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<SEC-DOCUMENT>0000100378-06-000033.txt : 20060728
<SEC-HEADER>0000100378-06-000033.hdr.sgml : 20060728
<ACCEPTANCE-DATETIME>20060728155050
ACCESSION NUMBER:		0000100378-06-000033
CONFORMED SUBMISSION TYPE:	8-K/A
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20060512
ITEM INFORMATION:		Completion of Acquisition or Disposition of Assets
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20060728
DATE AS OF CHANGE:		20060728

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TWIN DISC INC
		CENTRAL INDEX KEY:			0000100378
		STANDARD INDUSTRIAL CLASSIFICATION:	GENERAL INDUSTRIAL MACHINERY & EQUIPMENT [3560]
		IRS NUMBER:				390667110
		STATE OF INCORPORATION:			WI
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		8-K/A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-07635
		FILM NUMBER:		06988070

	BUSINESS ADDRESS:	
		STREET 1:		1328 RACINE ST
		CITY:			RACINE
		STATE:			WI
		ZIP:			53403
		BUSINESS PHONE:		2626384000

	MAIL ADDRESS:	
		STREET 1:		1328 RACINE STREET
		CITY:			RACINE
		STATE:			WI
		ZIP:			53403

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	TWIN DISC CLUTCH CO
		DATE OF NAME CHANGE:	19770217
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K/A
<SEQUENCE>1
<FILENAME>r8ka706.htm
<TEXT>

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<P align=center><FONT face=serif>UNITED STATES</FONT></P>
<P align=center><FONT face=serif>SECURITIES AND EXCHANGE COMMISSION Washington,
D.C. 20549</FONT></P>
<P align=center>
<TABLE>

  <TR>
    <TD noWrap align=center><FONT face=serif>FORM
  8-K/A</FONT><BR></TD></TR></TABLE></P>
<P align=center><FONT face=serif>CURRENT REPORT</FONT></P>
<P align=center><FONT face=serif>Pursuant to Section 13 OR 15(d) of The
Securities Exchange Act of 1934</FONT></P>
<P align=center><FONT face=serif>Date of Report (Date of earliest event
reported) May 12, 2006</FONT></P>
<P align=center><FONT face=serif>--------------------------------------------------------------------------------------------</FONT></P>
<P align=center><FONT face=serif>Twin Disc, Incorporated</FONT></P>
<P align=center><FONT face=serif>--------------------------------------------------------------------------<BR>(Exact
name of registrant as specified in its charter)</FONT></P>
<P align=center><FONT face=serif>Wisconsin 1-7635 39-0667110
<BR>----------------------------------------------------------------------------------------------------------</FONT></P>
<DIV align=center>
<TABLE cellSpacing=1 cellPadding=0 border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="33%"><FONT face=serif>(State or other jurisdiction</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="32%"><FONT face=serif>(Commission file</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="30%"><FONT face=serif>(IRS Employer</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="33%">&nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif>of incorporation)</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="32%">&nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif>number)</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="30%">&nbsp;<FONT face=serif>Identification
      No.)</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="67%" colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif>1328 Racine Street, Racine,
      Wisconsin</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="30%">&nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif>53403</FONT>&nbsp; </TD></TR></TABLE></DIV><BR>
<P align=center><FONT face=serif>----------------------------------------------------------------------------------------------------</FONT></P>
<P align=center><FONT face=serif>(Address of principal executive
offices)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;(Zip Code)</FONT></P>
<P align=center><FONT face=serif>Registrant&#146;s telephone number, including area
code&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;(262) 638-4000</FONT></P>
<P align=center><FONT face=serif>---------------------------------------------------------------------------------------------------------</FONT></P>
<P align=center><FONT face=serif>------------------------------------------------------------------------------------------------------------<BR>(Former
name or former address, if changed since last report)</FONT></P>
<P align=left><FONT face=serif>Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions (see General Instruction A.2.
below):</FONT></P>
<P>[ ] Written communications pursuant to Rule 425 under the Securities Act
(17CFR 230.425)</P>
<P>[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)</P>
<P align=left><FONT face=serif>[ ] Pre-commencement communications pursuant to
Rule 14d-2(b) under the Exchange Act (17 CFR 24014d-2(b))</FONT></P>
<P align=left><FONT face=serif>[ ] Pre-commencement communications pursuant to
Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e -4(c))
<BR>---------------------------------------------------------------------------------------------------------------------</FONT></P>
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<A name=page_2></A>
<P align=left><FONT face=serif><B>Item 2.01 Completion of Acquisition or
Disposition of Assets</B></FONT></P>
<P align=left><FONT face=serif>On May 16, 2006, Twin Disc, Incorporated (the
&#147;Company&#148;) filed a Current Report on Form 8-K to report the acquisition of the
stock of four related foreign entities: B.C.S. S.r.l., an Italian limited
liability company; B.C.S. Service S.r.l., an Italian limited liability company;
Boat Equipment Limited, a Maltese limited liability company; and Vetus Italia
S.r.l., an Italian limited liability company (collectively, the &#147;Acquired
Companies&#148;). The total purchase price for the acquisition of the Acquired
Companies was &euro;17,715,000 ($22,707,000), allocated among the Acquired Companies
as set forth in the Stock Purchase Agreement between the Company and the
shareholders of the Acquired Companies.</FONT></P>
<P align=left><FONT face=serif>This Amendment No. 1 of the Current Report on
Form 8-K/A provides audited financial statements of the Acquired Companies and
certain pro forma financial information and amends Items 9.01(a) and (b) of the
May 16, 2006, Current Report on Form 8-K.</FONT></P>
<P><B>Item 9.01 Financial Statements and Exhibits</B></P>
<P>(a) Financial Statements of Businesses Acquired</P>
<P align=left><FONT face=serif>The audited aggregated income statement and
audited aggregated balance sheet of the Acquired Companies for the year ended
December 31, 2005, and the related Independent Auditor&#146;s Report thereon, are
included as Exhibit 99.1 to this Current Report on Form 8-K/A and are
incorporated herein by reference.</FONT></P>
<P align=left><FONT face=serif>(b) Unaudited Pro Forma Financial
Information</FONT></P>
<P align=left><FONT face=serif>The unaudited pro forma consolidated statement of
earnings for the previous fiscal year of Twin Disc, Incorporated, which ended
June 30, 2005, alongside the unaudited pro forma consolidated statement of
earnings of the Acquired Companies for the year ended December 31, 2005, are
included as Exhibit 99.2 to this Current Report on Form 8-K/A and are
incorporated herein by reference.</FONT></P>
<P align=left><FONT face=serif>The unaudited pro forma consolidated balance
sheet of Twin Disc, Incorporated as of March 31, 2006, alongside the unaudited
pro forma consolidated balance sheet of the Acquired Companies as of May 31,
2006, are included as Exhibit 99.3 to this Current Report on Form 8-K/A and are
incorporated herein by reference.</FONT></P>
<P align=left><FONT face=serif>In accordance with Regulation S-X, Section 210.11
- -02(c)(3), due to the unavailability of certain historical monthly financial
information of the Acquired Companies, it was deemed not practicable to bring
the statements of the Acquired Companies to within 93 days of the Company&#146;s year
end. It was also deemed not practicable to present interim pro forma financial
information for the nine months ended March 31, 2006.</FONT></P>
<P align=left><FONT face=serif>The transaction described in this Form 8-K/A will
be accounted for as an acquisition of the Acquired Companies by the Company
under the purchase method of accounting in accordance with Statement of
Financial Accounting Standards No. 141,</FONT> <I><FONT face=serif>Business</FONT></I></P>
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<P align="left">
<I><FONT face="serif">Combinations</FONT></I><FONT face="serif">. Under the purchase method of accounting, the total purchase price is allocated to the net tangible and intangible assets acquired by the Company in connection with the transaction,
based on their fair values as of the completion of the transaction. The excess cost over the net tangible and identifiable intangible assets is allocated to goodwill.</FONT></P>
<P align="left">
<FONT face="serif">The unaudited pro forma consolidated financial statements present the acquisition of the Acquired Companies under the purchase method of accounting, and reflect the preliminary purchase price allocation based on the Company&#146;s
estimate of the fair value of the assets acquired and liabilities assumed. The preliminary purchase price allocation is subject to finalization of the valuation of intangible assets, other assets acquired and liabilities assumed.</FONT></P>
<P align="left">
<FONT face="serif">The unaudited pro forma statements of earnings have been prepared to illustrate the estimated effect of the acquisition by the Company of 100% of the outstanding stock of the Acquired Companies. The unaudited pro forma statements
of earnings are presented for informational purposes only. The pro forma data is not necessarily indicative of what the financial position or results of operations actually would have been had the acquisition been completed as of any earlier date.
In addition, the unaudited pro forma consolidated financial information does not purport to project the future financial position or operating results of the combined company.</FONT></P>
<P align="left">
<TABLE><TR><TD nowrap>
<FONT face="serif">(c) Exhibits</FONT><BR>
</TD></TR></TABLE>
</P>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
	<TD nowrap valign=top>
<FONT face="serif">99.1</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD width=100%>
<FONT face="serif">Audited consolidated statement of operations and audited condensed balance sheets of the Acquired Companies for the year ended December 31, 2005, and related Independent Auditor&#146;s Report.</FONT>	</TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
	<TD nowrap valign=top>
<FONT face="serif">99.2</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD width=100%>
<FONT face="serif">Unaudited pro forma consolidated statement of earnings for the previous fiscal year of Twin Disc, Incorporated, which ended June 30, 2005, alongside the unaudited pro forma consolidated statement of earnings of the Acquired
Companies for the year ended December 31, 2005.</FONT>	</TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
	<TD nowrap valign=top>
<FONT face="serif">99.3</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD width=100%>
<FONT face="serif">Unaudited pro forma consolidated balance sheet of Twin Disc, Incorporated as of March 31, 2006, alongside the unaudited pro forma consolidated balance sheet of the Acquired Companies as of May 31, 2006.</FONT>	</TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>

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<P align=left><FONT face=serif>------------------------------------------------------------------------------------------------------------</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif>Pursuant to the
requirements of Section 13 or 15(d) 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 align=left>
<TABLE>

  <TR>
    <TD noWrap><FONT face=serif>July 28,
      2006&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Twin Disc, Inc.</FONT></TD></TR></TABLE></P>
<P align=left><FONT face=serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
/s/ Christopher J. Eperjesy</FONT><BR><FONT face=serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
- --------------------------------------------</FONT><BR><FONT face=serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nb
sp;
Christopher J. Eperjesy</FONT><BR><FONT face=serif>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
VP-Finance, CFO and Secretary</FONT><BR></P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>r8k706993.htm
<DESCRIPTION>UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
<TEXT>

<HTML>
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<TABLE cellSpacing=1 cellPadding=0 border=0>

  <TR vAlign=bottom>
    <TD align=center width="99%" colSpan=10><FONT face=sans-serif size=1><B>Unaudited Pro Forma
      Consolidated Balance Sheet</B></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD align=center width="99%" colSpan=10><B><FONT face=sans-serif size=1>March 31,
    2006</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD align=center width="99%" colSpan=10><B><FONT face=sans-serif size=1>(dollars in
      thousands)</FONT></B></TD></TR>
  <TR>
    <TD width="99%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="16%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"></TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="11%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="16%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%" colSpan=2><FONT face=sans-serif size=1>Pro Forma</FONT>&nbsp; &nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=1>Pro Forma</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="56%" colSpan=3><U><FONT face=sans-serif size=1>Twin
    Disc</FONT></U>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><U><FONT face=sans-serif size=1>BCS</FONT></U>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%" colSpan=2><U><FONT face=sans-serif size=1>Adjustments</FONT></U>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><U><FONT face=sans-serif size=1>Consolidated</FONT></U>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%"><B><FONT face=sans-serif size=1>Assets</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="16%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="11%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%"><FONT face=sans-serif size=1>Current Assets</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="16%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="11%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Cash and cash
    equivalents</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>9,764</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>2,944</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=1>12,708</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Trade accounts receivable,
    net</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>37,797</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>13,971</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=1>(249)&nbsp;</FONT>&nbsp;</TD>
    <TD noWrap align=right width="4%" background=""><FONT face=SansSerif><FONT size=1>(4)</FONT></FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=1>51,519</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Inventories, net</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>55,398</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>6,707</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=1>1,442</FONT>&nbsp;</TD>
    <TD noWrap align=right width="4%"><FONT face=sans-serif size=1>(1)</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=1>63,547</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Deferred income taxes</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>7,289</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>528</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=1>7,817</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Other</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>4,572</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>945</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=1>5,517</FONT>&nbsp;</TD></TR>
  <TR>
    <TD width="38%"></TD>
    <TD width="2%"></TD>
    <TD width="16%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="2%"></TD>
    <TD width="10%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="2%"></TD>
    <TD width="12%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="11%">
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Total current assets</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>114,820</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>25,095</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=1>1,193</FONT>&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=1>141,108</FONT>&nbsp;</TD></TR>
  <TR>
    <TD width="99%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%"><FONT face=sans-serif size=1>Property, plant and equipment,
      net</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>38,958</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>998</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=1>3,137</FONT>&nbsp;</TD>
    <TD noWrap align=right width="4%"><FONT face=sans-serif size=1>(1)</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=1>43,093</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%"><FONT face=sans-serif size=1>Goodwill</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>12,624</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=1>2,415</FONT>&nbsp;</TD>
    <TD noWrap align=right width="4%"><FONT face=sans-serif size=1>(1)</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=1>15,039</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%"><FONT face=sans-serif size=1>Other intangibles,
    net</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="16%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>315</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=1>8,796</FONT>&nbsp;</TD>
    <TD noWrap align=right width="4%"><FONT face=sans-serif size=1>(1)</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=1>9,111</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%"><FONT face=sans-serif size=1>Deferred income
    taxes</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>14,664</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=1>(5,350)&nbsp;</FONT>&nbsp;</TD>
    <TD noWrap align=right width="4%" background=""><FONT size=1><FONT face=SansSerif>(1)&nbsp;</FONT></FONT></TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=1>9,314</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%"><FONT face=sans-serif size=1>Other assets</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>9,243</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=1>9,243</FONT>&nbsp;</TD></TR>
  <TR>
    <TD width="38%"></TD>
    <TD width="2%"></TD>
    <TD width="16%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="2%"></TD>
    <TD width="10%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="2%"></TD>
    <TD width="12%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="11%">
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Total assets</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>190,309</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>26,408</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=1>10,191</FONT>&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=1>226,908</FONT>&nbsp;</TD></TR>
  <TR>
    <TD width="38%"></TD>
    <TD width="2%"></TD>
    <TD width="16%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="10%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="12%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="11%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%"><B><FONT face=sans-serif size=1>Liabilities and
      Shareholders' Equity</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="16%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="11%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%"><FONT face=sans-serif size=1>Current
    liabilities</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="16%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="11%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Notes Payable</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>757</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=1>757</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Current maturities of long term
      debt</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>2,856</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=1>2,856</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Accounts payable</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>19,582</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>7,633</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=1>(249)&nbsp;</FONT>&nbsp;</TD>
    <TD noWrap align=right width="4%" background=""><FONT face=SansSerif><FONT size=1>(4)&nbsp;</FONT></FONT></TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=1>26,966</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Accrued liabilities</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>38,568</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>5,184</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=1>43,752</FONT>&nbsp;</TD></TR>
  <TR>
    <TD width="38%"></TD>
    <TD width="2%"></TD>
    <TD width="16%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="2%"></TD>
    <TD width="10%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="2%"></TD>
    <TD width="12%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="11%">
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Total current
    liabilities</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>61,006</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>13,574</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=1>(249)</FONT>&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=1>74,331</FONT>&nbsp;</TD></TR>
  <TR>
    <TD width="99%" colSpan=10>&nbsp;</TD></TR>
  <TR>
    <TD width="99%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%"><FONT face=sans-serif size=1>Long-term debt</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>15,739</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=1>23,274</FONT>&nbsp;</TD>
    <TD noWrap align=right width="4%"><FONT face=sans-serif size=1>(2)</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=1>39,013</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%"><FONT face=sans-serif size=1>Accrued retirement
      benefits</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>38,932</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=1>38,932</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%"><FONT face=sans-serif size=1>Other long-term
      liabilities</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>130</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=1>130</FONT>&nbsp;</TD></TR>
  <TR>
    <TD width="99%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%"><FONT face=sans-serif size=1>Minority
interest</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>541</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=1>541</FONT>&nbsp;</TD></TR>
  <TR>
    <TD width="99%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%"><FONT face=sans-serif size=1>Shareholders'
    equity</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="16%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="11%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Common stock</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>11,509</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>1,276</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=1>(1,276)&nbsp;</FONT>&nbsp;</TD>
    <TD noWrap align=right width="4%" background=""><FONT size=1><FONT face=SansSerif>(3)&nbsp;</FONT></FONT></TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=1>11,509</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Retained earnings</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>96,544</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>11,558</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=1>(11,558)&nbsp;</FONT>&nbsp;</TD>
    <TD noWrap align=right width="4%" background=""><FONT size=1><FONT face=SansSerif>(3)&nbsp;</FONT></FONT></TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=1>96,544</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Accumulated other comprehensive
      loss</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>(18,908)</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=1>(18,908)</FONT>&nbsp;</TD></TR>
  <TR>
    <TD width="38%"></TD>
    <TD width="2%"></TD>
    <TD width="16%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="2%"></TD>
    <TD width="10%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="2%"></TD>
    <TD width="12%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="11%">
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>89,145</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>12,834</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=1>(12,834)</FONT>&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=1>89,145</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Less treasury stock, at
    cost</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>15,184</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=1>15,184</FONT>&nbsp;</TD></TR>
  <TR>
    <TD width="38%"></TD>
    <TD width="2%"></TD>
    <TD width="16%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="2%"></TD>
    <TD width="10%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="2%"></TD>
    <TD width="12%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="11%">
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Total shareholders'
    equity</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>73,961</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>12,834</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=1>(12,834)</FONT>&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=1>73,961</FONT>&nbsp;</TD></TR>
  <TR>
    <TD width="99%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Total liabilites and shareholders'
      equity</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>190,309</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>26,408</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=1>10,191</FONT>&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=1>226,908</FONT>&nbsp;</TD></TR>
  <TR>
    <TD width="38%"></TD>
    <TD width="2%"></TD>
    <TD width="16%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="10%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="12%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="11%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=10>&nbsp;</TD></TR>
  <TR>
    <TD width="99%" colSpan=10>&nbsp;</TD></TR>
  <TR>
    <TD width="99%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%"><FONT face=sans-serif size=1>1) Allocation of purchase price
      as follows:</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="16%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="11%">&nbsp;</TD></TR>
  <TR>
    <TD width="99%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT face=sans-serif size=1>Purchase price
      allocation:</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="16%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="11%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Net cash paid for BCS
      acquisition</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="16%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>22,707</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="11%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Estimated acquisition
    expenses</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="16%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>567</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="11%">&nbsp;</TD></TR>
  <TR>
    <TD width="38%"></TD>
    <TD width="2%"></TD>
    <TD width="16%"></TD>
    <TD width="2%"></TD>
    <TD width="10%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="2%"></TD>
    <TD width="12%"></TD>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="11%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Total acquisition
    consideration</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="16%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>23,274</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="11%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="56%" colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Less: estimated net book value of
      tangible assets acquired</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>(12,834)</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="11%">&nbsp;</TD></TR>
  <TR>
    <TD width="56%" colSpan=3></TD>
    <TD width="2%"></TD>
    <TD width="10%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="2%"></TD>
    <TD width="12%"></TD>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="11%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Excess purchase price to be
      allocated</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="16%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>10,440</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="11%">&nbsp;</TD></TR>
  <TR>
    <TD width="38%"></TD>
    <TD width="2%"></TD>
    <TD width="16%"></TD>
    <TD width="2%"></TD>
    <TD width="10%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="12%"></TD>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="11%"></TD></TR>
  <TR>
    <TD width="99%" colSpan=10>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="56%" colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT face=sans-serif size=1>Preliminary allocations of
      excess purchase price:</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="11%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Inventory adjustments to reflect fair
      value</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="16%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>1,442</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="11%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Fixed asset adjustment to reflect fair
      value</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="16%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>3,137</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="11%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Identifiable intangible assets - finite
      life</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="16%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>6,200</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="11%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Identifiable intangible assets -
      indefinite life</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="16%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>2,596</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="11%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Deferred Tax Asset (@
    40%)</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="16%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>(5,350)</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="11%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>Goodwill</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="16%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>2,415</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="11%">&nbsp;</TD></TR>
  <TR>
    <TD width="38%"></TD>
    <TD width="2%"></TD>
    <TD width="16%"></TD>
    <TD width="2%"></TD>
    <TD width="10%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="2%"></TD>
    <TD width="12%"></TD>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="11%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="38%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="16%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>10,440</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="11%">&nbsp;</TD></TR>
  <TR>
    <TD width="38%"></TD>
    <TD width="2%"></TD>
    <TD width="16%"></TD>
    <TD width="2%"></TD>
    <TD width="10%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="12%"></TD>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="11%"></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>2)</FONT>&nbsp; &nbsp;
    &nbsp;</TD>
    <TD width="100%"><FONT face=sans-serif size=1>Issuance of $25 million of
      6.05% Senior Notes due April, 2016. Consideration paid for BCS equals
      $23,274.</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>3)</FONT>&nbsp; &nbsp;
    &nbsp;</TD>
    <TD width="100%"><FONT face=sans-serif size=1>Reflects the elimination of
      BCS historical shareholders' equity accounts.</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>4)</FONT>&nbsp; &nbsp;
    &nbsp;</TD>
    <TD width="100%"><FONT face=sans-serif size=1>Reflects additional
      elimination of intercompany balances due to BCS activity with existing
      Twin Disc entities (TD Italia).</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing=1 cellPadding=0 border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="55%"><FONT face=sans-serif size=1>TD
    Italia</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="42%"><FONT face=sans-serif size=1>165</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="55%"><FONT face=sans-serif size=1>TD
      Southeast</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="42%"><FONT face=sans-serif size=1>84</FONT>&nbsp;</TD></TR>
  <TR>
    <TD width="55%"></TD>
    <TD width="2%"></TD>
    <TD width="42%">
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="55%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="42%"><FONT face=sans-serif size=1>249</FONT>&nbsp;</TD></TR>
  <TR>
    <TD width="55%"></TD>
    <TD width="2%"></TD>
    <TD width="42%">
      <HR noShade SIZE=2>
    </TD></TR></TABLE><BR>
<HR align=center width="100%" noShade SIZE=2>

