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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000910680-07-001034.txt : 20071113
<SEC-HEADER>0000910680-07-001034.hdr.sgml : 20071112
<ACCEPTANCE-DATETIME>20071113172654
ACCESSION NUMBER:		0000910680-07-001034
CONFORMED SUBMISSION TYPE:	10QSB
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20070930
FILED AS OF DATE:		20071113
DATE AS OF CHANGE:		20071113

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:		10QSB
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14757
		FILM NUMBER:		071239672

	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>10QSB
<SEQUENCE>1
<FILENAME>f10qsb093007.htm
<DESCRIPTION>SEPTEMBER 30, 2007
<TEXT>
<html>
    <head>
        <title></title>
    </head>

    <body style="FONT-SIZE: 11pt; FONT-FAMILY: 'TIMES NEW ROMAN'">
        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        &nbsp;</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
        SECURITIES AND EXCHANGE COMMISSION</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
        Washington, D.C. 20549</p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
        FORM 10-QSB</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -36px" align="left">
        <font face="Wingdings" size="+0">x</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;QUARTERLY REPORT
        UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934<br>
        For the quarterly period ended September 30, 2007</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in" align="left">OR</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -36px" align="left">
        <font face="Wingdings" size="+0">o</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;TRANSITION REPORT
        PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934<br>
        For the transition period from to</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in" align="left">Commission
        file number 0-9040</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
        DRYCLEAN USA, Inc.<br>
        (Exact name of small business issuer as specified in its charter)</p>

        <table cellspacing="0" cellpadding="0" width="600" align="center" border="0">
            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="294">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    DELAWARE</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="294">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    11-2014231</p>
                </td>
            </tr>

            <tr height="17">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="294">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    (State of other jurisdiction of</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="294">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    (I.R.S. Employer</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="294">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    incorporation or organization)</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="294">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    Identification No.)</p>
                </td>
            </tr>
        </table>
        <br>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
        290 N.E. 68 Street, Miami, Florida 33138<br>
        (Address of principal executive offices)</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
        (305) 754-4551<br>
        (Issuer&rsquo;s telephone number)</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
        Not Applicable<br>
        (Former name)</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        Check whether the issuer: (1) filed all reports required to be filed by Section 13 or 15(d)
        of the Exchange Act during the past 12 months (or for such shorter period that the
        registrant was required to file such reports), and (2) has been subject to such filing
        requirements for the past 90
        days.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<a name="OLE_LINK1">Yes&nbsp;</a>
        <font face="Wingdings" size="+0">x</font>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2
        of the<br>
        Exchange Act).&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes
        <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
        <font face="Wingdings" size="+0">x</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        State the number of shares outstanding of each of the issuer&rsquo;s classes of common
        equity as of the latest practicable date: Common Stock, $.025 par value per share &ndash;
        7,034,307 shares outstanding as of November 9, 2006.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 36pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        Transitional Small Business Disclosure Format:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Yes
        <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
        <font face="Wingdings" size="+0">x</font></p>
        <!-- NEXT PAGE SECTION BREAK  --><!-- EEDocs PBStart-->
        <hr align="center" width="100%" noshade size="2">

        <p style="PAGE-BREAK-AFTER: always"></p>
        <!-- EEDocs PBEnd-->

        <p></p>

        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
        <b>PART I. FINANCIAL INFORMATION</b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <b>Item 1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements</b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        DRYCLEAN USA, Inc. and Subsidiaries</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <b>Condensed Consolidated Statements of Income</b></p>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: black 0.5pt solid; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: black 0.5pt solid; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    For the three months ended&nbsp;<br>
                    September 30,</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0" height="20">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="167">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 200</b><b>7</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="158">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2006</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="647">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="167">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    (Unaudited)</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="158">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Unaudited)</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0" height="16">
                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Net sales</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="167">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in" align="right">
                    <b>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>
                    <b>4,568,051&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="158">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in" align="right">
                    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,789,740&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="647">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: -22px" align="left">
                    Development fees, franchise and license fees,</p>

                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: -22px" align="left">
                    &nbsp;&nbsp;&nbsp;&nbsp; commissions and other income</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="167">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in" align="right">
                    <b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1</b><b>68,593&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="158">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    122,458&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 49px" align="left">
                    Total revenues</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="167">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in" align="right">
                    <b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>
                    <b>4,736,644&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="158">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    5,912,198&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="167">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="158">
                &nbsp;</td>
            </tr>

            <tr bgcolor="#c0c0c0" height="17">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Cost of sales</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="167">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>3,462,795&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="158">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    4,499,939&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Selling, general and administrative expenses</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="167">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>1,1</b><b>43,5</b><b>16&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="158">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    1,138,629&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="647">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Research and development expenses</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="167">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>2,640&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="158">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    10,525&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="647">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="167">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>4,608,951&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="158">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    5,649,093&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Operating income</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="167">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>127,693&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="158">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    263,105&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Interest income</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="167">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>49,716&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="158">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    38,152 &nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="647">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Interest expense</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="167">
                    <p align="right"><strong>(837)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</strong></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="158">
                    <p align="right">-&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Earnings before income taxes</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="167">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>176,572&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="158">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    301,257 &nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Provision for income taxes</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="167">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>63,528&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="158">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    114,478&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: black 0.5pt solid; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="top" width="647">
                    <p style="MARGIN-TOP: 3pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 49px" align="left">
                    Net earnings</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: black 0.5pt solid; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="167">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in" align="right">
                    <b>$</b><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</b>
                    <b>1</b><b>13,044&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: black 0.5pt solid; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="top" width="158">
                    <p style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in" align="right">
                    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;186,779&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0" height="21">
                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="167">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="158">
                &nbsp;</td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="top" width="647">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Basic and diluted earnings per share</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="top" width="167">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 8px" align="right">
                    <b>$</b><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;</b>
                    <b>.0</b><b>2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="top" width="158">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in" align="right">
                    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.03&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="167">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="158">
                &nbsp;</td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: -22px" align="left">
                    Weighted average number of shares:<br>
                    of common stock outstanding</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="167">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="158">
                &nbsp;</td>
            </tr>

            <tr bgcolor="#c0c0c0" height="18">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 49px" align="left">
                    Basic</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="167">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>7,</b><b>03</b><b>4</b><b>,307&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="158">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    7,034,450&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="top" width="647">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 49px" align="left">
                    Diluted</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="top" width="167">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>7,</b><b>03</b><b>7,</b><b>585&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="top" width="158">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    7,037,493&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>
        </table>

        <p></p>

        <p><!-- PAGE BREAK  --><!-- EEDocs PBStart--></p>

        <p align="center">2</p>

        <p>&nbsp;</p>

        <p></p>
        <hr align="center" width="100%" noshade size="2">
        <br>
        <br>

        <p style="PAGE-BREAK-AFTER: always"></p>
        <!-- EEDocs PBEnd-->

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        DRYCLEAN USA, Inc. and Subsidiaries</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <b>Condensed Consolidated Balance Sheets</b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <b>ASSETS</b></p>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: black 0.3pt solid; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="689">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: black 0.3pt solid; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="146">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>

                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b>&nbsp;&nbsp;&nbsp;&nbsp; September 30,</b></p>

                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b>&nbsp;&nbsp;&nbsp;&nbsp; 200</b><b>7</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: black 0.3pt solid; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="137">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    June 30,&nbsp;<br>
                    2007</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="689">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="146">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b>&nbsp;&nbsp; &nbsp;(Unaudited)</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="137">
                &nbsp;</td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: medium none; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="689">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Current Assets</p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: medium none; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="146">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: medium none; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="137">
                &nbsp;</td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="689">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -13px" align="left">
                    Cash and cash equivalents</p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="146">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in" align="right">
                    <b>$</b><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>
                    <b>3,053,935&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="137">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,296,415&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="689">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -13px" align="left">
                    Accounts and trade notes<br>
                    receivable, net</p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="146">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>2,099,258&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="137">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    1,454,987&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="689">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -13px" align="left">
                    Inventories</p>

                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -13px" align="left">
                    Refundable income taxes</p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="146">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>3,</b><b>572,547&nbsp;&nbsp;&nbsp;&nbsp;</b></p>

                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>23,095&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="137">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    2,912,524&nbsp;&nbsp;&nbsp;&nbsp;</p>

                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    64,131&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="689">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -13px" align="left">
                    Deferred income taxes</p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="146">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>93,407&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="137">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    99,140&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="689">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -13px" align="left">
                    Other current assets</p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="146">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>157,424&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="137">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    98,353&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="689">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 45px" align="left">
                    Total current assets</p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="146">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>8,</b><b>999,666&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="137">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    8,925,550&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="689">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="146">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="137">
                &nbsp;</td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="689">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Equipment and improvements, net</p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="146">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>2</b><b>52,065&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="137">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    261,872&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="689">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.2in; TEXT-INDENT: -13px" align="left">
                    Franchise, trademarks and other<br>
                    intangible assets, net</p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="146">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>2</b><b>31,591&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="137">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    246,812&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="689">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Deferred income taxes</p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="146">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>11,331&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="137">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    9,340&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: medium none; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="689">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: medium none; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="146">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: medium none; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="137">
                &nbsp;</td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="top" width="689">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="top" width="146">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in" align="right">
                    <b>$</b><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>
                    <b>9,494,653&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="top" width="137">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,443,574&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: medium none; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="689">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: medium none; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="146">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: medium none; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="137">
                &nbsp;</td>
            </tr>
        </table>

