies:  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
                    <TD WIDTH=91%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    Aggregate number of securities to which transaction applies: </FONT></P></TD>
                    </TR>
                    </TABLE>
                    <BR>

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               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
                    <TD WIDTH=91%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    Per unit price or other underlying value of transaction computed pursuant to
                    Exchange Act Rule 0-11 (Set forth the amount on which the filing fee is
                    calculated and state how it was determined): </FONT></P></TD>
                    </TR>
                    </TABLE>
                    <BR>

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               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
                    <TD WIDTH=91%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    Proposed maximum aggregate value of transaction: </FONT></P></TD>
                    </TR>
                    </TABLE>
                    <BR>

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               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
                    <TD WIDTH=91%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    Total fee paid: </FONT></P></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="Para Hang" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><IMG SRC="ballot.jpg" ALIGN="AbsMiddle" HEIGHT="20" WIDTH="20">  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fee
paid previously with preliminary materials.  </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang" FSL="Default" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><IMG SRC="ballot.jpg" ALIGN="AbsMiddle" HEIGHT="20" WIDTH="20"></FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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 fee was paid
               previously. Identify the previous filing by registration statement number,
or                the Form or Schedule and the date of its filing.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1) </FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=91%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Amount
Previously Paid:  </FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2) </FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=91%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Form,
Schedule or Registration Statement No.:</FONT></P></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3) </FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=91%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Filing
Party:  </FONT></P></TD>
</TR>
</TABLE>
<BR>



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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=6%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4) </FONT></TD>
<TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=91%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date
Filed:  </FONT></P></TD>
</TR>
</TABLE>
<BR>


<DIV STYLE="page-break-after:always"></DIV>

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<HR SIZE=5 COLOR=GRAY NOSHADE>





<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>DRYCLEAN USA, Inc.<BR>
290 N.E. 68th Street<BR>
Miami, Florida 33138 </FONT></H1>

<!-- MARKER FORMAT-SHEET="Center Rule" FSL="Default" -->
     <P ALIGN=CENTER>_________________ </P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>NOTICE OF ANNUAL
MEETING OF STOCKHOLDERS<BR>
TO BE HELD ON NOVEMBER 10, 2006 </FONT></H1>

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     <P ALIGN=CENTER>_________________ </P>

<!-- MARKER FORMAT-SHEET="Head Right" FSL="Default" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Miami, Florida<BR>
October 18, 2006 </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To the Stockholders of<BR>
DRYCLEAN USA, Inc.: </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>NOTICE
IS HEREBY GIVEN </B>that the 2006 Annual Meeting of Stockholders of DRYCLEAN USA, Inc., a
Delaware corporation (the &#147;Company&#148;), will be held on Friday, November 10, 2006,
at 11:00 A.M., Eastern Standard Time, at the offices of the Company and the Company&#146;s
subsidiary, Steiner-Atlantic Corp., 290 N.E. 68th Street, Miami, Florida, for the purpose
of considering and acting upon the following matters: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The election of seven (7) directors to serve until the next annual meeting of
          stockholders and until the election and qualification of their respective
          successors; and </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The transaction of such other business as may properly be brought before the
          meeting or any adjournments or postponements thereof. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors has fixed the close of business on September 29, 2006 as the record
date for the determination of stockholders entitled to notice of, and to vote at, the
meeting. </FONT></P>


<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By Order of the Board of Directors,<BR>
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lloyd Frank,<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;Secretary<BR>
</FONT></TD></TR>
</TABLE>





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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>The return of your signed proxy as
promptly as possible will greatly facilitate arrangements for the meeting. No postage is
required if the proxy is returned in the enclosed envelope and mailed in the United
States.</B> </FONT></P>


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<!-- MARKER FORMAT-SHEET="Head Major Center Bold 1" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>DRYCLEAN USA, Inc.<BR>
290 N.E. 68th Street<BR>
Miami, Florida 33138 </FONT></H1>

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     <P ALIGN=CENTER>_________________ </P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>PROXY STATEMENT<BR>
For Annual Meeting of Stockholders<BR>
To be Held on November 10, 2006 </FONT></H1>

