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<SEC-DOCUMENT>0000031107-08-000041.txt : 20080430
<SEC-HEADER>0000031107-08-000041.hdr.sgml : 20080430
<ACCEPTANCE-DATETIME>20080430115316
ACCESSION NUMBER:		0000031107-08-000041
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20080329
FILED AS OF DATE:		20080430
DATE AS OF CHANGE:		20080430

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			EASTERN CO
		CENTRAL INDEX KEY:			0000031107
		STANDARD INDUSTRIAL CLASSIFICATION:	CUTLERY, HANDTOOLS & GENERAL HARDWARE [3420]
		IRS NUMBER:				060330020
		STATE OF INCORPORATION:			CT
		FISCAL YEAR END:			0102

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-00599
		FILM NUMBER:		08788604

	BUSINESS ADDRESS:	
		STREET 1:		112 BRIDGE ST
		STREET 2:		P O BOX 460
		CITY:			NAUGATUCK
		STATE:			CT
		ZIP:			06770
		BUSINESS PHONE:		2037292255

	MAIL ADDRESS:	
		STREET 1:		112 BRIDGE STREET
		STREET 2:		P O BOX 460
		CITY:			NAUGATUCK
		STATE:			CT
		ZIP:			06770
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>form10q1st08.htm
<DESCRIPTION>FORM 10-Q 1ST 2008
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=1>&nbsp;</font></p>


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            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=3>UNITED STATES</font></B></p> </td> </tr>
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            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=3>SECURITIES AND EXCHANGE COMMISSION </font></B></p> </td> </tr>
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            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Washington, D.C. 20549</font></b></p> </td> </tr>
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            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:12pt;margin-bottom:0pt'><B><font SIZE=3>FORM 10-Q</font></B></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>(Mark One)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>


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            <p style='margin-left:36pt;text-indent:-36pt;text-align:center;margin-top:12pt;margin-bottom:0pt'><font face=Wingdings><b>x</b></font><b><font size=2> QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED </font></b><u><b><font size=2>March 29, 2008</font></b></u></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:12pt; margin-left:0.5in; text-indent:-0.5in;text-align:left;'><font size=1>&nbsp;</font></p>


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            <p style='margin-left:0in;text-indent:0in;text-align:center;margin-top:12pt;margin-bottom:0pt'><B><font SIZE=2>OR</font></B></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><font size=1>&nbsp;</font></p>


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            <p style='margin-left:36pt;text-indent:-36pt;text-align:center;margin-top:12pt;margin-bottom:0pt'><font face=Wingdings><b><font size=2>o</font></b></font><b><font size=2> TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM                          to</font></b></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:12pt;text-align:center;'><font size=1>&nbsp;</font></p>


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            <p style='margin-left:0in;text-indent:3.0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Commission File Number:    </font></b><u></u></p> </td>
        <td width="270" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>0599</font></b></u></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:8pt;margin-bottom:0pt'><U><B><font SIZE=3>THE EASTERN COMPANY</font></B></U><u></u></p> </td> </tr>
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        <td width="696" style='padding:0in 5.4pt 0in 5.4pt;height:.25in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(Exact name of registrant as specified in its charter)</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>


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            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Connecticut</font></b></u><u></u></p> </td>
        <td width="348" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>06-0330020</font></b></u><u></u></p> </td> </tr>
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        <td width="348" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(State or other jurisdiction of</font></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>incorporation or organization)</font></p> </td>
        <td width="348" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(I.R.S. Employer</font></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Identification No.)</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>112 Bridge Street, Naugatuck, Connecticut</font></b></u></p> </td>
        <td width="348" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>06770</font></b></u></p> </td> </tr>
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            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(Address of principal executive offices)</font></p> </td>
        <td width="348" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(Zip Code)</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>(203) 729-2255</font></b></u><b><font size=2>          </font></b></p> </td> </tr>
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            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(Registrant&#146;s telephone number, including area code)</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><b><font size=2>Not applicable</font></b></u></p> </td> </tr>
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            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(Former name, former address and former fiscal year, if changed since last report)</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.         </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>


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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Yes   </font><font face=Wingdings>x</font><b><font size=2>         </font></b><font size=2>No </font><font face=Wingdings><font size=2>o</font></font><font size=2>   </font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of &#147;accelerated filer and large accelerated filer&#148; in Rule 12b-2 of the Exchange Act. (Check one): </font></p>

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


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            <p style='margin-left:4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:108%'><font size=2>Large accelerated filer </font><font face=Wingdings><font size=2>o</font></font><font size=2>   </font></p> </td>
        <td width="180" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:108%'><font size=2>Accelerated filer </font><font face=Wingdings><b>x</b></font></p> </td> </tr>
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        <td width="399" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:108%'><font size=2>Non-accelerated filer </font><font face=Wingdings><font size=2>o</font></font><font size=2> (Do not check if a smaller reporting company)      </font></p> </td>
        <td width="180" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt;line-height:108%'><font size=2>Smaller reporting company </font><font face=Wingdings><font size=2>o</font></font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).</font></p>

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


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Yes  </font><font face=Wingdings><font size=2>o</font></font><b><font size=2>       </font></b><font size=2>No</font><b><font size=2> </font></b><font face=Wingdings>x</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>
Indicate the number of shares outstanding of each of the issuer&#146;s classes of common stock, as of the latest practicable date.
</font></p>


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            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Class</font></u></p> </td>
        <td width="345" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><u><font size=2>Outstanding as of March 29, 2008</font></u></p> </td> </tr>
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            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Common Stock, No par value</font></p> </td>
        <td width="345" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>5,821,507</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><font color="#FF0000"><font size=1>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><font size=2>- 1 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'>
<b><font size=2>PART 1 &#150; FINANCIAL INFORMATION</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><b><font size=2>ITEM 1 &#150; FINANCIAL STATEMENTS</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><B><font SIZE=2>THE EASTERN COMPANY AND SUBSIDIARIES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><B><font SIZE=2>CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=1>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><B><font SIZE=2>ASSETS</font></B></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style='background:white; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><u><b><font size=2>March 29, 2008</font></b></u><u></u></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style='background:white; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><u><b><font size=2>December 29, 2007</font></b></u><u></u></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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        <td width="420" valign=top style='background:#E4F7E1'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Current Assets</font></b></p> </td>
        <td width="15" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="420" valign=top style='background:white'>
            <p style='margin-left:29.9pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Cash and cash equivalents</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>$</font></b></p> </td>
        <td width="80" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>6,264,531</font></b></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="99" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>8,209,722</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="420" valign=top style='background:#E4F7E1'>
            <p style='margin-left:29.9pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Accounts receivable, less allowances: $340,000</font><font color="#FF0000"><font size=2> </font></font><font size=2>- 2008; $342,000 - 2007</font></p> </td>
        <td width="15" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>19,622,750</font></b></p> </td>
        <td width="16" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>18,993,934</font></p> </td>
        <td width="10" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="420" valign=top style='background:white'>
            <p style='margin-left:29.9pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Inventories</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>31,716,492</font></b></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>30,490,696</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="420" valign=top style='background:#E4F7E1'>
            <p style='margin-left:29.9pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Prepaid expenses and other assets</font></p> </td>
        <td width="15" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>2,890,265</font></b></p> </td>
        <td width="16" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,872,910</font></p> </td>
        <td width="10" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="420" valign=top style='background:white'>
            <p style='margin-left:29.9pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Recoverable taxes receivable</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>1,428,569</font></b></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,428,569</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="420" valign=top style='background:#E4F7E1'>
            <p style='margin-left:29.9pt;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Deferred income taxes</font></p> </td>
        <td width="15" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='border-bottom: solid black 1.0pt; background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>1,256,780</font></b></p> </td>
        <td width="16" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='border-bottom:solid black 1.0pt; background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='border-bottom: solid black 1.0pt; background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,256,780</font></p> </td>
        <td width="10" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="420" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Total Current Assets</font></b></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>63,179,387</font></b></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>63,252,611</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid;height:6.75pt'>
        <td width="420" valign=top style='background:white; height:6.75pt'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white; height:6.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white; height:6.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='background:white; height:6.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white; height:6.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white; height:6.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:white; height:6.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white; height:6.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="420" valign=top style='background:#E4F7E1'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Property, Plant and Equipment</font></b></p> </td>
        <td width="15" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>48,645,407</font></b></p> </td>
        <td width="16" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>47,983,565</font></p> </td>
        <td width="10" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="420" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><b><font size=2>Accumulated depreciation</font></b></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='border-bottom: solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(23,524,969</font></b></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><b><font size=2>)</font></b></p> </td>
        <td width="10" valign=bottom style='border-bottom:solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='border-bottom: solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(22,749,351</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="420" valign=top style='background:#E4F7E1'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>25,120,438</font></b></p> </td>
        <td width="16" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>25,234,214</font></p> </td>
        <td width="10" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid;height:.15in'>
        <td width="420" valign=top style='background:white; height:.15in'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white; height:.15in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white; height:.15in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='background:white; height:.15in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white; height:.15in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white; height:.15in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:white; height:.15in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white; height:.15in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="420" valign=top style='background:#E4F7E1'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Goodwill</font></b></p> </td>
        <td width="15" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>13,903,777</font></b></p> </td>
        <td width="16" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>13,955,608</font></p> </td>
        <td width="10" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="420" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Trademarks</font></b></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>135,473</font></b></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>135,473</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="420" valign=top style='background:#E4F7E1'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Patents, technology, and other intangibles net of accumulated amortization</font></b></p> </td>
        <td width="15" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>3,904,566</font></b></p> </td>
        <td width="16" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>3,981,338</font></p> </td>
        <td width="10" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="420" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><b><font size=2>Prepaid pension cost</font></b></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='border-bottom: solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>1,815,635</font></b></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='border-bottom:solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='border-bottom: solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,792,657</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="420" valign=top style='background:#E4F7E1'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='border-bottom: solid black 1.0pt;background: #E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="80" valign=bottom style='border-bottom: solid black 1.0pt;background: #E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>19,759,451</font></b></p> </td>
        <td width="16" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='border-bottom:solid black 1.0pt;  background:#E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='border-bottom: solid black 1.0pt;background: #E4F7E1'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>19,865,076</font></p> </td>
        <td width="10" valign=bottom style='background:#E4F7E1'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="420" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><B><font SIZE=2>TOTAL ASSETS</font></B></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='border-bottom: double black 2.25pt;background: white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>$</font></b></p> </td>
        <td width="80" valign=bottom style='border-bottom: double black 2.25pt;background: white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>108,059,276</font></b></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='border-bottom:double black 2.25pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="99" valign=bottom style='border-bottom: double black 2.25pt;background: white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>108,351,901</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=1>&nbsp;</font></font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="666" style='border-collapse:collapse'>
    <tr style='page-break-inside:avoid'>
        <td width="413" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><b><font size=2>LIABILITIES AND SHAREHOLDERS&#146; EQUITY</font></b></p> </td>
        <td width="23" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style='background:white; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style='background:white; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="413" valign=top style='background:#EAF9E8'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Current Liabilities</font></b></p> </td>
        <td width="23" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="413" valign=top style='background:white'>
            <p style='margin-left:29.9pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Accounts payable</font></p> </td>
        <td width="23" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>$</font></b></p> </td>
        <td width="78" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>8,263,585</font></b></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="99" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>8,183,408</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="413" valign=top style='background:#EAF9E8'>
            <p style='margin-left:29.9pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Accrued compensation</font></p> </td>
        <td width="23" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>1,672,283</font></b></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,571,970</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="413" valign=top style='background:white'>
            <p style='margin-left:29.9pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Other accrued expenses</font></p> </td>
        <td width="23" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>2,588,836</font></b></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,345,091</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="413" valign=top style='background:#EAF9E8'>
            <p style='margin-left:29.9pt;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Current portion of long-term debt</font></p> </td>
        <td width="23" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>3,126,794</font></b></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='border-bottom:solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>3,123,742</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="413" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Total Current Liabilities</font></b></p> </td>
        <td width="23" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>15,651,498</font></b></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>16,224,211</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid;height:.15in'>
        <td width="413" valign=top style='background:white; height:.15in'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="23" valign=bottom style='background:white; height:.15in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white; height:.15in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='background:white; height:.15in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white; height:.15in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white; height:.15in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:white; height:.15in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white; height:.15in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="413" valign=top style='background:#EAF9E8'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Deferred income taxes</font></b></p> </td>
        <td width="23" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>2,254,749</font></b></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,390,882</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="413" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Other long-term liabilities</font></b></p> </td>
        <td width="23" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>1,659,010</font></b></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,620,311</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="413" valign=top style='background:#EAF9E8'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Long-term debt, less current portion</font></b></p> </td>
        <td width="23" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>13,600,204</font></b></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>14,383,060</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="413" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Accrued postretirement benefits</font></b></p> </td>
        <td width="23" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>1,040,569</font></b></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,111,234</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="413" valign=top style='background:#EAF9E8'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Accrued pension cost</font></b></p> </td>
        <td width="23" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>1,447,075</font></b></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,226,994</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="413" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Interest rate swap obligation</font></b></p> </td>
        <td width="23" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>1,012,370</font></b></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>577,941</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid;height:3.0pt'>
        <td width="413" valign=top style='background:white; height:3.0pt'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="23" valign=bottom style='background:white; height:3.0pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white; height:3.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='background:white; height:3.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white; height:3.0pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white; height:3.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:white; height:3.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white; height:3.0pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="413" valign=top style='background:#EAF9E8'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Shareholders&#146; Equity</font></b></p> </td>
        <td width="23" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="413" valign=top style='background:white'>
            <p style='margin-left:29.9pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Preferred Stock, no par value: Authorized and unissued 2,000,000 shares</font></p> </td>
        <td width="23" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="413" valign=top style='background:#EAF9E8'>
            <p style='margin-left:29.9pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Common Stock, no par value: Authorized: 50,000,000 shares</font></p> </td>
        <td width="23" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="413" valign=top style='background:white'>
            <p style='margin-left:47.2pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Issued: 8,366,886 shares in 2008 and 8,354,978 shares in 2007</font></p> </td>
        <td width="23" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>22,349,640</font></b></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>22,173,795</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="413" valign=top style='background:#EAF9E8'>
            <p style='margin-left:29.9pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Treasury Stock: 2,545,379 shares in 2008 and 2007</font></p> </td>
        <td width="23" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(16,967,562</font></b></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>)</font></b></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(16,967,562</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="413" valign=top style='background:white'>
            <p style='margin-left:29.9pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Retained earnings</font></p> </td>
        <td width="23" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>67,004,476</font></b></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>66,262,566</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid;height:9.0pt'>
        <td width="413" valign=top style='background:white; height:9.0pt'>
            <p style='margin-left:29.9pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="23" valign=bottom style='background:white; height:9.0pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white; height:9.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='background:white; height:9.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white; height:9.0pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white; height:9.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:white; height:9.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white; height:9.0pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="413" valign=top style='background:#EAF9E8'>
            <p style='margin-left:29.9pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Accumulated other comprehensive income (loss):</font></p> </td>
        <td width="23" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="413" valign=top style='background:white'>
            <p style='margin-left:47.2pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Foreign currency translation</font></p> </td>
        <td width="23" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>2,300,580</font></b></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,400,268</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="413" valign=top style='background:#EAF9E8'>
            <p style='margin-left:47.2pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Unrecognized net pension and postretirement benefit costs, net of tax</font></p> </td>
        <td width="23" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(2,645,882</font></b></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>)</font></b></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(2,682,183</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="413" valign=top style='background:white'>
            <p style='margin-left:47.2pt;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Derivative financial instruments, net of taxes</font></p> </td>
        <td width="23" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='border-bottom: solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='border-bottom: solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(647,451</font></b></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><b><font size=2>)</font></b></p> </td>
        <td width="10" valign=bottom style='border-bottom:solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='border-bottom: solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(369,616</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="413" valign=top style='background:#EAF9E8'>
            <p style='margin-left:40.5pt;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Accumulated other comprehensive loss</font></p> </td>
        <td width="23" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(992,753</font></b></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><b><font size=2>)</font></b></p> </td>
        <td width="10" valign=bottom style='border-bottom:solid black 1.0pt;  background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(651,531</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="413" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><b><font size=2>Total Shareholders&#146; Equity</font></b></p> </td>
        <td width="23" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='border-bottom: solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=bottom style='border-bottom: solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>71,393,801</font></b></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='border-bottom:solid black 1.0pt;  background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='border-bottom: solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>70,817,268</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="413" valign=top style='background:#EAF9E8'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><b><font size=2>TOTAL LIBILITIES AND SHAREHOLDERS&#146; EQUITY</font></b></p> </td>
        <td width="23" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='border-bottom: double black 2.25pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>$</font></b></p> </td>
        <td width="78" valign=bottom style='border-bottom: double black 2.25pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>108,059,276</font></b></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='border-bottom:double black 2.25pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="99" valign=bottom style='border-bottom: double black 2.25pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>108,351,901</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font color="#FF0000"><font size=1>&nbsp;</font></font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="185" style='border-collapse:collapse; '>
    <tr >
        <td width="16" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="169" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><i><font size=2>See accompanying notes.</font></i></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'>
</p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><font size=2>- 2 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><B><font SIZE=2>THE EASTERN COMPANY AND SUBSIDIARIES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><B><font SIZE=2>CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="494" style='border-collapse:collapse'>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td colspan="5" valign=bottom style='background:white; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Three Months Ended</font></b></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:#EAF9E8'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><b><font size=2>March 29, 2008</font></b></p> </td>
        <td width="42" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><b><font size=2>March 31, 2007</font></b></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Net sales</font></b></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>$</font></b></p> </td>
        <td width="94" valign=bottom style='border-top:solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>32,918,911</font></b></p> </td>
        <td width="42" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="94" valign=bottom style='border-top:solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>52,317,174</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:#EAF9E8'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Cost of products sold</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(26,154,810</font></b></p> </td>
        <td width="42" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><b><font size=2>)</font></b></p> </td>
        <td width="16" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(36,287,481</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Gross margin</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>6,764,101</font></b></p> </td>
        <td width="42" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>16,029,693</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="42" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:#EAF9E8'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Selling and administrative expenses</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(4,693,193</font></b></p> </td>
        <td width="42" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><b><font size=2>)</font></b></p> </td>
        <td width="16" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(5,169,411</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Operating profit</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>2,070,908</font></b></p> </td>
        <td width="42" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>10,860,282</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="42" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:#EAF9E8'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Interest expense</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(275,161</font></b></p> </td>
        <td width="42" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>)</font></b></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(374,976</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Other income</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='border-bottom: solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='border-bottom: solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>17,954</font></b></p> </td>
        <td width="42" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='border-bottom: solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='border-bottom: solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>12,976</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:#EAF9E8'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Income before income taxes</font></b></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>1,813,701</font></b></p> </td>
        <td width="42" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>10,498,282</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="42" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Income taxes</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='border-bottom: solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='border-bottom: solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>607,023</font></b></p> </td>
        <td width="42" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='border-bottom: solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='border-bottom: solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>3,740,044</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:#EAF9E8'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><b><font size=2>Net income</font></b></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='border-bottom: double black 2.25pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>$</font></b></p> </td>
        <td width="94" valign=bottom style='border-bottom: double black 2.25pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>1,206,678</font></b></p> </td>
        <td width="42" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='border-bottom: double black 2.25pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="94" valign=bottom style='border-bottom: double black 2.25pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>6,758,238</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="42" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Earnings per Share:</font></b></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="42" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:#EAF9E8'>
            <p style='margin-left:29.9pt;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font size=2>Basic</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='border-bottom: double black 2.25pt;background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>$0.21</font></b></p> </td>
        <td width="42" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='border-bottom: double black 2.25pt;background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>$1.23</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:white'>
            <p style='margin-left:29.9pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="42" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:#E8FCEA'>
            <p style='margin-left:29.9pt;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font size=2>Diluted</font></p> </td>
        <td width="15" valign=bottom style='background:#E8FCEA'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#E8FCEA'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='border-bottom: double black 2.25pt;background:#E8FCEA'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>$0.20</font></b></p> </td>
        <td width="42" valign=bottom style='background:#E8FCEA'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:#E8FCEA'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='border-bottom: double black 2.25pt;background:#E8FCEA'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>$1.14</font></p> </td>
        <td width="10" valign=bottom style='background:#E8FCEA'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:white'>
            <p style='margin-left:29.9pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="42" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:white'>
            <p style='margin-left:29.9pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="42" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:#EAF9E8'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><b><font size=2>Cash dividends per share:</font></b></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='border-bottom: double black 2.25pt;background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>$ .08</font></b></p> </td>
        <td width="42" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='border-bottom: double black 2.25pt;background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>$  .08</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>