        <p></p>

        <p><!-- PAGE BREAK  --><!-- EEDocs PBStart--></p>

        <p align="center">3</p>

        <p></p>
        <hr align="center" width="100%" noshade size="2">
        <br>
        <br>

        <p style="PAGE-BREAK-AFTER: always"></p>
        <!-- EEDocs PBEnd-->

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        DRYCLEAN USA, Inc. and Subsidiaries</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <b>Condensed Consolidated Balance Sheets</b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <b>LIABILITIES AND<br>
        SHAREHOLDERS&rsquo; EQUITY</b></p>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr height="33">
                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: black 0.3pt solid; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: black 0.3pt solid; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="184">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b>September 30,</b></p>

                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b>200</b><b>7</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: black 0.3pt solid; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="137">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    June 30,<br>
                    2007</p>
                </td>

                <td width="3">
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="647">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="184">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b>(Unaudited)</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="137">
                &nbsp;</td>

                <td width="3">
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Current Liabilities</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="184">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                &nbsp;</td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -13px" align="left">
                    Accounts payable and accrued expenses</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="184">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in" align="right">
                    <b>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>
                    <b>1,</b><b>277,112&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in" align="right">
                    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,076,300&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -13px" align="left">
                    Accrued employee expenses</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="184">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>288,389&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    605,383&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -13px" align="left">
                    Unearned income</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="184">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>103,469&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    124,162&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -13px" align="left">
                    Customer deposits</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="184">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>1,440,533&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    1,365,623&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="647">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -13px" align="left">
                    Dividends payable</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="184">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>28</b><b>1,</b><b>372&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="184">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                &nbsp;</td>
            </tr>

            <tr bgcolor="#c0c0c0" height="19">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="647">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 45px" align="left">
                    Total current liabilities</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="184">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b><font style="FONT-FAMILY: 'TIMES NEW ROMAN BOLD'">3,</font></b><b><font style="FONT-FAMILY: 'TIMES NEW ROMAN BOLD'">
                    3</font></b><b><font style="FONT-FAMILY: 'TIMES NEW ROMAN BOLD'">90,875&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    3,171,468&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="184">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                &nbsp;</td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="647">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Total liabilities</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="184">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b><font style="FONT-FAMILY: 'TIMES NEW ROMAN BOLD'">3,</font></b><b><font style="FONT-FAMILY: 'TIMES NEW ROMAN BOLD'">
                    3</font></b><b><font style="FONT-FAMILY: 'TIMES NEW ROMAN BOLD'">90,875&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    3,171,468&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="184">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                &nbsp;</td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Shareholders&rsquo; Equity</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="184">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                &nbsp;</td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                    <p style="FONT-SIZE: 11pt; MARGIN: 0pt 0.6in 0pt 0.5in; TEXT-INDENT: -12px" align="left">
                    Preferred Stock, $1.00 par value: Authorized shares &ndash; 200,000; none
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;issued and outstanding</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="184">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>-&nbsp;&nbsp;&nbsp;
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                    <p style="FONT-SIZE: 11pt; MARGIN: 0pt 0.3in 0pt 0.5in; TEXT-INDENT: -12px" align="left">
                    Common stock, $0.025 par value:<br>
                    Authorized shares &ndash; 15,000,000; 7,065,500, shares issued and outstanding,
                    including shares held in treasury</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="184">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>176,</b><b>638&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    &nbsp; 176,638&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -13px" align="left">
                    Additional paid-in capital</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="184">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>2,0</b><b>95,069&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    2,095,069&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -13px" align="left">
                    Retained earnings</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="184">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b><font style="FONT-FAMILY: 'TIMES NEW ROMAN BOLD'">3,835,384&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    4,003,712&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="647">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -13px" align="left">
                    Treasury stock, 31,193 shares at cost</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="bottom" width="184">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>(3,313</b><b>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="bottom" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    (3,313)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="184">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                &nbsp;</td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="647">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Total shareholders&rsquo; equity</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="184">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b><font style="FONT-FAMILY: 'TIMES NEW ROMAN BOLD'">6,</font></b><b><font style="FONT-FAMILY: 'TIMES NEW ROMAN BOLD'">
                    103,778&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    6,272,106&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="184">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                &nbsp;</td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="top" width="647">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="top" width="184">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in" align="right">
                    <b>$</b><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>
                    <b>9,494,653&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in" align="right">
                    $&nbsp;&nbsp; &nbsp;9,443,574&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="647">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="184">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                &nbsp;</td>
            </tr>
        </table>

        <p></p>

        <p><!-- PAGE BREAK  --><!-- EEDocs PBStart--></p>

        <p align="center">4</p>

        <p></p>
        <hr align="center" width="100%" noshade size="2">

        <p style="PAGE-BREAK-AFTER: always"></p>
        <!-- EEDocs PBEnd-->

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        DRYCLEAN USA, Inc. and Subsidiaries</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <b>Condensed Consolidated Statements of Cash Flows</b></p>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr height="40">
                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: black 0.3pt solid; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="693">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: black 0.3pt solid; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    For the three months ended<br>
                    September 30,</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="693">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="148">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b>200</b><b>7</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="129">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    2006</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="693">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="148">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b>(Unaudited)</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="129">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    (Unaudited)</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="693">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Operating activities:</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="148">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="129">
                &nbsp;</td>
            </tr>

            <tr height="17">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="693">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: -9px" align="left">
                    Net earnings</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="148">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in" align="right">
                    <b>$</b><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;</b>
                    <b>1</b><b>13,044</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="129">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in" align="right">
                    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;186,779</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="693">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: -9px" align="left">
                    Adjustments to reconcile net earnings to net cash used by operating
                    activities:</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="148">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="129">
                &nbsp;</td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="693">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.4in; TEXT-INDENT: -9px" align="left">
                    Depreciation and amortization</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="148">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>3</b><b>4,565</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="129">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    30,209</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0" height="37">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="693">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.4in; TEXT-INDENT: -9px" align="left">
                    Bad debt expense</p>

                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.4in; TEXT-INDENT: -9px" align="left">
                    Provision for deferred income taxes</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="148">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>333</b></p>

                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>3,742</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="129">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    1,117</p>

                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    -</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="693">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.4in; TEXT-INDENT: -9px" align="left">
                    (Increase) decrease in operating assets:</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="148">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="129">
                &nbsp;</td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="693">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.7in; TEXT-INDENT: -9px" align="left">
                    Accounts, trade notes and lease receivables</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="148">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(644,604)</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="129">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    (94,946)</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="693">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.7in; TEXT-INDENT: -9px" align="left">
                    Inventories</p>

                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.7in; TEXT-INDENT: -9px" align="left">
                    Refundable income taxes</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="148">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>(660,023</b><b>)</b></p>

                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>41,036</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="129">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    (105,940)</p>

                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    &nbsp;-&nbsp;</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="693">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.7in; TEXT-INDENT: -9px" align="left">
                    Other current assets</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="148">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>(</b><b>59</b><b>,071</b><b>)</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="129">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    (46,534)</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="693">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 22px" align="left">
                    Increase (decrease) in operating liabilities:</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="148">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="129">
                &nbsp;</td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="693">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.8in; TEXT-INDENT: -13px" align="left">
                    Accounts payable and accrued expenses</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="148">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>200,812</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="129">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    563,011</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="693">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.8in; TEXT-INDENT: -13px" align="left">
                    Customer deposits and other</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="148">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>74,910</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="129">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    (425,815)</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="693">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.8in; TEXT-INDENT: -13px" align="left">
                    Income taxes payable</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="148">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>-</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="129">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    (46,989)</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="693">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.8in; TEXT-INDENT: -13px" align="left">
                    Unearned income</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="148">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>(20,69</b><b>3</b><b>)</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="129">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    (20,693)</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="693">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.8in; TEXT-INDENT: -13px" align="left">
                    Accrued employee expenses</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="148">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>(316,994</b><b>)</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="129">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    &nbsp;(259,679)</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="693">
                    <p style="MARGIN-TOP: 6pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Net cash used by operating activities</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="148">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>(1,232,943</b><b>)</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="129">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    (219,480)</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="693">
                    <p style="MARGIN-TOP: 6pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Investing activities:</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="148">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="129">
                &nbsp;</td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="693">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 9px" align="left">
                    Capital expenditures, net</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="148">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>(</b><b>9,537</b><b>)</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="129">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    (52,516)</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="693">
                    <p style="MARGIN-TOP: 6pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Net cash provided (used) by financing activities</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="148">
                    <p style="MARGIN-TOP: 6pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>-</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="129">
                    <p style="MARGIN-TOP: 6pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    &nbsp;-</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="693">
                    <p style="MARGIN-TOP: 6pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Net decrease in cash and cash equivalents</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="148">
                    <p style="MARGIN-TOP: 6pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>(1,242,480)</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="129">
                    <p style="MARGIN-TOP: 6pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    &nbsp;(271,996)</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="693">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Cash and cash equivalents at beginning of period</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="148">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>4,296,415</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="129">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    3,106,703</p>
                </td>
            </tr>

            <tr height="10">
                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="693">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="148">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="129">
                &nbsp;</td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="top" width="693">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Cash and cash equivalents at end of period</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="top" width="148">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in" align="right">
                    <b>$</b><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    &nbsp;&nbsp;&nbsp;3,053,935</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="top" width="129">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in" align="right">
                    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,834,707</p>
                </td>
            </tr>