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     <P ALIGN=CENTER>_________________ </P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>INTRODUCTION </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Proxy Statement, to be mailed to stockholders on or about October 18, 2006, is furnished
in connection with the solicitation by the Board of Directors of DRYCLEAN USA, Inc., a
Delaware corporation (the &#147;Company&#148;), of proxies in the accompanying form (the
&#147;Proxy&#148; or &#147;Proxies&#148;) for use at the 2006 Annual Meeting of
Stockholders of the Company (the &#147;Meeting&#148;) to be held on Friday, November 10,
2006, and at any adjournments or postponements thereof. The Meeting will be held at the
place and time stated in the notice attached hereto. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
Proxies properly and timely received will be voted in accordance with the specifications
made thereon or, in the absence of any specification, for the election of all of the
nominees named herein to serve as directors. Any Proxy given pursuant to this solicitation
may be revoked before it is voted by the person giving it by (i) notice in writing or by a
later dated proxy received by the Company at 290 N.E. 68th Street, Miami, Florida 33138,
Attention: President, or (ii)&nbsp;by voting in person at the Meeting. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Only
holders of record of shares of the Company&#146;s Common Stock (the &#147;Common
Stock&#148;) as of the close of business on September 29, 2006 (the &#147;Record
Date&#148;) are entitled to notice of, and to vote at, the Meeting or any adjournments or
postponements thereof for which a new record date is not fixed. As of the close of
business on the Record Date, there were issued and outstanding 7,034,450 shares of Common
Stock. Stockholders whose Common Stock is held in &#147;street name&#148; (that is, whose
shares are held by, and registered in the name of, a broker or other nominee) will receive
instructions from, or on behalf of, that institution describing the procedures for
advising the institution how to vote those shares. Those stockholders whose shares are
held in street name who wish to vote at the Meeting will need to obtain a proxy form from
the institution that holds their shares. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
presence, in person or represented by proxy, of a majority of the outstanding shares of
Common Stock will constitute a quorum for the transaction of business at the Meeting.
Brokers that are members of the New York Stock Exchange have discretion to vote the shares
of their clients that the broker holds in street name for its customers but as to which
the broker has received no voting direction from the beneficial owner of the shares with
respect to non-contested elections of directors and certain other matters. Brokers are,
therefore, expected to vote such shares on the election of directors. If a broker, nominee
or other fiduciary holding shares in street name votes some, but not all, of the shares
held by it as record owned for one or more beneficial owner of shares on one or more
matters, the shares not voted by it on a matter are called &#147;broker non-votes.&#148;
Proxies submitted which contain abstentions or broker non-votes will be deemed present at
the Meeting for determining the presence of a quorum. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
share of Common Stock held as of the Record Date is entitled to one vote on each matter to
be acted upon at the Meeting. A plurality of the votes (that is, the seven persons
receiving the highest number of affirmative votes) of the shares present in person or
represented by proxy at </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
the Meeting and  entitled to vote on the election of  directors  will be required  for the  election of  directors.
Accordingly, shares as to which authority to vote is withheld from Proxies and broker non-votes will have no effect on the
outcome of the vote on the election of directors. While the Company knows of no matters
other than the election of directors to be brought before the Meeting (see
&#147;Miscellaneous &#151; Other Matters&#148;), if any other matters are brought before
the Meeting, under Delaware law approval thereof will require the affirmative vote of
either (depending on the nature of the matter) a majority of the shares of Common Stock
present in person or represented by proxy at the Meeting and entitled to vote on the
subject matter or a majority of all outstanding shares of Common Stock. Abstentions will
have the effect of a negative vote on all such matters. Broker non-votes will have no
effect on the outcome of the vote on a matter requiring approval by a majority of those
entitled to vote on the matter, but will have the effect of a negative vote on any matter
requiring approval by a majority of all outstanding shares of Common Stock. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>OWNERSHIP OF CERTAIN
BENEFICIAL<BR>OWNERS AND MANAGEMENT </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Large Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table sets forth information, as at September 30, 2006, with respect to the
shares of Common Stock that are beneficially owned by (i) any person (including any
&#147;group,&#148; as that term is used in Section 13(d)(3) of the Securities Exchange Act
of 1934) who is known to the Company to be the beneficial owner of more than five percent
of the Company&#146;s outstanding Common Stock, (ii) the executive officers of the Company
named in the Summary Compensation Table under the caption &#147;Executive
Compensation,&#148; below, (iii) each director and nominee to serve as a director of the
Company and (iv) all executive officers and directors of the Company as a group: </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=80%>
<TR VALIGN=Bottom>
     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Beneficial Owner</U></FONT></TH>
     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Amount and<BR>
Nature of<BR>
Beneficial<BR>
<U>Ownership (1)</U></FONT></TH>
     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Percent<BR>
<U>of Class (2)</U><BR>
</FONT></TH></TR>
<TR VALIGN="TOP" BGCOLOR="#CCEEFF">
     <TD WIDTH="56%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>William K. Steiner</FONT></TD>
     <TD WIDTH="4%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="14%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>2,049,097</FONT></TD>
        <TD WIDTH="10%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>29</FONT></TD>
        <TD WIDTH="8%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><BR>.1%(3) </FONT></TD></TR>
<TR VALIGN="TOP" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>290 N.E. 68th Street</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Miami, FL 33138</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Michael S. Steiner</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>2,019,197</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>28</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>.7%(3)</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>290 N.E. 68th Street</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Miami, FL 33138</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Cindy B. Greenstein</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>482,760</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>(4)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>6</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>.9%(3)</FONT></TD></TR>
<TR VALIGN="TOP" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1031 S.W. 156th Avenue</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pembroke Pines, FL 33027</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Venerando J. Indelicato</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>304,937</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>(5)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>4</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>.3%</FONT></TD></TR>
<TR VALIGN="TOP" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>David Blyer</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>10,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>(6)</FONT></TD>
     <TD COLSPAN="2" ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>*</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Lloyd Frank</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>34,119</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>(7)</FONT></TD>
     <TD COLSPAN="2" ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>*</FONT></TD></TR>
<TR VALIGN="TOP" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Alan M. Grunspan</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>12,500</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>(8)</FONT></TD>
     <TD COLSPAN="2" ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>*</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Stuart Wagner</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>15,000</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>(9)</FONT></TD>
     <TD COLSPAN="2" ALIGN="center"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>*</FONT></TD></TR>
<TR VALIGN="TOP" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Executive officers and directors as a</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>4,927,610</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>(10)</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>69</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>.9%</FONT></TD></TR>
<TR VALIGN="TOP" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>group (8 persons)</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>___________________________<BR>
<I>Footnotes appear on the following page.</I> </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-2- </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

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<HR SIZE=5 COLOR=GRAY NOSHADE>