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

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:justify;'><i><font size=2>See accompanying notes.</font></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><B><font SIZE=2>THE EASTERN COMPANY AND SUBSIDIARIES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><B><font SIZE=2>CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="494" style='border-collapse:collapse'>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td colspan="5" valign=bottom style='background:white; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Three Months Ended</font></b></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:#EAF9E8'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><b><font size=2>March 29, 2008</font></b></p> </td>
        <td width="42" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><b><font size=2>March 31, 2007</font></b></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Net income</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>$</font></b></p> </td>
        <td width="94" valign=bottom style='border-top:solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>1,206,678</font></b></p> </td>
        <td width="42" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="94" valign=bottom style='border-top:solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>6,758,238</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:#EAF9E8'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Other comprehensive income/(loss) -</font></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="42" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:white'>
            <p style='margin-left:29.9pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Change in foreign currency translation</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(99,688</font></b></p> </td>
        <td width="42" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>54,128</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:#EAF9E8'>
            <p style='margin-left:29.9pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Change in pension and postretirement benefit costs, net of income taxes of $20,461 and $35,104 in 2008 and 2007, respectively</font></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>36,301</font></b></p> </td>
        <td width="42" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>60,913</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:white'>
            <p style='margin-left:29.9pt;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Change in fair value of derivative financial instruments, net of income tax benefit of $156,594 and $21,808 in 2008 and 2007, respectively</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='border-bottom: solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='border-bottom: solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(277,835</font></b></p> </td>
        <td width="42" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><b><font size=2>)</font></b></p> </td>
        <td width="16" valign=bottom style='border-bottom: solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='border-bottom: solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(36,139</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:#EAF9E8'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(341,222</font></b></p> </td>
        <td width="42" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>)</font></p> </td>
        <td width="16" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>78,902</font></p> </td>
        <td width="10" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="208" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font size=2>Comprehensive income</font></p> </td>
        <td width="16" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='border-bottom: double black 2.25pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>$</font></b></p> </td>
        <td width="94" valign=bottom style='border-bottom: double black 2.25pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>865,456</font></b></p> </td>
        <td width="42" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='border-bottom: double black 2.25pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="94" valign=bottom style='border-bottom: double black 2.25pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>6,837,140</font></p> </td>
        <td width="10" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=1>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><i><font size=2>See accompanying notes.</font></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><font size=2>- 3 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'>
</p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><B><font SIZE=2>THE EASTERN COMPANY AND SUBSIDIARIES</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><B><font SIZE=2>CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="629" style='border-collapse:collapse'>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td colspan="5" valign=bottom style='background:white; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Three Months Ended</font></b></p> </td>
        <td width="9" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:#EAF9E8'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td>
        <td width="14" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><b><font size=2>March 29, 2008</font></b></p> </td>
        <td width="40" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><b><font size=2>March 31, 2007</font></b></p> </td>
        <td width="9" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Operating Activities</font></b></p> </td>
        <td width="14" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='border-top:solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="40" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='border-top:solid black 1.0pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="9" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:#EAF9E8'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Net income</font></p> </td>
        <td width="14" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>$</font></b></p> </td>
        <td width="92" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>1,206,678</font></b></p> </td>
        <td width="40" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="87" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>6,758,238</font></p> </td>
        <td width="9" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Adjustments to reconcile net income to net cash (used in) provided by operating activities:</font></p> </td>
        <td width="14" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="40" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="9" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:#EAF9E8'>
            <p style='margin-left:47.2pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Depreciation and amortization</font></p> </td>
        <td width="14" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>993,633</font></b></p> </td>
        <td width="40" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,230,177</font></p> </td>
        <td width="9" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:white'>
            <p style='margin-left:47.2pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Provision for doubtful accounts</font></p> </td>
        <td width="14" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>-</font></b></p> </td>
        <td width="40" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>13,589</font></p> </td>
        <td width="9" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:#EAF9E8'>
            <p style='margin-left:47.2pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Loss on sale of equipment and other assets</font></p> </td>
        <td width="14" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>-</font></b></p> </td>
        <td width="40" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>5,992</font></p> </td>
        <td width="9" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:white'>
            <p style='margin-left:47.2pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Issuance of Common Stock for directors&#146; fees</font></p> </td>
        <td width="14" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>10,832</font></b></p> </td>
        <td width="40" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>15,301</font></p> </td>
        <td width="9" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:#EAF9E8'>
            <p style='margin-left:47.2pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Changes in operating assets and liabilities:</font></p> </td>
        <td width="14" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="40" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="9" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:white'>
            <p style='margin-left:55.85pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Accounts receivable</font></p> </td>
        <td width="14" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(626,833</font></b></p> </td>
        <td width="40" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>)</font></b></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(2,071,135</font></p> </td>
        <td width="9" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:#EAF9E8'>
            <p style='margin-left:55.85pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Inventories</font></p> </td>
        <td width="14" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(1,251,400</font></b></p> </td>
        <td width="40" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,197,072</font></p> </td>
        <td width="9" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:white'>
            <p style='margin-left:55.85pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Prepaid expenses and other</font></p> </td>
        <td width="14" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(9,318</font></b></p> </td>
        <td width="40" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(707,732</font></p> </td>
        <td width="9" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:#EAF9E8'>
            <p style='margin-left:55.85pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Prepaid pension cost</font></p> </td>
        <td width="14" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>264,398</font></b></p> </td>
        <td width="40" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>27,250</font></p> </td>
        <td width="9" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:white'>
            <p style='margin-left:55.85pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Other assets</font></p> </td>
        <td width="14" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(39,716</font></b></p> </td>
        <td width="40" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>)</font></b></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(58,373</font></p> </td>
        <td width="9" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:#EAF9E8'>
            <p style='margin-left:55.85pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Accounts payable</font></p> </td>
        <td width="14" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>33,317</font></b></p> </td>
        <td width="40" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(3,769,326</font></p> </td>
        <td width="9" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:white'>
            <p style='margin-left:55.85pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Accrued compensation</font></p> </td>
        <td width="14" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(910,091</font></b></p> </td>
        <td width="40" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>)</font></b></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(1,231,433</font></p> </td>
        <td width="9" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:#EAF9E8'>
            <p style='margin-left:55.85pt;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Other accrued expenses</font></p> </td>
        <td width="14" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>253,748</font></b></p> </td>
        <td width="40" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>1,731,924</font></p> </td>
        <td width="9" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Net cash (used in) provided by operating activities</font></b></p> </td>
        <td width="14" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(74,752</font></b></p> </td>
        <td width="40" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>)</font></b></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>3,141,544</font></p> </td>
        <td width="9" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="40" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="9" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:#EAF9E8'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Investing Activities</font></b></p> </td>
        <td width="14" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="40" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="9" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Purchases of property, plant and equipment</font></p> </td>
        <td width="14" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(699,860</font></b></p> </td>
        <td width="40" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>)</font></b></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(787,275</font></p> </td>
        <td width="9" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:#EAF9E8'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Proceeds from sale of equipment and other assets</font></p> </td>
        <td width="14" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>-</font></b></p> </td>
        <td width="40" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>7,650</font></p> </td>
        <td width="9" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:#EAF9E8'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Business acquisition</font></p> </td>
        <td width="14" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(128,325</font></b></p> </td>
        <td width="40" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><b><font size=2>)</font></b></p> </td>
        <td width="15" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>-</font></p> </td>
        <td width="9" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Net cash used in investing activities</font></b></p> </td>
        <td width="14" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(828,185</font></b></p> </td>
        <td width="40" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>)</font></b></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(779,625</font></p> </td>
        <td width="9" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="40" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="9" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:#EAF9E8'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Financing Activities</font></b></p> </td>
        <td width="14" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="40" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="9" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Principal payments on long-term debt</font></p> </td>
        <td width="14" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(779,804</font></b></p> </td>
        <td width="40" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>)</font></b></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(776,899</font></p> </td>
        <td width="9" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:#EAF9E8'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Proceeds from sales of Common Stock</font></p> </td>
        <td width="14" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>114,413</font></b></p> </td>
        <td width="40" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>839,335</font></p> </td>
        <td width="9" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Tax benefit from exercise of incentive stock options</font></p> </td>
        <td width="14" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>50,600</font></b></p> </td>
        <td width="40" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>536,947</font></p> </td>
        <td width="9" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:#EAF9E8'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Dividends paid</font></p> </td>
        <td width="14" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(464,767</font></b></p> </td>
        <td width="40" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><b><font size=2>)</font></b></p> </td>
        <td width="15" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(440,256</font></p> </td>
        <td width="9" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Net cash (used in) provided by</font></b><font color="#FF0000"><b><font size=2> </font></b></font><b><font size=2>financing activities</font></b></p> </td>
        <td width="14" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(1,079,558</font></b></p> </td>
        <td width="40" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>)</font></b></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>159,127</font></p> </td>
        <td width="9" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="40" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="9" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:#EAF9E8'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><b><font size=2>Effect of exchange rate changes on cash</font></b></p> </td>
        <td width="14" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>37,304</font></b></p> </td>
        <td width="40" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(3,242</font></p> </td>
        <td width="9" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Net change in cash and cash equivalents</font></b></p> </td>
        <td width="14" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(1,945,191</font></b></p> </td>
        <td width="40" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>)</font></b></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,517,804</font></p> </td>
        <td width="9" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="40" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="9" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:#EAF9E8'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Cash and cash equivalents at beginning of period</font></p> </td>
        <td width="14" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="92" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>8,209,722</font></b></p> </td>
        <td width="40" valign=bottom style='background:#EAF9E8; '>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="87" valign=bottom style='border-bottom: solid black 1.0pt; background:#EAF9E8'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>3,101,458</font></p> </td>
        <td width="9" valign=bottom style='background:#EAF9E8'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="357" valign=top style='background:white'>
            <p style='margin-left:.25in;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><b><font size=2>Cash and cash equivalents at end of period</font></b></p> </td>
        <td width="14" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='border-bottom: double black 2.25pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>$</font></b></p> </td>
        <td width="92" valign=bottom style='border-bottom: double black 2.25pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>6,264,531</font></b></p> </td>
        <td width="40" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='border-bottom: double black 2.25pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="87" valign=bottom style='border-bottom: double black 2.25pt; background:white'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>5,619,262</font></p> </td>
        <td width="9" valign=bottom style='background:white'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0.5pt'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:justify;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:justify;'><i><font size=2>See accompanying notes.</font></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><font size=2>- 4 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
<!-- EEDocs PBEnd-->