            <tr height="8">
                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="693">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="148">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="129">
                &nbsp;</td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="693">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in; TEXT-INDENT: -9px" align="left">
                    Supplemental disclosures of cash flow<br>
                    information</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="148">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="129">
                &nbsp;</td>
            </tr>

            <tr height="21">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="693">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 22px" align="left">
                    Cash paid during the period for:</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="148">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="129">
                &nbsp;</td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="693">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.8in; TEXT-INDENT: -13px" align="left">
                    Income taxes</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="148">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in" align="right">
                    <b>$</b><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    &nbsp;125,000</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="129">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in" align="right">
                    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;161,467</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="693">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 22px" align="left">
                    Dividends declared but not yet paid</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="148">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in" align="right">
                    <b>$</b><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    &nbsp;&nbsp;&nbsp;281,372</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="129">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 281,378</p>
                </td>
            </tr>
        </table>

        <p></p>

        <p><!-- PAGE BREAK  --><!-- EEDocs PBStart--></p>

        <p align="center">5</p>
        <hr align="center" width="100%" noshade size="2">
        <br>
        <br>
        <br>
        <br>

        <p style="PAGE-BREAK-AFTER: always"></p>
        <!-- EEDocs PBEnd-->

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
        <b>DRYCLEAN USA, Inc. and Subsidiaries</b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
        <u><b>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</b></u></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <b>Note (1) &ndash; General:</b> The accompanying unaudited condensed consolidated
        financial statements have been prepared in accordance with accounting principles generally
        accepted in the United States of America for interim financial statements and the
        instructions to Form 10-QSB related to interim period financial statements. Accordingly,
        these condensed consolidated financial statements do not include certain information and
        footnotes required by accounting principles generally accepted in the United States for
        complete financial statements. However, the accompanying unaudited condensed consolidated
        financial statements contain all adjustments (consisting only of normal recurring accruals)
        which, in the opinion of management, are necessary in order to make the financial
        statements not misleading. The results of operations for interim periods are not
        necessarily indicative of the results to be expected for the full year. For further
        information, refer to the Company&rsquo;s financial statements and footnotes thereto
        included in the Company&rsquo;s Annual Report on Form 10-KSB for the year ended June 30,
        2007. The June&nbsp;30, 2007 balance sheet information contained herein was derived from
        the audited consolidated financial statements included in the Company&rsquo;s Annual Report
        on Form 10-KSB as of that date.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <b>Note (2) &ndash; Earnings Per Share:</b> Basic and diluted earnings per share for the
        three months ended September 30, 2007 and 2006 are computed as follows:</p>

        <table cellspacing="0" cellpadding="0" width="600" align="center" border="0">
            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="284">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For the three months ended<br>
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;September 30,</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="284">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="158">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2007</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="149">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    2006</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="284">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <u>Basic</u></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="158">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="149">
                &nbsp;</td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="284">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Net earnings</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="158">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    $&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;
                    &nbsp;&nbsp;113,044&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="149">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    $&nbsp;&nbsp;&nbsp;
                    &nbsp;&nbsp;&nbsp;&nbsp;186,779&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="284">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in; TEXT-INDENT: -9px" align="left">
                    Weighted average shares</p>

                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in; TEXT-INDENT: -9px" align="left">
                    &nbsp;&nbsp;&nbsp;&nbsp; outstanding</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="158">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    7,034,307&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="149">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    7,034,450&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="284">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Basic earnings per share</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="158">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    $ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    &nbsp;&nbsp;&nbsp;&nbsp;.02&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="149">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    &nbsp;&nbsp;&nbsp;.03&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="284">
                    <p style="MARGIN-TOP: 6pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <u>Diluted</u></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="158">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="149">
                &nbsp;</td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="284">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Net earnings</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="158">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    $113,044&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="149">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    $186,779&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="284">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in; TEXT-INDENT: -9px" align="left">
                    Weighted average shares outstanding</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="158">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    7,034,307&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="149">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    7,034,450&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0" height="57">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="284">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in; TEXT-INDENT: -9px" align="left">
                    Plus incremental shares from assumed exercise of stock options</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="middle" width="158">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    3,278&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="middle" width="149">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    3,043&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="284">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in; TEXT-INDENT: -9px" align="left">
                    Diluted weighted average common shares</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="158">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    7,037,585&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="149">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    7,037,493&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="top" width="284">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in; TEXT-INDENT: -9px" align="left">
                    Diluted earnings per share</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="158">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="149">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    &nbsp;&nbsp;.03&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>
        </table>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        At September 30, 2007 and 2006, there were outstanding options to purchase 10,000 shares of
        the Company&rsquo;s common stock which were excluded in the computation of earnings per
        share because the exercise price of the options was at least the average market price of
        the Company&rsquo;s common stock for the period.</p>

        <p><!-- PAGE BREAK  --><!-- EEDocs PBStart--></p>

        <p align="center">6</p>

        <p></p>
        <hr align="center" width="100%" noshade size="2">
        <br>
        <br>

        <p style="PAGE-BREAK-AFTER: always"></p>
        <!-- EEDocs PBEnd-->

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <b>Note (3) &ndash; Revolving Credit Line:</b> On October 22, 2007, the Company received an
        extension until October 30, 2008 of its existing $2,250,000 revolving line of credit
        facility. The Company&rsquo;s obligations under the facility are guaranteed by the
        Company&rsquo;s subsidiaries and collateralized by substantially all of the Company&rsquo;s
        and its subsidiaries&rsquo; assets. No amounts were outstanding under this facility at
        September 30, 2007 or June 30, 2007.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <b>Note (4)</b> <b>-</b> <b>Stock-Based Compensation Plans</b><b>:</b> The Company&rsquo;s
        2000 Stock Option Plan and 1994 Non-Employee Director Stock Option Plan are the
        Company&rsquo;s only stock-based compensation plans. The 2000 Stock Option Plan authorizes
        the grant (until May 2, 2010) of options to purchase up to 500,000 shares of the
        Company&rsquo;s common stock to employees, directors and consultants, of which no options
        were outstanding on September 30, 2007. The 1994 Non-Employee Director Stock Option Plan
        terminated as to future grants on August 23, 2004, but options to purchase 20,000 shares
        remain outstanding thereunder.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        Effective January 1, 2006, the Company adopted SFAS No. 123 (revised), &ldquo;Share-Based
        Payment&rdquo; (&ldquo;SFAS 123(R)&rdquo;), utilizing the modified prospective approach.
        Prior to the adoption of SFAS 123(R), the Company accounted for stock option grants under
        the recognition and measurement principles of APB Opinion No. 25, &ldquo;Accounting for
        Stock Issued to Employees,&rdquo; and related interpretations, and, accordingly, recognized
        no compensation expense for stock option grants in net income.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        Under the modified prospective approach, SFAS 123(R) applies to new grants and to grants
        that were outstanding on December 31, 2005 to the extent not yet vested. Since no new
        options were granted during the quarters ended September 30, 2007 and 2006 and all
        outstanding options were fully vested at December 31, 2005, no compensation cost for
        share-based payments was recognized under SFAS 123(R) during the quarters ended September
        30, 2007 and 2006. Prior periods are not required to be restated to reflect the impact of
        adopting the new standard.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <b>Note (5) - Cash Dividends</b><b>:</b> The following table sets forth information
        concerning the cash dividends declared by the Company&rsquo;s Board of Directors during the
        periods covered by this Report:</p>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="149">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Declaration</p>

                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <u>Date</u></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="133">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Payment</p>

                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <u>Date</u></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="121">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Record</p>

                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <u>Date</u></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="86">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Per Share</p>

                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <u>Amount</u></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="91">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Total</p>

                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <u>Amount</u></p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="149">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    September 25, 2007</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="133">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    November 1, 2007</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="121">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    October 12, 2007</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="86">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    $.04</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="91">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    $281,372</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="149">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    March 29, 2007</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="133">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    May 1, 2007</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="121">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    April 13, 2007</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="86">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    $.04</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="91">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    $281,372</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="149">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    September 26, 2006</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="133">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    November 1, 2006</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="121">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    October 13, 2006</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="86">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    $.04</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="91">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    $281,378</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="149">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    March 31, 2006</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="133">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    May 1, 2006</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="121">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    April 14, 2006</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="86">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    $.04</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="91">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    $281,378</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="149">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    September 23, 2005</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="133">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    November 1, 2005</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="121">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    October 14, 2005</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="86">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    $.04</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="91">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    $280,978</p>
                </td>
            </tr>
        </table>

        <p></p>

        <p><!-- PAGE BREAK  --><!-- EEDocs PBStart--></p>

        <p align="center">7</p>

        <p></p>
        <hr align="center" width="100%" noshade size="2">
        <br>
        <br>