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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Except as noted in the following footnotes, all beneficially owned shares are
               owned with sole voting and investment power. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Asterisk indicates less than one percent. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(3) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               See &#147;Stockholders Agreement,&#148; below, for information regarding an
               Amended and Restated Stockholders Agreement entered into among William K.
               Steiner, Michael S. Steiner, Cindy B. Greenstein and Alan I. Greenstein pursuant
               to which they have agreed to vote an aggregate of 4,520,954 shares (64.3%) of
               the Company&#146;s outstanding Common Stock for the election as directors of the
               Company of those persons designated by the holders of a majority of the shares
               subject to the Stockholders Agreement that are presently owned by Michael S.
               Steiner and William K. Steiner. As a result, and giving effect to the 30,000 and
               100 additional shares owned by William K. Steiner and Michael S. Steiner,
               respectively, that are not subject to the Stockholders Agreement and as to which
               they have sole voting power, Messrs. William K. Steiner, Michael S. Steiner and
               Cindy B. Greenstein may, under applicable Securities and Exchange Commission
               rules, be deemed to be the beneficial owners of 4,550,954 (64.7%), 4,521,054
               (64.3%) and 4,520,954 (64.3%), respectively, of the Company&#146;s outstanding
               Common Stock with shared voting power as to 4,520,954 (64.3%) of the
               Company&#146;s outstanding Common Stock and sole voting power with respect to
               the balance of such shares owned by such person. Each has sole dispositive power
               with respect to all of the shares reflected as owned by such person in the above
               table. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(4) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Cindy Greenstein is the wife of Alan I. Greenstein, Executive Vice President and
               Chief Operating Officer of the Company&#146;s Steiner-Atlantic Corp. subsidiary.
               Under applicable Securities and Exchange Commission rules, Alan I. Greenstein
               may be deemed an &#147;executive officer&#148; of the Company. See
               &#147;Executive Compensation,&#148; below. Mr. Greenstein disclaims beneficial
               ownership of these shares. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(5) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Includes (a) 163,718 shares (2.3% of the Company&#146;s outstanding Common
               Stock) owned by Mr. Indelicato and his wife as co-trustees under his living
               trust under which the sole lifetime beneficiary is Mr. Indelicato and (b)
               141,219 shares (2.0% of the Company&#146;s outstanding Common Stock) owned by
               Mr. Indelicato and his wife as co-trustees under the living trust of Mr.
               Indelicato&#146;s wife under which the sole lifetime beneficiary is Mr.
               Indelicato&#146;s wife. Mr. Indelicato disclaims beneficial ownership of the
               shares owned by his wife&#146;s living trust. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(6) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Represents shares which are not outstanding but which are subject to issuance
               upon the exercise of a stock option that is presently exercisable in full. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(7) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Includes 21,494 shares owned by Mr. Frank&#146;s wife, as to which Mr. Frank
               disclaims beneficial ownership. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(8) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Includes 10,000 shares which are not outstanding but which are subject to
               issuance upon the exercise of a stock option that is presently exercisable in
               full. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(9) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Includes 5,000 shares owned by Mr. Wagner&#146;s wife, as to which Mr. Wagner
               disclaims beneficial ownership. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(10) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Includes (a) 509,254 shares owned by spouses of executive officers and
               directors, as to which such executive officers and directors disclaim beneficial
               ownership, and (b) 20,000 shares which are not outstanding but which are subject
               to issuance upon the exercise of stock options that are presently exercisable in
               full. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-3- </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Stockholders Agreement </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
December 6, 2005, William K. Steiner, Michael S. Steiner, Cindy B. Greenstein and Alan I.
Greenstein entered into an Amended and Restated Stockholders Agreement (the
&#147;Stockholders Agreement&#148;) which covers an aggregate of 4,520,954 (64.3%) of the
Company&#146;s outstanding shares of Common Stock (the &#147;Shares&#148;). The
Stockholders Agreement provides that the 2,019,097 Shares owned of record by each of
Michael S. Steiner and William K. Steiner (together with any transferees to whom either of
them transfers Shares, to the extent of the Shares so transferred, collectively, the
&#147;Steiner Family Stockholders&#148;) and the 482,760 Shares owned of record by Cindy
B. Greenstein (together with any transferee to whom she transfers Shares, to the extent of
the Shares so transferred, collectively, the &#147;Greenstein Stockholders&#148;) are,
except to the extent otherwise agreed from time to time by each of (a) the holders of a
majority of the Shares held by the Greenstein Stockholders and (b) the holders of a
majority of the Shares held by the Steiner Family Stockholders, to be voted to elect as
directors of the Company such designees as may be selected by the holders of a majority of
the Shares held by the Steiner Family Stockholders. Should any designee of the Steiner
Family Stockholders resign, determine not to seek re-election to the Company&#146;s Board
of Directors (the &#147;Board&#148;), be removed from office, die, become incapacitated or
otherwise cease to serve on the Board, and should such designee not be replaced by the
Board with the a designee recommended to the Board by the Steiner Family Stockholders, the
parties to the Stockholders Agreement are to take all such action as may be permitted
under the Company&#146;s Certificate of Incorporation or By-laws and laws of its state of
incorporation to promptly call a special or other meeting of stockholders of the Company
and vote, or execute a written consent, to elect as the successor to such former director
a person designated by the holders of a majority of the Shares held by the Steiner Family
Stockholders. The Stockholders Agreement is to terminate on the earliest to occur of (i)
the date agreed to in writing by the owners of record of a majority of the Shares and (ii)
the liquidation of the Company or the Company&#146;s merger with, or sale of substantially
all of its assets to, or another change in control transaction with, another entity that
is approved by the Board, following which transaction or series of transactions the
stockholders of the Company immediately prior to the first of such transactions do not own
more than 50% of the outstanding voting power of the resulting entity at the effective
date of the last of such transactions. The slate of nominees proposed in this Proxy
Statement to serve as directors was approved by the Steiner Family Stockholders. </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>ELECTION OF DIRECTORS </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
otherwise directed, the persons named in the enclosed Proxy intend to cast all votes
pursuant to Proxies received for the election of Messrs. Michael S. Steiner, William K.
Steiner, Venerando J. Indelicato, David Blyer, Lloyd Frank, Alan M. Grunspan and Stuart
Wagner (said persons being hereinafter referred to as the &#147;nominees&#148;) as
directors upon their nomination at the Meeting. Directors elected at the Meeting will
serve until the next Annual Meeting of Stockholders and until their respective successors
are elected and qualified. All nominees were elected by stockholders at the Company&#146;s
2005 Annual Meeting of Stockholders. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event that any of the nominees should become unavailable to serve as a director for
any reason, the holders of Proxies have discretionary authority to vote for one or more
alternate nominees who may be designated by the Board of Directors. The Company believes
that all of the nominees are available to serve as directors. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;William
K. Steiner, Michael S. Steiner and Cindy B. Greenstein, who are parties to a Stockholders
Agreement relating the voting of 64.4% of the Company&#146;s Common Stock, have agreed to
vote for the nominees named in this Proxy Statement. See &#147;Ownership of Certain
Beneficial Owners and Management &#150; Stockholders Agreement,&#148; above. </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-4- </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Background of Nominees </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Michael
S. Steiner, 50, has been President, Chief Executive Officer and a director of the Company
since November 1998 and President and Chief Executive Officer of Steiner-Atlantic Corp., a
subsidiary of the Company (&#147;Steiner&#148;) since 1988. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;William
K. Steiner, 76, has been Chairman of the Board and a director of the Company since
November 1998 and Chairman of the Board and a director of Steiner since he founded Steiner
in 1960. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Venerando
J. Indelicato, 73, was President of the Company from December 1967 until November 1998 and
since that time has been Treasurer and Chief Financial Officer of the Company. Mr.
Indelicato has been a director of the Company since 1967. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;David
Blyer, 46, has served as a director of the Company since November 1998. Mr. Blyer has been
Co-Chairman of Profiles in Concrete, Inc., a manufacturer and installer of architectural
cast stone for the residential and commercial construction markets, since January 2005.
From July 2002 until January 2005, Mr. Blyer was an independent consultant. Mr. Blyer was
Chief Executive Officer and President of Vento Software, Inc. (&#147;Vento&#148;), a
developer of software for specialized business applications, from 1994, when he co-founded
that company, until November 1999, when that company was acquired by SPSS Inc.
(&#147;SPSS&#148;), a computer software company that develops and distributes technology
for the analysis of data in decision-making. From November 1999 until December 2000, Mr.
Blyer served as Vice President of Vento and, from January 2001 until July 2002, served as
President of the Enabling Technology Division of SPSS. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lloyd
Frank, 81, has been a director of the Company since 1977. Mr. Frank has been counsel to
the law firm of Troutman Sanders LLP since April 2005. Prior thereto, Mr. Frank was a
member of Jenkens &amp; Gilchrist Parker Chapin LLP and its predecessor from 1977 until
the end of 2003 and counsel to that firm from January 2004 until he joined Troutman
Sanders LLP. The Company retained Troutman Sanders LLP during the Company&#146;s last
fiscal year and is retaining Troutman Sanders LLP during the Company&#146;s current fiscal
year. Mr. Frank is also a director of Park Electrochemical Corp. and Volt Information
Sciences, Inc. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alan
M. Grunspan, 47, has served as a director of the Company since May 1999. Since December
2004, Mr. Grunspan has been a member of the law firm of Carlton Fields LLC. Mr. Grunspan
was a member of the law firm of Kaufman Dickstein &amp; Grunspan, P.A. from 1989 until he
joined Carlton Fields LLC. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stuart
Wagner, 75, has served as a director of the Company since November 1998. Mr. Wagner has
been retired since 2001. From 1975 to 1997, Mr. Wagner served as President and Chief
Executive Officer of Wagner Products Corp., a manufacturer and distributor of products in
the HVAC industry, a company which he founded, and served as a consultant to Diversified
Corp., which acquired Wagner Products Corp., from 1997 until 2001. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Michael
S. Steiner is the son of William K. Steiner. There are no other family relationships among
any of the directors and executive officers of the Company. All directors serve until the
next annual meeting of stockholders and until the election and qualification of their
respective successors. All officers serve at the pleasure of the Board of Directors. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Directors&#146;
Independence </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors has determined that David Blyer, Lloyd Frank, Alan Grunspan and Stuart
Wagner (constituting a majority of the Board of Directors) are &#147;independent
directors&#148; pursuant to Section 121A of the standards for listing of the American
Stock Exchange LLC </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-5- </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(&#147;AMEX&#148;), on which the
Company&#146;s Common Stock is listed. In reaching its conclusion, the Board determined
that these individuals do not have a material relationship with the Company that would
interfere with their exercise of independent judgment, and do not have any of the specific
relationships set forth in that section that would disqualify them from being considered
independent directors. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Controlled Company </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Large Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
