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<SEC-DOCUMENT>0000950148-01-500696.txt : 20010515
<SEC-HEADER>0000950148-01-500696.hdr.sgml : 20010515
ACCESSION NUMBER:		0000950148-01-500696
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20010612
FILED AS OF DATE:		20010514

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			VIRCO MFG CORPORATION
		CENTRAL INDEX KEY:			0000751365
		STANDARD INDUSTRIAL CLASSIFICATION:	PUBLIC BUILDING AND RELATED FURNITURE [2531]
		IRS NUMBER:				951613718
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0131

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		
		SEC FILE NUMBER:	001-08777
		FILM NUMBER:		1633686

	BUSINESS ADDRESS:	
		STREET 1:		2027 HARPERS WAY
		CITY:			TORRANCE
		STATE:			CA
		ZIP:			90501
		BUSINESS PHONE:		3105330474

	MAIL ADDRESS:	
		STREET 1:		P O BOX 44846
		CITY:			LOS ANGELES
		STATE:			CA
		ZIP:			90044
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>v72161def14a.htm
<DESCRIPTION>DEFINITIVE 14A
<TEXT>

<HTML>
<HEAD>
<TITLE>def14a</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<P align="center"><B>SCHEDULE 14A INFORMATION</B>

<P align="center"><B>PROXY STATEMENT PURSUANT TO SECTION 14(a) OF THE<BR>
SECURITIES EXCHANGE ACT OF 1934<BR>
<BR>
(AMENDMENT NO.<U>&nbsp;&nbsp;&nbsp;&nbsp;</U>)</B>

<P>Filed by the Registrant [X]
<P>Filed by a Party other than the Registrant [&nbsp;&nbsp;&nbsp;]
<P>Check the appropriate box:
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
  <TR valign="top">
    <TD width="4%" align="left"><font size="3">[&nbsp;&nbsp;&nbsp;]</font></TD>
    <TD width="96%"><font size="3">Preliminary Proxy Statement</font></TD>
  </TR>
  <TR valign="top">
    <TD width="4%" align="left"><font size="3">[&nbsp;&nbsp;&nbsp;]</font></TD>
    <TD width="96%"><font size="3">Confidential, for Use of the
Commission Only (as permitted by Rule 14a-6(e)(2))</font></TD>
  </TR>
  <TR valign="top">
    <TD width="4%" align="left"><font size="3">[X]</font></TD>
    <TD width="96%"><font size="3">Definitive Proxy Statement</font></TD>
  </TR>
  <TR valign="top">
    <TD width="4%" align="left"><font size="3">[&nbsp;&nbsp;&nbsp;]</font></TD>
    <TD width="96%"><font size="3">Definitive Additional Materials</font></TD>
  </TR>
  <TR valign="top">
    <TD width="4%" align="left"><font size="3">[&nbsp;&nbsp;&nbsp;]</font></TD>
    <TD width="96%"><font size="3">Soliciting Material Pursuant to 240.14a-11(c)
      or 240.14a-12</font></TD>
  </TR>
</TABLE>
<P align="center">
<div align="center"><B>VIRCO MFG. CORPORATION</B></div>
<B>
<HR align="center" noshade size="1">
<div align="center">(Name of Registrant as Specified In Its Charter)</div>
</B>

<p>

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

<b>
<HR noshade size="1">
<div align="center">(Name of Person(s) Filing Proxy Statement, if other than the
  Registrant)</div>
</B>
<P>Payment of Filing Fee (Check the appropriate box):

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
  <TR valign="top">
    <TD width="4%" align="left"><font size="3">[X]</font></TD>
    <TD colspan="2"><font size="3"></font><font size="3">No fee
required.</font></TD>
  </TR>
  <TR>
    <TD width="4%" height="13"><font size="3"></font></TD>
  </TR>
  <TR valign="top">
    <TD width="4%" align="left"><font size="3">[&nbsp;&nbsp;&nbsp;]</font></TD>
    <TD colspan="2"><font size="3"></font><font size="3">Fee computed on table
      below per Exchange Act Rules&nbsp;14a-6(i)(4) and 0-11.</font></TD>
  </TR>
  <TR>
    <TD width="4%"><font size="3">&nbsp;</font></TD>
  </TR>
  <TR valign="top">
    <TD width="4%" align="left"><font size="3"></font></TD>
    <TD width="3%"><font size="3">(1)</font></TD>
    <TD width="93%"><font size="3">Title of each class of securities to which
      transaction applies:</font></TD>
  </TR>
  <TR valign="top">
    <TD width="4%" align="left">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="93%">&nbsp;</TD>
  </TR>
  <TR valign="top">
    <TD width="4%" align="left">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="93%">
      <hr noshade size="1">
    </TD>
  </TR>
  <TR valign="top">
    <TD width="4%" align="left"><font size="3"></font></TD>
    <TD width="3%"><font size="3">(2)</font></TD>
    <TD width="93%"><font size="3">Aggregate number of securities to which transaction
      applies:</font></TD>
  </TR>
  <TR valign="top">
    <TD width="4%" align="left">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="93%">&nbsp;</TD>
  </TR>
  <TR valign="top">
    <TD width="4%" align="left">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="93%">
      <hr noshade size="1">
    </TD>
  </TR>
  <TR valign="top">
    <TD width="4%" align="left"><font size="3"></font></TD>
    <TD width="3%"><font size="3">(3)</font></TD>
    <TD width="93%"><font size="3">Per unit price or other underlying value of
      transaction computed pursuant to Exchange Act Rule&nbsp;0-11 (Set forth
      the amount on which the filing fee is calculated and state how it was determined):</font></TD>
  </TR>
  <TR valign="top">
    <TD width="4%" align="left">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="93%">&nbsp;</TD>
  </TR>
  <TR valign="top">
    <TD width="4%" align="left">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="93%">
      <hr noshade size="1">
    </TD>
  </TR>
  <TR valign="top">
    <TD width="4%" align="left"><font size="3"></font></TD>
    <TD width="3%"><font size="3">(4)</font></TD>
    <TD width="93%"><font size="3">Proposed maximum aggregate value of transaction:</font></TD>
  </TR>
  <TR valign="top">
    <TD width="4%" align="left">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="93%">&nbsp;</TD>
  </TR>
  <TR valign="top">
    <TD width="4%" align="left">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="93%">
      <hr noshade size="1">
    </TD>
  </TR>
  <tr valign="top">
    <td width="4%" align="left"><font size="3"></font></td>
    <td width="3%"><font size="3">(5)</font></td>
    <td width="93%"><font size="3">Total fee paid:</font></td>
  </tr>
  <TR valign="top">
    <TD width="4%" align="left">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="93%">&nbsp;</TD>
  </TR>
  <TR valign="top">
    <TD width="4%" align="left">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="93%">
      <hr noshade size="1">
    </TD>
  </TR>
  <TR>
    <TD width="4%"><font size="3"></font></TD>
  </TR>
  <TR valign="top">
    <TD width="4%" align="left"><font size="3">[&nbsp;&nbsp;&nbsp;]</font></TD>
    <TD colspan="2"><font size="3"></font><font size="3">Fee paid previously with
      preliminary materials.</font></TD>
  </TR>
  <TR>
    <TD width="4%"><font size="3">&nbsp;</font></TD>
  </TR>
  <TR valign="top">
    <TD width="4%" align="left"><font size="3">[&nbsp;&nbsp;&nbsp;]</font></TD>
    <TD colspan="2"><font size="3"></font><font size="3"> Check box if any part
      of the fee is offset as provided by Exchange Act Rule&nbsp;0-11(a)(2) and
      identify the filing for which the offsetting fee was paid previously. Identify
      the previous filing by registration statement number, or the Form or Schedule
      and the date of its filing.</font></TD>
  </TR>
  <TR>
    <TD width="4%"><font size="3">&nbsp;</font></TD>
  </TR>
  <TR valign="top">
    <TD width="4%" align="left"><font size="3"></font></TD>
    <TD width="3%"><font size="3">(1)&nbsp;</font></TD>
    <TD width="93%"><font size="3">Amount Previously Paid:</font></TD>
  </TR>
  <TR valign="top">
    <TD width="4%" align="left">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="93%">&nbsp;</TD>
  </TR>
  <TR valign="top">
    <TD width="4%" align="left">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="93%">
      <hr noshade size="1">
    </TD>
  </TR>
  <TR valign="top">
    <TD width="4%" align="left"><font size="3"></font></TD>
    <TD width="3%"><font size="3">(2)</font></TD>
    <TD width="93%"><font size="3">Form, Schedule or Registration Statement No.:</font></TD>
  </TR>
  <TR valign="top">
    <TD width="4%" align="left">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="93%">&nbsp;</TD>
  </TR>
  <TR valign="top">
    <TD width="4%" align="left">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="93%">
      <hr noshade size="1">
    </TD>
  </TR>
  <TR valign="top">
    <TD width="4%" align="left"><font size="3"></font></TD>
    <TD width="3%"><font size="3">(3)</font></TD>
    <TD width="93%"><font size="3">Filing Party:</font></TD>
  </TR>
  <TR valign="top">
    <TD width="4%" align="left">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="93%">&nbsp;</TD>
  </TR>
  <TR valign="top">
    <TD width="4%" align="left">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="93%">
      <hr noshade size="1">
    </TD>
  </TR>
  <tr valign="top">
    <td width="4%" align="left"><font size="3"></font></td>
    <td width="3%"><font size="3">(4)&nbsp;</font></td>
    <td width="93%"><font size="3">Date Filed:</font></td>
  </tr>
  <tr valign="top">
    <td width="4%" align="left">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="93%">&nbsp;</td>
  </tr>
  <tr valign="top">
    <td width="4%" align="left">&nbsp;</td>
    <td width="3%">&nbsp;</td>
    <td width="93%">
      <hr noshade size="1">
    </td>
  </tr>
</TABLE>
<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="center"><B><FONT size="4">Virco Mfg. Corporation
</FONT></B>