        <p style="PAGE-BREAK-AFTER: always"></p>
        <!-- EEDocs PBEnd-->

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <b>Note (6) Segment Information</b>: The Company&rsquo;s reportable segments are strategic
        businesses that offer different products and services. They are managed separately because
        each business requires different marketing strategies. The Company primarily evaluates the
        operating performance of its segments based on the categories noted in the table below. The
        Company has no sales between segments.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        Financial information for the Company&rsquo;s business segments is as follows:</p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="690">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" colspan="3">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    For the three months ended<br>
                    September 30,</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0" height="20">
                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: medium none; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="690">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: medium none; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b>200</b><b>7</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: medium none; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="134">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    2006</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="690">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b>(Unaudited)</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="134">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b>(</b>Unaudited)</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0" height="19">
                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: medium none; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="690">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Revenues:</p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: medium none; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: medium none; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="134">
                &nbsp;</td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="690">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: -9px" align="left">
                    Commercial and industrial laundry and dry cleaning equipment</p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>$</b><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>
                    <b>4,659,934&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="134">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;5,860,490</p>
                </td>
            </tr>

            <tr style="HEIGHT: 14.4pt" bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="690">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: -9px" align="left">
                    License and franchise operations</p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>76,710&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="134">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    51,708</p>
                </td>
            </tr>

            <tr style="HEIGHT: 13pt">
                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: medium none; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="690">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Total revenues</p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: medium none; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>$</b><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>
                    <b>4,736,644&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: medium none; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="134">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5,912,198</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: medium none; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="690">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: medium none; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: medium none; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="134">
                &nbsp;</td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="690">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Operating income (loss):</p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="134">
                &nbsp;</td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="690">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: -9px" align="left">
                    Commercial and industrial laundry and dry cleaning equipment</p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>$</b><b>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</b>
                    <b>162,987&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="134">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    $ 307,644</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="690">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: -9px" align="left">
                    License and franchise operations</p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>53,302&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="134">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    35,638</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="690">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: -9px" align="left">
                    Corporate</p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>(</b><b>88,596</b><b>)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="134">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    (80,177)</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: medium none; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="690">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Total operating income</p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: medium none; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>$&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;</b>
                    <b>127,693&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: medium none; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="134">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 263,105</p>
                </td>
            </tr>

            <tr style="HEIGHT: 23.4pt" bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: medium none; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="690">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: medium none; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.08in; BORDER-TOP: medium none; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="134">
                &nbsp;</td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="690">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b>September 30,</b><br>
                    <b>200</b><b>7</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="134">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    June 30,<br>
                    2007</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="690">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    <b>(Unaudited)</b></p>
                </td>

                <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="134">
                &nbsp;</td>
            </tr>

            <tr>
                <td style="BORDER-TOP: medium none" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Identifiable assets:</p>
                </td>

                <td style="BORDER-TOP: medium none" valign="top" width="219">&nbsp;</td>

                <td style="BORDER-TOP: medium none" valign="top" width="134">&nbsp;</td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: -9px" align="left">
                    Commercial and industrial laundry and dry cleaning equipment</p>
                </td>

                <td valign="top" width="219">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>$</b><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>
                    <b>9,157,600&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td valign="top" width="134">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    $ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8,712,151</p>
                </td>
            </tr>

            <tr>
                <td valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: -9px" align="left">
                    License and franchise operations</p>
                </td>

                <td valign="top" width="219">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>202,820&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td valign="top" width="134">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    554,518</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="BORDER-BOTTOM: black 0.5pt solid" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: -9px" align="left">
                    Corporate</p>
                </td>

                <td style="BORDER-BOTTOM: black 0.5pt solid" valign="top" width="219">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>134,233&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="BORDER-BOTTOM: black 0.5pt solid" valign="top" width="134">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    176,905</p>
                </td>
            </tr>

            <tr>
                <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 6pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Total assets</p>
                </td>

                <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="219">
                    <p style="MARGIN-TOP: 6pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    <b>$</b><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b>
                    <b>9,494,653&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b></p>
                </td>

                <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="134">
                    <p style="MARGIN-TOP: 6pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    $ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,443,574</p>
                </td>
            </tr>
        </table>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <b><u><a name="OLE_LINK3"></a></u></b></p>

        <p><!-- PAGE BREAK  --><!-- EEDocs PBStart--></p>

        <p align="center">8</p>

        <p></p>
        <hr align="center" width="100%" noshade size="2">
        <br>
        <br>

        <p style="PAGE-BREAK-AFTER: always"></p>
        <!-- EEDocs PBEnd-->

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <font style="FONT-FAMILY: 'TIMES NEW ROMAN BOLD'"><strong>New Accounting
        Pronouncements</strong></font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        In March 2006, the Emerging Issues Task Force (&ldquo;EITF&rdquo;) reached a consensus on
        EITF Issue No. 06-3, &ldquo;How Taxes Collected from Customers and Remitted to Governmental
        Authorities Should Be Presented in the Income Statement (that is, Gross versus Net
        Presentation).&rdquo; EITF 06-3 requires an entity to disclose its policy for presenting
        taxes assessed on revenue-producing transaction between a seller and customer. Such taxes
        may include sales, use, and some excise taxes, among others. EITF 06-3 is effective for
        interim and annual periods ending after December 15, 2006 with early application permitted.
        For the periods presented in this Report, the Company has presented such taxes net. The
        implementation of EITF 06-3 did not have an effect on the Company&rsquo;s consolidated
        financial statements.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        In June 2006, the Financial Accounting Standards Board (&ldquo;FASB&rdquo;) issued FASB
        Interpretation No. 48, &ldquo;Accounting for Uncertainty in Income Taxes&rdquo; (&ldquo;FIN
        48&rdquo;). FIN 48 clarifies the accounting for uncertainty in income taxes recognized in
        financial statements and prescribes a two-step test for the recognition and measurement
        of&nbsp;a tax position taken on a tax return.&nbsp; FIN 48 provides guidance for
        determining whether tax benefits may be recognized with respect to uncertain tax positions
        and, if recognized, the amount that may be recorded.&nbsp; FIN 48 is effective for fiscal
        years beginning after December 15, 2006. FIN 48 did not have a material effect on the
        Company&rsquo;s consolidated financial statements.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        In September 2006, the FASB issued Statement of Financial Accounting Standards
        (&ldquo;SFAS&rdquo;) No. 157, &ldquo;Fair Value Measurement&rdquo; (&ldquo;SFAS 157&rdquo;)
        which defines fair value, establishes a framework for measuring fair value in accordance
        with generally accepted accounting principles, and provides for additional fair value
        disclosures. SFAS 157 is effective for fiscal years beginning after November 15, 2007. The
        Company does not believe SFAS 157 will have a material effect on its consolidated financial
        statements.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        In September 2006, the Staff of the Securities and Exchange Commission issued Staff
        Accounting Bulletin No. 108, &ldquo;Considering the Effect of Prior Year Misstatements when
        Quantifying Misstatements in Current Year Financial Statements&rdquo; (&ldquo;SAB
        108&rdquo;). SAB&nbsp;108 requires the use of two approaches in quantitatively evaluating
        the materiality of misstatements. If the misstatement as quantified under either approach
        is material to the current year financial statements, the misstatement must be corrected.
        If the effect of correcting a prior year misstatement in the current year income statement
        is material, the prior year financial statements should be corrected. In the year of
        adoption (fiscal years ending after November 15, 2006), the misstatements may be corrected
        as an accounting change by adjusting opening retained earnings rather than being included
        in the current year income statement. The Company does not expect SAB 108 to have an impact
        on the Company&rsquo;s consolidated financial statements.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        In February 2007, the FASB issued
        SFAS<a name="OLE_LINK10"></a><a name="OLE_LINK11"></a><a name="OLE_LINK12"></a>
        <a name="OLE_LINK13"></a>&nbsp;No. 159, &ldquo;The Fair Value Option for Financial Assets
        and Financial Liabilities&rdquo; which permits, at specified election dates, all entities
        to choose to measure eligible items at fair value. SFAS 159 is effective as of the
        beginning of an entity&rsquo;s fiscal year beginning on or after November 15, 2007 with
        early application permitted as of the beginning of a fiscal year beginning on or before
        November 15, 2007 if an entity also elects to apply the provisions of SFAS 159. The Company
        did not elect early application of SFAS No. 159. Retrospective application is not permitted
        unless early adoption is adopted. The Company is evaluating the effect, if any, the
        adoption of SFAS&nbsp;159 will have on the Company&rsquo;s consolidated financial
        statements.</p>

        <p><!-- PAGE BREAK  --><!-- EEDocs PBStart--></p>

        <p align="center">9</p>

        <p></p>
        <hr align="center" width="100%" noshade size="2">
        <br>
        <br>

        <p style="PAGE-BREAK-AFTER: always"></p>
        <!-- EEDocs PBEnd-->

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <b>Item 2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management&rsquo;s Discussion and Analysis or Plan
        of Operation</b>.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <font style="FONT-FAMILY: 'TIMES NEW ROMAN BOLD'"><strong>Overview</strong></font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        Revenues for the first quarter of fiscal 2008 decreased by $1,175,554 or 19.9% over the
        same period of fiscal 2007. The level of sales of commercial laundry equipment has varied
        in recent years based on the timing of shipments under larger orders. While these larger
        orders generate lower gross profit margins, they tend to increase revenues and operating
        income. During the quarter ended September 2007, the Company had fewer large sales than it
        did in the quarter ended September 2006, which adversely effected revenues and operating
        income compared to the quarter ended September 30, 2006. The comparative reductions were
        also attributable to heavy shipments in September 2006 from backlog. In addition,
        drycleaning equipment shipments continue to decrease as drycleaning establishments
        consolidated and fashion continues to change to a more casual mode. The slowing economy and
        longer delivery dates on laundry equipment may affect sales for the balance of fiscal
        2008.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        Cash on hand decreased during the quarter by $1,242,480, mostly due to an increased level
        of inventory needed to support future orders and an increase in accounts receivable as a
        result of heavy shipments during September 2007. Cash on hand at September 30, 2007 and
        availability under the Company&rsquo;s revolving credit facility are more than adequate to
        service the Company&rsquo;s needs for the year.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        On September 25, 2007, the Board of Directors declared a $.04 per share semi-annual
        dividend (an aggregate of $281,372) payable on November 1, 2007 to shareholders of record
        on October&nbsp;12, 2007.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <font style="FONT-FAMILY: 'TIMES NEW ROMAN BOLD'"><strong>Liquidity and Capital
        Resources</strong></font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        During the first quarter of fiscal 2008, cash decreased by $1,242,480 compared to a
        decrease of $271,996 during the same period of fiscal 2007. The following summarizes the
        Company&rsquo;s Consolidated Statement of Cash Flows.</p>

