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<SEC-DOCUMENT>0001206774-07-002516.txt : 20071102
<SEC-HEADER>0001206774-07-002516.hdr.sgml : 20071102
<ACCEPTANCE-DATETIME>20071102163027
ACCESSION NUMBER:		0001206774-07-002516
CONFORMED SUBMISSION TYPE:	8-K/A
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20071008
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20071102
DATE AS OF CHANGE:		20071102

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AMTECH SYSTEMS INC
		CENTRAL INDEX KEY:			0000720500
		STANDARD INDUSTRIAL CLASSIFICATION:	SPECIAL INDUSTRY MACHINERY, NEC [3559]
		IRS NUMBER:				860411215
		STATE OF INCORPORATION:			AZ
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		8-K/A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-11412
		FILM NUMBER:		071210989

	BUSINESS ADDRESS:	
		STREET 1:		131 S CLARK DR
		CITY:			TEMPE
		STATE:			AZ
		ZIP:			85281
		BUSINESS PHONE:		6029675146

	MAIL ADDRESS:	
		STREET 1:		131 SOUTH CLARK DRIVE
		CITY:			TEMPE
		STATE:			AZ
		ZIP:			85281

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	QUARTZ ENGINEERING & MATERIALS INC
		DATE OF NAME CHANGE:	19870715
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K/A
<SEQUENCE>1
<FILENAME>amtech_8k-a.htm
<DESCRIPTION>CURRENT REPORT
<TEXT>

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<P align=center><B><FONT face=serif>UNITED STATES<BR></FONT></B><B><FONT face=serif>SECURITIES AND EXCHANGE COMMISSION<BR>WASHINGTON, D.C.
20549</FONT></B></P>
<P align=center><B><FONT face=serif size=4>FORM 8-K/A</FONT></B></P>
<P align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif>CURRENT
REPORT<BR>Pursuant to Section 13 or 15(d) of the<BR>Securities Exchange Act of
1934</FONT></B></P>
<P align=center><B><FONT face=serif>October 8, 2007<BR></FONT></B><B><FONT face=serif>Date of Report (Date of earliest event reported)</FONT></B><FONT face=serif></FONT></P>
<P align=center><FONT face=serif size=4>Amtech Systems, Inc.<BR></FONT><B><FONT face=serif size=2>(Exact name of registrant as specified in its
charter)</FONT></B><FONT face=serif size=2></FONT></P>
<P align=justify>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%"><FONT face=serif>Arizona</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="89%"><FONT face=serif>000-11412</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%"><FONT face=serif>86-0411215</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="5%"><B><FONT face=serif>(State or other
      jurisdiction</FONT></B></TD>
    <TD noWrap align=center width="89%"><B><FONT face=serif>(Commission</FONT></B></TD>
    <TD noWrap align=center width="5%"><B><FONT face=serif>(IRS
      Employer</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="5%"><B><FONT face=serif>of
      incorporation)</FONT></B></TD>
    <TD noWrap align=center width="89%"><B><FONT face=serif>File
      Number)</FONT></B></TD>
    <TD noWrap align=center width="5%"><B><FONT face=serif>Identification
      No.</FONT></B></TD></TR>
  <TR>
    <TD noWrap align=center width="5%">&nbsp;</TD>
    <TD noWrap align=center width="89%">&nbsp;</TD>
    <TD noWrap align=center width="5%">&nbsp;</TD></TR>
  <TR>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="94%" colSpan=2>131 South Clark Drive, Tempe, Arizona&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%">85281</TD></TR>
  <TR>
    <TD noWrap align=left width="94%" colSpan=2><B>(Address of principal
      executive offices)</B>&nbsp;</TD>
    <TD noWrap align=center width="5%"><B>(Zip
Code)</B></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD noWrap width="20%"><B>Registrant&#146;s telephone number, including area
      code</B></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="80%">
      <P align=center>(480) 967-5146</P></TD></TR></TABLE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center width="100%" colSpan=3>
      <P align=center>Not applicable.</P></TD></TR>
  <TR>
    <TD align=center width="100%" colSpan=3>
      <P align=center><B>(Former name or former address, if changed since last
      report.)</B></P></TD></TR>
  <TR>
    <TD align=center width="40%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 2pt solid" align=center width="20%">&nbsp; </TD>
    <TD align=center width="40%">&nbsp;</TD></TR></TABLE>
<P align=justify><FONT face=serif size=2>Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions (<I>see</I> General
Instruction A.2. below):</FONT> <FONT face=sans-serif></FONT></P>
<P align=justify><FONT face=sans-serif size=2><FONT face=Wingdings>o</FONT></FONT><FONT face=sans-serif size=2>&nbsp; </FONT><FONT face=serif size=2>Written communications pursuant to Rule 425 under Securities
Act (17 CFR 230.425)</FONT> <FONT face=sans-serif size=2></FONT></P>
<P align=justify><FONT face=sans-serif size=2><FONT face=Wingdings>o</FONT><FONT face=sans-serif size=2>&nbsp; </FONT></FONT><FONT face=serif size=2>Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)</FONT> <FONT face=sans-serif size=2></FONT></P>
<P align=justify><FONT face=sans-serif size=2><FONT face=Wingdings>o</FONT><FONT face=sans-serif size=2>&nbsp; </FONT></FONT><FONT face=serif size=2>Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))</FONT></P>
<P align=justify><FONT face=sans-serif size=2><FONT face=Wingdings>o</FONT><FONT face=sans-serif size=2>&nbsp; </FONT></FONT><FONT face=serif size=2>Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))</FONT></P>
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<P align=center><B><U><FONT face=serif size=2>Explanatory
Note</FONT></U></B><B><FONT face=serif size=2> </FONT></B></P>
<P align=justify><FONT face=serif size=2>On October 11, 2007 Amtech Systems,
Inc. (the &#147;Company&#148;) filed a Current Report on Form 8-K with the Securities and
Exchange Commission regarding the acquisition through its wholly-owned
subsidiary, Tempress Holding B.V., of R2D Ingenierie (&#147;R2D&#148;), a solar cell and
semiconductor automation equipment manufacturing company located in Montpellier,
France. This amendment is being filed to amend and supplement Item 9.01 of the
Company&#146;s Current Report on Form 8-K dated October 8, 2007, to include the
historical financial statements of R2D, and the unaudited pro forma financial
information required pursuant to Article 11 of Regulation S-X. </FONT></P>
<P align=justify><B><FONT face=serif size=2>Item 9.01 Financial Statements and
Exhibits.</FONT></B><FONT face=serif size=2> </FONT></P>
<TABLE style="text-align: justify" cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR>
    <TD vAlign=top noWrap width="2%">
      <P align=justify><FONT face=serif size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P></TD>
    <TD vAlign=top width="98%" colSpan=3>
      <P align=justify><FONT face=serif size=2>Financial statements of
      businesses acquired.</FONT></P>
      <P align=justify><FONT face=serif size=2>Attached hereto as Exhibit 99.3
      and incorporated herein by reference. </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="2%">&nbsp;</TD>
    <TD vAlign=top width="98%" colSpan=3></TD></TR>
  <TR>
    <TD vAlign=top width="2%">
      <P align=justify><FONT face=serif size=2>(b) </FONT></P></TD>
    <TD vAlign=top width="98%" colSpan=3>
      <P align=justify><FONT face=serif size=2>Pro forma financial information.
      </FONT></P>
      <P align=justify><FONT face=serif size=2>Attached hereto as Exhibit 99.4
      and incorporated herein by reference. </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="2%">&nbsp;</TD>
    <TD vAlign=top width="98%" colSpan=3></TD></TR>
  <TR>
    <TD vAlign=top width="2%">
      <P align=justify><FONT face=serif size=2>(d) </FONT></P></TD>
    <TD vAlign=top width="98%" colSpan=3>
      <P align=justify><FONT face=serif size=2>Exhibits. </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="2%"></TD>
    <TD vAlign=top width="98%" colSpan=3>&nbsp;</TD></TR>
  <TR>
    <TD vAlign=top width="2%"></TD>
    <TD vAlign=top noWrap width="5%" colSpan=2>
      <P align=justify><FONT face=serif size=2>Exhibit 23.1*&nbsp;&nbsp;
      &nbsp;&nbsp;&nbsp;&nbsp;</FONT></P></TD>
    <TD vAlign=top width="93%">
      <P align=justify><FONT face=serif size=2>Consent of Audit et Conseil
      Union. </FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="2%">&nbsp;</TD>
    <TD vAlign=top noWrap width="5%" colSpan=2></TD>
    <TD vAlign=top width="93%"></TD></TR>
  <TR>
    <TD vAlign=top width="2%"></TD>
    <TD vAlign=top noWrap width="5%" colSpan=2>
      <P align=justify><FONT face=serif size=2>Exhibit 99.1** </FONT></P></TD>
    <TD vAlign=top width="93%">
      <P align=justify><FONT face=serif size=2>Stock Purchase and Sale
      Agreement, by and among Tempress Holdings, B.V., R2D Ingenierie SAS and
      the shareholders of R2D Ingenierie SAS, dated October 8,
    2007.</FONT></P></TD></TR>
  <TR>
    <TD vAlign=top width="2%" ></TD>
    <TD vAlign=top noWrap width="5%"  colSpan=2>&nbsp;</TD>
    <TD vAlign=top width="93%" ></TD></TR>
  <TR>
    <TD vAlign=top width="2%" ></TD>
    <TD vAlign=top noWrap width="5%"  colSpan=2><FONT size=2>Exhibit 99.2**</FONT></TD>
    <TD vAlign=top width="93%" ><FONT size=2>Press release of
      Amtech Systems, Inc., dated October 9, 2007.</FONT></TD></TR>
  <TR>
    <TD vAlign=top width="2%" ></TD>
    <TD vAlign=top noWrap width="5%"  colSpan=2>&nbsp;</TD>
    <TD vAlign=top width="93%" ></TD></TR>
  <TR>
    <TD vAlign=top width="2%" ></TD>
    <TD vAlign=top noWrap width="5%"  colSpan=2><FONT size=2>Exhibit 99.3*</FONT></TD>
    <TD vAlign=top width="93%" ><FONT size=2>Audited financial
      statements of R2D.</FONT></TD></TR>
  <TR>
    <TD vAlign=top width="2%" ></TD>
    <TD vAlign=top noWrap width="5%"  colSpan=2>&nbsp;</TD>
    <TD vAlign=top width="93%" ></TD></TR>
  <TR>
    <TD vAlign=top width="2%" ></TD>
    <TD vAlign=top noWrap width="5%"  colSpan=2><FONT size=2>Exhibit 99.4*</FONT></TD>
    <TD vAlign=top width="93%" ><FONT size=2>Pro forma financial
      information.</FONT></TD></TR>
  <TR>
    <TD vAlign=top width="2%" ></TD>
    <TD vAlign=top noWrap width="5%"  colSpan=2>&nbsp;</TD>
    <TD vAlign=top width="93%" ></TD></TR>
  <TR>
    <TD vAlign=top width="2%" ></TD>
    <TD vAlign=top noWrap width="2%" ><FONT size=2>*</FONT></TD>
    <TD vAlign=top width="96%"  colSpan=2><FONT size=2>Filed
      herewith.</FONT></TD></TR>
  <TR>
    <TD vAlign=top width="2%" ></TD>
    <TD vAlign=top noWrap width="2%" ><FONT size=2>**</FONT></TD>
    <TD vAlign=top width="96%"  colSpan=2><FONT size=2>Incorporated by reference to the Company&#146;s Current Report on Form
      8-K filed with the Securities and Exchange Commission on October 11, 2007
      (File No. 000-11412).</FONT></TD></TR></TABLE>
<P align=justify><B><I><FONT face=serif size=2></FONT></I></B>&nbsp;</P>
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<P align=center>
<B><FONT face=serif size=2>SIGNATURES</FONT></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized. </FONT></P>
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  <TR vAlign=bottom>
    <TD noWrap align=left width="49%">&nbsp; </TD>
    <TD noWrap align=left width="50%" colSpan=2><FONT face=serif size=2>AMTECH
      SYSTEMS, INC.</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=3>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"><FONT face=serif size=2>Date: November
      2, 2007<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=left width="50%" colSpan=2><FONT face=serif size=2>By:&nbsp;<U>&nbsp; /s/ Bradley C. Anderson</U><FONT size=3>
      </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%">&nbsp; </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:&nbsp;</FONT>
    </TD>
    <TD noWrap align=left width="49%"><FONT face=serif size=2>Bradley C.
      Anderson</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%">&nbsp; </TD>
    <TD noWrap align=left width="1%"><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:</FONT>
    </TD>
    <TD noWrap align=left width="49%"><FONT face=serif size=2>Vice President
      and Chief</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%">&nbsp; </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="49%"><FONT face=serif size=2>Financial
      Officer</FONT>&nbsp; </TD></TR></TABLE><BR>
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<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>2
<FILENAME>exhibit23-1.htm
<DESCRIPTION>CONSENT OF AUDIT ET CONSEIL UNION
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<BODY bgColor=#ffffff><P align=right><B><FONT face=serif size=2>Exhibit 23.1</FONT></B></P>

