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<SEC-DOCUMENT>0001169232-07-004662.txt : 20071218
<SEC-HEADER>0001169232-07-004662.hdr.sgml : 20071218
<ACCEPTANCE-DATETIME>20071217181910
ACCESSION NUMBER:		0001169232-07-004662
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20071031
FILED AS OF DATE:		20071218
DATE AS OF CHANGE:		20071217

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			MFRI INC
		CENTRAL INDEX KEY:			0000914122
		STANDARD INDUSTRIAL CLASSIFICATION:	INDUSTRIAL & COMMERCIAL FANS & BLOWERS & AIR PURIFYING EQUIP [3564]
		IRS NUMBER:				363922969
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0131

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32530
		FILM NUMBER:		071311089

	BUSINESS ADDRESS:	
		STREET 1:		7720 LEHIGH AVE
		CITY:			NILES
		STATE:			IL
		ZIP:			60714
		BUSINESS PHONE:		8479661000

	MAIL ADDRESS:	
		STREET 1:		7720 LEHIGH AVE
		CITY:			NILES
		STATE:			IL
		ZIP:			60714

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MIDWESCO FILTER RESOURCES INC
		DATE OF NAME CHANGE:	19970402
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>d73199_10q.htm
<DESCRIPTION>QUARTERLY REPORT
<TEXT>
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<TITLE> </TITLE>
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<p style=' margin-bottom:0pt; margin-top:0pt;' align="center"><B><font SIZE=2>UNITED STATES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;' align="center"><B><font SIZE=2>SECURITIES AND EXCHANGE COMMISSION</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;' align="center"><B><font SIZE=2>WASHINGTON, D.C. 20549</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;' align="center"><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;' align="center"><B><font SIZE=2>FORM 10-Q</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="638" style='border-collapse:collapse;   '>
    <tr style='page-break-inside:avoid; height:13.9pt'>

        <td width="40" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt; height:13.9pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>X</font></p>  </td>

        <td  colspan="15" rowspan=2 style=' padding:0pt 5.4pt 0pt 5.4pt;height:13.9pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></p> </td> </tr>
    <tr style='page-break-inside:avoid;height:13.85pt'>

        <td width="40" valign=top style='padding:0pt 5.4pt 0pt 5.4pt;height:13.85pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>

        <td
colspan="16" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>

        <td  colspan="5" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=2>For the quarterly period ended</font></p> </td>

        <td  colspan="11" valign=top style=' border-bottom:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>October 31, 2007</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>

        <td  colspan="16" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>

        <td  colspan="16" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>OR</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>

        <td  colspan="16" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid;height:13.9pt'>

        <td width="40" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt; height:13.9pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="15" rowspan=2 valign=top style=' padding:0pt 5.4pt 0pt 5.4pt;height:13.9pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=2>TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</font></p> </td> </tr>
    <tr style='page-break-inside:avoid;height:13.85pt'>

        <td width="40" valign=top style='padding:0pt 5.4pt 0pt 5.4pt;height:13.85pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>

        <td  colspan="16" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>

        <td  colspan="5" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=2>For the transition period from</font></p> </td>

        <td  colspan="2" valign=top style='border-bottom: solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="47" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=2>to</font></p> </td>

        <td  colspan="5" valign=top style=' border-bottom:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="24" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>

        <td  colspan="16" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>

        <td  colspan="8" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=2>Commission file number</font></p> </td>

        <td  colspan="4" valign=top style=' border-bottom:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>0-18370</font></p> </td>

        <td  colspan="4" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>

        <td  colspan="16" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>

        <td  colspan="16" valign=top style=' border-bottom:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>MFRI, INC.</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>

        <td  colspan="16" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(Exact name of registrant as specified in its charter)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>

        <td  colspan="16" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>

        <td  colspan="6" valign=top style=' border-bottom:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Delaware</font></p> </td>

        <td  colspan="10" valign=top style=' border-bottom:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>36-3922969</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>

        <td  colspan="6" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(State or other jurisdiction of</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>incorporation or organization)</font></p> </td>

        <td  colspan="10" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(I.R.S. Employer</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>Identification No.)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>

        <td  colspan="16" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>

        <td  colspan="3" valign=top style=' border-bottom:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>7720 Lehigh Avenue</font></p> </td>

        <td  colspan="7" valign=top style=' border-bottom:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Niles, Illinois</font></p> </td>

        <td  colspan="6" valign=top style=' border-bottom:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>60714</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>

        <td  colspan="10" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(Address of principal executive offices)</font></p> </td>

        <td  colspan="6" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(Zip Code)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>

        <td  colspan="16" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>

        <td  colspan="16" valign=top style=' border-bottom:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(847) 966-1000</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>

        <td  colspan="16" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(Registrant&#146;s telephone number, including area code)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>

        <td  colspan="16" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>

        <td  colspan="16" valign=top style=' border-top:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(Former name, former address and former fiscal year, if changed since last report)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>

        <td  colspan="16" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid;height:27.75pt'>

        <td  colspan="16" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt;height:27.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes   </font><font face=Wingdings>x</font><font size=2>      No  </font><font face=Wingdings><font size=2>o</font></font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>

        <td  colspan="16" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>

        <td  colspan="16" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.  See definition of &#147;accelerated filer and large accelerated filer&#148; in Rule 12b-2 of the Exchange Act. (Check one):  </font></p> </td> </tr>
    <tr style='page-break-inside:avoid;height:13.05pt'>

        <td  colspan="2" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt;height:13.05pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Large accelerated filer</font></p> </td>

        <td  colspan="2" valign=top style='padding: 0pt 5.4pt 0pt 5.4pt;height:13.05pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings><font size=2>o</font></font></p> </td>

        <td  colspan="5" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt;height:13.05pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Accelerated filer</font></p> </td>

        <td  colspan="2" valign=top style='padding: 0pt 5.4pt 0pt 5.4pt;height:13.05pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings><font size=2>o</font></font></p> </td>

        <td  colspan="4" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt;height:13.05pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Non-accelerated filer</font></p> </td>

        <td width="55" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:13.05pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font face=Wingdings>x</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>

        <td  colspan="16" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of </font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The Exchange Act)   Yes   </font><font face=Wingdings><font size=2>o</font></font><font size=2>     No  </font><font face=Wingdings>x</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>

        <td  colspan="16" valign=top style=' padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>On December 12, 2007, there were 6,653,695 shares of the registrant&#146;s common stock outstanding.</font></p> </td> </tr>
    <tr>

        <td width="40" ></td>

        <td width="149" ></td>

        <td width="20" ></td>

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        <td width="80" ></td>

        <td width="11" ></td>

        <td width="47" ></td>

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        <td width="22" ></td>

        <td width="16" ></td>

        <td width="26" ></td>

        <td width="18" ></td>

        <td width="24" ></td>

        <td width="82" ></td>

        <td width="55" ></td> </tr> </table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>PART I &#150; FINANCIAL INFORMATION</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="214" style='margin-left:0pt;border-collapse:collapse; '>
    <tr >

        <td width="16" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="61" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 1.</font></b></p> </td>

        <td width="137" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Financial Statements</font></b></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The accompanying interim condensed consolidated financial statements of MFRI, Inc. and subsidiaries (the &#147;Company&#148;) are unaudited, but include all adjustments, which the Company&#146;s management considers necessary to present fairly the financial position and results of operations for the periods presented.  These adjustments consist of normal recurring adjustments.  Certain information and footnote disclosures have been condensed or omitted pursuant to Securities and Exchange Commission rules and regulations.  These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company&#146;s annual report on Form 10-K for the year ended January 31, 2007.  Reclassifications have been made in prior year financial statements to conform to the current year presentation.  The results of operations for the
quarter ended October 31, 2007 are not necessarily indicative of the results to be expected for the full year ending January 31, 2008.  One of the reasons for this is that, generally, sales of the Company&#146;s piping systems have had a tendency to be higher during the summer months, due to weather related construction projects over much of the northern hemisphere.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><B><font SIZE=2>MFRI, INC. AND SUBSIDIARIES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><B><font SIZE=2>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><font size=2>(In thousands, except per share information)</font></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="643" style='border-collapse:collapse'>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="6" style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Three Months Ended</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>October 31,</font></b></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p
style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="6" style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Nine Months Ended</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>October 31,</font></b></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="286" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" valign=top style='border-bottom: solid black 1.0pt;padding: 0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>

        <td width="13" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="6" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" valign=top style=' border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" valign=top style='border-bottom: solid black 1.0pt;padding: 0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>

        <td width="14" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Net sales</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="53" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>65,086</font></p> </td>

        <td width="13" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="6" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="55" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>64,182</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="53" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>180,984</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="54" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>164,656</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=2>Cost of sales</font></p> </td>

        <td width="14" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>53,886</font></p> </td>

        <td width="13" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="6" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>49,815</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>146,715</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="54" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>127,963</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Gross profit</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>11,200</font></p> </td>

        <td width="13" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="6" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>14,367</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>34,269</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="54" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>36,693</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="6" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="54" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Operating expenses:</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="6" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="54" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Selling expenses</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,749</font></p> </td>

        <td width="13" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="6" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,503</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10,804</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="54" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10,351</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=2>General and administrative expenses</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,141</font></p> </td>

        <td width="13" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="6" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,569</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>17,803</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="54" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>16,301</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:34.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Total operating expenses</font></p> </td>

        <td width="14" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,890</font></p> </td>

        <td width="13" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="6" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,072</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>28,607</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="54" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>26,652</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="6" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="54" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Income from operations</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,310</font></p> </td>

        <td width="13" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="6" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,295</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,662</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="54" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10,041</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="6" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="54" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Income (loss) from joint venture</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(27</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="6" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>149</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="54" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>432</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=2>Interest expense &#150; net</font></p> </td>

        <td width="14" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>664</font></p> </td>

        <td width="13" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="6" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>729</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,751</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="54" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,906</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Income before income taxes</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>619</font></p> </td>

        <td width="13" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="6" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,715</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,911</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="54" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>8,567</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="6" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="54" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=2>Income tax expense (benefit)</font></p> </td>

        <td width="14" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(594</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="6" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,995</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>215</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="54" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,382</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom:0pt'><font size=2>Net income </font></p> </td>

        <td width="14" valign=top style='border-bottom:double black 2.25pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="53" valign=top style='border-bottom:double black 2.25pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,215</font></p> </td>

        <td width="13" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="6" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='border-bottom:double black 2.25pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="55" valign=top style='border-bottom:double black 2.25pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,720</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='border-bottom:double black 2.25pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="53" valign=top style='border-bottom:double black 2.25pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,696</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=top style='border-bottom:double black 2.25pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="54" valign=top style='border-bottom:double black 2.25pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,185</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:18.0pt;text-indent:-24.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:18.0pt;text-indent:-18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Weighted average number of common shares outstanding &#150; basic</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,652</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="6" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,381</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,600</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="54" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,323</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:18.0pt;text-indent:-18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Weighted average number of common shares outstanding - diluted</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,880</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="6" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,677</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,832</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="54" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,571</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Basic earnings per share: </font></p>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net income </font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.18</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="6" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="55" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.51</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.56</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="54" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.97</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Diluted earnings per share: </font></p>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net income </font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.18</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="6" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="55" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.48</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.54</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="54" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.93</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>See notes to condensed consolidated financial statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>1</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>
<B><font SIZE=2>MFRI, INC. AND SUBSIDIARIES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><B><font SIZE=2>CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)</font></B></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="677" style='border-collapse:collapse'>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><i><font size=2>(In thousands)</font></i><i></i></p> </td>

        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>October 31,</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" valign=top style='border-bottom: solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>January 31,</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>

        <td width="18" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Assets</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=top style='border-top:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=top style='border-top:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Current Assets:</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Cash and cash equivalents</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="70" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,665</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="74" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>565</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Restricted cash</font>                                      </p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>727</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>540</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:22.05pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:22.05pt'>
<p style='margin-left:36.0pt;text-indent:-18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Trade accounts receivable, less allowance for doubtful accounts of $462 at October 31, 2007 and $352 at January 31, 2007</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:22.05pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:22.05pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>45,063</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:22.05pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:22.05pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:22.05pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:22.05pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>35,056</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:22.05pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Inventories, net</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>42,505</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>35,155</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:18.0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Costs and estimated earnings in excess of billings on </font></p>
<p style='margin-left:18.0pt;text-indent:16.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>uncompleted contracts</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,188</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,974</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Deferred income taxes</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,674</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,382</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Prepaid expenses and other current assets</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,125</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,326</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Accounts receivable &#150; related company</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>305</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>583</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>Income taxes receivable</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>255</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>93</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:34.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total current assets</font></p> </td>