<DIV align="center">
<B>2027 Harpers Way, Torrance, California 90501</B>
</DIV>

<P align="center">
<B>NOTICE OF ANNUAL MEETING OF STOCKHOLDERS</B>

<DIV align="center">
<B>To Be Held on June&nbsp;12, 2001</B>
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Annual Meeting of Stockholders of Virco Mfg. Corporation, a
Delaware corporation, will be held at 2:00 p.m. on Tuesday,
June&nbsp;12, 2001 at 2027 Harpers Way, Torrance, California,
for the following purposes:
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="3%"></TD>
	<TD width="97%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	1.&nbsp;To elect three directors to serve until the 2004 Annual
	Meeting of Stockholders and until their successors are elected
	and qualified; and</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	2.&nbsp;To transact such other business as may properly come
	before the meeting.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board of Directors has fixed the close of business on
April&nbsp;27, 2001 as the record date for the determination of
stockholders entitled to notice of and to vote at the Annual
Meeting and any adjournments and postponements thereof.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Whether or not you expect to attend the meeting, please date,
sign and return the enclosed proxy. If you attend the meeting,
you may vote in person whether or not you have returned a proxy.
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="36%"></TD>
	<TD width="64%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">
	By Order of the Board of Directors</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">
	Robert E. Dose, <I>Secretary</I></TD>
</TR>

</TABLE>

<P align="left">Torrance, California

<DIV align="left">
May&nbsp;14, 2001
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="center"><B><FONT size="4">Virco Mfg. Corporation
</FONT></B>

<DIV align="center">
<B>2027 Harpers Way, Torrance, California 90501</B>
</DIV>

<P align="center">
<HR size="1" width="30%" align="center" noshade>

<P align="center">
<B>PROXY STATEMENT</B>

<P align="center">
<B>ANNUAL MEETING OF STOCKHOLDERS, JUNE 12, 2001</B>

<P align="center">
<HR size="1" width="30%" align="center" noshade>

<P align="center"><B>GENERAL INFORMATION</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
This Proxy Statement is being mailed to stockholders of Virco
Mfg. Corporation, a Delaware corporation (the
&#147;Company&#148;), on or about May&nbsp;14, 2001 in
connection with the solicitation by the Board of Directors of
proxies to be used at the Annual Meeting of Stockholders of the
Company to be held on Tuesday, June&nbsp;12, 2001 at
2:00&nbsp;p.m. at 2027 Harpers Way, Torrance, California and any
and all adjournments and postponements thereof.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The cost of preparing, assembling and mailing the Notice of
Annual Meeting of Stockholders, Proxy Statement and form of
proxy and the solicitation of proxies will be paid by the
Company. Proxies may be solicited in person or by telephone or
telegraph by personnel of the Company who will not receive any
additional compensation for such solicitation. The Company will
pay brokers or other persons holding stock in their names or the
names of their nominees for the expenses of forwarding
soliciting material to their principals.

<P align="center"><B>RECORD DATE AND VOTING</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The close of business on April&nbsp;27, 2001 has been fixed as
the record date for the determination of stockholders entitled
to notice of and to vote at the meeting. On that date there were
11,225,592 shares of the Company&#146;s Common Stock, par value
$.01 per share, outstanding. All voting rights are vested
exclusively in the holders of the Company&#146;s Common Stock.
Each share is entitled to one vote on any matter that may be
presented for consideration and action by the stockholders,
except that as to the election of directors, stockholders may
cumulate their votes. Because three directors are to be elected,
cumulative voting means that each stockholder may cast a number
of votes equal to three times the number of shares actually
owned. That number of votes may be cast for one nominee, divided
equally among the three nominees or divided among the nominees
in any other manner. The proxy holders will have authority, in
their discretion, to vote cumulatively for less than all of the
nominees.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In all matters other than the election of directors, the
affirmative vote of the majority of shares of Common Stock
present in person or represented by proxy at the meeting and
entitled to vote on the subject matter would be the act of the
stockholders. Directors will be elected by a plurality of the
votes of the Common Stock present in person or represented by
proxy. Abstentions will be treated as the equivalent of a
negative vote for the purpose of determining whether a proposal
has been adopted and will have no effect for the purpose of
determining whether a director has been elected. Broker
non-votes are not counted for the purpose of determining the
votes cast on a proposal.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Proxies will be voted for management&#146;s nominees for
election as directors and in accordance with the recommendations
of the Board of Directors contained in the Proxy Statement,
unless the stockholder otherwise directs in his proxy. Where the
stockholder has appropriately directed how the proxy is to be
voted, it will be voted according to his direction. Any
stockholder has the power to revoke his proxy at any time before
it is voted at the meeting by submitting written notice of
revocation to the Secretary of the Company, or by filing a duly
executed proxy bearing a later date. A proxy will not be voted
if the stockholder who executed it is present at the meeting and
elects to vote the shares represented thereby in person.

<P align="center">

<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="center"><B>SECURITY OWNERSHIP</B>

<P align="left"><B>Shares Owned By Management and Principal Stockholders</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth information as of April&nbsp;30,
2001 (unless otherwise indicated) relating to the beneficial
ownership of the Company&#146;s Common Stock (i)&nbsp;by each
person known by the Company to own beneficially more than 5% of
the outstanding shares of Common Stock of the Company,
(ii)&nbsp;by each director or nominee of the Company,
(iii)&nbsp;by each executive officer of the Company named in the
Summary Compensation Table below and (iv)&nbsp;by all officers
and directors of the Company as a group. The number of shares
beneficially owned is deemed to include shares of Common Stock
in which the persons named have or share either investment or
voting power. Unless otherwise indicated, the mailing address of
each of the persons named is 2027 Harpers Way, Torrance,
California 90501.