</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>3
<FILENAME>r8k706992.htm
<DESCRIPTION>UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF EARNINGS
<TEXT>

<HTML>
<HEAD>
   <TITLE>r8k706992.pdf -- Converted by SECPublisher 4.0, created by BCL Technologies Inc., for SEC Filing</TITLE>
</HEAD>

<BODY bgcolor="#ffffff">
<!--$$/page=--><A name=page_1></A>
<TABLE cellSpacing=1 cellPadding=0 border=0>

  <TR vAlign=bottom>
    <TD align=center width="99%" colSpan=6><FONT face=sans-serif size=1><STRONG>Unaudited Pro
      Forma Consolidated Statements of Earnings</STRONG></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=center width="99%" colSpan=6><FONT face=sans-serif size=1><STRONG>For the Fiscal
      Year Ended June 30, 2005</STRONG></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=center width="99%" colSpan=6><FONT face=sans-serif size=1><STRONG>(dollars in
      thousands, except per share data)</STRONG></FONT> </TD></TR>
  <TR>
    <TD width="99%" colSpan=6>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="34%">&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=right width="19%"></TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="34%">&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="19%">&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=1>Pro Forma</FONT>&nbsp; </TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>Pro Forma</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="34%">&nbsp; </TD>
    <TD noWrap align=right width="16%"><U><FONT face=sans-serif size=1>Twin
      Disc</FONT></U>&nbsp; </TD>
    <TD noWrap align=right width="19%"><U><FONT face=sans-serif size=1>BCS</FONT></U>&nbsp;
    </TD>
    <TD noWrap align=right width="13%"><U><FONT face=sans-serif size=1>Adjustments</FONT></U>&nbsp; </TD>
    <TD noWrap align=right width="10%"><U><FONT face=sans-serif size=1>Consolidated</FONT></U>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=6>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%"><FONT face=sans-serif size=1>Net sales</FONT>&nbsp; </TD>
    <TD noWrap align=left width="34%">&nbsp; </TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>218,472</FONT>&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=1>26,809</FONT>&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=1>(636) (2)</FONT>&nbsp; </TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>244,645</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=6>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="41%" colSpan=2><FONT face=sans-serif size=1>Cost of goods sold</FONT>&nbsp;
    </TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>161,052</FONT>&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=1>23,176</FONT>&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=1>(5,362) (3)</FONT>&nbsp; </TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>178,357</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="34%">&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="19%">&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=1>(636) (2)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="34%">&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="19%">&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=1>414 (4)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="34%">&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="19%">&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=1>(287) (6)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR>
    <TD width="7%"></TD>
    <TD width="34%"></TD>
    <TD width="16%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="19%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="13%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="10%">
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=6>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=6>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="34%"><FONT face=sans-serif size=1>Gross profit</FONT>&nbsp; </TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>57,420</FONT>&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=1>3,633</FONT>&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=1>4,726</FONT>&nbsp; </TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>66,288</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=6>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="41%" colSpan=2><FONT face=sans-serif size=1>Marketing, engineering and
      administrative expenses</FONT>&nbsp; </TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>44,666</FONT>&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=1>-</FONT>&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=1>5,362 (3)</FONT>&nbsp; </TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>50,904</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="34%">&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="19%">&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=1>963 (4)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="34%">&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="19%">&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=1>(87) (5)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="41%" colSpan=2><FONT face=sans-serif size=1>Restructuring of
      operations</FONT>&nbsp; </TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>2,076</FONT>&nbsp; </TD>
    <TD noWrap align=left width="19%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>2,076</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="41%" colSpan=2></TD>
    <TD width="16%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="19%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="13%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="10%">
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=6>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="41%" colSpan=2><FONT face=sans-serif size=1>Earnings from
      operations</FONT>&nbsp; </TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>10,678</FONT>&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=1>3,633</FONT>&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=1>(1,512)</FONT>&nbsp; </TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>13,308</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=6>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="41%" colSpan=2><FONT face=sans-serif size=1>Other income
      (expense):</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="19%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="34%"><FONT face=sans-serif size=1>Interest income</FONT>&nbsp; </TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>140</FONT>&nbsp; </TD>
    <TD noWrap align=left width="19%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>140</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="34%"><FONT face=sans-serif size=1>Interest expense</FONT>&nbsp;
</TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>(1,134)</FONT>&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=1>(69)</FONT>&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=1>(1,408) (1)</FONT>&nbsp; </TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>(2,611)</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="34%"><FONT face=sans-serif size=1>Other, net</FONT>&nbsp; </TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>(192)</FONT>&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=1>3</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>(189)</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="7%"></TD>
    <TD width="34%"></TD>
    <TD width="16%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="19%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="13%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="10%">
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=6>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="34%"><FONT face=sans-serif size=1>Earnings before income taxes and
      minority</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="19%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="34%"><FONT face=sans-serif size=1>interest</FONT>&nbsp; </TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>9,492</FONT>&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=1>3,567</FONT>&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=1>(2,920)</FONT>&nbsp; </TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>10,648</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=6>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="41%" colSpan=2><FONT face=sans-serif size=1>Income Taxes</FONT>&nbsp; </TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>2,485</FONT>&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=1>1,470</FONT>&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=1>(1,197) (7)</FONT>&nbsp; </TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>2,758</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="41%" colSpan=2></TD>
    <TD width="16%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="19%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="13%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="10%">
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=6>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="34%"><FONT face=sans-serif size=1>Earnings before minority
      interest</FONT>&nbsp; </TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>7,007</FONT>&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=1>2,097</FONT>&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=1>(1,723)</FONT>&nbsp; </TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>7,891</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=6>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="41%" colSpan=2><FONT face=sans-serif size=1>Minority Interest</FONT>&nbsp;
    </TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>(97)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="19%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>(97)</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="41%" colSpan=2></TD>
    <TD width="16%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="19%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="13%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="10%">
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=6>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="34%"><FONT face=sans-serif size=1>Net Income</FONT>&nbsp; </TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>6,910</FONT>&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=1>2,097</FONT>&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=1>(1,723)</FONT>&nbsp; </TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>7,794</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="7%"></TD>
    <TD width="34%"></TD>
    <TD width="16%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="19%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="13%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="10%">
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=6>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="41%" colSpan=2><FONT face=sans-serif size=1>Earnings per share
      data:</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="19%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="34%"><FONT face=sans-serif size=1>Basic earnings per
      share</FONT>&nbsp; </TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>2.42</FONT>&nbsp; </TD>
    <TD noWrap align=left width="19%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>2.72</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="34%"><FONT face=sans-serif size=1>Diluted earnings per
      share</FONT>&nbsp; </TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>2.38</FONT>&nbsp; </TD>
    <TD noWrap align=left width="19%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>2.68</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=6>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="41%" colSpan=2><FONT face=sans-serif size=1>Weighted average shares
      outstanding data:</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="19%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="34%"><FONT face=sans-serif size=1>Basic shares
      outstanding</FONT>&nbsp; </TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>2,861</FONT>&nbsp; </TD>
    <TD noWrap align=left width="19%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>2,861</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="34%"><FONT face=sans-serif size=1>Dilutive stock
      options</FONT>&nbsp; </TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>47</FONT>&nbsp; </TD>
    <TD noWrap align=left width="19%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>47</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="7%"></TD>
    <TD width="34%"></TD>
    <TD width="16%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="19%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="13%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="10%">
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=6>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="34%"><FONT face=sans-serif size=1>Diluted shares
      outstanding</FONT>&nbsp; </TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>2,908</FONT>&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=1>-</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;<FONT face=sans-serif size=1>-</FONT>&nbsp; </TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>2,908</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="7%"></TD>
    <TD width="34%"></TD>
    <TD width="16%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="19%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="13%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="10%">
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=6>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=6>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=6>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="7%"><FONT face=sans-serif size=1>1)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="69%" colSpan=3><FONT face=sans-serif size=1>Interest Expense - on the
      incremental debt assumed upon acquisition, at 6.05%.</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=6>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="34%">&nbsp; </TD>
    <TD noWrap align=left width="16%"><FONT face=sans-serif size=1>Incremental Debt</FONT>&nbsp;
</TD>
    <TD noWrap align=left width="19%">&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=1>23,274</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="34%">&nbsp; </TD>
    <TD noWrap align=center width="16%"><FONT face=sans-serif size=1>Interest Rate</FONT>&nbsp; </TD>
    <TD noWrap align=left width="19%">&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=1>6.05%</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="34%">&nbsp; </TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>Months</FONT>&nbsp; </TD>
    <TD noWrap align=left width="19%">&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=1>12</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR>
    <TD width="7%"></TD>
    <TD width="34%"></TD>
    <TD width="16%"></TD>
    <TD width="19%"></TD>
    <TD width="13%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="10%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="34%">&nbsp; </TD>
    <TD noWrap align=left width="16%"><FONT face=sans-serif size=1>Interest Expense</FONT>&nbsp;
</TD>
    <TD noWrap align=left width="19%">&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=1>1,408</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR>
    <TD width="7%"></TD>
    <TD width="34%"></TD>
    <TD width="16%"></TD>
    <TD width="19%"></TD>
    <TD width="13%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="10%"></TD></TR>
  <TR>
    <TD width="99%" colSpan=6>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=right width="7%"><FONT face=sans-serif size=1>2)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="69%" colSpan=3><FONT face=sans-serif size=1>Eliminate intercompany trading
      activity between BCS and existing Twin Disc subsidiaries</FONT>&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=6>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="34%">&nbsp; </TD>
    <TD noWrap align=left width="16%"><FONT face=sans-serif size=1>Sales to TD Italia</FONT>&nbsp;
    </TD>
    <TD noWrap align=left width="19%">&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=1>321</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="34%">&nbsp; </TD>
    <TD noWrap align=right width="16%"><FONT face=sans-serif size=1>Sales to Technodrive</FONT>&nbsp; </TD>
    <TD noWrap align=left width="19%">&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=1>137</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="34%">&nbsp; </TD>
    <TD noWrap align=left width="16%"><FONT face=sans-serif size=1>Sales to TD
      Southeast</FONT>&nbsp; </TD>
    <TD noWrap align=left width="19%">&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=1>178</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR>
    <TD width="7%"></TD>
    <TD width="34%"></TD>
    <TD width="16%"></TD>
    <TD width="19%"></TD>
    <TD width="13%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="10%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD noWrap align=left width="34%">&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD>
    <TD noWrap align=left width="19%">&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=1>636</FONT>&nbsp; </TD>
    <TD noWrap align=left width="10%">&nbsp; </TD></TR>
  <TR>
    <TD width="7%"></TD>
    <TD width="34%"></TD>
    <TD width="16%"></TD>
    <TD width="19%"></TD>
    <TD width="13%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="10%"></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>3)</FONT>&nbsp; &nbsp;
      &nbsp; </TD>
    <TD width="100%"><FONT face=sans-serif size=1>Reflects the
      reclassification of an estimate of costs classified as cost of sales by
      BCS to conform to Twin Disc's classification as marketing, engineering and
      administrative.</FONT> </TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>4)</FONT>&nbsp; &nbsp;
      &nbsp; </TD>
    <TD width="100%"><FONT face=sans-serif size=1>Reflects the expected
      amortization of identifiable finite-lived intangible assets acquired as
      part of the BCS acquisition and the incremental depreciation on the
      write-up of the fixed assets to fair value.</FONT> </TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR></TABLE>
<TABLE cellSpacing=1 cellPadding=0 border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="60%">&nbsp;<FONT face=sans-serif size=1>- non-compete agreements</FONT>&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=1>769</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%"><FONT face=sans-serif size=1>ME&amp;A</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="60%">&nbsp;<FONT face=sans-serif size=1>- customer relationships</FONT>&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=1>160</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%"><FONT face=sans-serif size=1>ME&amp;A</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="60%">&nbsp;<FONT face=sans-serif size=1>- distribution network</FONT>&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=1>34</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%"><FONT face=sans-serif size=1>ME&amp;A</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="60%">&nbsp;<FONT face=sans-serif size=1>- incremental depreciation</FONT>&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=1>414</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%"><FONT face=sans-serif size=1>COGS</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="2%"></TD>
    <TD width="2%"></TD>
    <TD width="60%"></TD>
    <TD width="19%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="16%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="60%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=1>1,377</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%"><FONT face=sans-serif size=1>5)</FONT>&nbsp;
    </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="60%"><FONT face=sans-serif size=1>Eliminate
      historical amortization of intangibles</FONT>&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=1>87</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="2%"><FONT face=sans-serif size=1>6)</FONT>&nbsp;
    </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="60%"><FONT face=sans-serif size=1>Eliminate
      historical depreciation</FONT>&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=1>287</FONT>&nbsp; </TD>
    <TD noWrap align=left width="16%">&nbsp;
</TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>7)</FONT>&nbsp; &nbsp;
      &nbsp; </TD>
    <TD width="100%"><FONT face=sans-serif size=1>Tax effects of the pro forma
      adjustments have been calculated based on the BCS effective rate of
      41%.</FONT> </TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=1>8)</FONT>&nbsp; &nbsp;
      &nbsp; </TD>
    <TD width="100%"><FONT face=sans-serif size=1>Not reflected in the
      unaudited pro forma consolidated statement of earnings above is the
      amortization of the purchase accounting adjutstemnt to record inventory at
      its fair value. This adjustment is excluded as it will impact the first
      year only, and thus is not reflective of the ongoing results of the
      combined operations.</FONT> </TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR></TABLE>
<HR align=center width="100%" noShade SIZE=2>