        <td width="16" valign=top style='border-top:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=top style='border-top:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>102,505</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='border-top:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=top style='border-top:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>80,674</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:9.9pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:9.9pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:9.9pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:9.9pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:9.9pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:9.9pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:9.9pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:9.9pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:9.9pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Property, plant and equipment, net</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>35,228</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>33,441</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:6.3pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:6.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:6.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:6.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:6.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:6.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:6.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:6.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:6.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:6.75pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:6.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other Assets:</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:6.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:6.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:6.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:6.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:6.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=top style='padding:0pt 5.4pt 0pt 5.4pt; height:6.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:6.75pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Goodwill</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,783</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,613</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:18.0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Cash surrender value of officers&#146; life insurance policies</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,159</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,491</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:18.0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Long term deferred tax asset</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,860</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>913</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Patents, net of accumulated amortization</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>376</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>392</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>Other assets</font></p> </td>

        <td width="16" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>395</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,916</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:34.5pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>Total other assets</font></p> </td>

        <td width="16" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>7,573</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>7,325</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=2>Total Assets</font></p> </td>

        <td width="16" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="70" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>145,308</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="74" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>121,440</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Liabilities and Stockholders&#146; Equity</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Current Liabilities:</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Trade accounts payable</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="70" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>23,160</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="74" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>20,919</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Commissions payable</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>7,768</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,908</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:18.0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Customer deposits</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,313</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,454</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Current maturities of long-term debt</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,111</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,191</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other accrued liabilities</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,644</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,119</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:18.0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Billings in excess of costs and estimated earnings </font></p>
<p style='margin-left:54.0pt;text-indent:-18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>on uncompleted contracts</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,241</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,270</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Accrued compensation and payroll taxes</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,673</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,480</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:18.0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>Accounts payable &#150; related company</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>88</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>599</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:34.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total current liabilities</font></p> </td>

        <td width="16" valign=bottom style='border-top:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='border-top:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>51,998</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='border-top:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='border-top:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>49,940</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.05pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.05pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.05pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.05pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.05pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.05pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.05pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.05pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.05pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Long-Term Liabilities:</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Long-term debt, less current maturities</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>26,356</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>29,844</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>Other</font></p> </td>

        <td width="16" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,129</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,840</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:34.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total long-term liabilities</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>30,485</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>32,684</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Stockholders&#146; Equity:</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:36.0pt;text-indent:-18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Common stock, $.01 par value, authorized &#150; 50,000 shares in October 2007 and January 2007; 6,653 issued and outstanding in October 2007 and 5,530 issued and outstanding in January 2007</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>67</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>55</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Additional paid-in capital</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>45,282</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>25,327</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Retained earnings</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>16,228</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>13,037</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>Accumulated other comprehensive income</font></p> </td>

        <td width="16" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,248</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>397</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:34.5pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>Total stockholders&#146; equity</font></p> </td>

        <td width="16" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="70" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>62,825</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>38,816</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:5.4pt'>

        <td width="452" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=2>Total Liabilities and Stockholders&#146; Equity</font></p> </td>

        <td width="16" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="70" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>145,308</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="74" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt 5.4pt 0pt 5.4pt;height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>121,440</font></p> </td>

        <td width="18" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; height:5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>See notes to condensed consolidated financial statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>2</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<B><font SIZE=2>MFRI, INC. AND SUBSIDIARIES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><B><font SIZE=2>CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)</font></B></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='border-collapse:collapse'>
    <tr >

        <td valign=top style='background:white;padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align: left;margin-top:1.0pt;margin-bottom:0pt'><i><font size=2>(In thousands)</font></i><i></i></p> </td>

        <td width="16" valign=bottom style='background:white;padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td colspan="7" valign=bottom style=' border-bottom:solid black 1.0pt; background:white;padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Nine Months Ended</font></b><br> <b><font size=2>October 31,</font></b></p> </td>

        <td width="16" valign=bottom style='background:white;padding:0pt 0pt 0pt 0pt'>
<p
style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.1pt'>

        <td valign=top style='background:white;padding:0pt 0pt 0pt 0pt; height:12.1pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align: left;margin-top:1.0pt;margin-bottom:0pt'><i>&nbsp;</i></p> </td>

        <td width="16" valign=bottom style='background:white;padding:0pt 0pt 0pt 0pt; height:12.1pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt;  background:white;padding:0pt 0pt 0pt 0pt;height:12.1pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>

        <td width="16" valign=bottom style='border-top:solid black 1.0pt; background:white;padding:0pt 0pt 0pt 0pt; height:12.1pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='border-top:solid black 1.0pt; background:white;padding:0pt 0pt 0pt 0pt; height:12.1pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='border-top:solid black 1.0pt; background:white;padding:0pt 0pt 0pt 0pt; height:12.1pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td colspan="2" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  background:white;padding:0pt 0pt 0pt 0pt;height:12.1pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>

        <td width="16" valign=bottom style='background:white;padding:0pt 0pt 0pt 0pt; height:12.1pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Cash Flows from Operating Activities:</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='border-top:solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='border-top:solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Net income</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>3,696</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>5,185</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:42.0pt;text-indent:-12.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Adjustments to reconcile net income to net cash flows from operating activities:</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:17.3pt;text-indent:24.7pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Depreciation and amortization</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:29.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:29.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>3,351</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:27.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:9.4pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,909</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:17.3pt;text-indent:24.7pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Change in cash surrender value of officers&#146; life insurance policies</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:31.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:31.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(668</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:32.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:32.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(75</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:17.3pt;text-indent:24.7pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Stock-based compensation expense</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:29.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:29.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>331</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:27.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:9.4pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>94</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:17.3pt;text-indent:24.7pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Gain on sale of marketable securities</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:29.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:29.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(258</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:27.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:9.4pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>0</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:17.3pt;text-indent:24.7pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Deferred income taxes</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:29.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:29.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(203</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:27.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:9.4pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>177</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:17.3pt;text-indent:24.7pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Provision for uncollectible accounts</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:31.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:32.5pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>97</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:32.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:32.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:42.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Loss on sale of fixed assets</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>11</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>8</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:42.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Income from joint venture</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>0</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:32.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(432</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:42.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Changes in operating assets and liabilities:</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:66.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Accounts receivable</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:29.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(9,530</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:15.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:15.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(14,454</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:66.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Inventories</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:26.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:26.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(6,059</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:15.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:15.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(10,802</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:66.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Accounts payable</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>4,420</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:19.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:19.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>4,985</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:66.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Other assets and liabilities</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,019</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:19.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:19.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,677</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:66.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Customer deposits</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>859</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:19.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:19.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(848)</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:66.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Accrued compensation and payroll taxes</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>521</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:19.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:19.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,465</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:66.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Prepaid expenses and other current assets</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:29.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:29.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(346</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:23.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:23.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>314</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:66.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>Income taxes payable</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='border-bottom:solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(297</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='border-bottom:solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:19.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:19.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,355</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>Net Cash Flows from Operating Activities</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='border-bottom:solid black 1.0pt;  padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:26.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:26.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(3,056</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='border-bottom:solid black 1.0pt;  padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:15.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:15.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(7,440</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='height:3.6pt'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt;height:3.6pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt;height:3.6pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt;height:3.6pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt;height:3.6pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt; height:3.6pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Cash Flows from Investing Activities:</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Purchases of property and equipment</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(4,522</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(6,565</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Distributions from joint venture</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>286</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>450</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Proceeds from sales of marketable securities</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>258</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>0</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>Proceeds from sales of property and equipment</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>29</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>0</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>Net Cash Flows from Investing Activities</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(3,949</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:23.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:9.4pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(6,115</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='height:3.6pt'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt;height:3.6pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt;height:3.6pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt;height:3.6pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt;height:3.6pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt; height:3.6pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Cash Flows from Financing Activities:</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Repayment of debt</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:13.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:13.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(66,234</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:15.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:15.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(116,438</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Borrowings under revolving, term and mortgage loans</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:13.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:13.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>58,289</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:15.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:15.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>125,998</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Issuance of stock</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:13.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:13.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>18,332</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:15.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:15.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>0</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Increase (decrease) in cash overdrafts</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:13.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:13.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(2,583</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:15.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:15.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,393</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Tax benefit of stock options exercised</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:34.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>814</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>349</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Stock options exercised</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:34.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:34.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>489</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>445</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>Payments on capitalized lease obligations</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='border-bottom:solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:34.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:34.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(144</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='border-bottom:solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(7</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>Net Cash Flows from Financing Activities</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='border-bottom:solid black 1.0pt;  padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:21.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:21.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>8,963</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='border-bottom:solid black 1.0pt;  padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:19.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='border-bottom: solid black 1.0pt;padding: 0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:19.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>12,740</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:3.6pt'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:3.6pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt;height:3.6pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt;height:3.6pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt; height:3.6pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt;height:3.6pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt;height:3.6pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt; height:3.6pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>Effect of Exchange Rate Changes on Cash and Cash Equivalents</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='border-bottom:solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:31.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:31.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>142</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='border-bottom:solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:28.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:28.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(50</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Net Increase (Decrease) in Cash and Cash Equivalents</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:26.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='border-top:solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:26.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,100</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:27.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='border-top:solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:27.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(865</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>Cash and Cash Equivalents &#150; Beginning of Period</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='border-bottom:solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:29.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:29.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>565</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='border-bottom:solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:27.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:27.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,114</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>Cash and Cash Equivalents &#150; End of Period</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='border-bottom:double black 2.25pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="81" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,665</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='border-bottom:double black 2.25pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="81" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>249</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:7.2pt'>

        <td valign=top style='padding:0pt 0pt 0pt 0pt; height:7.2pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt; height:7.2pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt;height:7.2pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt;height:7.2pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt; height:7.2pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt; height:7.2pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt; height:7.2pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt;height:7.2pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt;height:7.2pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt; height:7.2pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Supplemental cash flow information:</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:17.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Cash paid for:</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:36.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Interest, net of capitalized amounts</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,778</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:3.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,857</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:36.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Income taxes paid </font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:34.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:34.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>424</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-0.7pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:23.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="81" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:23.0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>612</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 1.45pt'>
<p style='margin-left:-2.25pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>See notes to condensed consolidated financial statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
</p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>3</font></p>
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<p style='page-break-before:always'></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><B><font SIZE=2>MFRI, INC. AND SUBSIDIARIES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><B><font SIZE=2>NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><B><font SIZE=2>OCTOBER 31, 2007</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse; '>
    <tr >

        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>

        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>The unaudited financial statements herein have been prepared by the Company in accordance with generally accepted accounting principles and pursuant to the rules and regulations of the Securities and Exchange Commission.  Accordingly, footnote disclosures, which would substantially duplicate the disclosures, contained in the January 31, 2007 audited financial statements have been omitted from these interim financial statements.  Interim financial statements should be read in conjunction with the financial statements and the notes
thereto included in the Company&#146;s latest Annual Report on Form 10-K.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse; '>
    <tr >

        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>

        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>At October 31, 2007, the Company has equity-based compensation plans from which stock-based compensation awards can be granted to eligible employees, officers or directors.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in; text-indent:-0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>Effective February 1, 2006, the Company adopted the fair value recognition provision of Statement of Financial Accounting Standards (&#147;SFAS&#148;) No.&nbsp;123 (revised 2004), &#147;Share-Based Payment&#148; (&#147;SFAS 123R&#148;) using the modified-prospective-transition method.  Under this transition method, compensation cost recognized includes compensation costs for all share-based payments granted prior to, but not vested as of February&nbsp;1, 2006 based on the fair value at grant date estimated in accordance with SFAS 123.  The Company has awarded 152,700 options stock-based compensation to employees, officers or directors during the nine-month period ended October 31, 2007.  The stock-based compensation expense for the three and nine months ended October 31, 2007 and 2006 was as follows: </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="397" style='margin-left:18.0pt;border-collapse:collapse; '>
    <tr >

        <td width="196" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><i><font size=2>(In thousands)</font></i></p> </td>

        <td width="21" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="72" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>

        <td width="42" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="66" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td> </tr>
    <tr >

        <td width="196" valign=top style='padding:0pt 5.4pt 0pt 5.4pt '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Three-month period</font></p> </td>

        <td width="21" valign=top style='padding:0pt 5.4pt 0pt 5.4pt '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="72" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>162</font></p> </td>