<P align=center><B><FONT face=serif size=2>INDEPENDENT AUDITORS&#146; CONSENT</FONT></B></P>

<P align=justify><FONT face=serif size=2>To the Stockholders <BR>Amtech Systems, Inc.:</FONT></P>

<P align=justify><FONT face=serif size=2>We consent to the use of our report, dated September 3, 2007 with respect to the balance sheets of R2D Ingenierie SAS as of December 31, 2006 and 2005 and the related statements of operations, stockholders&#146; equity and cash flows for the years then ended included elsewhere in this Form 8-K/A.</FONT></P>

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<TR vAlign=bottom>
<TD align=left width="50%">&nbsp;</TD>
<TD align=left width="22%"></TD>
<TD align=left width="27%"><FONT size=2>/s/ AUDIT ET CONSEIL UNION</FONT>&nbsp;</TD></TR>
<TR>
<TD width="50%"><FONT size=1>&nbsp;</FONT></TD>
<TD width="22%"><FONT size=1>&nbsp;</FONT></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" width="27%"><FONT size=1>&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
<TD align=left width="50%"><FONT face=serif size=2>Paris, France</FONT>&nbsp;</TD>
<TD align=left width="49%" colSpan=2>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD align=left width="50%"><FONT face=serif size=2>November 1, 2007</FONT>&nbsp;</TD>
<TD align=left width="49%" colSpan=2>&nbsp;</TD></TR>
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<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>3
<FILENAME>exhibit99-3.htm
<DESCRIPTION>AUDITED FINANCIAL STATEMENTS OF R2D
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<P align=right><B><FONT face=serif size=2>Exhibit 99.3 </FONT></B></P>
<P align=center><B><FONT face=serif size=2>Audited Financial Statements of R2D
Ingenierie SAS </FONT></B></P>
<P align=center><B><FONT face=serif size=2>REPORT OF INDEPENDENT PUBLIC
ACCOUNTANTS</FONT></B></P>
<P align=justify><FONT face=serif size=2>To Amtech Systems, Inc : </FONT></P>
<P align=justify><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; We
have audited the accompanying balance sheets of S.A.S. R2D INGENIERIE as of
December 31, 2006 and 2005, and the related statements of income, stockholder&#146;s
investment and cash flows for the years then ended converted into US Dollars.
These financial statements are the responsibility of the company&#146;s management.
Our responsibility is to express an opinion on these financial statements based
on our audits.</FONT></P>
<P align=justify><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; We
conducted our audits in accordance with international auditing standards. Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our
opinion.</FONT></P>
<P align=justify><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In
our opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of S.A.S. R2D INGENIERIE as of
December 31, 2006 and 2005, and the results of its operations and its cash flows
for the years then ended in conformity with generally accepted accounting
principles in the United States of America.</FONT></P>
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  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"><FONT face=serif size=2>September
      3,</FONT><SUP><FONT face=serif size=2> </FONT></SUP><FONT face=serif size=2>2007</FONT>&nbsp; </TD>
    <TD noWrap align=left width="50%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%">&nbsp; </TD>
    <TD noWrap align=left width="50%"><B><FONT face=serif size=2>AUDIT ET
      CONSEIL UNION</FONT></B>&nbsp; </TD></TR>
  <TR>
    <TD width="99%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%">&nbsp; </TD>
    <TD noWrap align=left width="50%"><U><FONT face=serif size=2>/s/ Jean-Marc
      Fleury</FONT></U>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%">&nbsp; </TD>
    <TD noWrap align=left width="50%"><B><FONT face=serif size=2>Jean-Marc
      FLEURY</FONT></B>&nbsp; </TD></TR></TABLE><BR>
<P align=center><FONT face=serif size=2>1</FONT></P>
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<P align=justify><B><FONT face=serif size=2>R2D ING&#201;NI&#201;RIE SAS <BR>Balance Sheet
<BR>In US Dollars</FONT></B></P>
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  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT size=+0></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=6><FONT size=+0><B><FONT face=serif size=1>Years
      ende</FONT></B><B><FONT face=serif size=1>d De</FONT></B><B><FONT face=serif size=1>cember 31,</FONT></B></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT size=+0></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%" colSpan=3><FONT size=+0><B><FONT face=serif size=1>2006</FONT></B>
      </FONT><FONT size=+0></FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="2%" colSpan=2><FONT size=+0><B><FONT face=serif size=1>2005</FONT></B></FONT>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>Current Assets</FONT></B></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents</FONT></FONT>
</TD>
    <TD noWrap align=right width="1%"><FONT size=2>$</FONT><FONT size=3>
      </FONT></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>835,300</FONT> </FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"><FONT size=2>$<FONT size=3>
      </FONT></FONT></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>1,213,637</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable - less
      allowance for doubtful accounts of $ 21,770</FONT></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (December 31, 2005 - $ 16,117)</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>1,463,163</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>670,439</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Inventories</FONT></FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>895,022</FONT> </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>659,781</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax assets -
      current</FONT></FONT>&nbsp;</TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>18,477</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&#151;</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Financial assets</FONT></FONT> </TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>&#151;</FONT> </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>264,035</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Other</FONT></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>381,205</FONT>
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>371,789</FONT>
      </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
      current assets</FONT></FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>3,593,167</FONT> </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>3,179,681</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>Deferred tax assets - non current</FONT></B> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>3,793</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>3,205</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT size=+0><B><FONT face=serif size=2>Property, Plant and Equipment - Net</FONT></B> </FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>52,075</FONT> </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>85,774</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>Financial assets</FONT></B></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>11,403</FONT>
    </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>10,230</FONT>
    </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; <B>Total Assets</B></FONT></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%"><FONT size=2>$<FONT size=3> </FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>3,660,439</FONT>
    </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%"><FONT size=2>$<FONT size=3> </FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>3,278,889</FONT></FONT>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2><U>Liabilities and Stockholders&#146;
      Equity</U></FONT></B></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT size=+0><B><FONT face=serif size=2>Current Liabilities</FONT></B></FONT> </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT size=+0></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable</FONT></FONT>
    </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2>$<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>1,046,344</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2>$<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>568,456</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Bank loans and current maturities of
      long-term debt</FONT></FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>50,387</FONT> </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>288,875</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Payable to
      shareholders</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>942,619</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>27,274</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Accrued compensation and related
      taxes</FONT> </FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>280,927</FONT> </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>214,273</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Accrued warranty
      expense</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>30,367<FONT size=3> </FONT></FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>27,241<FONT size=3> </FONT></FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Deferred profit</FONT></FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>51,492</FONT> </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>84,092</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Deferred tax liabilities -
      current portion</FONT> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&#151;<FONT size=3> </FONT></FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>311</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Long-Term obligation - current
      portion</FONT> </FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>&#151;</FONT> </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>130,284</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Other accrued
      liabilities</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>11,378<FONT size=3> </FONT></FONT></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>9,615</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Income taxes payable</FONT></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>71,944</FONT> </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>115,814</FONT>
  </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Total current liabilities</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>2,485,458</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>1,466,237</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT size=+0><B><FONT face=serif size=2>Commitments, Contingencies and Subsequent Event</FONT></B></FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2><FONT size=3></FONT></FONT></FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2><FONT size=3></FONT></FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>Stockholders&#146; Equity</FONT></B></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Common stock</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>118,532</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>118,532</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Legal reserve</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>11,870</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>11,870</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Accumulated other comprehensive
      income</FONT> </FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>295,041</FONT> </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>129,218</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Retained
    earnings</FONT></FONT>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>749,537</FONT>
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" vAlign=top noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>1,553,032</FONT></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%"><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total
      stockholders&#146; equity</FONT></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>1,174,981</FONT>
    </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>1,812,652</FONT></FONT>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="94%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>Total Liabilities and Stockholders&#146;
      Equity</FONT></B></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2>$<FONT size=3> </FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>3,660,439</FONT>
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2>$<FONT size=3> </FONT></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>3,278,889</FONT></FONT> </TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>The accompanying notes are an integral
part of these financial statements</FONT></P>
<P align=center><FONT face=serif size=2>2</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><B><FONT face=serif size=2>R2D ING&#201;NI&#201;RIE SAS <BR>Statement of
Operations <BR>In US Dollars</FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="92%"><FONT size=+0></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="8%" colSpan=6><FONT size=+0><B><FONT face=serif size=1>Years
      ende</FONT></B><B><FONT face=serif size=1>d De</FONT></B><B><FONT face=serif size=1>cember 31,</FONT></B></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%"><FONT size=+0></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%" colSpan=3><FONT size=+0><B><FONT face=serif size=1>2006</FONT></B>
      </FONT><FONT size=+0></FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT size=+0><B><FONT face=serif size=1>2005</FONT></B></FONT>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>Revenues, net of returns and allowances</FONT></FONT>
</TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2>$</FONT><FONT size=3> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>4,882,652</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2>$<FONT size=3> </FONT></FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>3,179,953</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%"><FONT size=+0><FONT face=serif size=2>Cost of sales</FONT></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>3,311,965</FONT>
    </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>1,968,287</FONT></FONT>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Gross profit</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>1,570,687</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>1,211,666</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%"><FONT size=+0><FONT face=serif size=2>Selling expenses</FONT></FONT> </TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>561,471</FONT> </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>463,577</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>General and Administrative expenses</FONT></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>212,233</FONT>
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>169,811</FONT>
      </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%"><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Operating income</FONT></FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>796,982</FONT> </FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>578,278</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>Interest and other income (expense), net</FONT></FONT>
    </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>(165,920</FONT>
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>)</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>89,255</FONT>
    </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%"><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Income before income taxes</FONT></FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>631,062</FONT> </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>667,533</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>Income tax provision</FONT></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>179,459</FONT>
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>205,869</FONT>
      </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%"><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; <B>Net income</B></FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%"><FONT size=2>$</FONT><FONT size=3> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>451,603</FONT> </FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%"><FONT size=2>$</FONT><FONT size=3> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>461,664</FONT>
  </FONT></TD></TR>
  <TR>
    <TD noWrap width="100%" colSpan=7><FONT size=+0>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>Earnings Per Share:</FONT></B></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%"><FONT size=+0><FONT face=serif size=2>Basic earnings per share</FONT></FONT> </TD>
    <TD noWrap align=right width="1%"><FONT size=2>$</FONT><FONT size=3>
      </FONT></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>3.76</FONT> </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=2>$</FONT><FONT size=3>
      </FONT></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>3.85</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>Weighted average shares outstanding</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>120,000</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>120,000</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%"><FONT size=+0><FONT face=serif size=2>Diluted earnings per share</FONT></FONT> </TD>
    <TD noWrap align=right width="1%"><FONT size=2>$</FONT><FONT size=3>
      </FONT></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>3.76</FONT> </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=2>$</FONT><FONT size=3>
      </FONT></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>3.85</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>Weighted average shares outstanding</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>120,000</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>120,000</FONT> </FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>The accompanying notes are an integral
part of these financial statements</FONT></P>
<P align=center><FONT face=serif size=2>3</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><B><FONT face=serif size=2>R2D ING&#201;NI&#201;RIE SAS
<BR></FONT></B><B><FONT face=serif size=2>Statement of Stockholders&#146;
Equity<BR>US Dollars</FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="68%"><FONT size=+0></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="8%" colSpan=3><FONT size=+0><B><FONT face=serif size=1>Common
      s</FONT></B><B><FONT face=serif size=1>tock</FONT></B></FONT> </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="3%"><FONT size=+0></FONT></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="6%" colSpan=2><FONT size=+0><B><FONT face=serif size=1>Accumulated</FONT></B></FONT> </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="3%" colSpan=2><FONT size=+0></FONT></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="3%"></TD>
    <TD noWrap align=center width="1%"><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="68%"><FONT size=+0></FONT></TD>
    <TD noWrap align=center width="3%"><FONT size=+0><B><FONT face=serif size=1>Number</FONT></B></FONT> </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="3%"><FONT size=+0></FONT></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="3%"><FONT size=+0></FONT></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="6%" colSpan=2><FONT size=+0><B><FONT face=serif size=1>other</FONT></B></FONT> <FONT size=+0></FONT></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="3%" colSpan=2><FONT size=+0></FONT></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT size=+0><B><FONT face=serif size=1>Total</FONT></B></FONT> <FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="68%"><FONT size=+0></FONT></TD>
    <TD noWrap align=center width="3%"><FONT size=+0><B><FONT face=serif size=1>of</FONT></B></FONT> </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="3%"><FONT size=+0><B><FONT face=serif size=1>Amount</FONT></B></FONT> </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="3%"><FONT size=+0><B><FONT face=serif size=1>Legal</FONT></B></FONT> </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="6%" colSpan=2><FONT size=+0><FONT face=serif size=1><B>comprehensive</B></FONT></FONT> </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="3%" colSpan=2>&nbsp;<B><FONT size=1>Retained</FONT></B> </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><B><FONT size=1>Stockholders&#146;</FONT></B> <FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="68%"><FONT size=+0></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><FONT size=+0><B><FONT face=serif size=1>s</FONT></B><B><FONT face=serif size=1>hare</FONT></B><B><FONT face=serif size=1>s</FONT></B></FONT> </TD>
    <TD noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><FONT size=+0><B><FONT face=serif size=1>i</FONT></B><B><FONT face=serif size=1>n US</FONT></B><B><FONT face=serif size=1>D</FONT></B></FONT> </TD>
    <TD noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><FONT size=+0><B><FONT face=serif size=1>reser</FONT></B><B><FONT face=serif size=1>ve</FONT></B></FONT> </TD>
    <TD noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=2><FONT size=+0><B><FONT face=serif size=1>i</FONT></B><B><FONT face=serif size=1>ncom</FONT></B><B><FONT face=serif size=1>e</FONT></B>
      </FONT></TD>
    <TD noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%" colSpan=2><FONT size=+0><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><B>earnings</B></FONT></FONT> </TD>
    <TD noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT size=+0><B><FONT face=serif size=1>Equity</FONT></B></FONT> <FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="68%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>Balance at December 31, 2004</FONT></B> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>120,000</FONT></FONT> </TD>
    <TD noWrap align=center width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$118,532</FONT> </FONT></TD>
    <TD noWrap align=center width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$11,870</FONT></FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp; $ 392,140</FONT></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;$ 1,332,688</FONT></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$ 1,855,229</FONT></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="68%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Net income</FONT></FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0></FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0></FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff><FONT size=+0></FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="5%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="2%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>461,664</FONT></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>461,664</FONT></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="68%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Dividends</FONT></FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>(241,320</FONT></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>)</FONT></FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>(241,320</FONT></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>)</FONT></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="68%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; USD translation
      difference</FONT> </FONT></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0></FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0></FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="3%" bgColor=#ffffff><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="5%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>(262,922</FONT></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>)</FONT></FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="2%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>(262,922</FONT></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>)</FONT></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="68%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>Balance at December 31, 2005</FONT></B> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>120,000</FONT></FONT> </TD>
    <TD noWrap align=center width="2%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>118,532</FONT>
      </FONT></TD>
    <TD noWrap align=center width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;
      11,870</FONT></FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>129,218</FONT></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>1,553,032</FONT></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>1,812,652</FONT></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="68%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Net income</FONT></FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0></FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0></FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0></FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="5%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="2%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>451,603</FONT></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>451,603</FONT></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="68%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Dividends</FONT></FONT> </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>(1,255,100</FONT></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>)</FONT></FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>(1,255,100</FONT></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>)</FONT></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="68%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; USD translation
      difference</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="2%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0>&nbsp;</FONT></TD>
    <TD noWrap align=left width="2%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=right width="2%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>(165,824</FONT></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=2>)</FONT> </TD>
    <TD noWrap align=left width="2%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="2%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>(165,824</FONT></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0><FONT size=2>)</FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="68%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>Balance at December 31, 2006</FONT></B> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>120,000</FONT></FONT> </TD>
    <TD noWrap align=center width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$118,532</FONT>
      </FONT></TD>
    <TD noWrap align=center width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$11,870</FONT></FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;
      $&nbsp;295,041</FONT></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;$&nbsp;&nbsp;&nbsp; 749,537</FONT></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$
      1,174,981</FONT></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>The accompanying notes are an integral
part of these financial statements</FONT></P>
<P align=center><FONT face=serif size=2>4</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><B><FONT face=serif size=2>R2D ING&#201;NI&#201;RIE SAS <BR>Statement of
Cash Flows <BR>In US Dollars</FONT></B></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="93%"><FONT size=+0></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=7><FONT size=+0><B><FONT face=serif size=1>Years
      end</FONT></B><B><FONT face=serif size=1>ed Dece</FONT></B><B><FONT face=serif size=1>mber 31,</FONT></B> </FONT><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%"><FONT size=+0></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%" colSpan=3><FONT size=+0><B><FONT face=serif size=1>2006</FONT></B>
      </FONT><FONT size=+0></FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%" colSpan=3><FONT size=+0><B><FONT face=serif size=1>2005</FONT></B>
      </FONT><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>Operating Activities</FONT></B></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%"><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Net income</FONT></FONT> </TD>
    <TD noWrap align=right width="1%"><FONT size=2>$</FONT><FONT size=3>
      </FONT></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>451,603</FONT> </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=2>$</FONT><FONT size=3>
      </FONT></TD>
    <TD noWrap align=right width="1%"><FONT size=+0><FONT face=serif size=2>461,664</FONT> </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net
      income to net cash provided by</FONT></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      (used in) operating activities:</FONT></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Depreciation and amortization</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>24,564</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>(74,530</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>)</FONT></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT size=+0><FONT size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face=serif size=2>Provision for doubtful accounts</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>3,620</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>1,599</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Deferred income taxes</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>(18,120</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>)</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>110</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Other</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>208,894</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>141,379</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and
      liabilities:</FONT></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Accounts receivable</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>(628,545</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>)</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>544,984</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Inventories</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>(463,337</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>)</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>(542,579</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>)</FONT></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Accrued income taxes</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>(55,640</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>)</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>72,307</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Prepaid expenses and other assets</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>18,514</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>(39,641</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>)</FONT></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Accounts payable</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>392,634</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>75,574</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Accrued liabilities and customer deposits</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>33,727</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>6,548</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      Deferred profit</FONT></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>48,993</FONT>
    </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>88,423</FONT>
    </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating
      activities</FONT></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>16,907</FONT>
    </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>735,839</FONT>
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>Investing Activities</FONT></B></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Purchases of property, plant
      and equipment</FONT></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>(940</FONT>
    </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>)</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>(10,997</FONT>
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>)</FONT></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in investing
      activities</FONT></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>(940</FONT>
    </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>)</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>(10,997</FONT>
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>)</FONT></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#ffffff><FONT size=+0><B><FONT face=serif size=2>Financing Activities</FONT></B></FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0></FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Preferred stock cash dividends
      paid</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>(1,255,100</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>)</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>(241,320</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>)</FONT></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Borrowings on long-term
      obligations</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>(138,184</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>)</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>(112,085</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>)</FONT></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Net short-term
      borrowings</FONT> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>885,963</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>(372,551</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>)</FONT></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by financing
      activities</FONT></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>(508,441</FONT>
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>)</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>(733,714</FONT>
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>)</FONT></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>Effect of Exchange Rate Changes on Cash</FONT></B>
      </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>(114,137</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>)</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>185,294</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#ffffff><FONT size=+0><B><FONT face=serif size=2>Net Decrease in Cash and Cash
      Equivalents</FONT></B></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>(378,336</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>)</FONT></FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>(194,166</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>)</FONT></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT size=+0><B><FONT face=serif size=2>Cash and Cash Equivalents, Beginning of
      Year</FONT></B></FONT> </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>1,213,637</FONT>
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>1,407,803</FONT>
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#ffffff><FONT size=+0><B><FONT face=serif size=2>Cash and Cash Equivalents, End of Year</FONT></B>
    </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#ffffff><FONT size=2>$</FONT><FONT size=3> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>835,301</FONT>
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#ffffff></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#ffffff><FONT size=2>$</FONT><FONT size=3> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#ffffff><FONT size=+0><FONT face=serif size=2>1,213,637</FONT>
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#ffffff><FONT size=+0></FONT></TD></TR></TABLE><BR>
<P align=justify><FONT face=serif size=2>The accompanying notes are an integral
part of these financial statements</FONT></P>
<P align=center><FONT face=serif size=2>5</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><B><FONT face=serif size=2>Notes to the Financial
Statements</FONT></B></P>
<P align=justify><B><FONT face=serif size=2>For the Years Ended December 31,
2006 and 2005</FONT></B></P>
<P align=justify><B><FONT face=serif size=2>1. Summary of Significant Accounting
Policies</FONT></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=2>Nature
of operations and basis of presentation</FONT></B><FONT face=serif size=2> &#151; SAS
R2D Ingenierie (the &#147;Company&#148;) manufactures robotic systems for the
semiconductor and the solar industries. The Company sells these products to
manufacturers of silicon wafers, semiconductors and solar cells worldwide. In
addition, the Company provides semiconductor manufacturing support
services.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=2>Use of
Estimates</FONT></B><FONT face=serif size=2> &#151; The preparation of financial
statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenue and expenses during the reporting period. Actual
results could differ from those estimates.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=2>Foreign currency translation</FONT></B><FONT face=serif size=2> &#151; The
Financial Statements are presented in US Dollar which is the Company&#146;s
presentation currency. The Company&#146;s functional currency (the currency of the
primary economic environment in which the Company operates) is Euro.</FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The results and financial position
of the Company are translated into the presentation currency as
follows:</FONT></P>
<UL style="TEXT-ALIGN: justify">
  <LI><FONT size=2><FONT face=serif>Assets and liabilities of the balance sheet
  are translated at the closing rate at the balance sheet date,<BR>&nbsp;</FONT>
  </FONT>
  <LI><FONT size=2><FONT face=serif>Income and expenses of the income statement
  are translated at annual average exchange rate,<BR>&nbsp;</FONT> </FONT>
  <LI><FONT size=2><FONT face=serif>The translation differences arising are
  reported in other comprehensive income included in Stockholders&#146;</FONT> <FONT face=serif>Equity.</FONT></FONT> </LI></UL>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=2>Revenue Recognition</FONT></B><FONT face=serif size=2> &#151; Revenue is
recognized upon shipment of the Company&#146;s products equal to the sales price less
the greater of (i) the fair value of undelivered services and (ii) the
contingent portion of the sales price, which is generally 10-20% of the total
contract price. The entire cost of the equipment relating to proven technology
is recorded upon shipment. The remaining contractual revenue, deferred costs,
and installation costs are recorded upon successful installation of the
product.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Revenue
from services is recognized as the services are performed. Revenue from prepaid