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="59%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="10%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="9%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Amount and Nature</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>of Beneficial</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Percent of</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="2"><FONT size="2"><B>Name of Beneficial Owner</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Ownership(1)</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Class</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="2"><HR size="1" noshade></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1" noshade></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1" noshade></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	Bruce S. Sherman/ Gregg J. Powers(2)</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,272,152</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11.3</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">%</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	Dimensional Fund Advisors Inc.(3)</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">813,004</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7.2</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	U.S. Trust Company, National Association(4)</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">596,535</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5.3</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	Robert A. Virtue(5)</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">340,672</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3.0</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Chairman of the Board of Directors,<BR>
	President, Chief Executive Officer</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	Douglas A. Virtue</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">458,258</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4.1</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Director, Executive Vice President</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	Donald S. Friesz</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">85,938</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(6</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Director</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	Robert K. Montgomery</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">0</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(6</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Director</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	George W. Ott</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">9,834</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(6</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Director</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	Glen D. Parish</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13,287</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(6</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Director, Vice President, General Manager</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	Donald A. Patrick</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">46,001</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(6</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Director</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	John H. Stafford</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11,656</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(6</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Director</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	James R. Wilburn</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13,834</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(6</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Director</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	W. Dale Nutter</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">12,481</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(6</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Former Vice President, Commercial Sales Group</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	Robert E. Dose</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">36,247</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(6</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Vice President Finance, Secretary, Treasurer</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	Robert J. Mills</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">35,393</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">(6</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">)</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Vice President, Engineering and Product<BR>
	Development</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	All executive officers and directors as a<BR>
	group (15 persons)</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,127,541</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">9.8</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="18%" align="left" noshade>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="4%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>(1)&nbsp;</TD>
	<TD align="left">
	Except as indicated in the footnotes to this table and pursuant
	to applicable community property laws, to the knowledge of the
	Company, the persons named in this table have sole voting and
	investment power with respect to all shares beneficially owned
	by them. For purposes of this table, a person is deemed to have
	&#147;beneficial ownership&#148; as of a given date of any
	security that such person has the right to acquire within 60
	days after such date. Amounts for Messrs.&nbsp;Robert Virtue,
	Douglas Virtue, Friesz, Montgomery, Ott, Parish, Patrick,
	Stafford, Wilburn, Nutter, Dose, Mills, and all executive
	officers and directors as a group, include 75,079, 26,362,
	19,548, 0, 907, 7,503, 5,984, 5,984, 5,984, 9,317 28,084,
	28,084, and 262,483 shares issuable upon exercise of options,
	respectively, and 7,563, 6,024, 0, 0, 0, 3,796, 0, 0, 0,</TD>
</TR>

</TABLE>

<P align="center">2
<!-- PAGEBREAK -->
<P><HR noshade><P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="4%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD></TD>
	<TD align="left">
	3,164, 5,260, 3,610, and 37,681 shares held under the
	Company&#146;s Employee Stock Ownership Plan as of
	December&nbsp; 31, 2000, respectively.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>(2)&nbsp;</TD>
	<TD align="left">
	As of February&nbsp;15, 2001, according to public filings.
	Bruce&nbsp;S. Sherman is Chairman of Private Capital Management,
	Inc. (&#147;PCM&#148;) and Gregg&nbsp;J. Powers is President of
	PCM. In these capacities, Messrs.&nbsp;Sherman and Powers
	exercise shared dispositive and voting power with respect to
	843,682 shares held by PCM&#146;s clients and managed by PCM.
	Messrs.&nbsp;Sherman and Powers are also general partners of SPS
	Partners, L.P. (&#147;SPS&#148;), the investment advisor for
	Entrepreneurial Value Fund, L.P. (&#147;EVF&#148;). In this
	capacity, Messrs.&nbsp;Sherman and Powers exercise shared
	dispositive and voting power with respect to the 401,500 shares
	held by EVF. Mr.&nbsp;Sherman has sole dispositive and voting
	power with respect to 26,970 shares. Messrs.&nbsp;Sherman and
	Powers disclaim beneficial ownership for the shares held by EVP
	and by PCM&#146;s clients and disclaim the existence of a group.
	The address for Messrs.&nbsp;Sherman and Powers is 3003 Tamiami
	Trail N., Naples, Florida 34103.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>(3)&nbsp;</TD>
	<TD align="left">
	As of February&nbsp;2, 2001, according to public filings.
	Dimensional Fund Advisors Inc. (&#147;Dimensional&#148;), a
	registered investment advisor, furnishes investment advice to
	four registered investment companies, and serves as investment
	manager to certain other commingled group trusts and separate
	accounts (these investment companies, trusts and accounts are
	the &#147;Funds&#148;). In its role as investment advisor or
	manager, Dimensional possesses voting and/or investment power
	over the shares of the Company&#146;s Common Stock that are
	owned by the Funds. Dimensional disclaims beneficial ownership
	of such shares. Dimensional&#146;s principal business address is
	1299 Ocean Avenue, 11th floor, Santa Monica, California 90401.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>(4)&nbsp;</TD>
	<TD align="left">
	As of January&nbsp;31, 2001, according to information provided
	to the Company. In its most recent available public filing, U.S.
	Trust Company, National Association (&#147;U.S. Trust&#148;)
	states that it has shared investment and dispositive power with
	respect to all of these shares. U.S. Trust&#146;s principal
	business address is 515 S. Flower Street #2800,
	Los&nbsp;Angeles, California 90501.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>(5)&nbsp;</TD>
	<TD align="left">
	Does not include 1,353,494 shares owned beneficially by
	Mr.&nbsp;Robert Virtue&#146;s adult children, including
	Mr.&nbsp;Douglas Virtue, as to which Mr.&nbsp;Robert Virtue
	disclaims beneficial ownership.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>(6)&nbsp;</TD>
	<TD align="left">
	Less than 1%.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All information with respect to beneficial ownership of the
shares referred to above is based upon filings made by the
respective beneficial owners with the Securities and Exchange
Commission or information provided to the Company by such
beneficial owners.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Douglas Virtue is Robert Virtue&#146;s son. The total number of
shares beneficially owned by Mr.&nbsp;Robert Virtue, his
brothers Raymond W. Virtue and Richard J. Virtue, his sister,
Nancy Virtue Cutshall, their children and their mother,
Mrs.&nbsp;Julian A. Virtue, aggregate 5,590,948 shares or 46.6%
of the total shares of Common Stock outstanding.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Robert A. Virtue, Richard J. Virtue, Raymond W. Virtue,
Nancy&nbsp;Virtue Cutshall and certain of their respective
spouses and children (the &#147;Stockholders&#148;) and the
Company have entered into an agreement with respect to certain
shares of the Company&#146;s Common Stock received by the
Stockholders as gifts from their father, Julian A. Virtue,
including shares received in subsequent stock dividends in
respect of such shares. Under the agreement, each Stockholder
who proposes to sell any of such shares is required to provide
the remaining Stockholders notice of the terms of such proposed
sale. Each of the remaining Stockholders is entitled to purchase
any or all of such shares on the terms set forth in the notice.
Any shares not purchased by such remaining Stockholders may be
purchased by the Company on such terms. The agreement also
provides for a similar right of first refusal in the event of
the death or bankruptcy of a Stockholder, except that the
purchase price for the shares is to be based upon the then
prevailing sales price of the Company&#146;s Common Stock on the
American Stock Exchange.

<P align="center">3

<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="left"><B>Compliance with Section&nbsp;16 of the Securities Exchange
Act of 1934</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Section&nbsp;16(a) of the Securities Exchange Act of 1934, as
amended, requires the Company&#146;s officers, directors and
persons who own more than 10% of any equity security of the
Company to file reports of ownership and changes in ownership
with the Securities and Exchange Commission and to furnish
copies of these reports to the Company. Based solely on a review
of the copies of the forms that the Company received, the
Company believes that all such forms required during the fiscal
year ended January&nbsp;31, 2001 were filed on a timely basis.

<P align="center">4

<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="center"><B>PROPOSAL 1</B>

<P align="center">
<B>ELECTION OF DIRECTORS</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Certificate of Incorporation of the Company provides for the
division of the Board of Directors into three classes as nearly
equal in number as possible. In accordance with the Certificate
of Incorporation, the Board of Directors has nominated Douglas
A. Virtue, George W. Ott and John H. Stafford (each of whom is
currently a director) to serve as directors in Class&nbsp;I of
the Board of Directors with a term expiring in 2004.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
It is intended that the proxies solicited by this Proxy
Statement will be voted in favor of the election of
Messrs.&nbsp;Douglas A. Virtue, Ott and Stafford, unless
authority to do so is withheld. Should any of such nominees be
unable to serve as a director or should any additional vacancy
occur before the election (which events are not anticipated),
proxies may be voted for a substitute nominee selected by the
Board of Directors or the authorized number of directors may be
reduced. If for any reason the authorized number of directors is
reduced, the proxies will be voted, in the absence of
instructions to the contrary, for the election of the remaining
nominees named in this Proxy Statement. In the event that any
person other than the nominees named below should be nominated
for election as a director, the proxies may be voted
cumulatively for less than all of the nominees.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth certain information with respect
to each of the three nominees, as well as each of the six
continuing directors.