        <td width="42" valign=top style='padding:0pt 5.4pt 0pt 5.4pt '>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="66" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>59</font></p> </td> </tr>
    <tr >

        <td width="196" valign=top style='padding:0pt 5.4pt 0pt 5.4pt '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Nine-month period</font></p> </td>

        <td width="21" valign=top style='padding:0pt 5.4pt 0pt 5.4pt '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="72" valign=top style='padding:0pt 5.4pt 0pt 5.4pt '>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>331</font></p> </td>

        <td width="42" valign=top style='padding:0pt 5.4pt 0pt 5.4pt '>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="66" valign=top style='padding:0pt 5.4pt 0pt 5.4pt '>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>94</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>The fair values of the option awards granted prior to, but not vested as of, July 2007 and 2006 respectively, were estimated on the grant dates using the Black-Scholes option pricing model and the assumptions shown in the following table:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="562" style='margin-left:23.4pt;border-collapse:collapse; '>
    <tr >

        <td width="264" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><i>&nbsp;</i></p> </td>

        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Nine Months Ended</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>October 31, 2007</font></b></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p
style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Nine Months Ended</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>October 31, 2006</font></b></p> </td> </tr>
    <tr >

        <td width="264" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Expected volatility</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="120" valign=top style='border-top:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>46.81% - 52.23%</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="18" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="112" valign=top style='border-top:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>46.81% - 52.23%</font></p> </td> </tr>
    <tr >

        <td width="264" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Risk-free interest rate</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="120" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2.93% - 5.16%</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="18" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="112" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2.93% - 5.16%</font></p> </td> </tr>
    <tr >

        <td width="264" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Dividend yield</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="120" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0%</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="18" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="112" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0%</font></p> </td> </tr>
    <tr >

        <td width="264" valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Expected life in years</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="120" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5 - 7</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="18" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="112" valign=top style='padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>7</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="600" style='margin-left:0pt;border-collapse:collapse; '>
    <tr >

        <td width="16" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  nowrap colspan="2" valign=top style='padding:0pt 0pt 0pt 0pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>3.</font></p> </td>

        <td width="229" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><i><b><font size=2>Inventories consisted of the following:</font></b></i></p> </td>

        <td style='padding:0pt 0pt 0pt 0pt'  colspan="8">
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >

        <td style='padding:0pt 0pt 0pt 0pt'
colspan="2">
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>

        <td  nowrap colspan="3" valign=bottom style=' padding:0pt 5.4pt 0pt 5.4pt;'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><i><font size=2> (In thousands)</font></i><i></i></p> </td>

        <td  nowrap colspan="2" valign=top style=' border-bottom:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt;'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>October 31,</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>

        <td width="16" nowrap valign=top style='padding:0pt 5.4pt 0pt 5.4pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" nowrap valign=top style='padding:0pt 5.4pt 0pt 5.4pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  nowrap colspan="2" valign=top style=' border-bottom:solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt;'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>January 31,</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>

        <td width="17" nowrap valign=top style='padding:0pt 5.4pt 0pt 5.4pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td style='padding:0pt 0pt 0pt 0pt'  colspan="2">
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>

        <td  nowrap colspan="3" valign=bottom style=' padding:0pt 5.4pt 0pt 5.4pt;'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Raw materials</font></p> </td>

        <td width="16" nowrap valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="71" nowrap valign=top style='border-top: solid black 1.0pt;padding:0pt 5.4pt 0pt 5.4pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>31,597</font></p> </td>

        <td width="16" nowrap valign=top style='padding:0pt 5.4pt 0pt 5.4pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" nowrap valign=top style='padding:0pt 5.4pt 0pt 5.4pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" nowrap valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="74" nowrap valign=top style='border-top: solid black 1.0pt;padding:0pt 5.4pt 0pt 5.4pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>27,982</font></p> </td>

        <td width="17" nowrap valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td style='padding:0pt 0pt 0pt 0pt'  colspan="2">
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>

        <td  nowrap colspan="3" valign=bottom style=' padding:0pt 5.4pt 0pt 5.4pt;'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Work in progress</font></p> </td>

        <td width="16" nowrap valign=top style='padding:0pt 5.4pt 0pt 5.4pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="71" nowrap valign=top style='padding:0pt 5.4pt 0pt 5.4pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,847</font></p> </td>

        <td width="16" nowrap valign=top style='padding:0pt 5.4pt 0pt 5.4pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" nowrap valign=top style='padding:0pt 5.4pt 0pt 5.4pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" nowrap valign=top style='padding:0pt 5.4pt 0pt 5.4pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" nowrap valign=top style='padding:0pt 5.4pt 0pt 5.4pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,644</font></p> </td>

        <td width="17" nowrap valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td style='padding:0pt 0pt 0pt 0pt'  colspan="2">
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>

        <td  nowrap colspan="3" valign=bottom style=' padding:0pt 5.4pt 0pt 5.4pt;'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>Finished goods</font></p> </td>

        <td width="16" nowrap valign=top style='border-bottom: solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt;'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="71" nowrap valign=top style='border-bottom: solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt;'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,337</font></p> </td>

        <td width="16" nowrap valign=top style='padding:0pt 5.4pt 0pt 5.4pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" nowrap valign=top style='padding:0pt 5.4pt 0pt 5.4pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" nowrap valign=top style='border-bottom: solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt;'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" nowrap valign=top style='border-bottom: solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt;'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,803</font></p> </td>

        <td width="17" nowrap valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td style='padding:0pt 0pt 0pt 0pt'  colspan="2">
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>

        <td  nowrap colspan="3" valign=bottom style=' padding:0pt 5.4pt 0pt 5.4pt;'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Sub total</font></p> </td>

        <td width="16" nowrap valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="71" nowrap valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>43,781</font></p> </td>

        <td width="16" nowrap valign=top style='padding:0pt 5.4pt 0pt 5.4pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" nowrap valign=top style='padding:0pt 5.4pt 0pt 5.4pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" nowrap valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" nowrap valign=top style='padding:0pt 5.4pt 0pt 5.4pt;'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>36,429</font></p> </td>

        <td width="17" nowrap valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td style='padding:0pt 0pt 0pt 0pt'  colspan="2">
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>

        <td  nowrap colspan="3" valign=bottom style=' padding:0pt 5.4pt 0pt 5.4pt;'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>Less: Inventory allowance</font></p> </td>

        <td width="16" nowrap valign=top style='border-bottom: solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt;'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="71" nowrap valign=top style='border-bottom: solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt;'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,276</font></p> </td>

        <td width="16" nowrap valign=top style='padding:0pt 5.4pt 0pt 5.4pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" nowrap valign=top style='padding:0pt 5.4pt 0pt 5.4pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" nowrap valign=top style='border-bottom: solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt;'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="74" nowrap valign=top style='border-bottom: solid black 1.0pt; padding:0pt 5.4pt 0pt 5.4pt;'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,274</font></p> </td>

        <td width="17" nowrap valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td style='padding:0pt 0pt 0pt 0pt'  colspan="2">
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td>

        <td  nowrap colspan="3" valign=bottom style=' padding:0pt 5.4pt 0pt 5.4pt;'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=2>Inventory, net</font></p> </td>

        <td width="16" nowrap valign=top style='border-bottom: double black 2.25pt;padding: 0pt 5.4pt 0pt 5.4pt;'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="71" nowrap valign=top style='border-bottom: double black 2.25pt;padding: 0pt 5.4pt 0pt 5.4pt;'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>42,505</font></p> </td>

        <td width="16" nowrap valign=top style='padding:0pt 5.4pt 0pt 5.4pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" nowrap valign=top style='padding:0pt 5.4pt 0pt 5.4pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="16" nowrap valign=top style='border-bottom: double black 2.25pt;padding: 0pt 5.4pt 0pt 5.4pt;'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="74" nowrap valign=top style='border-bottom: double black 2.25pt;padding: 0pt 5.4pt 0pt 5.4pt;'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>35,155</font></p> </td>

        <td width="17" nowrap valign=bottom style='padding:0pt 5.4pt 0pt 5.4pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td width="16" ></td>

        <td width="15" ></td>

        <td width="9" ></td>

        <td width="229" ></td>

        <td width="106" ></td>

        <td width="16" ></td>

        <td width="71" ></td>

        <td width="16" ></td>

        <td width="16" ></td>

        <td width="16" ></td>

        <td width="74" ></td>

        <td width="17" ></td> </tr> </table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse; '>
    <tr >

        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.</font></p> </td>

        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><b><font size=2>Goodwill:</font></b></i><font size=2> The Company reviews the carrying value of goodwill in accordance with Statement of Financial Accounting Standards (&#147;SFAS&#148;) No. 142, &#147;Goodwill and Other Intangible Assets&#148;, which requires that goodwill and other intangible assets with indefinite lives be analyzed for impairment on an annual basis or when there is reason to suspect that their values have been impaired.  For the 2007 and 2006 evaluations, the fair value was determined using discounted cash flows and other
market-related valuation models. Certain estimates and judgments are required in the application of the fair value models.  Based upon the Company&#146;s evaluations for 2007 and 2006, no impairment adjustment to goodwill was required.  Goodwill was $2,783,000 and $2,613,000 at October 31, 2007 and January 31, 2007, respectively.  As of October 31, 2007 and January 31, 2007, $1,100,000 of goodwill was allocated to the Industrial Process Cooling Equipment segment.  As of October 31, 2007 and January 31, 2007, $1,683,000 and $1,513,000, respectively, was allocated to the Filtration Products segment.  The change in goodwill was due to foreign currency translation.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in; text-indent:-0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>4</font></p>
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<p style='page-break-before:always'></p>
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<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse; '>
    <tr >

        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.</font></p> </td>

        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><b><font size=2>Other intangible assets with definite lives:</font></b></i><font size=2> Patents are capitalized and amortized on a straight-line basis over a period not to exceed the legal lives of the patents.  Patents, net of accumulated amortization, were $376,000 and $392,000 at October 31, 2007 and January 31, 2007, respectively.  Accumulated amortization was $2,072,000 and $2,055,000 at October 31, 2007 and January 31, 2007, respectively.  Future amortization over the next five years ending January 31, will be 2008 - $30,000, 2009 -
$27,000, 2010 - $23,000, 2011 - $21,000, 2012 - $18,000.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse; '>
    <tr >

        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>6.</font></p> </td>

        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><b><font size=2>Pension Plan for Hourly Rated Employees of Midwesco Filter Resources, Inc., Winchester, Virginia</font></b></i><font size=2>: The market-related value of plan assets at October 31, 2007 and January 31, 2007 were $4,126,623 and $3,869,122, respectively.  Net cost recognized was as follows:</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in; text-indent:-0.25in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="652" style='margin-left:18.0pt;border-collapse:collapse; '>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><i><font size=2>(In thousands)</font></i></p> </td>

        <td  colspan="6" style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Three Months Ended</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>October 31,</font></b></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p
style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="6" style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Nine Months Ended</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>October 31,</font></b></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="286" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><u><font size=2>Components of net periodic benefit cost</font></u><font size=2>:</font></p> </td>

        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt;  padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>

        <td width="14" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" valign=top style='border-top: solid black 1.0pt;padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt;  padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>

        <td width="14" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Service cost</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="53" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>28</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='border-top:solid black 1.0pt; padding:0pt 4.3pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="55" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>25</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="53" valign=bottom style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>85</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="53" valign=bottom style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>73</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Interest cost</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>56</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>50</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>167</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>148</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Expected return on plan assets</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(76</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(73</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(229</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(207</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Amortization of prior service cost</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>27</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>20</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>81</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>62</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>Recognized actuarial loss</font></p> </td>

        <td width="14" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>17</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net periodic benefit cost</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>35</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 4.3pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="55" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>27</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>104</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>93</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="286" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>&nbsp;Employer contribution remaining for fiscal year ending January 31, 2008 is expected to be $32,348.  As of October 31, 2007, $64,696 contributions were made.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse; '>
    <tr >

        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>7.</font></p> </td>

        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><b><font size=2>The basic weighted average shares reconcile to diluted weighted average shares as follows:</font></b></i></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="652" style='margin-left:18.0pt;border-collapse:collapse; '>
    <tr >

        <td width="285" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="6" style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Three Months Ended</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>October 31,</font></b></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p
style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="6" style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Nine Months Ended</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>October 31,</font></b></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="285" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><i><font size=2>(In thousands, except per share information)</font></i><i></i></p> </td>