a result of the Stockholders Agreement, Messrs. William K. Steiner, Michael S. Steiner and
Cindy B. Greenstein are a group with shared voting power over an aggregate of 64.3% of the
Company&#146;s Common Stock. See &#147;Ownership of Certain Beneficial Owners and
Management &#150; Stockholders Agreement.&#148; They own an additional .4% of the
Company&#146;s outstanding Common Stock which is not subject to the Stockholders
Agreement. Accordingly, the Company is a &#147;controlled company&#148; under the listing
standards of AMEX. Therefore, the Company is not subject to AMEX&#146;s rules otherwise
requiring companies like the Company to have a Board of Directors consisting of at least
50% &#147;independent directors,&#148; governing the determination of executive
compensation and governing the nomination of directors. The Company has, however,
voluntarily complied with AMEX&#146;s minimum independent director and executive
compensation determination rules. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Meetings of the Board of
Directors </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the Company&#146;s fiscal year ended June 30, 2006 its Board of Directors held five
meetings. Each director attended at least 75% of the meetings of the Board of Directors
and the committees on which he served that were held during that fiscal year. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
is the Company&#146;s policy that, absent extenuating circumstances, all members of the
Board of Directors attend meetings of stockholders. All of the members of the Board
attended the Company&#146;s 2005 Annual Meeting of Stockholders. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Committees of the Board </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors has standing Audit and Compensation Committees. The Board does not have
a standing Nominating Committee. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board&#146;s Audit Committee consists of Alan M. Grunspan (Chairman), David Blyer and
Stuart Wagner. The Audit Committee provides assistance to the Company&#146;s Board of
Directors in fulfilling the Board&#146;s oversight responsibilities with respect to
accounting, auditing and financial reporting practices. The Audit Committee operates under
a written charter adopted by the Board of Directors, which the Committee annually reviews,
assesses and, with respect to which, if it deems it appropriate, recommends changes to the
Board. A copy of the Audit Committee&#146;s charter was attached to the Proxy Statement
used in connection with the Company&#146;s 2004 Annual Meeting of Stockholders. Under its
charter, the Audit Committee serves as an independent and objective party to monitor the
Company&#146;s financial and accounting reporting process and internal control system;
reviews and appraises the performance, qualifications and independence of the
Company&#146;s independent auditor; and provides an open avenue of communication among the
Company&#146;s independent auditor, financial and senior management and the Board. Among
other things, the Audit Committee reviews the financial reports and other financial
information provided by the Company to the Securities and Exchange Commission and the
public; the Company&#146;s systems of internal control over financial reporting; and the
Company&#146;s auditing, accounting and financial reporting processes generally. The Audit
Committee also is responsible for the appointment and retention of, and oversees the work
of, the Company&#146;s independent auditor, confirms the independence of the independent
auditor and approves the fees and other compensation to be paid to the independent
auditors. A report of the Audit Committee appears under the caption &#147;Audit </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-6- </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Committee Report," below.  The Audit
Committee held four meetings during the year ended June 30, 2006. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors has concluded that each of the members of the Audit Committee is an
&#147;independent director&#148; under Section 121A of the standards for listing of the
AMEX, as well as Rule 10A-3 promulgated by the Securities and Exchange Commission (the
&#147;SEC&#148;) under the Securities Exchange Act of 1934, and is able to read and
understand fundamental financial statements, including a company&#146;s balance sheet,
income statement and cash flow statement. The Board of Directors has concluded that Stuart
Wagner, a member of the Audit Committee, is an &#147;audit committee financial
expert,&#148; within the meaning of Item 401(h) of Regulation S-K promulgated by the SEC. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
members of the Compensation Committee are David Blyer, Lloyd Frank and Stuart Wagner, each
of whom is an &#147;independent director&#148; under Section 121A of the AMEX listing
standards for purposes of sitting on the Company&#146;s Compensation Committee. This
Committee determines the compensation of all executive officers, administers the
Company&#146;s employee stock option plans (including granting options), approves changes
in the Company&#146;s Section 401(k) profit sharing plan and reviews the Company&#146;s
other employee benefit arrangements. The Company&#146;s Chief Executive Officer is not
permitted to be present during the deliberations or voting on his compensation. The
Compensation Committee did not<B> </B>meet during the year ended June 30, 2006, but met on
one occasion following fiscal 2006 year end to consider salaries and bonuses for executive
officers. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Director Nomination
Process </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
a &#147;controlled company&#148; under AMEX&#146;s listing standards, the Company is not
required to cause nominees for director to be selected or recommended to the Board by
either a nominating committee comprised solely of independent directors or by a majority
of the Company&#146;s independent directors. The Board of Directors has determined not to
form a nominating committee because it is a &#147;controlled company,&#148; with more than
a majority of the Company&#146;s Common Stock owned by three stockholders who have agreed
to vote together in the election of directors and can, therefore, elect all directors (see
&#147;Ownership of Certain Beneficial Owners and Management &#150; Stockholders
Agreement&#148; and &#147;Controlled Company,&#148; above) and because there has
historically been few vacancies on the Board. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Instead,
the full Board of Directors, a majority of whom meet the &#147;independent director&#148;
criteria under the AMEX listing standards, participates in the consideration of director
nominees. The Board does not have a charter governing its nomination process. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While
the Board will consider nominees recommended by stockholders, it has not actively
solicited recommendations from stockholders. Although the Board has not established
specific minimum qualifications, or specific qualities or skills for prospective nominees,
the Board will consider, among other things, a potential nominee&#146;s financial and
business experience, educational background, understanding of the Company&#146;s business
and industry, skills that would complement rather than duplicate skills of existing Board
members, demonstrated ability in his or her professional field, integrity and reputation,
willingness to work productively with other members of the Board and represent the
interests of stockholders as a whole, and time availability to perform the duties of a
director, as well as the then current size and composition of the Board. No weight is
assigned to any of the factors and the Board may change its emphasis on certain of these
factors from time to time in light of the needs of the Company at the time. The Board will
evaluate nominees of stockholders using the same criteria as it uses in evaluating other
nominees to the Board. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
stockholder seeking to recommend a prospective nominee should submit the recommendation to
the Board in the manner described under &#147;Stockholder Communications with
 </FONT></P>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-7- </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Directors,"  below,  and within the time frame described in the second sentence under the caption
&#147;Miscellaneous &#150;
Stockholder Proposals,&#148; below. The recommendation should include, in addition to the
name and business or residence address of the nominee, the written consent of the person
being recommended to being named in the Company&#146;s proxy statement relating to the
stockholder vote on his or her election and to serving as a director if elected. The
recommendation must also include all information that would be required to be disclosed
concerning such nominee in solicitations of proxies for the election of directors pursuant
to Regulation 14A under the Exchange Act, including, but not limited to, the information
required by Items 401, 403 and 404 of Regulation S-B of the SEC. In addition, the
stockholder recommending the proposed nominee must provide the recommending
stockholder&#146;s name, address and number of shares of the Company&#146;s Common Stock
owned by such stockholder as they appear on the Company&#146;s stockholder records and the
length of time the shares have been owned by the recommending stockholder (or, if held in
&#147;street name,&#148; a written statement from the record holder of the shares
confirming the information concerning such stock ownership of the recommending
stockholder) and whether the recommendation is being made with or on behalf of one or more
other stockholders (and, if so, similar information with respect to each other stockholder
with or on behalf of whom the recommendation is being made). </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Stockholder
Communications with Directors </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholders
may communicate directly with the Board or one or more specific directors by sending a
written communication to: Board of Directors or a specific director, c/o the
Company&#146;s President, 290 N.E. 68th Street, Miami, Florida 33138. The Company&#146;s
President will forward the communication to the director or directors to whom it is
addressed, except for communications that are (1) advertisements or promotional
communications, (2) related solely to complaints by users of the Company&#146;s products
or services that are ordinary course of business customer service and satisfaction issues
or (3) clearly unrelated to the Company&#146;s business, industry, management, Board or
committee matters. The President will make all communications not specifically addressed
to any one director available to each member of the Board at the Board&#146;s next
regularly scheduled meeting. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Codes of Business
Conduct and Ethics </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company has adopted a Code of Business Conduct and Ethics that applies to all of its
directors, officers and employees, which is supplemented by a Senior Financial Officer
Code of Conduct that additionally applies to its Chief Executive Officer and senior
financial officers. Copies of these codes are available on the Company&#146;s website at
<I>www.drycleanusa.com</I> by clicking on &#147;Investors.&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Audit Committee Report </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Large Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management
has the primary responsibility for the Company&#146;s financial reporting process,
including its consolidated financial statements, while the Board is responsible for
overseeing the Company&#146;s accounting, auditing and financial reporting practices and
the Company&#146;s independent public accountants have the responsibility for the
examination of the Company&#146;s annual consolidated financial statements, expressing an
opinion on the conformity of those financial statements with accounting principles
generally accepted in the United States and issuing a report thereon. The responsibilities
of the Audit Committee are described under the caption &#147;Election of Directors &#150;
Committees of the Board.&#148; In assisting the Board in fulfilling its oversight
responsibility with respect to the Company&#146;s consolidated financial statements for
the year ended June 30, 2006, the Audit Committee: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2> &#149;</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Reviewed and discussed the audited consolidated financial statements for the fiscal year
ended June 30, 2006 with management and Morrison, Brown, Argiz &amp; Farra, LLP
(&#147;Morrison, Brown&#148;), the Company&#146;s independent public accountants; </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-8- </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149;</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Discussed
 with  Morrison,  Brown the matters  required to be discussed by Statement on Auditing
 Standards  No. 61 relating to the          conduct of the audit; and </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149;</FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Received the written disclosures and the letter from Morrison, Brown regarding its
independence as required by Independence Standards Board Standard No. 1,
&#147;Independence Discussions with Audit Committees.&#148; The Audit Committee also
discussed Morrison, Brown&#146;s independence with Morrison, Brown and considered whether
the provision of non-audit services rendered by Morrison, Brown was compatible with
maintaining its independence under SEC rules governing the independence of a
company&#146;s outside auditors (see &#147;Miscellaneous &#150; Auditors&#148;). </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based
on the foregoing review and discussions, the Audit Committee recommended to the Board that
the Company&#146;s audited consolidated financial statements for the fiscal year ended
June 30, 2006 be included in the Company&#146;s Annual Report on Form 10-KSB filed with
the SEC for that year. </FONT></P>