service contracts is recognized ratably over the life of the contract. Revenue
from spare parts is recorded upon shipment.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=2>Accounts receivable and allowance for doubtful accounts</FONT></B><FONT face=serif size=2> &#151; Accounts receivable are recorded at the gross sales price
of products sold to customers on trade credit terms. Accounts receivable are
considered past due when payment has not been received from the customer within
the normal credit terms extended to that customer. Accounts are charged-off
against the allowance when the probability of collection is remote.</FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The following is a summary of the
activity in the Company&#146;s allowance for doubtful accounts:</FONT></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="93%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=7><FONT size=+0><FONT face=serif size=1><B>Years Ended December
      31,</B></FONT>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%" colSpan=3>&nbsp; <FONT face=serif size=1><FONT size=3></FONT><B>2006</B></FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%" colSpan=3>&nbsp; <FONT face=serif size=1><FONT size=3></FONT><B>2005</B></FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face=serif size=2>(in USD)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%"><FONT face=serif size=2>Balance at
      beginning of year</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%"><FONT size=3></FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>$16,117</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=3>&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>$16,815</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face=serif size=2>Charged to expense</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>3,619</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>1,599</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%"><FONT face=serif size=2>Write-offs</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>&#151;</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>&#151;</FONT> </TD>
    <TD noWrap align=right width="1%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0><FONT face=serif size=2>USD translation difference</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>2,034</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>(2,297</FONT> </TD>
    <TD style="PADDING-BOTTOM: 1pt" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>)</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="93%"><FONT face=serif size=2>Balance at end
      of year</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%"><FONT size=3>&nbsp;</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%"><FONT face=serif size=2>$21,770</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=3></FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%"><FONT face=serif size=2>$16,117</FONT> </TD>
    <TD noWrap align=right width="1%"></TD></TR></TABLE></DIV><BR>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=2>Concentrations of Credit Risk</FONT></B><FONT face=serif size=2> &#151; The
Company&#146;s financial assets that are exposed to credit risk consist primarily of
cash and cash equivalents and accounts receivables.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>About 98
% of Company&#146;s cash is held at one bank which is a subsidiary of HSBC, one of
the world&#146;s top ranked banks.</FONT></P>
<P align=center><FONT face=serif size=2>6</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Financial
instruments that potentially subject the Company to significant concentrations
of credit risk consist principally of trade accounts receivable. The Company&#146;s
customers consist of first rank manufacturers of semiconductors, semiconductor
wafers and solar cells located throughout the world. Credit risk is managed by
performing ongoing credit evaluations of the customers&#146; financial condition, by
requiring significant deposits where appropriate, and by actively monitoring
collections.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=2>Foreign Currency risk management</FONT></B><FONT face=serif size=2> &#151; The
Company operates internationally and is exposed to foreign exchange risk arising
from various currency exposures primarily with respect to US Dollars. The
Company uses deposit contracts in US Dollars and interest rate swaps to minimise
the potential impact of foreign exchange rate exposures .</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=2>Cash
and cash equivalent</FONT></B><FONT face=serif size=2> &#151; All highly liquid
investments with original maturities of three months or less are classified as
cash and cash equivalents. At 31 December 2006 the carrying value of cash and
cash equivalents approximated their fair values. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=2>Inventories</FONT></B><FONT face=serif size=2> &#151; Inventories are stated
at the lower of cost (first-in, first-out method) or net realizable value. The
components of inventories are as follows:</FONT></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="89%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="11%" colSpan=7><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><B>Years Ended
      Dece</B></FONT><FONT face=serif size=1><B>mber 31,</B></FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><B>2006</B></FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3>&nbsp;<B><FONT face=serif size=1>2005</FONT></B>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>(in USD)</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"><FONT face=serif size=2>Purchased parts
      and raw materials</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>$420,674</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>$339,059</FONT>
    </TD>
    <TD noWrap align=center width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>Work-in-process</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>362,845</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>278,162</FONT> </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"><FONT face=serif size=2>Finished
      goods</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>132,628</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>42,560</FONT> </TD>
    <TD noWrap align=center width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$916,147</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$659,781</FONT> </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD></TR></TABLE></DIV><BR>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=2>Property, Plant and Equipment</FONT></B><FONT face=serif size=2> &#151;
Property plant, and equipment are recorded at cost. Maintenance and repairs are
charged to expense as incurred. The cost of property retired or sold and the
related accumulated depreciation are removed from the applicable accounts when
disposition occurs and any gain or loss is recognized. Depreciation is computed
using the straight-line method. Useful lives for equipment, machinery and
leasehold improvements range from three to seven years; for furniture and
fixtures from five to ten years; and for buildings twenty years.</FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The following is a summary of
property, plant and equipment:</FONT></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="88%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="11%" colSpan=7><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><B>Years Ended
      Dece</B></FONT><FONT face=serif size=1><B>mber 31,</B></FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><B>2006</B></FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3>&nbsp;<B><FONT face=serif size=1>2005</FONT></B>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT face=serif size=2>(in USD)</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%"><FONT face=serif size=2>Land, building
      and leasehold improvements</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>$110,109</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>$&nbsp;
      98,775</FONT> </TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT face=serif size=2>Equipment and machinery</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>215,069</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>192,046</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%"><FONT face=serif size=2>Furniture and
      fixtures</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>34,816</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>31,233</FONT> </TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>359,994</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>322,054</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%"><FONT face=serif size=2>Accumulated
      depreciation and amortization</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>307,919</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>236,280</FONT> </TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp; 52,075</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$ 85,774</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR></TABLE></DIV><BR>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><B>Intangibles</B></FONT><FONT face=serif size=2> &#151; Intangible assets are capitalized and amortized over the
useful life of the asset. </FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The following is a summary of
intangibles:</FONT></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="90%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="10%" colSpan=7><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><B>Years Ended
      Dece</B></FONT><FONT face=serif size=1><B>mber 31,</B></FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=3><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><B>2006</B></FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=3>&nbsp;<B><FONT face=serif size=1>2005</FONT></B>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=serif size=2>(in USD)</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp;</TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%"><FONT face=serif size=2>Software</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="2%"><FONT face=serif size=2>$32,839</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>$29,458</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=serif size=2>Accumulated depreciation and amortization</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>32,839</FONT>
    </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>29,458</FONT></FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%">&nbsp; </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &#151;</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=2>$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
      &#151;</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%"></TD></TR></TABLE></DIV><BR>
<P align=center><FONT face=serif size=2>7</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=2>Warranty</FONT></B><FONT face=serif size=2> &#151; A limited warranty is
provided free of charge, generally for periods of 12 to 24 months to all
purchasers of the Company&#146;s products and systems. Accruals are recorded for
estimated warranty costs at the time revenue is recognized. The following is a
summary of activity in accrued warranty expense:</FONT></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="89%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="11%" colSpan=5><FONT size=+0><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><B>Years Ended December 31,</B></FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=serif size=1><B>2006</B></FONT> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=serif size=1><B>2005</B></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>(in USD)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0 colSpan=2>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"><FONT face=serif size=2>Beginning
      balance</FONT>&nbsp; </TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>$&nbsp;
      27,241</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>$ 31,381</FONT>
    </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>Warranty expenditures</FONT>&nbsp; </TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(28,893</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(28,644</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)<FONT size=3> </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"><FONT face=serif size=2>Reserved
      Adjustment</FONT>&nbsp; </TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>28,893</FONT>
</TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>28,644</FONT>
</TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>USD translation difference</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>3,126</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>(4,140</FONT> </TD>
    <TD style="PADDING-BOTTOM: 1pt" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>)</FONT><FONT size=3> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="89%"><FONT face=serif size=2>Ending
      Balance</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%"><FONT face=serif size=2>$&nbsp; 30,367</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=left width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%"><FONT face=serif size=2>$&nbsp;27,241</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR></TABLE></DIV><BR>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><B>Research and Development
Expenses</B></FONT><FONT face=serif size=2> &#151; Product development costs are
expensed as incurred.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=2>Foreign Currency Transactions and Translation</FONT></B><FONT face=serif size=2> &#151; The functional currency of the Company&#146;s operations is the Euro. Net
income (loss) includes pretax net gains (losses) from foreign currency
transactions of ($62,000) and $105,000 in fiscal 2006 and 2005, respectively.
</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=2>Income
Taxes</FONT></B><FONT face=serif size=2> &#151; The Company files income tax returns
and computes deferred income tax assets and liabilities based upon cumulative
temporary differences between financial reporting and taxable income,
carryforwards available and enacted tax laws.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=2>Fair
Value of Financial Instruments</FONT></B><FONT face=serif size=2> &#151; The carrying
values of the Company&#146;s current financial instruments approximate fair value due
to the short term in which these instruments mature. The carrying values of the
Company&#146;s line of credit (see Note 5) and long-term debt (see Note 6)
approximate fair value because their variable interest rates approximate the
prevailing interest rates for similar debt instruments.</FONT></P>
<P align=justify><B><FONT face=serif size=2>2. Earnings Per Share</FONT></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Basic
earnings per share is computed by dividing net income (loss) available to common
stockholders (net income less accrued preferred stock dividends) by the weighted
average number of common shares outstanding for the period. Diluted earnings per
share is computed similarly to basic earnings per share except that the
denominator is increased to include the number of additional common shares that
would have been outstanding if potentially dilutive common shares had been
issued, and the numerator is based on net income. In the case of a net loss,
diluted earnings per share is calculated in the same manner as basic earnings
per share.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Common
shares relating to stock options where the exercise prices exceeded the average
market price of our common shares during the period were excluded from the
diluted earnings per share computation as the related impact was
anti-dilutive.</FONT></P>
<P align=justify><B><FONT face=serif size=2>3. Line of Credit</FONT></B></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The company has no line of credit as
of December 31, 2005 and December 31, 2006.</FONT></P>
<P align=justify><B><FONT face=serif size=2>4. Long-Term
Obligations</FONT></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>In
December 2005, the Company had an obligation toward OSEO ANVAR related to an
innovation project. OSEO ANVAR is a public organisation which finance the
development of new technology. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
Company reimbursed the last instalment of the repayable loan from OSEO ANVAR for
an amount of $ 138,184 (&euro; 110,000) in 2006.</FONT></P>
<P align=justify><B><FONT face=serif size=2>5. Stockholders&#146;
Equity</FONT></B></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>There are no shares of preferred
stock and no option to purchase common shares.</FONT></P>
<P align=center><FONT face=serif size=2>8</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>As at December 31, 2006, there were
119,900 Common Shares of the Company owned by:</FONT></P>
<UL style="TEXT-ALIGN: justify">
  <LI><FONT size=2><FONT face=serif>Mme Zineb Di Cesare, President of the
  Company, with 59,940 shares,<BR>&nbsp;</FONT> </FONT>
  <LI><FONT face=serif size=2>Mr Robert Di Cesare, Chief executive of the
  company, with 59,960 shares.</FONT></LI></UL>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Dividend policy : the Company has
paid dividends on its common shares:</FONT></P>
<UL style="TEXT-ALIGN: justify">
  <LI><FONT size=2><FONT face=serif>$1,255,100 (&euro; 1,000,000) in
  2006,<BR>&nbsp;</FONT> </FONT>
  <LI><FONT size=2><FONT face=serif>$ 241,320 (&euro; 200,000) in 2005.</FONT>
  </FONT></LI></UL>
<P align=justify><B><FONT face=serif size=2>6. Commitments and
Contingencies</FONT></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=2>Legal
Proceedings</FONT></B><FONT face=serif size=2> &#151; The Company and its
subsidiaries are defendants from time to time in actions for matters arising out
of their business operations. The Company does not believe that any matters or
proceedings presently pending will have a material adverse effect on its
financial position, results of operations or liquidity.</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=2>Operating Leases</FONT></B><FONT face=serif size=2> &#151; The Company leases
building, vehicles and equipment under operating leases. Rental expense under
such operating leases was $ 60,364 and $ 52,212 in fiscal 2006 and 2005
respectively.</FONT></P>
<P align=justify><B><FONT face=serif size=2>7. Major Customers and Foreign
Sales</FONT></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Two
customers accounted for 10% or more of net revenue during fiscal 2006: one
accounted for 14% and the other for 10.2 %. Two customers accounted for 10% or
more of net revenue during fiscal 2005: one accounted for 16% and the other for
14 %.</FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Net revenues for fiscal 2006 and
2005 were to customers in the following geographic regions:</FONT></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="88%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="12%" colSpan=3><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><B>Years Ended
      D</B></FONT><FONT face=serif size=1><B>ecember 31,</B></FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%"><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><B>2006</B></FONT>&nbsp;</TD>
    <TD noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%"><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><B>2005</B></FONT>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#c0c0c0><FONT face=serif size=2>France</FONT>&nbsp; </TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>$1,447,882</FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>$1,200,169</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%"><FONT face=serif size=2>Foreign
      countries</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>3,434,770</FONT> </TD>
    <TD noWrap align=right width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>1,979,784</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="88%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>$4,882,652</FONT> </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>$3,179,953</FONT>
</TD></TR></TABLE></DIV><BR>
<P align=justify><B><FONT face=serif size=2>8. Accumulated other comprehensive
income</FONT></B></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The components of total
comprehensive income were as follows:</FONT></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="92%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="8%" colSpan=4><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><B>Years Ended
      December 31,</B></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><B>2006</B></FONT>&nbsp;</TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><B>2005</B></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT face=serif size=2>Net income for the period</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$451,603</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$ 461,664</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%"><FONT face=serif size=2>Other
      comprehensive income:</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%">&nbsp; </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Currency
      Translation</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>165,823</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>(262,922</FONT> </TD>
    <TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)<FONT size=3>&nbsp;</FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="92%"><FONT face=serif size=2>Total
      comprehensive income for the period</FONT>&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face=serif size=2>$617,426</FONT> </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face=serif size=2>$ 198,742</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR></TABLE></DIV><BR>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
change to accumulated other comprehensive income for two years ended December
31, 2006 were as follows:</FONT></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="83%">&nbsp; </TD>
    <TD noWrap align=center width="10%" colSpan=3><FONT size=+0><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><B>Cumulative</B></FONT>
      </FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="5%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%">&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="10%" colSpan=3><FONT size=+0><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><B>currency transl</B></FONT><FONT face=serif size=1><B>ation</B></FONT> </FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT size=+0><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><B>Total</B></FONT> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face=serif size=2>Balance, December 31, 2004</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$ 392,139</FONT> </FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=+0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$ 392,139</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT face=serif size=2>Change during
      the year</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT size=+0><FONT face=serif size=2>(262,921</FONT>
</FONT></TD>
    <TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="3%"><FONT size=+0><FONT face=serif size=2>)</FONT>&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT size=+0><FONT face=serif size=2>(262,921</FONT>
</FONT></TD>
    <TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><FONT size=+0><FONT face=serif size=2>)</FONT>&nbsp;
  </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face=serif size=2>Balance, December 31, 2005</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>129,218</FONT> </FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=+0>&nbsp;
      </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>129,218</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp;
      </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%"><FONT face=serif size=2>Change during
      the year</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT size=+0><FONT face=serif size=2>165,823</FONT> </FONT></TD>
    <TD noWrap align=left width="3%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT size=+0><FONT face=serif size=2>165,823</FONT> </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0>&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face=serif size=2>Balance, December 31, 2006</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$ 295,041</FONT>
      </FONT></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT size=+0>&nbsp;
      </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$ 295,041</FONT>
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0>&nbsp;
      </FONT></TD></TR></TABLE></DIV><BR>
<P align=center><FONT face=serif size=2>9</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=justify><B><FONT face=serif size=2>9. Income Taxes</FONT></B></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The components of the provision for
income taxes are as follows:</FONT></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="83%">&nbsp; </TD>
    <TD noWrap align=right width="3%">&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="13%" colSpan=4><FONT face=serif size=1><B>Years Ended December 31,</B><FONT size=3> </FONT></FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%">&nbsp; </TD>
    <TD noWrap align=right width="3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><FONT face=serif size=1><B>2006</B><FONT size=3>&nbsp;
      </FONT></FONT></TD>
    <TD noWrap align=center width="3%">&nbsp;&nbsp; &nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%"><B><FONT face=serif size=1>2005</FONT></B> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face=serif size=2>Current:</FONT> </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=2>Domestic state</FONT> </TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="4%"><FONT face=serif size=2>$197,580</FONT>
    </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="5%"><FONT face=serif size=2>$205,758</FONT>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0><FONT face=serif size=2>Deferred:</FONT> </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%">&nbsp; &nbsp; &nbsp; &nbsp;<FONT face=serif size=2>Domestic state</FONT> </TD>
    <TD noWrap align=right width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=2>(18,120</FONT> </TD>
    <TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><FONT face=serif size=2>)</FONT> </TD>
    <TD noWrap align=right width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=2>111</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="83%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>$179,460</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=2>$205,869</FONT>
</TD></TR></TABLE></DIV><BR>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>A
reconciliation of actual income taxes at the expected national corporate income
tax rate of 33.33 percent is as follows: </FONT></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="78%">&nbsp; </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="5%"><FONT size=+0><B><FONT face=serif size=1>Net result</FONT></B> </FONT></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT size=+0>&nbsp;
    </FONT></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="6%" colSpan=2><FONT size=+0><B><FONT face=serif size=1>Income</FONT></B> </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><B><FONT face=serif size=1><U>Tax proof
      2006</U></FONT></B>&nbsp; </TD>
    <TD noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%"><FONT size=+0><B><FONT face=serif size=1>before tax</FONT></B>
      </FONT></TD>
    <TD noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT size=+0><B><FONT face=serif size=1>Tax rate</FONT></B>
      </FONT></TD>
    <TD noWrap align=center width="2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=2><FONT size=+0><B><FONT face=serif size=1>tax</FONT></B>
    </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=2>Income tax at national tax rate</FONT>&nbsp; </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$631,062</FONT> </FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>33.33</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>%</FONT> </FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$210,333</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=serif size=2>Income tax
      credit for research expenses</FONT>&nbsp; </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="5%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=right width="2%">&nbsp;</TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>(3.09</FONT> </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0><FONT face=serif size=2>%)</FONT> </FONT></TD>
    <TD noWrap align=right width="2%"></TD>
    <TD noWrap align=right width="5%"><FONT size=+0><FONT face=serif size=2>(19,528</FONT> </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=2>)</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=2>Income tax at reduced rate(15% instead of 33,33%)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>on an
      amount of 38,120</FONT>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0><FONT size=+0>&nbsp;
      </FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>(1.37</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>%)</FONT> </FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>(8,620</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>)</FONT>
  </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=serif size=2>Other
      items</FONT>&nbsp; </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="5%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=right width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>(0.43</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=+0><FONT face=serif size=2>%)</FONT> </FONT></TD>
    <TD noWrap align=right width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT size=+0><FONT face=serif size=2>(2,726</FONT> </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=2>)</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=2>Income tax provision</FONT>&nbsp; </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$631,062</FONT>
      </FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>28.44</FONT>
    </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>%</FONT> </FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$179,459</FONT>
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR>
    <TD width="98%" colSpan=8>&nbsp; </TD>
    <TD align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%">&nbsp; </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="5%"><FONT size=+0><B><FONT face=serif size=1>Net result</FONT></B>&nbsp; </FONT></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="4%" colSpan=2><FONT size=+0>&nbsp;
    </FONT></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD noWrap align=center width="5%"><FONT size=+0><B><FONT face=serif size=1>Income</FONT></B>&nbsp; </FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><B><FONT face=serif size=1><U>Tax proof
      2005</U></FONT></B>&nbsp; </TD>
    <TD noWrap align=center width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%"><FONT size=+0><B><FONT face=serif size=1>before
      tax</FONT></B>&nbsp; </FONT></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><FONT size=+0><B><FONT face=serif size=1>Tax
      rate</FONT></B></FONT><FONT size=+0> </FONT></TD>
    <TD noWrap align=center width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%"><FONT size=+0><B><FONT face=serif size=1>tax</FONT></B>&nbsp;
      </FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=2>Income tax at national tax rate</FONT>&nbsp; </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$667,533</FONT> </FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>33.33</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>%</FONT> </FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$222,489</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=serif size=2>Income tax
      credit for research expenses</FONT>&nbsp; </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD noWrap align=left width="5%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=right width="2%"></TD>
    <TD noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>(1.88</FONT> </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=+0><FONT face=serif size=2>%)</FONT> </FONT></TD>
    <TD noWrap align=right width="2%"></TD>
    <TD noWrap align=right width="5%"><FONT size=+0><FONT face=serif size=2>(12,582</FONT> </FONT></TD>
    <TD noWrap align=left width="1%"><FONT size=2>)</FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=2>Income tax at reduced rate(15% instead of 33,33%)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>on an
      amount of 38,120</FONT>&nbsp; </TD>
    <TD noWrap align=left width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="5%" bgColor=#c0c0c0><FONT size=+0>&nbsp;
      </FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>(1.28</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>%)</FONT> </FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>(8,546</FONT> </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=2>)</FONT>
  </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%"><FONT face=serif size=2>Other
      items</FONT>&nbsp; </TD>
    <TD noWrap align=left width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="5%"><FONT size=+0>&nbsp; </FONT></TD>
    <TD noWrap align=right width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT size=+0><FONT face=serif size=2>0.68</FONT> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"><FONT size=+0><FONT face=serif size=2>%</FONT> </FONT></TD>
    <TD noWrap align=right width="2%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT size=+0><FONT face=serif size=2>4,508</FONT> </FONT></TD>
    <TD noWrap align=left width="1%"></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=2>Income tax provision</FONT>&nbsp; </TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$667,533</FONT>
      </FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>30.84</FONT>
    </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>%</FONT> </FONT></TD>
    <TD noWrap align=right width="2%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%" bgColor=#c0c0c0><FONT size=+0><FONT face=serif size=2>$205,869</FONT>
      </FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD></TR></TABLE></DIV><BR>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The company has no loss
carryforward.</FONT></P>
<P align=justify><B><FONT face=serif size=2>10. Related Party
transactions</FONT></B></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The
Company is controlled by Mr DI CESARE which owns 50.01% of the Company&#146;s shares.
The remaining 49.99% of the shares are owned by Mrs DI CESARE.</FONT></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The following transactions were
carried out with related parties:</FONT></P>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(a)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%"><FONT face=serif size=2>Current account from related
      parties:</FONT></TD></TR></TABLE>&nbsp;<BR>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="81%">&nbsp; </TD>
    <TD noWrap align=right width="11%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=7><FONT face=serif size=1><B>Years End</B></FONT><FONT face=serif size=1><B>ed December 31,</B></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%">&nbsp; </TD>
    <TD noWrap align=right width="11%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%" colSpan=3><FONT face=serif size=1><B>2006</B></FONT> </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%" colSpan=3><FONT face=serif size=1><B>2005</B></FONT> </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>(in USD)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="11%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><FONT face=serif size=2>Beginning
      balance</FONT>&nbsp; </TD>
    <TD noWrap align=right width="11%"></TD>
    <TD noWrap align=right width="1%"><FONT size=2>$</FONT><FONT size=3>
      </FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>27,274</FONT>
</TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT size=2>$</FONT><FONT size=3>
      </FONT></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>221,116</FONT>
    </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>Change in balance:</FONT>&nbsp; </TD>
    <TD noWrap align=left width="11%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>i. dividends
      declared</FONT>&nbsp; </TD>
    <TD noWrap align=right width="11%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>1,255,100</FONT>
    </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>241,320</FONT>
    </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>ii.
      dividends paid to shareholders</FONT>&nbsp; </TD>
    <TD noWrap align=right width="11%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>(418,321</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>(480,074</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>iii. amounts received from
      shareholders</FONT>&nbsp; </TD>
    <TD noWrap align=right width="11%"></TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>30,043</FONT>
</TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="1%">&nbsp;</TD>
    <TD noWrap align=right width="1%"><FONT face=serif size=2>57,846</FONT>
</TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>USD translation difference</FONT>&nbsp; </TD>
    <TD noWrap align=right width="11%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>48,523</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>(12,933</FONT> </TD>
    <TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>)</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%"><FONT face=serif size=2>Ending
      Balance</FONT>&nbsp; </TD>
    <TD noWrap align=right width="11%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%"><FONT size=2>$</FONT><FONT size=3> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%"><FONT face=serif size=2>942,619</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%"><FONT size=2>$</FONT><FONT size=3> </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%"><FONT face=serif size=2>27,274</FONT> </TD>
    <TD noWrap align=left width="1%">&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="81%" bgColor=#c0c0c0><FONT face=serif size=2>Interests paid to related parties</FONT>&nbsp; </TD>
    <TD noWrap align=right width="11%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2>$</FONT><FONT size=3> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>5,933</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT size=2>$</FONT><FONT size=3> </FONT></TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=2>3,176</FONT> </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;
</TD></TR></TABLE></DIV><BR>
<P align=center><FONT face=serif size=2>10</FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE><BR>
<TABLE cellSpacing=0 cellPadding=0 border=0>