        <td  colspan="2" valign=top style='border-bottom: solid black 1.0pt;padding: 0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>

        <td width="14" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" valign=top style='border-top: solid black 1.0pt;padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt;  padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>

        <td width="14" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="285" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net income </font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="53" valign=bottom style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,215</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="55" valign=bottom style='border-top:solid black 1.0pt; padding:0pt 2.15pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,720</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="53" valign=bottom style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,696</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="53" valign=bottom style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,185</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="285" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:18.0pt;text-indent:-18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Basic weighted average number of common shares outstanding</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,652</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=bottom style='padding:0pt 2.15pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,381</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,600</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,323</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="285" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>Dilutive effect of stock options</font></p> </td>

        <td width="14" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>228</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 2.15pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>296</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>232</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>248</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="285" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:18.0pt;text-indent:-18.0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=2>Weighted average number of common shares outstanding assuming full  dilution</font></p> </td>

        <td width="14" valign=top style='border-bottom:double black 2.25pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,880</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt 2.15pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,677</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,832</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,571</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="285" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Basic earnings per share net income</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.18</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="55" valign=bottom style='padding:0pt 2.15pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.51</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.56</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.97</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="285" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Diluted earnings per share net income</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="53" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.18</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="55" valign=bottom style='padding:0pt 2.15pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.48</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.54</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.93</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:7.8pt'>

        <td width="285" valign=bottom style='padding:0pt 1.45pt 0pt 0pt; height:7.8pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt; height:7.8pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='padding:0pt 1.45pt 0pt 0pt; height:7.8pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt; height:7.8pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt; height:7.8pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt; height:7.8pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=top style='padding:0pt 1.45pt 0pt 0pt; height:7.8pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt; height:7.8pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt; height:7.8pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt; height:7.8pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='padding:0pt 1.45pt 0pt 0pt; height:7.8pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt; height:7.8pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt; height:7.8pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=top style='padding:0pt .7pt 0pt 0pt; height:7.8pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=top style='padding:0pt 1.45pt 0pt 0pt; height:7.8pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt; height:7.8pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="285" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="6" style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Three Months Ended</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>October 31,</font></b></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="6" style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Nine Months Ended</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>October 31,</font></b></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="285" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" valign=top style='border-bottom: solid black 1.0pt;padding: 0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>

        <td width="14" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" valign=top style='border-top: solid black 1.0pt;padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" valign=top style=' border-bottom:solid black 1.0pt;  padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>

        <td width="14" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="285" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:18.0pt;text-indent:-18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Stock options not included in the computation of diluted earnings per share of common stock because the option exercise prices exceeded the average market prices of the common shares</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>142,900</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='border-top:solid black 1.0pt; padding:0pt 4.3pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=bottom style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>142,900</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="285" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="285" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:18.0pt;text-indent:-18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Stock options with an exercise price below the average market price</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>427,942</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>702,435</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>427,942</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>702,435</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="285" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>As of December 11, 2007, a total of 120,768 stock options have been exercised since February 1, 2007.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="446" style='margin-left:0pt;border-collapse:collapse; '>
    <tr >

        <td width="16" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="24" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>8.</font></p> </td>

        <td width="407" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><b><font size=2>The components of comprehensive income, net of tax, were as follows:</font></b></i></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="649" style='margin-left:18.0pt;border-collapse:collapse; '>
    <tr >

        <td width="283" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="6" style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Three Months Ended</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>October 31,</font></b></p> </td>

        <td width="15" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p
style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="6" style='border-bottom:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Nine Months Ended</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>October 31,</font></b></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="283" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><i><font size=2>(In thousands)</font></i><i></i></p> </td>

        <td  colspan="2" valign=top style='border-bottom: solid black 1.0pt;padding: 0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>

        <td width="18" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" valign=top style=' border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>

        <td width="15" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" valign=top style='border-bottom: solid black 1.0pt;padding: 0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>

        <td width="14" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:10.9pt'>

        <td width="283" valign=bottom style='padding:0pt 1.45pt 0pt 0pt; height:10.9pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net income</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt;height:10.9pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="51" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt; height:10.9pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,215</font></p> </td>

        <td width="18" valign=top style='padding:0pt 1.45pt 0pt 0pt; height:10.9pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt; height:10.9pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt; height:10.9pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="55" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.0pt 0pt 0pt; height:10.9pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,720</font></p> </td>

        <td width="15" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 2.9pt; height:10.9pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt; height:10.9pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt;height:10.9pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="52" valign=bottom style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt; height:10.9pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,696</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt; height:10.9pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt; height:10.9pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt .7pt 0pt 0pt;height:10.9pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="53" valign=bottom style='border-top:solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt; height:10.9pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,185</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt; height:10.9pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="283" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Interest rate swap</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="51" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0</font></p> </td>

        <td width="18" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=bottom style='padding:0pt 1.0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(153</font></p> </td>

        <td width="15" valign=top style='padding:0pt 1.45pt 0pt 2.9pt'>
<p style='margin-left:-3.35pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="52" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(104</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr >

        <td width="283" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Change in foreign currency translation adjustments</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="51" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>574</font></p> </td>

        <td width="18" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=bottom style='padding:0pt 1.0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(17</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 1.45pt 0pt 4.3pt'>
<p style='margin-left:-4.65pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="52" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,033</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>215</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="283" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>Unrealized gain on marketable securities</font></p> </td>

        <td width="14" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="51" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0</font></p> </td>

        <td width="18" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 1.0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 1.45pt 0pt 4.3pt'>
<p style='margin-left:-4.65pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="52" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(184</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="283" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=2>Comprehensive income</font></p> </td>

        <td width="14" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="51" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,789</font></p> </td>

        <td width="18" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="55" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt 1.0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,550</font></p> </td>

        <td width="15" valign=top style='padding:0pt 1.45pt 0pt 2.9pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="52" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,547 </font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="53" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,296</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="283" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="51" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="18" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-9.05pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align: center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="55" valign=bottom style='padding:0pt 2.15pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="52" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="14" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="53" valign=bottom style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=top style='padding:0pt 1.45pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
</p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>5</font></p>
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<p style='page-break-before:always'></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>Accumulated other comprehensive income presented on the accompanying condensed consolidated balance sheets consists of the following:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="577" style='margin-left:18.0pt;border-collapse:collapse; '>
    <tr >

        <td width="368" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><i><font size=2>(In thousands)</font></i><i></i></p> </td>

        <td  colspan="2" valign=top style='border-bottom: solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>October 31,</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>

        <td width="10" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p
style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="3" valign=top style=' border-bottom:solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>January 31,</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>

        <td width="17" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td style='padding:0pt 0pt 0pt 0pt' width="2">
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >

        <td width="368" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Accumulated translation adjustment</font></p> </td>

        <td width="12" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="66" valign=top style='border-top:solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,964</font></p> </td>

        <td width="10" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="69" valign=top style='border-top:solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>932</font></p> </td>

        <td  colspan="3" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="368" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Interest rate swap</font></p> </td>

        <td width="12" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="66" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="69" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(3</font></p> </td>

        <td  colspan="3" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr >

        <td width="368" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:18.0pt;text-indent:-18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Minimum pension liability adjustment (net of cumulative tax benefit of  $338)</font></p> </td>

        <td width="12" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="66" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(716</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="69" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(716</font></p> </td>

        <td  colspan="3" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr >

        <td width="368" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:18.0pt;text-indent:-16.5pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>Unrealized gain on marketable securities (including a tax benefit of $87 at January 31, 2007)</font></p> </td>

        <td width="12" valign=top style='border-bottom:solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="66" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='border-bottom:solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="69" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>184</font></p> </td>

        <td  colspan="3" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="368" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=2>Accumulated other comprehensive income </font></p> </td>

        <td width="12" valign=bottom style='border-bottom:double black 2.25pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="66" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,248</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='border-bottom:double black 2.25pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="69" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>397</font></p> </td>

        <td  colspan="3" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr>

        <td width="368" ></td>

        <td width="12" ></td>

        <td width="66" ></td>

        <td width="10" ></td>

        <td width="15" ></td>

        <td width="13" ></td>

        <td width="69" ></td>

        <td width="6" ></td>

        <td width="17" ></td>

        <td width="2" ></td> </tr> </table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse; '>
    <tr >

        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>9.</font></p> </td>

        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><b><font size=2>Business Segment Reporting:</font></b></i><font size=2> The Company has three reportable segments under the criteria of SFAS No. 131, &#147;Disclosures about Segments of an Enterprise and Related Information.&#148;  The Filtration Products Business manufactures and sells a wide variety of filter elements for air filtration and particulate collection systems.  The Piping Systems Business engineers, designs, manufactures and sells specialty piping systems and leak detection and location systems.  The Industrial Process Cooling
Equipment Business engineers, designs, manufactures and sells chillers, cooling towers, plant circulating systems and accessories for industrial process applications.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in; text-indent:-0.25in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="598" style='margin-left:21.6pt;border-collapse:collapse; '>
    <tr >

        <td width="259" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><i><font size=2>(In thousands)</font></i><i></i></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="6" valign=top style=' border-bottom:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Three Months Ended</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>October 31,</font></b></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p
style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="6" style='border-bottom:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Nine Months Ended</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>October 31,</font></b></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="259" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" style='border-bottom:solid black 1.0pt;  padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>

        <td width="10" valign=top style='border-top:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=top style='border-top:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" valign=top style='border-bottom: solid black 1.0pt;padding: 0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>

        <td width="11" valign=top style='border-top:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='border-top:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Net sales:</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=top style='border-top:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:-3.65pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=top style='border-top:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="50" valign=top style='border-top:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Filtration Products</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>25,421</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:-3.65pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>24,970</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="50" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>72,731</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>62,175</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Piping Systems</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>29,584</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:-3.65pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>28,823</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="50" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>78,528</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>67,686</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Industrial Process Cooling Equipment</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,665</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:-3.65pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10,251</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="50" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>28,462</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>31,804</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>Corporate and Other</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>416</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:-3.65pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>138</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='border-bottom:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="50" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,263</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='border-bottom:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,991</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>Total net sales</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="48" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>65,086</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:-3.65pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="48" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>64,182</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='border-bottom:double black 2.25pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="50" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>180,984</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='border-bottom:double black 2.25pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="48" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>164,656</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Gross profit (loss):</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:-3.65pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="50" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Filtration Products</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,033</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:-3.65pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,297</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="50" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10,752</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>12,390</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Piping Systems</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,614</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:-3.65pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,474</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="50" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>16,469</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>15,056</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Industrial Process Cooling Equipment</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,557</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:-3.65pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,590</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="50" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>7,085</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,150</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>Corporate and Other</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(4</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:-3.65pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='border-bottom:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="50" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(37</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='border-bottom:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>97</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>Total gross profit</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="48" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>11,200</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:-3.65pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="48" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>14,367</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='border-bottom:double black 2.25pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="50" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>34,269</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='border-bottom:double black 2.25pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="48" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>36,693</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Income (loss) from operations:</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:-3.65pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="50" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Filtration Products</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:-3.65pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,557</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="50" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,173</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,227</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Piping Systems</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,398</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:-3.65pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,687</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="50" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10,251</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,437</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Industrial Process Cooling Equipment</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>69</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:-3.65pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>109</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="50" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(388</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,657</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>Corporate and Other</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(2,167</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom: 0pt'><font size=2>)</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(2,058</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='border-bottom:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="50" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(6,374</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='border-bottom:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(5,280</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>Income from operations</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="48" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,310</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:-3.65pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="48" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,295</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='border-bottom:double black 2.25pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="50" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,662</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='border-bottom:double black 2.25pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="48" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10,041</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:14.3pt'>

        <td width="259" valign=bottom style='padding:0pt .7pt 0pt 0pt; height:14.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Income (loss) before income taxes:</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt; height:14.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt;height:14.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=top style='padding:0pt .7pt 0pt 0pt;height:14.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=top style='padding:0pt .7pt 0pt 0pt; height:14.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=top style='padding:0pt .7pt 0pt 0pt; height:14.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=top style='padding:0pt .7pt 0pt 0pt;height:14.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=top style='padding:0pt .7pt 0pt 0pt;height:14.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt; height:14.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt; height:14.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt;height:14.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="50" valign=top style='padding:0pt .7pt 0pt 0pt;height:14.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=top style='padding:0pt .7pt 0pt 0pt; height:14.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt; height:14.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt;height:14.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=top style='padding:0pt .7pt 0pt 0pt;height:14.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt; height:14.3pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="259" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Filtration Products</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10</font></p> </td>