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<font SIZE=2>THE EASTERN COMPANY</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font SIZE=2>MARCH 29, 2008</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><b><font size=2>Note A - Basis of Presentation</font></b></u></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by generally accepted accounting principles in the United States for complete financial statements. Refer to the Company&#146;s consolidated financial statements and notes thereto included in its Form 10-K for the year ended December 29, 2007 for additional information.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The accompanying condensed consolidated financial statements are unaudited. However, in the opinion of management, all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of the results of operations for interim periods have been reflected therein. All intercompany accounts and transactions are eliminated. Operating results for interim periods are not necessarily indicative of the results that may be expected for the full year.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The condensed consolidated balance sheet as of December 29, 2007 has been derived from the audited consolidated balance sheet at that date.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><b><font size=2>Note B &#150; Earnings Per Share</font></b></u></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The denominators used in the earnings per share computations follow:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="696" style='margin-left:4.3pt;border-collapse:collapse'>
    <tr >
        <td width="359" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="3" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Three Months Ended</font></b></p> </td> </tr>
    <tr >
        <td width="359" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="162" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>March 29, 2008</font></b></p> </td>
        <td width="20" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="155" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>March 31, 2007</font></b></p> </td> </tr>
    <tr >
        <td width="359" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Basic:</font></b></p> </td>
        <td width="162" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="20" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="155" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="359" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=2>Weighted average shares outstanding</font></p> </td>
        <td width="162" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5,811,962</font></b></p> </td>
        <td width="20" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="155" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,507,372</font></p> </td> </tr>
    <tr >
        <td width="359" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.7pt;text-indent:.2pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="162" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="20" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="155" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="359" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Diluted:</font></b></p> </td>
        <td width="162" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="20" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="155" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="359" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.7pt;text-indent:.2pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Weighted average shares outstanding</font></p> </td>
        <td width="162" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5,811,962</font></b></p> </td>
        <td width="20" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="155" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,507,372</font></p> </td> </tr>
    <tr >
        <td width="359" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>Dilutive stock options</font></p> </td>
        <td width="162" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>345,168</font></b></p> </td>
        <td width="20" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="155" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>424,672</font></p> </td> </tr>
    <tr >
        <td width="359" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.7pt;text-indent:.2pt;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font size=2>Denominator for diluted earnings per share</font></p> </td>
        <td width="162" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>6,157,130</font></b></p> </td>
        <td width="20" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="155" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,932,044</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><b><font size=2>Note C - Inventories</font></b></u></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>The components of inventories follow:</font></p>