  <TR>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD vAlign=top noWrap><FONT face=serif size=2>(b)</FONT></TD>
    <TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD width="100%"><FONT face=serif size=2>Office rent from non-trading real
      estate investment company (&#147;Soci&#233;t&#233; Civile Immobili&#232;re &#150; SCI&#148;) owned by
      the shareholders of the Company:</FONT></TD></TR></TABLE>&nbsp;<BR>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="80%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="90%">&nbsp; </TD>
    <TD noWrap align=center width="3%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=3><FONT size=+0><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><B>Years Ended December
  31,</B></FONT>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%">&nbsp; </TD>
    <TD noWrap align=center width="3%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><FONT size=+0><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><B>2006</B></FONT>&nbsp;</FONT></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%"><FONT size=+0><FONT face=serif size=1><FONT size=3>&nbsp;</FONT><B>2005</B></FONT>&nbsp;</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=serif size=2>(in USD)</FONT>&nbsp; </TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%"><FONT face=serif size=2>Yearly
      rental</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>$35,732</FONT>
    </TD>
    <TD noWrap align=right width="1%"></TD>
    <TD noWrap align=right width="3%"><FONT face=serif size=2>$32,302</FONT>
    </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="90%" bgColor=#c0c0c0><FONT face=serif size=2>Rental charges</FONT>&nbsp; </TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp; 4,824</FONT> </TD>
    <TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=2>$&nbsp; 4,653</FONT> </TD></TR></TABLE></DIV><BR>
<P align=justify><B><FONT face=serif size=2>11. Subsequent Event</FONT></B></P>
<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>No subsequent event occurred since
December 31, 2006.</FONT></P>
<P align=center><FONT face=serif size=2>11</FONT></P>
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<DOCUMENT>
<TYPE>EX-99.4
<SEQUENCE>4
<FILENAME>exhibit99-4.htm
<DESCRIPTION>PRO FORMA FINANCIAL INFORMATION
<TEXT>
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<HEAD>
<TITLE></TITLE>
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<BODY bgColor=#ffffff><P align=right><B><FONT face=serif size=2>Exhibit 99.4 </FONT></B></P>