        <td width="10" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:-16.45pt;text-indent:18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,557</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="50" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,173</font></p> </td>

        <td width="11" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="48" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,227</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="259" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Piping Systems</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,371</font></p> </td>

        <td width="10" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:-3.65pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,836</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="50" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>10,251</font></p> </td>

        <td width="11" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,869</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="259" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Industrial Process Cooling Equipment</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>69</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:-3.65pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>109</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="50" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(388</font></p> </td>

        <td width="11" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,657</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="259" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:18.0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>Corporate and Other</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='border-bottom:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(2,831</font></p> </td>

        <td width="10" style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="10" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=top style='border-bottom:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(2,787</font></p> </td>

        <td width="13" style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="13" style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" style='border-bottom:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="50" style='border-bottom:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(8,125</font></p> </td>

        <td width="11" style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="13" style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" style='border-bottom:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" style='border-bottom:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(7,186</font></p> </td>

        <td width="13" style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr >

        <td width="259" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=2>Income before income taxes</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='border-bottom:double black 2.25pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="48" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>619</font></p> </td>

        <td width="10" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:-3.65pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=top style='border-bottom:double black 2.25pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="48" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,715</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='border-bottom:double black 2.25pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="50" valign=top style='border-bottom:double black 2.25pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,911</font></p> </td>

        <td width="11" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom: 0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='border-bottom:double black 2.25pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="48" valign=top style='border-bottom:double black 2.25pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>8,567</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse; '>
    <tr >

        <td width="28" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>10.</font></p> </td>

        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><b><font size=2>Related Party Transactions:</font></b></i><font size=2>  The Company provides certain services to a company primarily owned by two principal stockholders who are also members of management of the Company. </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.29in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.29in;text-align:left;'><font size=2>Related company accounts receivable of $305,000 and $583,000 were included in the receivable balances at October 31, 2007 and January 31, 2007 respectively.  Related company accounts payable of $88,000 and $599,000 were included in the payable balance at October 31, 2007 and January 31, 2007.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.29in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.29in;text-align:left;'><font size=2>The Company recorded revenue of $321,000 and $2,991,000 for the nine months ended October 31, 2007 and 2006 respectively pursuant to a contract wholly subcontracted to such company.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>6</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse; '>
    <tr >

        <td width="28" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>11.</font></p> </td>

        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><b><font size=2>Contingencies:  </font></b></i><font size=2>The Company is subject to various unresolved legal actions, which arise in the normal course of its business.  None of these matters is expected to have a material adverse effect on the Company&#146;s financial position or results of operations. However, the ultimate resolution of these matters could result in a change in the Company&#146;s estimate of its liability for these matters.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.29in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.33in;text-align:left;'><font size=2>The Company issues a standard warranty with the sale of its products and sells extended warranty contracts to customers.  The Company&#146;s recognition of warranty liability is based, generally, on analyses of warranty claims experiences in the operating units in the preceding years.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.33in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.33in;text-align:left;'><font size=2>Changes in the warranty liability in 2007 are summarized below: </font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="592" style='margin-left:24.0pt;border-collapse:collapse; '>
    <tr style='height:21.6pt'>

        <td width="312" valign=top style='padding:0pt 0pt 0pt 0pt; height:21.6pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><i><font size=2>(In thousands)</font></i></p> </td>

        <td width="16" valign=top style='padding:0pt 0pt 0pt 0pt; height:21.6pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" style='border-bottom:solid black 1.0pt; padding:0pt 0pt 0pt 0pt; height:21.6pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Nine  Months Ended October 31,</font></b></p>
<p
style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>October 31, 2007</font></b></p> </td>

        <td width="23" valign=top style='padding:0pt 0pt 0pt 0pt; height:21.6pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=top style='padding:0pt 0pt 0pt 0pt; height:21.6pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" style='border-bottom:solid black 1.0pt; padding:0pt 0pt 0pt 0pt; height:21.6pt'>
<p align=center style='margin:0pt;margin-bottom:.0001pt;text-align:center'><b><font size=2>Year Ended</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>January 31, 2007</font></b></p> </td>

        <td width="7" valign=top style='padding:0pt 0pt 0pt 0pt;height: 21.6pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Aggregate product warranty liability at beginning of year</font></p> </td>

        <td width="16" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="97" valign=bottom style='border-top:solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-3.65pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,259</font></p> </td>

        <td width="23" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="17" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="97" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>827</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Aggregate accruals related to product warranties</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="97" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-3.65pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,155</font></p> </td>

        <td width="23" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="17" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="97" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,996</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0.5pt'><font size=2>Aggregate reductions for payments</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="97" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(1,863</font></p> </td>

        <td width="23" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="17" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="97" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(1,535</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>Aggregate changes for pre-existing warranties</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="97" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(7</font></p> </td>

        <td width="23" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="17" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="97" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(29</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr >

        <td valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=2>Aggregate product warranty liability at end of year</font></p> </td>

        <td width="16" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="15" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="97" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,544</font></p> </td>

        <td width="23" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="17" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="97" valign=bottom style='border-bottom: double black 2.25pt;padding: 0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,259</font></p> </td>

        <td width="7" valign=bottom style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:-3.85pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse; '>
    <tr >

        <td width="28" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>12.</font></p> </td>

        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><b><font size=2>New Accounting Pronouncements: </font></b></i><font size=2> In December 2007, the Financial Accounting Standards Board (&#147;FASB&#148;) issued Financial Accounting Standard No.&nbsp;160, &#147;Noncontrolling Interests in Consolidation Financial Statements an amendment of ARB No. 51&#148;.  The objective of SFAS 160 is to improve the relevance, comparability, and transparency of the financial information that a reporting entity provides in its consolidated financial statements. SFAS 160 amends ARB No.&nbsp;51 to establish
accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary.  SFAS 160 also changes the way the consolidated income statement is presented, establishes a single method of accounting for changes in a parent&#146;s ownership interest in a subsidiary that do not result in deconsolidation, requires that a parent recognize a gain or loss in net income when a subsidiary is deconsolidated and expanded disclosures in the consolidated financial statements that clearly identify and distinguish between the interests of the parent&#146;s owners and the interest of the noncontrolling owners of a subsidiary. SFAS 160 is effective for financial statements issued for the fiscal years beginning on or after December&nbsp;15, 2008.  The Company does not expect the provisions to have a material impact on its consolidated financial statements.</font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.29in;text-align:left;'><font size=2>In July 2006, the FASB issued FASB Interpretation No. 48, &#147;Accounting for Uncertainty in Income Taxes &#150; an interpretation of FASB Statement No. 109&#148;, (&#147;FIN 48&#146;).  FIN 48 prescribes a comprehensive model for how a company should recognize, measure, present and disclose in its financial statements uncertain tax positions that it has taken or expects to take on a tax return.  In May 2007, the FASB issued FASB Staff Position FIN 48-1 that amends FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes (&#147;FIN 48-1&#148;). FIN 48-1 provides guidance on how an enterprise should determine whether a tax position is effectively settled for the purpose of recognizing previously unrecognized tax benefits.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.29in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.29in;text-align:left;'><font size=2>In the first quarter of 2007, the Company adopted FIN 48.  The total amount of unrecognized tax liability as of February 1, 2007 was approximately $504,300, all of which would impact the effective tax rate if recognized.  This was recorded as a decrease to retained earnings as of February 1, 2007.  During the nine- month period ending October&nbsp;31, 2007, the liability for income taxes associated with uncertain tax positions increased by $115,000 for a total of $619,300 at October&nbsp;31, 2007.  These non-current income tax liabilities are recorded in other long-term liabilities in the consolidated balance sheet at October&nbsp;31, 2007.  Included in the total unrecognized tax liability were estimated accrued interest of $38,300 and penalties of $31,300.  The Company&#146;s policy is to exclude interest and penalties from income tax expense.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.29in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.29in;text-align:left;'><font size=2>In February 2007, the FASB issued Financial Accounting Standard No.&nbsp;159, The Fair Value Option for Financial Assets and Financial Liabilities (&#147;SFAS 159&#148;).  SFAS 159 provides the option to report certain financial assets and liabilities at fair value, with the intent to mitigate volatility in financial reporting that can occur when related assets and liabilities are recorded on different bases.  This statement is effective February&nbsp;1, 2008.  The Company does not expect the provisions to have a material impact on its consolidated financial statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.29in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.29in;text-align:left;'><font size=2>In September 2006, FASB issued Financial Accounting Standard No.157, Fair Value Measurements (&#147;SFAS 157&#148;).  SFAS 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements.  SFAS 157 applies under other accounting pronouncements that require or permit fair value measurements, and accordingly, does not require any new </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.29in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>7</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.29in;text-align:left;'><font size=2>fair value measurements.  SFAS 157 is effective February&nbsp;1, 2008.  The Company does not expect the provisions to have a material impact on its consolidated financial statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.29in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="100%" style='margin-left:0pt;border-collapse:collapse; '>
    <tr >

        <td width="28" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>13.</font></p> </td>

        <td  valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><b><font size=2>Debt:  </font></b></i><font size=2>At January 31, 2007, the Company was in compliance with covenants under the Loan Agreement as defined below.  At October 31, 2007, the Company was not in compliance with a covenant under the Loan Agreement as defined below.  A waiver has been obtained for noncompliance of debt covenant for fiscal period ending on October 31, 2007, and on December 13, 2007, the Loan Agreement was amended to modify financial covenants.  </font></p> </td> </tr></table>
</div>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>In February 2007, the Company sold 1,003,000 shares of common stock at a price of $18.50 per share pursuant to the Company&#146;s existing shelf registration statement previously filed and declared effective by the U.S. Securities and Exchange Commission.  The net proceeds of $18,322,000 from such sale were utilized to pay down the revolving line of credit.  As a result, increased revolving line of credit borrowing capacity is available to finance future general business needs.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>On July 11, 2002, the Company entered into a secured loan and security agreement with a financial institution ("Loan Agreement").  The Loan Agreement was amended and restated on December 15, 2006.  Under the terms of the Loan Agreement, which matures on November 13, 2010, the Company can borrow up to $38,000,000, subject to borrowing base and other requirements, under a revolving line of credit.  The Loan Agreement covenants restrict debt, liens, and investments, do not permit payment of dividends, and require attainment of certain levels of profitability and cash flows.  Interest rates generally are based on options selected by the Company as follows: (a) a margin in effect plus a prime rate; or (b) a margin in effect plus the LIBOR rate for the corresponding interest period.  At October 31, 2007, the prime rate was 7.50%, and the margins added to the prime rate and the LIBOR rate, which
are determined each quarter based on the applicable financial statement ratio, were 0.25 and 1.75 percentage points, respectively.  Monthly interest payments were made as required.  As of October 31, 2007, the Company had borrowed $9,825,000 and had $21,250,000 available to it under the revolving line of credit.  In addition, $1,061,000 of availability was used under the Loan Agreement primarily to support letters of credit to guarantee amounts committed for inventory purchases.  The Loan Agreement requires that all payments by the Company's customers are deposited in a bank account from which all funds may only be used to pay the debt under the Loan Agreement.  At October 31, 2007, the amount of restricted cash was $727,000.  Cash required for operations is provided by draw-downs on the line of credit.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>
On October 18, 1995, the piping systems business Lebanon, Tennessee location
received $3,150,000 of proceeds of Industrial Revenue Bonds, which matured and
were paid in full on September 1, 2007.  These bonds had been fully secured by bank letters of credit.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>On September 20, 2000, the Company purchased an 8.1-acre parcel of land with a 131,000-square foot building in Niles, Illinois, from two principal stockholders, who are also members of management, for approximately $4,438,000.  This amount included the assumption of a $2,500,000 mortgage note with a remaining balance of $2,405,000.  The loan matures in the fourth quarter of 2007 and will be paid in full.  The Company is in process of obtaining new financing on this property. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="602" style='margin-left:0pt;border-collapse:collapse; '>
    <tr >

        <td width="16" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="61" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 2.</font></b></p> </td>