        <p></p>

        <p></p>

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

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        </p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr height="22">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="643">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    Three Months Ended September 30,</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="643">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="168">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    2007</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="160">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    2006</p>
                </td>
            </tr>

            <tr height="26">
                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="643">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Net cash used by:</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="168">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="160">
                &nbsp;</td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="643">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Operating activities</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="168">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1,232,943)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="160">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(219,480)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="643">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Investing activities</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="168">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    (9,537)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="160">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    (52,516)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>
        </table>
        <br>
        <br>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        &nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        For the three month period ended September 30, 2007, operating activities used cash of
        $1,232,943 compared to cash of $219,480 used by operating activities during the same period
        of fiscal 2007. Cash was provided by the Company&rsquo;s net earnings ($113,044) and
        non-operating expenses for depreciation and amortization ($34,565). However, this cash was
        offset by cash used as a result of changes in assets and liabilities of $1,384,627 during
        the three month period ended September 30, 2007, principally to support an increase in
        accounts and trade notes receivable ($664,604) due to heavy shipments in September 2007
        which had not yet been paid for and an increase in inventories ($660,023) to support future
        shipments. Cash was additionally used for an increase in other assets ($59,071) and
        decreases in unearned income ($20,693) and</p>

        <p><!-- PAGE BREAK  --><!-- EEDocs PBStart--></p>

        <p align="center">10</p>

        <p></p>
        <hr align="center" width="100%" noshade size="2">
        <br>
        <br>

        <p style="PAGE-BREAK-AFTER: always"></p>
        <!-- EEDocs PBEnd-->

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        accrued employee expenses ($316,994). These additional cash uses was substantially offset
        by increases in accounts payable and accrued expenses ($200,812) and customer deposits
        ($74,910) and a decrease in refundable income taxes ($41,036).</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        For the three month period ended September 30, 2006, cash was provided by the
        Company&rsquo;s net earnings ($186,779) and non-operating expenses for depreciation and
        amortization ($30,209) and bad debts ($1,117). These were offset by $437,585 used as a
        result of changes in operating assets and liabilities. The principal reasons for the
        decrease in cash used as a result of changes in operating assets and liabilities were
        decreases in customer deposits ($425,815) due to heavy shipments in September 2006 from
        backlog, accrued employee expenses ($259,679), income tax payable ($46,989) and unearned
        income ($20,693), coupled with uses of cash to support increases in inventories ($105,940),
        accounts, trade notes and lease receivables ($94,946) and other assets ($46,534). These
        uses were significantly offset by cash resulting from an increase in accounts payable and
        accrued expenses which provided cash of ($563,011), principally caused by the restocking of
        inventory for which payment was not due by quarter end.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        Investing activities for the first quarter of fiscal 2008 used cash of $9,537 compared to
        $52,516 used in the same period of fiscal 2006, mostly for capital expenditures.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        There were no financing activities during the first quarters of fiscal 2008 and 2007.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        A table of Company declared dividends is listed in Note 5 of the &ldquo;Notes to Condensed
        Consolidated Financial Statements&rdquo;.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        On October 22, 2007, the Company received an extension until October 30, 2008 of its
        existing $2,250,000 revolving line of credit facility. The Company&rsquo;s obligations
        under the facility continue to be guaranteed by the Company&rsquo;s subsidiaries and
        collateralized by substantially all of the Company&rsquo;s and its subsidiaries&rsquo;
        assets. No amounts were outstanding under this facility at September 30, 2007 or June 30,
        2007.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        The Company believes that its present cash position and cash it expects to generate from
        operations, as well as, if needed, cash borrowings available under its $2,250,000 revolving
        line of credit facility, will be sufficient to meet its operational needs.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <font style="FONT-FAMILY: 'TIMES NEW ROMAN BOLD'"><strong>Off-Balance Sheet
        Financing</strong></font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">
        The Company has no off-balance sheet financing arrangements within the meaning of item
        303(c) of Regulation S-B.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <font style="FONT-FAMILY: 'TIMES NEW ROMAN BOLD'"><strong>Results of
        Operations</strong></font></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td valign="top" width="620">&nbsp;</td>

                <td valign="top" colspan="3">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Three Months
                    Ended September 30,</p>
                </td>
            </tr>

            <tr>
                <td style="BORDER-BOTTOM: black 0.3pt solid" valign="top" width="620">&nbsp;</td>

                <td style="BORDER-BOTTOM: black 0.3pt solid" valign="top" width="124">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    2007</p>
                </td>

                <td style="BORDER-BOTTOM: black 0.3pt solid" valign="top" width="122">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    2006</p>
                </td>

                <td style="BORDER-BOTTOM: black 0.3pt solid" valign="top" width="119">&nbsp;</td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="BORDER-TOP: medium none" valign="top" width="620">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Net sales</p>
                </td>

                <td style="BORDER-TOP: medium none" valign="top" width="124">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.2in" align="right">
                    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,568,051</p>
                </td>

                <td style="BORDER-TOP: medium none" valign="top" width="122">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in" align="right">
                    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,789,740</p>
                </td>

                <td style="BORDER-TOP: medium none" valign="top" width="119">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    -21.1%</p>
                </td>
            </tr>

            <tr>
                <td style="BORDER-BOTTOM: black 0.3pt solid" valign="top" width="620">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: -18px" align="left">
                    Development fees, franchise and<br>
                    license fees, commissions and<br>
                    other income</p>
                </td>

                <td style="BORDER-BOTTOM: black 0.3pt solid" valign="bottom" width="124">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    168,593</p>
                </td>

                <td style="BORDER-BOTTOM: black 0.3pt solid" valign="bottom" width="122">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    122,458</p>
                </td>

                <td style="BORDER-BOTTOM: black 0.3pt solid" valign="bottom" width="119">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    37.7%</p>
                </td>
            </tr>

            <tr style="BORDER-RIGHT: 2px double; BORDER-TOP: 2px double; BORDER-LEFT: 2px double; BORDER-BOTTOM: 2px double" bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="top" width="620">
                    <p style="MARGIN-TOP: 3pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Total revenues</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="top" width="124">
                    <p style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.2in" align="right">
                    $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4,736,644</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="top" width="122">
                    <p align="right">$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5,912,198</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="top" width="119">
                    <p style="MARGIN-TOP: 3pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    -19.9%</p>
                </td>
            </tr>
        </table>

        <p></p>

        <p><!-- PAGE BREAK  --><!-- EEDocs PBStart--></p>

        <p align="center">11</p>

        <p></p>
        <hr align="center" width="100%" noshade size="2">
        <br>
        <br>

        <p style="PAGE-BREAK-AFTER: always"></p>
        <!-- EEDocs PBEnd-->

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        Revenues for the three month period ended September 30, 2007 decreased by $1,175,554
        (19.9%) from the same period of fiscal 2007. The decrease was attributable to a $1,200,556
        (20.5%) decrease in revenue of the commercial laundry and dry cleaning segment, with
        commercial laundry equipment sales decreasing by 27.9%, dry cleaning equipment sales
        decreasing by 39.7% and boiler sales decreasing by (10.1%). These decreases were offset, in
        part, by an increase in spare parts sales (1.9%). The comparative reduction was also
        attributable to relatively heavy shipments in September 2006 from backlog. Development
        fees, franchise and license fees, commissions and other income increased by $46,135
        (37.3%), principally due to increased renewal license fees and development fees.</p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="625">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" colspan="2">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    Three Months Ended September 30,</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="625">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="180">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    2007</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.3pt solid" valign="top" width="172">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
                    2006</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="625">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <i>As a percentage of</i> <i>net</i> <i>sales:</i></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="180">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="172">
                &nbsp;</td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="625">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.3in" align="left">
                    Cost of sales</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="180">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    75.8%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="172">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    77.7%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="625">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <i>As a percentage of revenues:</i></p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="180">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="172">
                &nbsp;</td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="625">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 18px" align="left">
                    Selling, general and administrative expenses</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="180">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    24.1%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="172">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    19.3%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="625">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 18px" align="left">
                    Research and development</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="180">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    0.1%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="172">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    1.2%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>

            <tr bgcolor="#c0c0c0">
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="625">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="180">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="172">
                &nbsp;</td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="625">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 18px" align="left">
                    Total cost of sales and operating expenses</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="180">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    97.3%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="172">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
                    95.5%&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>
                </td>
            </tr>
        </table>