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


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="696" style='margin-left:4.3pt;border-collapse:collapse'>
    <tr >
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="160" valign=top style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>March 29, 2008</font></b></p> </td>
        <td width="19" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="181" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>December 29, 2007</font></b></p> </td> </tr>
    <tr >
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="160" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="19" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="181" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Raw material and component parts</font></b></p> </td>
        <td width="160" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$    8,785,468</font></p> </td>
        <td width="19" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="181" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$    8,435,858</font></p> </td> </tr>
    <tr >
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Work in process</font></b></p> </td>
        <td width="160" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>8,817,185</font></p> </td>
        <td width="19" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="181" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>8,482,427</font></p> </td> </tr>
    <tr >
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><b><font size=2>Finished goods</font></b></p> </td>
        <td width="160" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>14,113,839</font></p> </td>
        <td width="19" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="181" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>13,572,411</font></p> </td> </tr>
    <tr >
        <td width="336" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="160" valign=top style='border-top:solid black 1.0pt; border-left:none;border-bottom:double black 2.25pt;border-right:none;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$  31,716,492</font></p> </td>
        <td width="19" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="181" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$  30,490,696</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><font size=2>- 5 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><b><font size=2>Note D &#150; Segment Information</font></b></u></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Segment financial information follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="510" style='margin-left:5.75pt;border-collapse:collapse;  '>
    <tr style='page-break-inside:avoid'>
        <td width="282" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:13.5pt;text-indent:-13.5pt;text-align:left;margin-top:0in;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td>
        <td  colspan="3" valign=top style=' padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Three Months Ended</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="282" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:13.5pt;text-indent:-13.5pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td>
        <td width="108" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>March 29, 2008</font></b></p> </td>
        <td width="24" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>March 31, 2007</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="282" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:13.5pt;text-indent:-13.5pt;text-align:left;margin-top:0in;margin-bottom: 0in'><b><font size=2>Revenues:</font></b></p> </td>
        <td width="108" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:justify;margin-top:0in;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:justify;margin-top:0in;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:justify;margin-top:0in;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="282" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:13.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom: 0in'><b><font size=2>Sales to unaffiliated customers:</font></b></p> </td>
        <td width="108" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:justify;margin-top:0in;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="282" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:27.0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom: 0in'><b><font size=2>Industrial Hardware</font></b></p> </td>
        <td width="108" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>$14,547,611</font></p> </td>
        <td width="24" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>$34,797,817</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="282" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:27.0pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom: 0in'><b><font size=2>Security Products</font></b>    </p> </td>
        <td width="108" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>14,051,281</font></p> </td>
        <td width="24" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>14,129,611</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="282" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:40.5pt;text-indent:-13.5pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><b><font size=2>Metal Products </font></b>              </p> </td>
        <td width="108" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>4,320,019</font></p> </td>
        <td width="24" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>3,389,746</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="282" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:40.5pt;text-indent:-13.5pt;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td>
        <td width="108" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>$32,918,911</font></p> </td>
        <td width="24" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=bottom style='border-bottom:double black 2.25pt; padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>$52,317,174</font></p> </td> </tr>
    <tr style='page-break-inside:avoid;height:3.45pt'>
        <td width="282" valign=top style='padding:0in 5.75pt 0in 5.75pt; height:3.45pt'>
            <p style='margin-left:40.5pt;text-indent:-13.5pt;text-align:left;margin-top:0in;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td>
        <td width="108" valign=bottom style='padding:0in 5.75pt 0in 5.75pt;height:3.45pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=bottom style='padding:0in 5.75pt 0in 5.75pt; height:3.45pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.75pt 0in 5.75pt;height:3.45pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="282" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Income before income taxes:</font></b></p> </td>
        <td width="108" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="282" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:13.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom: 0in'><b><font size=2>Industrial Hardware</font></b></p> </td>
        <td width="108" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>$1,032,354</font></p> </td>
        <td width="24" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>$10,235,423</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="282" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:13.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom: 0in'><b><font size=2>Security Products</font></b></p> </td>
        <td width="108" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>1,075,021</font></p> </td>
        <td width="24" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>1,104,168</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="282" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:13.5pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><b><font size=2>Metal Products</font></b></p> </td>
        <td width="108" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>(36,467)</font></p> </td>
        <td width="24" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>(479,309)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="282" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:40.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom: 0in'><b><font size=2>Operating Profit</font></b>                                           </p> </td>
        <td width="108" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>2,070,908</font></p> </td>
        <td width="24" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>10,860,282</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="282" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:13.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom: 0in'><b><font size=2>Interest expense                </font></b></p> </td>
        <td width="108" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>(275,161)</font></p> </td>
        <td width="24" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>(374,976)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="282" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:13.5pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><b><font size=2>Other income                       </font></b></p> </td>
        <td width="108" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>17,954</font></p> </td>
        <td width="24" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=bottom style='border-bottom:solid black 1.0pt; padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>12,976</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="282" valign=top style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:.75in;text-indent:-13.5pt;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td>
        <td width="108" valign=bottom style='border-bottom: double black 2.25pt;padding: 0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>$1,813,701</font></p> </td>
        <td width="24" valign=bottom style='padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="96" valign=bottom style='border-bottom:double black 2.25pt; padding:0in 5.75pt 0in 5.75pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>$10,498,282</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><b><font size=2>Note E &#150; Recent Accounting Pronouncements</font></b></u></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>In September 2006, the FASB issued Statement of Financial Accounting Standards No.&nbsp;157, </font><i><font size=2>Fair Value Measurements, </font></i><font size=2>(&#147;SFAS 157&#148;).  SFAS 157 defines fair value, establishes a framework for measuring the fair value of assets and liabilities, and expands disclosure requirements regarding the fair value measurement.  SFAS 157 does not expand the use of fair value measurements.  This statement, as issued, is effective for financial statements issued for fiscal years beginning after November&nbsp;15, 2007, and interim periods within those fiscal years.  FASB Staff Position (FSP) FAS No. 157-2 was issued in February 2008 and deferred the effective date of SFAS 157 for non-financial assets and liabilities to fiscal years beginning after November 2008.  As such, the Company adopted SFAS 157 as of December 30, 2007 for financial assets and liabilities only.
There was no material impact on the Company&#146;s consolidated financial statements.  As of March 29, 2008, the Company&#146;s financial liability subject to SFAS 157 consisted of an interest rate swap agreement (included in Interest rate swap obligation on the consolidated balance sheets).  The Company determined fair value for the derivative liability based on third party valuation models (i.e. Level 2 as defined under SFAS 157).  The Company does not have any financial assets subject to SFAS 157.  The Company does not believe that the adoption of SFAS 157 to non-financial assets and liabilities will have a material impact on its consolidated financial statements. </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>In February 2007, the FASB issued SFAS&nbsp;159, </font><i><font size=2>The Fair Value Option for Financial Assets and Financial Liabilities&#151;Including an amendment of FASB Statement No.</font></i><font size=2>&nbsp;</font><i><font size=2>115</font></i><font size=2> (&#147;SFAS&nbsp;159&#148;).  SFAS&nbsp;159 expands the use of fair value accounting but does not affect existing standards which requires assets or liabilities to be carried at fair value.  The objective of SFAS&nbsp;159 is to improve financial reporting by providing companies with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions.  Under SFAS&nbsp;159, a company may elect to use fair value to measure eligible items at specified election dates and report unrealized gains and losses on items for which the fair
value option has been elected in earnings at each subsequent reporting date.  Eligible items include, but are limited to, accounts receivable, accounts payable, and issued debt.  If elected, SFAS&nbsp;159 is effective for fiscal years beginning after November&nbsp;15, 2007.  The Company has not elected to measure any additional assets or liabilities at fair value that are not already measured at fair value under existing standards.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>In December&nbsp;2007, the FASB issued SFAS No. 141 (revised 2007), </font><i><font size=2>Business Combinations</font></i><font size=2> (&#147;SFAS No. 141(R)&#148;), which replaces SFAS No. 141. This standard significantly changes the principles and requirements for how the acquirer of a business recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquiree. The statement also provides guidance for recognizing and measuring the goodwill acquired in the business combination and determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination. This statement is effective prospectively, except for certain retrospective adjustments to deferred </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><font size=2>- 6 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>tax balances, for fiscal years beginning after December&nbsp;15, 2008. The Company has not determined the impact, if any, of the adoption of SFAS No. 141(R).</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>In December 2007, the FASB issued SFAS No. 160, </font><i><font size=2>Noncontrolling Interests in Consolidated Financial Statements &#150; an amendment of ARB No. 51, </font></i><font size=2>(&#147;SFAS No. 160&#148;)</font><i><font size=2>. </font></i><font size=2>  SFAS 160 clarifies the classification of noncontrolling interests in consolidated balance sheets and reporting transactions between the reporting entity and holders of noncontrolling interests.  Under this statement, noncontrolling interests are considered equity and reported as an element of consolidated equity.  Further, net income encompasses all consolidated subsidiaries with disclosure of the attribution of net income between controlling and noncontrolling interests.  SFAS No. 160 is effective prospectively for fiscal years beginning after December 15, 2008.  Currently, there are no noncontrolling interests in any of the Company&#146;s subsidiaries.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><b><font size=2>Note F - Debt</font></b></u></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The interest rates on the term and the revolving credit portions of the Loan Agreement vary. The interest rates may vary based on the LIBOR rate plus a margin spread of 1.0% to 1.65% for the term portion and 1.0% to 1.6% for the revolving credit portion. The margin rate spread is based on operating results calculated on a rolling-four-quarter basis. The Company may also borrow funds at the lender&#146;s prime rate. On March 29, 2008, the interest rate on the term portion of the Loan Agreement was 5.73%. There were no borrowings during the quarter under the revolving loan.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><u><b><font size=2>Note G &#150; Goodwill</font></b></u></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The following is a roll-forward of goodwill from year-end 2007 to the end of the first quarter 2008:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="516" style='border-collapse:collapse'>
    <tr style='page-break-inside:avoid; '>
        <td width="117" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Industrial</font></b><br> <b><font size=2>Hardware</font></b><br> <b><font size=2>Segment</font></b></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Security</font></b><br> <b><font size=2>Products</font></b><br> <b><font size=2>Segment</font></b></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Metal</font></b><br> <b><font size=2>Products</font></b><br> <b><font size=2>Segment</font></b></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><br> <br> <b><font size=2>Total</font></b></p> </td>
        <td width="26" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td  width="1">
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="117" valign=top >
            <p style='margin-left:22.5pt;text-indent:-.25in;text-align:justify;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="62" valign=bottom style='border-top:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="62" valign=bottom style='border-top:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='border-top:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="62" valign=bottom style='border-top:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="117" valign=top >
            <p style='margin-left:22.5pt;text-indent:-.25in;text-align:justify;margin-top:2pt;margin-bottom:0pt'><font size=2>Beginning balance</font></p> </td>
        <td width="14" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="62" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>2,121,792</font></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="62" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>11,833,816</font></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="57" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="62" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>13,955,608</font></p> </td>
        <td colspan="2" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="117" valign=top >
            <p style='margin-left:22.5pt;text-indent: -.25in;text-align:justify;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Foreign exchange</font></p> </td>
        <td width="14" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="62" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(51,831</font></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font size=2>)</font></p> </td>
        <td width="16" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="62" valign=bottom style='border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="57" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="62" valign=bottom style='border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(51,831</font></p> </td>
        <td colspan="2" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="117" valign=top >
            <p style='margin-left:22.5pt;text-indent: -.25in;text-align:justify;margin-top:1.5pt;margin-bottom: 0in'><b><font size=2>Ending balance</font></b></p> </td>
        <td width="14" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="15" valign=bottom style='border-bottom: double black 2.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>$</font></b></p> </td>
        <td width="62" valign=bottom style='border-bottom: double black 2.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>2,069,961</font></b></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='border-bottom: double black 2.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>$</font></b></p> </td>
        <td width="62" valign=bottom style='border-bottom:double black 2.25pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>11,833,816</font></b></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='border-bottom:double black 2.25pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>$</font></b></p> </td>
        <td width="57" valign=bottom style='border-bottom: double black 2.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>&#151;</font></b></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='border-bottom: double black 2.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>$</font></b></p> </td>
        <td width="62" valign=bottom style='border-bottom:double black 2.25pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>13,903,777</font></b></p> </td>
        <td colspan="2" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><u><b><font size=2>Note H &#150; Intangibles </font></b></u><font size=2>&nbsp;</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Patents are recorded at cost and are amortized using the straight-line method over the lives of the patents. Technology and licenses are recorded at cost and are generally amortized on a straight-line basis over periods ranging from 5 to 17 years. Non-compete agreements and customer relationships are being amortized using the straight-line method over a period of 5 years. Trademarks are not amortized as their lives are deemed to be indefinite. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The gross carrying amount and accumulated amortization of amortizable intangible assets: </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="663" style='margin-left:0pt;border-collapse:collapse'>
    <tr style='height:63.05pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:63.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:63.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Industrial</font></b></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Hardware</font></b></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Segment</font></b></p> </td>
        <td width="99" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:63.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Security</font></b></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Products</font></b></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Segment</font></b></p> </td>
        <td width="94" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:63.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Metal</font></b></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Products</font></b></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Segment</font></b></p> </td>
        <td width="88" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:63.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Total</font></b></p> </td>
        <td width="104" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:63.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Weighted-Average</font></b></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Amortization Period (Years)</font></b></p> </td> </tr>
    <tr style='height:12.15pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2008 Gross Amount:</font></b></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:12.15pt'>
            <p style='margin-left:8.7pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:12.15pt'>
            <p style='margin-left:12.6pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:16.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="104" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:23.4pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:23.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Patents and developed            </font></p>
<p style='margin-left:4.5pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>technology</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:23.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$   2,699,153</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:23.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$   1,103,032</font></p> </td>
        <td width="94" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:23.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$   82,747</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:23.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$ 3,884,932</font></p> </td>
        <td width="104" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:23.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0in;margin-bottom:0in'><b><font size=2>15.7</font></b></p> </td> </tr>
    <tr style='height:12.15pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Customer relationships</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>45,825</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:12.6pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>1,921,811</font></p> </td>
        <td width="94" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:16.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,967,636</font></p> </td>
        <td width="104" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5.0</font></b></p> </td> </tr>
    <tr style='height:12.9pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Non-compete agreements</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>30,000</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:12.6pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>90,735</font></p> </td>
        <td width="94" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:16.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>120,735</font></p> </td>
        <td width="104" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5.0</font></b></p> </td> </tr>
    <tr style='height:12.9pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=2>Other</font></p> </td>
        <td width="99" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-</font></p> </td>
        <td width="99" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:12.6pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>3,941</font></p> </td>
        <td width="94" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:16.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-</font></p> </td>
        <td width="88" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,941</font></p> </td>
        <td width="104" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0in'><b><font size=2>-</font></b></p> </td> </tr>
    <tr style='height:13.0pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:13.0pt'>
            <p style='margin-left:4.2pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom: 0in'><font size=2>Total Gross Intangibles</font></p> </td>
        <td width="99" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:13.0pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>$   2,774,978</font></p> </td>
        <td width="99" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:13.0pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$   3,119,519</font></p> </td>
        <td width="94" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:13.0pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$    82,747</font></p> </td>
        <td width="88" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:13.0pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>$ 5,977,244</font></p> </td>
        <td width="104" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:13.0pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:1.5pt;margin-bottom:0in'><b><font size=2>11.7</font></b></p> </td> </tr>
    <tr style='height:12.15pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:12.15pt'>
            <p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:12.15pt'>
            <p style='margin-left:12.6pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:12.15pt'>
            <p style='margin-left:16.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:12.15pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="104" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><font size=2>- 7 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="663" style='margin-left:0pt;border-collapse:collapse'>
    <tr style='height:25.05pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:25.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:25.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Industrial</font></b></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Hardware</font></b></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Segment</font></b></p> </td>
        <td width="99" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:25.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Security</font></b></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Products</font></b></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Segment</font></b></p> </td>
        <td width="94" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:25.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Metal</font></b></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Products</font></b></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Segment</font></b></p> </td>
        <td width="88" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:25.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Total</font></b></p> </td>
        <td width="104" valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:25.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:25.05pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:25.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2008 Accumulated </font></b></p>
<p style='margin-left:4.5pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Amortization:</font></b></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:25.05pt'>
            <p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:25.05pt'>
            <p style='margin-left:12.6pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:25.05pt'>
            <p style='margin-left:16.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:25.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="104" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:25.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:25.05pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:25.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Patents and developed            </font></p>
<p style='margin-left:4.5pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>technology</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:25.05pt'>
            <p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p>
<p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>$   1,083,557</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:25.05pt'>
            <p style='margin-left:12.6pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p>
<p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>$      281,644</font></p> </td>
        <td width="94" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:25.05pt'>
            <p style='margin-left:16.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p>
<p style='margin-left:16.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>$   68,739</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:25.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$ 1,433,940</font></p> </td>
        <td width="104" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:25.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.9pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Customer relationships</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>2,291</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:12.6pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>573,445</font></p> </td>
        <td width="94" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:16.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>575,736</font></p> </td>
        <td width="104" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.9pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=2>Non-compete agreements</font></p> </td>
        <td width="99" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>1,500</font></p> </td>
        <td width="99" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:12.6pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>61,502</font></p> </td>
        <td width="94" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:16.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-</font></p> </td>
        <td width="88" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>63,002</font></p> </td>
        <td width="104" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.15pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom:0pt'><font size=2>Accumulated Amortization</font></p> </td>
        <td width="99" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>$   1,087,348</font></p> </td>
        <td width="99" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>$      916,591</font></p> </td>
        <td width="94" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$   68,739</font></p> </td>
        <td width="88" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$ 2,072,678</font></p> </td>
        <td width="104" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:1.5pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:11.4pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:11.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt; height:11.4pt'>
            <p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt; height:11.4pt'>
            <p style='margin-left:12.6pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt; height:11.4pt'>
            <p style='margin-left:16.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt; height:11.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="104" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:11.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:22.9pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:22.9pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:1.5pt;margin-bottom:0pt'><b><font size=2>Net March 29, 2008 per Balance Sheet</font></b></p> </td>
        <td width="99" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:22.9pt'>
            <p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p>
<p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>$   1,687,630</font></b></p> </td>
        <td width="99" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:22.9pt'>
            <p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p>
<p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>$   2,202,928 </font></b></p> </td>
        <td width="94" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:22.9pt'>
            <p style='margin-left:16.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p>
<p style='margin-left:16.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>$   14,008</font></b></p> </td>
        <td width="88" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:22.9pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$ 3,904,566</font></b></p> </td>
        <td width="104" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:22.9pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:1.5pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="663" style='margin-left:0pt;border-collapse:collapse'>
    <tr style='height:63.05pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:63.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:63.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Industrial</font></b></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Hardware</font></b></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Segment</font></b></p> </td>
        <td width="99" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:63.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Security</font></b></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Products</font></b></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Segment</font></b></p> </td>
        <td width="94" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:63.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Metal</font></b></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Products</font></b></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Segment</font></b></p> </td>
        <td width="88" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:63.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Total</font></b></p> </td>
        <td width="104" valign=bottom style='border-bottom: solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:63.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Weighted-Average</font></b></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Amortization Period (Years)</font></b></p> </td> </tr>
    <tr style='height:12.15pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007 Gross Amount:</font></b></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:12.15pt'>
            <p style='margin-left:8.7pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:12.15pt'>
            <p style='margin-left:12.6pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:16.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="104" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:23.4pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:23.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Patents and developed            </font></p>
<p style='margin-left:4.5pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>technology</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:23.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$   2,738,893</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:23.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$   1,088,592</font></p> </td>
        <td width="94" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:23.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$   82,747</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:23.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$ 3,910,232</font></p> </td>
        <td width="104" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:23.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p>
<p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0in;margin-bottom:0in'><b><font size=2>15.7</font></b></p> </td> </tr>
    <tr style='height:12.15pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Customer relationships</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:12.6pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>1,921,811</font></p> </td>
        <td width="94" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:16.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,921,811</font></p> </td>
        <td width="104" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5.0</font></b></p> </td> </tr>
    <tr style='height:12.9pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Non-compete agreements</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:12.6pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>90,735</font></p> </td>
        <td width="94" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:16.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>90,735</font></p> </td>
        <td width="104" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>5.0</font></b></p> </td> </tr>
    <tr style='height:12.9pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=2>Other</font></p> </td>
        <td width="99" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-</font></p> </td>
        <td width="99" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:12.6pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>3,941</font></p> </td>
        <td width="94" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:16.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-</font></p> </td>
        <td width="88" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,941</font></p> </td>
        <td width="104" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0in'><b><font size=2>-</font></b></p> </td> </tr>
    <tr style='height:13.0pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:13.0pt'>
            <p style='margin-left:4.2pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom: 0in'><font size=2>Total Gross Intangibles</font></p> </td>
        <td width="99" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:13.0pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$   2,738,893</font></p> </td>
        <td width="99" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:13.0pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$   3,105,079</font></p> </td>
        <td width="94" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:13.0pt'>
            <p style='margin-left:16.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>$   82,747</font></p> </td>
        <td width="88" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:13.0pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>$ 5,926,719</font></p> </td>
        <td width="104" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:13.0pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:1.5pt;margin-bottom:0in'><b><font size=2>11.8</font></b></p> </td> </tr>
    <tr style='height:12.15pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:12.15pt'>
            <p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:12.15pt'>
            <p style='margin-left:12.6pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:12.15pt'>
            <p style='margin-left:16.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:12.15pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="104" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:25.05pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:25.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>2007 Accumulated </font></b></p>
<p style='margin-left:4.5pt;text-indent:14.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><b><font size=2>Amortization:</font></b></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:25.05pt'>
            <p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:25.05pt'>
            <p style='margin-left:12.6pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:25.05pt'>
            <p style='margin-left:16.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:25.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="104" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:25.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:25.05pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:25.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Patents and developed            </font></p>
<p style='margin-left:4.5pt;text-indent:13.5pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>technology</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:25.05pt'>
            <p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p>
<p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>$   1,077,608</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:25.05pt'>
            <p style='margin-left:12.6pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p>
<p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>$      263,255</font></p> </td>
        <td width="94" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:25.05pt'>
            <p style='margin-left:16.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p>
<p style='margin-left:16.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>$   67,501</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:25.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$ 1,408,364</font></p> </td>
        <td width="104" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:25.05pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.9pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Customer relationships</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:12.6pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>477,495</font></p> </td>
        <td width="94" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:16.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-</font></p> </td>
        <td width="88" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>477,495</font></p> </td>
        <td width="104" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.9pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:justify;margin-top:1.0pt;margin-bottom:0pt'><font size=2>Non-compete agreements</font></p> </td>
        <td width="99" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-</font></p> </td>
        <td width="99" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:12.6pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>59,522</font></p> </td>
        <td width="94" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:16.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-</font></p> </td>
        <td width="88" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>59,522</font></p> </td>
        <td width="104" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.9pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.15pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:justify;margin-top:1.5pt;margin-bottom:0pt'><font size=2>Accumulated Amortization</font></p> </td>
        <td width="99" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$   1,077,608</font></p> </td>
        <td width="99" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>$      800,272</font></p> </td>
        <td width="94" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:16.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>$   67,501</font></p> </td>
        <td width="88" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$ 1,945,381</font></p> </td>
        <td width="104" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.15pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:11.4pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:11.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt; height:11.4pt'>
            <p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt; height:11.4pt'>
            <p style='margin-left:12.6pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="94" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt; height:11.4pt'>
            <p style='margin-left:16.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="88" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt; height:11.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="104" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:11.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:25.8pt'>
        <td width="179" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:25.8pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:1.5pt;margin-bottom:0pt'><b><font size=2>Net December 29, 2007 per Balance Sheet</font></b></p> </td>
        <td width="99" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:25.8pt'>
            <p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p>
<p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>$   1,661,285</font></b></p> </td>
        <td width="99" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:25.8pt'>
            <p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p>
<p style='margin-left:8.7pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>$   2,304,807 </font></b></p> </td>
        <td width="94" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:25.8pt'>
            <p style='margin-left:16.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p>
<p style='margin-left:16.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>$   15,246</font></b></p> </td>
        <td width="88" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt; height:25.8pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><b><font size=2>$ 3,981,338</font></b></p> </td>
        <td width="104" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:25.8pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><u><b><font size=2>Note I - Retirement Benefit Plans</font></b></u></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The Company has non-contributory defined benefit pension plans covering certain U.S. employees. Plan benefits are generally based upon age at retirement, years of service and, for its salaried plan, the level of compensation. The Company also sponsors unfunded nonqualified supplemental retirement plans that provide certain current and former officers with benefits in excess of limits imposed by federal tax law. The measurement date for the obligations disclosed below is September 30<sup> </sup>of each year.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The Company also provides health care and life insurance for retired salaried employees in the United States who meet specific eligibility requirements. </font></p>