        <td width="525" nowrap valign=top style='padding:0pt 0pt 0pt 0pt; '>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</font></b></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The statements contained under the caption &#147;Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations&#148; and certain other information contained elsewhere in this report, which can be identified by the use of forward-looking terminology such as &#147;may,&#148; &#147;will,&#148; &#147;expect,&#148; &#147;continue,&#148; &#147;remains,&#148; &#147;intend,&#148; &#147;aim,&#148; &#147;should,&#148; &#147;prospects,&#148; &#147;could,&#148; &#147;future,&#148; &#147;potential,&#148; &#147;believes,&#148; &#147;plans,&#148; &#147;likely,&#148;  and &#147;probable,&#148; or the negative thereof or other variations thereon or comparable terminology, constitute &#147;forward-looking statements&#148; within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors
created thereby.  These statements should be considered as subject to the many risks and uncertainties that exist in the Company&#146;s operations and business environment.  Such risks and uncertainties could cause actual results to differ materially from those projected.  These uncertainties include, but are not limited to, economic conditions, market demand and pricing, competitive and cost factors, raw material availability and prices, global interest rates, currency exchange rates, labor relations and other risk factors.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><U><B><font SIZE=2>RESULTS OF OPERATIONS</font></B></U></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>MFRI, Inc.</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>MFRI, Inc. ("MFRI", the "Company" or the "Registrant") is engaged in the manufacture and sale of products in three distinct business segments:  filtration products, piping systems and industrial process cooling equipment.  Generally, sales </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>8</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>of the Company's domestic piping systems have had a tendency to be higher during the late spring, summer and early fall months (second and third quarters), due to favorable weather for construction over much of the North America.  The Company&#146;s other businesses do not demonstrate seasonality.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Our analysis presented below is organized to provide instructive information for understanding the business going forward.  However, this discussion should be read in conjunction with the consolidated financial statements, including the notes thereto.  An overview of the segment results is provided in Note 9 of the Notes to Condensed Consolidated Financial Statements (Unaudited) contained in Item 1 of this report.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><i><font size=2>Three months ended October 31, 2007 vs. Three months ended October 31, 2006</font></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Net sales of $65,086,000 for the quarter increased 1.4% from $64,182,000 for the comparable quarter in the prior year.  (See discussion of each business segment below.)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Gross profit of $11,200,000 decreased 22.1% from $14,367,000 in the prior-year quarter, and gross margin decreased to 17.2% in the current-year quarter from 22.4 % in the prior-year quarter. (See discussion of each business segment below.)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Selling expenses increased 7.0% to $3,749,000 for the quarter from $3,503,000 in the prior-year quarter primarily due to increased staffing in the piping systems business and increased commission expense related to higher sales and increased advertising costs in the filtration product business.  (See discussion of each business segment below.)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>General and administrative expenses increased 10.3% to $6,141,000 for the quarter from $5,569,000 in the prior-year quarter.  The increase was mainly due to General Corporate expense increases including incremental expenses of $308,000 incurred to comply with Sarbanes-Oxley 404 (including consulting fees) that were not incurred in 2006, inclusion of $199,000 of the general and administrative expense of the newly created subsidiary, and stock-based compensation expense of $162,000 resulting from
the implementation of SFAS123R.  These expenses were offset by decreased management incentive expense and lower deferred compensation expense.  (See discussion of each business segment below.)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Net income decreased to $1,215,000 in the current quarter from $2,720,000 in the prior-year quarter primarily from increases in the General Corporate expenses and reasons summarized above and discussed in more detail below.  (See discussion on Taxes below.)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><font size=2>Nine months ended October 31, 2007 vs. Nine months ended October 31, 2006</font></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Net sales of $180,984,000 for the nine months increased 9.9% from $164,656,000 for the comparable period in the prior year.  (See discussion of each business segment below.)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Gross profit of $34,269,000 for the nine months decreased 6.6% from $36,693,000 for the comparable period in the prior year, and gross margin decreased to 18.9% in the current year from 22.3% in the prior year.  (See discussion of each business segment below.)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Selling expenses increased 4.4% to $10,804,000 for the nine months from $10,351,000 for the comparable period in the prior year due primarily to increased staffing primarily in the United Arab Emirates location (&#147;U.A.E.&#148;).  (See discussion of each business segment below.)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>General and administrative expenses increased 9.2% to $17,803,000 for the nine months from $16,301,000 for the comparable period in the prior year.  The increase was mainly due to General Corporate expense increases, including the inclusion of $505,000 of general and administrative expense from the newly created subsidiary, incremental expenses of $446,000 incurred to comply with Sarbanes-Oxley 404 (including consulting fees) that were not incurred in 2006, additional personnel, and stock-based compensation expense of $331,000 resulting from
the implementation of SFAS123R.  These expenses were offset by decreased management incentive expense and lower deferred compensation expense.  (See discussion of each business segment below.)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Net income decreased to $3,696,000 for the nine months from $5,185,000 for the comparable period in the prior year.  The decrease in net income was primarily due to increases in General Corporate expenses offset by a decrease in tax expense.  (See discussion of Taxes below.) </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>9</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Filtration Products Business</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><i><font size=2>Three months ended October 31, 2007 vs. Three months ended October 31, 2006</font></i></p>
<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>&nbsp;</p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Net sales for the quarter increased 1.8% to $25,421,000 from $24,970,000 for the comparable quarter in the prior year.  This increase was primarily the result of increased sales in all product lines.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Gross margin decreased to 11.9% in the current quarter from 21.2% in the prior-year quarter primarily due to the highly competitive marketplace, increasing cost of raw materials, customer mix and additional post-sale customer support costs,
including replacement and rework of a sizeable customer order produced in the
South Africa subsidiary factory.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Selling expenses increased to $1,812,000 or 7.1% of net sales in the current quarter from $1,696,000 or 6.8% of net sales for the comparable quarter last year.  The increase was primarily due to increased commission expense related to higher sales and increased advertising costs. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>General and administrative expenses increased to $1,211,000 or 4.7% of net sales in the current quarter from $1,045,000 or 4.2% of net sales in the prior-year quarter.  The increase was primarily the result of increased staffing at the South African and Denmark facilities.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><i><font size=2>Nine months ended October 31, 2007 vs. Nine months ended October 31, 2006</font></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Net sales for the nine months increased 17.0% to $72,731,000 from $62,175,000 for the comparable period in the prior year.  This increase was primarily the result of increased sales in all product lines.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Gross margin decreased for the nine months to 14.8% in the current year from 19.9% in the prior year, primarily due to the highly competitive marketplace, increasing cost of raw materials, customer mix and additional post-sale customer support costs,
including replacement and rework of a sizeable customer order produced in the
South Africa subsidiary factory.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Selling expense for the nine months increased to $5,075,000 from $4,973,000 for the comparable period in the prior year.  Selling expense decreased as a percentage of net sales to 7.0% from 8.0% for the comparable period in the prior year.  The dollar increase was primarily the result of increased staffing at the South African facility and increased advertising costs. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>General and administrative expenses increased to $3,505,000 or 4.8% of net sales in the current year from $3,190,000 or 5.1% of net sales in the prior year.  The increase was primarily the result of increased staffing at the South African and Denmark facilities and increased travel costs.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Piping Systems Business</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Generally, sales of the Company's domestic piping systems have had a tendency to be higher during the late spring, summer and early fall months (second and third quarters), due to favorable weather for construction over much of the North America.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><font size=2>Three months ended October 31, 2007 vs. Three months ended October 31, 2006</font></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Net sales increased 2.6% to $29,584,000 in the current quarter from $28,823,000 in the prior-year quarter. This increase was primarily due to $8,534,000 in sales from the U.A.E. compared to $501,000 in sales from the U.A.E. in the prior year offset by decreased sales to oil and gas customers.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Gross margin decreased to 19.0% in the current quarter from 22.5% in the prior-year quarter primarily due to lower sales to oil and gas customers, which tend to have a higher margin over other customers.&nbsp;
In the New Iberia plant, half the 2007 third quarter was devoted to an attempt
to develop a new product for a major product application. While progress was
made the effort is not yet successful.&nbsp; In the middle of October 2007 the
plant resumed work on customer orders.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Selling expenses increased to $590,000 or 2.0% of net sales in the current quarter from $352,000 or 1.2% of net sales for the prior-year quarter.  This was mainly due to increased staffing primarily in the U.A.E. and the addition of an international sales manager based in the U.S.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>General and administrative expenses increased to $1,627,000 or 5.5% of net sales in the current quarter from $1,436,000 or 5.0% of net sales for the
comparable prior-year quarter.  The increase in general and administrative expenses was primarily due to increased staffing in the U.S. and increased expenses in the U.A.E. to support the location&#146;s growth.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><i><font size=2>Nine months ended October 31, 2007 vs. Nine months ended October 31, 2006</font></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Net sales of $78,528,000 for the nine months increased 16.0% from $67,686,000 for the comparable period in the prior year.  This increase was primarily due to $16,601,000 in sales from the U.A.E. compared to $932,000 in sales from the U.A.E. in the prior year offset by decreased sales to oil and gas customers.&nbsp; </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>10</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Gross margin decreased for the nine months to 21.0% in the current year from 22.2% in the prior year, primarily due to lower sales to oil and gas customers, which tend to have a higher margin over other customers.&nbsp;
In the New Iberia plant, half the 2007 third quarter was devoted to an attempt
to develop a new product for a major product application. While progress was
made the effort is not yet successful.&nbsp; In the middle of October 2007 the
plant resumed work on customer orders.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Selling expense increased to $1,533,000 or 2.0% of net sales in the current-year period from $1,073,000 or 1.6% of net sales in the prior-year period.  This was mainly due to increased staffing primarily in the U.A.E., and the addition of an international sales manager based in the U.S.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>General and administrative expense increased to $4,685,000 or 6.0% net sales in the current-year period, compared with $4,546,000 or 6.7% net sales in the prior-year period.  The increase in general and administrative expenses was primarily due to increased staffing in the U.A.E. to support the location&#146;s growth and increased staffing in the U.S.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Industrial Process Cooling Equipment Business</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><i><font size=2>Three months ended October 31, 2007 vs. Three months ended October 31, 2006</font></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Net sales of $9,665,000 for the quarter decreased 5.7% from $10,251,000 for the comparable quarter in the prior year. The decrease was primarily due to lower demand for its products in the three major market sectors.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Gross margin increased to 26.5% in the current quarter from 25.3% in the prior-year quarter, primarily due to an increased mix of standard product.&nbsp;
Increased expenses were incurred in the current year period relating to
unanticipated development and field modification costs for certain refrigeration
equipment previously sold to its customers.&nbsp; This work continues into the
fourth quarter 2007.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Selling expenses decreased to $1,347,000 or 13.9% of net sales in the current quarter from $1,455,000 or 14.2% of net sales in the prior-year quarter.  The decrease was due to reduced commission expense due to lower sales.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>General and administrative expenses increased in the current quarter to $1,141,000 or 11.8% of net sales from $1,025,000 or 10.0% of net sales in the prior-year quarter.  This increase was primarily due to increased professional costs including employment-related hiring expenses and engineering consulting fees.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><i><font size=2>Nine months ended October 31, 2007 vs. Nine months ended October 31, 2006</font></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Net sales of $28,462,000 for the nine months decreased 10.5% from $31,804,000 for the comparable period in the prior year.  The decrease was primarily due to lower demand for its products in the three major market sectors.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Gross margin decreased to 24.9% in the current year from 28.8% in the prior year, primarily due to an increasing original equipment manufacturer customer sales mix.&nbsp;
Increased expenses were incurred in the current year period relating to
unanticipated development and field modification costs for certain refrigeration
equipment previously sold to its customers.&nbsp; This work continues into the
fourth quarter 2007.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Selling expense decreased to $4,197,000 or 14.7% of net sales in the current-year period from $4,305,000 or 13.5% of net sales in the prior year quarter.  The decrease was due to reduced commission expense from lower sales offset by increased staffing.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>General and administrative expense increased to $3,276,000 or 11.5% of net sales in the current-year period from $3,188,000 or 10.0% of net sales in the prior year.  This increase was primarily due to increased professional costs including employment-related hiring expenses and engineering consulting fees.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>General Corporate and Other</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>General corporate expenses included interest expense and general and administrative expenses that were not allocated to the business segments.  During the fourth quarter 2006, the Company created a new subsidiary that was not material to the financial statements.&nbsp;
The subsidiary engages in
the installation of heating, ventilation and air conditioning (HVAC) systems.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><i><font size=2>Three months ended October 31, 2007 vs. Three months ended October 31, 2006</font></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The third quarter 2007 included sales of $416,000 not related to the Company&#146;s three reportable business segments.  During the third quarter 2006, the Company recognized $138,000 in revenue pursuant to a contract wholly-subcontracted to a related company, Midwesco, Inc., for installation of a heating, ventilation and air conditioning (HVAC) system.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>General and administrative expenses increased to $2,162,000 or 3.3% of consolidated net sales in the current quarter from $2,065,000 or 3.2% in the prior-year quarter.  The increase was mainly due to incremental expenses of $308,000 incurred to comply with Sarbanes-Oxley 404 (including consulting fees) that were not incurred in 2006, the inclusion of $199,000 of
the general and administrative expense of the newly created</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>11</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>subsidiary, and stock compensation expense $162,000
resulting from the implementation of SFAS123R.&nbsp;  These expenses were offset by decreased management incentive expense and deferred compensation expense.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Interest expense decreased to $664,000 for the current quarter from $729,000 in the prior-year quarter. The decrease was primarily due to reduced borrowings.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><i><font size=2>Nine months ended October 31, 2007 vs. Nine months ended October 31, 2006</font></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Year-to-date included sales of $1,263,000 not related to the Company&#146;s three reportable business segments.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>General and administrative expense increased to $6,337,000 or 3.5% of consolidated net sales in the current-year nine-month period from $5,377,000 or 3.3% in the prior-year period.  The increase was mainly due to increases including the inclusion of $505,000 of the general and administrative expense of the newly created subsidiary, incremental expenses of $446,000  incurred to comply with Sarbanes-Oxley 404 (including consulting fees) that were not incurred in 2006, additional personnel, and stock compensation expense of $331,000
resulting from the implementation of SFAS123R.&nbsp;  These expenses were offset by decreased management incentive expense and deferred compensation expense.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Interest expense decreased to $1,751,000 for the current-year period from $1,906,000 for the comparable period in the prior year.  The decrease was primarily due to reduced borrowings.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Taxes</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Taxes on earnings reflected the estimated annual effective rate, which included earnings from the U.S. and taxable foreign locations; however, it did not include the earnings from the U.A.E., which is an income tax-free country.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="598" style='margin-left:21.6pt;border-collapse:collapse; '>
    <tr >