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        Costs of goods sold, expressed as a percentage of sales, decreased to 75.8% from 77.7% for
        the three month period ended September 30, 2007 compared to the same period of fiscal 2007.
        The improved margins were due to the absence of large contract shipments which improved the
        product mix.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        Selling general and administrative expenses increased by $4,887 (.04%), but as a percentage
        of revenues increased to 24.1% in the first quarter of fiscal 2008 from 19.3% in the first
        quarter of fiscal 2007. While expenses in these categories were basically flat in the
        comparable quarters, the increase as a percentage of revenues in the fiscal 2008 period was
        due to the decreased level of sales which affected the absorption of fixed and
        semi-variable expenses in these categories.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        Research and development expenses are a small part of the Company&rsquo;s total operating
        expenses and relate to upgrading existing product lines.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        The overall cost of sales and operating expenses of the Company, expressed as a percentage
        of revenues, increased to 97.3% in the first quarter of fiscal 2008 from 95.5% in the same
        period of fiscal 2007. Improved gross profit margins were offset by selling and
        administrative expenses which were spread over reduced revenues.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        Interest income increased by $11,564 (30.3%) in the first quarter of fiscal 2008 over the
        same period of fiscal 2007 due to interest received on higher average bank balances and an
        increase in interest rates.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        The Company&rsquo;s effective tax rate decreased to 36.0% from 38.0% due to changes in
        deferred tax assets and other deductions which, coupled with the lower earnings before
        income taxes, reduced the provision for income taxes by $50,950 (44.5%) in the first
        quarter of fiscal 2008 from the first quarter of fiscal 2007.</p>

        <p><!-- PAGE BREAK  --><!-- EEDocs PBStart--></p>

        <p align="center">12</p>

        <p></p>
        <hr align="center" width="100%" noshade size="2">
        <br>
        <br>

        <p style="PAGE-BREAK-AFTER: always"></p>
        <!-- EEDocs PBEnd-->

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <strong><font style="FONT-FAMILY: 'TIMES NEW ROMAN BOLD'">Inflation</font></strong></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        Inflation has not had a significant effect on the Company&rsquo;s operations during any of
        the reported periods.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <u><b><font style="FONT-FAMILY: 'TIMES NEW ROMAN BOLD'">Transactions</font></b>
        <b><font style="FONT-FAMILY: 'TIMES NEW ROMAN BOLD'">with</font></b>
        <b><font style="FONT-FAMILY: 'TIMES NEW ROMAN BOLD'">Related Parties</font></b></u></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        The Company leases 27,000 square feet of warehouse and office space from Sheila Steiner,
        who together with her husband, William K. Steiner, Chairman of the Board of Directors and a
        director of the Company, are the trustees of a trust which is a principal shareholder of
        the Company. The lease is 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 to bear the costs of 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 Company believes that the terms of the lease
        are comparable to terms that would be obtained from an unaffiliated third party for similar
        property in a similar locale.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <b><u><strong><font style="FONT-FAMILY: 'TIMES NEW ROMAN BOLD'">Critical</font>
        <font style="FONT-FAMILY: 'TIMES NEW ROMAN BOLD'">Accounting</font>
        <font style="FONT-FAMILY: 'TIMES NEW ROMAN BOLD'">Policies</font></strong></u></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        The accounting policies that the Company has identified as critical to its business
        operations and to an understanding of the Company&rsquo;s results of operations remain
        unchanged from those described in the Management&rsquo;s Discussion an Analysis or Plan of
        Operation section of the Company&rsquo;s Annual Report on Form 10-KSB for the fiscal year
        ended June 30, 2007. The Company makes estimates and assumptions that effect the reported
        amount of assets and liabilities, contingent assets and liabilities, and the reported
        amounts of revenues and expenses during the reported period. Therefore, there can be no
        assurance that the actual results will not differ from those estimates.</p>

        <p><!-- PAGE BREAK  --><!-- EEDocs PBStart--></p>

        <p align="center">13</p>

        <p></p>
        <hr align="center" width="100%" noshade size="2">
        <br>
        <br>

        <p style="PAGE-BREAK-AFTER: always"></p>
        <!-- EEDocs PBEnd-->

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <font style="FONT-FAMILY: 'TIMES NEW ROMAN BOLD'"><strong>New Accounting
        Pronouncements</strong></font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        In March 2006, the Emerging Issues Task Force (&ldquo;EITF&rdquo;) reached a consensus on
        EITF Issue No. 06-3, &ldquo;How Taxes Collected from Customers and Remitted to Governmental
        Authorities Should Be Presented in the Income Statement (that is, Gross versus Net
        Presentation).&rdquo; EITF 06-3 requires an entity to disclose its policy for presenting
        taxes assessed on revenue-producing transaction between a seller and customer. Such taxes
        may include sales, use, and some excise taxes, among others. EITF 06-3 is effective for
        interim and annual periods ending after December 15, 2006 with early application permitted.
        For the periods presented in this Report, the Company has presented such taxes net. The
        implementation of EITF 06-3 did not have an effect on the Company&rsquo;s consolidated
        financial statements.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        In June 2006, the Financial Accounting Standards Board (&ldquo;FASB&rdquo;) issued FASB
        Interpretation No. 48, &ldquo;Accounting for Uncertainty in Income Taxes&rdquo; (&ldquo;FIN
        48&rdquo;). FIN 48 clarifies the accounting for uncertainty in income taxes recognized in
        financial statements and prescribes a two-step test for the recognition and measurement
        of&nbsp;a tax position taken on a tax return.&nbsp; FIN 48 provides guidance for
        determining whether tax benefits may be recognized with respect to uncertain tax positions
        and, if recognized, the amount that may be recorded.&nbsp; FIN 48 is effective for fiscal
        years beginning after December 15, 2006. FIN 48 did not have a material effect on the
        Company&rsquo;s consolidated financial statements.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        In September 2006, the FASB issued Statement of Financial Accounting Standards
        (&ldquo;SFAS&rdquo;) No. 157, &ldquo;Fair Value Measurement&rdquo; (&ldquo;SFAS 157&rdquo;)
        which defines fair value, establishes a framework for measuring fair value in accordance
        with generally accepted accounting principles, and provides for additional fair value
        disclosures. SFAS 157 is effective for fiscal years beginning after November 15, 2007. The
        Company does not believe SFAS 157 will have a material effect on its consolidated financial
        statements.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        In September 2006, the Staff of the Securities and Exchange Commission issued Staff
        Accounting Bulletin No. 108, &ldquo;Considering the Effect of Prior Year Misstatements when
        Quantifying Misstatements in Current Year Financial Statements&rdquo; (&ldquo;SAB
        108&rdquo;). SAB&nbsp;108 requires the use of two approaches in quantitatively evaluating
        the materiality of misstatements. If the misstatement as quantified under either approach
        is material to the current year financial statements, the misstatement must be corrected.
        If the effect of correcting a prior year misstatement in the current year income statement
        is material, the prior year financial statements should be corrected. In the year of
        adoption (fiscal years ending after November 15, 2006), the misstatements may be corrected
        as an accounting change by adjusting opening retained earnings rather than being included
        in the current year income statement. The Company does not expect SAB 108 to have an impact
        on the Company&rsquo;s consolidated financial statements.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        In February 2007, the FASB issued SFAS&nbsp;No. 159, &ldquo;The Fair Value Option for
        Financial Assets and Financial Liabilities&rdquo; which permits, at specified election
        dates, all entities to choose to measure eligible items at fair value. SFAS 159 is
        effective as of the beginning of an entity&rsquo;s fiscal year beginning on or after
        November 15, 2007 with early application permitted as of the beginning of a fiscal year
        beginning on or before November 15, 2007 if an entity also elects to apply the provisions
        of SFAS 159. The Company did not elect early application of SFAS No. 159. Retrospective
        application is not permitted unless early adoption is adopted. The Company is evaluating
        the effect, if any, the adoption of SFAS&nbsp;159 will have on the Company&rsquo;s
        consolidated financial statements.</p>

        <p><!-- PAGE BREAK  --><!-- EEDocs PBStart--></p>

        <p align="center">14</p>

        <p></p>
        <hr align="center" width="100%" noshade size="2">
        <br>
        <br>