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</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>4
<FILENAME>r8ka706991.htm
<DESCRIPTION>AUDITED CONSOLIDATED STATEMENT OF OPERATIONS, CONDENSED BALANCE SHEETS AND INDEPENDENT AUDITORS REPORT
<TEXT>

<HTML>
<HEAD>
   <TITLE>r8ka706991.pdf -- Converted by SECPublisher 4.0, created by BCL Technologies Inc., for SEC Filing</TITLE>
</HEAD>

<BODY bgcolor="#ffffff">


<!--$$/page=-->
<A name="page_1"></A>

<TABLE border=0 cellspacing=1 cellpadding=0>
<TR valign="bottom">
	<TD width=71% nowrap align=center>
<FONT size=2 face="sans-serif">BCS GROUP</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=center>
<FONT size=2 face="sans-serif">AGGREGATED BALANCE SHEET</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=center>
<FONT size=2 face="sans-serif">December 31, 2005</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=center>
<FONT size=2 face="sans-serif">(in Euro)</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=1>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=center>
<FONT size=2 face="sans-serif">ASSETS</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">CURRENT ASSETS</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">Cash and cash equivalents</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">952,912</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">Receivables</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">9,814,325</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">Inventories</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">6,031,724</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">Accrued income and prepaid expenses</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">13,865</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">TOTAL CURRENT ASSETS</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">16,812,826</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">NON-CURRENT ASSETS</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">Fixed assets</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">1,465,875</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">Intangible assets</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">448,666</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">Investments</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">45,864</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">TOTAL NON-CURRENT ASSETS</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">1,960,405</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">TOTAL ASSETS</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">18,773,231</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">LIABILITIES AND SHAREHOLDERS' EQUITY</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">CURRENT LIABILITIES</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">Bank overdrafts</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">756,807</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">Short-term bank loans</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">88,106</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">Current portion of long-term debt</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">63,751</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">Advances from customers</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">164,220</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">Payables due to suppliers</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">3,918,200</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">Tax payables</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">649,809</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">Payables due to social security institutions</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">120,181</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">Payables due to others</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">1,444,334</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">Accrued expenses and deferred income</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">155,252</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">TOTAL CURRENT LIABILITIES</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">7,360,660</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">NON-CURRENT LIABILITIES</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">Long-term debt</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">410,333</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">Allowances for risks and charges</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">26,893</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">Employee severance indemnity</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">1,015,951</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">TOTAL NON-CURRENT LIABILITIES</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">1,453,177</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">TOTAL LIABILITIES</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">8,813,837</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">SHAREHOLDERS' EQUITY</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">Share capital</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">362,750</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">Revaluation reserve</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">368,832</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">Legal reserve</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">65,816</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">Other reserves</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">other reserve</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">204,705</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">reserve for rounding</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">(1)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">unavailable reserve</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">1,791</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">currency translation reserve</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">13,100</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">Retained earnings</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">7,171,295</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">Net income</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">1,771,106</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">TOTAL SHAREHOLDERS' EQUITY</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">9,959,394</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">18,773,231</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">MEMORANDUM ACCOUNTS</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=71% nowrap align=left>
<FONT size=2 face="sans-serif">Capital lease obligation</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=26% nowrap align=right>
<FONT size=2 face="sans-serif">207,875</FONT>&nbsp;
	</TD>
</TR>
</TABLE><BR>

<HR noshade align="center" width="100%" size=2>



<!--$$/page=-->
<A name="page_2"></A>

<TABLE border=0 cellspacing=1 cellpadding=0>
<TR valign="bottom">
	<TD width=74% nowrap align=center>
<FONT size=2 face="sans-serif">BCS GROUP</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=center>
<FONT size=2 face="sans-serif">AGGREGATED INCOME STATEMENT</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=center>
<FONT size=2 face="sans-serif">For the year ended December 31, 2005</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=center>
<FONT size=2 face="sans-serif">(in Euro)</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
<FONT size=2 face="sans-serif">REVENUE</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
<FONT size=2 face="sans-serif">Revenues from sales and services</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">22,766,560</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
<FONT size=2 face="sans-serif">Change in finished goods and work in progress inventory</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">(322,543)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
<FONT size=2 face="sans-serif">Other income and revenues</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">189,702</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
<FONT size=2 face="sans-serif">TOTAL REVENUE</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">22,633,719</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
<FONT size=2 face="sans-serif">OPERATING COSTS</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
<FONT size=2 face="sans-serif">Raw materials, consumables and goods</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">11,049,486</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
<FONT size=2 face="sans-serif">Services</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">3,355,675</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
<FONT size=2 face="sans-serif">Leases and rentals</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">473,066</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
<FONT size=2 face="sans-serif">Personnel costs</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="sans-serif">Wages and salaries</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">2,452,600</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="sans-serif">Social security costs</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">673,209</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="sans-serif">Provision for severance indemnity</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">175,616</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="sans-serif">Pension costs</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">288</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="sans-serif">Other costs relating to employees</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">51,337</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
<FONT size=2 face="sans-serif">Valuation adjustments</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="sans-serif">Amortization of intangible assets</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">73,444</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="sans-serif">Depreciation of fixed assets</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">241,530</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="sans-serif">Write downs of current receivables and liquid assets</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">48,598</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
<FONT size=2 face="sans-serif">Changes in inventories of raw materials, consumables and goods</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">535,174</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
<FONT size=2 face="sans-serif">Other provisions</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">143,161</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
<FONT size=2 face="sans-serif">Other operating costs</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">294,302</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
<FONT size=2 face="sans-serif">TOTAL OPERATING COSTS</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">19,567,486</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
<FONT size=2 face="sans-serif">OPERATING MARGIN</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">3,066,233</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
<FONT size=2 face="sans-serif">FINANCIAL INCOME AND EXPENSE</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
<FONT size=2 face="sans-serif">Other financial income</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">5,257</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
<FONT size=2 face="sans-serif">Interest expense and other financial charges</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">(58,319)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
<FONT size=2 face="sans-serif">Foreign exchange gain (loss)</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">(1,771)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
<FONT size=2 face="sans-serif">TOTAL FINANCIAL INCOME AND EXPENSE</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">(54,833)</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
<FONT size=2 face="sans-serif">EXTRAORDINARY INCOME AND CHARGES</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
<FONT size=2 face="sans-serif">Income</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">967</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
<FONT size=2 face="sans-serif">Charges</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">(148)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
<FONT size=2 face="sans-serif">TOTAL EXTRAORDINARY INCOME AND CHARGES</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">819</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
<FONT size=2 face="sans-serif">INCOME BEFORE INCOME TAXES</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">3,012,219</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
<FONT size=2 face="sans-serif">Income taxes</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">(1,241,113)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="sans-serif">current income tax expense</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">(1,250,437)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="sans-serif">deferred income tax benefit</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">9,324</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=74% nowrap align=left>
<FONT size=2 face="sans-serif">NET INCOME</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=23% nowrap align=right>
<FONT size=2 face="sans-serif">1,771,106</FONT>&nbsp;
	</TD>
</TR>
</TABLE><BR>
<P align="right">
<FONT size=2 face="sans-serif">(2)</FONT></P>

<HR noshade align="center" width="100%" size=2>

<!--$$/page=--><A name=page_3></A>
<TABLE cellSpacing=1 cellPadding=0 border=0>

  <TR vAlign=bottom>
    <TD align=center width="99%" colSpan=3><FONT face=sans-serif size=2>AGGREGATED STATEMENT OF CASH
      FLOWS</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=center width="99%" colSpan=3><FONT face=sans-serif size=2>For the year ended December 31,
      2005</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD align=center width="99%" colSpan=3><FONT face=sans-serif size=2>(in Euro)</FONT> </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>
      <HR noShade SIZE=1>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><I><FONT face=sans-serif size=2>Cash flows from
      operating activities:</FONT></I>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="19%">&nbsp; </TD></TR>
  <TR>
    <TD width="78%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="2%"></TD>
    <TD width="19%">
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=sans-serif size=2>Net income</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=2>1,771,106</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=sans-serif size=2>Depreciation and
      amortization</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=2>314,974</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=sans-serif size=2>Write-down of
      receivables</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=2>48,598</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=sans-serif size=2>Write-down of investment in
      subsidiaries</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=2>14,641</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=sans-serif size=2>Provision for employee severance
      indemnity</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=2>175,616</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><I><FONT face=sans-serif size=2>Cash generated
      from operating income before changes in working capital</FONT></I>&nbsp;
    </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><I><FONT face=sans-serif size=2>2,324,935</FONT></I>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=sans-serif size=2>Decrease in
      receivables</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=2>590,521</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=sans-serif size=2>Decrease in
      inventories</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=2>862,976</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=sans-serif size=2>Decrease in accrued income and
      prepaid expenses</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=2>8,998</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=sans-serif size=2>Decrease in payables due to
      suppliers</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=2>(891,813)</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=sans-serif size=2>Increase in advances from
      customers</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=2>154,703</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=sans-serif size=2>Increase in tax
      payables</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=2>385,168</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=sans-serif size=2>Decrease in payables due to
      social security institutions</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=2>(4,115)</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=sans-serif size=2>Increase in payables due to
      others</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=2>328,447</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=sans-serif size=2>Decrease in allowances for risks
      and charges</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=2>(13,437)</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=sans-serif size=2>Decrease in employee severance
      indemnity</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=2>(125,037)</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=sans-serif size=2>Decrease in accrued expenses and
      deferred income</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=2>(115,334)</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="78%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="2%"></TD>
    <TD width="19%">
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=sans-serif size=2>Net cash provided from operating
      activities</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=2>3,506,012</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="78%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="19%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><I><FONT face=sans-serif size=2>Cash flows from
      investing activities:</FONT></I>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="19%">&nbsp; </TD></TR>
  <TR>
    <TD width="78%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="2%"></TD>
    <TD width="19%">
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=sans-serif size=2>Purchase of fixed
      assets</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=2>(433,752)</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=sans-serif size=2>Purchase of intangible
      assets</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=2>(1,400)</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=sans-serif size=2>Disposal of fixed
      assets</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=2>98,894</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=sans-serif size=2>Investment in
      subsidiary</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=2>(14,641)</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="78%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="2%"></TD>
    <TD width="19%">
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=sans-serif size=2>Net cash used in investing
      activities</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=2>(350,899)</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="78%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="19%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><I><FONT face=sans-serif size=2>Cash flows from
      financing activities:</FONT></I>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="19%">&nbsp; </TD></TR>
  <TR>
    <TD width="78%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="2%"></TD>
    <TD width="19%">
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=sans-serif size=2>Repayment of short-term
      debt</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=2>(195,860)</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=sans-serif size=2>Repayment of long-term
      debt</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=2>(185,390)</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="78%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="2%"></TD>
    <TD width="19%">
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=sans-serif size=2>Net cash used in financing
      activities</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=2>(381,250)</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="78%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="19%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=sans-serif size=2>Net increase in cash and cash
      equivalents</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=2>2,773,863</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="78%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="19%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=sans-serif size=2>Cash and cash equivalents at
      beginning of period</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=2>(2,577,758)</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=sans-serif size=2>Cash and cash equivalents at end
      of period</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="19%"><FONT face=sans-serif size=2>196,105</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="78%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="2%"></TD>
    <TD width="19%">
      <HR noShade SIZE=1>
    </TD></TR></TABLE><BR>
<P align=right><FONT face=sans-serif size=2>(3)</FONT></P>
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<P align="left">
<B><FONT size=2 face="sans-serif">Report of Independent Registered Public Accounting Firm</FONT></B></P>
<P align="left">
<FONT size=2 face="sans-serif">To the Board of Directors and Shareholders of BCS Group</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">We have audited the accompanying aggregated balance sheet of BCS Group, comprising BCS Srl, BCS Service Srl, Vetus Srl and Boat Equipment Ltd, as of December 31, 2005, and the related aggregated statements of income
and cash flows for the year then ended. These financial statements are the responsibility of the Group&#146;s management.  Our responsibility is to express an opinion on these financial statements based on our audit.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Except as explained in the following two paragraphs, we conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our
opinion.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Our audit scope was limited for the following two items:</FONT></P>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
	<TD nowrap valign=top>
<FONT size=2 face="serif">&middot;</FONT>&nbsp; &nbsp; &nbsp; 	</TD>
	<TD width=100%>
<FONT size=2 face="sans-serif">We did not observe the taking of the physical inventory as of December 31, 2005 and December 31, 2004, as those dates were prior to our appointment as independent accountants for the Group, and we were unable to
satisfy ourselves regarding the inventory quantities representing approximately 25% of the value of inventory of the Group as of those dates by means of other auditing procedures. Inventory amounts as of December 31, 2004 enter into the
determination of net income and cash flows for the year ended December 31, 2005.</FONT>	</TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<P align="left">
<FONT size=2 face="sans-serif">(4)</FONT></P>

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<!--$$/page=--><A name=page_5></A>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=serif size=2>&#183;</FONT>&nbsp; &nbsp; &nbsp;
    </TD>
    <TD width="100%"><FONT face=sans-serif size=2>We did not obtain audit
      evidence related to the fixed asset revaluations made by the Group in
      accordance with various Italian laws, which represent approximately 22%
      and 4% of fixed assets and shareholders&#146; equity, respectively, as of
      December 31, 2005.</FONT> </TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR></TABLE>
<P align=left><FONT face=sans-serif size=2>In our opinion, except for the
effects of such adjustments, if any, as might have been determined to be
necessary had we been able to perform and complete audit procedures on the items
described in the preceding paragraph, the aggregated financial statements
referred to above present fairly, in all material respects, the financial
position of BCS Group at December 31, 2005, and the results of its operations
and its cash flows for the year then ended in conformity with accounting
principles generally accepted in Italy.</FONT></P>
<P align=left><FONT face=sans-serif size=2>Accounting principles generally
accepted in Italy vary in certain significant respects from accounting
principles generally accepted in the United States of America. Information
relating to the nature and effect of such differences is presented in Notes 17
and 18 of the financial statements.</FONT></P>
<P align=left>
<TABLE>

  <TR>
    <TD noWrap><FONT face=sans-serif size=2>Rome, July 24,
  2006</FONT><BR></TD></TR></TABLE></P>
<P align=left>
<TABLE>

  <TR>
    <TD noWrap><FONT face=sans-serif size=2>/s/ PricewaterhouseCoopers
      SPA</FONT><BR><FONT face=sans-serif size=2>-----------------------------------------------</FONT><BR><FONT face=sans-serif size=2>PricewaterhouseCoopers
SpA</FONT><BR></TD></TR></TABLE></P>
<P align=left><FONT face=sans-serif size=2>(5)</FONT></P>
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<P align="left">
<B><FONT size=2 face="sans-serif">BCS GROUP</FONT></B></P>
<P align="left">
<B><FONT size=2 face="sans-serif">Explanatory notes to the aggregated financial statements December 31, 2005</FONT></B></P>
<P align="left">
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">1 </FONT></B><B><U><FONT size=2 face="sans-serif">Background</FONT></U></B><BR>
</TD></TR></TABLE>
</P>
<P align="left">
<FONT size=2 face="sans-serif">The aggregated financial statements of BCS Group at December 31, 2005 and for the year then ended are comprised of BCS Srl, BCS Service Srl, Vetus Srl and Boat Equipment Ltd (hereinafter, &#147;the Group&#148;). BCS
Srl, BCS Service Srl and Vetus Srl are Italian limited liability companies, whereas Boat Equipment Ltd is incorporated in Malta. The Group manufactures and sells nautical systems for motor pleasure boats, provides assistance and maintenance services
and distributes Vetus branded nautical equipment.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">On May 12, 2006, each of the companies was acquired by Twin Disc Incorporated from a common group of shareholders. </FONT></P>
<P align="left">
<B><FONT size=2 face="sans-serif">2 </FONT></B><B><U><FONT size=2 face="sans-serif">Summary of significant accounting and reporting policies </FONT></U></B><B><FONT size=2 face="sans-serif">Basis of presentation</FONT></B></P>
<P align="left">
<FONT size=2 face="sans-serif">The aggregated financial statements of BCS Group have been prepared in accordance with principles prescribed by Italian law and supplemented by the accounting principles issued by the Consiglio Nazionale dei Dottori
Commercialisti e dei Ragionieri, by the Organismo Italiano di Contabilit&agrave; or, in the absence thereof and if applicable, the International Accounting Standards Board (IASB) (collectively, "Italian GAAP"). Italian GAAP differs in certain
respects from generally accepted accounting principles in the United States ("U.S. GAAP"). A description of these differences and their effects on net income and shareholders&#146; equity is set forth in Notes 17 and 18. The financial statements
have been reformatted from the Italian statutory financial statement presentation. Reclassifications reflect essentially a different aggregation of certain items that were segregated between current and non-current.</FONT></P>
<P align="left">
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">Principles of aggregation</FONT></B><BR>
</TD></TR></TABLE>
</P>
<P align="left">
<FONT size=2 face="sans-serif">The aggregated financial statements of BCS Group include the statutory accounts of the four companies acquired by Twin Disc Incorporated as described above. Other companies owned by the shareholder group that were not
acquired by Twin Disc Incorporated have been excluded. Furthermore, insignificant subsidiaries have not been aggregated. These companies are accounted for under the cost method as described below under the heading Investments.</FONT></P>