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="31%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="50%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Director</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap><FONT size="2"><B>Name</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Age</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap><FONT size="2"><B>Principal Occupation</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Since</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1" noshade></TD>
	<TD></TD>
	<TD align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1" noshade></TD>
</TR>

<TR>
	<TD colspan="7" align="left" valign="top"><FONT size="2">
	<B>Nominees for Directors Whose Terms Expire in 2004:</B></FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	Douglas A. Virtue</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">42</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Executive Vice President since December 1997; previously General
	Manager of the Torrance Division of the Company since 1992</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">1992</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	George W. Ott</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">69</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	President and Founder of Ott and Hansen since 1976</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">1994</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	John H. Stafford</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">80</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Retired since 1983; director of Mossimo, Inc. since October
	1996; previously Partner of Main Hurdman, a predecessor of KPMG
	Peat Marwick (certified public accountants)</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">1985</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="7" align="left" valign="top"><FONT size="2">
	<B>Continuing Directors Whose Terms Expire in 2002:</B></FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	Donald S. Friesz</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">71</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Vice President Sales and Marketing from 1982 to February 1996</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">1992</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	Glen D. Parish</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">63</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Vice President since 1999; General Manager of the Conway
	Division since 1999; previously Vice President of Conway Sales
	and Marketing</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">1999</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	James R. Wilburn</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">68</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Dean of the School of Public Policy, Pepperdine University,
	since September 1997; previously Dean of the School of Business
	and Management, Pepperdine University
	(1982&nbsp;&#150;&nbsp;1994); Professor of Business Strategy,
	Pepperdine University (1994&nbsp;&#150;&nbsp;1996); director of
	First Fidelity Thrift since February 1995; director of JCB Bank
	since January 1998; director of Olson Company since January 1990</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">1986</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="7" align="left" valign="top"><FONT size="2">
	<B>Continuing Directors Whose Terms Expire in 2003:</B></FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	Robert A. Virtue</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">68</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Chairman of the Board and Chief Executive Officer of the Company
	since 1990; President of the Company since August 1982</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">1956</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	Robert K. Montgomery</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">62</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Partner of Gibson, Dunn &#38; Crutcher LLP law firm since 1971</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">2000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	Donald A. Patrick</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">76</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Vice President and a founder of Diversified Business Resources,
	Inc. (mergers, acquisitions and business consultants) since 1988</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="top" nowrap><FONT size="2">1983</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="center">5

<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each director of the Company serving in 2000 attended at least
75% of the 2000 meetings of the Board of Directors and each
committee on which he served. The Board of Directors held six
meetings in 2000. Directors who are also officers of the Company
or its subsidiaries receive no additional compensation for their
services as directors. Other directors received a retainer of
$4,500 per quarter, a fee of $1,000 for each Board meeting and a
fee of $750 for each committee meeting attended. In 2000,
Messrs.&nbsp;Friesz, Montgomery, Ott, Patrick, Stafford and
Wilburn each received options to purchase 1,000 shares of Common
Stock at $11.38 per share (1,100 shares at $10.34 per share
after adjusting for a 10% stock dividend issued in 2000 under
the Company&#146;s 1997 Stock Incentive Plan). At the
February&nbsp;2001 meeting of the Board of Directors, the
Compensation Committee (i)&nbsp;established a fee of $500 for
each telephonic board meeting attended by outside directors,
(ii)&nbsp;approved an additional annual retainer of $2,000 per
year for Committee chairmen, (iii)&nbsp;increased the annual
option grant to outside directors from 1,000 shares to 2,000
shares, and (iv)&nbsp;approved a pension plan for non-employee
directors who have served as such for at least 10&nbsp;years,
providing for a series of quarterly payments (equal to the
portion paid to non-employee directors for service without
regard to attendance at Board meetings or committee service) for
such director&#146;s lifetime following the date on which such
director ceases to be a director for any reason other than death.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board of Directors has an Audit Committee that in 2000 was
composed of Messrs.&nbsp;Friesz, Patrick, Stafford and Wilburn.
The Audit Committee held two meetings in 2000. The functions of
the Audit Committee include reviewing the financial statements
of the Company, the scope of the annual audit by the
Company&#146;s independent auditors and the audit reports
rendered by such independent auditors. The Audit Committee may
also examine and consider other appropriate matters. The Audit
Committee acts pursuant to a written charter adopted by the
Board of Directors, which appeared as Appendix&nbsp;A to last
year&#146;s proxy statement. As of the date of this proxy
statement, each of the Audit Committee members is an
&#147;independent director&#148; as defined by the listing
standards of the American Stock Exchange.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board of Directors has a Compensation Committee that in 2000
was composed of Messrs.&nbsp;Montgomery, Ott and Patrick. The
function of this Committee is to make recommendations to the
Board regarding changes in salaries and benefits. The
Compensation Committee held one meeting in 2000.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company does not have a nominating committee. The Board of
Directors performs the functions that might otherwise be
performed by such a committee.

<P align="center">6

<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="center"><B>EXECUTIVE COMPENSATION</B>

<P align="left"><B>Summary Compensation Table</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The following table sets forth the compensation for services
rendered in all capacities to the Company and its subsidiaries
during the years indicated for the Chief Executive Officer and
the other four most highly compensated officers of the Company
and one additional person who would have been included as one of
the four most highly compensated officers of the Company but for
the fact that he was not serving as an officer at the end of the
fiscal year:

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="33%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="7%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Long-Term</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Compensation</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Awards</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="7"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1" noshade></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><FONT size="2"><B>Annual Compensation</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Securities</B></FONT></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="2"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="7"><HR size="1" noshade></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Underlying</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>All Other</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="2"><FONT size="2"><B>Name and Principal Position</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Year</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Salary(1)</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Bonus</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Options(3)</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Compensation(2)</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="2"><HR size="1" noshade></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1" noshade></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1" noshade></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1" noshade></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1" noshade></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1" noshade></TD>
</TR>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	Robert A. Virtue</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">406,162</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">10,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Chairman of the Board and</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1999</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">378,263</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,650</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">58,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Chief Executive Officer</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1998</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">349,264</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">123,500</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">58,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	W. Dale Nutter</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">209,091</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,300</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Former Vice President,</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1999</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">138,197</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,800</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Commercial Sales Group</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1998</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">131,669</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">35,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,800</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	(resigned October&nbsp;2000)</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	Douglas A. Virtue</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">199,675</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,900</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Executive Vice President</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1999</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">184,888</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,650</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,900</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1998</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">162,768</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">46,200</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">3,900</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	Glen D. Parish</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">177,856</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,800</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Vice President, General Manager</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1999</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">95,182</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,513</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,600</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD colspan="2"><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1998</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">92,328</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">30,975</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,600</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	Robert E. Dose</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">172,242</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,900</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Vice President, Finance,</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1999</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">164,373</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,650</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,700</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Secretary and Treasurer</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1998</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">133,187</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">39,200</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,700</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD colspan="2" align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	Robert J. Mills</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">163,617</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,600</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Vice President, Engineering and</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1999</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">140,117</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1,650</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,700</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Product Development</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">1998</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">125,687</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">35,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">11,000</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,700</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="18%" align="left" noshade>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="4%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>(1)&nbsp;</TD>
	<TD align="left">
	Excludes compensation in the form of other personal benefits,
	which, for each of the executive officers, did not exceed the
	lesser of $50,000 or 10% of the total of annual salary and bonus
	reported for each year.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>(2)&nbsp;</TD>
	<TD align="left">
	For 2000, consists entirely of amounts representing the value of
	Company-paid split-dollar premiums under the Management
	Employees Life Insurance Plan. See &#147;Management Employees
	Life Insurance Plan&#148; and &#147;Executive Survivorship Life
	Insurance Plan.&#148; The foregoing amounts represent the
	actuarial value of the benefit to the executive officers of the
	current year&#146;s insurance premium paid by the Company in
	excess of that required to fund the death benefits under the
	policies.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>(3)&nbsp;</TD>
	<TD align="left">
	Granted pursuant to the Company&#146;s 1993 and 1997 Stock
	Incentive Plans at the market price of the Common Stock on the
	date of grant and adjusted for stock dividends and 3 for 2 stock
	splits.</TD>
</TR>

</TABLE>

<P align="center">7

<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="left"><B>Aggregated Option Exercises and Year-End Option Values</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Shown below is information relating to the exercise of stock
options during 2000 for each executive officer of the Company
named in the Summary Compensation Table above:

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="26%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="6%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="2%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="11%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="10%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="11%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="10%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Number of Unexercised</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Value of Unexercised</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Options at</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>In-the-Money Options</B></FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Shares Acquired</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Value</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Fiscal Year-End(2)</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>at Fiscal Year-End(3)</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap><FONT size="2"><B>Name</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>on Exercise(1)</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>Realized</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>(Exercisable/Unexercisable)</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>(Exercisable/Unexercisable)</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1" noshade></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1" noshade></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1" noshade></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1" noshade></TD>
</TR>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	Robert A. Virtue</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">5,500</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">50,975</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">75,079/0</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">$492,309/0</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	W. Dale Nutter</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">18,767</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">31,375</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;9,317/0</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">&nbsp; 0/0</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	Douglas A. Virtue</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">13,236</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">102,367</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">26,362/0</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;136,779/0</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	Glen D. Parish</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;7,503/10,854</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="bottom" nowrap><FONT size="2">&nbsp; 9,180/8,262</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	Robert E. Dose</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">28,084/10,854</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;&nbsp;43,146/8,262</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	Robert J. Mills</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&#151;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">28,084/10,854</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">&nbsp;&nbsp;43,146/8,262</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="18%" align="left" noshade>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="4%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>(1)&nbsp;</TD>
	<TD align="left">
	Options exercised by Messrs.&nbsp;Robert Virtue and Douglas
	Virtue were retained and added to the shares beneficially owned
	by such individuals.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>(2)&nbsp;</TD>
	<TD align="left">
	Adjusted for stock dividends.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>(3)&nbsp;</TD>
	<TD align="left">
	Calculated using closing price on January&nbsp;31, 2001 of
	$10.00.</TD>
</TR>

</TABLE>

<P align="left"><B>Virco Important Performers Plan</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In August&nbsp;1985, the Board of Directors adopted the Virco
Important Performers Plan (the &#147;VIP Plan&#148;), which is
an unqualified plan providing additional retirement and death
benefits for certain employees identified by the Board of
Directors or the committee administering the Plan as
contributing materially to the continued growth, development and
future business of the Company. The VIP Plan provides that each
officer or employee whose annual base salary exceeds $85,000
will be a participant in the Plan. Benefits under the VIP Plan
are payable to or on behalf of each participant upon retirement,
normally at age&nbsp;62, or upon death prior to retirement. The
Company is funding its obligations under the VIP Plan through
the purchase of life insurance policies on the participants.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the most recently completed fiscal year, the VIP Plan was
amended to provide that vesting for each participant begins
immediately upon participation in the VIP Plan. Vesting occurs
at 10% for each full year subsequent to such date. Under the VIP
Plan, each participant will receive a benefit payable at
retirement equal to 50% of the average base salary during the
last five years offset by the monthly benefit accrued under the
Employees Retirement Plan. Participants with fewer than ten
years of participation who retire after reaching age&nbsp;60
will be entitled to reduced pro rata benefits based on the
number of years they have participated in the VIP Plan. In the
event of the death of a participant prior to retirement, death
benefits are payable for a fifteen-year period to the deceased
participant&#146;s beneficiaries.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The estimated annual benefits payable upon retirement at age
62&nbsp;for Messrs.&nbsp;Robert Virtue, Nutter, Douglas Virtue,
Parish, Dose and Mills are $127,000, $39,000, $50,000, $35,000,
$41,000 and $37,000, respectively, assuming that the current
compensation of each executive officer remains constant until
retirement.

<P align="left"><B>Employees Retirement Plan</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Employees Retirement Plan of the Company is a
non-contributory, defined benefit retirement plan governed by
the Employee Retirement Income Security Act of 1974. With
limited exceptions, all employees of the Company and its
participating subsidiaries (including executive officers) are
eligible to participate provided they meet certain service
requirements. Benefits are paid to or on behalf of each
participant upon retirement, normally at age&nbsp;65, and under
certain circumstances upon death. Benefits under the Plan are
credited to the employee each year based upon years of service
and remuneration during such year of service.

<P align="center">8

<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Retirement benefits vest partially after three years of service
and fully after seven years of service, or upon the
participant&#146;s 65th birthday. Benefits payable under the
Plan are adjusted to reflect the form of payment elected by the
participant. The following table shows the annual pension
benefits for retirement at age&nbsp;65 which would be payable to
retiring employees with representative earnings and years of
service:

<P align="center"><B>PENSION PLAN TABLE</B>

<CENTER>
<TABLE width="80%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="63%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="11"></TD>
</TR>

<TR>
	<TD align="center" nowrap><FONT size="2"><B>&nbsp;Assumed</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="11"><FONT size="2"><B>Years of Service(1)(2)</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap><FONT size="2"><B>&nbsp;Average</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="11"><HR size="1" noshade></TD>
</TR>

<TR>
	<TD align="center" nowrap><FONT size="2"><B>Compensation(3)</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>10</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>20</B></FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2"><B>30</B></FONT></TD>
</TR>

<TR>
	<TD align="center" nowrap><HR size="1" noshade></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1" noshade></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1" noshade></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><HR size="1" noshade></TD>
</TR>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	&nbsp;$&nbsp;25,000</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">2,260</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,520</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">6,780</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	&nbsp; 50,000</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">4,760</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">9,520</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">14,280</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	&nbsp; 75,000</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">7,260</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">14,520</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">21,780</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	&nbsp;&nbsp;100,000</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">9,760</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">19,520</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">29,280</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	&nbsp;&nbsp;125,000</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">12,260</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">24,520</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">36,780</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	&nbsp;&nbsp;150,000</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">14,760</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">29,520</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">44,280</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR><TD><TR><TD><TR><TD><TR><TD>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	&nbsp;&nbsp;175,000</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">15,760</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">31,519</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">47,279</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

</TABLE>
</CENTER>

<DIV align="left">
<HR size="1" width="18%" align="left" noshade>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="4%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>(1)&nbsp;</TD>
	<TD align="left">
	Represents annual retirement benefits payable at normal
	retirement age. To the extent a participant&#146;s service was
	rendered prior to February&nbsp;1, 1964, the effective date of
	the Plan, actual benefits will be slightly lower than the
	benefits shown in the table.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>(2)&nbsp;</TD>
	<TD align="left">
	The benefits shown are for straight-life annuity payments and
	are not subject to deduction for Social Security or other offset
	amounts; alternative forms of benefit payments are available
	under the Plan.</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>(3)&nbsp;</TD>
	<TD align="left">
	Assumed average compensation is based upon regular base
	compensation before deduction for taxes or group insurance
	averaged for each year in the Plan.</TD>
</TR>

</TABLE>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Messrs.&nbsp;Robert Virtue, Nutter, Douglas Virtue, Parish, Dose
and Mills have 43, 9, 14, 41, 9 and 5 credited years of service
and $73,000, $135,000, $94,000, $38,000, $129,000 and $156,000
of assumed average compensation, respectively, under the Plan.
From time to time the Company may amend the formula used to
determine the benefits applicable to certain management
personnel who also participate in the VIP Plan, with the effect
that no change results in such individual&#146;s overall
retirement benefits as determined under the VIP Plan, but solely
the plan under which such benefits are paid.

<P align="left"><B>Management Employees Life Insurance Plan</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In August&nbsp;1985, the Board of Directors adopted the
Management Employees Life Insurance Plan, which provides for the
Company to obtain life insurance policies on management
employees selected by the Board. Currently, all officers and
employees earning an annual salary exceeding $85,000 are
entitled to participate in the Plan and may elect coverage under
the Plan of $100,000. Officers may elect coverage under the Plan
of up to $300,000 in increments of $50,000.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The premiums for the policies are paid partially by the
participants pursuant to the formula set forth in the Plan, with
the Company paying the remaining portion. The Company retains an
interest in the death benefit payable under the policy for each
participant in an amount equal to the aggregate amount of
premium payments made by the Company with respect to such
participant&#146;s policy. The remainder of the death benefit is
payable to the participant&#146;s beneficiaries. Upon the first
to occur of reaching the age of 65, actual retirement or
termination of employment, each participant is entitled to have
the Company assign the policy to the participant or his
designee, provided that the participant first reimburses the
Company for all premiums previously paid by the Company for the
policy.

<P align="center">9

<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="left"><B>Executive Survivorship Life Insurance Plan</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In August&nbsp;1985, the Board of Directors adopted the
Executive Survivorship Life Insurance Plan, which provides
special life insurance benefits to a group of management
employees selected by the Board. Under this Plan, the Company
maintains insurance policies on the lives of the participants
and their spouses.