        <p style="PAGE-BREAK-AFTER: always"></p>
        <!-- EEDocs PBEnd-->

        <p></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <b><u><font style="FONT-FAMILY: 'TIMES NEW ROMAN BOLD'">Forward Looking
        Statements</font></u></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        Certain statements in this Report are &ldquo;forward looking statements&rdquo; within the
        meaning of the Private Securities Litigation Reform Act of 1995. When used in this Report,
        words such as &ldquo;may,&rdquo; &ldquo;should,&rdquo; &ldquo;seek,&rdquo;
        &ldquo;believe,&rdquo; &ldquo;expect,&rdquo; anticipate,&rdquo; &ldquo;estimate,&rdquo;
        &ldquo;project,&rdquo; &ldquo;intend,&rdquo; &ldquo;strategy&rdquo; and similar expressions
        are intended to identify forward looking statements regarding events, conditions and
        financial trends that may affect the Company&rsquo;s future plans, operations, business
        strategies, operating results and financial position. Forward-looking statements are
        subject to a number of known and unknown risks and uncertainties that may cause actual
        results, trends, performance or achievements of the Company, or industry trends and
        results, to differ materially from the future results, trends, performance or achievements
        expressed or implied by such forward-looking statements. Such risks and uncertainties
        include, among others: general economic and business conditions in the United States and
        other countries in which the Company&rsquo;s customers and suppliers are located; industry
        conditions and trends; technology changes; competition and other factors which may affect
        prices which the Company may charge for its products and its profit margins; the
        availability and cost of the equipment purchased by the Company; relative values of the
        United States currency to currencies in the countries in which the Company&rsquo;s
        customers, suppliers and competitors are located; changes in, or the failure to comply
        with, government regulation, principally environmental regulations; and the Company&rsquo;s
        ability to successfully introduce, market and sell at acceptable profit margins its new
        Green Jet&reg; dry-wetcleaning machine and Multi-Jet&reg; dry cleaning machine; the
        Company&rsquo;s ability to implement changes in its business strategies and development
        plans; and the availability, terms and deployment of debt and equity capital if needed for
        expansion. These and certain other factors are discussed in this Report and from time to
        time in other Company reports filed with the Securities and Exchange Commission. The
        Company does not assume an obligation to update the factors discussed in this Report or
        such other reports.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <font style="FONT-FAMILY: 'TIMES NEW ROMAN BOLD'"><strong>Item
        3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Controls and Procedures</strong></font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        As of the end of the period covered by this report, management of the Company, with the
        participation of the Company&rsquo;s President and principal executive officer and the
        Company&rsquo;s Treasurer and principal financial officer, evaluated the effectiveness of
        the Company&rsquo;s &ldquo;disclosure controls and procedures,&rdquo; as defined in Rule
        13a-15(e) under the Securities Exchange Act of 1934. Based on that evaluation, these
        officers concluded that, as of the date of their evaluation, the Company&rsquo;s disclosure
        controls and procedures were effective to provide reasonable assurance that information
        required to be disclosed in the Company&rsquo;s periodic filings under the Securities
        Exchange Act of 1934 is accumulated and communicated to the Company&rsquo;s management,
        including those officers, to allow timely decisions regarding required disclosure. It
        should be noted that a control system, no matter how well designed and operated, can
        provide only reasonable, not absolute, assurance that it will detect or uncover failures
        within the Company to disclose material information otherwise required to be set forth the
        Company&rsquo;s periodic reports.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        During the period covered by this Report, there were no changes in the Company&rsquo;s
        internal control over financial reporting that have materially affected, or are reasonably
        likely to materially affect, the Company&rsquo;s internal control over financial
        reporting.</p>

        <p><!-- PAGE BREAK  --><!-- EEDocs PBStart--></p>

        <p align="center">15</p>

        <p></p>
        <hr align="center" width="100%" noshade size="2">
        <br>
        <br>

        <p style="PAGE-BREAK-AFTER: always"></p>
        <!-- EEDocs PBEnd-->

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
        <b>PART II. OTHER INFORMATION</b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        <font style="FONT-FAMILY: 'TIMES NEW ROMAN BOLD'"><strong>Item 6.&nbsp;&nbsp;
        Exhibits</strong></font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-INDENT: -72px" align="left">
        (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        Exhibits:</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-INDENT: -72px" align="left">
        31.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Certification of principal
        executive officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 promulgated
        under the Securities Exchange Act of 1934.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-INDENT: -72px" align="left">
        31.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Certification of principal
        financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 promulgated
        under the Securities Exchange Act of 1934.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-INDENT: -72px" align="left">
        32.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Certification of Principal
        Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-INDENT: -72px" align="left">
        32.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Certification of Principal
        Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
        SIGNATURES</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        In accordance with the requirements of the Exchange Act, the registrant caused this report
        to be signed on its behalf by the undersigned, thereunto duly authorized.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
        &nbsp;</p>

        <p align="left"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="295">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Date: November 12, 2007</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="295">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.4in" align="left">
                    &nbsp;</p>

                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.4in" align="left">
                    DRYCLEAN USA, INC.</p>

                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.4in" align="left">
                    &nbsp;</p>

                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.4in" align="left">
                    By:&nbsp;&nbsp;<u>/s/ Venerando J.
                    Indelicato&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></p>

                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Venerando
                    J. Indelicato,<br>
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Treasurer
                    and Chief Financial Officer</p>
                </td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="295">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="295">
                &nbsp;</td>
            </tr>
        </table>
        <br>
        <br>

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

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

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        &nbsp;</p>

        <p><!-- PAGE BREAK  --><!-- EEDocs PBStart--></p>

        <p align="center">16</p>

        <p></p>
        <hr align="center" width="100%" noshade size="2">
        <br>
        <br>

        <p style="PAGE-BREAK-AFTER: always"></p>
        <!-- EEDocs PBEnd-->

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
        <b>Exhibit Index</b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-INDENT: -72px" align="left">
        31.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        <a href="ex31_01-f10qsb09302007.htm">Certification of principal executive officer pursuant
        to Section 302 of the Sarbanes-Oxley Act of 2002 promulgated under the Securities Exchange
        Act of 1934.</a></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-INDENT: -72px" align="left">
        31.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        <a href="ex31_02-f10qsb09302007.htm">Certification of principal financial officer pursuant
        to Section 302 of the Sarbanes-Oxley Act of 2002 promulgated under the Securities Exchange
        Act of 1934.</a></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-INDENT: -72px" align="left">
        32.01&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        <a href="ex32_01-f10qsb09302007.htm">Certification of Principal Executive Officer pursuant
        to Section 906 of the Sarbanes-Oxley Act of 2002.</a></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-INDENT: -72px" align="left">
        32.02&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        <a href="ex32_02-f10qsb09302007.htm">Certification of Principal Financial Officer pursuant
        to Section 906 of the Sarbanes-Oxley Act of 2002.</a></p>

        <p><!-- PAGE BREAK  --><!-- EEDocs PBStart--></p>

        <p align="center">17</p>

        <p></p>

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

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>2
<FILENAME>ex31_01-f10qsb09302007.htm
<DESCRIPTION>EXHIBIT 31.01
<TEXT>
<html>
    <head>
        <title></title>
        <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
        <!-- Control Number:                                                                  -->
        <!-- Rev Number:                                                                      -->
        <!-- Client Name:                                                                     -->
        <!-- Project Name:                                                                    -->
        <!-- Firm Name:                                                                       -->
    </head>

    <body text="#000000" vlink="#800000" link="#0000ff" bgcolor="#ffffff">

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 24pt; MARGIN-LEFT: 1in; TEXT-INDENT: -72px" align="right">
        <b>EXHIBIT 31.01</b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 36pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
        CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO<br>
        18 U.S.C. SECTION 1350,<br>
        AS ADOPTED PURSUANT TO<br>
        SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 36pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        I, Michael S. Steiner, certify that:</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">
        1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed this Quarterly Report on Form 10-QSB for
        the quarter ended September&nbsp;30, 2007 of DRYCLEAN USA, Inc.;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">
        2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, this report does not contain any
        untrue statement of a material fact or omit to state a material fact necessary to make the
        statements made, in light of the circumstances under which such statements were made, not
        misleading with respect to the period covered by this report;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">
        3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, the financial statements, and other
        financial information included in this report, fairly present in all material respects the
        financial condition, results of operations and cash flows of the small business issuer as
        of, and for, the periods presented in this report;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">
        4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The small business issuer&rsquo;s other certifying
        officer(s) and I are responsible for establishing and maintaining disclosure controls and
        procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the small
        business issuer and have:</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-INDENT: -36px" align="left">
        (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Designed such disclosure controls and procedures, or
        caused such disclosure controls and procedures to be designed under our supervision, to
        ensure that material information relating to the small business issuer, including its
        consolidated subsidiaries, is made known to us by others within those entities,
        particularly during the period in which this report is being prepared;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-INDENT: -36px" align="left">
        (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Evaluated the effectiveness of the small business
        issuer&rsquo;s disclosure controls and procedures and presented in this report our
        conclusions about the effectiveness of the disclosure controls and procedures, as of the
        end of the period covered by this report based on such evaluation; and</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-INDENT: -36px" align="left">
        (c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disclosed in this report any change in the small business
        issuer&rsquo;s internal control over financial reporting that occurred during the small
        business issuer&rsquo;s most recent fiscal quarter (the small business issuer&rsquo;s
        fourth fiscal quarter in the case of an annual report) that has materially affected, or is
        reasonably likely to materially affect, the small business issuer&rsquo;s internal control
        over financial reporting; and</p>

        <p><!-- PAGE BREAK  --><!-- EEDocs PBStart--></p>

        <p align="center">18</p>

        <p></p>
        <hr align="center" width="100%" noshade size="2">

        <p><br>
        <br>
        </p>

        <p style="PAGE-BREAK-AFTER: always"></p>
        <!-- EEDocs PBEnd-->

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">
        5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The small business issuer&rsquo;s other certifying
        officer(s) and I have disclosed, based on our most recent evaluation of internal control
        over financial reporting, to the small business issuer&rsquo;s auditors and the audit
        committee of the small business issuer&rsquo;s board of directors (or persons performing
        the equivalent functions):</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-INDENT: -36px" align="left">
        (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All significant deficiencies and material weaknesses in
        the design or operation of internal control over financial reporting which are reasonably
        likely to adversely affect the small business issuer&rsquo;s ability to record, process,
        summarize and report financial information; and</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 36pt; MARGIN-LEFT: 1in; TEXT-INDENT: -36px" align="left">
        (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any fraud, whether or not material, that involves
        management or other employees who have a significant role in the small business
        issuer&rsquo;s internal control over financial reporting.</p>