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<P align="left">
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">Intercompany transactions</FONT></B><BR>
</TD></TR></TABLE>
</P>
<P align="left">
<FONT size=2 face="sans-serif">All intercompany balances and transactions have been eliminated.</FONT></P>
<P align="left">
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">Foreign currency translation</FONT></B><BR>
</TD></TR></TABLE>
</P>
<P align="left">
<FONT size=2 face="sans-serif">Assets and liabilities of Boat Equipment Ltd have been translated at the exchange rate prevailing at year-end, whereas income statement accounts have been translated at the average exchange rate for the period. Related
translation adjustments are reported as a component of shareholders&#146; equity.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Monetary assets and liabilities denominated in currencies other than the functional currency are translated into Euro using the prevailing rate at the balance sheet date. All exchange rate differences are recognized in
earnings in the period.</FONT></P>
<P align="left">
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">Cash and cash equivalents</FONT></B><BR>
</TD></TR></TABLE>
</P>
<P align="left">
<FONT size=2 face="sans-serif">Cash and cash equivalents include cash on hand and at banks and are recorded at nominal value. In the Statement of Cash Flows, bank overdrafts are included as part of cash and cash equivalents in accordance with
International Accounting Standards.</FONT></P>
<P align="left">
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">Receivables and payables</FONT></B><BR>
</TD></TR></TABLE>
</P>
<P align="left">
<FONT size=2 face="sans-serif">Receivables are recorded at their estimated net realizable value. Payables are recorded at their nominal value. </FONT></P>
<P align="left">
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">Inventories</FONT></B><BR>
</TD></TR></TABLE>
</P>
<P align="left">
<FONT size=2 face="sans-serif">Inventories consist of raw materials, work in progress and finished goods and are valued at the lower of weighted average cost or market value.</FONT></P>
<P align="left">
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">Prepayments and accrued income</FONT></B><BR>
</TD></TR></TABLE>
</P>
<P align="left">
<FONT size=2 face="sans-serif">Such items relate to revenues and expenses referring to two or more financial periods and are recorded on an accrual basis.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">(7)</FONT></P>

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<P align="left">
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">Fixed assets</FONT></B><BR>
</TD></TR></TABLE>
</P>
<P align="left">
<FONT size=2 face="sans-serif">Fixed assets are stated at purchase or production cost, including any incidental expenses and all costs directly chargeable to the assets, as adjusted by revaluations in accordance with various Italian laws;
revaluations are included in aggregated shareholders&#146; equity.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">The recorded value of fixed assets is depreciated using the straight-line method by applying depreciation rates that are based on the estimated useful lives of the fixed assets.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Fixed assets purchased during the year are depreciated at 50% of the ordinary rates to reflect the reduced usage of the related asset. In the event of an other than temporary impairment in value, such cost is written
down accordingly. The original value of such fixed assets is subsequently reinstated if the reasons for any write-downs cease to apply. The Group has not recorded any impairment charges. Routine maintenance costs are expensed to the income statement
as incurred. The costs of significant betterments or improvements in production capacity are attributed to the relevant asset and depreciated over the remaining useful life of the asset. </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">The depreciation rates applied to the principal categories of fixed assets are the following:</FONT></P>
<TABLE border=0 cellspacing=1 cellpadding=0>
<TR valign="bottom">
	<TD width=66% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=31% nowrap align=center>
<FONT size=2 face="sans-serif">_____</FONT><U><FONT size=2 face="sans-serif">%</FONT></U><FONT size=2 face="sans-serif">____</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=66% nowrap align=left>
<FONT size=2 face="sans-serif">Land and building</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=31% nowrap align=center>
<FONT size=2 face="sans-serif">3%</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=66% nowrap align=left>
<FONT size=2 face="sans-serif">Machinery and equipment</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=31% nowrap align=center>
<FONT size=2 face="sans-serif">15%</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=66% nowrap align=left>
<FONT size=2 face="sans-serif">Commercial and industrial equipment</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=31% nowrap align=center>
<FONT size=2 face="sans-serif">10% - 15%</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=66% nowrap align=left>
<FONT size=2 face="sans-serif">Fittings and furniture</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=31% nowrap align=center>
<FONT size=2 face="sans-serif">12%</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=66% nowrap align=left>
<FONT size=2 face="sans-serif">Vehicles</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=31% nowrap align=center>
<FONT size=2 face="sans-serif">20% - 25%</FONT>&nbsp;
	</TD>
</TR>
</TABLE><BR>
<P align="left">
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">Intangible assets</FONT></B><BR>
</TD></TR></TABLE>
</P>
<P align="left">
<FONT size=2 face="sans-serif">Intangible assets are stated at purchase or production cost, including any incidental expenses and all costs directly chargeable to the assets. Such assets are amortized on a straight-line basis in accordance with the
rates shown below, which are representative of their useful economic lives.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">(8)</FONT></P>

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<TABLE cellSpacing=1 cellPadding=0 border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="74%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="23%"><FONT face=sans-serif size=2>_____</FONT><U><FONT face=sans-serif size=2>%</FONT></U><FONT face=sans-serif size=2>____</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%"><FONT face=sans-serif size=2>Start &#150; up and
      expansion</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="23%"><FONT face=sans-serif size=2>10%</FONT>&nbsp;
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%"><FONT face=sans-serif size=2>Research,
      development and advertising costs</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="23%"><FONT face=sans-serif size=2>20%</FONT>&nbsp;
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%"><FONT face=sans-serif size=2>Industrial
      patents and intellectual property rights</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="23%"><FONT face=sans-serif size=2>10%</FONT>&nbsp;
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%"><FONT face=sans-serif size=2>Permits,
      licenses, trademarks and similar rights</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="23%"><FONT face=sans-serif size=2>10%</FONT>&nbsp;
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="74%"><FONT face=sans-serif size=2>Goodwill</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="23%"><FONT face=sans-serif size=2>10%</FONT>&nbsp;
    </TD></TR></TABLE><BR>
<P align=left><FONT face=sans-serif size=2>In the event of an other than
temporary impairment in the value of such intangibles, the relevant asset is
written down accordingly. The original value of such assets is subsequently
reinstated if the reasons for any write-down cease to apply. The Group has not
recorded any impairment charges.</FONT></P>
<P align=left><FONT face=sans-serif size=2>Start-up and expansion costs include
non-recurring costs incurred during the startup and expansion of the Group in
relation to exceptional corporate events that provide long-term benefits.
</FONT></P>
<P align=left><FONT face=sans-serif size=2>Research, development and advertising
costs are capitalized if they provide long-term benefits.</FONT></P>
<P align=left><FONT face=sans-serif size=2>Industrial patents and intellectual
property rights include the purchase cost of application software licenses
allowing unlimited use, as well as the capitalized costs of the time spent by
Group personnel on design, development and implementation activities for
information systems.</FONT></P>
<P align=left><FONT face=sans-serif size=2>Permits, licenses, trademarks and
similar rights are recorded at the cost of their development or purchase price,
including incidental expenses. The cost is amortized over the duration of the
license. </FONT></P>
<P align=left><FONT face=sans-serif size=2>Goodwill represents the difference
between the amount paid for the acquisition of companies and their related net
book value. </FONT></P>
<P align=left>
<TABLE>

  <TR>
    <TD noWrap><B><FONT face=sans-serif size=2>Investments</FONT></B><BR></TD></TR></TABLE></P>
<P align=left><FONT face=sans-serif size=2>Equity investments relate to
investments in subsidiaries and related companies and are valued at cost. In the
event of an other than temporary impairment in value, such cost is written down.
The original value of such assets is subsequently reinstated if the reasons for
any write-down cease to apply.</FONT></P>
<P align=left><B><FONT face=sans-serif size=2>Provisions for contingencies and
other liabilities </FONT></B></P>
<P align=left><FONT face=sans-serif size=2>Provisions for contingencies or other
liabilities relate to losses that are either likely or certain to be incurred
but are uncertain as to their amount or the date on which they become due. Such
provisions represent management&#146;s best estimate based on available
information.</FONT></P>
<P align=left><BR>&nbsp;</P>
<P align=left><FONT face=sans-serif size=2>(9)</FONT></P>
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<P align=left><FONT face=sans-serif size=2><B><FONT face=sans-serif size=2>Employee severance indemnity</FONT></B></FONT></P>
<P align=left><FONT face=sans-serif size=2>The employee severance indemnity is
calculated and recorded in accordance with Italian law and existing labor
agreements and represents the entire liability owed to employees, if terminated
at the balance sheet date, net of any advances paid. </FONT></P>
<P align=left>
<TABLE>

  <TR>
    <TD noWrap><B><FONT face=sans-serif size=2>Revenues and
      costs</FONT></B><BR></TD></TR></TABLE></P>
<P align=left><FONT face=sans-serif size=2>Revenues from the sales of products
and services are recognized upon transfer of title or completion of service.
Costs are recognized when the related goods and services are sold, consumed or
allocated. </FONT></P>
<P align=left><B><FONT face=sans-serif size=2>Income taxes </FONT></B></P>
<P align=left><FONT face=sans-serif size=2>The provision for current taxes is
determined in accordance with enacted regulations and tax rates.</FONT></P>
<P align=left><FONT face=sans-serif size=2>Deferred tax assets or liabilities
are recognized for differences between the financial reporting and tax bases of
assets and liabilities. Deferred tax liabilities are not recognized if ultimate
payment is not deemed probable. </FONT></P>
<P align=left><FONT face=sans-serif size=2>Deferred tax assets are recognized
when there is a reasonable expectation of their realization. </FONT></P>
<P align=left><B><FONT face=sans-serif size=2>Statement of cash
flows</FONT></B></P>
<P align=left><FONT face=sans-serif size=2>The statement of cash flows is
prepared in accordance with International Accounting Standards using the
indirect method.</FONT></P>
<P align=left><FONT face=sans-serif size=2>(10)</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<A name=page_11></A>
<P align=left>
<TABLE>

  <TR>
    <TD noWrap><B><FONT face=sans-serif size=2>3</FONT></B> <B><U><FONT face=sans-serif size=2>Receivables</FONT></U></B><BR></TD></TR></TABLE></P>
<P align=left><FONT face=sans-serif size=2>At December 31, 2005 receivables
total &euro;9,881 thousand, as follows (in &euro;/000):</FONT></P>
<TABLE cellSpacing=1 cellPadding=0 border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><B><FONT face=sans-serif size=2>RECEIVABLES</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="46%"><B><FONT face=sans-serif size=2>Dec. 31, 2005</FONT></B>&nbsp;</TD></TR>
  <TR>
    <TD width="51%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="46%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif size=2>Trade
      receivables</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="46%"><FONT face=sans-serif size=2>8,889</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif size=2>Tax
      receivable</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="46%"><FONT face=sans-serif size=2>2</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif size=2>Deferred tax
      assets</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="46%"><FONT face=sans-serif size=2>372</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif size=2>Other
      receivables</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="46%"><FONT face=sans-serif size=2>551</FONT>&nbsp;</TD></TR>
  <TR>
    <TD width="51%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="46%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><B><FONT face=sans-serif size=2>Total receivables</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="46%"><B><FONT face=sans-serif size=2>9,814</FONT></B>&nbsp;</TD></TR>
  <TR>
    <TD width="51%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="46%">
      <HR noShade SIZE=2>
    </TD></TR></TABLE><BR>
<P align=left><FONT face=sans-serif size=2>Deferred tax assets include &euro;274
thousand related to the provision for slow-moving inventory, &euro;65 thousand
related to the elimination of margin on intercompany sales and &euro;33 thousand
related to the bad debt provision.</FONT></P>
<P align=left><FONT face=sans-serif size=2>Other receivables include &euro;499
thousand related to an insurance policy to cover the indemnity that the Group
must pay to members of the board of directors when they step down. The related
liability is recorded in payables due to others.</FONT></P>
<P align=left><FONT face=sans-serif size=2>The bad debt provision totals &euro;264
thousand.</FONT></P>
<P align=left>
<TABLE>