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

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><font size=2>- 8 -</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Significant disclosures relating to these benefit plans for the first quarter of 2008 and 2007 follows:</font></p>

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


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="619" style='border-collapse:collapse'>
    <tr style='page-break-inside:avoid'>
        <td width="225" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="9" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td colspan="5" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Pension Benefits</font></b></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td colspan="5" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Postretirement Benefits</font></b></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="225" valign=top >
            <p style='margin-left:22.5pt;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td>
        <td width="9" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt;  '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><b><font size=2>2008</font></b></p> </td>
        <td width="16" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  '>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>2007</font></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style=' border-bottom:solid black 1.0pt;  '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><b><font size=2>2008</font></b></p> </td>
        <td width="21" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  '>
            <p style='margin-left:0in;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><font size=2>2007</font></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="225" valign=top >
            <p style='margin-left:26.65pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Service cost</font></p> </td>
        <td width="9" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>$</font></b></p> </td>
        <td width="62" valign=bottom style='border-top:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>455,039</font></b></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="62" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>442,782</font></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>$</font></b></p> </td>
        <td width="68" valign=bottom style='border-top:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>25,773</font></b></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="68" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>26,268</font></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="225" valign=top >
            <p style='margin-left:26.65pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Interest cost</font></p> </td>
        <td width="9" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="62" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>658,669</font></b></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="62" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>620,500</font></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="68" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>30,170</font></b></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="68" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>30,750</font></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="225" valign=top >
            <p style='margin-left:26.65pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Expected return on plan assets</font></p> </td>
        <td width="9" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="62" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(911,519</font></b></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>)</font></b></p> </td>
        <td width="11" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="62" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(821,718</font></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="68" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(18,789</font></b></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>)</font></b></p> </td>
        <td width="10" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="68" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(19,151</font></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="225" valign=top >
            <p style='margin-left:26.65pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Amortization of prior service cost</font></p> </td>
        <td width="9" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="62" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>51,029</font></b></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="62" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>20,448</font></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="68" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(5,859</font></b></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>)</font></b></p> </td>
        <td width="10" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="68" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(5,972</font></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="225" valign=top >
            <p style='margin-left:26.65pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>Amortization of transition obligation</font></p> </td>
        <td width="9" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="62" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>&#151;</font></b></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="62" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(2,962</font></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>)</font></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="68" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>&#151;</font></b></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="68" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="225" valign=top >
            <p style='margin-left:26.65pt;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=2>Amortization of the net (gain) loss</font></p> </td>
        <td width="9" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="62" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>16,265</font></b></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="11" valign=bottom style='border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="62" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>89,266</font></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="68" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(4,673</font></b></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><b><font size=2>)</font></b></p> </td>
        <td width="10" valign=bottom style='border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="68" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>(4,763</font></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font size=2>)</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="225" valign=top >
            <p style='margin-left:26.65pt;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><font size=2>Net periodic benefit cost</font></p> </td>
        <td width="9" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='border-bottom: double black 2.25pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>$</font></b></p> </td>
        <td width="62" valign=bottom style='border-bottom: double black 2.25pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>269,483</font></b></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="11" valign=bottom style='border-bottom:double black 2.25pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="62" valign=bottom style='border-bottom: double black 2.25pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>348,316</font></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=bottom style='border-bottom: double black 2.25pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>$</font></b></p> </td>
        <td width="68" valign=bottom style='border-bottom: double black 2.25pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>26,622</font></b></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="10" valign=bottom style='border-bottom:double black 2.25pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="68" valign=bottom style='border-bottom: double black 2.25pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>27,132</font></p> </td>
        <td width="16" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The Company&#146;s funding policy with respect to its qualified plans is to contribute at least the minimum amount required by applicable laws and regulations. In 2008, the Company is required to contribute $281,000 into its pension plans, and $161,000 into its postretirement plan. As of March 29, 2008, the Company has made contributions totaling $68,000 to its pension plans and will make the remaining contributions prior to filing its federal income tax return due on September 15, 2008.  As of March 29, 2008, the Company had contributed $45,000 to its postretirement plan and will make the remaining expected payments as required during the year.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The Company has a contributory savings plan under Section 401(k) of the Internal Revenue Code covering substantially all U.S. non-union employees. The plan allows participants to make voluntary contributions of up to 100% of their annual compensation on a pretax basis, subject to IRS limitations. The plan provides for contributions by the Company at its discretion. The Company made contributions of $45,438 in the first quarter of 2008 and $43,776 in the first quarter of 2007</font><font size=2>.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><b><font size=2>Note J &#150; Stock Based Compensation and Stock Options </font></b></u><font size=2>&nbsp;</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The Company has stock option plans for officers, other key employees, and non-employee directors: the 1989, 1995, 1997 and 2000 plans. Options granted under the 1989 plan and incentive stock options granted under the 1995 and 2000 plans must have exercise prices that are not less than 100% of the fair market value of the stock on the dates the options are granted. Restricted stock awards may also be granted to participants under the 1995 and 2000 plans with restrictions determined by the Compensation Committee of the Company&#146;s Board of Directors. Under the 1995, 1997, and 2000 plans, nonqualified stock options granted to participants will have exercise prices determined by the Compensation Committee of the Company&#146;s Board of Directors. No options were granted in 2008 or 2007. No restricted stock was granted in 2008 or 2007.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>As of March 29, 2008, there were 367,500 shares available for future grant under the above noted 2000 plan and there were no shares available for grant from the 1997, 1995 and 1989 plans. As of March 29, 2008, there were 1,019,250 shares of common stock reserved under all option plans for future issuance. </font></p>

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


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="614" style='border-collapse:collapse'>
    <tr style='page-break-inside:avoid'>
        <td width="218" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td colspan="4" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Three Months Ended</font></b><br> <b><font size=2>March 29, 2008</font></b></p> </td>
        <td width="42" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td colspan="4" valign=bottom style=' border-bottom:solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Year Ended</font></b><br> <b><font size=2>December 29, 2007</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="218" valign=top >
            <p style='margin-left:22.5pt;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td>
        <td width="11" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="68" valign=bottom style='border-bottom: solid black 1.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Shares</font></b></p> </td>
        <td width="21" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  '>
            <p style='margin-left:0in;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Weighted - Average Exercise Price</font></b></p> </td>
        <td width="42" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="73" valign=bottom style='border-bottom: solid black 1.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Shares</font></b></p> </td>
        <td width="21" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  '>
            <p style='margin-left:0in;text-indent:0pt;text-align: center;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td colspan="2" valign=bottom style='border-top:solid black 1.0pt; border-left:none;border-bottom:solid black 1.0pt;border-right:none;  '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Weighted - Average Exercise Price</font></b></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="218" valign=top >
            <p style='margin-left:26.65pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Outstanding at beginning of period</font></b></p> </td>
        <td width="11" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="68" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>663,000</font></b></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="42" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="42" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>10.099</font></p> </td>
        <td width="42" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="73" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>1,002,750</font></b></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="36" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="42" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>9.233</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="218" valign=top >
            <p style='margin-left:26.65pt;text-indent:-.25in;text-align:left;margin-top:2pt;margin-bottom:0pt'><b><font size=2>Granted</font></b></p> </td>
        <td width="11" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="68" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>&#151;</font></b></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="42" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="42" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td>
        <td width="42" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="73" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>&#151;</font></b></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="36" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="42" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>&#151;</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="218" valign=top >
            <p style='margin-left:26.65pt;text-indent:-.25in;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><b><font size=2>Exercised</font></b></p> </td>
        <td width="11" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="68" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(11,250</font></b></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><b><font size=2>)</font></b></p> </td>
        <td width="42" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="42" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>10.170</font></p> </td>
        <td width="42" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="73" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>(339,750</font></b></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0in'><b><font size=2>)</font></b></p> </td>
        <td width="36" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="42" valign=bottom style='border-bottom: solid black 1.0pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>7.544</font></p> </td> </tr>
    <tr style='page-break-inside:avoid'>
        <td width="218" valign=top >
            <p style='margin-left:26.65pt;text-indent:-.25in;text-align:left;margin-top:1.5pt;margin-bottom: 0in'><b><font size=2>Outstanding at end of period</font></b></p> </td>
        <td width="11" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="68" valign=bottom style='border-bottom: double black 2.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>651,750</font></b></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="42" valign=bottom style='border-bottom: double black 2.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="42" valign=bottom style='border-bottom: double black 2.25pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>10.098</font></p> </td>
        <td width="42" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="73" valign=bottom style='border-bottom: double black 2.25pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><b><font size=2>663,000</font></b></p> </td>
        <td width="21" valign=bottom >
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="36" valign=bottom style='border-bottom: double black 2.25pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>$</font></p> </td>
        <td width="42" valign=bottom style='border-bottom: double black 2.25pt; '>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:2pt;margin-bottom:0pt'><font size=2>10.099</font></p> </td> </tr></table>
</div>