<P align=center><B><FONT face=serif size=2>UNAUDITED PRO FORMA <BR></FONT></B><B><FONT face=serif size=2>CONDENSED COMBINED FINANCIAL INFORMATION</FONT></B><FONT face=serif size=2> </FONT></P>

<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Effective October 1, 2007, Amtech Systems, Inc. (the &#147;Company&#148;), completed its acquisition of R2D Ingenierie SAS (&#147;R2D&#148;) (the &#147;Acquisition&#148;). The Unaudited Pro Forma Condensed Combined Statement of Operations for the year ended September 30, 2006 combines the historical consolidated statement of operations of the Company for the year ended September 30, 2006 and the historical consolidated statement of operations of R2D for the year ended December 31, 2006, giving effect to the Acquisition as if it had been completed on October 1, 2005. Although the respective fiscal year ends of the Company and R2D are different, such periods end within 93 days of each other and, therefore, are combined for presentation as permitted under Rule 11.02(c) of Regulation S-X. The Unaudited Pro Forma Condensed Combined Statement of Operations for the nine months ended June 30, 2007 combines the historical consolidated
statements of operations of the Company and R2D for the nine months ended June 30, 2007, giving effect to the Acquisition as if it had been completed on October 1, 2006. The Unaudited Pro Forma Condensed Combined Balance Sheet combines the historical consolidated balance sheets of the Company and R2D, giving effect to the Acquisition as if it had been completed on June 30, 2007.</FONT></P>

<P align=justify><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>This information should be read in conjunction with the: </FONT></P>

<P style="PADDING-LEFT: 40pt" align=justify><FONT face=serif size=2>Accompanying notes to the unaudited pro forma condensed combined financial statements;<BR></FONT><FONT face=serif size=2>Separate historical financial statements of the Company as of and for the year ended September 30, 2006 included in the Company&#146;s Annual Report on Form 10-K for the year ended September 30, 2006;<BR></FONT><FONT face=serif size=2>Separate historical financial statements of the Company for the nine months ended June 30, 2007 included in the Company&#146;s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2007; and<BR></FONT><FONT face=serif size=2>Separate historical financial statements of R2D as of and for the year ended December 31, 2006 included herein. </FONT></P>

<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The unaudited pro forma condensed combined financial statements are provided for informational purposes only. The pro forma financial statements are not necessarily indicative of what the combined company&#146;s financial position or results of operations actually would have been had the acquisition been completed at the dates indicated. In addition, the unaudited pro forma condensed combined financial statements do not purport to project the future financial position or operating results of the combined company. </FONT></P>