<DIV align="left">
Robert A. Virtue is currently the only executive officer
participating in the Plan. The Company also maintains insurance
policies on the lives of Mr.&nbsp;Raymond&nbsp;W. Virtue, a
former executive officer, and his former spouse under the Plan.
The amount of each of the insurance policies maintained by the
Company under the Plan on the lives of Robert&nbsp;A. Virtue and
Raymond&nbsp;W. Virtue and their current or former spouses is
$1,250,000. In 1985, the Company also purchased $1,250,000 of
insurance under the Plan on the lives of Richard Cutshall, who
was then a management employee of the Company, and his spouse
Nancy Virtue Cutshall, who is the beneficial owner of 4.8% of
the Company&#146;s outstanding shares. In connection with their
divorce in 1987, Mr.&nbsp;Cutshall, who is now deceased,
transferred his interest in such insurance to
Mrs.&nbsp;Cutshall. As a result of such transaction, the policy
previously maintained on the life of Mr.&nbsp;Cutshall was
terminated and a $2,500,000 policy is now maintained under the
Plan on the life of Mrs.&nbsp;Cutshall.
</DIV>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The premiums for the policies were paid partially by the
participants pursuant to a formula set forth in the Plan, with
the Company paying the remaining amount. Premiums are no longer
required to be paid by either the Company or the participants to
maintain the policies The Company retains an interest in the
death benefit payable under the policy of each participant and
spouse in an amount equal to the aggregate amount of premium
payments made by the Company with respect to the policy of such
participant or spouse. The remainder of the death benefit is
payable to the designated beneficiaries of the deceased
participant or spouse. Upon the first to occur of the
participant&#146;s reaching age&nbsp;65, retiring or ceasing to
be an employee of the Company for any reason other than death,
the participant or his designee is required to purchase the
Company&#146;s interest in the participant&#146;s policy and the
spouse or the spouse&#146;s designee is similarly required to
purchase the Company&#146;s interest in the spouse&#146;s
policy. This requirement has been suspended temporarily for
Mr.&nbsp;Raymond Virtue and Mrs.&nbsp;Cutshall and will be
addressed by the Company at a later date. The amount to be paid
to the Company upon such purchase is the aggregate amount of the
Company&#146;s previous premium payments on such policy. In the
event a participant in the Plan dies before reaching age&nbsp;65
and while an employee of the Company, the Company remains
obligated to maintain the insurance policy under the Plan on the
life of such participant&#146;s spouse.

<P align="left"><B>Widow&#146;s Salary Continuation Plan</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In August&nbsp;1985, the Board of Directors approved the
Widow&#146;s Salary Continuation Plan, which provides for
surviving widow benefits to be paid by the Company upon the
deaths of Messrs.&nbsp;Julian A. Virtue and Donald Heyl, the
former President of the Company. The widow of Mr.&nbsp;Virtue is
currently receiving $5,000&nbsp;per month under the Plan. In
2000, the Company paid $60,000 to Mrs.&nbsp;Virtue. Upon the
death of Mr.&nbsp;Heyl, his surviving widow will receive $60,000
annually during her lifetime. The Company is funding its
obligation to Mr.&nbsp;Heyl under this Plan through the purchase
of life insurance on the life of Mr.&nbsp;Heyl.

<P align="center"><B>CERTAIN TRANSACTIONS</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In 1989 the Company loaned $75,000 to Larry&nbsp;O. Wonder, the
Company&#146;s Vice President, Sales, to assist in
Mr.&nbsp;Wonder&#146;s relocation to the Company&#146;s
headquarters in California. The loan was secured by a second
trust deed on Mr.&nbsp;Wonder&#146;s home and accrues interest
at a rate equal to the Wells Fargo prime interest rate. After
more than 10&nbsp;years of serving the Company in a variety of
capacities including Division Sales Manager, Division Vice
President of Education Sales, Corporate Vice President of
Education Sales and Corporate Vice President of Sales, the
Company agreed to waive Mr.&nbsp;Wonder&#146;s loan and accrued
interest as of January&nbsp;31, 2001, which had a balance of
$116,000 at the year end.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During 1994 the Company entered into a consulting arrangement
with Diversified Business Resources, Inc.
(&#147;Diversified&#148;), a consulting firm that is partially
owned by Donald&nbsp;A. Patrick, who is a Director. During 2000
the Company paid $162,000 to Diversified in connection with the
Conway, Arkansas re-configuration project.

<P align="center">10
<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Robert K. Montgomery is a member of the Board of Directors of
the Company as a Class&nbsp;III Director. Mr.&nbsp;Montgomery is
a partner of the law firm Gibson, Dunn&nbsp;&#38; Crutcher LLP,
which has provided legal services to the Company. The Company
expects that such law firm will continue to render legal
services to the Company.

<P align="center"><B>REPORT ON EXECUTIVE COMPENSATION</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Compensation Committee of the Board of Directors is
responsible for developing the Company&#146;s executive
compensation policies and making recommendations to the Board of
Directors with respect to these policies. In addition, the
Committee makes annual recommendations to the Board of Directors
concerning the compensation paid to the Chief Executive Officer
and to each of the other executive officers of the Company.

<P align="left"><B>Executive Compensation Policy</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The goals of the Company&#146;s executive compensation policy
are to attract and retain qualified executives and to ensure
that their efforts are directed toward the long-term interests
of the Company and its stockholders. The Company is striving to
generally position executive salaries at median competitive
levels and to rely on variable, performance-based bonuses to
play a significant role in determining total compensation. In
addition, by establishing the 1993 and 1997 Stock Incentive
Plans, the Company further linked executive and stockholder
interests.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Compensation Committee annually reviews salaries, bonuses
and other aspects of executive compensation. In general, the
purpose of such annual reviews is to ensure that the
Company&#146;s overall executive compensation program remains
competitive with comparable businesses and that total executive
pay reflects both the individual&#146;s performance as well as
the overall performance of the Company.

<P align="left"><B>Base Salary</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Each year, the performance of executives is reviewed and, based
upon an assessment of individual performance and the
Company&#146;s performance, a corresponding salary increase may
be awarded. In 2000, based on a comparison of the Company&#146;s
executive compensation levels and plans with those of other
companies in the furniture manufacturing business, the
Compensation Committee concluded that the Company&#146;s
executive salaries had to be adjusted to keep pace with those of
comparable companies. As a result, the salary increases awarded
to the Company&#146;s Chief Executive Officer and other
executive officers in 2000 reflected primarily the Compensation
Committee&#146;s determination to adjust salaries to perceived
competitive levels, as well as the Compensation Committee&#146;s
evaluation of the overall performance of the Company and the
performance of each executive officer.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The salary of Mr.&nbsp;Robert A. Virtue, the Company&#146;s
Chief Executive Officer, was determined on the foregoing basis.
In addition to consideration of the salary levels of the chief
executive officer of other furniture manufacturers, the Board
considered the Company&#146;s operating results in 1999, the
Company&#146;s stock performance, the effect of the general
economy on the Company&#146;s performance and the success of the
Company in addressing certain goals.

<P align="center">11

<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="left"><B>Bonuses</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Early each year the Board of Directors considers and approves an
annual profit plan for the Company, which establishes a target
level of overall Company profits, excluding certain
non-recurring items. The bonuses payable to the Chief Executive
Officer and the other executive officers are tied to the
Company&#146;s actual performance relative to the annual profit
plan. However, bonuses of divisional general managers are based
upon divisional operating results. Commencing in 2001, a
consolidated bonus plan will be utilized to determine the
bonuses of divisional general managers, as well as the Chief
Executive Officer and the other executive officers. In 2000, the
Chief Executive Officer was eligible to receive a bonus equal to
60% of his salary and each of the executive officers was
eligible to receive a bonus equal to 50% of his salary if the
annual profit plan target level or target divisional operating
results, as applicable, had been achieved. In general, the
amount of the bonus paid was subject to a 2% adjustment for each
$300,000 difference between the actual profits and the
plan&#146;s targeted profit level or, for divisional general
managers, a similar formula to adjust for the difference between
the actual results and the targeted results.
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="38%"></TD>
	<TD width="62%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">
	THE COMPENSATION COMMITTEE OF</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">
	THE BOARD OF DIRECTORS</TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="31%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="30%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="35%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">Robert K. Montgomery<BR>Donald A. Patrick</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	George W. Ott</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The report of the Compensation Committee of the Board of
Directors shall not be deemed incorporated by reference by any
general statement incorporating by reference this proxy
statement into any filing under the Securities Act of 1933 or
under the Securities Exchange Act of 1934, except to the extent
that the Company specifically incorporates this information by
reference, and shall not otherwise be deemed filed under such
Acts.