        <p><!-- PAGE BREAK  --><!-- EEDocs PBStart--></p>

        <p align="left"></p>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="295">
                    &nbsp;

                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Date: November 12, 2007</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="295">
                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    &nbsp;</p>

                    <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    &nbsp;</p>

                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <u>/s/ Michael
                    Steiner&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    &nbsp;</u></p>

                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Michael S. Steiner<br>
                    President and Principal<br>
                    Executive Officer</p>
                </td>
            </tr>
        </table>
        <br>
        <br>
        <br>
        <br>


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

        <p align="center">19</p>

        <p></p>

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

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>3
<FILENAME>ex31_02-f10qsb09302007.htm
<DESCRIPTION>EXHIBIT 31.02
<TEXT>
<html>
    <head>
        <title></title>
        <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
        <!-- Control Number:                                                                  -->
        <!-- Rev Number:                                                                      -->
        <!-- Client Name:                                                                     -->
        <!-- Project Name:                                                                    -->
        <!-- Firm Name:                                                                       -->
    </head>

    <body text="#000000" vlink="#800000" link="#0000ff" bgcolor="#ffffff">

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 24pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
        <b>EXHIBIT 31.02</b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 36pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
        CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO<br>
        18 U.S.C. SECTION 1350,<br>
        AS ADOPTED PURSUANT TO<br>
        SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        I, Venerando J. Indelicato, certify that:</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">
        1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed this Quarterly Report on Form 10-QSB for
        the quarter ended September&nbsp;30, 2007 of DRYCLEAN USA, Inc.;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">
        2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, this report does not contain any
        untrue statement of a material fact or omit to state a material fact necessary to make the
        statements made, in light of the circumstances under which such statements were made, not
        misleading with respect to the period covered by this report;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">
        3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, the financial statements, and other
        financial information included in this report, fairly present in all material respects the
        financial condition, results of operations and cash flows of the small business issuer as
        of, and for, the periods presented in this report;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">
        4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The small business issuer&rsquo;s other certifying
        officer(s) and I are responsible for establishing and maintaining disclosure controls and
        procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the small
        business issuer and have:</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-INDENT: -36px" align="left">
        (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Designed such disclosure controls and procedures, or
        caused such disclosure controls and procedures to be designed under our supervision, to
        ensure that material information relating to the small business issuer, including its
        consolidated subsidiaries, is made known to us by others within those entities,
        particularly during the period in which this report is being prepared;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-INDENT: -36px" align="left">
        (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Evaluated the effectiveness of the small business
        issuer&rsquo;s disclosure controls and procedures and presented in this report our
        conclusions about the effectiveness of the disclosure controls and procedures, as of the
        end of the period covered by this report based on such evaluation; and</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-INDENT: -36px" align="left">
        (c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Disclosed in this report any change in the small business
        issuer&rsquo;s internal control over financial reporting that occurred during the small
        business issuer&rsquo;s most recent fiscal quarter (the small business issuer&rsquo;s
        fourth fiscal quarter in the case of an annual report) that has materially affected, or is
        reasonably likely to materially affect, the small business issuer&rsquo;s internal control
        over financial reporting; and</p>

        <p><!-- PAGE BREAK  --><!-- EEDocs PBStart--></p>

        <p align="center">20</p>

        <p></p>
        <hr align="center" width="100%" noshade size="2">

        <p><br>
        <br>
        </p>

        <p style="PAGE-BREAK-AFTER: always"></p>
        <!-- EEDocs PBEnd-->

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">
        5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The small business issuer&rsquo;s other certifying
        officer(s) and I have disclosed, based on our most recent evaluation of internal control
        over financial reporting, to the small business issuer&rsquo;s auditors and the audit
        committee of the small business issuer&rsquo;s board of directors (or persons performing
        the equivalent functions):</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-INDENT: -36px" align="left">
        (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All significant deficiencies and material weaknesses in
        the design or operation of internal control over financial reporting which are reasonably
        likely to adversely affect the small business issuer&rsquo;s ability to record, process,
        summarize and report financial information; and</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 24pt; MARGIN-LEFT: 1in; TEXT-INDENT: -36px" align="left">
        (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any fraud, whether or not material, that involves
        management or other employees who have a significant role in the small business
        issuer&rsquo;s internal control over financial reporting.</p>

        <p></p>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="295">
                    &nbsp;

                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Date: November 12, 2007</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="295">
                &nbsp;</td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="295">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="295">
                    <p style="FONT-SIZE: 11pt; MARGIN: 0pt 0.1in 0pt 0in; TEXT-INDENT: 0px" align="left">
                    <u>/s/ Venerando J.
                    Indelicato&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    &nbsp;</u></p>

                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Venerando J. Indelicato</p>

                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    Treasurer and Principal<br>
                    Financial Officer</p>
                </td>
            </tr>
        </table>
        <br>
        <br>
        <br>
        <br>


        <p><!-- PAGE BREAK  --><!-- EEDocs PBStart--></p>

        <p align="center">21</p>
    </body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>4
<FILENAME>ex32_01-f10qsb09302007.htm
<DESCRIPTION>EXHIBIT 32.01
<TEXT>
<html>
    <head>
        <title></title>
        <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
        <!-- Control Number:                                                                  -->
        <!-- Rev Number:                                                                      -->
        <!-- Client Name:                                                                     -->
        <!-- Project Name:                                                                    -->
        <!-- Firm Name:                                                                       -->
    </head>

    <body text="#000000" vlink="#800000" link="#0000ff" bgcolor="#ffffff">
        <p></p>
        <!-- EEDocs PBEnd-->

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
        <b>EXHIBIT 32.01</b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
        CERTIFICATION PURSUANT TO<br>
        18 U.S.C. SECTION 1350,<br>
        AS ADOPTED PURSUANT TO<br>
        SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        In connection with the Quarterly Report of DRYCLEAN USA, Inc. (the &ldquo;Company&rdquo;)
        on Form 10-QSB for the quarter ended September 30, 2007, as filed with the Securities and
        Exchange Commission on the date hereof (the &ldquo;Report&rdquo;), I, Michael S. Steiner,
        Principal Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as
        adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that, to the best of my
        knowledge:</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-INDENT: -36px" align="left">
        (1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Report fully complies with the requirements of Section
        13(a) or 15(d) of the Securities Exchange Act of 1934; and</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-INDENT: -36px" align="left">
        (2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information contained in the report fairly presents,
        in all material respects, the financial condition and results of operations of the
        Company.</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-INDENT: -36px" align="left">
        &nbsp;</p>

        <p align="left"></p>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="295">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    November 12, 2007</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="295">
                &nbsp;</td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="295">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="295">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    <u>/s/ Michael
                    Steiner&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    &nbsp;</u><br>
                    Michael S. Steiner<br>
                    Principal Executive Officer</p>
                </td>
            </tr>
        </table>
        <br>
        <br>
        <br>
        <br>


        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 3.5in" align="left">&nbsp;</p>

        <p><!-- PAGE BREAK  --><!-- EEDocs PBStart--></p>

        <p align="center">22</p>
    </body>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>5
<FILENAME>ex32_02-f10qsb09302007.htm
<DESCRIPTION>EXHIBIT 32.02
<TEXT>
<html>
    <head>
        <title></title>
        <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
        <!-- Control Number:                                                                  -->
        <!-- Rev Number:                                                                      -->
        <!-- Client Name:                                                                     -->
        <!-- Project Name:                                                                    -->
        <!-- Firm Name:                                                                       -->
    </head>

    <body text="#000000" vlink="#800000" link="#0000ff" bgcolor="#ffffff">
        <p></p>
        <!-- EEDocs PBEnd-->

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">
        <b>EXHIBIT 32.02</b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">
        CERTIFICATION PURSUANT TO<br>
        18 U.S.C. SECTION 1350,<br>
        AS ADOPTED PURSUANT TO<br>
        SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
        In connection with the Quarterly Report of DRYCLEAN USA, Inc. (the &ldquo;Company&rdquo;)
        on Form 10-QSB for the quarter ended September 30, 2007, as filed with the Securities and
        Exchange Commission on the date hereof (the &ldquo;Report&rdquo;), I, Venerando J.
        Indelicato, Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C.
        Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 that, to
        the best of my knowledge:</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-INDENT: -36px" align="left">
        (1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Report fully complies with the requirements of Section
        13(a) or 15(d) of the Securities Exchange Act of 1934; and</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-INDENT: -36px" align="left">
        (2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information contained in the report fairly presents,
        in all material respects, the financial condition and results of operations of the
        Company.</p>

        <p style="MARGIN: 0pt 1in 0pt 0in; TEXT-INDENT: 616px" align="left">&nbsp;</p>

        <p align="left"></p>

        <p></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="295">
                    &nbsp;

                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
                    November 12, 2007</p>
                </td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="295">
                &nbsp;</td>
            </tr>

            <tr>
                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="295">
                &nbsp;</td>

                <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="295">
                    <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px">
                    <u>/s/ Venerando J.
                    Indelicato&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    &nbsp;<br>
                    </u> Venerando J. Indelicato<br>
                    Principal Financial Officer</p>
                </td>
            </tr>
        </table>
        <br>
        <br>
        <br>
        <br>


        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 3.5in; TEXT-INDENT: -252px" align="left">
        &nbsp;</p>

        <p align="center">23</p>
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</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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