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

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

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

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

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><font size=2>- 9 -</font></p>

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

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


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="481" style='margin-left:62.55pt;border-collapse:collapse'>
    <tr style='page-break-inside:avoid'>
        <td  colspan="4" valign=top style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>Options Outstanding and Exercisable</font></b></p> </td> </tr>
    <tr >
        <td width="121" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:6.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>&nbsp;</font></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>Range of Exercise Prices</font></b></p> </td>
        <td width="150" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>&nbsp;</font></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>Outstanding as of March 29, 2008</font></b></p> </td>
        <td width="97" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>Weighted Average Remaining Contractual Life</font></b></p> </td>
        <td width="113" valign=top style='border-bottom:solid black 1.0pt;  padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>&nbsp;</font></p>
<p style='margin-left:4.5pt;text-indent:12.0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><b><font size=2>Weighted Average Exercise Price</font></b></p> </td> </tr>
    <tr >
        <td width="121" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>$  9.33 &#150; $10.20</font></p> </td>
        <td width="150" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>577,500</font></p> </td>
        <td width="97" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>1.7</font></p> </td>
        <td width="113" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:9.0pt;text-align:center;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>9.691</font></p> </td> </tr>
    <tr >
        <td width="121" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>$12.33 &#150; $13.58</font></p> </td>
        <td width="150" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>74,250</font></p> </td>
        <td width="97" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>5.4  </font></p> </td>
        <td width="113" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:3.0pt;text-align:center;margin-top:1.0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>13.264</font></p> </td> </tr>
    <tr >
        <td width="121" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt;line-height:129.6%'><font size=1>&nbsp;</font></p> </td>
        <td width="150" valign=top style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt;line-height:129.6%'><font size=2>651,750</font></p> </td>
        <td width="97" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:1.5pt;margin-bottom:0pt;line-height:129.6%'><font size=2>2.1 </font></p> </td>
        <td width="113" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:3.0pt;text-align:center;margin-top:1.5pt;margin-bottom:0pt;line-height:129.6%'><font size=2>10.098</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>At March 29, 2008, outstanding and exercisable options had an intrinsic value of $3,729,420. The total intrinsic value of stock options exercised in the first quarter of 2008 was $60,300.</font><font color="#FF0000"><font size=2> </font></font><font size=2>The Company recognized a tax benefit of $50,600 resulting from the disqualification of options that were exercised and sold prior to the required holding period.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><b><font size=2>Note K &#150; Income Taxes</font></b></u></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The Company files income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions.  With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years before 2004 and non-U.S. income tax examinations by tax authorities prior to 2001.  </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The total amount of unrecognized tax benefits could increase or decrease within the next twelve months for a number of reasons including the closure of federal, state and foreign tax years by expiration of the statute of limitations and the recognition and measurement considerations under FASB Interpretation No. 48 (&#147;FIN 48&#148;) </font><i><font size=2>Accounting for Uncertainty in Income Taxes and interpretation of FASB Statement No. 109</font></i><font size=2>.  There have been no significant changes to the total amount of unrecognized tax benefits during the three months ended March 29, 2008.  The Company believes that it is reasonably possible that approximately $235,000 of unrecognized tax benefits related to the earnings of its Hong Kong subsidiary will be recognized over the next twelve months.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><u><b><font size=2>Note L &#150; Business Acquisition</font></b></u></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Effective January 11, 2008 the Company acquired certain assets from Auto-Vehicle Parts Company that included a certain product line owned by one of its divisions, the F.A. Neider &nbsp;Company (&#147;Neider&#148;). &nbsp; Neider produces the &#147;footman loop&#148; products, or strap fasteners, which are used to fasten straps, traps, tools, and cargo to a vehicle, container, or trailer. Neider manufactures footman loops used in the following markets:&nbsp;military, aerospace, service body, and trailer. The footman loop product line was integrated into the Company&#146;s Industrial Hardware segment.  The cost of the Neider acquisition was $128,325, inclusive of transaction costs.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The above acquisition has been accounted for using the purchase method.  The acquired business is included in the consolidated operating results of the Company from the date of acquisition.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Neither the actual results nor the pro forma effects of the acquisition of Neider are material to the Company's financial statements.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><font size=2>- 10 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
<b><font size=2>ITEM 2 &#150; MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</font></b></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The following discussion is intended to highlight significant changes in the Company&#146;s financial position and results of operations for the thirteen weeks ended March 29, 2008. The interim financial statements and this Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the Consolidated Financial Statements and Notes thereto for the fiscal year ended December 29, 2007 and the related Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations, both of which are contained in the Company&#146;s Annual Report on Form 10-K for the fiscal year ended December 29, 2007. </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Certain statements set forth in this discussion and analysis of financial condition and results of operations are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. They use such words as &#147;may,&#148; &#147;will,&#148; &#147;expect,&#148; &#147;believe,&#148; &#147;plan&#148; and other similar terminology. These statements reflect management&#146;s current expectations regarding future events and operating performance and speak only as of the date of this release. These forward-looking statements involve a number of risks and uncertainties, and actual future results and trends may differ materially depending on a variety of factors including changing customer preferences, lack of success of new products, loss of customers, competition, increased raw material prices, problems associated with foreign sourcing of parts and products, changes within our
industry segments and in the overall economy, litigation and legislation. In addition, terrorist threats and the possible responses by the U.S. government, the effects on consumer demand, the financial markets, the travel industry, the trucking industry and other conditions increase the uncertainty inherent in forward-looking statements. Forward-looking statements reflect the expectations of the Company at the time they are made, and investors should rely on them only as expressions of opinion about what may happen in the future and only at the time they are made. The Company undertakes no obligation to update any forward-looking statement. Although the Company believes it has an appropriate business strategy and the resources necessary for its operations, future revenue and margin trends cannot be reliably predicted and the Company may alter its business strategies to address changing conditions. </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>In addition, the Company makes estimates and assumptions that may materially affect reported amounts and disclosures. These relate to valuation allowances for accounts receivable and for excess and obsolete inventories, accruals for pensions and other postretirement benefits (including forecasted future cost increases and returns on plan assets), provisions for depreciation (estimating useful lives), uncertain tax positions, and, on occasion, accruals for contingent losses.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=3>Overview</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Sales in the first quarter of 2008 decreased 37% compared to the prior year, due to the completion of one-time orders to produce door latching components for a military project to up-armor existing Humvees in the 2007 period.  Excluding the sales from the military contract, sales of our &#147;core&#148; business units decreased 4% in the first quarter.</font><font color="#FF0000"><font size=2>  </font></font><font size=2>The Industrial Hardware segment sales decreased approximately 58% in the first quarter of 2008 compared to the first quarter of 2007, reflecting the military sales completed in the 2007 quarter. In addition, the Security Products segment experienced a 0.5% decrease and the Metal Products segment experienced a 27% increase in sales compared to the prior year period.  For the full year 2008, the Company is projecting that &#147;core&#148; sales will exceed the 2007 &#147;core&#148; sales
level, excluding the 2007 military project impact. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Gross margin as a percentage of sales for the three months ended March 29, 2008 was 20.5% compared to 30.6% in the comparable period a year ago. Higher sales volume in the first quarter of 2007 from the contract to supply the door latching components for a military project to up-armor existing Humvees, resulted in better utilization of production capacity in 2007 in the Industrial Hardware segment and was the primary reason for the decrease in gross margin in 2008 compared to the prior year quarter.  The Security Products and Metal Products segments of the business experienced increases in gross margin as a percentage of sales of 0.7% and 14.0%, respectively. While the Security Products segment was comparable year over year, the increase in the Metal Products segment was primarily the result of price increases to customers.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><font size=2>- 11 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>
<font size=2>Raw material prices have continued to increase during the first quarter of 2008, mainly for plastic resin, hot and cold rolled steel and scrap iron. The Company is recovering these increases from our customers, wherever possible. Currently, there is no indication that the Company will not be able to obtain supplies of all the materials that it requires. Raw material costs will continue to have a negative impact on gross margin unless prices for raw materials stabilize.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Cash flow from operations in the first quarter of 2008 has declined compared to the same period in 2007, mainly due to the increased sales volume in 2007 from the military up-armor project which benefited the prior year quarter.  In addition, the Company selectively increased inventories in certain product lines to meet demand.  The Company&#146;s line of credit, along with controlling discretionary expenditures, should provide sufficient cash flow to enable the Company to meet all its existing obligations. </font></p>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>A more detailed analysis of the Company&#146;s results of operations and financial condition follows:</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=3>Results of Operations  </font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The following table shows, for the periods indicated, selected line items from the condensed consolidated statements of income as a percentage of net sales, by segment:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>


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<table border="0" cellspacing=0 cellpadding=0 width="696" style='margin-left:9.3pt;border-collapse:collapse'>
    <tr style='height:13.5pt'>
        <td width="279" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td colspan="4" valign=top style=' border-bottom:solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0in;margin-bottom:0pt'><b><font size=2>Three Months Ended March 29, 2008</font></b></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="279" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="117" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>Industrial </font></b></p> </td>
        <td width="107" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>Security</font></b></p> </td>
        <td width="102" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>Metal </font></b></p> </td>
        <td width="91" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="279" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td>
        <td width="117" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>Hardware</font></b></p> </td>
        <td width="107" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>Products</font></b></p> </td>
        <td width="102" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>Products</font></b></p> </td>
        <td width="91" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>Total</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="279" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><b><font size=2>Net sales </font></b></p> </td>
        <td width="117" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>100.0%</font></p> </td>
        <td width="107" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>100.0%</font></p> </td>
        <td width="102" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>100.0%</font></p> </td>
        <td width="91" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>100.0%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="279" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><b><font size=2>Cost of products sold </font></b></p> </td>
        <td width="117" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>78.8%</font></p> </td>
        <td width="107" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>76.5%</font></p> </td>
        <td width="102" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>91.2%</font></p> </td>
        <td width="91" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>79.5%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="279" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><b><font size=2>Gross margin </font></b></p> </td>
        <td width="117" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>21.2%</font></p> </td>
        <td width="107" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>23.5%</font></p> </td>
        <td width="102" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>8.8%</font></p> </td>
        <td width="91" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>20.5%</font></p> </td> </tr>
    <tr style='height:6.0pt'>
        <td width="279" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:6.0pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="117" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:6.0pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="107" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:6.0pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="102" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:6.0pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="91" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:6.0pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="279" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><b><font size=2>Selling and administrative expense </font></b></p> </td>
        <td width="117" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>14.1%</font></p> </td>
        <td width="107" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>15.8%</font></p> </td>
        <td width="102" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>9.6%</font></p> </td>
        <td width="91" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>14.2%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="279" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><b><font size=2>Operating profit </font></b></p> </td>
        <td width="117" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>7.1%</font></p> </td>
        <td width="107" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>7.7%</font></p> </td>
        <td width="102" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-0.8%</font></p> </td>
        <td width="91" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>6.3%</font></p> </td> </tr>
    <tr style='height:11.25pt'>
        <td width="279" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:11.25pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="117" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:11.25pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="107" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:11.25pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="102" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:11.25pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="91" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:11.25pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="279" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td>
        <td colspan="4" valign=top style=' border-bottom:solid black 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0in;margin-bottom:0pt'><b><font size=2>Three Months Ended March 31, 2007</font></b></p>
<p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="279" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="117" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>Industrial </font></b></p> </td>
        <td width="107" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>Security</font></b></p> </td>
        <td width="102" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>Metal </font></b></p> </td>
        <td width="91" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="279" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="117" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>Hardware</font></b></p> </td>
        <td width="107" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>Products</font></b></p> </td>
        <td width="102" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>Products</font></b></p> </td>
        <td width="91" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>Total</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="279" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><b><font size=2>Net sales </font></b></p> </td>
        <td width="117" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>100.0%</font></p> </td>
        <td width="107" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>100.0%</font></p> </td>
        <td width="102" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>100.0%</font></p> </td>
        <td width="91" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>100.0%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="279" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><b><font size=2>Cost of products sold </font></b></p> </td>
        <td width="117" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>62.7%</font></p> </td>
        <td width="107" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>77.2%</font></p> </td>
        <td width="102" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>105.2%</font></p> </td>
        <td width="91" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>69.4%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="279" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><b><font size=2>Gross margin </font></b></p> </td>
        <td width="117" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>37.3%</font></p> </td>
        <td width="107" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>22.8%</font></p> </td>
        <td width="102" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-5.2%</font></p> </td>
        <td width="91" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>30.6%</font></p> </td> </tr>
    <tr style='height:5.25pt'>
        <td width="279" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.25pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="117" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.25pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="107" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.25pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="102" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.25pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="91" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:5.25pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="279" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><b><font size=2>Selling and administrative expense </font></b></p> </td>
        <td width="117" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>7.9%</font></p> </td>
        <td width="107" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>15.0%</font></p> </td>
        <td width="102" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>8.9%</font></p> </td>
        <td width="91" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>9.8%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="279" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><b><font size=2>Operating profit </font></b></p> </td>
        <td width="117" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:3.0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>29.4%</font></p> </td>
        <td width="107" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>7.8%</font></p> </td>
        <td width="102" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-14.1%</font></p> </td>
        <td width="91" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>20.8%</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><font size=2>- 12 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
<!-- EEDocs PBStart-->
<HR noshade align="center" width="100%" size="2">
<p style='page-break-before:always'></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>
<font size=2>The following table shows the amount of change for the first quarter of 2008 compared to the first quarter of 2007 in sales, cost of products sold, gross margin, selling and administrative expenses and operating profit, by segment (dollars in thousands):</font></p>