<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The unaudited pro forma condensed combined financial statements were prepared using the purchase method of accounting with the Company treated as the acquiror. Accordingly, the historical consolidated financial information has been adjusted to give effect to the impact of the consideration paid in connection with the acquisition. In the Unaudited Pro Forma Condensed Combined Balance Sheet, the Company&#146;s cost to acquire R2D has been allocated to the assets </FONT></P>

<P align=center><FONT size=2>1</FONT></P>

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<PAGE>

<P align=justify><FONT face=serif size=2>acquired and liabilities assumed based upon management&#146;s preliminary estimate of their respective fair values as of the date of acquisition. The difference between the fair value of the consideration paid and the fair value of the assets and liabilities acquired has been recorded as goodwill. The amounts allocated to acquired assets and liabilities in the Unaudited Pro Forma Condensed Combined Balance Sheet are based on management&#146;s preliminary internal valuation estimates and consultations with outside valuation experts. Such amounts are preliminary and are subject to the following: </FONT></P>

<UL><LI>
<P align=justify><FONT face=serif size=2>The Company completing its final internal due diligence and assessment of the assets acquired and the liabilities assumed with the purchase of R2D.<BR></FONT></P>
<LI>
<P align=justify><FONT face=serif size=2>The Company obtaining the final valuation report, from an independent third party, on its tangible, intangible and property, plant and equipment assets. </FONT></P></LI></UL>

<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>Accordingly, the pro forma adjustments to allocate the purchase price are preliminary and have been made solely for the purpose of providing unaudited pro forma condensed combined financial information and are subject to revision based on a final determination of the fair values of the assets acquired and liabilities assumed. </FONT></P>

<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Unaudited Pro Forma Condensed Combined Statements of Operations also include certain purchase accounting adjustments, including items expected to have a continuing impact on the combined results, such as changes in depreciation and amortization expense resulting from the estimated fair values of acquired tangible and intangible assets. </FONT></P>

<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>The Unaudited Pro Forma Condensed Combined Statements of Operations do not include the impact of any potential cost savings or one-time costs that may result from the acquisition. </FONT></P>

<P align=center><FONT face=serif size=2>2</FONT></P>

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<PAGE>

<P align=center>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=2>AMTECH SYSTEMS, INC. AND SUBSIDIARIES<BR></FONT></B><B><FONT face=serif size=2>Unaudited Pro Forma Condensed Combined Balance Sheet<BR></FONT></B><B><FONT face=serif size=2>As of June 30, 2007<BR></FONT></B><FONT face=serif size=1>(in thousands)</FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD noWrap align=left width="78%">&nbsp; </TD>
<TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=1>Amtech</FONT></B> </TD>
<TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=1>R2D</FONT></B> </TD>
<TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD noWrap align=center width="6%" colSpan=3></TD>
<TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD noWrap align=center width="3%" colSpan=2></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%">&nbsp; </TD>
<TD noWrap align=center width="1%"></TD>
<TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=1>Systems,</FONT></B> </TD>
<TD noWrap align=center width="1%"></TD>
<TD noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=1>Ingenierie</FONT></B> </TD>
<TD noWrap align=center width="1%"></TD>
<TD noWrap align=center width="6%" colSpan=3><B><FONT size=1>Pro Forma</FONT></B> </TD>
<TD noWrap align=center width="1%">&nbsp; </TD>
<TD noWrap align=center width="3%" colSpan=2><B><FONT size=1>Pro Forma</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%">&nbsp; </TD>
<TD noWrap align=center width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=1>Inc.</FONT></B><B><SUP><FONT face=serif size=1>(1)</FONT></SUP></B> </TD>
<TD noWrap align=center width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%" colSpan=2><B><FONT face=serif size=1>SAS</FONT></B><B><SUP><FONT face=serif size=1>(2)</FONT></SUP></B> </TD>
<TD noWrap align=center width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=3><B><FONT face=serif size=1>Adjustments</FONT></B> </TD>
<TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="3%" colSpan=2><B><FONT face=serif size=1>Combined</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=1><B>Assets</B></FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%"><FONT face=serif size=1><B>Current Assets</B></FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="4%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=center width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="2%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=1>Cash and cash equivalents</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=1>$</FONT> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>&nbsp;17,872</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=1>$</FONT> </TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>&nbsp;52</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>(5,775</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=1>)</FONT> </TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>(a)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT> </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=1>11,179</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="3%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="3%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="4%"><FONT face=serif size=1>(970</FONT> </TD>
<TD noWrap align=left width="1%"><FONT size=1>)</FONT> </TD>
<TD noWrap align=center width="1%"><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>(c)</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="2%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=1>Accounts receivable, net of allowances</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>12,515</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>1,330</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>(39</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=1>)</FONT> </TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>(b)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=1>13,806</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=1>Inventories</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>6,814</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>1,827</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="4%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=center width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=1>8,641</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=1>Income taxes receivable</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>1,029</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>55</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=1>1,084</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=1>Other</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=1>1,030</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=1>468</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="4%"><FONT face=serif size=1>(400</FONT> </TD>
<TD noWrap align=left width="1%"><FONT size=1>)</FONT> </TD>
<TD noWrap align=center width="1%"><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>(a)</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=1>1,098</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=1>Total current assets</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>39,260</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>3,732</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=1>35,808</FONT> </TD></TR>
<TR>
<TD noWrap width="99%" colSpan=14>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=1><B>Property, Plant and Equipment - Net</B></FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>5,533</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>124</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=1>5,657</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%"><FONT face=serif size=1><B>Intangible Assets - Net</B></FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>1,383</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>12</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="4%"><FONT face=serif size=1>3,178</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=center width="1%"><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>(a)</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=1>4,573</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=1><B>Goodwill</B></FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>817</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>275</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>(a)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=1>1,092</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%"><FONT face=serif size=1><B>Other Assets</B></FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=1>-</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=1>23</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=1>1,550</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=center width="1%"><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>(a)</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=1>1,573</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=1>Total Assets</FONT></B>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=1>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>&nbsp;46,993</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=1>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>&nbsp;3,891</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>(2,181</FONT> </TD>
<TD style="BORDER-BOTTOM: #c0c0c0 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=1>)</FONT> </TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=1>48,703</FONT> </TD></TR>
<TR>
<TD noWrap width="99%" colSpan=14>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=1><B>Liabilities and Stockholders' Equity</B></FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR>
<TD noWrap width="99%" colSpan=14>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=1><B>Current Liabilities</B></FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="3%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="2%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=1>Accounts payable</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=1>$</FONT> </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>&nbsp;3,579</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"><FONT size=1>$</FONT> </TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>&nbsp;1,159</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"><FONT face=serif size=1>$</FONT> </TD>
<TD noWrap align=right width="4%"><FONT face=serif size=1>(39</FONT> </TD>
<TD noWrap align=left width="1%"><FONT size=1>)</FONT> </TD>
<TD noWrap align=center width="1%"><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>(b)</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=1>$</FONT> </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=1>4,699</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=1>Bank loans and current maturities of long-term debt</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>219</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>16</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=1>235</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=1>Accrued compensation and related taxes</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>1,121</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>263</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="4%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=center width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=1>1,384</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=1>Accrued warranty expense</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>283</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>31</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=1>314</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=1>Deferred profit</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>1,781</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>-</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="4%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=center width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=1>1,781</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=1>Customer deposits</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>990</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=1>990</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=1>Accrued commissions</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>593</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>-</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="4%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=center width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=1>593</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=1>Loan payable to shareholders</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>970</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>(970</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=1>)</FONT> </TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>(c)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=1>Other accrued liabilities</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>381</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>-</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="4%"><FONT face=serif size=1>200</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=center width="1%"><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>(a)</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=1>581</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=1>Income taxes payable</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>592</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=1>592</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=1>Total current liabilities</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>9,539</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>2,439</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="4%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=center width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=1>11,169</FONT> </TD></TR>
<TR>
<TD noWrap width="99%" colSpan=14>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=1><B>Long-Term Obligations</B></FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>774</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>80</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=1>854</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=1>Total liabilities</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>10,313</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>2,519</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="4%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=center width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=1>12,023</FONT> </TD></TR>
<TR>
<TD noWrap width="99%" colSpan=14>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=1><B>Commitments and Contingencies</B></FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT> </TD></TR>
<TR>
<TD noWrap width="99%" colSpan=14>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%" bgColor=#c0c0c0><FONT face=serif size=1><B>Stockholders' Equity</B></FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=1>Preferred stock</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>-</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>-</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=right width="1%">&nbsp; </TD>
<TD noWrap align=right width="4%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=center width="1%">&nbsp; </TD>
<TD noWrap align=right width="1%">&nbsp; </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=1>-</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=1>Common stock</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>65</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>118</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>(118</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=1>)</FONT> </TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>(a)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=1>65</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=1>Additional paid-in capital</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>35,412</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="3%"><FONT face=serif size=1>12</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="4%"><FONT face=serif size=1>(12</FONT> </TD>
<TD noWrap align=left width="1%"><FONT size=1>)</FONT> </TD>
<TD noWrap align=center width="1%"><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>(a)</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="2%"><FONT face=serif size=1>35,412</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=1>Accumulated other comprehensive income</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>626</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>322</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>(322</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT size=1>)</FONT> </TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>(a)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=1>626</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=1>Accumulated earnings</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=1>577</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%"><FONT face=serif size=1>920</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="4%"><FONT face=serif size=1>(920</FONT> </TD>
<TD noWrap align=left width="1%"><FONT size=1>)</FONT> </TD>
<TD noWrap align=center width="1%"><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>(a)</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%"><FONT face=serif size=1>577</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%" bgColor=#c0c0c0>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=1>Total stockholders' equity</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>36,680</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="3%" bgColor=#c0c0c0><FONT face=serif size=1>1,372</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=1>36,680</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="78%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face=serif size=1>Total Liabilities and Stockholders' Equity</FONT></B>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT size=1>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face=serif size=1>&nbsp;46,993</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT size=1>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="3%"><FONT face=serif size=1>&nbsp;3,891</FONT> </TD>
<TD noWrap align=right width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=1>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%"><FONT face=serif size=1>(2,181</FONT> </TD>
<TD style="BORDER-BOTTOM: #ffffff 2pt solid" noWrap align=left width="1%"><FONT size=1>)</FONT> </TD>
<TD noWrap align=center width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=1>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="2%"><FONT face=serif size=1>48,703</FONT> </TD></TR>
</TABLE>

<BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(1)</FONT></TD>
<TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD vAlign=top width="100%"><FONT face=serif size=1>Represents the historical consolidated balance sheet of Amtech Systems, Inc. as of June 30, 2007 derived from the unaudited condensed consolidated financial statements of Amtech included in the Quarterly Report on Form 10-Q.</FONT></TD></TR>
<TR>
<TD vAlign=top width="100%" colSpan=3>&nbsp;</TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(2)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD vAlign=top width="100%"><FONT face=serif size=1>Represents the historical balance sheet of R2D Ingenierie SAS as of June 30, 2007 derived from the audited financial statements of R2D included elsewhere in this Form 8-K/A.</FONT></TD></TR>
</TABLE>


<P align=justify><FONT face=serif size=1>The accompanying notes are an integral part of these pro forma condensed combined financial statements. </FONT></P>
<P align=center><FONT face=serif size=2>3</FONT></P>