<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Respectfully,<BR>
<BR>
David Blyer<BR>
Alan M. Grunspan<BR>
Stuart Wagner<BR>
</FONT></TD></TR>
</TABLE>



<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>EXECUTIVE COMPENSATION </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Summary Compensation
Table </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table sets forth information concerning the compensation of the only persons who
may be deemed &#147;executive officers&#148; of the Company under applicable Securities
and Exchange Commission rules and whose cash compensation exceeded $100,000 during the
Company&#146;s fiscal year ended June 30, 2006 (the &#147;Named Executive Officers&#148;)
for services in all capacities to the Company during the Company&#146;s 2006, 2005 and
2004 fiscal years: </FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=70%>
<TR VALIGN=Bottom>
     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TH>
     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TH>
     <TH COLSPAN=4><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Annual Compensation</U></FONT></TH>
     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN="2" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Name and<BR>
<U>Principal Position</U></FONT></TH>
     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Year</U></FONT></TH>
     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Salary</U></FONT></TH>
     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Bonus</U></FONT></TH>
     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>All Other<BR>
<U>Compensation</U></FONT></TH></TR>
<TR VALIGN=Top>
     <TD WIDTH=40% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Michael S. Steiner,</FONT></TD>
     <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>&nbsp;</FONT></TD>
     <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>2006</FONT></TD>
     <TD WIDTH=8% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>&nbsp;</FONT></TD>
     <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>$250,000</FONT></TD>
        <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>&nbsp;</FONT></TD>
     <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>$50,000</FONT></TD>
        <TD WIDTH=4% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>&nbsp;</FONT></TD>
     <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>$1,542</FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>(1)</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>President and Chief</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2005</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>250,000</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD COLSPAN="2" ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;--</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,166</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Executive Officer</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2004</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>250,000</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD COLSPAN="2" ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;--</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,082</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>Alan I. Greenstein,</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>2006</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>$125,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>$25,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>&nbsp;</FONT></TD>
     <TD COLSPAN="2" ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;--</FONT></TD></TR>
<TR VALIGN="TOP" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Executive Vice President</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2005</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>125,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD COLSPAN="2" ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;--</FONT></TD>
     <TD COLSPAN="2" ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;--</FONT></TD></TR>
<TR VALIGN="TOP" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>and Chief Operating Officer</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2004</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12,019</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD COLSPAN="2" ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;--</FONT></TD>
     <TD COLSPAN="2" ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;--</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>William K. Steiner</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>2006</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>$75,000</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>$50,000</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>&nbsp;</FONT></TD>
     <TD COLSPAN="2" ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;--</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Chairman of the</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2005</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>75,000</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD COLSPAN="2" ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;--</FONT></TD>
     <TD COLSPAN="2" ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;--</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Board of Directors</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2004</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>75,000</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD COLSPAN="2" ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;--</FONT></TD>
     <TD COLSPAN="2" ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;--</FONT></TD></TR>
</TABLE>