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


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="696" style='margin-left:9.3pt;border-collapse:collapse'>
    <tr style='height:12.75pt'>
        <td width="273" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="116" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>Industrial </font></b></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>Security</font></b></p> </td>
        <td width="105" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>Metal </font></b></p> </td>
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:13.5pt'>
        <td width="273" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:13.5pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="116" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>Hardware</font></b></p> </td>
        <td width="99" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>Products</font></b></p> </td>
        <td width="105" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>Products</font></b></p> </td>
        <td width="103" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:13.5pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>Total</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="273" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><b><font size=2>Net sales </font></b></p> </td>
        <td width="116" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:24.75pt;text-align:right;margin-top:0in;margin-bottom:0pt'><b><font size=2>$ (20,250)</font></b></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:27.75pt;text-align:right;margin-top:0in;margin-bottom:0pt'><b><font size=2>$   (78) </font></b></p> </td>
        <td width="105" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:30.75pt;text-align:right;margin-top:0in;margin-bottom:0pt'><b><font size=2>$    930</font></b></p> </td>
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt;height:12.75pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:right;margin-top:0in;margin-bottom:0pt'><b><font size=2>$(19,398) </font></b></p> </td> </tr>
    <tr style='height:10.0pt'>
        <td width="273" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.0pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="116" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.0pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.0pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="105" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.0pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.0pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="273" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:25.5pt;text-align:left;margin-top:0in;margin-bottom:0in'><b><font size=2>Volume </font></b></p> </td>
        <td width="116" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-60.1%</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-2.6%</font></p> </td>
        <td width="105" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>1.4%</font></p> </td>
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-40.6%</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="273" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:25.5pt;text-align:left;margin-top:0in;margin-bottom:0in'><b><font size=2>Prices </font></b></p> </td>
        <td width="116" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-0.4%</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>0.7%</font></p> </td>
        <td width="105" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>19.6%</font></p> </td>
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>1.2%</font></p> </td> </tr>
    <tr style='height:15.0pt'>
        <td width="273" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:4.5pt;text-indent:25.5pt;text-align:left;margin-top:0in;margin-bottom:0in'><b><font size=2>New products </font></b></p> </td>
        <td width="116" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:4.5pt;text-indent:12.0pt;text-align:right;margin-top:0in;margin-bottom:0in'><u><font size=2>2.3%</font></u><u></u></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:4.5pt;text-indent:6.0pt;text-align:right;margin-top:0in;margin-bottom:0in'><u><font size=2>1.3%</font></u><u></u></p> </td>
        <td width="105" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:4.5pt;text-indent:6.0pt;text-align:right;margin-top:0in;margin-bottom:0in'><u><font size=2>6.4%</font></u><u></u></p> </td>
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:4.5pt;text-indent:9.0pt;text-align:right;margin-top:0in;margin-bottom:0in'><u><font size=2>2.3%</font></u><u></u></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="273" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="116" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-58.2%</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-0.6%</font></p> </td>
        <td width="105" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>27.4%</font></p> </td>
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-37.1%</font></p> </td> </tr>
    <tr style='height:10.0pt'>
        <td width="273" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.0pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="116" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.0pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.0pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="105" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.0pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.0pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="273" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><b><font size=2>Cost of products sold</font></b></p> </td>
        <td width="116" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:22.5pt;text-align:right;margin-top:0in;margin-bottom:0pt'><b><font size=2>$ (10,344)</font></b></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:24.75pt;text-align:right;margin-top:0in;margin-bottom:0pt'><b><font size=2>$ (161) </font></b></p> </td>
        <td width="105" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:30.75pt;text-align:right;margin-top:0in;margin-bottom:0pt'><b><font size=2>$   372</font></b></p> </td>
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:right;margin-top:0in;margin-bottom:0pt'><b><font size=2>$(10,133)</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="273" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="116" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-47.4%</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-1.5%</font></p> </td>
        <td width="105" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>10.5%</font></p> </td>
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-27.9%</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="273" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="116" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="105" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="273" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><b><font size=2>Gross margin </font></b></p> </td>
        <td width="116" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:16.5pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>$   (9,906) </font></b></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:19.5pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>$      83 </font></b></p> </td>
        <td width="105" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:24.75pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>$   558</font></b></p> </td>
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:16.5pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>$ (9,265) </font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="273" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="116" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-76.3%</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>2.6%</font></p> </td>
        <td width="105" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>316.2%</font></p> </td>
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-57.8%</font></p> </td> </tr>
    <tr style='height:10.0pt'>
        <td width="273" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.0pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="116" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.0pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.0pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="105" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.0pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.0pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="273" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><b><font size=2>Selling and administrative expenses</font></b></p> </td>
        <td width="116" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:16.5pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>$      (703) </font></b></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:19.5pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>$    112 </font></b></p> </td>
        <td width="105" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:24.75pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>$   115</font></b></p> </td>
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:16.5pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>$    (476) </font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="273" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="116" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-25.5%</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>5.3%</font></p> </td>
        <td width="105" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>37.8%</font></p> </td>
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-9.2%</font></p> </td> </tr>
    <tr style='height:10.1pt'>
        <td width="273" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="116" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="105" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:10.1pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="273" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><b><font size=2>Operating profit </font></b></p> </td>
        <td width="116" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:16.5pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>$   (9,203)</font></b></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:19.5pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>$   (29) </font></b></p> </td>
        <td width="105" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:24.75pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>$  443 </font></b></p> </td>
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:16.5pt;text-align:right;margin-top:0in;margin-bottom:0in'><b><font size=2>$ (8,789)</font></b></p> </td> </tr>
    <tr style='height:12.75pt'>
        <td width="273" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:0in;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="116" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-89.9%</font></p> </td>
        <td width="99" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-2.6%</font></p> </td>
        <td width="105" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>92.4%</font></p> </td>
        <td width="103" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.75pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:right;margin-top:0in;margin-bottom:0in'><font size=2>-80.9%</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=3>Industrial Hardware Segment</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Net sales</font></b><font size=2> in the Industrial Hardware segment were down 58.2% in the first quarter of 2008 compared to the prior year quarter. This decrease was due to the fulfillment of orders to produce door latching components for a military project to up-armor existing Humvees in the 2007 period.</font><font color="#FF0000"><font size=2> </font></font><font size=2>New product introductions offset a portion of the decline in sales from completion of that military contract. All of the new products were developed internally for the variety of markets we serve. New products included a center case kit, an outside handle package, a T-handle assembly and grab handles for the military market, rotary locks and a push latch assembly for the distribution market, as well as several new lightweight honeycomb structures for the construction, marine and transportation industries.  Sales volume of existing
products was down in the Industrial Hardware segment primarily due to completion of the military contract in 2007 and decreased sales of &#147;sleeper cabs&#148; for the Class 8 truck market. As noted in the prior year 10-Q, sales of sleeper cabs were up in the first quarter of 2007 in advance of new emission regulations that went into effect March 31, 2007.  The Company expects sales volume of &#147;sleeper cabs&#148; to increase as the year progresses.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Cost of products sold</font></b><font size=2> for the Industrial Hardware segment decreased 47.4% from the first quarter of 2007 to the first quarter of 2008. The primary reason for this reduction was due to manufacturing costs associated with the lower volume of sales in 2008.  In contrast, cost increases were experienced in raw materials and freight charges in the first quarter of 2008, and are projected to increase further as the year progresses.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Gross margin</font></b><font size=2> as a percent of net sales decreased from 37.3% to 21.2% as a direct result of the significant decrease in sales volume from the door latching components for a military project to up-armor existing Humvees which was completed in 2007.  To a lesser extent, gross margin was negatively impacted by increases in raw material and freight costs.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Selling and administrative expenses</font></b><font size=2> decreased 25.5% for the first quarter of 2008 compared to the prior year period primarily due to decreases in payroll and payroll related charges, resulting from completion of the military contract in 2007.  Additionally, this segment benefited from a reduction in the allocation of corporate charges based on the lower sales volume in 2008.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font color="#FF0000"><font size=3>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><font size=2>- 13 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>
<b><font size=3>Security Products Segment</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Net sales</font></b><font size=2> in the Security Products segment were comparable for first quarter of 2008 and 2007.  Sales volume decreased in lock related products in the first quarter of 2008 compared to the prior year quarter. Price increases and sales of new products offset the decline in sales of existing products compared to the prior year quarter.  Sales of new products focused on lock products such as a spring bolt lock, a wing knob lock with a flip-up cover, various motorcycle accessory parts, as well as numerous other products servicing a multitude of markets.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Cost of products sold</font></b><font size=2> for the Security Products segment was down 1.5% in 2008 compared to the first quarter of 2007.</font><font color="#FF0000"><font size=2> </font></font><font size=2>The decrease in cost of products sold was primarily due to the mix of products sold compared to the first quarter of 2007.  The Company expects increased costs in overseas sourced products as the year progresses.  The majority of the lock products sold from this segment are sourced from China.  During the first quarter of 2008 the cost of Asian sourced locks has seen double digit increases in price due to the sharp increase in metal cost and the appreciation in the Chinese currency the RMB.  Although price increases will be passed on to customers where possible, it is not certain that the price increases will be accepted by the customers or the customers may look for alternate sources.  This
unstable condition could have a negative impact on our margins over the balance of the year.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Gross margin</font></b><font size=2> as a percentage of sales increased from 22.8% to 23.5% due to the mix of products sold in 2008 compared to the same period in 2007.  </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Selling and administrative expenses</font></b><font size=2> increased 5.3% from 2007 levels due to increased expenses for advertising and a change in the allocation of corporate charges based on sales volume.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=3>Metal Products Segment</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Net sales</font></b><font size=2> in the Metal Products segment were up 27.4% in the first quarter of 2008 as compared to the prior year period.  Sales of mining products were up 31.7% in 2008 compared to the first quarter of 2007 and sales of contract castings increased 21.9% from the prior year levels. Sales of mining products increased to both the U.S. and Canadian mining markets over the prior year first quarter.  Additionally, sales of contract castings have been bolstered by favorable exchange rates. New product sales included a cablehead used in underground mining. </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Cost of products sold</font></b><font size=2> increased 10.5% in the first quarter of 2008 compared to the same period in 2007. The increase is attributable to increased costs for supplies, tools, equipment maintenance and payroll and payroll related charges.  At the end of the first quarter 2008, there was a substantial increase in the cost of scrap metal, the main ingredient used in the making of malleable and ductile iron, which could negatively impact the profit margins over the remainder of 2008.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Gross margin</font></b><font size=2> as a percentage of net sales increased from -5.2% in the first quarter of 2007 to 8.8% for the 2008 quarter. The increase is due to the mix of products produced, higher sales volume and cost reduction projects.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Selling and administrative expenses</font></b><font size=2> were up 37.8% in 2008 compared to the same period in 2007. The increase was related to increases in payroll and payroll related charges and higher sales commissions resulting from the higher sales volume, as well an increase in the allocation of corporate charges based on higher sales volume in 2008.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=3>Other Items</font></b></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Interest expense</font></b><font size=2> decreased 26.6% in the first quarter of 2008 compared to the prior year period due to the lower debt balances, lower interest rates, and borrowings under the revolving credit portion of the loan agreement obtained in the 2007 first quarter to fund interim working capital needs at that time for the aforementioned military contract.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Other income</font></b><font size=2> increased 38.4% from the first quarter of 2007 to the 2008 first quarter due to higher cash balances in the Company&#146;s cash management program, which resulted in higher interest income.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><font size=2>- 14 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>Income taxes</font></b><font size=2> decreased in line with the lower earnings level. The effective tax rate in the first quarter of 2008 was 33.5% compared to 35.6% in the first quarter of 2007. The decrease in the effective tax rate is the result of a change in the mix of U.S. and foreign income, as well as a change in the mix of U.S. earnings in states with lower income tax rates.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=3>Liquidity and Sources of Capital</font></b></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The Company used $75,000 in cash in operations for the first three months of 2008 compared to the generation of $3.1 million in cash for the same period in 2007. The change in cash flows was the result of changes in the level of sales related to the Company&#146;s military contract in 2007 and the associated timing differences for collections of accounts receivable and payments of liabilities and changes in inventories. Cash flow from operations coupled with cash on hand at the beginning of the year were sufficient to fund capital expenditures, debt service, incentive payments, contributions to the Company&#146;s pension plans, and dividend payments. The Company did not utilize the line of credit during the first quarter of 2008. During the first quarter of 2007, the maximum balance outstanding on the line of credit was approximately $5.3 million; however, the line was completely paid at the end of the period.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Additions to property, plant and equipment were $700,000 during the first three months of 2008 versus $787,000 for the comparable period in the prior year. Total capital expenditures for 2008 are estimated to be in the range of $2.5 million to $3.0 million.  There are no outstanding commitments for these estimated capital expenditures.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Total inventories as of March 29, 2008 were $31.7 million, compared to $30.5 million at year-end 2007. The inventory turnover ratio of 3.3 turns at the end of the first quarter was lower than both the prior year first quarter and year-end 2007 ratio of 5.4 and 3.9 turns, respectively. The change is related to the military contract which was completed during the first quarter of 2007. Accounts receivable increased by $627,000 from year-end 2007, but declined $7.3 million from the first quarter of Fiscal 2007.  The decline from the first quarter of 2007 was primarily related to the military contract which was completed during the period. The average days sales in accounts receivable for the first quarter of 2008 at 54 days was comparable to the first quarter of 2007 at 47 days and year end 2007 at 52 days.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Cash flow from operating activities and funds available under the revolving credit portion of the Company&#146;s loan agreement are expected to be sufficient to cover future foreseeable working capital requirements.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>ITEM 3 &#150; QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</font></b></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>There have been no material changes in market risk from what was reported in the 2007 Annual Report on Form 10-K.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>ITEM 4 &#150; CONTROLS AND PROCEDURES</font></b></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Evaluation of Disclosure Controls and Procedures </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>An evaluation was performed under the supervision and with the participation of the Company&#146;s management, including the Chief Executive Officer (&#147;CEO&#148;) and Chief Financial Officer (&#147;CFO&#148;), of the effectiveness of the design and operation of the Company&#146;s disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, the Company&#146;s management, including the CEO and CFO, concluded that the Company&#146;s disclosure controls and procedures were effective as of the end of the period covered by this report.</font><font size=2> </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The Company believes that a controls system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the controls system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected. The Company&#146;s disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives, and the CEO and CFO have concluded that these controls and procedures are effective at the &#147;reasonable assurance&#148; level. </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><font size=2>- 15 -</font></p>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>During the period covered by this report, there have been no significant changes in the Company&#146;s internal control over financial reporting or in other factors that have materially affected, or are reasonably likely to materially affect, the Company&#146;s internal controls. </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>PART II &#150; OTHER INFORMATION</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=1>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>ITEM 1 &#150; LEGAL PROCEEDINGS</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>The Company is currently undergoing investigation by the U.S. Department of Environmental Protection and N.Y. Department of Environmental Conservation for various anonymous complaints regarding its metal castings facility. The Company recorded a contingency reserve of $250,000 in December 2007 for settlement of this matter. Based on current information available, the Company believes this matter will be settled for $250,000 during 2008. </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>There are no other legal proceedings, other than ordinary routine litigation incidental to the Company&#146;s business, to which either the Company or any of its subsidiaries is a party or to which any of their property is the subject.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>ITEM 1A &#150; RISK FACTORS</font></b></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>There have been no material changes in risk factors from what was reported in the 2007 Annual Report on Form 10-K.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>ITEM 2 &#150; UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS </font></b></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>There have been no sales of unregistered securities by the Company or purchases of registered equity securities by the Company during the period covered by this report.</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>ITEM 3 &#150; DEFAULTS UPON SENIOR SECURITIES</font></b></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>None</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><b><font size=2>ITEM 4 &#150; SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS </font></b></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.38in;text-align:justify;'><font size=2>The Registrant held its Annual Meeting of the Stockholders at The Eastern Company, Naugatuck, Connecticut on Wednesday, the twenty-third day of April, 2008. The matters voted on and the voting results were:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'><font color="#FF0000"><font size=1>&nbsp;</font></font></p>