  <TR>
    <TD noWrap><B><FONT face=sans-serif size=2>4</FONT></B> <B><U><FONT face=sans-serif size=2>Inventories</FONT></U></B><BR></TD></TR></TABLE></P>
<P align=left><FONT face=sans-serif size=2>At December 31, 2005 inventories
total &euro;6,032 thousand, as follows (in &euro;/000):</FONT></P>
<TABLE cellSpacing=1 cellPadding=0 border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="61%">&nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT face=sans-serif size=2>INVENTORIES</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="21%"><B><FONT face=sans-serif size=2>Dec. 31,</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%"><B><FONT face=sans-serif size=2>2005</FONT></B>&nbsp;</TD></TR>
  <TR>
    <TD width="4%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="61%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="21%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=7>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="67%" colSpan=3><FONT face=sans-serif size=2>Raw materials and consumables</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="21%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%"><FONT face=sans-serif size=2>2,892</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="67%" colSpan=3><FONT face=sans-serif size=2>Provision for raw materials and consumables</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="21%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;<FONT face=sans-serif size=2>(295)</FONT>&nbsp;</TD></TR>
  <TR>
    <TD width="67%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="21%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="67%" colSpan=3><B><FONT face=sans-serif size=2>Total raw materials and
    consumables</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="21%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%"><B><FONT face=sans-serif size=2>2,597</FONT></B>&nbsp;</TD></TR>
  <TR>
    <TD width="67%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="21%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="67%" colSpan=3><FONT face=sans-serif size=2>Finished goods and goods for resale</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="21%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%"><FONT face=sans-serif size=2>3,875</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="67%" colSpan=3><FONT face=sans-serif size=2>Provision for finished goods and goods for
    resale</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="21%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;<FONT face=sans-serif size=2>(440)</FONT>&nbsp;</TD></TR>
  <TR>
    <TD width="67%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="21%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="67%" colSpan=3><B><FONT face=sans-serif size=2>Total finished goods and goods for
      resale</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="21%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%"><B><FONT face=sans-serif size=2>3,435</FONT></B>&nbsp;</TD></TR>
  <TR>
    <TD width="67%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="21%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="67%" colSpan=3><B><FONT face=sans-serif size=2>Total inventories</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="21%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%"><B><FONT face=sans-serif size=2>6,032</FONT></B>&nbsp;</TD></TR>
  <TR>
    <TD width="67%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="21%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD></TR></TABLE><BR>
<P align=left><FONT face=sans-serif size=2></FONT>&nbsp;</P>
<P align=left><FONT face=sans-serif size=2><B>5 <U>Fixed assets</U></B>&nbsp;
</FONT></P>
<P align=left><FONT face=sans-serif size=2>At December 31, 2005 fixed assets
total &euro;1,466 thousand and reflect an increase of &euro;434 thousand, a decrease of
&euro;100 thousand for disposals and &euro;241 thousand for depreciation.</FONT></P>
<P align=left><FONT face=sans-serif size=2>The following tables provide data on
the historical cost, purchases, disposals, and depreciation during the year and
the closing balance (in &euro;/000):</FONT></P>
<P align=left><FONT face=sans-serif size=2>(11)</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<!--$$/page=--><A name=page_12></A>
<TABLE cellSpacing=1 cellPadding=0 border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="27%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="5%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="27%" colSpan=5><B><FONT face=sans-serif size=2>HISTORICAL COST</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="6%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="8%">&nbsp; </TD></TR>
  <TR>
    <TD width="27%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="5%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="27%" colSpan=5>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="6%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="27%"><B><FONT face=sans-serif size=2>FIXED ASSETS</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="16%" colSpan=3><B><FONT face=sans-serif size=2>Dec. 31, 2004</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="16%" colSpan=3><B><FONT face=sans-serif size=2>Purchases</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="16%" colSpan=3><B><FONT face=sans-serif size=2>Disposals</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="16%" colSpan=3><B><FONT face=sans-serif size=2>Dec. 31, 2005</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="27%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="16%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="16%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="16%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="16%" colSpan=3>
      <HR noShade SIZE=2>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=17>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="27%"><FONT face=sans-serif size=2>Land and
      buildings</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=sans-serif size=2>821</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="5%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="9%"><FONT face=sans-serif size=2>-</FONT>&nbsp;
    </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp;
      &nbsp;<FONT face=sans-serif size=2>-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="6%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>821</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="27%"><FONT face=sans-serif size=2>Machinery and
      equipment</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=sans-serif size=2>698</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="5%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=2>31</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp;
      &nbsp; &nbsp;<FONT face=sans-serif size=2>2</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="6%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>727</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="27%"><FONT face=sans-serif size=2>Commercial and
      industrial</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=sans-serif size=2>1,093</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="5%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=2>232</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp;
      &nbsp;<FONT face=sans-serif size=2>82</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="6%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>1,243</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="27%"><FONT face=sans-serif size=2>Other</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=sans-serif size=2>382</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="5%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=2>69</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp;
      &nbsp;<FONT face=sans-serif size=2>16</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="6%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>435</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="27%"><FONT face=sans-serif size=2>Fixed assets
      under</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="5%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="6%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="8%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="27%"><FONT face=sans-serif size=2>construction and
      advances</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="7%"><FONT face=sans-serif size=2>-</FONT>&nbsp;
    </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="5%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=2>102</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp;
      &nbsp;<FONT face=sans-serif size=2>-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="6%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>102</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="27%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="5%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="6%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="27%"><B><FONT face=sans-serif size=2>Total fixed assets</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><B><FONT face=sans-serif size=2>2,994</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="5%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><B><FONT face=sans-serif size=2>434</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="7%"><B><FONT face=sans-serif size=2>100</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="6%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><B><FONT face=sans-serif size=2>3,328</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="27%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="5%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="6%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=17>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="27%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="51%" colSpan=11><B><FONT face=sans-serif size=2>ACCUMULATED DEPRECIATION</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="8%">&nbsp; </TD></TR>
  <TR>
    <TD width="27%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="51%" colSpan=11>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="27%"><B><FONT face=sans-serif size=2>FIXED ASSETS</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="16%" colSpan=3><B><FONT face=sans-serif size=2>Dec. 31, 2004</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="16%" colSpan=3><B><FONT face=sans-serif size=2>Increase</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="16%" colSpan=3><B><FONT face=sans-serif size=2>Decrease</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="16%" colSpan=3><B><FONT face=sans-serif size=2>Dec. 31, 2005</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="27%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="16%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="16%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="16%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="16%" colSpan=3>
      <HR noShade SIZE=2>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=17>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="27%"><FONT face=sans-serif size=2>Land and
      buildings</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=sans-serif size=2>175</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="5%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=2>22</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp;
      &nbsp;<FONT face=sans-serif size=2>-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="6%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>197</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="27%"><FONT face=sans-serif size=2>Machinery and
      equipment</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=sans-serif size=2>506</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="5%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=2>55</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp;
      &nbsp;<FONT face=sans-serif size=2>-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="6%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>561</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="27%"><FONT face=sans-serif size=2>Commercial and
      industrial</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=sans-serif size=2>639</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="5%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=2>130</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp;
      &nbsp;<FONT face=sans-serif size=2>-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="6%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>769</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="27%"><FONT face=sans-serif size=2>Other</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=sans-serif size=2>301</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="5%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=2>34</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp;
      &nbsp;<FONT face=sans-serif size=2>-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="6%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>335</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="27%"><FONT face=sans-serif size=2>Fixed assets
      under</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="5%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="6%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="8%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="27%"><FONT face=sans-serif size=2>construction and
      advances</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="7%"><FONT face=sans-serif size=2>-</FONT>&nbsp;
    </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="5%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="9%"><FONT face=sans-serif size=2>-</FONT>&nbsp;
    </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp;
      &nbsp;<FONT face=sans-serif size=2>-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="6%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="8%"><FONT face=sans-serif size=2>-</FONT>&nbsp;
    </TD></TR>
  <TR>
    <TD width="27%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="5%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="6%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="27%"><B><FONT face=sans-serif size=2>Total fixed assets</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><B><FONT face=sans-serif size=2>1,621</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="5%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><B><FONT face=sans-serif size=2>241</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp;
      &nbsp;<B><FONT face=sans-serif size=2>-</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="6%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><B><FONT face=sans-serif size=2>1,862</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="27%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="5%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="6%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=17>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="27%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="14%" colSpan=3><B><FONT face=sans-serif size=1>Dec. 31, 2004</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="15%" colSpan=3><B><FONT face=sans-serif size=1>Dec. 31, 2005</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="8%">&nbsp; </TD></TR>
  <TR>
    <TD width="27%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="14%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="15%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="27%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="23%" colSpan=5><B><FONT face=sans-serif size=1>Historical Accumulated</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="24%" colSpan=5><B><FONT face=sans-serif size=1>Historical Accumulated</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="8%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="27%"><B><FONT face=sans-serif size=1>FIXED ASSETS</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="5%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><B><FONT face=sans-serif size=1>Net
      Value</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="6%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><B><FONT face=sans-serif size=1>Net
      Value</FONT></B>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="27%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp;
      &nbsp;<B><FONT face=sans-serif size=1>Cost</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="14%" colSpan=3><B><FONT face=sans-serif size=1>depreciation</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp;
      &nbsp;<B><FONT face=sans-serif size=1>Cost</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="15%" colSpan=3><B><FONT face=sans-serif size=1>depreciation</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="8%">&nbsp; </TD></TR>
  <TR>
    <TD width="27%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="14%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="15%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=17>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="27%"><FONT face=sans-serif size=1>Land and
      buildings</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="16%" colSpan=3><FONT face=sans-serif size=1>821</FONT>&nbsp;
    </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="5%"><FONT face=sans-serif size=1>175</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=1>646</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="16%" colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>821</FONT>&nbsp;
    </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="6%"><FONT face=sans-serif size=1>197</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=1>624</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="27%"><FONT face=sans-serif size=1>Machinery and
      equipment</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="16%" colSpan=3><FONT face=sans-serif size=1>698</FONT>&nbsp;
    </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="5%"><FONT face=sans-serif size=1>506</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=1>192</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="16%" colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>727</FONT>&nbsp;
    </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="6%"><FONT face=sans-serif size=1>561</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=1>166</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="27%"><FONT face=sans-serif size=1>Commercial and
      industrial equipment</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="16%" colSpan=3><FONT face=sans-serif size=1>1,093</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="5%"><FONT face=sans-serif size=1>639</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=1>454</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="16%" colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>1,243</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="6%"><FONT face=sans-serif size=1>769</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=1>474</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="27%"><FONT face=sans-serif size=1>Other</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="16%" colSpan=3><FONT face=sans-serif size=1>382</FONT>&nbsp;
    </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="5%"><FONT face=sans-serif size=1>301</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=1>81</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="16%" colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>435</FONT>&nbsp;
    </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="6%"><FONT face=sans-serif size=1>335</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=1>100</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="27%"><FONT face=sans-serif size=1>Fixed assets
      under construction and</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="5%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="6%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="8%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="27%"><FONT face=sans-serif size=1>advances</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="5%">&nbsp;
      &nbsp;<FONT face=sans-serif size=1>-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="16%" colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>102</FONT>&nbsp;
    </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="6%"><FONT face=sans-serif size=1>-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=1>102</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="27%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="5%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="16%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="6%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="27%"><B><FONT face=sans-serif size=1>Total fixed assets</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="16%" colSpan=3><B><FONT face=sans-serif size=1>2,994</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="5%"><B><FONT face=sans-serif size=1>1,621</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><B><FONT face=sans-serif size=1>1,373</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="16%" colSpan=3>&nbsp; &nbsp; &nbsp; &nbsp;<B><FONT face=sans-serif size=1>3,328</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="6%"><B><FONT face=sans-serif size=1>1,862</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><B><FONT face=sans-serif size=1>1,466</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="27%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="16%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="5%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="16%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="6%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD></TR></TABLE><BR>
<P align=left><FONT face=sans-serif size=2>Revaluations made in previous years
in accordance with Italian laws are as follows (in &euro;/000):</FONT></P>
<TABLE cellSpacing=1 cellPadding=0 border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="51%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="31%"><B><FONT face=sans-serif size=2>Year</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="13%"><B><FONT face=sans-serif size=2>Amount</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="51%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="31%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="13%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif size=2>Land and
      buildings</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="31%"><FONT face=sans-serif size=2>2003</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>328</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><FONT face=sans-serif size=2>Machinery and
      equipment</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="31%"><FONT face=sans-serif size=2>2001</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>127</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="51%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="2%"></TD>
    <TD width="31%">
      <HR noShade SIZE=1>
    </TD>
    <TD width="2%"></TD>
    <TD width="13%">
      <HR noShade SIZE=1>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="51%"><B><FONT face=sans-serif size=2>TOTAL</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="31%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT face=sans-serif size=2>455</FONT></B>&nbsp;
</TD></TR>
  <TR>
    <TD width="51%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="31%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="13%">
      <HR noShade SIZE=2>
    </TD></TR></TABLE><BR>
<P align=left><FONT face=sans-serif size=2>(12)</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<P><!--$$/page=--><A name=page_13></A></P>
<P align=left><FONT face=sans-serif size=2>The following table shows the effects
on the financial statements if the Group had treated qualifying leases as
capital leases (in &euro;/000):</FONT></P>
<TABLE cellSpacing=1 cellPadding=0 border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="4%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="78%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="13%"><B><FONT face=sans-serif size=2>&euro;/000</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="4%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="78%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="13%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" colSpan=3><B><I><FONT face=sans-serif size=2>Income
      Statement:</FONT></I></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" colSpan=3><FONT face=sans-serif size=2>Rent expense</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=2>168</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" colSpan=3><FONT face=sans-serif size=2>Depreciation</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=2>(184)</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" colSpan=3><FONT face=sans-serif size=2>Interest expense</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=2>(14)</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" colSpan=3><FONT face=sans-serif size=2>Tax effect</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=2>11</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="84%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="13%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" colSpan=3><B><FONT face=sans-serif size=2>Total effect - Income Statement</FONT></B>&nbsp;
    </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="13%"><B><FONT face=sans-serif size=2>(19)</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="84%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="13%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" colSpan=3><B><I><FONT face=sans-serif size=2>Balance
      sheet:</FONT></I></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" colSpan=3><FONT face=sans-serif size=2>Fixed assets</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=2>346</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" colSpan=3><FONT face=sans-serif size=2>Pre-paid expenses</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=2>(10)</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" colSpan=3><FONT face=sans-serif size=2>Capital lease obligations</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=2>(207)</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" colSpan=3><FONT face=sans-serif size=2>Tax effect</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="13%"><FONT face=sans-serif size=2>(48)</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="84%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="13%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" colSpan=3><B><FONT face=sans-serif size=2>Total effect - Balance Sheet</FONT></B>&nbsp;
</TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="13%"><B><FONT face=sans-serif size=2>81</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="84%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="13%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="4%"><B><FONT face=sans-serif size=2>6</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="78%"><B><U><FONT face=sans-serif size=2>Intangible assets</FONT></U></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=5>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="84%" colSpan=3><FONT face=sans-serif size=2>At December 31, 2005, intangible fixed assets total &euro;449
      thousand.</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp;
</TD></TR></TABLE><BR>
<P align=left><FONT face=sans-serif size=2>The following tables provide data on
the historical cost, purchases, disposals and amortization made during the year
and the closing balance (in &euro;/000):</FONT></P>
<TABLE cellSpacing=1 cellPadding=0 border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="47%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="25%" colSpan=3><B><FONT face=sans-serif size=2>HISTORICAL COST</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR>
    <TD width="47%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="12%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="25%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="12%"><B><FONT face=sans-serif size=2>Dec. 31,</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="15%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="8%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><B><FONT face=sans-serif size=2>Dec. 31,</FONT></B>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%">&nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT face=sans-serif size=2>INTANGIBLE
      ASSETS</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="25%" colSpan=3><B><FONT face=sans-serif size=2>Purchases Disposals</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="12%"><B><FONT face=sans-serif size=2>2004</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="15%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="8%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="9%"><B><FONT face=sans-serif size=2>2005</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="47%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="12%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="15%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=9>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%"><FONT face=sans-serif size=2>Start-up and
      expansion costs</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=2>22</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="15%"><FONT face=sans-serif size=2>-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=2>22</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%"><FONT face=sans-serif size=2>Research,
      development and advertising costs</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=2>62</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="15%"><FONT face=sans-serif size=2>1</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=2>63</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%"><FONT face=sans-serif size=2>Industrial
      patents and intellectual property rights</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=2>2</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="15%"><FONT face=sans-serif size=2>-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=2>2</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%"><FONT face=sans-serif size=2>Permits,
      licenses, trademarks and similar rights</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=2>260</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="15%"><FONT face=sans-serif size=2>-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=2>260</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%"><FONT face=sans-serif size=2>Goodwill</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=2>489</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="15%"><FONT face=sans-serif size=2>-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=2>489</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%"><FONT face=sans-serif size=2>Other</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=2>15</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="15%"><FONT face=sans-serif size=2>-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=2>15</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="47%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="12%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="15%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%"><B><FONT face=sans-serif size=2>Total intangible assets</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="12%"><B><FONT face=sans-serif size=2>850</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="15%"><B><FONT face=sans-serif size=2>1</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><B><FONT face=sans-serif size=2>-</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><B><FONT face=sans-serif size=2>851</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="47%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="12%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="15%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=9>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="25%" colSpan=3><B><FONT face=sans-serif size=2>AMORTIZATION</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR>
    <TD width="47%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="12%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="25%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="12%"><B><FONT face=sans-serif size=2>Dec. 31,</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="15%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="8%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><B><FONT face=sans-serif size=2>Dec. 31,</FONT></B>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%">&nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT face=sans-serif size=2>INTANGIBLE
      ASSETS</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="12%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="25%" colSpan=3><B><FONT face=sans-serif size=2>Increase Decrease</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="12%"><B><FONT face=sans-serif size=2>2004</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="15%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="8%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="9%"><B><FONT face=sans-serif size=2>2005</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="47%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="12%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="15%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=9>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%"><FONT face=sans-serif size=2>Start-up and
      expansion costs</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=2>4</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="15%"><FONT face=sans-serif size=2>2</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=2>6</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%"><FONT face=sans-serif size=2>Research,
      development and advertising costs</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=2>29</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="15%"><FONT face=sans-serif size=2>12</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=2>41</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%"><FONT face=sans-serif size=2>Industrial
      patents and intellectual property rights</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=2>1</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="15%"><FONT face=sans-serif size=2>-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=2>1</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%"><FONT face=sans-serif size=2>Permits,
      licenses, trademarks and similar rights</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=2>78</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="15%"><FONT face=sans-serif size=2>29</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=2>107</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%"><FONT face=sans-serif size=2>Goodwill</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=2>208</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="15%"><FONT face=sans-serif size=2>27</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=2>235</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%"><FONT face=sans-serif size=2>Other</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=2>9</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="15%"><FONT face=sans-serif size=2>3</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>-</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=2>12</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="47%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="12%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="15%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="47%"><B><FONT face=sans-serif size=2>Total intangible assets</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="12%"><B><FONT face=sans-serif size=2>329</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="15%"><B><FONT face=sans-serif size=2>73</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="8%"><B><FONT face=sans-serif size=2>-</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="9%"><B><FONT face=sans-serif size=2>402</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="47%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="12%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="15%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD></TR></TABLE><BR>
<P align=left><FONT face=sans-serif size=2>(13)</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<A name=page_14></A>
<TABLE cellSpacing=1 cellPadding=0 border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="34%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="9%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="20%" colSpan=3><FONT face=sans-serif size=1><B><FONT size=2>NET VALUE&nbsp;</FONT></B></FONT></TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD></TR>
  <TR>
    <TD width="34%"></TD>
    <TD width="2%"></TD>
    <TD width="10%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="20%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="34%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="32%" colSpan=5>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2>&nbsp;<B><FONT face=sans-serif size=2>Dec. 31, 2004</FONT></B>&nbsp;</FONT></TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="29%" colSpan=5>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2>&nbsp;<B><FONT face=sans-serif size=2>Dec. 31, 2005</FONT></B>&nbsp;</FONT></TD></TR>
  <TR>
    <TD width="34%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="32%" colSpan=5>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="29%" colSpan=5>
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="34%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=center width="10%" rowSpan=3><FONT size=2>
      <P align=center><B><FONT face=sans-serif size=2>Historical</FONT></B></P>
      <P align=center><B><FONT face=sans-serif size=2>Cost</FONT></B>&nbsp;</P></FONT></TD>
    <TD width="2%"></TD>
    <TD noWrap align=right width="9%" background="" rowSpan=3><B><FONT face=sans-serif size=1><FONT size=2>Accum</FONT>.</FONT></B>&nbsp;&nbsp;<BR>&nbsp;<BR><B><FONT face=sans-serif size=1><FONT size=2>Amort.</FONT></FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="9%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=center width="9%" rowSpan=3><B><FONT face=sans-serif size=1><FONT size=2>Historical&nbsp;</FONT></FONT></B><BR><FONT size=2>&nbsp;</FONT><BR><B><FONT face=sans-serif size=1><FONT size=2>Cost&nbsp;</FONT></FONT></B></TD>
    <TD width="2%"></TD>
    <TD noWrap align=center width="8%" background="" rowSpan=3><FONT face=SansSerif>
      <P><B><FONT size=2><BR><FONT size=5><FONT size=2>&nbsp;Accum.</FONT></FONT></FONT></B></P>
      <P><B><FONT size=2><FONT face=SansSerif></FONT><BR><FONT size=5><FONT size=2><FONT size=5><FONT size=2>Amort</FONT></FONT>.</FONT></FONT>&nbsp;</FONT></B></P></FONT></TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="34%"><FONT size=2>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp;<B><FONT face=sans-serif size=2>INTANGIBLE ASSETS</FONT></B>&nbsp;</FONT></TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="9%"><B><FONT face=sans-serif size=1><FONT size=2>Net Value&nbsp;</FONT></FONT></B></TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><B><FONT face=sans-serif size=1><FONT size=2>Net Value&nbsp;</FONT></FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="34%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="9%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD></TR>
  <TR>
    <TD width="34%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="10%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=13>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="34%"><FONT face=sans-serif size=1>Start-up and
      expansion costs</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>22</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=1>4</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=1>18</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=1>22</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=1>6</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=1>16</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="34%"><FONT face=sans-serif size=1>Research,
      development and advertising</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="9%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="9%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="9%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="34%"><FONT face=sans-serif size=1>costs</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>62</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=1>29</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=1>33</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=1>63</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=1>41</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=1>22</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="34%"><FONT face=sans-serif size=1>Industrial
      patents and intellectual property</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="9%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="9%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="9%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="34%"><FONT face=sans-serif size=1>rights</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>2</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=1>1</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=1>1</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=1>2</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=1>1</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=1>1</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="34%"><FONT face=sans-serif size=1>Permits,
      licenses, trademarks and similar</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="9%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="9%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="9%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="34%"><FONT face=sans-serif size=1>rights</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>260</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=1>78</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=1>182</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=1>260</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=1>107</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=1>153</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="34%"><FONT face=sans-serif size=1>Goodwill</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>489</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=1>208</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=1>281</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=1>489</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=1>235</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=1>254</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="34%"><FONT face=sans-serif size=1>Other</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=1>15</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=1>9</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=1>6</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="9%"><FONT face=sans-serif size=1>15</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=1>12</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=1>3</FONT>&nbsp;</TD></TR>
  <TR>
    <TD width="34%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="10%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="34%"><B><FONT face=sans-serif size=1>Total intangible assets</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><B><FONT face=sans-serif size=1>850</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="9%"><B><FONT face=sans-serif size=1>329</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="9%"><B><FONT face=sans-serif size=1>521</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="9%"><B><FONT face=sans-serif size=1>851</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><B><FONT face=sans-serif size=1>402</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><B><FONT face=sans-serif size=1>449</FONT></B>&nbsp;</TD></TR>
  <TR>
    <TD width="34%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="10%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD></TR></TABLE><BR>
<P align=left><FONT face=sans-serif size=2>Goodwill arose from the acquisition
of other companies, as follows:</FONT></P>
<UL>
  <LI><FONT face=sans-serif size=2>&euro;396 thousand for the acquisition of a
  business branch from the company</FONT> <FONT face=sans-serif size=2>&#147;BCS di
  Bini, Cecchi e Salvadori Srl&#148; in 2000;</FONT>
  <LI><FONT face=sans-serif size=2>&euro;58 thousand for the acquisition of a
  business branch from the company</FONT> <FONT face=sans-serif size=2>&#147;BCS di
  Bini, Cecchi e Salvadori Srl&#148; in 2003;</FONT>
  <LI><FONT face=sans-serif size=2>&euro;35 thousand for the acquisition of a
  business branch from the company</FONT> <FONT face=sans-serif size=2>&#147;OMP Srl&#148;
  in 2003.</FONT></LI></UL>
<P align=left>
<TABLE>