        <td width="259" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:2.25pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><i><font size=2>(In thousands)</font></i><i></i></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="6" valign=top style=' border-bottom:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Three Months Ended</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>October 31,</font></b></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p
style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="6" style='border-bottom:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Nine Months Ended</font></b></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>October 31,</font></b></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="259" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" style='border-bottom:solid black 1.0pt;  padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>

        <td width="10" valign=top style='border-top:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=top style='border-top:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" valign=top style='border-bottom: solid black 1.0pt;padding: 0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>

        <td width="11" valign=top style='border-top:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='border-top:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="259" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=top style='border-top:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=top style='border-top:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="50" valign=top style='border-top:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="259" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Income before income taxes</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>619</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,715</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="50" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,911</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>8,567</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="259" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="50" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="259" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Income tax expense (benefit)</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(594</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,995</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="50" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>215</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,382</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="259" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="50" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="259" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Effective tax rates</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-96%</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="10" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>42.3%</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="50" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5.5%</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>39.5%</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The large decrease in the estimated effective tax rate was due to the favorable income tax effect of the estimated tax-free earnings from the United Arab Emirates which were higher than previously projected further impacted by a decrease in estimate taxable earnings.  In addition, the anticipated utilization of the research and development tax credits, which did not have as large an impact in the prior year due to continued operating loss carry-forwards that have now been fully utilized also reduced the estimated effective tax rate.  Income taxes for the quarter were negative, to adjust the year-to-date amount to the estimated annual effective 5.5% year-to-date rate.  The effective tax rate in fiscal 2007 included the impact of the FIN 48 adjustment (Note 12). </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The difference between the provision (benefit) for income taxes and the amount computed by applying the federal effective rate of 5.5% and 39.5% at October 31, 2007 and 2006 respectively, was as follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="596" style='margin-left:21.6pt;border-collapse:collapse; '>
    <tr >

        <td width="331" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><i><font size=2>(In thousands)</font></i><i></i></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="6" style='border-bottom:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Nine Months Ended</font></b></p>
<p
style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>October 31,</font></b></p> </td>

        <td width="11" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="42" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="331" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007</font></b></p> </td>

        <td width="8" valign=top style='border-top:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="54" valign=top style='border-top:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='border-top:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td  colspan="2" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2006</font></b></p> </td>

        <td width="11" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="42" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >

        <td width="331" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Tax expense at federal statutory rate</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="50" valign=top style='border-top:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,330</font></p> </td>

        <td width="8" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="54" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>34.0%</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$</font></p> </td>

        <td width="48" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,913</font></p> </td>

        <td width="11" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="42" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>34.0%</font></p> </td> </tr>
    <tr >

        <td width="331" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Foreign rate tax expense (benefit) differential</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="50" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(766</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="54" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-19.6%</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>497</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="42" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5.8%</font></p> </td> </tr>
    <tr >

        <td width="331" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Research tax credit</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="50" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(417</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="54" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-10.7%</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(173</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="42" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-2.0%</font></p> </td> </tr>
    <tr >

        <td width="331" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>State tax expense (benefit), net of federal benefit</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="50" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>60</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="54" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1.5%</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>355</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="42" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4.1%</font></p> </td> </tr>
    <tr >

        <td width="331" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=2>Other &#150; net</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='border-bottom:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="50" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>8</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="54" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>0.3%</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='border-bottom:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='border-bottom: solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(210</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>)</font></p> </td>

        <td width="42" valign=top style='border-bottom:solid black 1.0pt; padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-2.4%</font></p> </td> </tr>
    <tr >

        <td width="331" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Totals</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="50" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>215</font></p> </td>

        <td width="8" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="54" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5.5%</font></p> </td>

        <td width="13" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="13" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,382</font></p> </td>

        <td width="11" valign=bottom style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

        <td width="42" valign=top style='padding:0pt .7pt 0pt 0pt'>
<p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>39.5%</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><U><B><font SIZE=2>LIQUIDITY AND CAPITAL RESOURCES</font></B></U></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>In February 2007, the Company sold 1,003,000 shares of common stock at a price of $18.50 per share pursuant to the Company&#146;s existing shelf registration statement previously filed and declared effective by the U.S. Securities and Exchange
Commission. The net proceeds of $18,322,000</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>12</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;from this sale were utilized to pay down the revolving line of credit.  As a result, increased revolving line of credit borrowing capacity is available to finance future general business needs.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Cash and cash equivalents as of October 31, 2007 were $2,665,000 as compared to $565,000 at January 31, 2007.  The Company used $3,056,000 from operations during the first nine months of 2007.  Operating cash flows increased by $4,384,000 from the corresponding period in the prior year.  During the first nine months of 2007, net payments of $8,089,000 were made to the Company&#146;s credit facility.  </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Compared to January 31, 2007, trade receivables increased by $9,530,000 primarily due to the piping systems business, of which $5,912,000 was in the U.A.E.  Inventories increased by $6,059,000 for the nine months of 2007 primarily due to increased raw material requirements for future production.  Total inventory increased in the U.A.E. by $5,183,000.  Customer deposits increased $859,000 from January 31, 2007 of which $670,000 related to the filtration products business and the product is expected to ship in the fourth quarter of 2007.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Net cash used for investing activities for the nine months ended October 31, 2007 was $3,949,000.  Capital expenditures for the same nine months were $4,522,000, a decrease of $2,043,000 compared to the corresponding period in the prior year.  Current year expenditures were mainly for machinery and equipment. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Debt totaled $31,467,000, a decrease of $7,568,000 since the beginning of the 2007 fiscal year.  Net cash inflows from financing activities were $8,963,000.  Stock option activity resulted in $1,303,000 of total cash inflow, which included $814,000 tax benefit of stock options exercised in addition to stock option proceeds of $489,000.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.01in; text-indent:-0.01in;text-align:left;'><font size=2>The Company&#146;s working capital was approximately $50,510,000 at October 31, 2007 compared to approximately $30,734,000 at January 31, 2007.  The change was primarily due to the increase in accounts receivable, increase in inventory and payment of current debt.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The Company&#146;s current ratio was 2.0 to 1 for October 31, 2007 and 1.6 to 1 for January 31, 2007, respectively.  Debt to total capitalization at October 31, 2007 decreased to 33.3% from 50.1% in January 31, 2007. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>At January 31, 2007, the Company was in compliance with covenants under the Loan Agreement as defined below.  At October 31, 2007, the Company was not in compliance with a covenant under the Loan Agreement as defined below.  A waiver has been obtained for noncompliance of debt covenant for fiscal period ending on October 31, 2007, and on December 13, 2007, the Loan Agreement was amended to modify financial covenants.</font><font size=2> </font><font size=2> </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>On July 11, 2002, the Company entered into a secured loan and security agreement with a financial institution ("Loan Agreement").  The Loan Agreement was amended and restated on December 15, 2006.  Under the terms of the Loan Agreement, which matures on November 13, 2010, the Company can borrow up to $38,000,000, subject to borrowing base and other requirements, under a revolving line of credit.  The Loan Agreement covenants restrict debt, liens, and investments, do not permit payment of dividends, and require attainment of certain levels of profitability and cash flows.  Interest rates generally are based on options selected by the Company as follows: (a) a margin in effect plus a prime rate; or (b) a margin in effect plus the LIBOR rate for the corresponding interest period.  At October 31, 2007, the prime rate was 7.50%, and the margins added to the prime rate and the LIBOR rate, which are determined each
quarter based on the applicable financial statement ratio, were 0.25 and 1.75 percentage points, respectively.  Monthly interest payments were made as required.  As of October 31, 2007, the Company had borrowed $9,825,000 and had $21,250,000 available to it under the revolving line of credit.  In addition, $1,061,000 of availability was used under the Loan Agreement primarily to support letters of credit to guarantee amounts committed for inventory purchases.  The Loan Agreement requires that all payments by the Company's customers are deposited in a bank account from which all funds may only be used to pay the debt under the Loan Agreement.  At October 31, 2007, the amount of restricted cash was $727,000.  Cash required for operations is provided by draw-downs on the line of credit.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>
On October 18, 1995, the piping systems business Lebanon, Tennessee location
received $3,150,000 of proceeds of Industrial Revenue Bonds, which matured and
were paid in full on September 1, 2007.  These bonds had been fully secured by bank letters of credit.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>On September 20, 2000, the Company purchased an 8.1-acre parcel of land with a 131,000-square foot building in Niles, Illinois, from two principal stockholders, who are also members of management, for approximately $4,438,000.  This amount included the assumption of a $2,500,000 mortgage note with a remaining balance of $2,405,000.  The loan matures in the fourth quarter of 2007 and will be paid in full.  The Company is in process of obtaining new financing on this property. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>13</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<U><B><font SIZE=2>CRITICAL ACCOUNTING POLICIES</font></B></U></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Reclassifications:  </font></b></i><font size=2>Reclassifications were made to prior-year financial statements to conform to the current-year presentations.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Use of Estimates:</font></b></i><font size=2>   The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.  The Company has accounting policies which it believes are important to the Company's reported financial condition and results of operations, and which require the Company to make estimates about matters that are inherently uncertain.  These critical accounting policies include revenue recognition, realizability of inventories, collectibility of accounts receivable, depreciation of plant and
equipment, and income taxes.  The Company believes the above critical policies have resulted in past actual results approximating the estimated amounts in those areas. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Revenue Recognition:  </font></b></i><font size=2>The Company recognizes revenues including shipping and handling charges billed to customers, when all the following criteria are met:  (i) persuasive evidence of an arrangement exists, (ii) the seller&#146;s price to the buyer is fixed or determinable, and (iii) collectability is reasonably assured.  All subsidiaries of the Company, except the Piping Systems business, recognize revenues upon shipment or delivery of goods or services when title and risk of loss pass to customers.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Percentage of Completion Method Revenue Recognition:</font></b></i><font size=2>  Piping Systems business and Corporate and Other recognizes revenues on contracts under the "percentage of completion" method. The percentage of completion is determined by the relationship of costs incurred to the total estimated costs of the contract.  Provisions are made for estimated losses on uncompleted contracts in the period in which such losses are determined.  Changes in job performance, job conditions, and estimated profitability, including those arising from contract penalty provisions and final contract settlements may result in revisions to costs and income.  Such revisions are recognized in the period in which they are determined.  Claims for additional compensation due the Company are recognized in contract revenues when realization is probable and the amount can be reliably estimated.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Inventories:</font></b></i><font size=2>  Inventories are stated at the lower of cost or market.  Cost is determined using the first-in, first-out method for substantially all inventories.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Goodwill and other intangible assets with indefinite lives:  </font></b></i><font size=2>The Company reviews the carrying value of goodwill in accordance with SFAS No. 142, &#147;Goodwill and Other Intangible Assets&#148;, which requires that goodwill and other intangible assets with indefinite lives be analyzed for impairment on an annual basis or when there is reason to suspect that their values have been impaired.  For the evaluations, the fair value was determined using discounted cash flows and other market-related valuation models.  Certain estimates and judgments are required in the application of the fair value models.  Refer to Note 4 Goodwill in Notes to Condensed Consolidated Financial Statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Stock Options: </font></b></i><font size=2>Effective February 1, 2006, the Company adopted the fair value recognition provision of SFAS No.&nbsp;123 (revised 2004), &#147;Share-Based Payment&#148; (&#147;SFAS 123R&#148;) using the modified-prospective-transition method. Under this transition method, compensation cost recognized includes compensation costs for all share-based payments granted prior to, but not vested as of February&nbsp;1, 2006 based on the fair value at grant date estimated in accordance with SFAS 123.  In accordance with SFAS 123R, results for prior periods have not been restated.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><b><font size=2>Income Tax Provision:  </font></b></i><font size=2>Deferred income taxes have been provided for temporary differences arising from differences in basis of assets and liabilities for tax and financial reporting purposes.  Deferred income taxes on temporary differences have been recorded at the current tax rate.  The Company assessed its deferred tax assets for realizability at each reporting period.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Effective February 1, 2007, the Company adopted the provisions of the FASB issued FASB Interpretation No. 48, &#147;Accounting for Uncertainty in Income Taxes &#150; an interpretation of FASB Statement No. 109&#148;, (&#147;FIN 48&#146;).  FIN 48 prescribes a comprehensive model for how a company should recognize, measure, present and disclose in its financial statements uncertain tax positions that it has taken or expects to take on a tax return.  In May 2007, the FASB issued FASB Staff Position FIN 48-1 that amends FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes (&#147;FIN 48-1&#148;). FIN 48-1 provides guidance on how an enterprise should determine whether a tax position is effectively settled for the purpose of recognizing previously unrecognized tax benefits.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>14</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>
<b><font size=2>Item 3.</font></b><font size=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font size=2>Quantitative and Qualitative Disclosures About Market Risk</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:-0.01in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:-0.01in;text-align:left;'><font size=2>The Company is subject to market risk associated with changes in foreign currency exchange rates and interest rates.  Foreign currency exchange rate risk is mitigated through maintenance of local production facilities in the markets served, invoicing of customers in the same currency as the source of the products and use of foreign currency denominated debt in Denmark.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:-0.01in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>At January 31, 2007, one interest rate swap agreement was in effect with a notional value of $15,000,000 maturing in 2011.   On February 5, 2007, the Company terminated such interest rate swap and recognized a loss of $72,500.  No such agreement was in effect at October 31, 2007.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>A hypothetical ten percent change in market interest rates over the next year would increase interest on the Company's floating rate debt instruments by approximately $88,000.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Commodity price risk is the possibility of higher or lower costs due to changes in the prices of commodities, such as ferrous alloys (e.g., steel) which are used in the production of the piping systems.  The Company attempted to mitigate such risks by obtaining price commitments from its commodity suppliers and, when it appeared appropriate, purchasing quantities in advance of likely price increases.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:-0.01in;text-align:left;'><font size=2>&nbsp;</font></p>