<div align=left>

<table border="0" cellspacing=0 cellpadding=0 width="652" style='margin-left:32.7pt;border-collapse:collapse'>
    <tr >
        <td width="34" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td>
        <td width="282" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>FOR</font></p> </td>
        <td width="16" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="93" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>AGAINST</font></p> </td>
        <td width="16" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="118" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:4.5pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="34" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1)</font></p> </td>
        <td width="282" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Election of John W. Everets as a director for a three-year term expiring in the year 2011:</font></p> </td>
        <td width="16" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:23.25pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0in;text-indent:3.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5,272,061</font></p> </td>
        <td width="16" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="93" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:29.25pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0in;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>117,120</font></p> </td>
        <td width="16" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="118" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:.1in'>
        <td width="34" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="282" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="93" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="118" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:37.35pt'>
        <td width="34" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:37.35pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="282" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:37.35pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Election of Leonard F. Leganza as a director for a three-year term expiring in the year 2011:</font></p> </td>
        <td width="16" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:37.35pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:37.35pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p>
<p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>4,575,848</font></p> </td>
        <td width="16" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:37.35pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="93" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:37.35pt'>
            <p style='margin-left:0in;text-indent:9.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p>
<p style='margin-left:0in;text-indent:12.0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>813,333</font></p> </td>
        <td width="16" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:37.35pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="118" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:37.35pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:.1in'>
        <td width="34" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="282" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="93" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="118" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="34" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="282" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Continuing Directors:</font></p>
<p style='margin-left:13.5pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Charles W. Henry</font></p>
<p style='margin-left:13.5pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>David C. Robinson</font></p>
<p style='margin-left:13.5pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Donald S. Tuttle III</font></p> </td>
        <td width="16" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="93" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="118" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:.1in'>
        <td width="34" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="282" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="93" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="118" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.1in'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="34" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td>
        <td width="282" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom: 0in'><font size=1>&nbsp;</font></p> </td>
        <td width="16" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>FOR</font></p> </td>
        <td width="16" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="93" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>AGAINST</font></p> </td>
        <td width="16" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:1.0pt;margin-bottom:0in'><font size=1>&nbsp;</font></p> </td>
        <td width="118" valign=top style='border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>ABSTENTION </font></p> </td> </tr>
    <tr >
        <td width="34" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2)</font></p> </td>
        <td width="282" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Ratification of appointment of UHY LLP as independent registered public accounting firm:</font></p> </td>
        <td width="16" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="78" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:23.25pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p>
<p style='margin-left:0in;text-indent:1.5pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>5,357,531</font></p> </td>
        <td width="16" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="93" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:29.25pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p>
<p style='margin-left:0in;text-indent:15.0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>12,981</font></p> </td>
        <td width="16" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="118" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:38.25pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>&nbsp;</font></p>
<p style='margin-left:0in;text-indent:24.0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>18,668</font></p> </td> </tr></table>
</div>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=1>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><font size=2>- 16 -</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Under Connecticut law, an abstention or broker non-vote is considered to be present for purposes of determining a quorum, but is not deemed to be a vote cast. As a result, abstentions and broker non-votes are not included in the tabulation of the voting results on the election of directors or the other matters acted upon at the Annual Meeting. </font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>ITEM 5 &#150; OTHER INFORMATION</font></b></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>None</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>ITEM 6 &#150; EXHIBITS</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:1in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.6in;text-align:justify;'><font size=2>31) Certifications required by Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</font></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.6in;text-align:justify;'><font size=2>32) Certifications pursuant to Rule 13a-14(b) and 18 USC 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.6in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.6in;text-align:justify;'><font size=2>99(1)) The Registrant&#146;s Annual Report on Form 10-K for the fiscal year ended December 29, 2007 is incorporated herein by reference.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.6in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.6in;text-align:justify;'><font size=2>99(2)) Form 8-K filed on April 23, 2008 setting forth the press release reporting the Company&#146;s earnings for the quarter ended March 29, 2008 is incorporated herein by reference.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.6in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font color="#FF0000"><font size=2>&nbsp;</font></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><U><font SIZE=2>SIGNATURES</font></U></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.</font></p>

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


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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><U><font SIZE=2>THE EASTERN COMPANY</font></U><u></u></p> </td> </tr>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>(Registrant)</font></p>
<p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>DATE:  </font><u><font size=2>April 30, 2008</font></u></p> </td>
        <td width="413" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>/s/Leonard F. Leganza</font></u><font size=2>_____</font></p> </td> </tr>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="413" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Leonard F. Leganza</font></p>
<p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Chairman, President and Chief Executive Officer</font></p> </td> </tr>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="413" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>DATE:  </font><u><font size=2>April 30, 2008</font></u></p> </td>
        <td width="413" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>/s/John L. Sullivan III</font></u><font size=2>______</font></p> </td> </tr>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="413" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>John L. Sullivan III</font></p>
<p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Vice President and Chief Financial Officer</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><font size=2>- 17 -</font></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:right;'><U><font SIZE=2>EXHIBIT 31</font></U></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><U><font SIZE=2>CERTIFICATIONS</font></U></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>I, Leonard F. Leganza, certify that:</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
        <td  valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>I have reviewed this quarterly report on Form 10-Q of The Eastern Company;</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The registrant&#146;s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>a)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.75in;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>b)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="24" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>c)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>d)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>disclosed in this report any change in the registrant&#146;s internal control over financial reporting that occurred during the registrant&#146;s most recent fiscal quarter (the registrant&#146;s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting; and</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The registrant&#146;s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant&#146;s auditors and the audit committee of the registrant&#146;s board of directors (or persons performing the equivalent functions):</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>a)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant&#146;s ability to record, process, summarize and report financial information; and</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>b)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal control over financial reporting.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>Dated:</font><u><font size=2>  April 30, 2008</font></u></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>/s/ Leonard F. Leganza</font></u></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>Leonard F. Leganza</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font SIZE=2>CEO</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>
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<U><font SIZE=2>EXHIBIT 31</font></U></p>

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

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><U><font SIZE=2>CERTIFICATIONS</font></U></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>I, John L. Sullivan III, certify that:</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>1.</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>I have reviewed this quarterly report on Form 10-Q of The Eastern Company;</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2.</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>3.</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>4.</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The registrant&#146;s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>a)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.75in;text-align:justify;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>b)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>c)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>d)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>disclosed in this report any change in the registrant&#146;s internal control over financial reporting that occurred during the registrant&#146;s most recent fiscal quarter (the registrant&#146;s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant&#146;s internal control over financial reporting; and</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>5.</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The registrant&#146;s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant&#146;s auditors and the audit committee of the registrant&#146;s board of directors (or persons performing the equivalent functions):</font></p> </td> </tr></table>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>a)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant&#146;s ability to record, process, summarize and report financial information; and</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.75in;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>b)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&#146;s internal control over financial reporting.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>Dated:</font><u><font size=2>  April 30, 2008</font></u></p>

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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><u><font size=2>/s/ John L. Sullivan III</font></u><font size=2> </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font size=2>John L. Sullivan III</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:left;'><font SIZE=2>CFO</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>
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<DESCRIPTION>CERTIFICATION FORM 10-Q
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.5in;text-align:right;'><U><font SIZE=2>EXHIBIT 32</font></U></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>CERTIFICATIONS OF CHIEF EXECUTIVE OFFICER AND</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><font SIZE=2>CHIEF FINANCIAL OFFICER</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><b><font size=2>Pursuant to 18 United States Code Section 1350,</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:center;'><b><font size=2>as adopted pursuant to Section 906 of The Sarbanes-Oxley Act of 2002</font></b></p>

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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, Leonard F. Leganza, the Chief Executive Officer of The Eastern Company (the &#147;Company&#148;) and John L. Sullivan III, the Chief Financial Officer of the Company, hereby certify that, to the best of their knowledge:</font></p>

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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The Company&#146;s Quarterly Report on Form 10-Q for the Period ended March 29, 2008, and to which this certification is attached as Exhibit 32 (the &#147;Periodic Report&#148;) fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, and </font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.5in;text-align:left;'><font size=2>&nbsp;</font></p>


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            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>2)</font></p> </td>
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            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>The information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company.</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:justify;'><font size=2>In Witness Whereof, the undersigned have set their hands hereto as of the 30<sup>th</sup> day of April, 2008.</font></p>

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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>/s/ Leonard F. Leganza</font></u></p> </td> </tr>
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            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="403" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Leonard F. Leganza</font></p>
<p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>CEO</font></p> </td> </tr>
    <tr >
        <td width="293" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="403" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr >
        <td width="293" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="403" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><u><font size=2>/s/ John L. Sullivan III</font></u></p> </td> </tr>
    <tr >
        <td width="293" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="403" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>John L. Sullivan III</font></p>
<p style='margin-left:0in;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font SIZE=2>CFO</font></p> </td> </tr></table>
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:justify;'><font size=2>A signed original of this written statement required by Section 906 has been provided to The Eastern Company and will be retained by The Eastern Company and furnished to the Securities and Exchange Commission or its staff upon request. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:justify;'><font size=2>This certification &#147;accompanies&#148; the Form 10-Q to which it relates, is not deemed filed with the SEC and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Form 10-Q, irrespective of any general incorporation language contained in such filing.) </font></p>

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

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

<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:0.06in;text-align:left;'><font size=2>&nbsp;</font></p>
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