  <TR>
    <TD noWrap><B><FONT face=sans-serif size=2>7</FONT></B> <B><U><FONT face=sans-serif size=2>Investments</FONT></U></B><BR></TD></TR></TABLE></P>
<P align=left><FONT face=sans-serif size=2>At December 31, 2005 investments
total &euro;46 thousand.</FONT></P>
<P align=left><FONT face=sans-serif size=2>The following table provides data on
the historical cost, write-down, revaluations, acquisition and disposals made in
current year:</FONT></P>
<TABLE cellSpacing=1 cellPadding=0 border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="24%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=center width="12%"><B><FONT face=sans-serif size=2>Dec. 31,</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="16%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=center width="10%"><B><FONT face=sans-serif size=2>Dec. 31,</FONT></B>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="24%"><B><FONT face=sans-serif size=2>INVESTMENTS</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="14%"><B><FONT face=sans-serif size=2>Acquisitions</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=center width="13%"><B><FONT face=sans-serif size=2>Disposals</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="16%"><B><FONT face=sans-serif size=2>Writedowns</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="24%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=center width="12%"><B><FONT face=sans-serif size=2>2004</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="16%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=center width="10%"><B><FONT face=sans-serif size=2>2005</FONT></B>&nbsp;</TD></TR>
  <TR>
    <TD width="24%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="12%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="14%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="13%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="16%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="10%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="24%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=center width="47%" colSpan=5><FONT face=sans-serif size=2>(Amounts
      expressed in &euro;/000)</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD></TR>
  <TR>
    <TD width="24%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="12%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="47%" colSpan=5>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="10%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="24%"><FONT face=sans-serif size=2>Equity
      investments in:</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="12%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="14%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="16%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="24%"><FONT face=sans-serif size=2>subsidiary
      companies</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=2>43</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="14%"><FONT face=sans-serif size=2>15</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="13%">&nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="16%">&nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>15</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=2>43</FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="24%">&nbsp;
      &nbsp;<FONT face=sans-serif size=2>other companies</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="12%"><FONT face=sans-serif size=2>3</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="14%"><FONT face=sans-serif size=2>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="13%">&nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="16%">&nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp;<FONT face=sans-serif size=2>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><FONT face=sans-serif size=2>3</FONT>&nbsp;</TD></TR>
  <TR>
    <TD width="24%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="12%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="14%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="13%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="16%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="10%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="24%"><B><FONT face=sans-serif size=2>Total equity investments</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="12%"><B><FONT face=sans-serif size=2>46</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="14%"><B><FONT face=sans-serif size=2>15</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="13%">&nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT face=sans-serif size=2>-</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="16%">&nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp;<B><FONT face=sans-serif size=2>15</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"><B><FONT face=sans-serif size=2>46</FONT></B>&nbsp;</TD></TR>
  <TR>
    <TD width="24%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="12%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="14%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="13%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="16%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="10%">
      <HR noShade SIZE=2>
    </TD></TR></TABLE><BR>
<P align=left><FONT face=sans-serif size=2>(14)</FONT></P>
<HR align=center width="100%" noShade SIZE=2>

<P><!--$$/page=--><A name=page_15></A></P>
<P align=left><FONT face=sans-serif size=2>The following table provides
financial data of subsidiary companies:</FONT></P>
<TABLE cellSpacing=1 cellPadding=0 border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="14%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="14%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="14%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="13%"><B><FONT face=sans-serif size=2>Loss in</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="11%"><B><FONT face=sans-serif size=2>Value in</FONT></B>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="14%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="14%"><B><FONT face=sans-serif size=2>Parent</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="9%"><B><FONT face=sans-serif size=2>Share</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="14%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="7%"><B><FONT face=sans-serif size=2>%</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="11%"><B><FONT face=sans-serif size=2>aggregated</FONT></B>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="14%"><B><FONT face=sans-serif size=2>Subsidiary</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="14%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="14%"><B><FONT face=sans-serif size=2>Equity</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="13%"><B><FONT face=sans-serif size=2>current</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="11%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="14%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="14%"><B><FONT face=sans-serif size=2>Company</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="9%"><B><FONT face=sans-serif size=2>capital</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="14%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><B><FONT face=sans-serif size=2>owned</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="11%"><B><FONT face=sans-serif size=2>financial</FONT></B>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="14%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="14%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="14%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="13%"><B><FONT face=sans-serif size=2>period</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="11%"><B><FONT face=sans-serif size=2>statements</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="3%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="14%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="14%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="14%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="13%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="11%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="3%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="14%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="14%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="29%" colSpan=3><FONT face=sans-serif size=2>(Amounts expressed in &euro;)</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="11%">&nbsp; </TD></TR>
  <TR>
    <TD width="3%"></TD>
    <TD width="2%"></TD>
    <TD width="14%"></TD>
    <TD width="2%"></TD>
    <TD width="14%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="29%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="11%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=15>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="19%" colSpan=3><FONT face=sans-serif size=2>Hydraflex Srl</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="14%"><FONT face=sans-serif size=2>BCS
      Srl</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp;
      &nbsp;<FONT face=sans-serif size=2>30,600</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="14%"><FONT face=sans-serif size=2>9,147</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp;
      &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>(4,568)</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=sans-serif size=2>50.00</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=2>15,494</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="19%" colSpan=3><FONT face=sans-serif size=2>Vema Boat Srl</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="14%"><FONT face=sans-serif size=2>Vetus
      Srl</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp;
      &nbsp;<FONT face=sans-serif size=2>25,500</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="14%"><FONT face=sans-serif size=2>22,878</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp;
      &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>(2,622)</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="7%"><FONT face=sans-serif size=2>99.99</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="11%"><FONT face=sans-serif size=2>27,481</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="19%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="14%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="14%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="13%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="11%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="19%" colSpan=3><B><FONT face=sans-serif size=2>Total</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="14%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="14%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="11%"><B><FONT face=sans-serif size=2>42,975</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="19%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="14%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="9%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="14%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="13%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="11%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=15>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=15>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=15>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="3%"><B><FONT face=sans-serif size=2>8</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="30%" colSpan=3>&nbsp;<B><U><FONT face=sans-serif size=2>Current
      liabilities</FONT></U></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="9%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="14%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="13%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="7%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=left width="11%">&nbsp;
</TD></TR></TABLE><BR>
<P align=left><FONT face=sans-serif size=2>At December 31, 2005 current
liabilities total &euro;7,360 thousand, as follows (in &euro;/000):</FONT></P>
<TABLE cellSpacing=1 cellPadding=0 border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="64%">&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="33%"><B><FONT face=sans-serif size=2>Amount at
      Dec.</FONT></B>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT face=sans-serif size=2>Current liabilities</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=center width="33%"><B><FONT face=sans-serif size=2>31, 2005</FONT></B>&nbsp;
    </TD></TR>
  <TR>
    <TD width="64%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="33%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"><FONT face=sans-serif size=2>Bank overdrafts</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="33%"><FONT face=sans-serif size=2>757</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"><FONT face=sans-serif size=2>Short-term bank
      loans</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="33%"><FONT face=sans-serif size=2>88</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"><FONT face=sans-serif size=2>Current portion of long-term
      debt</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="33%"><FONT face=sans-serif size=2>64</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"><FONT face=sans-serif size=2>Advances from
      customers</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="33%"><FONT face=sans-serif size=2>164</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"><FONT face=sans-serif size=2>Payables due to
      suppliers</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="33%"><FONT face=sans-serif size=2>3,918</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"><FONT face=sans-serif size=2>Tax payables</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="33%"><FONT face=sans-serif size=2>650</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"><FONT face=sans-serif size=2>Payables due to social security
      institutions</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="33%"><FONT face=sans-serif size=2>120</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"><FONT face=sans-serif size=2>Payables due to
      others</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="33%"><FONT face=sans-serif size=2>1,444</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"><FONT face=sans-serif size=2>Accrued expenses and deferred
      income</FONT>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="33%"><FONT face=sans-serif size=2>155</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="64%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="33%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="64%"><B><FONT face=sans-serif size=2>Total current
      liabilities</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD noWrap align=right width="33%"><B><FONT face=sans-serif size=2>7,360</FONT></B>&nbsp;
  </TD></TR>
  <TR>
    <TD width="64%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="33%">
      <HR noShade SIZE=2>
    </TD></TR></TABLE><BR>
<P align=left>
<TABLE>

  <TR>
    <TD noWrap><FONT face=sans-serif size=2>Tax payables are as
      follows:</FONT><BR></TD></TR></TABLE></P>
<UL>
  <LI><FONT face=sans-serif size=2>VAT for &euro;122 thousand;</FONT>
  <LI><FONT face=sans-serif size=2>Income taxes for &euro;370 thousand;</FONT>
  <LI><FONT face=sans-serif size=2>Payroll taxes for &euro;58 thousand.</FONT>
</LI></UL>
<P align=left><FONT face=sans-serif size=2>Payables due to others include &euro;1,049
thousand related to the indemnity that the Group owes to members of the board of
directors when they step down.</FONT></P>
<P align=left>
<TABLE>

  <TR>
    <TD noWrap><B><FONT face=sans-serif size=2>9 </FONT></B><B><U><FONT face=sans-serif size=2>Debt</FONT></U></B><BR></TD></TR></TABLE></P>
<P align=left><FONT face=sans-serif size=2>The Group has various credit
facilities with several banks. The short-term bank loans bear interest at rates
ranging from 5.73% to 5.95% .</FONT></P>
<P align=left><FONT face=sans-serif size=2>Long-term debt relates to a loan
obtained through government incentives. The loan bears interest at 1% per annum
and is repayable in semi-annual installments through January 1, 2012.</FONT></P>
<P align=left><FONT face=sans-serif size=2>(15)</FONT></P>
<HR align=center width="100%" noShade SIZE=2>


<!--$$/page=-->
<A name="page_16"></A>

<P align="left">
<B><FONT size=2 face="sans-serif">10 </FONT></B><B><U><FONT size=2 face="sans-serif">Allowances for risks and charges</FONT></U></B></P>
<P align="left">
<FONT size=2 face="sans-serif">At December 31, 2005 the allowance for risks and charges totals &#128;27 thousand, a &#128;45 thousand decrease from the prior year. </FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">The following table shows the breakdown of the items and changes during the year (in &#128;/000):</FONT></P>
<TABLE border=0 cellspacing=1 cellpadding=0>
<TR valign="bottom">
	<TD width=43% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="sans-serif">Allowances for risks and charges</FONT></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=41% nowrap colspan=5 align=right>
<B><FONT size=2 face="sans-serif">12/31/2004 Provisions Utilization</FONT></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=10% nowrap align=right>
<B><FONT size=2 face="sans-serif">Dec. 31,</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=43% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=17% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=8% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=10% nowrap align=center>
<B><FONT size=2 face="sans-serif">2005</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=43% nowrap align=left>
<FONT size=2 face="sans-serif">Provisions for pensions and similar</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=17% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=8% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=10% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=43% nowrap align=left>
<FONT size=2 face="sans-serif">commitments</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=17% nowrap align=right>
<FONT size=2 face="sans-serif">10</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=left>
<FONT size=2 face="sans-serif">30</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=8% nowrap align=right>
<FONT size=2 face="sans-serif">30</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=10% nowrap align=right>
<FONT size=2 face="sans-serif">10</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=43% nowrap align=left>
<FONT size=2 face="sans-serif">Provision for taxation</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=17% nowrap align=right>
<FONT size=2 face="sans-serif">47</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=left>
<FONT size=2 face="sans-serif">-</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=8% nowrap align=right>
<FONT size=2 face="sans-serif">30</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=10% nowrap align=right>
<FONT size=2 face="sans-serif">17</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=43% nowrap align=left>
<B><FONT size=2 face="sans-serif">Total allowances for risks and charges</FONT></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=17% nowrap align=right>
<B><FONT size=2 face="sans-serif">57</FONT></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=left>
<B><FONT size=2 face="sans-serif">30</FONT></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=8% nowrap align=right>
<B><FONT size=2 face="sans-serif">60</FONT></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=10% nowrap align=right>
<B><FONT size=2 face="sans-serif">27</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="sans-serif">Provision for taxation represents the deferred tax liabilities related to the temporary taxable differences.</FONT></P>
<P align="left">
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">11 </FONT></B><B><U><FONT size=2 face="sans-serif">Employee severance indemnity</FONT></U></B><BR>
</TD></TR></TABLE>
</P>
<P align="left">
<FONT size=2 face="sans-serif">At December 31, 2005 the employee severance indemnity totals &#128;1,016 thousand, a net increase of &#128;50 thousand over the prior year.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">The following table shows the changes during the year (in &#128;/000): </FONT></P>
<TABLE border=0 cellspacing=1 cellpadding=0>
<TR valign="bottom">
	<TD width=63% nowrap align=left>
<FONT size=2 face="sans-serif">Amount accrued during the year</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=34% nowrap align=right>
<FONT size=2 face="sans-serif">175</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=63% nowrap align=left>
<FONT size=2 face="sans-serif">Amount paid during the year</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=34% nowrap align=right>
<FONT size=2 face="sans-serif">(125)</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=63% nowrap align=left>
<B><FONT size=2 face="sans-serif">Amount at Dec. 31, 2005</FONT></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=34% nowrap align=right>
<B><FONT size=2 face="sans-serif">1,016</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
</TR>
</TABLE><BR>
<P align="left">
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">12 </FONT></B><B><U><FONT size=2 face="sans-serif">Shareholders&#146; equity</FONT></U></B><BR>
</TD></TR></TABLE>
</P>
<P align="left">
<FONT size=2 face="sans-serif">Share capital and reserves represent the aggregation of such items in the statutory accounts of each company comprising the Group. Changes in shareholders&#146; equity during the year are as follows:</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">(16)</FONT></P>