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<P>_________________ </P>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(1) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               &#147;All Other Compensation&#148; for fiscal 2006 represents the Company&#146;s
               matching contribution in fiscal 2006 for Michael S. Steiner under the
               Company&#146;s Profit Sharing Plan pursuant to Section 401(k) of the Internal
               Revenue Code of 1986, as amended. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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          <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
               <TR VALIGN=TOP>
               <TD ALIGN=RIGHT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(2) </FONT></TD>
               <TD ALIGN=LEFT WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
               <TD WIDTH=94%><P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
               Mr. Greenstein joined the Company in May 2004. </FONT></P></TD>
               </TR>
               </TABLE>
               <BR>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-9- </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Option Grants and
Exercises in Last Fiscal Year and Year-end Values </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
options were granted to, or exercised by, any of the Named Executive Officers during the
Company&#146;s fiscal year ended June 30, 2006 nor were any options held by Named
Executive Officers at June 30, 2006. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Standard Remuneration of
Directors </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
non-employee director receives a fee of $5,000 per annum. The Chairman of the Audit
Committee (Alan M. Grunspan) receives an additional fee of $5,000 per annum for services
in that capacity. Directors are also reimbursed for out-of-pocket expenses incurred in
connection with performing their duties. In the event that the Board of Directors holds
more than four meetings during a fiscal year in addition to its annual meeting held on the
date of the Annual Meeting of Stockholders, each director receives $750 for each such
additional meeting such director attends. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s 1994 Non-Employee Director Stock Option Plan expired as to future grants on
August 23, 2004. Prior to its expiration, each non-employee director of the Company
serving on August 24, 1994 was then granted, and each person who subsequently became a
non-employee director for the first time was granted at the time of election to the Board,
an option to purchase 10,000 shares of the Company&#146;s Common Stock at an exercise
price equal to 100% of the fair market value of the Company&#146;s Common Stock on the
date of grant. Each option is for a term of ten years and vests over a four-year period
commencing one year after the date of grant (with vesting credit given for any service on
the Board of Directors prior to the date of grant). In May 2006, Stuart Wagner, a director
of the Company, exercised an option granted to him in November 1998 pursuant to this plan
to purchase 10,000 shares of the Company&#146;s Common Stock at $.91 per share. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Certain Relationships
and Related Transactions </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company leases 27,000 square feet of warehouse and office space from William K. Steiner, a
principal stockholder, Chairman of the Board of Directors and a director of the Company.
On September 9, 2005, the Company and Mr. Steiner entered into a new lease for this space
for a three-year period beginning November 1, 2005 at an annual rental of $94,500, with
annual increases commencing November 1, 2006 of 3% over the rent in the prior year. The
Company is also to bear real estate taxes, utilities, maintenance, non-structural repairs
and insurance. The new lease contains two three-year renewal options in favor of the
Company. The rent (exclusive of real estate taxes, utilities, maintenance, repairs and
insurance borne by the Company) under the former lease, which expired by its terms on
October 31, 2005, was $83,200 for the year ended June 30, 2005. The Company believes that
the terms of the new lease are, and the old lease were, comparable to terms that would be
obtained from an unaffiliated third party for similar property in a similar locale. </FONT></P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>MISCELLANEOUS </FONT></H1>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Auditors </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
2006 Annual Report to Stockholders of the Company, including financial statements and
report thereon of Morrison, Brown, Argiz &amp; Farra, LLP (&#147;Morrison, Brown&#148;),
accompanies this Proxy Statement but is not incorporated in and is not to be deemed a part
of this Proxy Statement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s Audit Committee has selected Morrison, Brown to act as independent auditors
for the Company during the year ending June 30, 2007. The Audit Committee nevertheless
retains the discretion to select different auditors should it then deem it in the
Company&#146;s interests. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-10- </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