<P align="center"><B>REPORT OF THE AUDIT COMMITTEE</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Audit Committee reviews the Company&#146;s financial
reporting process on behalf of the Board of Directors.
Management has the primary responsibility for the financial
statements and the reporting process. The Company&#146;s
independent auditors are responsible for expressing an opinion
on the conformity of our audited financial statements with
accounting principles generally accepted in the United States.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In this context, the Audit Committee has reviewed the audited
financial statements included in the Company&#146;s annual
report on Form&nbsp;10-K with management and the independent
auditors, including their judgment of the quality and
appropriateness of accounting principles, the reasonableness of
significant judgments and the clarity of the disclosures in the
financial statements. In addition, the Audit Committee has
discussed with the independent auditors the matters required to
be discussed by Statement on Auditing Standards No.&nbsp;61
(Communication with Audit Committees). In addition, the Audit
Committee has received from the independent auditors the written
disclosures required by Independence Standards Board No.&nbsp;1
(Independence Discussions with Audit Committees) and discussed
with them their independence from the Company and its
management. And, the Audit Committee has considered whether the
independent auditors provision of non-audit services to the
Company is compatible with the auditor&#146;s independence.

<P align="center">12
<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In reliance on the reviews and discussions referred to above,
the Audit Committee recommended to the Board of Directors, and
the Board has approved, that the audited financial statements be
included in the Company&#146;s Annual Report on SEC
Form&nbsp;10-K for the year ended January&nbsp;31, 2001, for
filing with the Securities and Exchange Commission.
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="38%"></TD>
	<TD width="62%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">
	THE AUDIT COMMITTEE OF</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">
	THE BOARD OF DIRECTORS</TD>
</TR>

</TABLE>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="27%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="42%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD colspan="3" align="left" valign="top"><FONT size="2">John H. Stafford<BR>James R. Wilburn</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="left" valign="top"><FONT size="2">
	Donald A. Patrick<BR>
	Donald S. Friesz</FONT></TD>
</TR>

</TABLE>
</CENTER>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The report of the Audit Committee of the Board of Directors
shall not be deemed incorporated by reference by any general
statement incorporating by reference this proxy statement into
any filing under the Securities Act of 1933 or under the
Securities Exchange Act of 1934, except to the extent that the
Company specifically incorporates this information by reference,
and shall not otherwise be deemed filed under such Acts.

<P align="center">13

<!-- PAGEBREAK -->
<P><HR noshade><P>

<P align="center"><B>STOCKHOLDER RETURN PERFORMANCE PRESENTATION</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The stock performance graph set forth below illustrates the
Company&#146;s performance in total stockholder return over the
period February&nbsp;1, 1996 through January&nbsp;31, 2001
relative to the following external indices: (a)&nbsp;the
American Stock Exchange market value index (&#147;AMEX Market
Index&#148;) and (b)&nbsp;a peer group.<SUP>1</SUP> Each line on
the stock performance graph assumes that $100.00 was invested in
the Common Stock and the respective indices on February&nbsp;1,
1996. The graph then tracks the value of these investments,
assuming reinvestment of dividends, through January&nbsp;31,
2001.

<P align="center"><B>COMPARISON OF 5-YEAR CUMULATIVE TOTAL RETURNS</B>

<DIV align="center">
<B>OF THE COMPANY, AMEX MARKET INDEX AND PEER GROUP</B>
</DIV>

<P align="center">
<B>[PERFORMANCE GRAPH]</B>

<CENTER>
<TABLE width="100%" align="center" cellspacing="0" cellpadding="0" border="0">

<TR>
	<TD width="31%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="1%"><FONT size="2">&nbsp;</FONT></TD>
	<TD width="5%"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD colspan="25"></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="25"><HR size="1" noshade></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2">1996</FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2">1997</FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2">1998</FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2">1999</FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2">2000</FONT></TD>
	<TD></TD>
	<TD align="center" nowrap colspan="3"><FONT size="2">2001</FONT></TD>
</TR>

<TR>
	<TD></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
	<TD></TD>
	<TD colspan="3"></TD>
</TR>

<TR>
	<TD colspan="25"></TD>
</TR>

<TR>
	<TD align="center" nowrap colspan="25"><HR size="1" noshade></TD>
</TR>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	&nbsp;VIRCO MFG. CORPORATION</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100.00</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">176.93</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">477.36</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">353.92</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">277.02</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">222.21</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD colspan="25" align="left"><HR size="1" noshade></TD>

</TR>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	&nbsp;PEER GROUP</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100.00</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">138.64</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">201.01</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">264.40</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">142.00</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">101.58</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD colspan="25" align="left"><HR size="1" noshade></TD>

</TR>

<TR>
	<TD align="left" valign="top">
	<DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">
	&nbsp;AMEX MARKET INDEX</FONT></DIV>
	</TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom"><FONT size="2">$</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">100.00</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">107.63</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">122.77</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">127.19</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">149.90</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
	<TD align="right" valign="bottom" nowrap><FONT size="2">157.52</FONT></TD>
	<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR>
	<TD colspan="25" align="left"><HR size="1" noshade></TD>

</TR>

</TABLE>
</CENTER>
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="4%"></TD>
	<TD width="96%"></TD>
</TR>

<TR valign="top">
	<TD>(1)&nbsp;</TD>
	<TD align="left">
	The peer group comprises all companies identified by Media
	General Financial Services as being within the &#147;other
	business and institutional equipment&#148; industry group, as
	follows: American Locker Group Incorporated; Autotote
	Corporation; Bell &#38; Howell Co.; Champion Industries, Inc.;
	Colorocs Information Technologies, Inc.; Comtrex Systems
	Corporation; Diebold, Incorporated; Dorel Industries Inc.;
	Falcon Products, Inc.; Fiberstars, Inc.; Franklin Electronic
	Publishers, Incorporated; General Binding Corporation; The
	Genlyte Group Incorporated; Global Payment Technologies, Inc.;
	Gradco Systems, Inc.; Gunther International, Ltd.; Herman
	Miller, Inc.; Hon Industries Inc.; Hotelworks.com, Inc.;
	Hypercom Corporation; International Lottery &#38; Totalizer
	Systems, Inc.; Knape &#38; Vogt Manufacturing Company; Koala
	Corporation; Kronos Incorporated; LSI Industries Inc.;
	Mity-Lite, Inc.; Nam Tai Electronics, Inc.; Neutral Posture
	Ergonomics, Inc.; Open Plan Systems, Inc.; Par Technology
	Corporation; Pitney Bowes Inc., Reconditioned Systems, Inc.;
	Sel-Drum International, Inc.; Steelcase Inc.; Tab Products Co.;
	Techlite, Inc.; Tidel Technologies, Inc., Ultradata Systems,
	Incorporated, Xerox Corporation; and the Company.</TD>
</TR>

</TABLE>

<P align="center">14

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<P><HR noshade><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The cumulative total return shown on the stock performance graph
indicates historical results only and is not necessarily
indicative of future results.

<P align="center"><B>RELATIONSHIP WITH INDEPENDENT AUDITORS</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Ernst &#38; Young LLP, upon the recommendation of the Audit
Committee of the Board of Directors of the Company, continues as
the accounting firm selected by the Board of Directors to
examine the accounts of the Company for the current year.
Representatives of Ernst &#38; Young LLP will be present at the
Annual Meeting and will have an opportunity to make a statement
if they desire to do so and will be available to respond to
appropriate questions.

<P align="left"><B>Audit Fees</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The aggregate fees billed by Ernst &#38; Young LLP for
professional services rendered for the audit of the
Company&#146;s annual financial statements for the fiscal year
ended January&nbsp;31, 2001 and for the reviews of the financial
statements included in the Company&#146;s Quarterly Reports on
Form&nbsp;10-Q for that fiscal year were $332,000.

<P align="left"><B>Financial Information Systems Design and Implementation
Fees</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
During the year ended January&nbsp;31, 2001, Ernst &#38; Young
LLP did not provide the Company with any services related to
financial information systems design and implementation.