<HR noshade align="center" width="100%" size=2>

<A name=page_17></A>
<TABLE cellSpacing=1 cellPadding=0 border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="7%"></TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="5%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=center width="7%" rowSpan=2><B><FONT face=sans-serif size=1>Share</FONT></B>&nbsp; <BR>&nbsp; <B><FONT face=sans-serif size=1>capital</FONT></B></TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=center width="7%" rowSpan=2><B><FONT face=sans-serif size=1>Legal&nbsp;</FONT></B>
      <BR>&nbsp;&nbsp;<B><FONT face=sans-serif size=1>&nbsp;reserve</FONT></B>&nbsp;</TD>
    <TD width="3%"></TD>
    <TD noWrap align=center width="8%" background="" rowSpan=2><B><FONT face=sans-serif size=1>Revaluation</FONT></B>&nbsp;&nbsp;<BR>&nbsp; <B><FONT face=sans-serif size=1>reserve</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=center width="8%" rowSpan=3>&nbsp;<B><FONT face=sans-serif size=1>Extra-</FONT></B>&nbsp;<BR><B><FONT face=sans-serif size=1>ordinary</FONT></B>&nbsp;<BR>&nbsp; <B><FONT face=sans-serif size=1>reserve</FONT></B></TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%" rowSpan=3>
      <P><FONT size=1><FONT face=SansSerif>&nbsp;<B>Un-&nbsp;available</B></FONT></FONT></P>
      <P><FONT size=1><FONT face=SansSerif><B>&nbsp;&nbsp;reserve&nbsp;</B>&nbsp;</FONT></FONT></P></TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=center width="10%" rowSpan=3><FONT size=1><FONT face="MS Sans Serif">&nbsp;Currency<BR>&nbsp;translation<BR>&nbsp;account&nbsp;</FONT></FONT></TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=center width="8%" rowSpan=2><B><FONT face=sans-serif size=1>Retained</FONT></B>&nbsp;<BR>&nbsp;<B><FONT face=sans-serif size=1>earnings</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=center width="7%" rowSpan=2>&nbsp; &nbsp;<B><FONT face=sans-serif size=1>Net</FONT></B>&nbsp;<BR>&nbsp;<B><FONT face=sans-serif size=1>income</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="5%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="13%"><B><FONT face=sans-serif size=1>Description</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%"></TD>
    <TD width="2%"></TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="5%"><B><FONT face=sans-serif size=1>TOTAL</FONT></B>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="16%" colSpan=3></TD>
    <TD width="3%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"></TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="7%"></TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="5%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="17%" colSpan=3></TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="10%"></TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="5%">&nbsp;</TD></TR>
  <TR>
    <TD width="13%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="3%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="17%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="10%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="5%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="13%"><FONT face=sans-serif size=1>Amount at Dec.</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="5%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="13%"><FONT face=sans-serif size=1>31, 2004</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp; &nbsp; &nbsp;
      &nbsp;<FONT face=sans-serif size=1>363</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT face=sans-serif size=1>66</FONT>&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp;<FONT face=sans-serif size=1>369</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp; &nbsp; &nbsp;
      &nbsp;<FONT face=sans-serif size=1>205</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=1>6,713</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>458</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="5%"><FONT face=sans-serif size=1>8,174</FONT>&nbsp;</TD></TR>
  <TR>
    <TD width="13%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="3%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="10%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="5%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="13%"><FONT face=sans-serif size=1>Allocation of
    prior</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="5%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="13%"><FONT face=sans-serif size=1>year net income</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="5%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp; &nbsp; &nbsp;
      &nbsp;<FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT face=sans-serif size=1>0</FONT>&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp;<FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;<FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=1>458</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT face=sans-serif size=1>(458)</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="5%"><FONT face=sans-serif size=1>0</FONT>&nbsp;</TD></TR>
  <TR>
    <TD width="13%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="3%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="10%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="5%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="13%"><FONT face=sans-serif size=1>Translation of</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="5%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="13%"><FONT face=sans-serif size=1>Boat Equipment</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="5%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="13%"><FONT face=sans-serif size=1>Ltd to Euro</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp; &nbsp; &nbsp;
      &nbsp;<FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp;<FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;<FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>13</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp; &nbsp; &nbsp;
      &nbsp;<FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="5%"><FONT face=sans-serif size=1>13</FONT>&nbsp;</TD></TR>
  <TR>
    <TD width="13%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="3%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="10%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="5%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="13%"><FONT face=sans-serif size=1>Accrual for</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="5%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="13%"><FONT face=sans-serif size=1>specific law</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp; &nbsp; &nbsp;
      &nbsp;<FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp;<FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;<FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT face=sans-serif size=1>1</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp; &nbsp; &nbsp;
      &nbsp;<FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="5%"><FONT face=sans-serif size=1>1</FONT>&nbsp;</TD></TR>
  <TR>
    <TD width="13%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="3%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="10%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="5%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="13%"><FONT face=sans-serif size=1>Net income</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp; &nbsp; &nbsp;
      &nbsp;<FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp;<FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp;<FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=1>-</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><FONT face=sans-serif size=1>1,771</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="5%"><FONT face=sans-serif size=1>1,771</FONT>&nbsp;</TD></TR>
  <TR>
    <TD width="13%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="3%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="10%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="5%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="13%"><B><FONT face=sans-serif size=1>Amount at
      Dec.</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="5%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="13%"><B><FONT face=sans-serif size=1>31,
    2005</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp; &nbsp; &nbsp;
      &nbsp;<B><FONT face=sans-serif size=1>363</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><B><FONT face=sans-serif size=1>66</FONT></B>&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp; &nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp;<B><FONT face=sans-serif size=1>369</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp; &nbsp; &nbsp;
      &nbsp;<B><FONT face=sans-serif size=1>205</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><B><FONT face=sans-serif size=1>1</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT face=sans-serif size=1>13</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><B><FONT face=sans-serif size=1>7,171</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="7%"><B><FONT face=sans-serif size=1>1,771</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="5%"><B><FONT face=sans-serif size=1>9,959</FONT></B>&nbsp;</TD></TR>
  <TR>
    <TD width="13%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="3%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="10%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="5%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=19>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%" colSpan=17><FONT face=sans-serif size=2>The following table shows the
      possible utilization for each item of equity:</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="5%">&nbsp;</TD></TR>
  <TR>
    <TD width="92%" colSpan=17>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="5%">
      <HR noShade SIZE=2>
    </TD></TR>
  <TR>
    <TD width="99%" colSpan=19>&nbsp;</TD></TR>
  <TR>
    <TD width="99%" colSpan=19>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="20%" colSpan=3><B><FONT face=sans-serif size=2>Amounts
      at</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="5%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="37%" colSpan=7>&nbsp; &nbsp;<B><FONT face=sans-serif size=2>SHAREHOLDERS' EQUITY</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=center width="7%"><B><FONT face=sans-serif size=2>Notes</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="5%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="20%" colSpan=3><B><FONT face=sans-serif size=2>Dec. 31,
      2005</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="5%">&nbsp;</TD></TR>
  <TR>
    <TD width="13%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="3%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="20%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="13%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="20%" colSpan=3>&nbsp; &nbsp; &nbsp;
      &nbsp; &nbsp; &nbsp;<B><FONT face=sans-serif size=2>(in &euro;/000)</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="5%">&nbsp;</TD></TR>
  <TR>
    <TD width="13%"></TD>
    <TD width="2%"></TD>
    <TD width="7%"></TD>
    <TD width="2%"></TD>
    <TD width="7%"></TD>
    <TD width="3%"></TD>
    <TD width="8%"></TD>
    <TD width="2%"></TD>
    <TD width="8%"></TD>
    <TD width="2%"></TD>
    <TD width="7%"></TD>
    <TD width="2%"></TD>
    <TD width="20%" colSpan=3>
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD></TR>
  <TR>
    <TD width="99%" colSpan=19>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="13%"><FONT face=sans-serif size=2>Share capital</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>363</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="5%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="22%" colSpan=3><FONT face=sans-serif size=2>Revaluation
    reserve</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>369</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=center width="7%"><FONT face=sans-serif size=2>A,B</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="5%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="13%"><FONT face=sans-serif size=2>Legal reserve</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>66</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=center width="7%"><FONT face=sans-serif size=2>A,B</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="5%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="13%"><FONT face=sans-serif size=2>Other reserves</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="5%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="22%" colSpan=3>&nbsp; &nbsp; &nbsp;
      &nbsp;<FONT face=sans-serif size=2>other reserve</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>205</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>A,B,C</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="5%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="22%" colSpan=3>&nbsp; &nbsp; &nbsp;
      &nbsp;<FONT face=sans-serif size=2>reserve for rounding</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>(0)</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="5%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="22%" colSpan=3>&nbsp; &nbsp; &nbsp;
      &nbsp;<FONT face=sans-serif size=2>unavailable reserve</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>2</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="5%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="31%" colSpan=5>&nbsp; &nbsp; &nbsp;
      &nbsp;<FONT face=sans-serif size=2>currency transaction reserve</FONT>&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>13</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=center width="7%"><FONT face=sans-serif size=2>A, B</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="5%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="22%" colSpan=3><FONT face=sans-serif size=2>Retained
earnings</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>7,171</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp; &nbsp; &nbsp;<FONT face=sans-serif size=2>A,B,C</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="5%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="13%"><FONT face=sans-serif size=2>Net income</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><FONT face=sans-serif size=2>1,771</FONT>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="5%">&nbsp;</TD></TR>
  <TR>
    <TD width="13%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="3%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="10%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="8%">
      <HR noShade SIZE=2>
    </TD>
    <TD width="2%"></TD>
    <TD width="7%"></TD>
    <TD width="2%"></TD>
    <TD width="5%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="42%" colSpan=7><B><FONT face=sans-serif size=2>Total Group
      shareholders' equity</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="8%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=right width="8%"><B><FONT face=sans-serif size=2>9,959</FONT></B>&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="7%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD noWrap align=left width="5%">&nbsp;</TD></TR></TABLE><BR>
<P align=left>
<TABLE>

  <TR>
    <TD noWrap><I><U><FONT face=sans-serif size=2>Notes</FONT></U></I><BR></TD></TR></TABLE></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=2>A:</FONT>&nbsp; &nbsp;
    &nbsp;</TD>
    <TD width="100%"><FONT face=sans-serif size=2>for capital
    increase;</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=2>B:</FONT>&nbsp; &nbsp;
    &nbsp;</TD>
    <TD width="100%"><FONT face=sans-serif size=2>for coverage of
      losses;</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top noWrap><FONT face=sans-serif size=2>C:</FONT>&nbsp; &nbsp;
    &nbsp;</TD>
    <TD width="100%"><FONT face=sans-serif size=2>for distribution to
      shareholders.</FONT></TD></TR>
  <TR>
    <TD colSpan=2>&nbsp;</TD></TR></TABLE>
<P align=left><FONT face=sans-serif size=2>(17)</FONT></P>
<HR align=center width="100%" noShade SIZE=2>


<!--$$/page=-->
<A name="page_18"></A>

<TABLE border=0 cellspacing=1 cellpadding=0>
<TR valign="bottom">
	<TD width=5% nowrap align=left>
<B><FONT size=2 face="sans-serif">13</FONT></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=59% nowrap align=left>
<B><U><FONT size=2 face="sans-serif">Revenues</FONT></U></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=30% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
</TR>
<TR>
	<TD colspan=5>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=59% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=2 face="sans-serif">Description</FONT></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=30% nowrap align=center>
<B><FONT size=2 face="sans-serif">12/31/2005</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=5% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=59% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=30% nowrap align=center>
<FONT size=2 face="sans-serif">(&#128;/000)</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=66% nowrap colspan=3 align=left>
<FONT size=2 face="sans-serif">Revenues from sales and services</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=30% nowrap align=right>
<FONT size=2 face="sans-serif">22,767</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=66% nowrap colspan=3 align=left>
<FONT size=2 face="sans-serif">Change in finished goods and WIP inventory</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=30% nowrap align=right>
<FONT size=2 face="sans-serif">(323)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=66% nowrap colspan=3 align=left>
<FONT size=2 face="sans-serif">Other income and revenues</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=30% nowrap align=right>
<FONT size=2 face="sans-serif">190</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=66% nowrap colspan=3 align=left>
<B><FONT size=2 face="sans-serif">Total aggregated revenues</FONT></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=30% nowrap align=right>
<B><FONT size=2 face="sans-serif">22,634</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
</TR>
</TABLE><BR>
<P align="left">
<B><FONT size=2 face="sans-serif">Sales of goods and services</FONT></B></P>
<P align="left">
<FONT size=2 face="sans-serif">For the year ended December 31, 2005 sales comprised the following:</FONT></P>
<UL>
<LI>
<FONT size=2 face="sans-serif">&#128;19,127 thousand related to domestic sales of finished goods;</FONT></LI>
<LI>
<FONT size=2 face="sans-serif">&#128;2,898 thousand related to foreign sales of finished goods;</FONT></LI>
<LI>
<FONT size=2 face="sans-serif">&#128;342 thousand related to service for assistance and maintenance;</FONT></LI>
<LI>
<FONT size=2 face="sans-serif">&#128;400 thousand related to other.</FONT></LI>
</UL>
<P align="left">
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">14 </FONT></B><B><U><FONT size=2 face="sans-serif">Operating costs</FONT></U></B><BR>
</TD></TR></TABLE>
</P>
<P align="left">
<FONT size=2 face="sans-serif">For the year ended December 31, 2005 operating costs total &#128;19,567 thousand, as follows (in &#128;/000):</FONT></P>
<TABLE border=0 cellspacing=1 cellpadding=0>
<TR valign="bottom">
	<TD width=75% nowrap align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
&nbsp; &nbsp; &nbsp;<B><FONT size=2 face="sans-serif">Description</FONT></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=22% nowrap align=right>
<B><FONT size=2 face="sans-serif">Total</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=75% nowrap align=left>
<FONT size=2 face="sans-serif">Raw materials, consumables and goods</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=22% nowrap align=right>
<FONT size=2 face="sans-serif">11,049</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=75% nowrap align=left>
<FONT size=2 face="sans-serif">Services</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=22% nowrap align=right>
<FONT size=2 face="sans-serif">3,356</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=75% nowrap align=left>
<FONT size=2 face="sans-serif">Leases and rentals</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=22% nowrap align=right>
<FONT size=2 face="sans-serif">473</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=75% nowrap align=left>
<FONT size=2 face="sans-serif">Personnel costs</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=22% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=75% nowrap align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="sans-serif">Wages and salaries</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=22% nowrap align=right>
<FONT size=2 face="sans-serif">2,453</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=75% nowrap align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="sans-serif">Social security costs</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=22% nowrap align=right>
<FONT size=2 face="sans-serif">673</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=75% nowrap align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="sans-serif">Provision for severance indemnity</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=22% nowrap align=right>
<FONT size=2 face="sans-serif">176</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=75% nowrap align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="sans-serif">Other costs relating to employees</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=22% nowrap align=right>
<FONT size=2 face="sans-serif">51</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=75% nowrap align=left>
<FONT size=2 face="sans-serif">Valuation adjustments</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=22% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=75% nowrap align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="sans-serif">Amortization of intangible assets</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=22% nowrap align=right>
<FONT size=2 face="sans-serif">73</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=75% nowrap align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="sans-serif">Depreciation of fixed assets</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=22% nowrap align=right>
<FONT size=2 face="sans-serif">242</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=75% nowrap align=left>
 &nbsp; &nbsp; &nbsp;<FONT size=2 face="sans-serif">Writedowns of current receivables and liquid assets</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=22% nowrap align=right>
<FONT size=2 face="sans-serif">49</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=75% nowrap align=left>
<FONT size=2 face="sans-serif">Changes in inventories of raw materials, consumables and goods</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=22% nowrap align=right>
<FONT size=2 face="sans-serif">535</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=75% nowrap align=left>
<FONT size=2 face="sans-serif">Other provisions</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=22% nowrap align=right>
<FONT size=2 face="sans-serif">143</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=75% nowrap align=left>
<FONT size=2 face="sans-serif">Other operating costs</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=22% nowrap align=right>
<FONT size=2 face="sans-serif">294</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=75% nowrap align=left>
<B><FONT size=2 face="sans-serif">Total</FONT></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=22% nowrap align=right>
<B><FONT size=2 face="sans-serif">19,567</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="sans-serif">(18)</FONT></P>

<HR noshade align="center" width="100%" size=2>



<!--$$/page=-->
<A name="page_19"></A>

<P align="left">
<B><FONT size=2 face="sans-serif">Raw materials, consumables and goods for sale </FONT></B></P>
<P align="left">
<FONT size=2 face="sans-serif">The cost of raw materials, consumables and goods for sale for 2005 totals &#128;11,049 thousand, of which &#128;7,283 thousand for the purchase of raw materials, &#128;1,298 thousand for work in progress and &#128;140
thousand for the purchase of finished goods. The remaining amount of &#128;2,328 thousand relates to the purchase of other material goods, packaging costs and other.</FONT></P>
<P align="left">
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">Services</FONT></B><BR>
</TD></TR></TABLE>
</P>
<P align="left">
<FONT size=2 face="sans-serif">Services costs for 2005 include emoluments of the members of the Board of Directors of &#128;954 thousand and fees of the board of statutory auditors of &#128;24 thousand.</FONT></P>
<P align="left">
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">Leases and rentals</FONT></B><BR>
</TD></TR></TABLE>
</P>
<P align="left">
<FONT size=2 face="sans-serif">Leases and rentals cost for 2005 totals &#128;473 thousand and relates for &#128;213 thousand to leased goods and for &#128;260 thousand to the rental of the Group&#146;s premises from the company &#147;BCS di Bini,
Cecchi e Salvadori Srl&#148;, whose owners are primarily the same as the ownership group of the Group.</FONT></P>
<P align="left">
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">Other provisions</FONT></B><BR>
</TD></TR></TABLE>
</P>
<P align="left">
<FONT size=2 face="sans-serif">Other provisions relate to the indemnity that the Group owes to members of the board of directors when they step down.</FONT></P>
<P align="left">
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">15 </FONT></B><B><U><FONT size=2 face="sans-serif">Financial income and expense</FONT></U></B><BR>
<BR>
<B><FONT size=2 face="sans-serif">Other financial income</FONT></B><BR>
</TD></TR></TABLE>
</P>
<P align="left">
<FONT size=2 face="sans-serif">Other financial income relates to bank interest income.</FONT></P>
<P align="left">
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">Interest expense</FONT></B><BR>
</TD></TR></TABLE>
</P>
<P align="left">
<FONT size=2 face="sans-serif">Interest expense totals &#128;58 thousand for 2005, as follows:</FONT></P>
<UL>
<LI>
<FONT size=2 face="sans-serif">interest expense to banks for &#128;41 thousand;</FONT></LI>
<LI>
<FONT size=2 face="sans-serif">interest on payables for &#128;17 thousand.</FONT></LI>
</UL>
<P align="left">
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">Foreign exchange gains and losses</FONT></B><BR>
</TD></TR></TABLE>
</P>
<P align="left">
<FONT size=2 face="sans-serif">Foreign exchange gains and losses includes both realized gains and losses arising from changes in exchange rates upon the collection of receivables and settlement of payables denominated in foreign currencies, as well
as unrealized gains and losses arising upon the translation of assets and liabilities originally denominated in foreign currencies at exchange rates prevailing at the balance sheet date.</FONT></P>
<P align="left">
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">16 </FONT></B><B><U><FONT size=2 face="sans-serif">Income taxes</FONT></U></B><BR>
</TD></TR></TABLE>
</P>
<P align="left">
<FONT size=2 face="sans-serif">Income tax expense for 2005 totals &#128;1,241 thousand, of which &#128;1,250 thousand relates to current taxes, partially offset by a deferred tax benefit of &#128;9 thousand.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">(19)</FONT></P>