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<HR SIZE=5 COLOR=GRAY NOSHADE>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Representatives
of Morrison, Brown are expected to be present at the Meeting with the opportunity to make
a statement if they desire to do so and are expected to be available to respond to
appropriate questions addressed by stockholders. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
June 30, 2005, the Audit Committee dismissed BDO Seidman LLP (&#147;BDO Seidman&#148;) as
the Company&#146;s registered public accountants and retained Morrison, Brown as the
Company&#146;s new independent public accountants. BDO Seidman&#146;s reports on the
Company&#146;s financial statements for the years ended June 30, 2003 and 2004 did not
contain any adverse opinion or disclaimer of opinion and was not qualified or modified as
to uncertainty, audit scope or accounting principles. There were no disagreements with BDO
Seidman, whether or not resolved, on any matter of accounting principles or practices,
financial statements disclosure, or auditing scope or procedure<B> </B>which, if not
resolved to BDO Seidman&#146;s satisfaction, would have caused BDO Seidman to make
reference to the subject matter of the disagreement in connection with its report. No such
disagreement was discussed with the Board of Directors or any committee of the Board of
Directors of the Company. BDO Seidman did not advise the Company of the existence of any
matter described in Item 304(a)(1)(iv)(B) of SEC Regulation S-B. The Company authorized
BDO Seidman to respond fully to the inquiries of Morrison, Brown. On July 6, 2005, BDO
Seidman issued a letter to the SEC agreeing with the foregoing statements made by the
Company insofar as they related to BDO Seidman. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior
to the engagement of Morrison, Brown, neither the Company nor anyone on behalf of the
Company consulted Morrison, Brown regarding (a) either the application of accounting
principles to a specified transaction, either completed or proposed, or the type of audit
opinion that might be rendered on the financial statements of the Company, and no written
or oral advice of Morrison, Brown was provided with respect to any accounting, auditing,
or financial reporting issue or (b) any matter that was either the subject of a
disagreement or any event described in Item 304(a)(1)(iv)(B) of SEC Regulation S-B. The
Company also provided Morrison, Brown with a copy of its Report on Form 8-K with respect
to the change in registered public accountants and provided Morrison, Brown with the
opportunity to furnish the Company with a letter addressed to the SEC containing any new
information, clarification of the Company&#146;s expression of its views or the respects
in which Morrison, Brown did not agree with the disclosures made in the Report. Morrison,
Brown did not issue a letter to the SEC. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Principal Accountant
Fees and Services </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following is a summary of the fees paid by the Company to Morrison, Brown for audit
services rendered for the Company&#146;s fiscal years ended June 30, 2006 and June 30,
2005 and the fees for other services rendered that were billed by Morrison, Brown to the
Company in those periods: </FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=70%>
<TR VALIGN=Bottom>
     <TH COLSPAN="2" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Fee Category</U></FONT></TH>
     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Fiscal 2006 Fees</U></FONT></TH>
     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Fiscal 2005 Fees</U></FONT></TH></TR>
<TR VALIGN="TOP" BGCOLOR="#CCEEFF">
     <TD WIDTH="48%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Audit Fees</FONT></TD>
     <TD WIDTH="7%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="16%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$64,800</FONT></TD>
        <TD WIDTH="9%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$58,000</FONT></TD>
        <TD WIDTH="6%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Audit-related fees</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>--&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>--&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tax fees</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10,300</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>--&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>All other fees</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>--&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>--&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN="TOP" BGCOLOR="#CCEEFF">
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Total Fees</FONT></TD><TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$75,100</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$58,000</FONT></TD>
        <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Audit
Fees. </I>These fees were for services rendered by Morrison, Brown for its audit of the
Company&#146;s annual consolidated financial statements, audit of a subsidiary&#146;s
financial statements required for inclusion in a subsidiary&#146;s Uniform Franchise
Offering Circular and review of the Company&#146;s quarterly interim financial statements. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-11- </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Audit-Related
Fees.</I> Morrison, Brown did not render any audit-related services to the Company during
either fiscal 2006 or 2005. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Tax
Fees.</I>  These fees were for the preparation of the Company's federal, state and local tax
returns for fiscal 2005. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>All
Other Fees. </I>Morrison, Brown did not provide any other services to the Company during
either fiscal 2006 or 2005. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
connection with the standards for independence of a company&#146;s independent public
auditors, the Audit Committee has considered whether the provision of such services is
compatible with maintaining the independence of Morrison, Brown. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Pre-Approval of Audit
and Non-Audit Services </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
is the policy of the Audit Committee that all audit, audit-related, tax and other
permissible non-audit services provided by the Company&#146;s independent auditor be
pre-approved. It is expected that pre-approval will be for periods up to one year and be
set forth in an engagement letter approved by the Audit Committee of the Board that is
detailed as to the particular services or category of services to be provided and subject
to a specific budget. The policy also requires additional approval of any engagements that
was previously approved but is anticipated to exceed the pre-approved fee budget level.
The policy permits the Chair of the Audit Committee to pre-approve the Company&#146;s
principal independent auditor&#146;s services where the Company deems it necessary or
advisable that such services commence prior to the next regularly scheduled meeting of the
Audit Committee provided that the Audit Committee Chair is required to report to the full
Audit Committee on any pre-approval determinations made in this manner. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Section 16(a) Beneficial
Ownership Reporting Compliance </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Large Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
16(a) of the Securities Exchange Act of 1934 requires the Company&#146;s executive
officers and directors, and persons who beneficially own more than 10% of the
Company&#146;s Common Stock, to file initial reports of ownership, and reports of changes
of ownership, of the Company&#146;s equity securities with the SEC and furnish copies of
those reports to the Company. Based solely on a review of the copies of the reports
furnished to the Company to date and written representations that no other reports were
required, the Company believes that all reports required to be filed by such persons with
respect to the Company&#146;s fiscal year ended June 30, 2006 were timely filed, except
that William K. Steiner filed a report of one charitable gift late and Stuart Wagner filed
a report of the exercise of one stock option late. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Stockholder Proposals </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;From
time to time stockholders may present proposals for consideration at a meeting of
stockholders which may be proper subjects for inclusion in the Company&#146;s proxy
statement and form of proxy relating to that meeting. Stockholder proposals intended to be
included in the Company&#146;s proxy statement and form of proxy relating to the
Company&#146;s 2007 Annual Meeting of Stockholders presently scheduled to be held in
November 2007 must be received by the Company at its principal executive offices, 290 N.E.
68th Street, Miami, Florida 33138, by June 20,<B> </B>2007. Any such proposals, as well as
any questions relating thereto, should be directed to the President of the Company. As to
any proposals intended to be presented by a stockholder without inclusion in the
Company&#146;s proxy statement and form of proxy for the Company&#146;s next Annual
Meeting of Stockholders, the proxies named in the Company&#146;s form of proxy for that
meeting will be entitled to exercise discretionary authority on that proposal unless the
Company receives notice of the matter on or before September 3, 2007. However, even if
such notice is timely received, such proxies may </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-12- </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