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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 4.</font></b></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Controls and Procedures</font></b></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:-0.01in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>As of October 31, 2007, the Company carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-14 under the Securities Exchange Act of 1934, as amended.  Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>PART II &#150; OTHER INFORMATION</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:-0.01in;text-align:left;'><font size=2>&nbsp;</font></p>


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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Item 6.</font></b></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Exhibits</font></b></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(31)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Rule 13a &#150; 14(a)/15d &#150; 14(a) Certifications</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(1)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Chief Executive Officer certification pursuant to Section 302 of the Sarbanes-</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Oxley Act of 2002</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(2)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Chief Financial Officer certification pursuant to Section 302 of the Sarbanes-</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Oxley Act of 2002</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


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<p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>(32)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Section 1350 Certifications</font></p> </td> </tr></table>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(1)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Chief Executive Officer certification pursuant to Section 906 of the Sarbanes-</font></p> </td> </tr></table>
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<p style='margin:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>

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<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>Oxley Act of 2002</font></p> </td> </tr></table>
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<p style='margin:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(2)</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Chief Financial Officer certification pursuant to Section 906 of the Sarbanes-</font></p> </td> </tr></table>
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<p style='margin:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>

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<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>Oxley Act of 2002</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>15</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<font SIZE=2>SIGNATURES</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:2.97in;text-align:left;'><font SIZE=2>MFRI, INC.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>Date:</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>December 17, 2007</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>/s/ David Unger</font></p> </td> </tr>
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<p
style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>David Unger</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Chairman of the Board of Directors, and</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Chief Executive Officer</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(Principal Executive Officer)</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>Date:</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>December 17, 2007</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>/s/ Michael D. Bennett</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Michael D. Bennett</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Vice President, Secretary and Treasurer</font></p> </td> </tr>
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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>

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<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(Principal Financial and Accounting Officer)</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>16</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><b><font size=2>Exhibit 31.1</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>I, David Unger, certify that:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>1.</font></p> </td>

        <td width="600" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>I have reviewed this quarterly report on Form 10-Q of MFRI, Inc.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>2.</font></p> </td>

        <td width="600" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>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;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>3.</font></p> </td>

        <td width="600" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>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 registrant as of, and for, the periods presented in this report;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>4.</font></p> </td>

        <td width="600" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>The registrant&#146;s other certifying officer 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 registrant and we have:</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>

        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>(a)</font></p> </td>

        <td width="576" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>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 registrant, 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;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>

        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>(b)</font></p> </td>

        <td width="576" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>Evaluated the effectiveness of the registrant&#146;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</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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<p style='margin:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>

        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>(c)</font></p> </td>

        <td width="576" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>Disclosed in this report any change in the registrant&#146;s internal control over financial reporting that occurred during the registrant&#146;s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting; and</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>5.</font></p> </td>

        <td width="600" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>The registrant&#146;s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant&#146;s auditors and the audit committee of the registrant&#146;s board of directors (or persons performing the equivalent functions):</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>

        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>(a)</font></p> </td>

        <td width="576" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>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 registrant&#146;s ability to record, process, summarize and report financial information; and</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.25in;text-align:left;'><font size=2>&nbsp;</font></p>


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        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>

        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>(b)</font></p> </td>

        <td width="576" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal control over financial reporting.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


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        <td width="16" nowrap valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font size=1>&nbsp;</font></p> </td>

        <td width="48" nowrap valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font size=2>Date:</font></p> </td>

        <td width="147" nowrap valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font size=2>December 17, 2007</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="181" style='margin-left:3.15pt;border-collapse:collapse; '>
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        <td width="181" valign=top style='border-bottom: solid black 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>/s/ David Unger</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>David Unger</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Director and Chairman of the Board of Directors</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>and Chief Executive Officer</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>(Principal Executive Officer)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<TYPE>EX-31.2
<SEQUENCE>3
<FILENAME>d73199_31-2.htm
<DESCRIPTION>CERTIFICATION
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:right;'><b><font size=2>Exhibit 31.2</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>I, Michael D. Bennett, certify that:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>1.</font></p> </td>

        <td width="600" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>I have reviewed this quarterly report on Form 10-Q of MFRI, Inc.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>2.</font></p> </td>

        <td width="600" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>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;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="624" style='border-collapse:collapse'>
    <tr >

        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>3.</font></p> </td>

        <td width="600" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>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 registrant as of, and for, the periods presented in this report;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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    <tr >

        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>4.</font></p> </td>

        <td width="600" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>The registrant&#146;s other certifying officer 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 registrant and we have:</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="624" style='border-collapse:collapse'>
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        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>

        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>(a)</font></p> </td>

        <td width="576" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>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 registrant, 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;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>

        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>(b)</font></p> </td>

        <td width="576" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>Evaluated the effectiveness of the registrant&#146;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</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


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        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>

        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>(c)</font></p> </td>

        <td width="576" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>Disclosed in this report any change in the registrant&#146;s internal control over financial reporting that occurred during the registrant&#146;s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting; and</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>5.</font></p> </td>

        <td width="600" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>The registrant&#146;s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant&#146;s auditors and the audit committee of the registrant&#146;s board of directors (or persons performing the equivalent functions):</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>

        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>(a)</font></p> </td>

        <td width="576" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>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 registrant&#146;s ability to record, process, summarize and report financial information; and</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=1>&nbsp;</font></p> </td>

        <td width="24" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>(b)</font></p> </td>

        <td width="576" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal control over financial reporting.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="210" style='border-collapse:collapse'>
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        <td width="16" nowrap valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font size=1>&nbsp;</font></p> </td>

        <td width="48" nowrap valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font size=2>Date:</font></p> </td>

        <td width="147" nowrap valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font size=2>December 17, 2007</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="181" style='margin-left:3.15pt;border-collapse:collapse; '>
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        <td width="181" valign=top style='border-bottom: solid black 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>/s/ Michael D. Bennett</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Michael D. Bennett</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Vice President, Secretary and Treasurer</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>(Principal Financial and Accounting Officer)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<TYPE>EX-32.1
<SEQUENCE>4
<FILENAME>d73199_32-1.htm
<DESCRIPTION>CERTIFICATION
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<p style=' margin-bottom:3pt; margin-top:12pt;text-align:right;'><b><font size=2>Exhibit 32.1</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:right;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Certification of Principal Executive Officer</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Pursuant to 18 U.S.C. 1350</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(Section 906 of the Sarbanes-Oxley Act of 2002)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>I, David Unger, Chief Executive Officer (principal executive officer) of MFRI, Inc. (the &#147;Registrant&#148;), certify that, to the best of my knowledge, based upon a review of the Quarterly Report on Form 10-Q for the period ended October 31, 2007 of the Registrant (the &#147;Report&#148;):</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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        <td width="48" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>(1)</font></p> </td>

        <td width="528" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font size=2>The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended; and</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in; text-indent:-0.5in;text-align:justify;'><font size=2>&nbsp;</font></p>


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<p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>(2)</font></p> </td>

        <td width="528" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font size=2>The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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        <td width="181" valign=top style='border-bottom: solid black 1.0pt;padding:0pt 5.4pt 0pt 5.4pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>/s/ David Unger</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>David Unger</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Director and Chairman of the Board of Directors</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>and Chief Executive Officer</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>(Principal Executive Officer)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>December 17, 2007</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>A signed original of this written statement required by Section 906 has been provided to MFRI, Inc. and will be retained by MFRI, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<TYPE>EX-32.2
<SEQUENCE>5
<FILENAME>d73199_32-2.htm
<DESCRIPTION>CERTIFICATION
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<p style=' margin-bottom:3pt; margin-top:12pt;text-align:right;'><b><font size=2>Exhibit 32.2</font></b></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:right;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Certification of Principal Financial Officer</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Pursuant to 18 U.S.C. 1350</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>(Section 906 of the Sarbanes-Oxley Act of 2002)</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>I, Michael D. Bennett, Chief Financial Officer (principal financial officer) of MFRI, Inc. (the &#147;Registrant&#148;), certify that, to the best of my knowledge, based upon a review of the Quarterly Report on Form 10-Q for the period ended October 31, 2007 of the Registrant (the &#147;Report&#148;):</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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<p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>(1)</font></p> </td>

        <td width="528" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font size=2>The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended; and</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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        <td width="48" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font size=1>&nbsp;</font></p> </td>

        <td width="48" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>(2)</font></p> </td>

        <td width="528" valign=top style='padding:0pt 0pt 0pt 0pt'>
<p style='margin:0pt;margin-bottom:.0001pt;text-align:justify'><font size=2>The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="181" style='margin-left:3.15pt;border-collapse:collapse; '>
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<p style='margin:0pt;margin-bottom:.0001pt'><font size=2>/s/ Michael D. Bennett</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Michael D. Bennett</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Vice President, Secretary and Treasurer</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>(Principal Financial and Accounting Officer)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>December 17, 2007</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:5pt; margin-top:5pt;text-align:left;'><font size=2>A signed original of this written statement required by Section 906 has been provided to MFRI, Inc. and will be retained by MFRI, Inc. and furnished to the Securities and Exchange Commission or its staff upon request. </font></p>

<p style=' margin-bottom:0pt; margin-top:5pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>



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