<HR noshade align="center" width="100%" size=2>



<!--$$/page=-->
<A name="page_20"></A>

<P align="left">
<FONT size=2 face="sans-serif">The following tables provide the reconciliation from the enacted tax rate to the effective tax rate (in &#128;/000):</FONT></P>
<TABLE border=0 cellspacing=1 cellpadding=0>
<TR valign="bottom">
	<TD align=center width=99% colspan=3>
<B><I><FONT size=2 face="sans-serif">IRES</FONT></I></B>
	</TD>
</TR>
<TR>
	<TD colspan=3 width=100%>
<HR noshade size=2>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=right>
<B><FONT size=2 face="sans-serif">Total</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<FONT size=2 face="sans-serif">Profit before taxes</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=right>
<FONT size=2 face="sans-serif">3,012</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<B><I><FONT size=2 face="sans-serif">Enacted tax (33%)</FONT></I></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=right>
<B><I><FONT size=2 face="sans-serif">994</FONT></I></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<FONT size=2 face="sans-serif">Profit before taxes</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=right>
<FONT size=2 face="sans-serif">3,012</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<FONT size=2 face="sans-serif">Nondeductible expenses and other additions to taxable income</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=right>
<FONT size=2 face="sans-serif">144</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<FONT size=2 face="sans-serif">Non taxable income and other reductions to taxable income</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=right>
<FONT size=2 face="sans-serif">(293)</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<FONT size=2 face="sans-serif">Taxable income</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=right>
<FONT size=2 face="sans-serif">2,863</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<B><I><FONT size=2 face="sans-serif">Effective tax (33%)</FONT></I></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=right>
<B><I><FONT size=2 face="sans-serif">944</FONT></I></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center width=99% colspan=3>
<B><I><FONT size=2 face="sans-serif">IRAP</FONT></I></B>
	</TD>
</TR>
<TR>
	<TD colspan=3 width=100%>
<HR noshade size=2>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=right>
<B><FONT size=2 face="sans-serif">Total</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<FONT size=2 face="sans-serif">Profit before taxes</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=right>
<FONT size=2 face="sans-serif">3,012</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<B><I><FONT size=2 face="sans-serif">Enacted tax (4,25%)</FONT></I></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=right>
<B><I><FONT size=2 face="sans-serif">128</FONT></I></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<FONT size=2 face="sans-serif">Profit before taxes</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=right>
<FONT size=2 face="sans-serif">3,012</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<FONT size=2 face="sans-serif">Nondeductible expenses and other additions to taxable income</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=right>
<FONT size=2 face="sans-serif">4,715</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<FONT size=2 face="sans-serif">Non taxable income and other reductions to taxable income</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=right>
<FONT size=2 face="sans-serif">(529)</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=1>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<FONT size=2 face="sans-serif">Taxable income</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=right>
<FONT size=2 face="sans-serif">7,198</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<B><I><FONT size=2 face="sans-serif">Effective tax (4,25%)</FONT></I></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=right>
<B><I><FONT size=2 face="sans-serif">306</FONT></I></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<B><I><FONT size=2 face="sans-serif">TOTAL CURRENT TAX EXPENSE</FONT></I></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=right>
<B><I><FONT size=2 face="sans-serif">1,250</FONT></I></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
</TR>
</TABLE><BR>
<P align="left">
<FONT size=2 face="sans-serif">(20)</FONT></P>

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<P align="left">
<B><FONT size=2 face="sans-serif">17 </FONT></B><B><U><FONT size=2 face="sans-serif">Summary of significant differences between Italian accounting principles and U.S. GAAP</FONT></U></B></P>
<P align="left">
<FONT size=2 face="sans-serif">The Group&#146;s aggregated financial statements have been prepared in accordance with Italian GAAP, which differs in certain respects from U.S. GAAP. A description of the significant differences and their effects on
net income and shareholders&#146; equity is set forth in the following notes. Those differences described below that are not included in the reconciliation of net income or shareholders&#146; equity (see note 18) either had no effect, or their
effect was not significant. See also note 2, Summary of significant accounting and reporting policies for additional information on the accounting principles that the Group follows.</FONT></P>
<P align="left">
<TABLE><TR><TD nowrap>
<B><I><FONT size=2 face="sans-serif">A) Aggregation policy</FONT></I></B><BR>
</TD></TR></TABLE>
</P>
<P align="left">
<FONT size=2 face="sans-serif">The companies included in the aggregated financial statements and the principles applied in preparing the aggregated financial statements are those described in Notes 1 and 2. The Group has not included in the
aggregated financial statements subsidiaries of the aggregated companies.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Under U.S. GAAP, investments of greater than 50% of share capital are consolidated by the investor when the investor has control. Investments of between 20% and 50% are accounted for by the equity method when the
investor does not have control but exercises significant influence over the investee.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">In addition, U.S. GAAP also requires an entity that absorbs the majority of a variable interest entity&#146;s (&#147;VIE&#148;) expected losses, or in the absence of this, the majority of a VIE&#146;s expected residual
returns (such an entity being the Primary Beneficiary) to consolidate the VIE.</FONT></P>
<P align="left">
<B><I><FONT size=2 face="sans-serif">B) Valuation of assets and subsequent revaluation</FONT></I></B></P>
<P align="left">
<FONT size=2 face="sans-serif">Both Italian and U.S. GAAP require that assets which are impaired be written down to their fair value. However, under Italian GAAP, in order to determine whether an impairment exists, the book value of an asset in
question is compared to the sum of the discounted cash flows expected to be generated by such asset. If the sum of such discounted cash flows is less than the carrying value of the asset, an impairment exists. Under U.S. GAAP, the performance of the
same analysis uses undiscounted cash flows.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">In addition, under Italian GAAP impairment charges are reversed when the situation giving rise to an impairment ceases to exist. Under U.S. GAAP reversals of impairment charges are not permitted.</FONT></P>
<P align="left">
<TABLE><TR><TD nowrap>
<B><I><FONT size=2 face="sans-serif">C) Monetary revaluation of assets</FONT></I></B><BR>
</TD></TR></TABLE>
</P>
<P align="left">
<FONT size=2 face="sans-serif">Under Italian GAAP, certain assets have been revalued at various times in accordance with various Italian laws. Under U.S. GAAP, such revaluations are not permitted.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">(21)</FONT></P>

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<P align="left">
<B><I><FONT size=2 face="sans-serif">D) Deferred tax assets and liabilities</FONT></I></B></P>
<P align="left">
<FONT size=2 face="sans-serif">Under Italian GAAP deferred taxes are recorded if recoverable with reasonable certainty. Taxes payable relating to certain potential distributions from shareholders&#146; equity or upon liquidation of a company are
accrued only to the extent such distributions are planned.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Under U.S. GAAP, deferred tax assets are recorded if their recovery is more likely than not. The potential taxes on equity reserves are considered deferred tax liabilities and are accrued accordingly.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">The adjustments included in the reconciliations to U.S. GAAP take into account the deferred tax effect of U.S. GAAP adjustments.</FONT></P>
<P align="left">
<TABLE><TR><TD nowrap>
<B><I><FONT size=2 face="sans-serif">E) Intangible assets</FONT></I></B><BR>
</TD></TR></TABLE>
</P>
<P align="left">
<FONT size=2 face="sans-serif">Under Italian GAAP, goodwill is amortized on a straight-line basis over its estimated useful life, not to exceed twenty years. Under U.S. GAAP, goodwill is not amortized, but is subject to an annual evaluation in order
to define the relevant impairment, if any.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Under Italian GAAP, start-up costs, research and development and advertising costs may be capitalized if they benefit more than one financial period. Under U.S. GAAP, such costs are expensed as incurred.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">(22)</FONT></P>

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<A name="page_23"></A>

<P align="left">
<TABLE><TR><TD nowrap>
<B><I><FONT size=2 face="sans-serif">F) Lease accounting</FONT></I></B><BR>
</TD></TR></TABLE>
</P>
<P align="left">
<FONT size=2 face="sans-serif">Under Italian GAAP, all leases are treated as operating and all lease payments are expensed as incurred. For fixed assets under capital lease, disclosure is provided in the footnotes as to the effect on the income
statement and shareholders&#146; equity as if the leases had been accounted for as capital leases.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">Under U.S. GAAP, fixed assets under capital lease are capitalized and depreciated over the lease period or estimated useful life of the asset and a liability is recorded for the present value of future lease
payments.</FONT></P>
<P align="left">
<B><I><FONT size=2 face="sans-serif">G) Transactions with entities under common control</FONT></I></B></P>
<P align="left">
<FONT size=2 face="sans-serif">The Group purchased three businesses from the shareholder group. Under Italian GAAP, transactions with entities under common control are accounted for at the exchange value and the difference between the acquisition
cost and the underlying net carrying value of the net assets acquired is recorded as goodwill. Under U.S. GAAP, transactions with entities under common control are accounted for at predecessor basis.</FONT></P>
<P align="left">
<TABLE><TR><TD nowrap>
<B><I><FONT size=2 face="sans-serif">H) Extraordinary income and expense</FONT></I></B><BR>
</TD></TR></TABLE>
</P>
<P align="left">
<FONT size=2 face="sans-serif">All items recorded by the Group as extraordinary under Italian GAAP would not qualify as extraordinary under U.S. GAAP.</FONT></P>
<P align="left">
<B><FONT size=2 face="sans-serif">18 </FONT></B><B><U><FONT size=2 face="sans-serif">Reconciliations between net income and shareholders&#146; equity determined under Italian GAAP to U.S. GAAP</FONT></U></B></P>
<P align="left">
<FONT size=2 face="sans-serif">The following is a summary of the significant adjustments to net income for the year ended December 31, 2005 and to shareholders&#146; equity at December 31, 2005 that would be required if U.S. GAAP had been applied
instead of Italian GAAP in the aggregated financial statements.</FONT></P>
<P align="left">
<FONT size=2 face="sans-serif">(23)</FONT></P>

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<TABLE border=0 cellspacing=1 cellpadding=0>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<B><I><FONT size=2 face="sans-serif">R</FONT></I></B><B><I><FONT size=1 face="sans-serif">ECONCILIATION OF NET INCOME
</FONT></I></B><B><I><FONT size=2 face="sans-serif">(in &#128;/000)</FONT></I></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=right>
<B><FONT size=2 face="sans-serif">2005</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<B><FONT size=2 face="sans-serif">Net income according to the financial statements prepared</FONT></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<B><FONT size=2 face="sans-serif">under Italian GAAP</FONT></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=right>
<B><FONT size=2 face="sans-serif">1,771</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<FONT size=2 face="sans-serif">Items increasing (decreasing) reported net income:</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<FONT size=2 face="sans-serif">A. effect of the differences related to companies carried at cost</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<FONT size=2 face="sans-serif">under Italian GAAP but consolidated under U.S. GAAP</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=right>
<FONT size=2 face="sans-serif">(3)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<FONT size=2 face="sans-serif">A. effect of the differences related to companies carried at cost</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<FONT size=2 face="sans-serif">under Italian GAAP but accounted for under the equity method</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<FONT size=2 face="sans-serif">under U.S. GAAP</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=right>
<FONT size=2 face="sans-serif">(2)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<FONT size=2 face="sans-serif">C. effect of the elimination of monetary revaluations</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=right>
<FONT size=2 face="sans-serif">30</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<FONT size=2 face="sans-serif">D. deferred income taxes</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=right>
<FONT size=2 face="sans-serif">(24)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<FONT size=2 face="sans-serif">E. effect of the write-off of intangible assets</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=right>
<FONT size=2 face="sans-serif">14</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<FONT size=2 face="sans-serif">F. effect of lease accounting</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=right>
<FONT size=2 face="sans-serif">(19)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<FONT size=2 face="sans-serif">G. effect of the elimination of transactions with entities under</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<FONT size=2 face="sans-serif">common control</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=right>
<FONT size=2 face="sans-serif">27</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<B><FONT size=2 face="sans-serif">Net adjustment</FONT></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=right>
<B><FONT size=2 face="sans-serif">22</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=78% nowrap align=left>
<B><FONT size=2 face="sans-serif">Net income in accordance with U.S. GAAP</FONT></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=19% nowrap align=right>
<B><FONT size=2 face="sans-serif">1,793</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
</TR>
</TABLE><BR>
<P align="right">
<FONT size=2 face="sans-serif">(24)</FONT></P>

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<TABLE border=0 cellspacing=1 cellpadding=0>
<TR valign="bottom">
	<TD width=68% nowrap align=left>
<B><I><FONT size=2 face="sans-serif">R</FONT></I></B><B><I><FONT size=1 face="sans-serif">ECONCILIATION OF
SHAREHOLDERS</FONT></I></B><B><I><FONT size=2 face="sans-serif">&#146; </FONT></I></B><B><I><FONT size=1 face="sans-serif">EQUITY
</FONT></I></B><B><I><FONT size=2 face="sans-serif">(in &#128;/000)</FONT></I></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=15% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
</TR>
<TR>
	<TD colspan=5>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=68% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=15% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<B><FONT size=1 face="sans-serif">Dec. 31, 2005</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
	<TD>
	</TD>
	<TD>
<HR noshade size=2>
	</TD>
</TR>
<TR valign="bottom">
	<TD width=85% nowrap colspan=3 align=left>
<B><FONT size=2 face="sans-serif">Shareholders' equity according to the financial statements prepared</FONT></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=68% nowrap align=left>
<B><FONT size=2 face="sans-serif">under Italian GAAP</FONT></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=15% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<B><FONT size=2 face="sans-serif">9.959</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=5>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=68% nowrap align=left>
<FONT size=2 face="sans-serif">Items increasing (decreasing) reported shareholders' equity:</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=15% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=68% nowrap align=left>
<FONT size=2 face="sans-serif">A. effect of the differences related to companies carried at cost</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=15% nowrap align=left>
<FONT size=2 face="sans-serif">under Italian</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=68% nowrap align=left>
<FONT size=2 face="sans-serif">GAAP but consolidated under U.S. GAAP</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=15% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<FONT size=2 face="sans-serif">(4)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=68% nowrap align=left>
<FONT size=2 face="sans-serif">A. effect of the differences related to companies carried at cost</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=15% nowrap align=left>
<FONT size=2 face="sans-serif">under Italian</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=left>
&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=85% nowrap colspan=3 align=left>
<FONT size=2 face="sans-serif">GAAP but accounted for under the equity method under U.S. GAAP</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<FONT size=2 face="sans-serif">(11)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=68% nowrap align=left>
<FONT size=2 face="sans-serif">C. effect of the elimination of monetary revaluations</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=15% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<FONT size=2 face="sans-serif">(327)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=68% nowrap align=left>
<FONT size=2 face="sans-serif">D. deferred income taxes</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=15% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<FONT size=2 face="sans-serif">184</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=68% nowrap align=left>
<FONT size=2 face="sans-serif">E. effect of the write-off of intangible assets</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=15% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<FONT size=2 face="sans-serif">(38)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=68% nowrap align=left>
<FONT size=2 face="sans-serif">F. effect of lease accounting</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=15% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<FONT size=2 face="sans-serif">81</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=85% nowrap colspan=3 align=left>
<FONT size=2 face="sans-serif">G. effect of the elimination of transactions with entities under common</FONT>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<FONT size=2 face="sans-serif">(254)</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=68% nowrap align=left>
<B><FONT size=2 face="sans-serif">Net adjustment</FONT></B>&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=15% nowrap align=left>
&nbsp;
	</TD>
	<TD width=2%>
&nbsp;	</TD>
	<TD width=12% nowrap align=right>
<B><FONT size=2 face="sans-serif">(368)</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
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<B><FONT size=2 face="sans-serif">Shareholders' equity in accordance with U.S. GAAP</FONT></B>&nbsp;
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&nbsp;	</TD>
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&nbsp;
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&nbsp;	</TD>
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<B><FONT size=2 face="sans-serif">9.591</FONT></B>&nbsp;
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<FONT size=2 face="sans-serif">*** *** ***</FONT><BR>
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<FONT size=2 face="sans-serif">(25)</FONT></P>

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