<P align="left"><B>All Other Fees</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Company estimates that the aggregate fees for all other
services rendered by Ernst &#38; Young LLP during the year ended
January&nbsp;31, 2001 were $77,000. These fees consist mainly of
$27,000 relating to pension plan audits and $50,000 relating to
preparation of the Company&#146;s tax returns.

<P align="center"><B>OTHER MATTERS</B>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Proposals of stockholders intended to be presented at the 2002
Annual Meeting of Stockholders must be received by the Company
by January&nbsp;14, 2002 for inclusion in the Company&#146;s
proxy statement and form of proxy relating to that meeting.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Board of Directors does not know of any matters to be
presented at the 2001 Annual Meeting other than as stated
herein. If other matters do properly come before the Annual
Meeting, the persons named on the accompanying proxy card will
vote the proxies in accordance with their judgment in such
matters.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Annual Report to the Stockholders of the Company for the
fiscal year ended January&nbsp;31, 2001 including financial
statements, is being mailed to stockholders concurrently
herewith.

<P align="center">15

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<P><HR noshade><P>

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
THE COMPANY WILL ALSO PROVIDE WITHOUT CHARGE A COPY OF ITS
ANNUAL REPORT ON FORM 10-K, INCLUDING FINANCIAL STATEMENTS AND
RELATED SCHEDULES, FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION UPON REQUEST IN WRITING FROM ANY PERSON WHO WAS
HOLDER OF RECORD, OR WHO REPRESENTS IN GOOD FAITH HE/SHE WAS A
BENEFICIAL OWNER, OF COMMON STOCK OF THE COMPANY ON APRIL 27,
2001. ANY SUCH REQUEST SHALL BE ADDRESSED TO THE COMPANY AT 2027
HARPERS WAY, TORRANCE, CALIFORNIA 90501, ATTENTION: CORPORATE
SECRETARY.

<P align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Stockholders are urged to date and sign the enclosed proxy and
return it promptly in the enclosed envelope.
<P>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
	<TD width="38%"></TD>
	<TD width="62%"></TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">
	By Order of the Board of Directors</TD>
</TR>

<TR>
	<TD>&nbsp;</TD>
</TR>

<TR valign="top">
	<TD>&nbsp;</TD>
	<TD align="left">
	Robert E. Dose, <I>Secretary</I></TD>
</TR>

</TABLE>

<P align="left">Torrance, California

<DIV align="left">
May&nbsp;14, 2001
</DIV>

<P align="center">16
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<P><HR noshade><P>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" align="center">
<TR valign="bottom">
        <TD width="50%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="45%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align="left" valign="top"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="3"><B>PROXY</B></FONT></DIV></TD>
        <TD></TD>
        <TD  align="right" valign="top"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="3">
<B>PROXY</B></FONT></DIV></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><B>VIRCO MFG. CORPORATION<BR>
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS<BR>
FOR THE ANNUAL MEETING OF STOCKHOLDERS TO BE HELD ON JUNE 12, 2001</B>

<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned hereby appoints ROBERT A. VIRTUE, DOUGLAS A. VIRTUE and
ROBERT E. DOSE, and each of them, with full power of substitution in each, as
proxies of the undersigned to attend and vote, as designated on the reverse
side, all shares of Virco Mfg. Corporation, a Delaware corporation (the
&#147;Company&#148;), which the undersigned may be entitled to vote at the Annual Meeting
of Stockholders to be held June&nbsp;12, 2001 and any adjournment or postponement
thereof:

<P align="center"><B><I>Please date, sign on reverse side and return in accompanying envelope.</I></B>
<!-- PAGEBREAK -->
<P><HR noshade><P>


<P align="center">[Reverse Side of Proxy]

<P align="right">Please mark<BR>
your vote at [&nbsp;&nbsp;&nbsp;]<BR>
indicated in<BR>
this example

<P>
<CENTER>
  <TABLE width="80%" border="0" cellpadding="0" cellspacing="0" align="center">
    <TR valign="top">
        <TD width="3%">&nbsp;</TD>
        <TD width="1%" align="left">1.</TD>
        <TD width="6%">&nbsp;</TD>
        <TD width="90%">Election of Directors:</TD>
</TR>
<TR>
        <TD>&nbsp;</TD>
</TR>
<TR valign="top">
        <TD width="3%">&nbsp;</TD>
        <TD width="1%" align="left"><B>&nbsp;</B></TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="93%"><B>FOR </B>all nominees listed (except as marked to the contrary). [&nbsp;&nbsp;&nbsp;]<BR>
<B>WITHHOLD AUTHORITY </B>to vote for all nominees listed. [&nbsp;&nbsp;&nbsp;]</TD>
</TR>
</TABLE>
</CENTER>

<CENTER>
  <TABLE width="80%" border="0" cellpadding="0" cellspacing="0" align="center">
    <TR valign="top">
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="6%">&nbsp;</TD>
        <TD width="28%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="28%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="28%">&nbsp;</TD>
</TR>

<TR>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>Douglas A. Virtue</TD>
        <TD>&nbsp;</TD>
        <TD>George W. Ott</TD>
        <TD>&nbsp;</TD>
        <TD>John H. Stafford</TD>
</TR>

</TABLE>
</CENTER>
<P>
<CENTER>
  <TABLE width="80%" border="0" cellpadding="0" cellspacing="0" align="center">
    <TR valign="top">
        <TD width="3%">&nbsp;</TD>
        <TD width="1%">&nbsp;</TD>
        <TD width="6%">&nbsp;</TD>
        <TD width="90%">(INSTRUCTION: To withhold authority to vote for any individual
nominee, write nominee&#146;s name on the space provided below.)</TD>
</TR>
</TABLE>
</CENTER>

<P>
<TABLE width="80%" border="0" cellpadding="0" cellspacing="0" align="center">
  <TR valign="top">
        <TD width="3%">&nbsp;</TD>
        <TD width="1%" align="left">2.</TD>
        <TD width="6%">&nbsp;</TD>
        <TD width="90%">In their discretion, the Proxies are authorized to vote upon
such other business as may properly come before such meeting.</TD>
</TR>
</TABLE>
<P align="left"><B>ANY PREVIOUS PROXY EXECUTED BY THE UNDERSIGNED IS HEREBY REVOKED.</B>

<P align="left">Receipt of the notice of meeting, the proxy statement and the annual report of
the Company for the year ended January&nbsp;31, 2001, is hereby acknowledged.

<P align="left"><B>THIS PROXY WILL BE VOTED AS DIRECTED ABOVE,
  IN THE ABSENCE OF ANY DIRECTOR, THIS PROXY WILL BE VOTED FOR
  THE ELECTION AS SPECIFIED OF ALL OF THE NOMINEES LISTED, AND
  IN THE DISCRETION OF THE PROXIES ON SUCH OTHER BUSINESS AS MAY
  PROPERLY COME BEFORE THE MEETING.</B>

<P>

<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" align="center">
  <TR valign="bottom">
    <TD width="1%" nowrap></TD>
    <TD width="71%"></TD>
    <TD width="1%" nowrap></TD>
    <TD width="17%"></TD>
    <TD width="10%"></TD>
  </TR>
  <TR valign="bottom">
    <TD align="center" nowrap>
      <DIV align="left"><FONT size="3">Signature(s):</FONT></DIV>
    </TD>
    <TD>
      <DIV align="left"><FONT size="1"> </FONT></DIV>
    </TD>
    <TD  align="center" nowrap>
      <DIV align="left"><FONT size="3">Dated:</FONT><FONT size="1">&nbsp;</FONT></DIV>
    </TD>
    <TD  align="center">&nbsp;</TD>
    <TD  align="center" nowrap>
      <DIV align="left">,&nbsp;2001</DIV>
    </TD>
  </TR>
  <TR valign="top">
    <TD align="center">&nbsp;</TD>
    <TD>
      <HR size="1" noshade>
    </TD>
    <TD  align="center">&nbsp;</TD>
    <TD  align="center">
      <HR size="1" noshade>
    </TD>
    <TD  align="center">&nbsp; </TD>
  </TR>
</TABLE>

<P>Note: Please sign exactly as addressed hereon. If the stock
  is jointly held each owner must sign. Executor, trustees, guardian
  and attorneys should so indicate when signing. Attorneys should
  submit proxies of attorney.
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