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<HR SIZE=5 COLOR=GRAY NOSHADE>



<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>nevertheless be entitled to exercise
discretionary authority on that matter to the extent permitted by SEC regulations. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Additional Information </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Large Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
cost of solicitation of Proxies, including the cost of reimbursing banks and brokers for
forwarding proxy soliciting material to their principals, will be borne by the Company.
Proxies may be solicited without extra compensation by certain officers and regular
employees of the Company by mail and, if determined to be necessary, by telephone,
telecopy, telegraph or personal interviews. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Other Matters </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Large Indent" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors does not intend to bring before the Meeting any matters other than
those specifically described above and knows of no matters other than the foregoing to
come before the Meeting. If any other matters or motions properly come before the Meeting,
it is the intention of the persons named in the accompanying form of Proxy to vote such
Proxy in accordance with their judgment on such matters or motions, including any matters
dealing with the conduct of the Meeting. </FONT></P>


<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"></FONT></TD>
     <TD WIDTH="50%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">By Order of the Board of Directors,<BR>
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lloyd Frank,<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;Secretary<BR>
</FONT></TD></TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Head Left"  -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dated: October 18, 2006 </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center" FSL="Default" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-13- </FONT></P>

<DIV STYLE="page-break-after:always"></DIV>

<!-- MARKER PAGE="sheet: 15; page: 15" -->
<HR SIZE=5 COLOR=GRAY NOSHADE>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="3">REVOCABLE PROXY<BR>
DRYCLEAN USA, Inc. </FONT></H1>


<TABLE WIDTH="100%" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="BOTTOM">
     <TD WIDTH="13%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><IMG SRC="ballotx.jpg" HEIGHT="30" WIDTH="30"></FONT></TD>
     <TD WIDTH="25%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>PLEASE MARK VOTES<BR>
AS IN THIS EXAMPLE</B></FONT></TD>
     <TD WIDTH="1%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="13%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="18%" ALIGN="LEFT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Election of Directors:</FONT></TD>
     <TD WIDTH="10%" ALIGN="CENTER" VALIGN="BOTTOM"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>For</B></FONT></TD>
     <TD WIDTH="10%" ALIGN="CENTER" VALIGN="BOTTOM"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Withhold</B></FONT></TD>
     <TD WIDTH="10%" ALIGN="CENTER" VALIGN="BOTTOM"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>For All Except</B></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="3" ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B><BR>PROXY FOR ANNUAL MEETING OF STOCKHOLDERS<BR>
November 10, 2006</B></FONT></TD>
     <TD colspan="2" ALIGN="LEFT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><IMG SRC="ballot.jpg" HEIGHT="20" WIDTH="20"></FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><IMG SRC="ballot.jpg" HEIGHT="20" WIDTH="20"></FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><IMG SRC="ballot.jpg" HEIGHT="20" WIDTH="20"></FONT></TD></TR>
<TR VALIGN="TOP">
     <TD COLSPAN="3" ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="1"><B><BR>This proxy is solicited on behalf of the Board of Directors</B></FONT></TD>
     <TD colspan="2" ALIGN="LEFT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"></FONT></TD></TR>
</TABLE>
<BR>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="42%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="1">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned hereby appoints Michael S. Steiner,
Venerando J.
Indelicato and Lloyd Frank, and each of them, proxies,  with full power of
substitution,  to vote at the Annual Meeting of  Stockholders  of DRYCLEAN USA, Inc. to be held on Friday,  November 10, 2006 (including any
adjournments  or  postponements  thereof)  according to the number of votes the  undersigned  might cast and with all powers the undersigned
would possess if personally  present,  upon the matter specified hereon, as more fully described in the accompanying  Notice of such meeting
and Proxy Statement,  receipt of which is hereby acknowledged,  and with discretionary power upon such other business as may come before the
meeting, hereby revoking any proxies heretofore given.<BR><BR>
Please be sure to sign and date&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Date</U><BR>
this Proxy in the box below<BR>
_____________________________________________________________
<BR><BR><BR><BR>
_____________________________________________________________<BR>
Stockholder sign above&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Co-holder (if any) sign above

</FONT></TD>
     <TD WIDTH="10%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="1">&nbsp;</FONT></TD>
     <TD WIDTH="50%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>MICHAEL S. STEINER, WILLIAM K. STEINER,<BR>
VENERANDO J. INDELICATO, DAVID BLYER,<BR>
LLOYD FRANK, ALAN M. GRUNSPAN AND<BR>
STUART WAGNER<BR><BR>
INSTRUCTION: To withhold authority to vote for any individual nominee, mark "For All Except" and write that nominee's name in the space
provided below.<BR>____________________________________________________________<BR><BR>
Each properly executed proxy will be voted in accordance with the specifications made above. If no specifications are made, the shares
represented by this proxy will be voted "FOR" all listed nominees.</B><BR><BR>
Please sign your name or names exactly as set forth hereon. When stock is in the name of more than one person, each such person should
sign the proxy. When signing as attorney, executor, administrator, trustee or guardian, please indicate the capacity in which you are
acting. Proxies executed by corporations should be signed by a duly authorized officer.<BR><BR>
<B>Stockholders who desire to have stock voted at the meeting are requested to fill in, date, sign and return this proxy. No postage is
required if returned in the enclosed envelope and mailed in the United States.</B> </FONT>
</TD></TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Head Minor Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="3"> Detach above card,
sign, date and mail in postage paid envelope provided.<BR>
DRYCLEAN USA, Inc. </FONT> </H1>


<!-- MARKER FORMAT-SHEET="Head Major Center Bold" FSL="Default" -->
<H1 ALIGN=CENTER><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="3">____________________________________________________________<BR>
<BR>PLEASE ACT PROMPTLY<BR>
SIGN, DATE &amp; MAIL YOUR PROXY CARD TODAY<BR>
____________________________________________________________</FONT> </H1>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>IF YOUR ADDRESS HAS CHANGED, PLEASE
CORRECT THE ADDRESS IN THE SPACE PROVIDED BELOW AND RETURN THIS PORTION WITH THE PROXY IN
THE ENVELOPE PROVIDED.</B></FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Default" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
____________________________________________<BR>
____________________________________________<BR>
____________________________________________<BR></FONT></P>


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