<HR align=center width="100%" noShade SIZE=2>


<PAGE>

<P align=center><B><FONT face=serif size=2>AMTECH SYSTEMS, INC. AND SUBSIDIARIES<BR></FONT></B><B><FONT face=serif size=2>Unaudited Pro Forma Condensed Combined Statements of Operations<BR>Nine Months Ended June 30, 2007<BR></FONT></B><FONT face=serif size=1>(in thousands except for per share data)</FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD noWrap align=left width="73%">&nbsp; </TD>
<TD noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=1>Amtech</FONT></B> </TD>
<TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD noWrap align=center width="7%" colSpan=3><B><FONT face=serif size=1>R2D</FONT></B> </TD>
<TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD noWrap align=center width="6%" colSpan=3><B><FONT face=serif size=1>Pro Forma</FONT></B> </TD>
<TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD noWrap align=center width="6%" colSpan=3><B><FONT face=serif size=1>Pro Forma</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="73%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=1>Systems, Inc.<SUP>(1)</SUP></FONT></B> </TD>
<TD noWrap align=center width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=3><B><FONT face=serif size=1>Ingenierie SAS<SUP>(2)</SUP></FONT></B></TD>
<TD noWrap align=center width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=3><B><FONT face=serif size=1>Adjustments</FONT></B> </TD>
<TD noWrap align=center width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=3><B><FONT face=serif size=1>Combined</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="73%">&nbsp; </TD>
<TD noWrap align=center width="5%" colSpan=2><FONT face=serif size=1>(Unaudited)</FONT> </TD>
<TD noWrap align=center width="1%"></TD>
<TD noWrap align=center width="6%" colSpan=2><FONT face=serif size=1>(Unaudited)</FONT> </TD>
<TD noWrap align=center width="1%">&nbsp; </TD>
<TD noWrap align=center width="1%"></TD>
<TD noWrap align=center width="1%">&nbsp; </TD>
<TD noWrap align=center width="4%"></TD>
<TD noWrap align=center width="1%">&nbsp; </TD>
<TD noWrap align=center width="1%">&nbsp; </TD>
<TD noWrap align=center width="1%"></TD>
<TD noWrap align=center width="4%">&nbsp;</TD>
<TD noWrap align=center width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="73%" bgColor=#c0c0c0><FONT face=serif size=1>Revenues, net of returns and allowances</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT> </TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>32,864</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT> </TD>
<TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=1>3,697</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT> </TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>(230</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=1>)</FONT> </TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0><FONT face=serif size=1><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp;</FONT>(d)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT> </TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>36,331</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="73%"><FONT face=serif size=1>Cost of sales</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=1>24,180</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=1>2,462</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=1>(230</FONT> </TD>
<TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><FONT face=serif size=1>)</FONT> </TD>
<TD noWrap align=center width="1%"><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>(d)</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=1>26,412</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="73%" bgColor=#c0c0c0><FONT face=serif size=1><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT>Gross profit</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>8,684</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=1>1,235</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>9,919</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR>
<TD width="100%" colSpan=15>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="73%" bgColor=#c0c0c0><FONT face=serif size=1>Selling, general and administrative</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>7,336</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=1>681</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>340</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0><FONT face=serif size=1><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp;</FONT>(e)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>8,357</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="73%"><FONT face=serif size=1>Restructuring Charge</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%"><FONT face=serif size=1>-</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="5%"><FONT face=serif size=1>-</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="4%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=center width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%"><FONT face=serif size=1>-</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="73%" bgColor=#c0c0c0><FONT face=serif size=1>Research and development</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>376</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>376</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="73%">&nbsp;&nbsp;&nbsp;&nbsp; <FONT face=serif size=1>Operating income</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%"><FONT face=serif size=1>972</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="5%"><FONT face=serif size=1>554</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="4%"><FONT face=serif size=1>(340</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=1>)</FONT> </TD>
<TD noWrap align=center width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%"><FONT face=serif size=1>1,186</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR>
<TD width="100%" colSpan=15>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="73%" bgColor=#c0c0c0><FONT face=serif size=1>Interest and other income (expense), net</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>313</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=1>(10</FONT> </TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=1>)<FONT size=3> </FONT></FONT></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>(263</FONT> </TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=1>)</FONT> </TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0><FONT face=serif size=1><FONT style="BACKGROUND-COLOR: #c0c0c0" size=3>&nbsp;</FONT>(f)</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>40</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR>
<TD width="100%" colSpan=15>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="73%" bgColor=#c0c0c0><FONT face=serif size=1>Income before income taxes</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>1,285</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=1>544</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>(603</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=1>)</FONT> </TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>1,226</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="73%"><FONT face=serif size=1>Income tax expense (benefit)</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=1>7</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=1>173</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=1>(211</FONT> </TD>
<TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><FONT face=serif size=1>)</FONT> </TD>
<TD noWrap align=center width="1%"><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>(g)</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=1>(31</FONT> </TD>
<TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><FONT face=serif size=1>)</FONT> </TD></TR>
<TR>
<TD width="100%" colSpan=15>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="73%" bgColor=#c0c0c0><FONT face=serif size=1><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp; </FONT><B>Net income</B></FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>1,278</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=1>371</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>(392</FONT> </TD>
<TD style="BORDER-BOTTOM: #c0c0c0 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=1>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>1,257</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR>
<TD width="100%" colSpan=15>&nbsp;&nbsp;&nbsp;&nbsp; &nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="73%" bgColor=#c0c0c0><B><FONT face=serif size=1>Income Per Share:</FONT></B>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="73%"><FONT face=serif size=1>Basic earnings per share</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="4%"><FONT face=serif size=1>$0.25</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="5%"><FONT face=serif size=1>$3.09</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="4%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="1%">&nbsp;</TD>
<TD noWrap align=right width="4%"><FONT face=serif size=1>$0.25</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="73%" bgColor=#c0c0c0><FONT face=serif size=1>Weighted average shares outstanding</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>5,050</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=1>120</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>5,050</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR>
<TD width="100%" colSpan=15>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="73%" bgColor=#c0c0c0><FONT face=serif size=1>Diluted earnings per share</FONT>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>$0.25</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=1>$3.09</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>$0.25</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="73%"><FONT face=serif size=1>Weighted average shares outstanding</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%"><FONT face=serif size=1>5,104</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="5%"><FONT face=serif size=1>120</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="4%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%"><FONT face=serif size=1>5,104</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
</TABLE>

<BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(1)</FONT></TD>
<TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD vAlign=top width="100%"><FONT face=serif size=1>Represents the unaudited historical consolidated statements of operations of Amtech Systems, Inc. for the nine months ended June 30, 2007 derived form the unaudited consolidated financial statements of Amtech included in the Quarterly Report on Form 10-Q.</FONT></TD></TR>
<TR>
<TD vAlign=top width="100%" colSpan=3>&nbsp;</TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(2)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD vAlign=top width="100%"><FONT face=serif size=1>Represents the unaudited historical statement of operations of R2D Ingenierie SAS for the nine months ended June 30, 2007 derived from the financial statements of R2D included elsewhere in this Form 8-K/A.</FONT></TD></TR>
</TABLE>


<P align=justify><FONT face=serif size=1>The accompanying notes are an integral part of these condensed consolidated financial statements.</FONT></P>
<P align=center><FONT face=serif size=2>4</FONT></P>

<HR align=center width="100%" noShade SIZE=2>


<PAGE>

<P align=center><B><FONT face=serif size=2>AMTECH SYSTEMS, INC. AND SUBSIDIARIES<BR></FONT></B><B><FONT face=serif size=2>Unaudited Pro Forma Condensed Consolidated Statements of Operations<BR>Year Ended September 30, 2006<BR></FONT></B><FONT face=serif size=1>(in thousands except for per share data)</FONT></P>

<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
<TD noWrap align=left width="71%">&nbsp; </TD>
<TD noWrap align=center width="7%" colSpan=3><B><FONT face=serif size=1>Amtech</FONT></B> </TD>
<TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD noWrap align=center width="7%" colSpan=3><B><FONT face=serif size=1>R2D</FONT></B> </TD>
<TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD noWrap align=center width="1%">&nbsp; </TD>
<TD noWrap align=center width="4%"></TD>
<TD noWrap align=center width="1%">&nbsp; </TD>
<TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD noWrap align=center width="1%"></TD>
<TD noWrap align=center width="4%"></TD>
<TD noWrap align=center width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%">&nbsp; </TD>
<TD noWrap align=center width="7%" colSpan=3><B><FONT face=serif size=1>Systems, Inc.</FONT></B> </TD>
<TD noWrap align=center width="1%"></TD>
<TD noWrap align=center width="7%" colSpan=3><B><FONT face=serif size=1>Ingenierie SAS(2)</FONT></B> </TD>
<TD noWrap align=center width="1%"></TD>
<TD noWrap align=center width="1%">&nbsp; </TD>
<TD noWrap align=center width="4%"></TD>
<TD noWrap align=center width="1%">&nbsp; </TD>
<TD noWrap align=center width="1%">&nbsp; </TD>
<TD noWrap align=center width="1%"></TD>
<TD noWrap align=center width="4%"></TD>
<TD noWrap align=center width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%">&nbsp; </TD>
<TD noWrap align=center width="7%" colSpan=3><B><FONT face=serif size=1>Year Ended</FONT></B> </TD>
<TD noWrap align=center width="1%"></TD>
<TD noWrap align=center width="7%" colSpan=3><B><FONT face=serif size=1>Year Ended</FONT></B> </TD>
<TD noWrap align=center width="1%"></TD>
<TD noWrap align=center width="1%">&nbsp; </TD>
<TD noWrap align=center width="4%"></TD>
<TD noWrap align=center width="1%">&nbsp; </TD>
<TD noWrap align=center width="1%">&nbsp; </TD>
<TD noWrap align=center width="1%"></TD>
<TD noWrap align=center width="4%"></TD>
<TD noWrap align=center width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%">&nbsp; </TD>
<TD noWrap align=center width="7%" colSpan=3><B><FONT face=serif size=1>September 30,</FONT></B> </TD>
<TD noWrap align=center width="1%"></TD>
<TD noWrap align=center width="7%" colSpan=3><B><FONT face=serif size=1>December 31,</FONT></B> </TD>
<TD noWrap align=center width="1%"></TD>
<TD noWrap align=center width="6%" colSpan=3><B><FONT face=serif size=1>Pro Forma</FONT></B> </TD>
<TD noWrap align=center width="1%">&nbsp; </TD>
<TD noWrap align=center width="6%" colSpan=3><B><FONT face=serif size=1>Pro Forma</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=3><FONT face=serif size=1><B>2006<SUP>(1)</SUP></B></FONT> </TD>
<TD noWrap align=center width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="7%" colSpan=3><FONT face=serif size=1><B>2006<SUP>(2)</SUP></B></FONT> </TD>
<TD noWrap align=center width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=3><B><FONT face=serif size=1>Adjustments</FONT></B> </TD>
<TD noWrap align=center width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="6%" colSpan=3><B><FONT face=serif size=1>Combined</FONT></B> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0><FONT face=serif size=1>Revenues, net of returns and allowances</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT>&nbsp; </TD>
<TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=1>40,445</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT>&nbsp; </TD>
<TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=1>4,883</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT>&nbsp; </TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>(195</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=1>)</FONT> </TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>(d)</FONT> </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT> </TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>45,133</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%"><FONT face=serif size=1>Cost of sales</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=1>29,870</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=1>3,312</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=1>(195</FONT> </TD>
<TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><FONT face=serif size=1>)</FONT> </TD>
<TD noWrap align=center width="1%"><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>(d)</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=1>32,987</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0><FONT face=serif size=1><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Gross profit</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=1>10,575</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=1>1,571</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>12,146</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD></TR>
<TR>
<TD width="100%" colSpan=16>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0><FONT face=serif size=1>Selling, general and administrative</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=1>8,313</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=1>774</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>454</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>(e)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>9,541</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%"><FONT face=serif size=1>Restructuring Charge</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="5%"><FONT face=serif size=1>190</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp;</TD>
<TD noWrap align=right width="5%"><FONT face=serif size=1>-</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="4%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=center width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%"><FONT face=serif size=1>190</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0><FONT face=serif size=1>Research and development</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=1>437</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=1>-</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>437</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=1>Operating income</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="5%"><FONT face=serif size=1>1,635</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="5%"><FONT face=serif size=1>797</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="4%"><FONT face=serif size=1>(454</FONT> </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=1>)</FONT> </TD>
<TD noWrap align=center width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%"><FONT face=serif size=1>1,978</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR>
<TD width="100%" colSpan=16>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0><FONT face=serif size=1>Interest and other income (expense), net</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=1>(37</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=1>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=1>(166</FONT> </TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=1>)</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>(351</FONT> </TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=1>)</FONT> </TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>(f)</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>(554</FONT> </TD>
<TD style="BORDER-BOTTOM: #c0c0c0 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=1>)</FONT> </TD></TR>
<TR>
<TD width="100%" colSpan=16>&nbsp;</TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0><FONT face=serif size=1>Income before income taxes</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=1>1,598</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=1>631</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>(804</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=1>)</FONT> </TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>1,425</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%"><FONT face=serif size=1>Income tax expense (benefit)</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=1>280</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="5%"><FONT face=serif size=1>179</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=1>(282</FONT> </TD>
<TD style="BORDER-BOTTOM: #ffffff 1pt solid" noWrap align=left width="1%"><FONT face=serif size=1>)</FONT> </TD>
<TD noWrap align=center width="1%"><FONT face=serif size=1><FONT size=3>&nbsp;</FONT>(g)</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%">&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%"><FONT face=serif size=1>177</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR>
<TD width="100%" colSpan=16>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0><FONT face=serif size=1><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><B>Net income</B></FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=1>1,318</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=1>452</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>(523</FONT> </TD>
<TD style="BORDER-BOTTOM: #c0c0c0 2pt solid" noWrap align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=1>)</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="1%" bgColor=#c0c0c0><FONT face=serif size=1>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>1,247</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR>
<TD width="100%" colSpan=16>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0><B><FONT face=serif size=1>Income Per Share:</FONT></B>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="5%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%"><FONT face=serif size=1>Basic earnings per share</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="5%"><FONT face=serif size=1>$0.40</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="5%"><FONT face=serif size=1>$3.77</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="4%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="1%"><FONT face=serif size=1></FONT></TD>
<TD noWrap align=right width="4%"><FONT face=serif size=1>$0.37</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0><FONT face=serif size=1>Weighted average shares outstanding</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=1>3,126</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=1>120</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>3,126</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR>
<TD width="100%" colSpan=16>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%" bgColor=#c0c0c0><FONT face=serif size=1>Diluted earnings per share</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=1>$0.38</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="5%" bgColor=#c0c0c0><FONT face=serif size=1>$3.77</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="4%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=right width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=1>$0.36</FONT> </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="71%"><FONT face=serif size=1>Weighted average shares outstanding</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="5%"><FONT face=serif size=1>3,484</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=right width="5%"><FONT face=serif size=1>120</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="4%"></TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%">&nbsp; </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=right width="4%"><FONT face=serif size=1>3,484</FONT> </TD>
<TD noWrap align=left width="1%">&nbsp; </TD></TR>
</TABLE>

<BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(1)</FONT></TD>
<TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD vAlign=top width="100%"><FONT face=serif size=1>Represents the historical consolidated statements of operations of Amtech Systems, Inc. for the year ended September 30, 2006 derived form the audited consolidated financial statements of Amtech included in the Annual Report on Form 10-K.</FONT></TD></TR>
<TR>
<TD vAlign=top width="100%" colSpan=3>&nbsp;</TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=1>(2)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD vAlign=top width="100%"><FONT face=serif size=1>Represents the historical statement of operations of R2D Ingenierie SAS for the year ended December 31, 2006 derived from the audited financial statements of R2D included elsewhere in this Form 8-K/A.</FONT></TD></TR>
</TABLE>

<P align=center><FONT face=serif size=2>5</FONT></P>
<HR align=center width="100%" noShade SIZE=2>


<PAGE>

<P align=center><B><FONT face=serif size=2>AMTECH SYSTEMS, INC.<BR></FONT></B><B><FONT face=serif size=2>Notes to Unaudited Pro Forma Condensed Combined Financial Statements </FONT></B></P>

<P align=justify><FONT face=serif size=2>The unaudited pro forma financial statements include the following pro forma assumptions and adjustments: </FONT></P>

<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=2>(a)</FONT></TD>
<TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD width="100%"><FONT face=serif size=2>Represents the effect of the Acquisition as if the Acquisition, excluding the resolution of contingent consideration, was completed on June 30, 2007 including the elimination of R2D&#146;s historical equity accounts. The aggregate purchase price is based on the cash consideration paid at closing of $4,225,000 and estimated acquisition costs of $600,000, including legal and due diligence costs. Acquisition costs of $400,000 were incurred as of June 30, 2007; therefore, an additional estimated accrual of $200,000 is included in this adjustment. Cash contingent payments of $1,550,000 to be paid to sellers upon fulfillment of certain requirements have been deposited in an escrow account. The amount of future contingent payments earned will increase goodwill and decrease the escrow amount included in other assets upon resolution of each contingency.</FONT></TD></TR>
<TR>
<TD width="100%" colSpan=3>&nbsp;</TD></TR>
<TR>
<TD noWrap>&nbsp;</TD>
<TD noWrap></TD>
<TD width="100%"><FONT face=serif size=2>The following allocation is based on a preliminary assessment of fair value of the assets acquired and liabilities assumed of R2D. The table below represents a preliminary allocation of the above consideration to R2D&#146;s tangible and intangible assets and liabilities based on the Company&#146;s management&#146;s preliminary estimate of their respective fair value as of the date of the acquisition:</FONT></TD></TR>
<TR>
<TD width="100%" colSpan=3>&nbsp;</TD></TR>
</TABLE>


<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="50%" border=0>
<TR vAlign=bottom>
<TD align=left width="92%">&nbsp; </TD>
<TD noWrap align=right width="8%" colSpan=3><FONT face=serif size=2>(in thousands)</FONT> </TD></TR>
<TR vAlign=bottom>
<TD align=left width="92%" bgColor=#c0c0c0><FONT face=serif size=2>Current assets</FONT>&nbsp; </TD>
<TD align=center width="5%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0><FONT face=serif size=2>$</FONT> </TD>
<TD align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>3,732</FONT> </TD></TR>
<TR vAlign=bottom>
<TD align=left width="92%"><FONT face=serif size=2>Property, plant and equipment</FONT>&nbsp; </TD>
<TD align=left width="5%">&nbsp;</TD>
<TD align=left width="1%">&nbsp;</TD>
<TD align=right width="2%"><FONT face=serif size=2>124</FONT> </TD></TR>
<TR vAlign=bottom>
<TD align=left width="92%" bgColor=#c0c0c0><FONT face=serif size=2>Intangible assets</FONT>&nbsp; </TD>
<TD align=left width="5%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>3,190</FONT> </TD></TR>
<TR vAlign=bottom>
<TD align=left width="92%"><FONT face=serif size=2>Goodwill</FONT>&nbsp; </TD>
<TD align=left width="5%"></TD>
<TD align=left width="1%">&nbsp; </TD>
<TD align=right width="2%"><FONT face=serif size=2>275</FONT> </TD></TR>
<TR vAlign=bottom>
<TD align=left width="92%" bgColor=#c0c0c0><FONT face=serif size=2>Other non-current assets</FONT>&nbsp; </TD>
<TD align=left width="5%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>23</FONT> </TD></TR>
<TR vAlign=bottom>
<TD align=left width="92%"><FONT face=serif size=2>Total assets acquired</FONT>&nbsp; </TD>
<TD align=left width="5%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="2%"><FONT face=serif size=2>7,344</FONT> </TD></TR>
<TR>
<TD width="100%" colSpan=4>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD align=left width="92%" bgColor=#c0c0c0><FONT face=serif size=2>Current liabilities</FONT>&nbsp; </TD>
<TD align=left width="5%" bgColor=#c0c0c0></TD>
<TD align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>2,439</FONT> </TD></TR>
<TR vAlign=bottom>
<TD align=left width="92%"><FONT face=serif size=2>Long term liabilities</FONT>&nbsp; </TD>
<TD align=left width="5%"></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="2%"><FONT face=serif size=2>80</FONT> </TD></TR>
<TR vAlign=bottom>
<TD align=left width="92%" bgColor=#c0c0c0><FONT face=serif size=2>Total liabilities assumed</FONT>&nbsp; </TD>
<TD align=left width="5%" bgColor=#c0c0c0></TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" align=right width="2%" bgColor=#c0c0c0><FONT face=serif size=2>2,519</FONT> </TD></TR>
<TR vAlign=bottom>
<TD align=left width="92%"><FONT face=serif size=2>Net assets acquired</FONT>&nbsp; </TD>
<TD align=center width="5%"></TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" align=left width="1%"><FONT face=serif size=2>$</FONT> </TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" align=right width="2%"><FONT face=serif size=2>4,825</FONT> </TD></TR>
</TABLE>

</DIV><BR>
<P align=justify><FONT face=serif size=2>The amounts in the preceding table are preliminary and subject to the following: </FONT></P>

<UL><LI>
<P align=justify><FONT face=serif size=2>The Company completing its final internal due diligence and assessment of the assets acquired and the liabilities assumed with the purchase of R2D.<BR></FONT></P>
<LI>
<P align=justify><FONT face=serif size=2>The Company obtaining the final valuation report, from an independent third party, on its tangible, intangible and property, plant and equipment assets.</FONT></P></LI></UL>

<P align=justify><FONT face=serif size=2>For purposes of the preliminary allocation, the Company has estimated a fair value adjustment for R2D&#146;s property, plant and equipment based on a review of R2D&#146;s historical costs and management&#146;s intended future use. The fair value of the assets will be depreciated over estimated useful lives of seven years.</FONT></P>

<P align=center><FONT size=2>6</FONT></P>

<HR align=center width="100%" noShade SIZE=2>


<PAGE>

<P align=justify><FONT face=serif size=2>The Company has estimated the fair value of R2D&#146;s identifiable intangible assets as $3,190,000, allocated as follows: </FONT></P>

<P align=justify>
<TABLE cellSpacing=0 cellPadding=0 width="50%" align=center border=0>
<TR vAlign=bottom>
<TD noWrap align=left width="89%">&nbsp; </TD>
<TD noWrap align=left width="5%" colSpan=2><FONT size=1>&nbsp; &nbsp; </FONT></TD>
<TD noWrap align=center width="1%"></TD>
<TD noWrap align=center width="4%"><B><FONT face=serif size=2>Average</FONT></B><FONT size=3> </FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%">&nbsp; </TD>
<TD noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>Estimated</FONT></B><FONT size=3> </FONT></TD>
<TD noWrap align=center width="1%"></TD>
<TD noWrap align=center width="4%"><B><FONT face=serif size=2>Remaining</FONT></B><FONT size=3> </FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="5%" colSpan=2><B><FONT face=serif size=2>Fair Value</FONT></B><FONT size=3> </FONT></TD>
<TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="4%"><B><FONT face=serif size=2>Useful Life</FONT></B><FONT size=3> </FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%">&nbsp; </TD>
<TD noWrap align=center width="5%" colSpan=2><FONT size=1><FONT face=serif size=1><FONT size=2>(in thousands)</FONT><FONT size=3> </FONT></FONT></FONT></TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="4%"><FONT size=1>&nbsp; </FONT></TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>Asset class:</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD>
<TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=left width="4%" bgColor=#c0c0c0>&nbsp; </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%"><FONT face=serif size=2>Marketing-based intangible assets</FONT>&nbsp; </TD>
<TD noWrap align=left width="1%"><FONT face=serif size=2>$</FONT>&nbsp; </TD>
<TD noWrap align=right width="4%"><FONT face=serif size=2>1,442</FONT> </TD>
<TD noWrap align=center width="1%"></TD>
<TD noWrap align=center width="4%"><FONT face=serif size=2>1-10 years</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%" bgColor=#c0c0c0><FONT face=serif size=2>Technology-based intangible assets</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
<TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=right width="4%" bgColor=#c0c0c0><FONT face=serif size=2>1,748</FONT> </TD>
<TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
<TD noWrap align=center width="4%" bgColor=#c0c0c0><FONT face=serif size=2>8-10 years</FONT> </TD></TR>
<TR vAlign=bottom>
<TD noWrap align=left width="89%">&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=left width="1%"><FONT face=serif size=2>$</FONT>&nbsp; </TD>
<TD style="BORDER-BOTTOM: #000000 2pt double" noWrap align=right width="4%"><FONT face=serif size=2>3,190</FONT> </TD>
<TD noWrap align=left width="1%"></TD>
<TD noWrap align=left width="4%">&nbsp; </TD></TR>
</TABLE>

<BR>
<TABLE style="TEXT-ALIGN: justify" cellSpacing=0 cellPadding=0 border=0>
<TR>
<TD vAlign=top noWrap>&nbsp;</TD>
<TD vAlign=top noWrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
<TD vAlign=top width="100%"><FONT face=serif size=2>Marketing-based intangible assets include trademarks, trade names, customer relationships and internet domain names; whereas technology-based intangible assets include developed automation technology, patents, computer software, databases, and non-compete agreements.</FONT></TD></TR>
<TR>
<TD vAlign=top width="100%" colSpan=3>&nbsp;</TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=2>(b)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD vAlign=top width="100%"><FONT face=serif size=2>Represents the elimination of intercompany receivables and payables related to intercompany sales between the Company and R2D as of June 30, 2007.</FONT></TD></TR>
<TR>
<TD vAlign=top width="100%" colSpan=3>&nbsp;</TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=2>(c)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD vAlign=top width="100%"><FONT face=serif size=2>Reflects the payment of the loan payable to the sellers of R2D immediately subsequent to the Acquisition.</FONT></TD></TR>
<TR>
<TD vAlign=top width="100%" colSpan=3>&nbsp;</TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=2>(d)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD vAlign=top width="100%"><FONT face=serif size=2>Represents the elimination of intercompany sales between the Company and R2D for the respective period.</FONT></TD></TR>
<TR>
<TD vAlign=top width="100%" colSpan=3>&nbsp;</TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=2>(e)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD vAlign=top width="100%"><FONT face=serif size=2>Represents the amortization of assets acquired in the Acquisition. The amortization is based upon a preliminary valuation and allocation to the assets and liabilities acquired including accounts receivable, inventory, property and equipment, liabilities, goodwill and other tangible and intangible assets. The estimated useful lives of these assets range from one to 10 years. The final purchase price allocation and related amortization expense may result in a different purchase price allocation and amortization expense than that presented in these pro forma condensed combined financial statements.</FONT></TD></TR>
<TR>
<TD vAlign=top width="100%" colSpan=3>&nbsp;</TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=2>(f)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD vAlign=top width="100%"><FONT face=serif size=2>Represents the effect on net interest associated with the $6,375,000 of cash used and acquisition costs incurred to purchase R2D.</FONT></TD></TR>
<TR>
<TD vAlign=top width="100%" colSpan=3>&nbsp;</TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=2>(g)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD vAlign=top width="100%"><FONT face=serif size=2>Represents the effect on income taxes as a result of the combined pro forma adjustments at an estimated effective rate of 35 percent for the periods presented.</FONT></TD></TR>
<TR>
<TD vAlign=top width="100%" colSpan=3>&nbsp;</TD></TR>
<TR>
<TD vAlign=top noWrap><FONT face=serif size=2>(h)</FONT></TD>
<TD vAlign=top noWrap></TD>
<TD vAlign=top width="100%"><FONT face=serif size=2>Although the respective fiscal year ends of the Company and R2D are different, such periods end within 93 days of each other and, therefore, are combined for presentation as permitted <FONT face=serif size=2>under Rule 11.02(c) of Regulation S-X. Accordingly, included in the Unaudited Pro Forma Condensed Consolidated Statements of Operations for both the year ended September 30, 2006 and the nine months ended June 30, 2007 are the results of operations for R2D for the quarter ending December 31, 2006 representing revenue of $1,532,000 and net income of $200,000.</FONT></FONT></TD></TR>
</TABLE>

<P align=center><FONT size=2>7</FONT></P>
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